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Shuttle Ward PDF
Shuttle Ward PDF
8/30/2019
Term Project
MGT-489
Term Project on
Name:-Shuttle Bangladesh
Submitted to:
Lecturer
Submitted by
Group Name:-Group2
Section: 21
2
Letter of Transmittal
Department of Management,
Dear Sir,
It is a great pleasure for us to be able to hand over our term paper on Shuttle. The result of this
report is based on our analysis and related articles and literatures, and knowledge which we have
We tried to give our level best of effort for preparing this report. The information of the report is
mainly based on the primary data which we gather through visiting Shuttle and secondary data
like various literature review and other data from different web links. All of us gave our hundred
We, fervently hope that you will find this report worth reading. Finally, we hope you will
appreciate our hard work and excuse the minor errors. Thank you for your cooperation.
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Acknowledgment
First of all, we would like to thank our honorable and loving lecturer, Mr. Syed Javed Iqbal for
giving us the opportunity to do our term paper under his supervision, and for his unending
support of providing us with the necessary help for the completion of the paper.
We should like to thank the management of Shuttle and CEOReyasat Chowdhury and Shah
Sufian, for sparing his valuable time and providing us with all the necessary information required
in our completion of our report. We would like to thank you for arranging all the meetings so
that we could do our term paper. And we would also like to express our utmost gratitude to all
the respondents who gave their treasured time in answering our questions which was an essential
part in completing this paper. For their contribution we were successful to get the information
And finally, we give credit to online resources for providing us with all the secondary
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Table of Contents
Topic Page
SWOT ………………………………………….14-15
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Executive Summary
This report conducted on the “Shuttle Bangladesh” that is the first mover transportation
system for the woman in Dhaka city. This is actually growing position in the transportation
industry and it attracts their targeted customers. Initially it targets only three university (NSU,
IUB, AIUB) but now it runs seven routes successfully. They have sophisticated app and twenty
five vehicles and also reserve some vehicle for sever situation. We analysis their current business
model and try to find how to reach their current position. Based on our theoretical knowledge we
suggest the Shuttle how to maintain and grow their current business.
This report contains three parts where the first parts describe their current situation in the
industry and analyze the internal as well as external factors how to affect or aid them. Second
part consists of our recommendations, strategies for the next five years. The last part
From our finding we notice that they should improve their business and functional level
strategies in specific areas. The most important suggestion is they should increase their road
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PART A: Research & Analysis
Shuttle Bangladesh
Transportation is one of the biggest issues the country faces, especially here in the capital
where traffic has no mercy. For women it is harder finding the right vehicle given public
transport is not always safe.The company was founded by Reyasat Chowdhury and Shah Sufian
as a safe and affordable transport mode for women. The service started off with a few routes, but
now has increased its routes and destinations due to demand. This is an app based service, but
users can also call on their hotline number to book a ride. Shuttle currently serves more than
7000 women between the age of 18 to 45, which mostly includes the college or university going
students and women who work. The sole intention behind the inception of Shuttle was to
redefine and modernize the commuting method for our women, by offering an affordable, safe
and comfortable alternative to public and private transports. At present, they serve their clients
introduce new routes every month.The transport will pick them up from any of the pickup points
provided and drop them off to their booked destination seemed safe. They launched their test
phase on july 2018 in selected private universities like NSU, IUB, AIUB etc. After a positive
response from the initial users, they are now expanding rapidly. ( (Mourin, 2018)
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Internal Analysis
Focusing Sector
They are mainly focusing on the students and the working class women. Currently, they
are working on seven routes and providing around 1,000 rides per day they have twenty five(25)
Hiace micro buses. They are trying to introduce new routes every month. Their goal is to ensure
Shutttle is focusing on some particular area where students and working class womens are
Sophisticated App
Intellectual Paper
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External Environment
1.Industry Analysis:-A few years ago, the transportation system in Dhaka city was a
traditional way. But recently this system has changed dramatically. People find more flexible
vehicle for moving from one place to another place. And it is increasing day by day because of
traffic jam, safety issue, time saving, and comfortable. Now the ratio of man and women in the
office is almost.4:1. The woman empowerment is increased day by day and woman is engaged
activity out of the door. But in our city there is no special transportation system for them. As a
result most of the time, they face social burden, sexual harassment, incapable of seat problems in
their journey. There are some flexible transportation for all that are expensive like “Uber, Pathao,
Obhai’ Shohoz” etc. Now a day’s woman participation has become compulsory factor in order to
improve the economy as well as support their family. For this reason government has taken many
steps for empowering the woman by facilitating from the different site. According to Bangladesh
Bureau of Statistic, the woman participation will be the same as like man by 2030. But the
transportation system has not developed for them still now. This is where organization like
“Shuttle” has a crucial role in the transportation sector for the woman.
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Competitive Forces Analysis (Porter’s Five Forces)
new entrants.
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Supplier has little bargaining
There is no alternative
issue.
alternative option.
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Industry Life Cycle Analysis
Business going to growth stage:-Currently Shuttle is in a transition between goings from the
embryonic stage to the growth stage here in Bangladesh. This enterprise started through an idea
innovation that they serve their customers by taking their risk and responsibility. Since Shuttle
has already served seven routes as well as they are promoting their brands all over the
Bangladesh and especially in Dhaka city level the demand is increasing day by day dramatically.
And the customers are informed easily from advertisement, campaign, and social media. Hence
based on those characteristics we can address easily that the Shuttle stands exactly between
Macro-environment (PESTEL)
Political Factors:-If we analysis the seven to eight years political consequences we will
find a better environment from any others government’s business environment. And the present
government ensures the new entrepreneurs that they will help them from any side if the business
idea will be conducive to the people. Based on the development of the government it can be
predict that this government will sustain more years in our country. Hence we can accept better
political environment in the future as well as this environment also conducive to the Shuttle
business.
Economic Factors:-If we analyze the present and the last ten years economic situation
we find that people are more flexible to get a better service or products. And the last ten years
Bangladesh GDP has increased dramatically. The currency appreciation happened, income per
capital enhanced, increasing spending power. Economic factors also help to boast up the
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enterprise because the probability is very low that economics face a trouble situation in the
future.
Social Factors:-includes the population growth rate, population health, education and
social mobility etc. Dhaka city is the most populated densely city all over the world. And it is
increasing day by day. This is a good side for the Shuttle and the last few years woman faced
severe sexual harassment, burden from the public, private as well as from the civil site. So such
kind of environment is a very conducive to the Shuttle to lead their business potentiality.
research and development activity etc. are the technological factors.Bangladesh is still not
advanced in technology. As local companies are not so advanced technically, there is chance of
Shuttle to stay in a good position because of its advanced technical features that is totally
Legal Factors:-The legal factors of our transportation system are more complex and easy
because the authority doesn’t take their responsibility as well as monitor this sector thoroughly.
So it’s an advantage for Shuttle to take road permit quickly and this advantage will bring because
of first mover.
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SWOT Analysis
SWOT analysis, we do for identify the internal strengths and weaknesses, as well as the external
threats and opportunities in an organization/industry. Identifying these key issues early on in Shuttle
business it will be a great advantage as they can build on their strengths and opportunities and come up
with ways to overcome their weaknesses and threats. They key issues are discussed below:
Strength
2. Pick and drop service only for woman. As woman transport provider they don’t
Weakness
5. They do not have own personal car or micro bus. They hire all.
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Opportunity
3. Women are more concern about their safety because of changing the societal values.
6. “Times for money” that’s why everyone wants to move one place to another place
Threat
2. Competitors can be high when woman wants to journey privately. Example Uber,
Pathao etc.
7. Feeling inflexible when trip manager helps woman or criticize other competitor if any
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Company’s Business
Who is being satisfied? (Customer Group) All the female who are travelling to our
What is being satisfied? (Customer Need) The basic need of safety, relaxation, less
the journey.
How the customer needs being satisfied? Through 25 vehicle of the Hiace super gl in
(Distinctive competency) total 450 seats and five vehicles are reserved
accidental case.
Distinctive Competencies:-
“Shuttle” has the sophisticated app where customer accomplishes their pre-book
schedule as well as provides a trip manager inside vehicle in order to ensure safety for their
customers. And also customer uses their debit card, credit card, mobile banking, bikash any
account for their payment. They are trying to gain the ISO9001 that is standing for Quality
Management System.
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Financial Performance Analysis:-
Liquidity Ratio:-
Current Ratio
3.5
3 2.97
2.5 2.63
2.45
2
1.5
1
0.5
0
1st Quarter 2nd Quarter 3rd Quarter
Series2 2.45 2.63 2.97
Series1
The current ratio represents the current asset in terms of current liquidity that
indicates the company is capable to pay their current debt as soon as possible. The standard
current ratio is 2:1. But here we see that the Shuttle’s current ratio is increasing quarterly because
they gain more cash everyday but they can’t invest on others roads because of road permit. It has
advantages that the company has taken an opportunity to implement new corporate and business
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Profitability Ratio:-
Profit Margin
35%
30% 30%
27%
25%
20% 21%
15%
10%
5%
0%
1 2 3
Profit Margin 21% 27% 30%
Profitability ratio is an important ratio for any company because it indicates the
sales turns into profit in terms of percentage unit. Here the Shuttle’s profit margin has enhanced
dramatically. Actually it’s happened overnight because of going to growth stage as well as
accepting the service customer highly. In addition it’s a great opportunity for the Shuttle to
exploit the future corporate and business level strategies in order to lead their business
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Competitive Advantage:-
Shuttle is the first mover transportation system for the woman in the Dhaka city. It has
launched almost one year but it has completed 158620 rides successfully only using the specific
seven routes.
Goodwill & Reputation:-The lifetime of the Shuttle is one year. But it has attracted a lot
of customer by maintaining their strict rules, regulation and working process. It has already
completed 158620 rides successfully with gaining the fully satisfied client.
They use the fully air-conditioned hiace, trip manager inside in order to ensure safety or any
issue of their customer, pre-book option. There is no option to cancel the ride from the Shuttle
driver’s side.
get the opportunity to make their friends and discuss a constructive matter as well as they can
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Current Business Model
Shuttle Bangladesh
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Part: B Strategic Plan for the Next Five Years
Fulfilling the increasing Demand:-The first mover the estimations of the demand can
not the same real demand. It introduces first woman quality full transportation system in the
Dhaka city where they ensure safety, comfortable journey for their customer. As result the
demand is increasing dramatically that has already crossed their estimation. That’s why they
Improve the Feature:-As they ensure the quality full service, they can add new feature
in the vehicle like router where customer can enjoy internet service freely. They can invest it
from their side or they can take help from the telecommunication company like (Robi) because
Robi tries to increase their market share through philanthropic activity. They also invest on app
so that customer can pay on advance in order to reduce their payment hassle.
Increasing the safety level:-Now the political condition is stable but in the future will be
changed if analyzing the past history. That’s why they invest on their car by introducing
emergency door where the customer can move safely any accidental environment.
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Recommendations to overcome weaknesses:-
Creating Brand Loyalty:-As a first mover the brand image as well as the market share
is less compare to other competitors. On the other hand it’s a great opportunity to utilize their
first mover advantage to create brand loyalty by providing good feedback, increasing customer
responsiveness to the social as well as safety issue and after customer service by emphasizing
Employing the own Drivers& Vehicle:-Shuttle has no own driver to drive their vehicle.
It’s a big weakness for them because they take the risk and responsibility of their customer in
order to increase the safety level. That’s why they should invest on own car as well as they
should recruit the driver on a periodical basis or as a employee where they will get wages
monthly basis.
Exploit New Trend:-As the people especially woman face many hassle in the
public as well as private transportation. And it is increasing at an alarming rate. And man &
woman also accept the new trend app transportation system. But except the Shuttle all
transportation system can’t take responsibility as well as the riding totally depends on the driver
approval. So that woman doesn’t find them proper time and in appropriate place. Hence a new
trend starts in the transportation sector. In addition people are looking for a flexible vehicle that
provides more safety. So in order to utilize this opportunity the Shuttle should take new road
permission in an advance so that after estimating the new demand on the new road they can
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The Intervention of the Government:-Our government commit that the ratio of the man
and woman in the office will be 1:1. So they offer special privileges for the woman in the
working place. But the government can’t improve the public transportation for the woman. But
the transportation (Shuttle) changes the whole scenario by the introducing the idea innovation.
This idea was fully supported by the government. So there is an opportunity that the government
will help them according to their needs or reducing their tax rate where they fulfill their customer
Charge a Premium Price:-As the Shuttle has the initial stage, so the profit margin is
moderate. For enhancing their profit margin they develop their functional level or they increase
their competencies for charging premium price. They create bypass road if there is no pick-up in
the next station as well as they set up water filter that is use for the emergency case for their
customer.
Utilization the Technology & Recruitment the Woman as Trip Manager:-In order to
avoid the scandal issue Shuttle should use CC camera where they can monitor their driver and
trip manager behavior. They also recruit the woman as a trip manager where all issue handle by
Reducing the Competition level:-There is no direct competitor but there are many
indirect competitors like Uber, Pathao, Shohoz, Obhai. That’s why Shuttle should identify the
key areas of their business potential. They have to serve or increase their market share by
meeting customer requirement by providing the good feedback that is attracted by the new
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Financial Analysis:-All recommendations are totally depends on their financial
condition. As this industry is going to embryonic to growth stage, the co-founder Jawwad
Jahangir said that the whole financial scenario is totally confidential information at right now. I
have no law or right that I share with you. But he gives two ratios that we described on the
above. Based on these two ratios we can say easily that they have enough cash or current asset to
pay their current debt or invest in their business to exploit new opportunity. On the other hand
their profit margin is also increased that indicates their operating efficiency level, diversified
their fixed cost, attracting new customer. So these are the pros for the Shuttle to make new
corporate as well as business level strategies in order to exploit & lead their business opportunity
in the future. Hence the financial condition is totally conducive to our all recommendations.
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Corporate Level Strategies:-
To meet the increasing demand as well as the requirement of the customer needs the
corporate level strategy should be merged with the car renter supplier as well as invest the own
vehicle and staffs. They are using seven routes and twenty five vehicles that are totally running
by the partnership process with the car supplier. So as our recommendation part we recommend
that they should invest on own car & staffs where they include the woman trip manager and
fixed basis driver as well as they modify their feature so that they can premium charge. For this
reason The Shuttle should invest on horizontal as well as vertical integration. They should invest
new own vehicle on the existing road that designs recommend in the recommendation part with
the all special feature that is increase their asset value. Utilizing this asset value they can also
finance by debt process from the bank that is tax shield. As the demand is increasing, they should
merge with new car supplier or the new contract with the existing car supplier in order to provide
the new road service. As a result they don’t need to invest a lot of money for the new customers
as well as the new car vehicle will give the opportunity to premium charge that will increase the
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Business Level Strategies:-
Service will be supplied to customers through unique features as well as the unique
implementation process, using leverage killer application & tools, making ordering ease and
ensuring the sustainability. To run this feature the Shuttle has to follow the broad
differentiation strategy which recognizes the differentiation the company’s services from the
competitors with attributes that will satisfy broad spectrum of the market by allowing a premium
charge. But the price range will not cross from their competitors because their competitors
• Providing the quality full service is less expensive compare to other app based
transportation system.
tools.
• Ensuring some medicine during the journey for vomiting, gastro logy, cough, cold
etc. Using the filter water in the emergency case that will increase the customer
utility level.
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Functional Level Strategies:-For ensuring the business level strategy the activity of the
The Production Process of the Service:-As the Shuttle invest on the own vehicles, they
should focus more quality full parts as well as accessories that ensure the long useful time with
better performance.
towards to the customers as well as advertising the negative consequences social harassment that
a woman faces in the journey. Initially they advertise on university or corporate level campany,
social media. It’s high time to promote their services on press media; introducing new tag line
before going to the growth industry life cycle otherwise new competitors can hurt their potential
market.
Human Resources:-For enhancing the comfortable and the flexible level of the
customers the Human resource should train their trip manager as well as driver how to
communicate with their customers, how to response any issue. Also portrait the scenario base
analysis how to treat any accidental or medical events. When Shuttle recruits a woman for a trip
manager, the degree of comfortable and the flexibility level will be boasting up dramatically.
Communication:-After the every successfully trip, the manager notifies the operating
manager as well as the manager tracks the vehicle all the time by google map so that he can
response quickly.
Customer special service:-Ensuring the primary medical solution during their journey
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Finance and Planning:-There are a lot of investments on the horizontal as well as
vertical integration in order to aid the functional level strategy as well as the business level
strategy. That’s why the finance department should invest on higher yield on road by managing
the fund with a lower required rate. They can share their profit with investment bank which will
reduce the funding cost and the tax that will increase the profitability.
Technological Strategies
Update the App:-This business is totally depends on the app that can be leaded the
business upward or downward direction. That’s why update the app is necessary activity for this
organization. They use Singaporean Software Company in order to update their technological
sectors. It’s a very good strategies because any one (Bangladeshi) can’t understand their app
deeply as well as it will create barrier to intimate this app. But they add new electronic payment
Include Easier Order:-When they develop their apps, firstly they have to concentrate
how a customer orders easily. In the service sector the system of ordering process contribute to
Increase the security level:-As they introduce the electronic payment system, it’s a big
challenge for them to secure customer’s confidential information. For this reason they have to
increase their security level in the app so that no one can hurt the app or steal customer
asymmetric information.
the business perspective and the customers are always right. For this reason they should consult
to their customers so that new version can’t hurt or increase complexity level of their customers.
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PART C: Implementing the Strategic Plan
Actually Shuttle was formed by the three entrepreneurs who had completed their
graduation from North South University. Those are Reyasat Chowdhury, Jawwad Jahangir
Shan Sufian Mahmud Chowdhury. At present the Shuttle’s organizational structure is given
in the below:-
Reyasat
Stage:01 Chowdhury
Co-founder & Ceo
Shan Sufian
Jawwad Jahangir
Stage:02 Co-founder & COO
MahmChowdhury
Co-fpunder & CTO
Shakawath Alom
Parvin Ahmed Anwar Hossain
Stage:03 Accounting &
Marketing Operation
Information
Manager Manager
Manager
The current management style of the shuttle is independent and they are highly
committed to give their best efforts in order to better result. Currently the organization
structure is followed by:-
• Code of Conduct
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We recommend adding HR department for the next five years in order to train their
employees as well as fix the salary, incentive range. Otherwise we don’t alter any significance
for the next five years. And we also recommend following their rules and policies in order to
reduce the bureaucratic & measurement problem so that they can easily understand future
circumstances.
Strategic Control System:-The strategic control system of the Shuttle is more well
defined where they follow the output control system and the behavioral control system. Goal is
established according to their resources and capabilities that are compared with their actual
performance and provide recommendation if it is need. We recommend only that they should
include the reward system for the department or employees who will fulfill their standard target.
successes of the business depends on the resource, capabilities and its people how to morally
integrate their practices. They highly value their ethical factors in the both business & personal
case when they engage any business activities. That’s why we have no significant
recommendation for their culture. The process of integration is given in the below:-
• Manager defines the employee behaviors how to achieve their target by following
stakeholders.
• In the decision making process they always justify threes ethical question before
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Global Strategies for Shuttle:-when we commend for going global, firstly we have to
think what types of business it is? Shuttle is an application based transportation system but it
takes responsibility as well as risk for their customer but other application based company only
they act as a bridge between buyer and seller and they are not liable if any occurrence happens
between buyer and seller. For this reason the Shuttle can’t run their business globally like Uber,
Pathao etc. These types of business totally depend on the nation’s legal, security, political,
economic, gender equality, moral of the society etc. And initially requiring high capital to enter
in the new market as well as facing a lot of nation’s barriers. For this reason we recommend
Shuttle following the Joint Venture global strategy where they will get the political, legal and
the cultural support from their partners. Shuttle can also diversify their fixed cost & risk with
their partners. As the main distinctive advantage of the shuttle is that it takes risk and
responsibility of their customers, so they go to global market based on following the joint
venture strategy, they can diversify their liable with their foreign partners.
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Ethical Value Proposition:-In order to enhance ethical value proposition Shuttle
takes account into all the value activities. But they can’t provide same level of
satisfaction of their all stakeholder. Since the ultimate success of the business depends on
the stakeholder reaction, we provide a stakeholder analysis that help to identify their
potential stakeholder
We divide into four parts the stakeholder based on the power and interest two by two matrix
which describe in the below.
Based on this matrix they can make their ethical framework that leads to a superior
performance in their business and meet their potential stakeholder demands.
References
Correspondent, S. (2019). Shuttle brings safe, comfortable transportation for city women. Dhaka:
NEWAGE.
Mourin, S. (2018, November 19). A transportation solution for women in Dhaka. E-Paper, p. 1.
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Appendix
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