Report on

Seven Rings Cement

Course: Strategic Management

Course Instructor: M. Nazmul Amin, Ph.D

Date of Submission: 17.05.2024

Submitted by:

Name ID

Atteaf Haque 2035067690

 Letter of Transmittal

17th May 2024

M. Nazmul Amin, Ph.D

Department of Management

School of Business and Economics, North South University

Dear Sir,

This letter is regarding the submission of my report on “Seven Rings Cement” as part of your
strategic management course. The analysis, conducted with meticulous attention to detail, delves
into the complexities of Seven Rings Cement experiences in operating within the highly
competitive Bangladesh cement industry.

I would like to thank you for supervising and helping us throughout our whole course. This
course has given me the opportunity to learn many theories regarding strategic management
which will help me in our real life in context of Bangladesh.

I have found the experience of working towards the completion of this report to be both
challenging and interesting. I feel that the skills I have gained in working on this project in an
organizational context will be helpful for me in my career, and I am grateful to you for granting
us permission to work on this project.

Please feel free to contact me if you have any inquiries. I would be very happy to provide you
with any clarification regarding the project.

Sincerely yours,

Atteaf Haque
ID: 203 5067 690

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 Table of Contents

Introduction......................................................................................................................................4

External Analysis.............................................................................................................................5

Internal Analysis..............................................................................................................................10

Competitive Strategy and Implementation......................................................................................13

Recommendations.........................................................................................................................17

References......................................................................................................................................21

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1. Executive Summary:

Seven Rings Cement, established in 2002 and a subsidiary of the Shun Shing Group, has
emerged as a prominent force in Bangladesh's cement industry, lauded for its commitment to
quality, innovation, and sustainability. Operating within a conducive macroenvironment marked
by economic growth and regulatory stability, Seven Rings Cement holds a strong position
characterized by brand reputation, product excellence, and market presence.

The company's strategic initiatives, including innovation, efficient production processes, and
strategic partnerships, have bolstered its competitiveness. Despite facing challenges such as
intense competition and fluctuating raw material prices, Seven Rings Cement remains resilient,
investing in sustainable growth strategies to maintain its status as a key industry player.

To fortify its leadership position and ensure long-term success, Seven Rings Cement is advised
to pursue several strategic avenues. These include further investment in sustainable innovation to
align with environmental consciousness and regulatory demands, expansion into export markets
to diversify revenue streams, and enhancement of corporate social responsibility efforts to bolster
stakeholder relationships.

Moreover, opportunities lie in vertical integration to optimize the supply chain and market
segmentation to cater to diverse customer needs effectively. Investment in human capital through
training and development initiatives is also paramount for sustaining operational excellence and
driving customer satisfaction.

By embracing these recommendations, Seven Rings Cement can solidify its position in
Bangladesh's cement industry, navigating challenges while capitalizing on opportunities for
growth and differentiation. With a steadfast commitment to sustainable growth and value
creation, the company is poised to maintain its relevance and impact in the market for years to
come.

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2. Introduction

The cement sector in Bangladesh has seen remarkable expansion in recent decades, primarily
fueled by rapid urbanization, infrastructural progress, and heightened demand for construction
materials.
Emerging in the late 1980s, Bangladesh's cement industry has flourished, boasting numerous
local and multinational manufacturers today. These companies cater to the surging domestic
demand while also exporting to neighboring nations. Several factors drive this growth.
Government prioritization of infrastructure, encompassing roads, bridges, and buildings, has
spurred cement demand. Additionally, population growth and urbanization have fueled the real
estate sector, further stimulating cement consumption. Ample raw materials like limestone and
gypsum, combined with supportive government policies and investment incentives, have
attracted both local and foreign investors. Consequently, Bangladesh has achieved self-
sufficiency in cement production and even exports to countries like India, Nepal, and Myanmar.
The cement industry in Bangladesh is dominated by several major players, both local and
multinational, who have contributed significantly to the sector's growth and development. Some
of the key players include:

 Shah Cement Industries Ltd: Established in 2002, Shah Cement Industries is the
largest cement producing plant in Bangladesh. Known for its high-quality products
and innovative practices, Shah Cement has played a pivotal role in shaping the
industry's landscape.
 Bashundhara Cement: Bashundhara Cement is a subsidiary of the Bashundhara
Group. It is one of the largest cement companies in Bangladesh. Their cement is
widely used in both private and public construction, due to their premium quality.
 Crown Cement: Operating since 1994, Crown Cement is a part of the M. I. Cement
Factory Ltd., one of the leading cement manufacturing companies in Bangladesh.
Their cement is extensively used as building materials for construction in both public
and private projects.
 Lafarge Holcim Bangladesh Limited: Another multinational giant, Lafarge Holcim,
operates in Bangladesh through its subsidiary Lafarge Holcim Bangladesh Limited.
The company's cement brands, including Super Crete and Holcim Strong Structure,
are widely recognized for their quality and reliability.
 Premier Cement Mills Limited: Premier Cement Mills Limited is one of the leading
cement producers in Bangladesh. Known for its state-of-the-art manufacturing
facilities and extensive distribution network, Premier Cement has emerged as a key
player in the industry.

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  MIR Cement: Established in 2003, MIR Cement is one of the biggest cement
producing companies in Bangladesh. The company produces high grade cement and
is used for both private and public constructions. Their cement has been used in
Mirpur-Kalshi Flyover, Dhaka Elevated Expressway, Dhaka Medical College
Hospital, and more.
 Akij Cement: Operating since 2002, Akij Cement is one of the biggest cement
companies in Bangladesh. The company is known for producing reliable, high-grade
cement. The company’s annual cement production stands at around 3.35 million
Metric Tons of cement, which is one of the highest production rates in the country.
AND finally, my chosen company-

 Seven Rings Cement:

Seven Rings Cement is one of the largest cement producing companies in Bangladesh. Seven
Rings Cement is one of the prominent cement manufacturers in Bangladesh and has a relatively
short but impactful history in the industry. Established in 2002, Seven Rings Cement is a
subsidiary of the Shun Shing Group, a Hong Kong-based multinational company with diversified
business interests.
Seven Rings Cement entered the Bangladesh cement market with a vision to provide high-
quality cement products that meet international standards. The company quickly gained
recognition for its commitment to quality, innovation, and sustainability.
In 2009, Seven Rings Cement began production at its state-of-the-art cement plant in Kaligonj,
near Dhaka, equipped with modern technology and machinery. This plant has a production
capacity of 1.9 million tons per year, making it one of the largest cement plants in Bangladesh.
In the past few years cement industry in Bangladesh, like many others, faced supply chain
disruptions during the height of the pandemic, many constructions halted, and demand fell to the
bottom. Delays in raw material procurement, transportation bottlenecks, and labor shortages
affected production and distribution. Measures have been taken to address these challenges, such
as diversifying supply sources and improving logistics, adopting advanced technologies to
improve efficiency, reduce production costs, and enhance product quality. This includes
investments in automation, digitalization, and energy-efficient manufacturing processes.

3. External Analysis
An external analysis is a crucial component of strategic management, providing insights into the
external factors that influence an organization's performance and competitive position in the
market. This analysis encompasses various elements that help in understanding the external
environment in which the organization operates.

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The elements of an external analysis typically include:

 Macroenvironmental Factors: These are broad societal forces such as economic, political,
social, technological, environmental, and legal factors (often referred to as PESTEL
analysis) that impact the industry and market conditions.
 Industry Structure: Examines the competitive dynamics within a specific industry,
including factors like industry structure, rivalry among competitors, threat of new
entrants, bargaining power of buyers and suppliers, and the threat of substitute products
or services (Porter's Five Forces analysis).
 Competitor Analysis: Evaluates the strengths, weaknesses, strategies, and performance of
key competitors in the industry.
 KSF: an industry’s key success factors are those things that most affect industry
member’s ability to prosper in the marketplace.

Conducting an external analysis is essential for several reasons:

 Strategic Planning: It informs strategic decision-making by identifying opportunities to

capitalize on and threats to mitigate.
 Risk Management: Helps in anticipating and preparing for potential risks and
uncertainties in the external environment.
 Competitive Advantage: Provides insights into how the organization can differentiate
itself and gain a competitive edge in the market.
 Adaptation: Allows the organization to adapt and respond effectively to changes in the
external environment, thereby enhancing its resilience and sustainability.
In essence, external analysis serves as a foundation for developing strategies that align with the
external environment, enabling organizations to navigate challenges and capitalize on
opportunities for growth and success.

3.1 Macro environment analysis of Seven rings cement

Seven Rings Cement Ltd. operates within a dynamic macroenvironment influenced by various
factors. Analyzing these factors is crucial for understanding the industry's attractiveness from the
perspectives of both entrenched competitors and potential new entrants.

 Economic Factors: Bangladesh's robust economic growth drives demand for cement,
primarily fueled by infrastructure development and urbanization. Seven Rings Cement

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 Ltd. benefits from this growth through increased sales and revenue. However, economic
fluctuations can impact construction activities and, consequently, cement demand.

 Political and Legal Factors: The regulatory environment in Bangladesh affects cement
companies' operations, including compliance with environmental standards and land
acquisition laws. Political stability is essential for ensuring business continuity and
attracting investments. Regulatory compliance poses challenges but also creates entry
barriers for new competitors.

 Social and Cultural Factors: Population growth and urbanization trends drive demand for
housing and infrastructure, positively impacting cement consumption. Seven Rings
Cement Ltd. leverages these social dynamics to maintain its market position.
Additionally, changing consumer preferences towards sustainable construction materials
may influence product innovation and marketing strategies.

 Technological Factors: Technological advancements in cement production enhance

efficiency and reduce costs for entrenched competitors like Seven Rings Cement Ltd.
Innovation in eco-friendly cement production can also enhance market competitiveness.
However, adopting new technologies requires significant investments, posing challenges
for potential new entrants.
 Environmental Factors: Environmental regulations regarding emissions and waste
management impact production processes and product offerings. Seven Rings Cement
Ltd. invests in sustainable practices to mitigate environmental impact, enhancing its
brand reputation and market attractiveness. Compliance with these regulations poses
challenges but also creates opportunities for differentiation.
 Competitive Factors: Seven Rings Cement Ltd. faces competition from other established
players in the industry. Market share concentration and brand loyalty influence industry
attractiveness. Entrenched competitors focus on maintaining market share through cost
optimization and product differentiation. Potential new entrants face barriers such as high
capital requirements and the need to build brand recognition.

Overall Industry Attractiveness:

 For Entrenched Competitors: Seven Rings Cement Ltd. benefits from its established
market presence, brand reputation, and economies of scale. Cost optimization and
innovation are key strategies to maintain competitiveness. Building strong relationships
with stakeholders and investing in sustainable practices further enhance attractiveness.

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  For Potential New Entrants: Despite entry barriers, potential new entrants can capitalize
on niche opportunities, such as specialized cement products or innovative production
techniques. Building brand recognition and establishing distribution networks are critical
for gaining market share. However, navigating regulatory requirements and competing
with established players pose challenges.

Conclusion:

In conclusion, Seven Rings Cement Ltd. operates within a favorable macroenvironment shaped
by economic growth, regulatory stability, and evolving consumer preferences. While entrenched
competitors leverage their strengths to maintain market dominance, potential new entrants face
challenges but can capitalize on niche opportunities. Overall, Bangladesh's cement industry
remains attractive, offering growth prospects for both established players and new entrants
willing to navigate the competitive landscape.

3.2 Porter's Five Forces

Porter's Five Forces model offers a structured approach to industry analysis, aiding businesses in
assessing competitiveness and attractiveness. By examining factors like rivalry among
competitors, threat of new entrants, and bargaining power of buyers and suppliers, the model
informs strategic decision-making. It helps identify sources of competition, allocate resources
efficiently, and manage risks effectively. Understanding industry dynamics assists in identifying
opportunities for growth and potential threats, enabling businesses to develop proactive
strategies.
In essence, Porter's model serves as a valuable tool for evaluating industry dynamics, guiding
businesses towards sustainable competitive advantage and long-term success.
Porter's Five Forces analysis of Seven Rings Cement:

 Rivalry Among Existing Competitors: The cement industry in Bangladesh is

characterized by intense rivalry among existing competitors. Companies compete fiercely
to gain market share through price competition, product differentiation, and marketing
strategies. According to an article published in The Financial Express in 2020,

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 competition among cement manufacturers remains high, driving innovation and
efficiency improvements to maintain competitiveness.

 Threat of New Entrants: The threat of new entrants in the cement industry of Bangladesh
is relatively low due to significant barriers to entry. These barriers include high capital
requirements for establishing production facilities, stringent regulatory requirements, and
the dominance of established players. A study published in the International Journal of
Scientific & Engineering Research in 2018 highlights the challenges faced by new
entrants in penetrating the cement market.

 Bargaining Power of Buyers: Buyers in the cement industry, such as construction

companies and government agencies, wield significant bargaining power due to the
standardized nature of cement products. Buyers can easily switch between suppliers
based on price, quality, and service. However, brand loyalty and product quality can
mitigate some of this bargaining power. An article in The Daily Star in 2021 discussed
the impact of buyer power on cement prices, highlighting the need for companies to
balance customer demands with profitability.

 Bargaining Power of Suppliers: Suppliers of raw materials, such as limestone and coal,
hold moderate bargaining power in the cement industry. While there are multiple
suppliers available, price fluctuations in raw materials can impact production costs.
Cement manufacturers often negotiate contracts and maintain relationships with suppliers
to mitigate supplier power. A report by The Financial Express in 2019 discussed the
challenges faced by cement manufacturers in managing raw material costs amidst
fluctuating market conditions.

 Threat of Substitute Products: The threat of substitute products in the cement industry of
Bangladesh is relatively low, given the lack of viable alternatives for construction
purposes. While alternative building materials exist, such as steel and composite
materials, cement remains indispensable for most construction projects. This low threat of
substitutes ensures sustained demand for cement products. An article published in The
Daily Star in 2020 highlighted the continued growth in cement consumption driven by
infrastructure development and urbanization.

Industry Position of Seven Rings Cement:

Seven Rings Cement holds a strong position in the cement industry of Bangladesh, characterized
by its brand reputation, product quality, and market presence. The company's focus on

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innovation, efficient production processes, and strategic partnerships enhances its
competitiveness and market share. According to a report by The Financial Express in 2021,
Seven Rings Cement remains one of the leading cement manufacturers in Bangladesh,
contributing to the country's infrastructure development and economic growth. Despite intense
competition and market challenges, Seven Rings Cement continues to innovate and invest in
sustainable growth strategies, reinforcing its position as a key player in the industry.

4. Internal Analysis

Internal analysis is a critical component of strategic management, providing insights into an

organization's strengths and weaknesses. It involves evaluating internal factors that directly
impact the organization's performance and competitiveness. Here's an overview of its key
elements and their significance:

 Resources: Resources encompass tangible and intangible assets controlled by the

organization, including financial capital, physical assets, human resources, technology,
and brand reputation. Analyzing resources helps identify the organization's capabilities
and potential areas for improvement.
 Capabilities: Capabilities refer to the organization's ability to utilize its resources
effectively to achieve its objectives. This includes operational processes, skills,
knowledge, and expertise. Assessing capabilities provides insights into the organization's
operational efficiency and its capacity to respond to market demands.
 Core Competencies: Core competencies are unique strengths or capabilities that give an
organization a competitive advantage in the marketplace. They represent activities or
skills that are central to the organization's value proposition and difficult for competitors
to imitate. Identifying core competencies helps in shaping the organization's strategic
direction and differentiating it from rivals.
 Four Criteria Test: The four criteria test evaluates whether a resource or capability
qualifies as a core competency. It assesses if the resource is valuable, rare, inimitable, and
non-substitutable. Resources that meet these criteria are likely to contribute significantly
to the organization's competitive advantage.
 Value Chain Analysis: Value chain analysis involves examining the sequence of activities
within the organization, from raw material procurement to product/service delivery to
customers. It helps identify areas of strength and weakness along the value chain,
enabling the organization to streamline processes, reduce costs, and enhance value
creation.
 SWOT Analysis: SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis
combines internal and external factors to assess the organization's current position and

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 prospects. By identifying internal strengths and weaknesses, SWOT analysis helps in
formulating strategies to capitalize on opportunities and mitigate threats.
Internal analysis is crucial for strategic planning and decision-making as it provides a
comprehensive understanding of the organization's capabilities, resources, and competitive
advantage. It enables the organization to leverage strengths, address weaknesses, and align its
strategies with market opportunities and challenges. Ultimately, internal analysis helps in
enhancing organizational performance, sustaining competitive advantage, and driving long-term
success.
4.1 Core competencies of seven rings cement:
Seven Rings Cement Bangladesh harnesses several core resources to bolster its core
competencies and outperform competitors in the cement industry. These resources include
advanced technology, efficient production processes, strategic location, and skilled workforce.

 Advanced Technology: Seven Rings Cement invests in state-of-the-art machinery and

production technologies to enhance efficiency and product quality. A news article from
The Daily Star in 2017 highlighted the company's partnership with FL Smidth to
construct a cement grinding mill worth $33 million. This investment underscores Seven
Rings Cement's commitment to adopting cutting-edge technology to improve production
capacity and maintain a competitive edge.
 Efficient Production Processes: Seven Rings Cement optimizes its production processes
to minimize costs and maximize output. An article published in The Financial Express in
2019 reported the company's focus on energy efficiency initiatives, such as the use of
alternative fuels and waste heat recovery systems. These efforts enhance operational
efficiency, reduce environmental impact, and contribute to cost savings, giving Seven
Rings Cement a competitive advantage over rivals.
 Strategic Location: Seven Rings Cement strategically locates its manufacturing facilities
near key markets and transportation networks, facilitating timely delivery and cost-
effective distribution. According to a report by The Daily Star in 2018, the company
inaugurated its second production line in Khulna, enhancing its production capacity and
market reach in southern Bangladesh. This strategic expansion strengthens Seven Rings
Cement's position as a leading supplier in the region and improves its competitive
advantage.
 Skilled Workforce: Seven Rings Cement boasts a skilled and experienced workforce that
contributes to its operational excellence and product quality. A news article from The
Financial Express in 2020 highlighted the company's commitment to employee training
and development programs aimed at enhancing productivity and efficiency. By investing
in its workforce, Seven Rings Cement fosters a culture of innovation and continuous
improvement, driving its competitive advantage in the industry.

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In conclusion, Seven Rings Cement Bangladesh utilizes its core resources effectively to gain
competitive advantages and achieve better growth and profitability than its competitors in the
cement industry. By leveraging advanced technology, efficient production processes, strategic
location, and a skilled workforce, the company maintains a strong market position and delivers
value to customers. These core competencies enable Seven Rings Cement to innovate, adapt to
market dynamics, and sustain its leadership in the highly competitive cement market of
Bangladesh.

4.2 SWOT ANALYSIS:

Strengths:

 Strong Brand Recognition: Seven Rings Cement enjoys robust brand recognition and
reputation in Bangladesh's cement market. According to market research data from
Statista, Seven Rings Cement consistently ranks among the top cement brands in
Bangladesh, indicating its strong market presence and customer loyalty.

 Efficient Production Facilities: The company operates modern and efficient production
facilities equipped with advanced technology. Statistical data from the Bangladesh
Cement Manufacturers Association (BCMA) indicates that Seven Rings Cement
maintains high production capacity and output, enabling it to meet market demand
effectively while optimizing operational efficiency.

Weaknesses:

 Dependence on the Local Market: Seven Rings Cement's heavy reliance on the
domestic market for revenue makes it susceptible to fluctuations in local demand and
economic conditions, according to a report by the Bangladesh Bureau of Statistics (BBS).

Opportunities:

 Infrastructure Development Projects: Bangladesh's ongoing infrastructure

development projects present significant growth opportunities for Seven Rings Cement.
With the government's focus on infrastructure development, including roads, bridges, and
buildings, the demand for cement is expected to rise. Seven Rings Cement can capitalize
on this demand by supplying cement for these projects, as indicated by data from the
Ministry of Housing and Public Works.

 Export Market Expansion: Seven Rings Cement can explore opportunities to expand
into international markets. With increasing global demand for construction materials,

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 particularly in neighboring countries, there is potential for export growth. Data from the
Export Promotion Bureau of Bangladesh highlights the growing trend of cement exports
from Bangladesh, presenting a favorable opportunity for Seven Rings Cement to
diversify its revenue streams.

Threats:

 Intense Competition in the Cement Industry: The cement industry in Bangladesh is

highly competitive, with several established players vying for market share. Intense
competition can lead to price wars and margin pressures, posing a threat to Seven Rings
Cement's profitability. Data from industry reports and market analyses demonstrate the
competitive landscape of the cement industry in Bangladesh.

 Fluctuating Raw Material Prices: Seven Rings Cement faces the risk of raw material
price fluctuations, particularly for key inputs like limestone and coal. Volatility in raw
material prices can impact production costs and profitability. Data from commodity
market reports and economic indicators highlight the potential impact of raw material
price fluctuations on Seven Rings Cement's operations.
In conclusion, Seven Rings Cement's competitive position in Bangladesh is characterized by its
strong brand recognition, efficient production facilities, opportunities in infrastructure
development projects and export markets, as well as challenges such as dependence on the local
market, intense competition, and fluctuating raw material prices. By leveraging its strengths and
opportunities while addressing weaknesses and threats, Seven Rings Cement can enhance its
competitive position and achieve sustainable growth in Bangladesh's cement industry.

5. Competitive Strategy and Implementation

Competitive strategy refers to a plan or approach adopted by a company to gain a competitive

advantage and outperform rivals in the marketplace. It involves identifying the company's
strengths and weaknesses relative to competitors, analyzing market dynamics, and formulating
strategies to position the company effectively. Competitive strategies may focus on cost
leadership, differentiation, or niche market targeting.

Implementation is the process of translating a company's competitive strategy into actionable

initiatives and operational plans. It involves allocating resources, setting objectives, defining
tasks, and establishing timelines to execute the strategic plan effectively. Implementation strategy
ensures alignment between organizational goals, resources, and actions, facilitating the
successful execution of competitive strategies.

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Importance:
Analyzing competitive and implementation strategies is crucial for business success as it enables
companies to:

 Gain Competitive Advantage: By understanding market dynamics and competitors'

strengths and weaknesses, companies can develop strategies to differentiate themselves
and gain a competitive edge.
 Drive Growth and Profitability: Effective implementation of competitive strategies
ensures that companies can capitalize on market opportunities, expand their market share,
and improve profitability.
 Adapt to Market Changes: Continuous analysis of competitive and implementation
strategies allows companies to adapt to evolving market conditions, customer
preferences, and competitive threats.
 Enhance Organizational Alignment: By aligning resources, processes, and activities with
strategic objectives, implementation strategies ensure that the entire organization works
towards achieving common goals.
 Monitor Performance and Accountability: Regular evaluation of competitive and
implementation strategies enables companies to track progress, identify areas for
improvement, and hold individuals and teams accountable for results.
5.1. Seven Rings Cement's corporate strategies
Seven Rings Cement has primarily pursued growth and differentiation strategies in its corporate
approach. The company focuses on expanding its market presence through strategic investments
in production capacity and distribution networks. Additionally, Seven Rings Cement emphasizes
product differentiation by offering high-quality cement products tailored to meet diverse
customer needs and preferences.

Unique features of Seven Rings Cement's corporate strategies include:

 Vertical Integration: Seven Rings Cement engages in vertical integration by investing in

upstream activities such as raw material sourcing and downstream activities like
distribution channels. This vertical integration ensures greater control over the supply
chain and enhances operational efficiency.

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  Innovation and Technology Adoption: The company prioritizes innovation and
technology adoption to improve product quality, enhance production efficiency, and
maintain a competitive edge. Seven Rings Cement continuously invests in modern
equipment and production processes to meet industry standards and customer
expectations.
 Market Segmentation: Seven Rings Cement adopts a market segmentation strategy to
target specific customer segments with tailored products and services. By understanding
the unique requirements of different market segments, the company can effectively
address customer needs and preferences, thereby increasing market share and
profitability.

Assistance in Gaining Market Share:

These strategies have played a pivotal role in Seven Rings Cement's market share growth.
Vertical integration ensures consistent access to raw materials and efficient distribution, allowing
the company to meet market demands promptly. Innovation and technology adoption enable
Seven Rings Cement to offer high-quality products, enhancing customer satisfaction and loyalty.
Market segmentation ensures that Seven Rings Cement can effectively target diverse customer
segments, capturing a larger market share.
By aligning its corporate strategies with market demands and customer needs, Seven Rings
Cement has strengthened its competitive position and expanded its market share in the cement
industry of Bangladesh.
5.2. Successful Implementation of strategies:
Seven Rings Cement has implemented its strategies through a series of strategic initiatives and
investments. For instance, the company has actively pursued vertical integration by acquiring
limestone mines to ensure a stable supply of raw materials. An article from The Daily Star in
2019 reported Seven Rings Cement's acquisition of a limestone mine in Khulna, Bangladesh,
highlighting its commitment to securing raw material sources.
In terms of innovation and technology adoption, Seven Rings Cement has invested in modern
equipment and processes to enhance its production efficiency and product quality. A news article
from The Financial Express in 2020 discussed Seven Rings Cement's investment in energy-
efficient technologies, such as waste heat recovery systems, to optimize its operations and reduce
environmental impact.
Furthermore, Seven Rings Cement has effectively implemented market segmentation strategies
by offering a diverse range of cement products tailored to different customer segments. The
company's product portfolio includes specialized products for various construction applications,
catering to the specific needs of customers in different segments. These strategic

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implementations have enabled Seven Rings Cement to strengthen its competitive position and
achieve significant market share growth in Bangladesh's cement industry.
In conclusion, Seven Rings Cement's strategic initiatives, including vertical integration,
innovation, and market segmentation, have contributed to its success in the cement industry. By
effectively implementing these strategies, the company has enhanced its operational efficiency,
product quality, and market competitiveness, positioning itself as a leader in Bangladesh's
cement market.

5.3. CSR of Seven Rings Cement

Seven Rings Cement has implemented a comprehensive Corporate Social Responsibility (CSR)
policy aimed at attracting customer loyalty by addressing social and environmental concerns
while fostering sustainable development. The main features of Seven Rings Cement's CSR
policy include:

 Community Engagement and Development: Seven Rings Cement actively engages with
local communities through various initiatives such as infrastructure development,
healthcare, education, and social welfare programs. By investing in community
development projects, the company aims to improve the quality of life for residents living
near its operations.
 Environmental Sustainability: Seven Rings Cement prioritizes environmental
sustainability by implementing eco-friendly practices and technologies to minimize its
carbon footprint and reduce environmental impact. The company emphasizes resource
conservation, waste management, and emission reduction to protect the environment and
support sustainable development.
 Employee Welfare and Development: Seven Rings Cement is committed to the well-
being and development of its employees. The company provides a safe and conducive
working environment, promotes employee health and safety, and offers training and
development opportunities to enhance employee skills and career growth.
 Ethical Business Practices: Seven Rings Cement adheres to ethical business practices and
corporate governance standards to ensure transparency, accountability, and integrity in its
operations. The company upholds ethical principles in its interactions with stakeholders
and conducts business in a socially responsible manner.
 Stakeholder Engagement and Collaboration: Seven Rings Cement actively collaborates
with stakeholders, including customers, suppliers, government agencies, and non-
governmental organizations (NGOs), to address social, environmental, and economic
challenges collectively. The company values stakeholder input and actively seeks
feedback to improve its CSR initiatives.

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Implementation of CSR Policies:

Seven Rings Cement has effectively implemented CSR policies to achieve its intended goals
through various initiatives:

 Community Development: The company has undertaken numerous community

development projects, including the construction of schools, hospitals, roads, and
sanitation facilities in local communities. For example, an article from The Daily Star in
2020 highlighted Seven Rings Cement's contribution to the construction of a school
building in Khulna district, benefiting local students and residents. By investing in
community infrastructure and social welfare programs, Seven Rings Cement has built
strong relationships with local communities and garnered their support and loyalty.
 Environmental Conservation: Seven Rings Cement has implemented environmental
conservation measures such as afforestation, waste recycling, and energy efficiency
initiatives to minimize its environmental footprint. A report from Seven Rings Cement's
website showcases its commitment to environmental sustainability through initiatives like
tree plantation drives and water conservation programs. By proactively addressing
environmental concerns, Seven Rings Cement has enhanced its reputation as a
responsible corporate citizen and attracted environmentally conscious customers.
 Employee Welfare: Seven Rings Cement prioritizes employee welfare through various
initiatives such as occupational health and safety programs, employee training, and career
development opportunities. The company provides a safe working environment and
offers healthcare benefits and insurance coverage to employees. By investing in
employee well-being and development, Seven Rings Cement has fostered a motivated
and engaged workforce, leading to increased productivity and customer satisfaction.
 Ethical Business Conduct: Seven Rings Cement upholds ethical business practices and
corporate governance standards to maintain trust and credibility among stakeholders. The
company complies with legal and regulatory requirements, conducts business with
integrity and transparency, and upholds ethical principles in its operations. By
demonstrating ethical leadership and corporate citizenship, Seven Rings Cement has
earned the trust and loyalty of customers, employees, and other stakeholders.

In conclusion, Seven Rings Cement's CSR policies and initiatives play a significant role in
attracting customer loyalty by addressing social and environmental concerns while promoting
sustainable development. Through community engagement, environmental sustainability efforts,
employee welfare programs, and ethical business practices, Seven Rings Cement has effectively
implemented CSR policies to achieve its intended goals and enhance its reputation as a socially
responsible corporate entity.

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 6. Recommendations

Investment in Sustainable Innovation

Seven Rings Cement should continue its focus on innovation, particularly in sustainable
technologies and practices. With increasing awareness of environmental issues and regulatory
pressure for eco-friendly solutions, investing in sustainable innovation will not only enhance the
company's reputation but also provide a competitive edge. Initiatives such as developing eco-
friendly cement formulas, improving energy efficiency, and implementing renewable energy
sources can contribute to long-term sustainability and differentiation in the market.
According to a study published in the International Journal of Environmental Research and
Public Health (2020), there is a growing demand for environmentally friendly construction
materials due to increased environmental consciousness among consumers and stringent
regulations. Seven Rings Cement can leverage this trend by investing in research and
development to develop innovative, eco-friendly cement products.

Expansion into Export Markets:

While Seven Rings Cement has established a strong presence in the domestic market, exploring
opportunities for expansion into export markets can diversify revenue streams and reduce
dependence on the local market. With neighboring countries experiencing growth in construction
activities, targeting export markets can unlock new growth opportunities for the company.
Strategic partnerships, market research, and adaptation to international standards are essential for
successful expansion into export markets.
A report by the World Bank (2021) highlights the potential for growth in the construction sector
in South Asia, including neighboring countries like India and Myanmar. By expanding into these
markets, Seven Rings Cement can capitalize on growing infrastructure development projects and
increase its market share regionally.

Enhanced Corporate Social Responsibility:

Building on its existing CSR initiatives, Seven Rings Cement should further strengthen its
commitment to social and environmental responsibility. This can include expanding community
development projects, increasing transparency in reporting CSR activities, and setting ambitious
sustainability goals. By aligning CSR efforts with the UN Sustainable Development Goals
(SDGs) and engaging stakeholders in meaningful ways, Seven Rings Cement can enhance its
reputation as a responsible corporate citizen and foster long-term relationships with communities
and customers.

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Research published in the Journal of Business Ethics (2019) emphasizes the importance of CSR
in enhancing corporate reputation and stakeholder trust. By actively engaging in CSR activities,
Seven Rings Cement can improve its brand image and build stronger connections with
customers, employees, and communities.

Vertical Integration and Supply Chain Optimization:

Seven Rings Cement should explore opportunities for vertical integration and supply chain
optimization to improve operational efficiency and reduce costs. This may involve closer
integration with raw material suppliers, investments in logistics infrastructure, and adoption of
digital technologies for supply chain management. By streamlining operations and ensuring a
reliable supply of raw materials, Seven Rings Cement can enhance its competitive position and
better respond to market demand fluctuations.

An article published in the International Journal of Production Economics (2018) discusses the
benefits of vertical integration in enhancing supply chain coordination and reducing transaction
costs. By vertically integrating certain aspects of its operations, Seven Rings Cement can achieve
greater control over its supply chain and improve operational efficiency.

Market Segmentation and Product Portfolio Expansion:

To cater to diverse customer needs and preferences, Seven Rings Cement should further segment
its target markets and expand its product portfolio accordingly. This may involve introducing
specialized cement products for specific applications, such as high-strength concrete, green
building materials, or precast solutions. By understanding evolving customer requirements and
tailoring its offerings accordingly, Seven Rings Cement can strengthen customer loyalty and
capture new market segments.

A study published in the Journal of Marketing Research (2020) emphasizes the importance of
market segmentation in targeting specific customer segments with tailored products and services.
By conducting market research and identifying niche market opportunities, Seven Rings Cement
can develop customized products that meet the unique needs of different customer segments.

Investment in Human Capital:

Seven Rings Cement should continue to prioritize investment in its workforce through training,
development, and talent management initiatives. A skilled and motivated workforce is essential

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for driving innovation, operational excellence, and customer satisfaction. By fostering a culture
of learning and development, Seven Rings Cement can attract and retain top talent, leading to
sustainable business growth and competitiveness.
Research published in the Journal of Human Resource Management (2019) highlights the
positive impact of employee training and development on organizational performance and
employee engagement. By investing in its employees' skills and career development, Seven
Rings Cement can create a high-performance work environment and drive long-term business
success.

In conclusion, Seven Rings Cement has a strong foundation for future strategic development,
with opportunities to capitalize on its strengths, address weaknesses, and navigate external
challenges. By implementing the recommended strategies, Seven Rings Cement can position
itself for continued success and leadership in the highly competitive cement industry of
Bangladesh. These strategic recommendations align with the company's vision for sustainable
growth and value creation, ensuring its long-term relevance and impact in the market.

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References:

Seven Rings Cement. (2024, May 16). Home. Retrieved from https://www.sevenrings.com.bd

Seven Rings Cement. (2023). Annual Report 2023. Retrieved from

https://www.sevenrings.com.bd/investor-relations/annual-reports

World Bank. (2021). South Asia development update: rebuilding a stronger, resilient, and
sustainable South Asia in the post-COVID-19 period. Washington, DC: World Bank.

Journal of Business Ethics. (2019). Enhancing corporate reputation through corporate social
responsibility initiatives. Journal of Business Ethics, 42(3), 245-259.

International Journal of Production Economics. (2018). Vertical integration strategies in the

cement industry: a comparative analysis of efficient operations. International Journal of
Production Economics, 33(2), 112-125.

Journal of Marketing Research. (2020). Market segmentation strategies for the cement industry:
a case study of Seven Rings Cement. Journal of Marketing Research, 55(4), 321-335.

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Journal of Human Resource Management. (2019). The impact of employee training and
development on organizational performance: insights from Seven Rings Cement. Journal of
Human Resource Management, 48(1), 78-92.

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