Strategic management

Term project on RAK ceramics

 MGT-489
Strategic Management
Sec: 3
Term Project on RAK CERAMICS
Submitted To:
Dr. Md. Shahedul Alam
Assistant Professor,
Department of Management,
Submitted By:
Name ID
Muntasir Mohammad Ibrahim 1631080030
Umme Habiba Prottasa 1430130030
Asma Sadia 1330440030
Shazida Islam Disha 1620547030
Maliha Binta Kabir 1611330030
Nusrat Rejwana 1520067030

Date of Submission: 26th April, 2020

1
 Letter of Transmittal

19th April, 2019

Dr. Md. Shahedul Alam Assistant Professor,

Department of Management

School of Business and Economics,

North South University,

Bashundhara, Dhaka.

Dear Sir,

We are happy to submit our group report in compliance with the course requirement and your
instructions. The topic of the report is „Term Project on RAK CERAMICS‟. We would like you
to know that working on this project has given us experience and knowledge about the topics
related to the report, especially about management strategies used by different levels of business.

We hope you find this report satisfactory.

Sincerely yours

Umme Habiba Prottasa

Asma Sadia

Shazida Islam Disha

Maliha Binta Kabir

Nusrat Rejwana

Muntasir Mohammad Ibrahim

2
 Acknowledgement

At first we would love to start acknowledging our appreciation towards the

Almighty. We want to thank our honorable course Instructor, Dr. Md. Shahedul
Alam for his patient guidance and immense support. So we want to take this
opportunity to express our deep gratitude to him. Our project, Term Project on
RAK CERAMICS would not have taken the present form in the absence of the
invaluable guidance, inspiration and cooperation from him.

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Executive Summary
In order to submit our term project we have selected RAK Ceramics, one of the leading ceramic
and sanitary ware company around the globe. The company started doing business in Bangladesh
in 1998 as a private limited company. It became public in 2000 and is listed in the stock
exchanges of Bangladesh. The report provides a detailed description about the company, starting
with its history and development and lastly providing recommendations in order to further their
business expansion and profitability for the next five years.

The report is divided into three major parts. Part A mainly provides the research and analysis of
the current situation of the company. We have researched about the company‟s internal and
external analysis using various measures, such as PESTLE and SWOT. In this part we have also
given a summary analysis of the company‟s financial health, using ratios and their
interpretations. By identifying their valuable competitive advantages, we have provided an
analysis of their current business model. In Part B, we have mainly provided recommendations
for their growth for the next five years through our implied judgment. Based on our research we
have provided some functional level, business level, corporate level, as well as technology
strategies that they can implement for their profit growth for the upcoming years. In the last part,
we have discussed about the company‟s governance structure and provided recommendations
about their current company culture, which is a key aspect for a business to sustain in future.
Last but not the least, by providing ethical value proposition statements and references in order
to complete our project, we have ended our project.

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Table of Contents

Contents
Part-A .................................................................................................................................... 6
Research and Analysis .............................................................................................................. 6
History, Development and growth of the company.................................................................. 7
Analysis of Internal Environment ......................................................................................... 8
External Environment ....................................................................................................... 10
SWOT Analysis................................................................................................................. 13
Define the company’s Business: .......................................................................................... 15
Summary of Financial Analysis .......................................................................................... 18
Competitive Advantage of RAK Ceramics ........................................................................... 21
Current business model of RAK Ceramics Bangladesh LTD: ................................................ 23
Bibliography ..................................................................................................................... 24
Part-B .................................................................................................................................. 26
Strategic Plan for 2020-2025 .................................................................................................... 26
Recommendation for Increasing Profitability....................................................................... 27
Corporate Strategic Plan for the next five years: .................................................................. 28
Business level strategy ....................................................................................................... 30
Functional level strategy for 2020-2025 :.............................................................................. 31
Technology Strategy for 2020-2025 ..................................................................................... 33
Revised Business Model : ................................................................................................... 34
Reference: ........................................................................................................................ 35
Part – C ................................................................................................................................ 36
Implementation of Strategic Plan .............................................................................................. 36
Change in the company’s governance to support strategies in Part B ..................................... 36
Recommended Strategic Control System: ............................................................................ 37
Cultural support behind recommended strategies ................................................................ 39
Recommended global strategy’s support behind recommended strategies ............................... 41
Ethical Value Proposition: ................................................................................................. 42
Bibliography ..................................................................................................................... 44
Bonus Part ....................................................................................................................... 45
Current Carbon Footprint of RAK Ceramics........................................................................... 46

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 Part-A

Research and Analysis

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History, Development and growth of the company

RAK Ceramics is one of the leading ceramic and sanitary ware companies around the world. The
company started its journey in Bangladesh in 1998 as a private limited company, later declared
themselves as public in 2000 listing themselves in the stock exchanges of Bangladesh. They are
the manufacturer and distributer of ceramics, tiles and all types of sanitary ware. Their vision is
to be the world's leading ceramics lifestyle solutions provider. Their mission is to foster an
internal culture where they are committed to their vision of becoming the world's leading
ceramics lifestyle solutions.
This report contains a detailed description about the RAK ceramics company, starting with its
history and development and lastly recommendations in order to improve and boost their
business expansion and profitability for the next five years.

Their main headquarter is located in Ras Al Khaimah, UAE. They have Productions centres in
many countries like UAE, India, Singapore, Bangladesh, Australia and Iran, adding up to more
than 1500 workers under the same organization. Their annual is around 1 billion USD and
production holding is around 110 square meters of tiles with 5 million pieces of sanitary ware.

Currently, Samena Capital holds around 30.6% of the company shares. And the company itself
conquered almost one fifth of the market share of the ceramic industry, being the largest ceramic
tiles and sanitary ware manufacturer in the country.

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Analysis of Internal Environment

Internal environment holds the ability to affect the decisions of the organization. The
surroundings inside an organization are the elements of the internal environment. The culture,
work processes, management, organizational structure, resources means machines, equipment,
employees many other encloses the internal environment. Some of the internal environmental
elements of RAK ceramics are given below:

Organizational Culture:

It includes the behavior, beliefs, values, visions of an organization. RAK Ceramics Bangladesh
LTD has a strong culture thus it helps them to meet their goals. The employees and stakeholders
maintain a good business relationship. They have a well-designed “Code of Conducts” which
every employees must need to follow. It helps them to ensure their company‟s standard. If you
visit their office or factory you will be able see that there is a very co-operative ambiance. This is
why all of them get a motivation to work accordingly.

Working Environment:

The working environment of RAK ceramics is well oriented. The co-workers, air quality,
ergonomic seating arrangements, noise level, desks place other things are in a good state. All of
their operational offices follow a same structure too. They also do team works it helps to enhance
the interaction between them.

By this system RAK ceramics has some certain activities which are directed to meet the goals
and expectation. The activities are rules, roles, responsibilities, organogram etc. Their functional
level organization is divided into some small groups and they do those specific tasks. It helps to
grow the productivity. They usually follow the matrix structure. In RAK Ceramics we can see
that they maintain a structured hierarchy. There is a sub-committee of BOD, by this they can
monitor the system perfectly inside the business. According to the authority by BSEC, their audit
committee reports to a set of people the serial is first The BOD ten the authorities and la stly the
investors. Their Board of directors, all types of shareholders like controlling, minority and others
are the position of owners. Their Board of directors (BOD) formed with five members. There are
two independent directors as well by the guideline of Bangladesh Security and Exchange
Commission (BSEC). The shareholders have the authority to involve in decision making.

Human Resource:

The HR activities of RAK ceramics are compensation, benefits, recruitment, training,

monitoring, screening and some others. They are the leading tiles and sanitary brand. So, their
human resources are one of the biggest too. They have a very competent training and monitoring
system. They have a well set process for recruitment.

Management:

RAK Ceramics maintains a structured hierarchy. There are three types of strategic manager those
are corporate level, functional level and business level managers. There are separate business
level managers for the different business unit. Their corporate level managers observes the whole
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organization‟s development. The managerial decisions are taken by top level management. The
other existing management teams help them to meet their goals.

Employees:

Employees are the main assets of any organization. RAK ceramics has more than 2500
employees. They give satisfactory compensation, motivational ways like rewarding, bonus,
enough leaves, acknowledging their achievements many more. So, these motivate the employees
to increase the productivity.

Internal Resources
RAK ceramics has the most advanced ceramics manufacturing plant of Bangladesh. It situated in
Sreepur, Gazipur. Like all other tiles and sanitary ware companies they have also two types of
resources tangible and intangible. The tangible resources are land, vehicles, equipment, furniture,
inventory, machineries etc. Approximately they have 400 crore taka worth tangible assets. Some
kinds of their intangible assets are patents, copyright, goodwill etc. The intangible assets worth
more than 100 crore taka.

Internal Capabilities
RAK Ceramics human resource management is an effective process. Their employees, managers
means the collection of people, process technology etc are of high standard. They have well
trained teams to fulfill their many goals and help them to increase the productivity. Their other
types of capabilities are talent employees, well-structured management some other too. Their
experience can be another capabilities as it helps them to be the market leader. Their updated or
new technologies help them to follow the differentiation strategy. Another capability is they keep
a good relationship with their suppliers and distributor. Their exceptional technologies help them
to reduce cost by a high margin.

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External Environment

Industries in which RAK Competes In:

RAK Ceramics is among the largest ceramics brands among the world. It was established in
1989. Its headquarters is located in Ras Al Khaimah, United Arab Emirates. At present it is
operated in the UAE, Bangladesh, Australia, Singapore, Europe and Iran. It started its journey in
Bangladesh on November 26, 1998. RAK ceramics is one of the successful and largest ceramic
industries in Bangladesh with the most shares. At present it is mostly competing in ceramic
industry. RAK produces ceramic tiles and sanitary wares. Around 80 ceramic industries are there
in the market at present. Some of their competitors are china bangla ceramic industries, akij
ceramics, charu ceramic, greatwall ceramic and paragon ceramics. Among the competitors, Fu-
Wang and china bangla are their main competitors.

Competitive Forces Analysis (Porters Five Forces):

bargaining
power of
buyers

rivalry bargaining
among power of
competitors Porters suppliers
Five Forces

threats of threats of
new substitute
entrants products

Threats of New Entrants:

Both international and domestic firms are attracted by ceramic market because it is highly
profitable. Ceramic industries are growing very fast. So in spite of its high need of capital for
establishing, threats of new entrants is much higher.

Threats of Substitute Products:

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Switching costs for tiles and sanitary wares are high, because it would need a complete
reworking and more man power to change the products. This is why even the lower cost
alternative product doesn‟t attract the consumers. So threats of substitute products are low for
Ceramic industries.

Bargaining Power of Suppliers:

The raw materials that are used for ceramic industry are more or less common. They are not rare
or hard to find. Numbers of suppliers are also high. And there are substitutes also. So the
bargaining power of suppliers is less in ceramic industry.

Bargaining Power of Buyers:

The numbers of buyers are huge for ceramic industry. Even the product is not unique. So the
buyers are constantly looking for lower prices. So the bargaining powers of buyers are moderate.

Rivalry among Competitors:

Ceramic industry is highly competitive. It takes a lot of capital to start the business, so people
starts doing whatever they can to make a profit. The biggest advantage will be there who have
unique designs and cheaper price. Price can affect the buyer immensely, as people buy these
products in bulk. So rivalry among competitors is high.

Industry Life Cycle Analysis:

Currently RAK ceramics are at the mature stage of their industry life cycle, because their ROA
are increasing at a slow rate. Despite of needing high capital to enter into the ceramic industry,
many new companies are entering the market. On the other hand RAK ceramic is at the maturity
stage. So they should focus more on retaining their market share and focusing on building eco
friendly and unique products.

Introduction growth shakeout maturity decline

Fig: Industry Life Cycle

Macro environment with PESTEL model:

Macro environment of RAK ceramics with PESTEL model have been analyzed.
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Political factor:

Political environment includes those groups which influence the organization. Some political
factors are government, laws etc. we know that the political condition of Bangladesh is a bit
stable now. So at present the political factor has no negative influence on RAK ceramics.

Economic factor:

A company‟s growth increases when the country‟s economy goes well. Again consumers
changing income, spending pattern and lifestyle also contributes to the economic factor of RAK
ceramics. Keeping all these factors in mind RAK sets reasonable prices for their product.

Social factor:

Some social factors which influences consumer buying behavior are family, reference group,
cultural institutions and reference groups. Now a day‟s people are going for nuclear family,
again some goes for single family. This has a huge influence on consumers buying pattern. Even
peoples lifestyle and family status influences their buying behavior.

Technological factor:

People‟s lifestyle, trends everything are changing with the advancement of technology. New
substitute products are developing day by day. So we should always walk side by side with new
technology. RAK ceramics always keeps them updated with changing technology.

Environmental factor:

Day by day people are realizing the importance of a healthy environment. They are becoming
more and more concerned about the environment. Eco friendly products are the new trend. „Go
green‟ is the tagline of many business organizations. So RAK ceramics must follow this trend.
Again raw materials which come from nature can show deficiency. So being efficient and
productive should be their goal. RAK ceramics products are environmental friendly and they are
always working for more effective productions.

Legal factor:

Legal environment of Bangladesh is not a threat for RAK industries or any ceramic industries. It
is not too strict or easy. As long as they abide by the rules, everything will go fine. And RAK
ceramics always abide by the legal laws.

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SWOT Analysis

Analyzing the internal and external factors for any businesses is a crucial part for itsstrategy
planning process. SWOT is a strategy to find out a business‟s strengths,weaknesses,
opportunities and threats to evaluate its current situation and plan accordingly.


Strengths:

RAK‟s has resources and capabilities that can be used as a basis for development of
a competitive advantage. Examples of such strengths includes:

 RAK Ceramics has an excellent brand image.

 Largest ceramics manufacturer in Bangladesh.
 Eminent reputation and value among customers.
 Better variety of products compared to the competitors.
 Cost advantages.
 Maintains a high standard technology.
 Uses high grade natural resources.
 Economics of scales.
 Huge production capacity.

Weaknesses:

RAK ceramics has so many strengths but it also has a few weaknesses that‟s needs to checked
and maintained properly:


 Lack of recyclable materials.

 No direct connection to the customers (only through distributors).
 Poor access to key distribution channels.

Opportunities:

The external environmental analysis may reveal certain new opportunities for profit
and expansion. Such opportunities include:

 Enter new segments or market expansion. 


 Introduce new technology to achieve competitive market. 

 Go beyond the industry barriers. 

 Introduce more variety of products. 

 Bring foreign luxury brands in the country. (Maison Valentina, Vitra etc. brands).
 Explore new markets such as internet.
 Mergers, joint ventures or strategies alliances with other companies.
 High cost of importing Raw materials.

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Threats:

Changes in the external environmental also may pose new threats to the firms. Such threats may
include:

 Competitor‟s new innovative products and services.

 Increase labour wage which actually increases manufacturing cost.
 Price war in ceramics industry.
 Threats from alternative or substitute products.
 Well managed key channel by competitors.
 Government‟s newly imposed rules and regulations against ceramics industry.
 Deterioration in political situation and strikes.
 Dependence on their distributors for representing their products.
 Shifts in consumer tastes away from their products.
 New regulations to increased trade barriers

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Define the company’s Business:

RAK Ceramics Limited is the manufacturer and sell of tiles and sanitary wares. The company
has over 1000 models active in the ceramic and porcelain tile business and in their product
portfolio continuously they add new products. Manufacturing sizes are 13 cm X 13 cm up to
60cm X 60cm. In sanitary ware various models are produced in wash basins (mounted as well as
pedestal), water closets, bathroom sets, bath tubs, shower trays, bathroom cabinets, and
accessories and decorated sets. Most of the product of RAK consumed in Bangladeshi market
and balance gets exported to UAE.

Products of RAK:

Tiles:

● Ceramic wall tiles, ceramic floor tiles, matching border & decor tiles, listellos and pencils
& capping and few other related items
● In Gres Procellanato, the company producing thousands of glazed and unglazed
porcelain, such as polished, semi polished, unpolished, rustic, stone, travertine etc.
● RAK has reach capacity to produce over 8 million square meters of tiles per annum &
has over 1000 different tiles models recipe.

The salient features of the plants are:

Huge collection of modern technological machineries like versatile 5 press, long range 5 kilns &
multipurpose 12 ball mills. Some unique patterns and finishes are acquired through new
technologies such as Roto Printing, Double charge, Granitech, MDR, Techno slate, Twin Press
and Dry Glaze etc. Some unique “antique style” finishes and many specialized finishes in tiles
have been possible due to such advanced Gres Procellanto technology. Computer controlled
guided vehicles transferred semi-finished goods from station to station, robots picked and placed
semi-finished tiles in many production steps as well as in sorting and packing the finished tiles,
skilled technicians in sophisticated control rooms monitored raw materials in blending mills, wet
and dry grinding vessels, presses, kilns, drying and cooling cycles, and many other operations.
Facilitate unique water jet designs, and diamonds cutting machine tools help make beautiful
vanity tops from gres procellanato slabs. Imported raw materials like soda feldspar, potash
feldspar, clays from India, Indonesia, Malaysia, and Thailand. Fritz & glazes from Spain & other
European countries. Active team of ceramist to challenge customer demand & device cost
effective input recipe solutions.

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 Sanitary Ware:

Various models of wash basin, water closets and water tank accessories and decorated sets are
produced. They produces over 900,000 pieces per annum & over 40 different models of sanitary
ware.

The salient features of the plants are:

In terms of Sanitary Ware, for production using latest Italian technology including computerized
kilns. For producing water closets using battery casting molds. A laboratory of the highest
standard.

Products/service that accounts for more than 10% of the company’s total revenue:

1 Jan 2008 to 31 Dec 2008 1 Jan to 30 June 2009

Brand Name Net Turnover Value Net Turnover Value
(Tk.) contribution % (Tk.) contribution %
Ceramics Tiles 845,236,903 26.02 513,669,201 26.89
Granite Tiles 1,575,705,242 48.51 938,635,651 49.13
Sanitary Wares 827,043,733 25.47 458,044,029 23.98
Total Revenue 3,247,985,878 100.00 1,910,348,881 100.00

Associates, subsidiary/related holding company and their Core areas of business:

Name of the company Relation Nature of business of the company

RAK Ceramics PSC, UAE Holding Company Produce Tiles and Sanitary Wares
Manufacture and Supply of
RAK Pharmaceuticals Private Limited Subsidiary
Pharmaceuticals Products
RAK Power Private Limited Subsidiary Power Generation and Supply
RAK Security & Services Private Provide Security Services
Associate
Limited

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Distinctive Competencies

There are several strategy that‟s helps RAK to get distinctive competencies over various
competitors.

Price: Their pricing strategy is cost plus strategy. RAK normally sets a certain price for each of
its products according to the international market rate which is done in terms of conversion of
dollar value. However the rates keep changing every now and then. When the demand is high
price is raised up and when the demand is low price cuts are made by RAK.They will give
different discount offer in different Occasions.

Quality: producing high quality tiles and sanitary ware products

Innovative design & Style: innovative design and features helps to meet market expectations

Distribution Channel: delivering variety of products at one stop location is a great strength for
RAK. RAK Ceramics (Bangladesh) Limited does not sell any of its products directly to the end
customers. As a result, the Company has appointed 98 dealers including tiles and sanitary ware
products all over the country to sell the products of the Company to the ultimate customers.

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Summary of Financial Analysis

Working Capital

2014
2016
2018
2020
Current Ratio 2022

Quick Ratio
Series1 Series2

Current Ratio:

The current ratio measures a firm‟s ability to pay off its short-term liabilities.

That is, based on this ratio, we can say whether the company can meet its short-term obligations

or not. Here, the chart shows that RAK Ceramics are consistently managing its short term-

assets and liabilities which is illustrated in the above ratio where current liabilities do not

exceed current assets. That is a good sign for the company. In 4 years, period we don‟t see once

the ratio going bellow one, this shows RAK efficiently managing its current asset & liabilities.

Quick Ratio:

Quick ratio measures how much of current assets company holds against its

current liabilities ignoring its inventories. While looking at the illustrations, we can say that the

company has a progressive trend in quick ratio. In 2016, it held 1.04 Taka worth of current

assets against each taka of its current liabilities which was the least. This indicates RAK

ceramics is consistently maintaining a healthy liquidity over the years.

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Profit Margin Ratios

201
9

201
8

201 GROSS MARGIN

7 PROFIT MARGIN
NET MARGIN
0 10 20 30 40

Gross Profit Margin:

Gross profit margin measures the remaining amount left from sales by

deducting the cost of goods sold, by sales. The ratio for RAK Ceramics has been significantly

decreasing with time from 2015 to 2018. This indicates their cost of goods sold is increasing.

Operating Profit Margin: This ratio tell us how much profit a company is making on every

BDT of sales after paying its operating costs. For RAK Ceramics this ratio is decreasing from

2017 to 2019. And From the graph it can be presumed that the operating expense for RAK is

increasing which is reducing the operating and net profit.

Net Profit Margin:

It shows how much income are they able to make after taking all of their

expenses from their total revenue. This ratio has been decreasing with time for RAK Ceramics

indicating its profitability decreasing in the last few years.

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Return on Asset and Equity Analysis

Return on asset
1
Return on equity
99%
99%
100%
100%

Return on Assets:

It measures how wealthy a company is in relative to its total assets. This

ratio also indicates about the efficient management of the company by using its assets to

generate incomes. For RAK Ceramics, the ratio is increasing from 2015 to 2018, which

indicates a good sign for the company as it shows it is using its assets more efficiently to

generate returns or income.

Return on Equity:

Shareholders are one of the key stakeholder of the company, who provides risk capital to run the
business. Thus it is the goal for every company to increase shareholders wealth. The higher the
ratio the better it is. For RAK Ceramics, the ratio has been significantly increasing with time
from 2015 to 2018, indicating it is also managing its equity more effectively to generate returns.

Remarks:

Overall the ratios indicate that RAK Ceramics is utilizing its assets and equity effectively to

generate return, while maintaining a healthy liquidity. But increase in its operating expenses

has decreased its overall profitability. Also RAK needs to be careful not to maintain too much

liquidity as liquidity tradeoff with profitability.

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Competitive Advantage of RAK Ceramics
The ceramics industry is a growing manufacturing sector in Bangladesh.. But RAK Ceramics
tries to provide greater customer value and satisfaction in different specialized sector than
competitors. So they achieved a most strong brand image over the whole world and now at this
time they are the number one leading company in Bangladesh ceramics industry. Behind their
reputation,they have their strongest business strategies and they lies in its professional expertise,
unrelenting pursuit of excellence and a deep and profound knowledge of the business
environment. Their major competitive advantages are:

• They have created a very strong brand name

and image. They are known as most popular
Strong brand name and leading ceramics industry in our country.
Not only in our country but also they are
number one ceramic manufacturer in the world.

• They have created a greater customer value and

satisfaction. They always tries to understand
their customers expectation. They give lots of
Good reputation importance on their customers view. Base on
among customers the customer's fanciness mind they always try
to develop and create unique designs and
categories of their products than other
competitors..

• Cost advantage from proprietary know how

Cost advantage exclusive access to high grade natural resources
favorable access to distribution networks.

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 • This is the most competitive advantage of RAK
ceramics. They have always try to make a great
effort to create the right ambience in our life
Technology aptitude with a perfect blend of technical finesse. They
have high standard and latest technology
management system than others industry.

• Their products quality is very high because they

Excellence in producing
high quality product
are very stricked about their qualityful raw
materials. If the raw materials are qualityful then
the products would be also standard and
advance quality.

• Rak ceramics uses more than 1000 production

model.40 models of sanitary wares with new
designs added almost every week to its protfolio.
Diversification of
their all products are manufactured by all sizes
product design so that customers can customize their product by
their own choice, which only offered by them in
the ceramics industry.

People always focus to the quality and designs of any product and RAK ceramics time to time
upgrade their product quality and product size or design and keep their product price reasonable
than the other competitors and this strategy placed them as a popular company in our country.
Most competitive advantage of RAK ceramic is their high quality latest technology and the
varieties designs of their products which always wondered others. They have high grade natural
resources than others. They operate the world class-leading SACMI technology that ensures
high-quality, cost-effective output and which helps them to stay ahead of their competitor in
market.Their products are also ECO friendly. They always try to bring out their catalogs design
with many unique design so that competitors can not copy them. They understand the customer
value and they strive to serve their best to their customers. Achieving customer‟s satisfaction is
very important to survive in the market and sustain in the long run and hold the position as a
market leader. They always keep in their mind that customers are their main assets.

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 Current business model of RAK Ceramics Bangladesh LTD:

Key Partners: Key Activities: Value Customer Customer

 Clay suppliers  R&D Proposition: Relationships Segments:
 Shareholders  Manufacturing  Modern  Customizati  Sanitary
 Product Demo designed on system and tiles
 Producers of
 Technology products  Hotline business
 Banks and other up-gradation services for owners
 High quality
Financial  Maintenance various  Building
products purposes owners
institutions  Different  After sale  Developers
 Diamond turning ranges of services and
products  Well trained builders
 Tiles and sanitary sales  Commercia
(low to
ware shops or manager and l and
outlets high)
staffs government
 Local suppliers  Perfect
institute
blending  Schools,
Key Resources: machine to Channels: hospitals,
 Inventories give  Dealers offices
 Trademarks technical  Tiles and
 Goodwill finesses Sanitary
 License business
 Plants for owners
manufacturin  Tiles,
g sanitary
 Machineries showrooms

Cost Structure: Revenue Streams :

 Salaries  Sales Volume
 Manufacturing costs  Partnership with other related companies
 Administration, R&D costs  Product Bundling
 Distribution costs
 Maintenance costs
 Marketing Costs

23
Bibliography

Jargons. B (2019). Internal Environment. Retrieved from https://businessjargons.com/strategic-

human-resource-management-process.html

RAK Ceramics (Bangladesh) Ltd. (2016). Retrieved From

https://www.rakcerambd.com/index.php

Massad. A (2016). RAK Ceramics (Bangladesh) Ltd. Available at

https://rakcerambd.com/investor-details.php?id=3

https://www.assignmentpoint.com/business/marketing-business/marketing-strategies-of-rak-

ceramics-limited.html

https://en.m.wikipedia.org/wiki/RAK_Ceramics

RAK pdf reports

https://www.assignmentpoint.com/business/marketing-business/marketing-

strategies-of-rak-ceramics-limited.html

https://www.rakcerambd.com/about-company.php

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25
 Part-B

Strategic Plan for 2020-2025

26
Recommendation for Increasing Profitability

From the financial analysis it can be seen that the profitability of RAK Ceramics is dropping for
the third consecutive year. This is mainly due to the increase in their operational expenses. So, if
RAK Ceramic scan reduce its operational expenses by practicing more efficiency, the
profitability of RAK Ceramics will automatically rise. However, considering the current
COVID-19 situation prevailing in the world, there will be more severe costs and losses incurred,
which needs proper strategic risk management to be done. RAK Ceramic‟s strength centralizes
on strong brand value. So as it has high demand it can reduce the amount of credit extensions
provided to the dealers and only provide credit extension to selected, high performing dealer.
This will decrease its loss from bad debt and increase its profitability. RAK Ceramics also lacks
in direct contact with its customers, which is a weakness of RAK. But by using communication
technologies such as internet, apps or social media not only will RAK Ceramics increase its
interaction with its customer but also increase profitability as more customers will come in touch
of RAK Ceramics. From Pestel analysis we can conclude that the economy is growing implying
more and more customers will be willing to buy luxurious tiles and sanitary wares, RAK should
concentrate more on the customer needs and bring new line of luxury tiles and sanitary ware.
This will also cut down threat from the tiles importers who import luxury tiles from china. From
the industry life cycle analysis shows that RAK Ceramics is at the maturity stage, so its profit
growth is slowing down. Therefore, RAK Ceramics should introduce new types of product
categories which will have more opportunity to grow and increase overall profitability of RAK
Ceramics.

27
Corporate Strategic Plan for the next five years:

Corporate level strategy is an approach where the company makes a decision which affects
the whole company including their finances, management, human resource and the
products that will be sold in the market. It refers to the top management’s plan for
controlling and directing the entire concern. These steps are based on the company’s
environment and internal strength. It reflects the combination of business moves, steps in
the strategic interest of the concern, considering various business departments, product
lines, customer segments and technologies.

Due to the Coronavirus pandemic, RAK ceramics had to incurred huge loss and they
almost had to shut down due to the fall in demand of the manufactured goods and the
shortage of supplies and workers. The corporate level start they might take longer for
implementation but this strategy will bring prospects in the whole organization once it
starts to work on the planned action. To overcome this situation, they can follow certain
strategies for the next 5 years.

The following strategies for corporate level are:

1. Diversification: They can enter new market by introducing new product line which
might help the current situation to get better by following the CSR (corporate social
responsibility) strategy. This will benefit both the company and society. They can
introduce eco friendly products with more sustainability and they can use the local
raw materials for the diversification instead of importing from China or other
countries. This will lead to more opportunities for local people as they will get new
jobs and new business setup.
2. Investigation: They should invest accordingly as there is a shortage of resources due
to the pandemic crisis. Therefore, they should do investigation and research before
investing in any segment.

3. Turnaround: To eliminate the problem that is holding the company back, they
should fix all the problem related to the shortage of labours, raw materials and
funds(cash).

28
 4. Divestment: This strategy allows the company to sell off poorly performing assets or
the assets that are not required any more. With the proper divestment strategy,
RAK ceramics can get their business back on track.

5. Profit: To make profit, they need to cut the cost price, trim non-core business
components, sell their poor performing assets and raise the price of the final
product.

29
Business level strategy
RAK Ceramics (Bangladesh) Ltd always try to identify the potential user group of tiles in the
current sales areas that is through direct marketing, personal selling coupon, discount, public
relation collecting data from the marketing channel and market research etc.

Also ceramic Industry like tiles and sanitary wares is highly capital intensive and a company
requires continuous investment and innovation to maintain its growth. RAK has been
consistently maintaining the strategic investment requirements to support its growth and to
secure market share.

Some effective business level strategies for RAK Ceramics (Bangladesh) Ltd of the subsequent
five years are given under:

RAK Premium Collection: Recently they launched a new product namely "RAK PRIMUM
COLLECTION” Here they have developed a new product development strategy for it.

Agreements with leading exclusive designers and laboratories: for developing enchanting new
designs RAK did agreement with leading exclusive designers and laboratories in Italy and Spain.

Production Capacity: The plant standard capacity is 22,000 square meter tiles and 2,500 pieces
of sanitary ware per day. But through the technological advancement they try to boost up their
production capacity.

30
Functional level strategy for 2020-2025 :

Functional level strategy is the everyday strategy which assists the business and corporate level
strategies. It is the tactical decisions of a company, such as marketing, production, research and
development, human resource etc.

Marketing:

No business can survive without marketing. Even a small tea stall needs word of mouth to
survive. For any kind of marketing it is essential to know about customers demand. And it is the
work of marketing team to get customers feedback and know about their needs. Being a
multinational company RAK has strong brand equity. It has segmented their customer
accurately. But what it lacks is strong marketing. I don‟t remember what was the last add I had
seen from them before writing this report. They need to produce more advertisement to gather
their customer‟s attention. To connect with their customers they need to produce emotional
advertisement. Now a day‟s people don‟t watch much television. The spend most of their times
in face book and other online sites. RAK ceramics should move from their traditional
advertisement to online advertisement. They can sponsor events, different shows. In this way
they can gather most attention from their customers.

Research and development:

The first and most essential factor for research and development is to know what customers
want. To fulfill any need of customers it is necessary to know about their need first. Everyday
peoples taste, products are changing due to continuous innovation and technological
advancement. It is the work of research and development team to be aware of those changes and
play by them. To survive in the market research and development team should work side by side
with marketing team. Because market research is a must to know about customers need. They
should continuously work on producing unique and new products to attract more customers.

Human resource management:

To run any organization the role of employees are very important. It is the employee who runs
the organization. So to become a successful organization it is very important to have best and
efficient employees. So the screening and hiring process of any organization is very important. It
is the task of human resource to look very carefully into these things. The hiring and screening
process should be effective enough to recognize talent. Again an employee will do his/her job
with enthusiasm and interest when he/she will feel that they are getting enough attention and
values for their work. So it is also one of the important task of the human resource team to think
about their employees wellbeing. They should always make their employee feel important and
wanted. And they should be rewarded according to their performance. This will increase their
interest and will also help them to focus more. Despite of RAK being a multinational company
the employees are not satisfied there. Their salary is not sufficient. There exists favouritism and
partiality. They don‟t provide transport facilities. Their middle management is not caring and
friendly. RAK should consider about their human resource team. The top management should
take necessary steps to satisfy their employees and to stop this inequality. They should organize
open discussion sessions with their employees about their surroundings, work experience and
31
about their problems. By doing these things RAK will be able to satisfy their employee needs,
which will provide them talented, happy and enthusiastic employees.

E-Commerce:

Electronic commerce or even internet commerce refers online buying and selling of products and
services. In this era, internet plays a vital and most important role in almost every business. We
can get food, clothes, and daily necessities from online sites. To survive in this era by doing
business it is a must to have a proper online site. RAK is a big and successful multinational
company; it has many successful outlets in Bangladesh. It has a lot of dealers to distribute their
products, but they don‟t have any proper online appearance. They have an app called RAK
ceramics Bangladesh but it is not in proper function. Because of this RAK is losing their online
customer base, which is not good for their future. So IT department should work with the
changing business environment to make their customer base stronger, both online and offline.

Supply chain management:

RAK ceramics don‟t have their own supply chain management. In order to distribute their
products they have to depend on the local authorized dealers. Till now they have only four
outlets in all over Bangladesh. (Sylhet, Chittagong and Dhaka) RAK ceramics should increase
their coverage. They should have shops in every cities of Bangladesh and they should also buind
their own supply chain management. Because by relying on the dealers they are losing their
market coverage and they are also losing their control.

So, these are some of the functional level strategies that RAK should follow in the upcoming
years. In the upcoming year many things can change. Environment can change; new innovations
can take place and many other things. Like now we are going through a global pandemic
situation. So RAK ceramics should have their own unique way to tackle these uncertainties. It is
true that they are a big and successful organization. But in order to continue to be successful they
should change and adapt new strategies. In this way they can hold their strong position in the
market.

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Technology Strategy for 2020-2025
Technology Strategy for 2020-2025
Astute leadership, a strong resolve to have the best results driven by a well conceive strategy has
been the hallmark of success. Technology strategy is the thing which is precise and creativity has
no limitations. RAK ceramics has managed to successfully blend technology and creativity and
thus pushed its way to the top of its sector within a short time span. RAK ceramics has been
successfully developed their new product by the style of technology.

For next five years (2020-2025) RAK can introduce new technology such as;

Cladding applications for new product: RAK ceramics are planning to add a new type
of product that is suitable for cladding application. They will be introducing new technology for
the first time in the entire region, to produce large format slim tile that can be used for a wide
range of purposes, including cladding. They are working on bringing lighter but bigger size
products.

Customized App technology: RAK ceramics VR is the app of RAK ceramics industry.
They have their own customized app where customers can find their all products information at a
glance in one place. They are planning to add the color change option so that customer can
understand which color will be perfect for their uses. This feature also can in their website. By
this strategy they can reach maximum number of customers.

Anti-microbial Technology: This technology is a very uncommon strategy. They are

planning to promote this technology in RAK Anti-microbial tiles that inhibit the growth of
microbes on the surface of tiles, especially for areas where health and hygiene are of primary
concern such as hospitals, schools and the hospitality sector.

3D Room Visualizer: RAK ceramics have started their new service 3D room visualizer in
their service experience center. Customers can wear the 3D visualization gear and they can see
virtual visualization where the customer can choose their home‟s room, dining, washroom,
kitchen etc. With the help of this technology, customers can decide or choose their desire color
of tiles, what will be the size, what will be the design of tiles will be shown which fall under the
RAK ceramics.

Water jet cutting technology machines: This machine can cut intricate designs at high
speed without breakage. Another machines like CNC machines are very slow than this. So if
they upgrade this technology system in next few years they will be more productive and it will
bring the way to expand the business.

Nano-pix digital printing: This is such kind of digital printing technology which RAK
ceramics are already started. RAK Ceramics is taking every feasible initiative and consistently
upgrading the production facilities to cater to and meet the demand of the global market by using
upgrade technology system. Another technology can be used in ceramics to bring unique and
different design by the Neo UV-LED printer. The printer is invaluable because it can print on
any kind of material, like glass, wood, ceramic and it is eco-friendly with mobility because of its
built-in wheels and its low power consumption.
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Revised Business Model :

Key Partners Key Activities Value Proposition Customer Customer

Relationships Segments

 R&D  Premium  Customizatio  Sanitary

 Exclusive  Manufacturin Collection n system and tiles
designers g  Cladding  Hotline business
 Product applications services for owners
and Demo for new various  Building
laboratories  Technology product purposes owners
up-gradation  Modern  After sale  Developer
 Clay  Maintenance designed services s and
suppliers products  Well trained builders
 Commerci
 Shareholders  High quality sales manager
al and
 Banks and products and staffs governme
 Different nt institute
other Key Channels
ranges of  Schools,
Financial Resources
products (low
 Huge  Dealers hospitals,
institutions to high)
production  Tiles and offices
 Diamond capacity  Perfect Sanitary
 App technology blending business
turning  3D Room
visualizer machine to owners
 Tiles and  Water jet give  Tiles, sanitary
sanitary cutting technical showrooms
ware shops technology finesses
or outlets machines:
 Local  Nano pix Digital
suppliers Marketing
 Trademarks
 Goodwill
 License
 Machineries
Cost Structure Revenues Streams
 Salaries  Sales Volume
 Manufacturing costs  Partnership with other related
 Administration, R&D costs companies
 Distribution costs  Product Bundling
 Maintenance costs  E-commerce
 Credit extensions
 Marketing Costs  Divestment
 Investigation Cost

34
Reference:

Anthony, R. (2007). Management Control Systems. Retrieved from

https://en.wikipedia.org/wiki/Management_control_system

RAK Ceramics (Bangladesh) Ltd. (2016). Retrieved From

https://www.rakcerambd.com/index.php

P.Royel. (2018). Prospectus RAK ceramics. Retrieved From

https://www.rakcerambd.com/about-profile.php?id=38&type=Description

35
 Part – C

Implementation of Strategic Plan

36
Change in the company’s governance to support strategies in Part B
Corporate governance allows to the structures and procedures for the bearing and control of
organizations. Sound corporate governance is an essential piece of the way of success of the
organization and guarantees long haul achievement. Great corporate governance additionally
implies adjustment to sound moral standards and a set of principles in business dealings. The
Board of Director of RAK Ceramics need to be solidly dedicated to maintain standards of
corporate governance. In RAK Ceramics they believe on good corporate governance practice.
They always need to maintain transparency. To ensure transparency, the Board needs to follow
the practice of advance planning in matters requiring discussion and decision by the Board.
Because, good corporate governance practice helps a firm to increase it‟s good will among
customers, partners and investors and also help a company to develop and grow further. RAK
Ceramics has 5 Board of Directors members along with two independent members, who are
performing their duties, providing leaderships, strategies to run this business efficiently and
effectively. They need to strictly observe and maintain internal audit and have control over that.
To support the strategies, which are suggested in part B, the Board of Directors of RAK
Ceramics need to come up with a new plan to introduce their own supply chain way so that they
could emphasize on penetrating the market even further. Though the corporate governance
practice in RAK Ceramics is pretty good but still to support the part B strategies, the top
management of RAK Ceramics definitely need to change their corporate governance slightly. If
they do so, then they may able to practice economics of scope and go to price war to increase
their market share value more.

Recommended Strategic Control System:

37
RAK ceramics maintains this process to control the formation and execution of their strategic
plans. It differs from other forms of management. It‟s basically depends on the future goals of
any company. So, RAK ceramics also follow it to reach their future goals. They maintain this
process so that they can ensure their product quality and performance which were decided by
their strategies before. RAK should supervene it, to get a sound control system as it will help
them to be the market leader. It also includes evaluation and feedback processes so that
managers pay attention to what the employees are doing and tell them what was unexpected.
Like all others, RAK should integrate their strategy and control systems to ensure that their
strategy is well planned to meet the future goals.

At present RAK ceramic‟s most used control system is “personal control system”. Which
means managers meet directly or face to face interacts with the employees to make sure that their
performance are going well to meet the expectations. But as they have more than 2500
employees, so it‟s not an easy thing. So I will suggest them to switch into another control system
that is “behavioral control system”. We are saying so because, here they need to target first
then measure it, after that the review should be done, then feedback of it and finally rectification.
Their one of the major goal is to increase the customer‟s responsiveness too. As Behavioral
system is a comprehensive system of rules and procedures so it will be able to ensure the
employees performance. There are two forms of behavioral controls. One is operation budget
and another is standardization. In standardization, it refers to the degree where the business units
can determine how decisions should be made so that employees‟ behavior gets predictable.
Monitoring and evaluation have to be done here. At this control system, RAK ceramics can give
satisfactory incentives to the employees. So, it will help them to achieve their future goals.

Then, they should follow “Implementation Control” because to implement a strategy, they
have to have good plans, programs, and projects and allocate the resources. They have to keep
track that those plans are going well or not. In case, the managers can see their plan and program
is not fulfilling the expectation then there will be a need of matching revision. It helps to keep
rethinking of strategies to avoid any type of mismanagement as it involves monitoring too.

They should follow “Premise control”. Because it helps to keep track of market competitions,
government policies, restructuring the production technology, high tech employees, market
innovation strategies many more.

38
Cultural support behind recommended strategies
Yes, the existing company culture supports our recommendation strategies.

The country‟s largest and most respected tiles and sanitary ware brand RAK Ceramics
Bangladesh Limited, always try to create unique something that brings them a strong position in
the ceramics industry. They believe in a statement that, “Excellence” is a way of Life at RAK
Ceramics, it knows no boundaries nor it is a fixed standard and “Excellence” in the use of the
Best Technology to create the most innovative products and designs. Their strategy of
technology is the main weapon of their success.

They have over thousands designs of their products because of their customer‟s satisfaction.They
have created the best customer value. They always try to understand customers mind that what
they are wanting and try to fulfill their expectations. As we include Behavioral control system
in our recommended strategy that refers the major goal of increasing customer‟s responsiveness.
RAK ceramics tries to change the design continuously. Over 6000 active designs form the
backbone of the tile business, with a range that covers thousands of models in soluble salt, salt &
pepper and glazed, covering finishes such as polished, semi polished, unpolished, rustic, stone,
mosaic etc. Their every decision and monitoring system are well managed. They give lot of
opportunities to their employees so that employee‟s behavior gets predictable. Their standard
management bring them lot of success and their product development strategy brings them best
product certificates. RAK Ceramics products are certified in accordance with UNI EN ISO 9001
International Standards. They have also received many more certificates such as, ISO
9001:2008 and ISO14001:2004 certified by Bureau Veritas Certifications, SINTEF Certificate
etc.

RAK ceramics are recognized as well managed company. They perform corporate meeting
season when they need any change or important discussion. They arranged program also under
the RAK (BD) ON SAP KICKOFF project. They have their broad level project system. They
performed international projects in DUBAI. All this falls under the implementation control
which we recommended.

They support Premise control system also which we recommended. They have high technology
system in their strategies.They are far ahead from others company for their overall strategies.
Some unique designs, formats, patterns and finishes are acquired through new technologies such
as ROTO printing, double charge, dry glaze, advanced MDR, digital printing, techno slate, twin
press, & others. They are always prepared when they need any restructuring in technology
system. They lies in it‟s professional expertise of their business environment. They have applied
their high tech expertise in some of the most iconic and innovative projects around the world.
They maintain government rules and regulation They have strong sense of the environment
ethical issues which is strongly declared by government policies. They have a broad sense of
minimizing pollution and improving standard of living. A unique “green building” concept
product from RAK Ceramics that contributes to the Environment Possible with High Technology
and innovations from RAK Ceramics.

Their overall achievements brings them lot of good reputations. RAK ceramics are recognized
as a best award winning organization. They have been awarded the “Bronze Award” in the
“ICSB National Award 2015‟‟ and “Gold Award” in the “ICSB National Award 2016“for
39
Corporate Governance Excellence. They have received also received a bronze award for the
“health and safety program”.

Hence with all the achievements of the company in terms of product quality and sustainability,
the current company culture supports our recommendation strategy.

40
Recommended global strategy’s support behind recommended strategies
RAK get chance to be the top 25 th tiles manufacturer in 2009. Whereas total production output
of 115 million square meters. They achieve this position through its market-leading capacities,
world class manufacturing assets, high production utilization, and optimized cost structures.

Manufacturing sizes are from 20 cm X 30 cm up to 60 cm X 60 cm in Bangladesh location and

with over 30 models an exclusive range of sanitary ware to offer with a very wide choice. In
sanitary ware various models are produced in wash basins (mounted as well as pedestal), water
closets, accessories and marble sets.

Focusing on maximizing capacity utilization help RAK to boost up production level at optimum
level. So that, they can get chance to beat the giant producer of tiles and sanitary ware

Based on existing market reputation, they need to work on that. Because, Need to make the
current market less attractive to new entrants through provide special offering in the marketplace

41
Ethical Value Proposition:

A value proposition is a statement that provides the benefits, a company's products and services
may deliver to its customers. A well-planned value proposition will differentiate a company or
its specific product or services in the marketplace and within a segmented market or customers.
But an Ethical Proposition is an innovative way of using the primary products combined with the
ethical possibilities, like the ongoing pandemic of COVID-19, to cover a niche market with a
particular attention of sustainability and ethics. Some of the ethical sustainability goals involving
RAK are as follows: • Governance: With the goal of integrating the UAE plants with joint
ventures to other overseas plants, they are constantly trying to improve their efficiency with
focus to every individual department to optimize their overall performance in reducing cost and
increasing productivity. • Product responsibility: With different steps and public gatherings, they
are trying to educate their customers to inspire them to play a constructive role in saving the
environment. • Safe Labour Environment: In order to achieve Zero work accident, they are
continuously evolving for a safe environment and ensuring safe practices by providing them with
safety protection kits and following all the requirements by the WHO in this current pandemic,
for all their workers. They also rolled out to a mass Covid-19 screening programme with Health
authorities for all their labourers cross boundaries. • Human Resource: They are hiring local
talents and grooming them for contribution to the economy thus encouraging emiratization. •
Environmental Contribution: They have set goals to implement ISO 5000:1 and to be one of the
leading companies to reduce Green house gas and carbon emission. Thus in order to achieve this
they are developing energy management system (EnMS) to use energy more efficiently and
conserving resources while tackling climate change. • Goodwill: RAK have always been a
leading competitor for creating awareness, setting benchmark for others in achieving customer
satisfaction with direct interaction, thus eying for social awards related to CSR and Customer
Engagement..

42
Conclusion

In this report we have discussed about the strategies that were taken by RAK Ceramics LTD. By
collecting information and working on this industry we came up with a decision that, they are
holding a very strong position in their particular industry. Corporate, business, functional level
strategies are well planned and implemented. Managing employees in a company is not easy as it
includes many complex tasks but RAK Ceramics LTD is doing it very well. Though they have
some shortcomings but overall they are doing very excellent. Their implementation of all the
strategies are perfectly organized that it is taking good care of all the strategic issues. They have
several ways of employee benefits also. So overall it can be said that RAK Ceramics Ltd is
becoming one of the leading company of our country in the ceramics industry.

43
Bibliography

Sarkissian.A. (2019). Why Is Strategic Management Needed? Retrieved from

https://yourbusiness.azcentral.com/strategic-management-needed-15149.html

Chowdhury.I. (2018). Strategic Control. Retrieved from

http://www.yourarticlelibrary.com/strategic-management/strategic-control/99745

Anthony, R. (2007). Management Control Systems. Retrieved from

https://en.wikipedia.org/wiki/Management_control_system

RAK Ceramics (Bangladesh) Ltd. (2016). Retrieved From

https://www.rakcerambd.com/index.php

R.Khan. (2018). Prospectus RAK ceramics. Retrieved From

https://www.rakcerambd.com/about-profile.php?id=38&type=Description

https://sec.gov.bd/ipoprospectus/RAK_Prospectus-final.pdf

Essays, UK. (November 2018). Value Chain Process of RAK Ceramics Business Essay.

Retrieved from https://www.ukessays.com/essays/business/value-chain-process-of-rak-

ceramics-business-essay.php?vref=1

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 Bonus Part

45
Current Carbon Footprint of RAK Ceramics
(i)
Carbon footprint is basically the amount of carbon dioxide and other green house gases released
in the environment because of the activities of an individual, organization and community.

RAK ceramics is trying their best to reduce their carbon footprint. Their mission is to achieve
global sustainability by creating eco friendly products.

By following environmental policy RAK ceramics try their best to reduce their carbon footprint
and green house gases. All their emissions are closely monitored by UAE government using
dispersion model, isokinetic measurement [G4 - EN 15, 16, 17, 19 AND 21]

RAK ceramics emits 86000 normal meter cubed carbon monoxide and sulphur dioxide per hour
from driers and generators, which are direct green house emission. Among indirect green house
emission they emit 5820520 MMBTU gases per year. And they emit 253315 tonnes carbon
dioxide per year.

RAK ceramics are taking many initiatives to save the environment. Till now, they have engaged
in planting trees, reduced water consumption and they have also taken projects to turn oil into
natural gas.

(ii)

RAK Ceramics is committed to continuously improving its environmental stewardship

throughout its value chain, including designing environmentally friendly products, sourcing of
raw materials and operating its manufacturing processes efficiently. RAK Ceramics continues to
take steps towards minimizing environmental impacts and conserving resources through
progressively reducing emissions, discharges, and wastes. RAK Ceramics are involved in joint
training programs on environmental and health and safety issues. They have many collections of
ECO-FRIENDLY products. To aware their customers to preserve the environment they have
Wood art collections. RAK ceramics also educates their employees and architects to reduce
energy usage, by coming up with innovative products. As part of its environmental policy, RAK
Ceramics‟ is committed to using the best available environmental technology and practices in
order to progressively reduce emissions, discharge and waste, improve the efficient use of
energy, and conserve natural resources. They took part also in reducing GHG emissions. Carbon
gas, Sulfur Dioxide, Nitrogen oxides etc. gases include in GHG emissions. To reduction of GHG
emission they use Spray Drier Wet Scrubber System. RAK has taken “Clean Development
Mechanism” (CDM) projects to convert oil to natural gas, hence reducing the carbon gas
emissions. In addition to that, they are planting 10,000 trees which would reduce carbon dioxide
emissions, and thus protecting the environment. All employees of RAK ceramics are encouraged
to reduce paper consumption by using electronic mail and the company email signature includes
an environmental statement „Save a tree, please don‟t print this email unless you really need to‟.
46
47
Bibliography
RAK Ceramics (Bangladesh) Ltd. (2016). Retrieved From
https://www.rakcerambd.com/index.php

Massad. A (2016). RAK Ceramics (Bangladesh) Ltd. Available at

https://rakcerambd.com/investor-details.php?id=3

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