Bangladesh University of Professionals

Term Paper on
Decision Making
Course Title: Principles of Management

Course Code: ALD-1102

Submitted By

Name ID
Abrar Amir Hussain 2225171023
Sadia Srabonti Khan 2225171079
Fariha Aheer 2225171157
Ammar Yousuf 2225171163
Ahnaf Ali 2225171167
Ubada Ahnaf 2225171053
Fowzia Afrin Nahin 2225171151

Batch: 2022

Section: A

SUPERVISOR
Masuma Binte Yousuf

Lecturer

Department of Management

Bangladesh University of Professionals

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 LETTER OF TRANSMITTAL

The Course Instructor Date: 03/11/2022

Masuma Binte Yousuf
Principles Of Management
Faculty of Business Studies
Bangladesh University of Professionals
Mirpur Cantonment, Dhaka - 1216.

Subject: Term Paper on Decision Making

Dear Ma’am,
We are pleased to submit the term paper on “Decision Making” of DARAZ Bangladesh under
the course, Principles of Management. This letter marks the submission of our term paper.

Although we are still on the learning curve, this report has enabled us to gain insight into the
core factors of decision-making. Therefore it has become an incredibly challenging and
interesting experience. Thank you for your supportive consideration in formulating the idea.
We hope you acknowledge our effort, dedication, and devotion toward this paper. However,
we understand that our work is not perfect, thus, we welcome any and all criticism you have
of our work.

Sincerely yours,

Abrar Amir Hussain (2225171023)

Fariha Aheer (2225171157)
Sadia Srabonti Khan (2225171079)
Ammar Yousuf (2225171163)
Ahnaf Ali (2225171167)
Fowzia Afrin Nahin (2225171151)
Ubada Ahnaf (2225171053)

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 DECLARATION OF AUTHORSHIP

We hereby declare that the term paper on Decision Making of DARAZ Bangladesh is entirely
our own and is the outcome of our diligent work under the supervision of our Course
instructor, Masuma Binte Yousuf. The paper has been presented to the Faculty of Business
Studies, Department of Business Administration in Marketing, at Bangladesh University of
Professionals. This report counts towards a partial accomplishment of the 1st-semester Final
Examination 2022 for the course of Principles of Management (ALD 1102).

We further declare that the work projected in this report has not been previously submitted in
this or any other institute

Place: Mirpur Cantonment, Dhaka

Date: 03/11/22.

Abrar Amir Hussain Fariha Aheer Sadia Srabonti Khan Ammar Yousuf

Signature Signature Signature Signature

Ahnaf Ali Fowzia Afrin Nahin Ubada Ahnaf

Signature Signature Signature

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 ACKNOWLEDGEMENT

We would like to start by giving thanks to our Lord for giving us the wisdom and health
necessary to finish this term paper. In order to make this paper as good as it possibly could
be, we had to approach and seek the assistance of numerous sources and people. We would
like to thank Masuma Binte Yousuf ma’am, for allowing us to venture into the world of how
DARAZ Bangladesh makes its decisions. We, as a group, are happy to have discovered so
much information and data on this subject, which has also allowed us to further our own
intellectual development. We also want to express our gratitude to the wonderful students and
those who have provided us with their insightful opinions on this matter.

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 EXECUTIVE SUMMARY

Decision is dubbed as a choice among two or more alternatives. But it is more than that.
Because decision-making is (and should be) a process, not just a simple act of choosing
among alternatives. This process is as relevant to personal decisions as it is to corporate
decisions. Every decision begins with a problem, with a discrepancy between the situation as
it is and the one that is sought. Once a problem has been discovered, a manager must
determine the decision criteria that are crucial or pertinent to solve the issue. (Martocchio et
al., 2017, 82) A decision should be made following these steps.

In this study, we are going to portray how DARAZ, a global online marketplace with
e-commerce stores in Pakistan, Bangladesh, Nepal, Sri Lanka, and Myanmar, makes its
decision based on our interview with its CFO in Bangladesh, Md. Mahbub Hasan. He has
provided us with significant information with which we have completed this study.

DARAZ Bangladesh is the pioneer of the E-commerce industry in Bangladesh which has
brought a new era in the electronic shopping trend. It has opened so many opportunities for
business along with new trends for the customers. Despite having a lot of external
environmental factors forcing it downward, DARAZ is continuously growing its market share
throughout the country. We have focused our term paper on the decision-making process of
DARAZ Bangladesh. The way they face challenges in any kind of decision and their
approaches to major decision-making policy are discussed here. The types of
decision-making policies they follow, their response to negative consequences, recruitment
process, decision-making biases, programmed and non-programmed decisions, strategies to
develop sales, etc. all these prospects are discussed here. We have tried to reflect on our
thoughts and recommend some advice that could add value to their service and enhance them.

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 TABLE OF CONTENTS

LETTER OF TRANSMITTAL 2
DECLARATION OF AUTHORSHIP 3
ACKNOWLEDGEMENT 4
EXECUTIVE SUMMARY 5
TABLE OF CONTENTS 6
LIST OF TABLES/ILLUSTRATIONS/FIGURES 8
LIST OF ACRONYMS 9
1.0 INTRODUCTION 10
1.1 Background: 11
1.2 Purpose: 11
1.3 Data Collection: 11
1.4 Scope: 11
1.5 INTERNAL ANALYSIS 13
1.6 SWOT ANALYSIS 13
2.0 AN OVERVIEW OF DARAZ 16
2.1 History Of Daraz 16
2.2 HR Policy Of Daraz 16
2.3 Daraz’s Closest Competitors 17
2.4 Daraz Bangladesh Hierarchy Organogram 19
2.5 Employees Of Daraz 19
2.6 Main Offices Of Daraz 22
2.7 Introduction to all the departments 23
2.8 Daraz HR Team Growth 24
2.9 Comments On The Organizational Structure Of Daraz 24
3.0 METHODOLOGIES 26
4.0 DECISION-MAKING PROCESSES 27
4.1 What type of decision-making process does Daraz follow? 27
4.2 Daraz Future Leadership Program: 27
18 Months Overview 28
Perks of Program: 29
What Does It Take To Be A DFLP? 29
4.3 Guide To Getting Hired: 29
Where Will You Be Adding Value? 30
4.4 How does Daraz handle a situation if they make a wrong decision? 31

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 4.5 How does Daraz manage to offer the best prices in Bangladesh? 31
4.6 Daraz’s Policy Regarding Replacement & Refund of Products: 32
4.7 Programmed Decisions: 32
4.8 Non-Programmed Decisions: 32
4.9 Decision-Making Biases: 33
4.10 Decisions Regarding Increasing the Market Share of Daraz: 33
4.11 Digital commerce and Advertising strategies followed by Daraz: 33
4.12 Social marketing strategies followed by Daraz 36
5.0 LIMITATIONS 38
6.0 RECOMMENDATION AND FUTURE CHALLENGES 39
7.0 CONCLUSION 42
8.0 REFERENCES 43

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LIST OF TABLES/ILLUSTRATIONS/FIGURES

Illustration Name Page

Daraz Group Organogram 17

Employees of Daraz 18

Daraz Offer 19

Main Offices of Daraz 20

HR Team Growth 22

Group members Interviewing CFO 23

DFLP overview 27

Perks of DFLP 28

Key Skills 28

Value in applying 29

5Ms of Daraz 32

Group Members with CFO 38

Group Members 39

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 1.0 INTRODUCTION
Decision-making is important in our everyday life. Starting from the decisions regarding the
basic works to an organization’s decision regarding a specific goal, different processes are
followed to reach a final decision. A key to success in management and our career is knowing
how to be an effective problem-solver.

E-commerce has grown well and is present in Bangladesh with hundreds of online stores
offering products of different categories. The rapid growth of mobile phones and the
penetration of 3G broadband, affordable smartphones (such as Infinix and Symphony), and
easily accessible mobile internet are driving this increase in e-commerce.

The largest local e-commerce platform in Bangladesh, daraz.com.bd, has been successfully
running its online store for more than 4 years now. The secret to its success is the business
model on which Daraz is based. Daraz is more than just an online shopping mall; it's a means
of bringing sellers and customers together - it's an online marketplace.

History:
DARAZ began as a fashion retailer in Pakistan in 2012 but transitioned to a general
marketplace strategy and business model in 2015 when it expanded into Bangladesh and
Myanmar. DARAZ, which was founded in 2012, is South Asia's leading online shopping
marketplace, with a presence in Pakistan, Bangladesh, Sri Lanka, Myanmar, and Nepal.
DARAZ, which has 30,000 sellers and 500 brands and serves 5 million consumers across the
region, is supported by a wide range of tailored marketing, data, and service solutions.
DARAZ currently offers over 2.5 million products and is rapidly expanding.

Vision:
The vision For DARAZ Bangladesh is “To be the number one marketplace by offering top
quality services to all of our sellers and customers”.

Mission:
The mission of DARAZ is: To spread all over Bangladesh and gain the highest market share
in the e-commerce sector, make all the necessities available to customers and find the best
sellers around the country to showcase their products on the DARAZ website.

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1.1 Background:

We decided to study the decision-making process of an organization. Hence we chose Daraz

Bangladesh as our research center and tried to understand their regulations of
decision-making policy. In a workplace-relevant context, decision-making is basically the
process that lets staff decide between courses of action in order to maximize the probability
of a desirable outcome. Employees with exceptional decision-making ability will thoroughly
analyze the information presented to them, identify multiple effective courses of action, and
decide upon the best available option. This ensures that staff can be relied upon to make
decisions autonomously, allowing managers and more senior staff to focus on their tasks and
objectives without needing to micromanage or excessively supervise. The recruitment
process, investment policy, chain of command, sales, etc. all depend on the decision-making
ways. Daraz Bangladesh also conducts its decisions in similar ways.

1.2 Purpose:

The decision-making process that we have learned in our management course; how that
impacts our personal and professional life and how we can implement them in real-life
scenarios is the main purpose of the study. Another purpose of the study is the completion of
the semester. We tried to get an insight into how these things are managed at the workplace
by collecting data primarily from Daraz.

1.3 Data Collection:

Primary and secondary data is the major source of information in this study. All information
was gathered through online research, from books, articles by well-known writers, and
numerous reputable websites.

1.4 Scope:

We had the opportunity to have a conversation with the CFO of Daraz, Mr. Md. Mahbub
Hasan, about the insights of the company regarding the decision-making process at Daraz. He
gave an overall view of the decision-making policy of all the departments.

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1.5 INTERNAL ANALYSIS

Many internal factors influence e-commerce businesses in Bangladesh. Here we have tried
focusing on some of the key factors that directly affect DARAZ:

1.6 SWOT ANALYSIS

The business environment can be analyzed using different tools. One of them is a SWOT
analysis. It works with four different types of environments. These are the organization's
strengths, weaknesses, opportunities, and threats.

SWOT Analysis

1. Strengths:

● Best website among competitors:

DARAZ Bangladesh has the best website among its competitors like pickaboo.com,
clickbd.com, and bagdoom.com
● All new products:
All new products are sold here. DARAZ Bangladesh does not sell any used or
refurbished products.
● Deals with famous brands:
DARAZ Bangladesh is very popular when it comes to offering deals from different
famous brands like Samsung, Bata, and Apex.
● Brand warranty:
Many brands offer authorized warranties to customers purchasing from DARAZ
Bangladesh.
● Fast delivery:
Delivery among customers nationwide in three days.
● Strong cooperation between departments:
DARAZ Bangladesh has very close cooperation between departments. Like delivery
to the content department, they communicated quickly and resolved issues.

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● Easy and Free Registration:
Sellers registering with DARAZ Bangladesh is completely free and easy.
● Delivery to all of Bangladesh:
DARAZ Bangladesh delivers its products all over Bangladesh regardless of city or
town.

2. Weaknesses

● High turnover rate:

DARAZ Bangladesh's turnover rate is high due to low career development
opportunities and low salary scale.
● Low brand awareness:
Many people don't know the brand name DARAZ Bangladesh. They mainly know
bikroy.com or ekhanei.com.
● No refunds for specific products:
In some products like books, and some clothes they do not refund.
● DARAZ focuses solely on online marketing. The company is expected to focus on
ATL marketing and BTL advertising.

3. Opportunities

● Emerging online market:

The online market in our country is still an emerging market with great potential.
● Receiving orders from outside Bangladesh:
DARAZ Bangladesh can take orders directly from outside Bangladesh and deliver
them to destinations inside Bangladesh like UpoharBD.com.
● Gift delivery service:
DARAZ Bangladesh also can take orders for gifts such as cakes or 4,444 cards or
flowers.
● Expedited Delivery:
They don't currently offer rush delivery like same-day delivery, but they can be
customized to your needs.

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4. Threats

● Incoming Native Competitors:

Upcoming Native Competitors may pose a significant threat. There are as many
competitors.
● International Giants:
International giants like Amazon or eBay can come to our market and take over it if
DARAZ Bangladesh can't impose itself on the market.
● Political instability:
Bangladesh is a country with an unstable political history. So political incidents can
sometimes harm business.
● Low Internet Availability:
As a third-world country, the Internet is not yet widely available throughout our
country, so DARAZ Bangladesh is still not accessible to a large number of potential
markets.

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 2.0 AN OVERVIEW OF DARAZ
Daraz is an online marketplace where vendors sell their wares to customers online. Daraz is
comparable to a physical shopping mall, with the difference being that you must visit
numerous shops located on multiple floors in a physical mall to buy different products. and
on the Daraz website, you can click to browse different e-stores for a variety of goods.
Some of Daraz's rivals are working hard to gain a foothold in this expanding economic
field, just like the company.

2.1 History Of Daraz

Daraz was incubated by Rocket Internet (RI), a company based in Berlin, which provided the
initial angel investment and oversaw the business performance. RI, the world’s largest
incubator of internet companies, invested in internet start-ups in newly emerging and
fast-growing markets and transferred proven business models there. Daraz.pk, the first
e-commerce shopping portal in Pakistan, was launched by RI in 2012 with just five
employees. RI and its two primary incubator investors, Oredoo.com and CDC Global (a UK
government investment Bank), had equal percentage ownership of Daraz. It started as an
online fashion retailer selling apparel (clothes, footwear, and accessories) from the inventory
it owned. (Jat, 2019, 24)

2.2 HR Policy Of Daraz

Well-defined HR policies are an essential aspect of any organization because they provide
clarity and structure. Learning about some of the common policies can help you assist your
HR department in developing rules that can guide employee conduct.

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2.3 Daraz’s Closest Competitors

Bagdoom and Pikaboo are directly competing with Daraz Bangladesh, according to Ryan
Clements, Head of Operation of Daraz Bangladesh Ajker Deal. On the other hand, Ekhanei,
Rokomari, ClickBD, Akhoni, Bikroy, and a portion of the other prevalent internet business
sites that are likewise getting to be distinctly prominent are the indirect competitor of Daraz
Bangladesh. Some of the major competitors of Daraz Bangladesh are -

1. Bagdoom.com: Bagdoom is one of the most prominent online-based companies in

Bangladesh. They are an immediate contender to Daraz Bangladesh. They nearly
get a similar number of requests per day in terms of the order. Recently they are
running marketing campaign and sourcing different types of products to bid Daraz
Bangladesh.

2. Pickaboo.com: Pickaboo is a foreign online classified who are working in

Bangladesh since mid-2015. Pickaboo site can be utilized through web and versatile
applications. Pickaboo permits its clients to post audits on their items which are
expanding their credibility too. Pikaboo This stage is for the most part concentrating
on hardware brands of Bangladesh. As another comer they as of now snatch client's
consideration.

3. Ekhanei.com: Ekhanei.com is a free classified online advertisement website.

Ekhanei is another initiative by Grameenphone Limited which is giving a
portable-based internet purchasing and offering stage. They are likewise creating
income through ad gushing.

4. Bikroy.com: Bikroy.com is another online store that is likewise giving a stage to

Bangladeshi individuals to purchase and offer items for a good deal. Their
customers get a chance to put their offerings for a fee which gives them a huge
customer database regularly.

5. ClickBD: ClickBD is the main online business site of Bangladesh which began its
adventure in 2005. ClickBD is generally utilized as a second-hand item offering

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 site. ClickBD now has more than 25 online stores alongside its arranged to give its
clients an extensive variety of item decisions.

6. AjkerDeal: AjkerDeal is a standout amongst the most eminent online shops in

Bangladesh. AjkerDeal highlights a day-by-day bargain at a top-notch cost on the
best stuff keeping in mind the end goal to settle on the best shopping choices. This is
an arrangement and rebate site where purchasers can discover all the appealing
markdown offers and extraordinary arrangements of the nation in one place. This is
the biggest nearby online stage they are really e-narrows show. This site
fundamentally begins their trip to deal with distinctive sorts of arrangements.
Presently they use to have around 1000 net requests every day.

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 2.4 Daraz Bangladesh Hierarchy Organogram

From the beginning of the journey in 2015, Daraz Bangladesh has grown a lot since then. For
the last two years, the company has expanded a lot. Recently 19 hubs outside of Dhaka city
have been established as well as increasing the number of offices inside Dhaka city. Daraz
also welcomed a lot of sellers onboard since they came to Bangladesh. As the operations are
growing, the organogram is also becoming complex. A simple hierarchy description is shown
in the figure below:

2.5 Employees Of Daraz

Daraz has 2000+ employees. They are growing every year. They do their delivery through a
third party. They have delivery companies associated with them. Such as: Sundarban
Poribahan, Pathao, bidyut, 5 star etc. They have also established 19 hubs outside Dhaka.
Daraz Bangladesh has hired more than 400 customer and partner support executives to
prepare for the company's one-day sale campaign "Eleven Eleven (11.11)". The new batch of
executives has boosted the pipeline of Daraz's Customer Service and Partner Support Centre
units, read a press release. The units, also referred to as "Delight Squad," have received
extensive training to ensure they can provide instant support across all channels and the
utmost comfort to the customers and sellers throughout the sale period. The 11-11 campaign

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will begin on 11 November and will be active for only 24 hours. The employees have also
been equipped with all the necessary information to promptly respond to queries and log
complaints whenever necessary to streamline the channels. The Issue Resolution Team is
similarly decked up with the necessary resources to cater to customer and seller issues at total
capacity. "We are leaving no stones unturned to deliver our customers and sellers with the
best possible service throughout our signature sale campaign. By hiring more members, we
are working towards ensuring hassle-free deliveries, prompt complaint resolution, and overall
top-notch service," said Farhana Rafiq Uzzaman, chief customer officer of Daraz. During the
campaign period, Daraz's smart
chatbot "Daz" will also remain on
standby with all its features to
support customers with all the
information regarding the 11.11
Campaign, tractions, and
prepayment offers.

11.11 Sale:
Daraz 11.11 vouchers this year in this mega 11.11 sale which is around the corner and the
preparations to bring mega savings and discounts to online shoppers in Bangladesh are at an
all-time high. Daraz 11.11 sale isn’t just another online sale but a mega shopping festival
where you can get discounts, coin discounts earn rewards, Daraz 11.11 vouchers, participate
in giveaways and so much more. It is all about saving immensely and making the most of it.
So, for this year’s 11.11, they are here with better-than-ever offers.

11 Taka Mystery Box:

The most vibed spotlight is placed on this well-known deal to show you the top-rated
products from automotive & motorbike, mobile, appliances, and other categories. The whole
campaign timeline will be covered with different time-lapses to make sure the availability of
highly demanded 11 taka products.

Shake Shake:
11.11 campaign will be about shake shake again which can never be forgotten yet. This app
feature will be the reason for unlimited discounts. And the probability of acquiring the

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maximum amount of vouchers never happened in the e-commerce history of Daraz before.
So, to want more, shake more.

Surprise Voucher:
Surprise vouchers are back again to convert happiness into double. So, be prepared to acquire
the most demanded surprise vouchers through the Daraz app. These amazing vouchers are
only applicable for the 11.11 campaign days.

Prepayment Discount:
For every campaign, the bKash cashback offer is a must now. Again, in a mega sale
campaign, shopping excitement can never be paused as Daraz 11.11 sale campaign is
resuming an exciting bKash cashback discount offer to boost online shopping simultaneously.

Exclusive Vouchers:
Through the Daraz app, it will be easy enough to avail of different types of discount
vouchers. And in the biggest
campaign like the 11.11 sale,
mega vouchers, surprise
vouchers, and other 11.11
vouchers can definitely put a
smile on faces. However,
happiness will come true with
flash sales and many more
offers.

Mega Deals:
Beautiful experiences can happen also in online shopping if you catch the astounding mega
deals on time. Even no customer will want to miss the chance to color necessary shopping in
this campaign. And the point you can note.

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2.6 Main Offices Of Daraz

The main office is located at Asfia Tower, 11th Floor, House 76, Road 11, Block C, Banani,
Dhaka-1213, Bangladesh. Although it has its pick-up point in every district, the main offices
are listed below.

Daraz Collection Point Lists At a Glance:

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2.7 Introduction to all the departments

The country’s largest online marketplace Daraz has been recognized as the most loved
e-commerce brand of Bangladesh and the 13th most valued brand of 2021. Daraz received
recognition in the e-commerce category at the 13th edition of the Best Brand Award held at
Le Méridien in the capital on 29 December. Daraz has a total of 11 departments to work on.
From groceries to healthcare and beauty products to fashion, the variety of attractive
discounts being offered is the perfect chance to buy daily essentials. Daraz Group will invest
Tk1,000 crore in Bangladesh in the next three-four years, said Daraz CEO and
founder Bjarke Mikkelsen on Aug 25, 2022 “We continue to invest in building e-commerce
infrastructure and ecosystem in Bangladesh.”
1. Commercial Department head - Sabbir Hossain.
2. Operations Department head – Khandakar Tashfin Alam.
3. Corporate Affairs department head - Hasin-ul-Kuddus.
4. Finance Department head - Md. Mahbub Hasan.
5. Human Resources Department head - Riyad Hossain.
6. Admin Department head -Mostofa Zaman Khan.
7. Customer Service department head -Farhana Rafiquzzaman.
8. Traffic Operations Department head -Nobin Hossain.
9. Strategic department head - Md.Ishtiaq.
10. Marketing Department head - Md.Tashdin Hasan.
11. Business Development Department head - Sazzad Ali.

The E-commerce organogram is very different than many other companies. As many things
are managed online and software, a lot of processes are automated.

Here is the organogram of Daraz:

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 With Daraz's adherence to international quality standards and product authenticity, effective
delivery system, various payment systems, and easy return policy, customers now have
access to the best brands from the convenience of their own homes.
Those who shop on Daraz can benefit from Flash sales, 10% prepayment discounts, bKash
cash back, and up to Tk 12,000 discounts on mega deals, vouchers, and other special offers.
What further makes Daraz the best platform to get all essentials this season is their Weekend
Wonder (Fridays and Saturdays). During these two days, specific brands including Godrej,
Garnier, Unilever, Nestle, Khaas Food, RB, and PRAN will be offering a 5% collectible
voucher, up to 58% discount, and 10% bKash cashback. These discounts make shopping for
groceries, beauty, and healthcare products both convenient and cost-effective. 

2.8 Daraz HR Team Growth

The bar chart illustrates the growth of the Daraz HR team. If we analyze the chart, we can
clearly see that the HR team is growing day by day and now it is holding a stable position.
This indicates the successful HR policy that Daraz follows to maintain its hold in the market.

2.9 Comments On The Organizational Structure Of Daraz

Online marketplace structure: Daraz Bangladesh’s marketplace structure is similar to
the multi-channel marketplace model. Daraz is not basically selling its own product rather
it is operating as an intermediary and selling products of other vendors or sellers. In return

22
Daraz is charging for the transaction it is creating between the seller and the customer.
Market Segment: Daraz has a wide range of target customers and it mainly focuses
on customers who are willing to buy products and services form online. The target
customer segment of Daraz can be divided into these categories:
Age group: The customer consists of a group of people between the age of 20 and 45 years.

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 3.0 METHODOLOGIES

● At first, we went to the information desk of Daraz and took an appointment with the
CFO of Daraz Bangladesh, Mr. Md. Mahbub Hasan.

● We had an hour-long meeting with the CFO and got many of our inquiries answered
by him. We got to know about their chain of command and how it works in terms of
decision-making.

● Different policies they adopt for programmed and non-programmed problems were
discussed.

● We also collected different secondary data from various online sources.

● There are mainly 11 departments in Daraz. They are:

1. Commercial department
2. Operations department
3. Finance department
4. Human Resource department
5. Admin department
6. Corporate Affairs department
7. Customer Service department
8. Traffic Operations department
9. Strategic department
10. Marketing department
11. Business Development department

● Even though there were 11 departments, we could only get in touch with the CFO of
Daraz and get an overall view of all the departments and their methods regarding
decision-making processes.

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 4.0 DECISION-MAKING PROCESSES

4.1 What type of decision-making process does Daraz follow?

Daraz follows an apex decision-making process which is a top to down approach. They
maintain a proper hierarchy and follow the chain of command according to that.
Daraz is operational in five countries. They are- Bangladesh, Pakistan, Sri Lanka, Myanmar,
and Nepal. The budget allocation decision of each country is made by their regional team.

● Recruitment Process: At the start of the year, a proper budget is allocated for the
recruitment process by the heads of each department. They also determine the number
of employees based on their qualifications that will be hired. Each department head
decides how many employees need to be recruited in that particular department. The
budget allocation for recruitment of different departments as decided by the
department heads is different for every department. Any new recruitment by the
departments needs the approval of the managing director. In case of the replacement
of an employee, the approval of the managing director is not needed. On the other
hand, intern and contractual employee recruitment are done by the department heads.

4.2 Daraz Future Leadership Program:

The DFLP program is an 18-month program that will prepare you to be our next leader.
Throughout the three six-month rotations, you will be given opportunities that will help you
grow to your full potential and drive business results. Your industry knowledge and
leadership abilities will be accelerated by intensive coaching. (Hasan, 2021)

The Objective of DFLP:

The goal of this program is straightforward: "transform our DFLPs (Management Trainees)
into leaders in 18 months." This entails providing them with all of the space they require to
thrive in their future management roles. This includes exposing them to difficult projects,
extensive onboarding, external/internal training, top management coaching, departmental
rotations, and monthly outings.

25
Daraz has taken the initiative to develop future business leaders. This leading online platform
in Bangladesh created the program to assist its participants in becoming the next leaders by
providing opportunities to demonstrate their abilities and pursue their full growth potential.

What You Will be Taught:

● E-Commerce: Learn everything there is to know about e-commerce and become a

market expert by learning from our industry's pioneers.

● Project management: Entails overseeing projects across multiple departments.

● Local & Global: Develop your leadership skills by making decisions both locally and
globally. Work directly with our department heads and CEOs by leading strategic
projects.

● Leadership Skills: Develop your leadership abilities through on-the-job training,

coaching, and mentoring.

18 Months Overview

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Perks of Program:

What Does It Take To Be A DFLP?

4.3 Guide To Getting Hired:

Step 1. Online Application:

You will be required to complete a form with your personal information, record a video, and
select the job function that most closely aligns with your interests and professional goals.

27
Step 2: Pre-Assessment:
Take our online assessment tests to assist us in determining your personality and mental
capacity.

Step 3: Assessment Center:

If you feel that your values align with those of our company and that you are a good fit, we
will invite you to participate in a case study competition where your approach and
competency will be evaluated.

Step 4: Interviews With the Management:

You will be invited to an interview with the management at this point in the talent acquisition
process to determine whether you can become one of Daraz's future leaders. (Hasan, 2021)

Where Will You Be Adding Value?

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4.4 How does Daraz handle a situation if they make a wrong decision?

If a certain decision or planning does not bring desirable results, the authority opts for a
backup plan and the final decision comes from the higher officials. As a business
organization, they are mostly prepared for both positive and negative consequences of a
project. If they make a wrong decision, the higher authority steps in and they take a new
decision according to their backup plan and formulate strategies according to the requirement
of the plan. After the decision has been taken, proper guidelines are given out to the different
departments to cope with the situation.

4.5 How does Daraz manage to offer the best prices in Bangladesh?

The seller determines the prices on Daraz. Therefore, we must appreciate the conditions
conducive to competitive pricing that are available to sellers on the Daraz platform if we are
to comprehend how pricing works in favor of both the seller and the customer.

The Daraz business model has 4 advantages that directly influence pricing on the website:
1. On Daraz, sellers can sell their products without paying the overhead expenses of a
physical store. That enables them to sell products at lower margins and raise prices
appropriately.
2. Every month, Daraz receives millions of visitors to its platform. As a result, local
sellers will experience tremendous growth and increased visibility/publicity. Sellers
gain access to Daraz's brand power and reach when they sell their products there.
3. On Daraz, many items are sold by
numerous Sellers. Pricing competition is
encouraged as a result. Daraz offers
consumers solutions with competitive
prices because sellers are in direct
competition with one another.
4. Daraz offers data on sales analytics and
other products to help vendors improve
their offerings and pricing.

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4.6 Daraz’s Policy Regarding Replacement & Refund of Products:

● No product under the value of 300 tk is replaced.

● Please submit a return request through the Daraz app or website if your product is
flawed, incorrect, damaged, or incomplete when it is delivered. Return requests must
be made within 14 days of the delivery date for DarazMall items and within 7 days for
non-DarazMall items.
● 3-4 wrong or bad quality products make Daraz cut off dealerships with the seller.
● Please confirm whether the product is covered under the seller warranty or brand
warranty before using the product or after the return period has expired. Please view
our Warranty Policy for more details on warranty claims.
● Refund from returns - Refunds from returns are processed after QC and the return of
your item to the warehouse (successful). Read our return policy to find out how to
return an item.
● Order cancellation refunds: After a successful order cancellation, a refund is
automatically initiated.
● Refunds for missed deliveries - The refund process begins once the product is
delivered to the seller. Please be aware that depending on the location of your
shipping address, this could take longer. Support for screen readers is active.

4.7 Programmed Decisions:

Daraz has a fixed matrix and SOP regarding decisions in all the departments. When a
problem occurs and the solutions are known, they follow the fixed matrix and SOP allocated
to different departments to deal with the situation.

4.8 Non-Programmed Decisions:

When a situation like Covid-19 arose, Daraz had to deal with the situation under the
guidelines of the higher authority along with government regulations. Daraz was among the
emergency service sector. So they had to continue their delivery services even during the
lockdown. To deal with the pandemic and to deal with the safety protocols, free masks, and
sanitary items were provided by Daraz’s higher authority to all the employees for 9 months.

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Though most of the businesses were in crisis, Daraz had the upper hand in selling high-end
products like mobile phones and laptops, chargers, trimmers, etc. Since the viable option to
people was Daraz, it gained trust and recognition among the mass audience. Even though the
pandemic was a dreadful event, Daraz could deal with it smoothly and effectively due to the
expertise of the decision-making ability of the higher officials. This helped Daraz to progress
forward.

4.9 Decision-Making Biases:

Daraz’s Human Resource Management Division doesn’t follow any kind of biases when it
comes to hiring employees. They are mostly focused on a person’s skills and abilities to
handle the workload. There is no specific ratio for men & women employees. Every kind of
bias like perception bias, ethnicity bias, similarity bias, etc. is overlooked by Daraz when it
comes to any decision-making process as Daraz has to deal with customers from all classes
and sectors.

4.10 Decisions Regarding Increasing the Market Share of Daraz:

● Daraz at times provides free delivery service to attract customers to purchase products
from them.
● Daraz comes up with different discounts and campaigns from time to time to boost
their sales. For example, in last year’s 11.11 sale, Daraz sold products worth Tk 450
crore during the campaign.
● The target Daraz should achieve in different campaigns is decided by higher officials
and proper instructions are given to all the employees to achieve the target.

4.11 Digital commerce and Advertising strategies followed by Daraz:

Selling products to customers is the main goal of any business. Customers must be aware of a
company's product and operations in order for it to be sold, and in order to influence them, a
company needs advertising and promotion. Additionally, digital advertising and commerce
are the only viable options. Six marketing communication strategies are currently being
adopted by Daraz as its mode of communication.

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● Advertising: The company uses advertising to reach out to geographically dispersed
buyers. Some are very expensive while others are run-down. Different types of
advertisements exist. It is done to raise brand recognition or to inform people about
the brand and whether Daraz's two should take place. The current advertising strategy
of Daraz aims to inform consumers about their ongoing transition from Kaymu to
Daraz. It has changed its target market to be the leading customer rather than Kaymu,
and it must establish itself as an organization with "100% accredited products."
● Mission: Building its deals is a key component of Daraz's mission. Regardless,
Daraz's ongoing goal is to inform its customers about the change in name from
Kaymu to Daraz.
● Money: Daraz is currently in the product life cycle's development phase. Because of
this, it already has a huge clientele. It has been undergoing forceful advancement
procedures in order to maintain its development and set itself apart from its
competitors. They are making a significant financial contribution to the publicity they
generate through commissions.
● Message: Daraz needs to convey to its customers that they offer "top-of-the-line
quality items at a reasonable cost."
● Media: They have chosen distinctive media] so as to stream their message, for
example, Television, Newspapers, Magazines, Social Media, and more.

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Direct Marketing: Daraz also uses direct marketing as one of its IMC tools to communicate
with its customers. In order to reach and deliver its services directly to its clients without the
use of any intermediaries, it uses client-direct (CD) channels intending to establish a
long-term relationship with them. Direct advertisers can reach their clients through a variety
of channels, and if Daraz were to use any of these channels, they would be as follows:
● Direct Mail: Daraz continuously notifies its related customers of any offers and
restrictions on the products they are offering. For the time being, regular postal mail is
sent to the client as an update during each Black Friday Sale.
● Catalog Marketing: Daraz operates the index promoting system on its website. The
site's inventory consists of 33 groups of items all trying to sell at least one item to the
beneficiary.
● Intuitive Marketing: Electronic communication and direct customer service are the
most modern and rapidly expanding channels, and Daraz is in an equally strong
position in this regard. Some of the primary Interactive Marketing classes that Daraz
employs are -

1. Websites: Daraz designed its website with constant nuances in mind. Its
website perfectly captures its goals, motivation, and history. It also manages to
be enticing enough to draw visitors back time and time again. The individual
pages are flawless, and the great use of color makes the messages clear.
Additionally, they have a chat room where customers can post questions, and
the business will respond within a day.
Regarding the following factors, the website is also simple to use: - The
webpage downloads quickly.
- The first page is uncomplicated.
- Exploring the various, quickly opening pages is not at all difficult.

2. Mobile applications: Daraz additionally has its versatile application possible

for both android just as IOS clients and contains indistinguishable highlights
from the site. The versatile application likewise pursues a similar idea of
inventory displaying.

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 3. Display Ads for Suppliers: Daraz has likewise been utilizing the idea of
showcase promotions where it puts the logos of their marked providers'
organization on their sites to get the certainty of the clients that their items are
100% real.

4.12 Social marketing strategies followed by Daraz

Social marketing strategies are different from other strategies of a firm. Normal marketing
strategies are used to sell the product and attract customers to buy the product but social
marketing strategies are used to engage customers with the brand and create a great
communication level with customers. Daraz uses social marketing strategies carefully. As we,
all know mobile phone apps are very popular in recent times daraz has apps in the play store
where buyers can get all the info and can make a purchase. Daraz uses Facebook, Twitter, and
YouTube as its social media platform. Here they interact with the customer and thousand of
customer quarry has answered. In addition, various offers on their page make customers
engage with the product. For example, daraz listed a new brand product and create a poll to
assume the price to the customer. If a customer gives the right answer they will get a discount
on that product. That is how smartly daraz uses social marketing day by day. Also, agent
marketing is where an agent can place an order on behalf of the actual customer and can get a
commission. Here daraz create a social network between agent and customer and their brand.
The social marketing process has five steps and here we will associate these steps with the
Daraz social marketing process.

Fan acquisition: it refers to involving your customer through social networks. Daraz here on
their Facebook page involve their customer as well as takes their opinion. Various attractive
offers have been given where the customer shows interest in their sites. 35 Here daraz
sometimes creates a contest and gives coupons to gather fans and attract them. In addition,
various product-related content has been shared to gather customer interest.

Engagement- the next step is engagement, which is the main part of the social marketing
process. Customers need to have some engagement with the brand where later it will create a
long-run relationship and trust with the brand. Daraz here share various photo and ask for

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opinions from their customer which is a very good way of engagement. In addition, they
create a contest where customers give answers to the questions and get engaged with the page
and social networking daraz.

Amplification- it refers to influencing new people to come to their page, like, and share the
content and the page. Here daraz can give content like a photo and ask a customer on the
page to share and get a discount so later the customer will share it to his Facebook ID. Then
his Facebook friend will see it on the homepage and may take part to like the daraz page and
that specific content. That is how daraz gathers new visitors and large the social network of
their brand.

Community- it refers to a place where a group of people shares their thoughts on a page that
they like already. It helps one community member to others, if any community member faces
any problem regarding Daraz, sometimes the Daraz admin doesn’t need to answer at all rather
their community member can give the answer and can give the solution. That is how the
community works.

Therefore, what Daraz is doing in terms of social marketing is referred to as Facebook

marketing. However, they promote themselves on youtube and other social media like Twitter
but Facebook is the main medium for them to communicate with people and get connected.
In Bangladesh most people nowadays use Facebook. Therefore, Daraz here uses its Facebook
page very creatively, involves fans, and shares content with them. So not only they are going
with the flow of globalization they are doing things smartly.

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 5.0 LIMITATIONS

We have tried our level best to make this report with extreme probable determination
and commitment but there are still some limitations of this report. They are -

1. Time constraint was the major limitation. Due to time constraints couldn’t able to
do deeper research. However, it was not enough to go more in detail and to learn
and develop knowledge about all the activities and operations of the department.

2. We were not able to direct more inside and out and meticulous investigation and
incorporate that in my report.

3. Due to working under the substance administration group, it was troublesome

for us to appropriately do our work and discover enough time to take in more
about the various departments of Daraz Bangladesh.

4. Couldn't give all the data of the organizations as there were obstructions of
organization strategy.

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 6.0 RECOMMENDATION AND FUTURE CHALLENGES

I have observed the business of Daraz Bangladesh and I would like to give some
recommendations. Just like other Rocket Ventures most of the marketing and operational
strategies are from Germany but culture and other socioeconomic components vary from
country to country. But they should start taking input from local venture heads and other
mid-level managers. In this competitive market, companies need to outperform other
companies and also set a standard that is not easily affected by any new ventures. So far, the
finding recommends that if a big and well-reputed company establishes in Bangladesh, there
is a very thin possibility for DARAZ to stop sales drop. To have a sustainable future, DARAZ
needs to create a loyal and happy customer base. The factors which are working as barriers to
DARAZ’s growth and sustainability and the recommended solutions are -

1. Firstly, they need to ensure their product quality. Even if they have a lower number of
sellers but the product quality is good customers will shop from them longer and will
not switch to other e-commerce sites easily. So, their products must be of good
quality, matching their company goal.

2. As they do not have their own delivery team, they are struggling to deliver faster or
more emergency deliveries. As this company has grown bigger with time. It is high
time for them to create a strong personal delivery team and better follow-up teams to
ensure timely deliveries. Customers buy online to save time. If that purpose is not
served it becomes pointless for them to shop from DARAZ.
3. After complaining and returning the default product, if customers will get prompt
service and the mistakes are alternated effectively there is a high chance that they will
repurchase. Most importantly, they will think that the company cares about their
problem and is always willing to fulfill their need. They will feel valued and will stay
with the company. And later will have positive feedback.
4. While choosing the pricing strategy, the company must keep in mind that its price
matches the current market prices. The price must be competitive enough to influence
customers to purchase products from DARAZ. If the price is high, there should be a
valid reason for it. Such as a good quality product may have a higher price. But then
again, the quality of the product must be ensured.

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5. Many customers have complained that they are unsatisfied with customer service.
That means they are not available, follow-ups are not done properly, replies are not as
prompt as expected and they do not have enough information about products or the
process to reply promptly about them. As I am a customer service agent, from my
own experience I can say that enough information about the products is not provided.
And product status is often not provided promptly by the outbound team of the
DARAZ supply chain. So, the service is delayed. A huge number of calls and queries
are received every day. So, the number of agents should be increased to ensure
effective and prompt service from the department.
6. Another way of sustaining the customer base is offering unique products and offers.
Offers must be one of a kind. So that customer will only think of shopping from
DARAZ as there is no alternative as such.
7. Lastly to save its sales drop if big companies start their operation in Bangladesh will
be good ties with their sellers and distribution channels (Delivery associates). And
customer’s reliability on the brand. For them ensuring high-quality service is a must.

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 7.0 CONCLUSION

Finally, we want to conclude that Daraz Bangladesh has a significant possibility to develop
and capture the largest possible share of the market. They ought to expand their operations in
tapped markets while searching for new opportunities in untapped ones. In this report, we
have attempted to think of the business strategy of Daraz Bangladesh alongside how they
attempt to draw in its clients utilizing a few online media. We have additionally interviewed
the honorable CFO to know their business strategy, some important insights, and how they
make decisions when uneven situations occur. Daraz Bangladesh is still growing and it has a
huge opportunity to improve more and more as they have potential and resources. In online
business, there is an immense open door in Bangladesh. Simply need to work legitimately
and guarantee clients fulfillment. This is a booming sector in Bangladesh and I personally
believe that Daraz Bangladesh will reach the apex of the online business sector very soon.

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