Independent University Bangladesh

Course ID: MGT201

Section: 4
Semester: Spring 2022
Submitted To: Maria Muntahin

Submitted By:
Name ID Collaboration
Sajid Ahmed 2120935 SWOT Analysis
Akibuddin Sarkar 2131112 Company Overview
Rahman Badhon Tanvir 2120500 PESTLE Analysis
Md. Takrimul Islam 2120871 Critical Stakeholders
Mst. Jakiya Sultana Chaiti 2130013 The competitive advantage

Date of Submission: 5 April 2022

Project Company: bKash

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Table of Contents

Letter of Transmittal.............................................................................2
Acknowledgement................................................................................3
Research Method..................................................................................3
Executive Summary..............................................................................3
Company Overview – BKash Limited.................................................4
Our Mission..........................................................................................5
Products and Services...........................................................................5
General External Environment factors.................................................5
PESTLE Analysis for BKash...............................................................8
Critical Stakeholders.............................................................................9
SWOT Analysis..................................................................................10
SWOT Analysis for BKash................................................................11
The competitive advantage of BKash.................................................12
Conclusions........................................................................................13
Findings..............................................................................................13
References..........................................................................................13
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Letter of Transmittal

To,
Maria Muntahin
The Course Instructor
School of Business Administration
Independent University, Bangladesh
Bashundhara, Dhaka.

Subject: Submission of the “Group Assignment”

Dear Miss,
Here is the report that we assigned on the topic as per your instruction. The report has been
completed by the knowledge that we have gathered from the course “Principles of
Management MGT201”.

We are thankful to all those persons who provided us with important information and gave
us valuable advice. We would be happy if you read the report carefully and we will be
trying to answer all the questions that you have about the report.

We have tried our level best to complete this report meaningfully and correctly, as much as
possible. We do believe that our tiresome effort will help you to get ahead with this sort of
venture. In this case, it will be meaningful to us. However, if you need any assistance in
interpreting this report, please contact us without any kind of hesitation.

Thanking you.

Yours obediently,

Sajid Ahmed

Akibuddin Sarkar

Rahman Badhon Tanvir

Md. Takrimul Islam

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Mst. Jakiya Sultana Chaiti

Acknowledgement

We especially thank Maria Muntahin the course Instructor for allowing us to study this
project. We would also like to thank everyone who helped us directly or indirectly, everyone
supported us. Finally, we wish to thank our parents for their supports and encouragement
throughout the study.
Lastly, all our team members worked very hard and contributed a lot through to make this
report. Everybody has given suggestion, information which has helped us to improve our
report better. We deeply appreciate everything; each member has done for the project.

Research Method
Our research process was a combination of different areas. The chronological structure is
given below:

brainstorming Group
Websites
ideas discussions

Executive Summary
We chose BKash to assess as a whole company. So, first, we did a PESTLE Analysis, in
which we looked at what factors are affecting BKash positively or adversely. "Economic and
Political," for example. Second, we looked at stakeholders. We looked at some of the
company's most important stakeholders, such as customers and stockholders. Following that,
we conducted a SWOT analysis to determine the company's external and internal strengths
and weaknesses. Finally, in order to determine whether the company has a competitive
advantage in the market, we conducted competitive advantage analyses, which included an
examination of what distinguishes BKash from other banking companies in Bangladesh.
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Company Overview – BKash Limited

As of now, BKash is one of the most prominent Mobile Financial Services Providers in the
financial as well as the social world. BKash began as a joint attempt between BRAC Bank
Limited, Bangladesh and Money in Motion LLC, the USA in 2010. In April 2013,
International Finance Corporation (IFC), an individual from the World Bank Group, turned
into a valued accomplice and in March
2014, Bill and Melinda Gates Foundation
turned into the financial backer of the
organization.

In April of 2018, Ant Financial (Ali Pay),

an associate of internationally presumed
Alibaba Group, turned into a financial
backer in BKash. BKash Limited (BKash)
is a Bank-drove Mobile Financial Service
Provider in Bangladesh working under the
permit and endorsement of the Central Bank
(Bangladesh Bank) as an auxiliary of BRAC Bank Limited.

It (BKash) gives protection, advantageous and simple methods for making instalments and
cash move administrations utilizing cell phones to both the unbanked and the banked
individuals of Bangladesh. A definitive target of BKash is to guarantee admittance to a more
extensive scope of monetary administrations for individuals of Bangladesh. It has an
extraordinary concentration to serve the low pay masses of the country to accomplish more
extensive monetary consideration by it are advantageous, reasonable and solid to offer types
of assistance that.

Presently, BKash is running an organization of more than 200,000 specialists all through
metropolitan and provincial areas of Bangladesh with more than 50 million confirmed
accounts.

In 2017, BKash was positioned as the 23rd organization in the yearly rundown of Fortune
Magazine's 'Change the World in 2017' among the best 50 organizations to make changes
because of social issues. BKash has been perceived as the Best Brand in Bangladesh for the
second successive time (2019 and 2020) in a purchaser overview led by the Bangladesh
Brand Forum. The BKash has likewise been chosen as the No. 1 Mobile Financial Services
Brand for the fourth time in succession in the MFS class.

Over 70% of the inhabitants in Bangladesh live in country regions where admittance to
formal monetary administrations is troublesome. However these are individuals who are in
most need of such administrations, either for getting assets from friends and family in far off
areas or to get monetary apparatuses to work on their financial condition. Fewer than 15% of
Bangladeshis are associated with the proper financial framework though more than 68% have
cell phones.
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These telephones are not only gadgets for talking, however, can be utilized for more valuable
and modern handling undertakings. BKash was imagined basically to use these cell phones
and the ubiquitous telecom organizations to expand monetary administrations in a protected
way to the under-served distant populace of Bangladesh. BKash can be gotten to through
every one of the versatile organizations working in Bangladesh. As of now, BKash is running
an organization of more than 200,000 specialists all through metropolitan and provincial
areas of Bangladesh with more than 50 million confirmed accounts.

Our Mission
By providing financial services that are convenient, affordable, and reliable, BKash aims to
widen the net of financial inclusion. BKash wants to provide a solution for Mobile Financial
Services, built on a highly scalable Mobile Money platform, allowing the people of
Bangladesh to safely send and receive money via mobile devices.

Products and Services

BKash is providing the below mentioned products and services to all of its users,

1. Cash In
2. Cash out
3. Send money
4. Mobile recharge
5. Payment
6. Utility bill pay
7. Interest on savings
8. International Remittance

General External Environment factors

The term of external environment refers to factors and forces outside the organization that
affect its tasks and performance. It includes several different components such as political,
economic, social, technological, environmental issues which is called PESTLE. PESTLE
Analysis is a researching tool for strategic business planning. It is a strategic framework for
well understanding external affecting or influencing on a business. The PESTLE framework
is a researcher tool used to identify key drivers of change in the strategic environment.

Political Factors

The action of government affects business and other organizations. Political factors define
“government stability, taxation policy, introducing new law and regulation by the
government, (Henry, 2008). Governments are continually changing the laws and the rules
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that affect business and the banking sector. For example- The banking sector mostly depends
on the Government and its laws. The government can also operate in banking matters,
whenever it is necessary. The Bangladesh Bank and Government mobile banking industry
has experienced remarkable progress in a few years. Bangladesh government’s motive in
building a “digital” nation has enforced the technological advance. It has an attractive
banking industry in the market.

Economic Factors

Economic factors mainly include growth, interest rates, exchange rates and inflation rates.
These are the factors that mainly have a major impact on the operation of any business and
different decisions that are taken for business. The economy consists of businesses and
government. The international economy consists of the economies of all the countries in the
world. Businesses are continually affected by the changes in the economy. For example-
Exchange rates affect banks globally — stable currencies such as the US dollar impact other
currencies, spending habits, and inflation rates in other countries. I also add another example
which is covid-19 virus spread all over the world. According to the world meters website
Bangladesh position at 27th at this time. If we look at Bangladesh GDP last two years- for
2018 GDP was 7.86% that is increased 0.58% from 2017. For 2019 GDP was 8.15% which is
an increase of 0.29% from 2018.

Social factors

Society is made up of all the people in a given area. It is important to be able to find out what
are the main trends that are happening in society because these trends affect business. For
example, culture is influenced by buying behaviors and necessities. That affects how people
see and use banking options under their overview. People go to banks for advice and
assistance for loans related to business. Consumers search knowledge from bank tellers
regarding saving accounts, investments, and more. Consumers want a seamless banking
experience. And mobile banking technology is developing to allow consumers to buy
products easier, without requiring assistance directly from banks. This factor helps a marketer
to further understand their customers’ needs and wants.

Technological factors

The technological environment constitutes innovation, research and development in

technology, technological alternatives, innovation inducements also technological barriers to
smooth operation. Technology is one of the biggest sources of opportunities for the
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organization. And it is very dynamic. M-banking technology, the latest generation of

electronic banking transactions has become familiar banking features. It opened up new
windows of opportunity to the existing banks and financial institutions and made life easier &
flexible. Technology is changing day by day on mobile banking. Consumers know how they
handle their funds. Many banks offer a mobile app to witness accounts, transfer funds, and
pay bills on smartphones like BKash.

Legal Factors

Legal factors include employment legislation, consumer law, health and safety, international
as well as trade regulation and restrictions. For example- The banking industry follows strict
laws regarding privacy, trade structures and consumer laws. Legal risks are quite high in this
industry.

Environmental factors

Most of the people are using technology in the world. Day by day technology is advancing
such as mobile apps and online banking have reduced the amount of paper used. It has also
minimized individual environmental footprints as consumers can now apply for send money,
bill pay, admission fees pay and many of their banking questions answered online or by
phone.

PESTLE Analysis for BKash

Political:
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In Bangladesh, political stability is uncommon. Internal political issues constantly exert

pressure on the economy, slowing progress in every area, and the Mobile Financial Services
(MFS) sector is no different. Despite the adverse circumstances, the mobile banking business
has overcome the obstacles posed by governmental inconsistencies and is now in its fourth
year on the market. The mobile banking industry has made great progress in just a few years
because of the Bangladesh Bank and Government's proactive and forward-thinking strategy.
The government of Bangladesh's goal of becoming a "digital" nation has pushed for technical
innovation, which has boosted the mobile banking industry's growth and positioned it as a
viable alternative in the market.

Economic:
Economic factors have a positive effect on the current economy of Bangladesh is being
unstable.
Despite being a country with political instability, poor infrastructure, corruption, insufficient
power of supplies, and slow implementation of economic reforms, the economy of
Bangladesh has grown in the past years from 2014 to 2015 but followed by a declining rate in
2016 and 2017, according to Bangladesh Economy Profile 2017. (CIA World Factbook,
2017). The outgoing year has been one of the most disturbing years for Bangladesh in the
recent past in terms of domestic political instability caused by strikes, blockades, and deadly
violence of months. As a result, the economy had to bear the brunt in many ways. The world

Social:
Social elements favorably influence the sector. Financial services on the go. Unbanked
people can benefit from financial services if they possess certain characteristics. MFS may be
accessed by almost anyone at any time of day or night and from any location, removing the
limitations of traditional banking. MFS also offers security services at a moderate cost.
Various services such as utility bill payment, fund transfer, shopping, cash withdrawal from a
designated ATM or cash point, and many more exciting features are available through mobile
banking. People favor MFS because it combines time savings, low cost, security, and
trustworthiness.

Technological:
The industry is negatively impacted by technological considerations. Technological factors
refer to technological advancements that have the potential to positively or negatively impact
industry and market operations. This alludes to automation, research, and development, as
well as the future. The level of technical responsiveness possessed by a market. Almost every
bank has gone up in flames. to embrace cutting-edge mobile banking technology to stay
ahead of the competition necessitates innovation to compete. However, when compared to the
rate of MFS innovation, MFS in Bangladesh is still in its early stages, and there is much more
to learn about it.in the foreseeable future.
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Legal:
Legal considerations have a favorable impact on the industry. There are both external and
internal aspects to these issues. The mobile account will be classified as a non-checking
account rather than a regular banking account. The rules provide for the following services,
subject to specific bank proposals and Bangladesh Bank approval.
1. Disbursement of inward foreign remittances.
2. Cash in/out using mobile accounts through agents/ Bank branches/ATMs/ MNOs outlets.
3. Person to business

Environmental:
Environmental variables have a favorable impact on the industry. The enterprise needs a
healthy environment, including air, minerals, and other natural resources.
bank international monetary fund, Bangladesh Bank, and many experts have projected the
gross domestic product (GDP) to be lower than 6%, which is much below the target of 7.2%
for FT2017. Some even apprehend it may be lower than 5%. The outgoing year has been one
of the most disturbing years of Bangladesh in the recent past in terms of domestic political
instability. The most tragic issue of the novel coronavirus has dragged the economy behind.
A poor economy implies less employment generation and low income, which in turn has
poverty implications. If the poor economic scenario continues, Mobile Financial Services
(MFS) may fall into a less attractive sector.

Critical Stakeholders

A stakeholder is someone who has a vested interest in a company and can influence or be
influenced by its operations and performance some examples of stakeholders are the
Government, Customers, and shareholders. Critical Shareholders are those who are actively
involved in the development of the product or service.
Management: A Company needs good management to run it properly and efficiently. The
day-to-day activities of a business or organization are all covered by its management. As it is
difficult to get good management and if a company does not have good management and then
it becomes very difficult to run a big business like BKash.
Government: BKash compiles with all the rules and regulations of the government pays
taxes regularly to keep the government happy so that their business can run smoothly.
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Customer: The customer is considered the most important stakeholder because if they are
unhappy with the services of the BKash then it will be difficult for the BKash to gain revenue
for the company to succeed.
Shareholder: Moreover, BKash must maintain an adequate level of dividends for its
shareholders so that they are satisfied and buy shares, resulting in greater funds for banking
operations.
BRAC: BRAC can be called the parents of BKash because BKash without BRAC is
unimaginable. BRAC is a critical Shareholder. It holds a 51 percent Share in BKash.
Money in Motion LLC: It is a company that provides 10 million investment in BKash so it
is a critical shareholder.
Ant Financial: In April 2018, Alipay, a concern of China's e-commerce and tech giant
Alibaba Group, has bought 20 percent stakes in BKash.

SWOT Analysis
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT
analysis is a technique for assessing these four aspects of your business. SWOT Analysis is a
tool that can help you to analyze what your company does best right now, and to devise a
successful strategy for the future.

SWOT Analysis for BKash

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Strengths:
 Under the big wing of BRAC Bank, BKash is the first money mobile financial service
provider in Bangladesh.
 Huge network, customer base, strong brand name, and identity.
 At present BKash is the leading mobile financial service provider in Bangladesh.
 By using the latest technology BKash is serving customers in the shortest time
possible.
 They have a very strong customer service which is open 24/7 for its customers.
 As the largest MFS provider in Bangladesh, it has a large number of agents. So,
consumers can use their service very comfortably without going to the bank.
 With the help of KYC (Know Your Customer) technology customers can create a
BKash account easily without going outside home.
 Recently BKash has partnered with Payoneer so that freelancers can withdraw their
money from the international marketplace very easily without any hassle in a short
time.

Weakness:
 The company does not provide any kind of security to the agents and the customers
for any kind of fraudulent activities committed by ant third party.
 There is a limit of transactions for every BKash user in a day which can be a problem
for several customers who transaction a big amount of money.
 In recent times, online shopping is gaining popularity in Bangladeshi Market. BKash
is still doesn't provide any kind of transaction service for some online shoppers and it
is a big weakness for the company.
 By the using of BKash everyday gambler transfer money from one place to another
place which is a real concern for our country.

Opportunity:
 The organization can continuously have a great upcoming with its well-trained human
resource.
 Online shopping is getting popular in Bangladesh and many new e-commerce
businesses are starting their journey so if the company can offer a transaction system
for online shopping, which could be a way of earning big profits.
 New product development.
 Since the company has joint ventures with two major foreign money transfer firms,
BKash could provide more comprehensive international transaction services.
 New product development.
 Increase the transaction limit.
 To create customer awareness by advertisement.
 Use up-to-date technology.
 Upgrade of customer services in the surrounding region.
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 Giving short-term loans to the customers.

 Opening ATM booths in less developed areas.
 Hassles free and traditional bill payments system.

Threats:
 Some other banks in Bangladesh are starting MFS service with some additional
features. If the company can’t take the necessary steps to defend the competition, then
it will have a threat of losing market share.
 High competition of price than others.
 Easy loan system and additional options current in the market such as credit cards.
 Hacking, fraud, and abuse of the service.
 The legal allegation concerning money laundering, financing criminal activities.
 A sudden change of rules, regulations, conditions, and taxation policies.
 Corruption of the government and the authority.

The competitive advantage of BKash

More than 70% of the population of Bangladesh lives in rural areas where formal financial
services are difficult to access. Yet these people need this kind of service the most. To get
funds from loved ones far away. Less than 15% of Bangladeshis are connected to the formal
banking system while more than 68% have mobile phones. BRAC is one of the largest NGOs
in the world. BRAC NGO is a safe and convenient means for the people to transfer money
from town to village. So they came up with the idea of mobile banking. Several mobile
banking services have emerged over the years. BRAC holds the brand image that consumers
think. Because of this, they have captured a high market share. BKash Limited is a subsidiary
of BRAC Bank. It was started as a joint venture between BRAC Bank Limited, Bangladesh,
and Money in Motion LLC, USA. The ultimate goal of development is to ensure access to a
wide range of financial services for the people of Bangladesh. It has a special role to play in
serving the low-income people of the country. Mobile banking is a suitable platform for
Bangladesh. Mobile banking provides efficient and low-cost financial services to the bank-
less population in most parts of the country. BKash mobile network has many partners such
as Robi, Grameenphone, Banglalink, and Airtel. It has a total of 30,000 agents across the
country and Bangladesh still has the largest number of agents. BKash is leading this market
with around 71% of the market share. The maximum daily transaction amount of BKash is
Rs. 1,25,000 and the maximum monthly transaction limit is Rs. 2,50,000. By now, BKash is
the most visible mobile bank in Bangladesh. It has been widely advertised since the
beginning. Such as TV commercials, radio commercials, billboards, posters, festoons,
leaflets, shop pointers, etc. If they maintain their services effectively. Again, if they don’t
have new strong entrants into the industry. Then BKash will be able to maintain its
competitive advantage for a long time.
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Conclusions
In conclusion, we have understood how to do an analysis of a company.

Findings
Findings from the project is given below:
1. General & External environment of a company.
2. Major stakeholder identifying process.
3. SWOT analysis of a company.
4. Companies Internal and external Factors.
5. Competitive environment strategies.

References
1) https://www.BKash.com/about/company-profile
2) https://www.tbsnews.net/economy/how-mobile-phone-and-BKash-revolutionised-
financial-transaction-392218
3) https://www.thedailystar.net/the-story-of-BKash-21235
4) https://www.prothomalo.com/topic/%E0%A6%AC%E0%A6%BF
%E0%A6%95%E0%A6%BE%E0%A6%B6
5) https://www.youtube.com/watch?v=XVA17Pt7JTA&t=353s
6) https://www.youtube.com/watch?v=bSPffzB__l4
7) https://www.BKash.com/%E0%A6%AB%E0%A7%8D%E0%A6%B0%E0%A6%BF
%E0%A6%B2%E0%A7%8D%E0%A6%AF%E0%A6%BE
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%E0%A6%82%E0%A7%9F%E0%A7%87%E0%A6%B0-%E0%A6%9F
%E0%A6%BE%E0%A6%95%E0%A6%BE-%E0%A6%AA
%E0%A7%87%E0%A6%93%E0%A6%A8%E0%A6%BF%E0%A7%9F
%E0%A6%BE%E0%A6%B0-
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%E0%A6%BF%E0%A6%95%E0%A6%BE%E0%A6%B6-%E0%A6%8F-
%E0%A6%9F%E0%A7%8D%E0%A6%B0%E0%A6%BE
%E0%A6%A8%E0%A7%8D%E0%A6%B8%E0%A6%AB%E0%A6%BE
%E0%A6%B0-%E0%A6%95%E0%A6%B0%E0%A7%81%E0%A6%A8-
%E0%A6%B8%E0%A7%81%E0%A6%AA%E0%A6%BE%E0%A6%B0-
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