MANAGEMENT 210 REPORT

Prepared By: 1. Bijoy Ram Pratick ID: 1330342630

2. MD. Shahriar Alam ID: 1320720030

3. William Banarjee ID: 1420369030

4. Nilanjana Islam ID: 1430513630

Prepared For: Nadia Ashraf

Faculty member, School of Business,

North South University.

ACKNOWLEDGEMENT

This project has been an eye-opener for us and we are really thankful to those who

have helped us regarding our work.

We express our profound gratitude to our Course Instructor Nadia Ashraf (NaF) Faculty

Member, School of Business, North South University, Dhaka, for guiding us with all her best

efforts and hearty inspiration to complete this study. We are fortunate to have her support while

preparing this report and throughout the course as well.

We convey our gratitude to the Internet Services Provider for the unbelievable support for

preparing the project.

All the group members worked very hard with sincerity for completing this project. We

supported ourselves with every possible way to make our project a success.

We also thank our friends and family for helping us as much as possible by supporting us and

providing necessary information for this presentation.

We hope that our unwanted errors will be taken with forgiveness.

Thank You.

TABLE OF INDEX:

Sl. No. Topic Page No.

1 Executive Summary 4

2 Introduction 5

3 SWOT Analysis 7

3.1 Strength 8

3.2 Weakness 9

3.3 Opportunities 9

3.4 Threats 10

4 Porter’s Generic Strategy 11

5 Synergy 12

6 Management Style 13

6.1 Planning 13

6.2 Organizing 14

6.3 Leadership Style 15

6.4 Motivating 15

6.5 Recruiting 15

7 Strategic Objective 16

8 CSR Practices & Conclusion 18

9 Reference List 19

Executive Summary:

UNITECH Holdings & Technologies Ltd is one of the reputed real estate companies of

Bangladesh. It was established back in the year 1993 under the chairmanship of Mr. Mahfuzur

Rahaman. It is very well known and reputed for providing houses of good qualities. They are one

of the leading real estate companies in Bangladesh. They are the third one among all real estate

company to get listed in the stock market of Dhaka stock exchange.

Their strengths are:

Large capital: They use their capital to invest in big projects.

Brand Name: They create their brand name by providing the best quality as well as the low

price apartments.

Assets: They have assets where they can build houses.

Goodwill: The created good will in the market providing good quality apartments.

It also has a few weaknesses. Namely:

Limitations of management: There are few limitations in their management.

Lack of CSR activity: They don’t practice CSR. So doesn’t get much help from the

government.

Lack of Publicity: Though they are one of the market leaders, but sometimes lack of

publicity and marketing has seen it fall behind other leading companies.

UNITECH Holdings & Technologies Ltd uses the management synergy system. They are

versatile in their skills and help each other out by completing each other’s tasks.

UNITECH Holdings & Technologies Ltd uses the cost leadership and differentiation strategy

which helps them to get a competitive advantage in the market.

UNITECH Holdings& Technologies Ltd practices almost all managerial functions. Some of its

functions are:

Planning: All of their plans take place in a cyclical process.

Organizing: Top level management takes the decision, and middle level manager works

on them.

Leading: They use team oriented leadership style.

Recruiting: They follow the structured interview to recruit its employee.

Motivating: It motivates it employees by following the extrinsic reward system.

Although UNITECH Holdings & Technologies Ltd is not involved in CSR activities yet,

hopefully they will soon take the initiative in preserving the culture and the beauty of the

country.

UNITECH Holdings & Technologies Ltd continues to be one of the leading real estate companies of our country.

Introduction:

UNITECH Holdings & Technologies Ltd is public Ltd Company in Bangladesh and working

in real estate development. Eastern Housing Limited is one of the 29 members of the REHAB

Association, the central body for private sector developers in Bangladesh. UNITECH Holdings

& Technologies Limited (UHTL) is a concern of Islam Group of Industries. It was formed in late

1993 under the Chairmanship of Mr. Mahduzur Rahaman (entrepreneur) to reduce the housing

problems of Dhaka city. It started its work by successfully implementing a project of building

700 houses in Paltan Thana, Dhaka, and acquiring 910 acres (3.7 km2) of land. Within a short

span of time it turned out to be one of the most trusted companies in the housing sector. While

the company started operations by developing real estate mostly within Dhaka, the capital of the

country, it has started to build outside the city. It regularly takes part in REHAB real estate fairs,

both at home and abroad, and experiences sell-out performances. .

Few landmark of UHTL:

1. They are the first one to take the apartment project in Bangladesh in 1997.2. They introduced the high rise apartment in Bangladesh in 1999.3. Build the first Air conditioned Shopping mall in Bangladesh in 1995.4. In 2003 they were listed in Dhaka Stock Exchange.5. In 2008 they were listed in Chittagong Stock Exchange

SWOT ANALYSIS:

SWOT Analysis of UTECH Holdings & Technologies Ltd.

S – Strength

1. Huge capital

2. Brand Name

3. Assets.

4. Goodwill.

W – Weakness

1. Limitations of management.

2. Lack of CSR activity.

3. Lack of Publicity.

O – Opportunities

1. Entering the new market.

2. Expending Business.

3. Practicing CSR.

T - Threat

1. Shortage of available land.

2. Increasing wage of labors.

3. Increasing price of raw materials.

4. Rising Competitors.

Strength:

Huge Capital: As UHTL is a listed company in stock market they have got a huge capital to

invest. This is one of the strongest parts they have. It makes them one step ahead from other

companies in real estate business. They use their capital in proper way to maximize the

productivity.

Brand Name: They are one of the earliest companies in the Real estate business. And they have

turned into a strong brand in the real estate business by providing the best quality. It helps them

to retain the top position in the real estate business. Only few companies in real estate business

got the benefit.

Assets: UTCH already bought 100 bighas of land in cox’s bazar. Besides they have bought land

in Rampura, Aftabnagar. They have planned to build residential area in this places. Aftab Nagar

in Rampura is a now growing fast.

Goodwill: They have good will in the market. They make this good will by providing the best

quality product. As they are leading real estate they created a good will which makes their brand

name stronger.

Weakness:

Limitations of management: Though they have a strong management function, they have some

lacking in it. As they use centralized organizational structure, sometimes it demotivates the

employees. But top management is dealing this problem in a proper way.

Lack of CSR activity: UTCH doesn’t practice CSR. So they don’t get any help from

Government regarding the tax and other benefits.

Lack of Publicity: UNITECH Holdings & Technologies Ltd doesn’t usually go for advertising.

They have brand name but they should use the advertising to recall the brand name in

consumer’s black box. They don’t practice CSR either, so advertising might help them to

promote the name.

Opportunities:

Enter a new market: They have the opportunity of entering a new market. Few other

development companies already took the opportunity of entering a new market. And they are

quite successful. BOD members of UHTL are planning to take the opportunity too. They are

thinking of entering the tourism as well as the hotel business. They have few other long term

plans too.

Extend the Exits Business: EHL build apartments mostly in Dhaka. They can increase their

profit as well as the brand name by extending their business. According to Mr. S. M. Jahidul Islam

the managing director of UHTL, UTECH Holdings and Technologies Ltd is planning to expend

their business in Chittagong and Sylhet. These two cities are growing fast, and real estate

businesses have good opportunity there.

Practicing CSR: They can do their publicity as well as make their brand name stronger by

practicing the CSR. Sometimes CSR attract the consumer and help the brand to make their

presence in consumers mind.

Threat:

Shortage of available land: With the growing number of real estate companies the number of

available land is decreasing rapidly. Due to this reason it’s really challenging for the real estate

companies to find available land to extending the business.

Increasing wage of labors: Due to pressure from labor union and government they have to

increase the wage of the lower level workers. For this reason their cost of production increases

rapidly and it turned into a major threat for them.

Increasing price of raw materials: According to a survey the price of raw materials used in

building house like Brick, Steel has increased more than 100% in last 20 years. This affects their

cost. This is also a major threat for their business.

Rising Competitors: Once there were only a few real estate companies in Bangladesh, but now it’s one of the rising businesses in our country. There are too many companies to count. Though they are the market leader, they are facing challenges from these companies.

Porter’s Generic Strategy :

UTECH Holdings & Technologies Ltd uses the cost leadership strategy & the differentiation

strategy. They maintain the lowest cost in the market to provide a competitive advantage in

pricing over competitors & also provide unique and superior value for the customer that build

brand loyalty.

To maintain the cost leadership they will provide flat in just 3,500 – 4,000 taka per square feet.

By providing the low price they will try to grab the middle class family. They are working in

Aftab Nagar, Rampura for this project

To maintain the differentiation they will provide flat in 40,000 – 45,000 taka per square feet in

Gulshan and Dhanmondi area.

In order to create moments they have chalked their core focus area in order to reach their goals.

Strategic focus shift from affordable quality housing to diversified world class range of

housing products.

Adapting the new ideas and technologies to reduce carbon footprint.

Various training programs throughout the year, aimed at skill development of its

employees to help them reach their full potential.

Timely and fair financial and Non-financial reporting to stakeholders through letters,

reports and website.

Using the full range of our products and services we guide our clients to their dream

homes.

Synergy:

Synergy refers to the mutual effort of persons as members of the team. It is the condition that

exists when an organization's parts act together to produce a combined effect with greater than

the produce of parts acting alone.

UTECH Holdings & Technologies Ltd uses the management synergy system. Management

synergy is complementary skills that make for more effective overall management. UTECH

Holdings & Technologies Limited offers their clients world class real estate to create life of

moments.

Their vision is, to be a world class Real Estate Developer creating maximum value by providing

quality homes and business.

Their mission is to build and develop environment friendly apartments, commercial Buildings &

Land Projects using the highest standards of safety, architecture, engineering & greentechnology.

And their principles are integrity, accountability & transparency.

Management Style:

Planning: Planning plays an important role in growth of UTECH Holdings & Technologies

LTD. The planning strategy works in a cyclical way. At first the evaluation team evaluates the

project and they send a report to the board of directors for the confirmation. After getting the

confirmation they distribute the work to the lower level manager as well as the finance

department, and then finance department determines the cost. Then the constriction team decides

the quantity of the raw materials of the project. After completing the project the monitor team

reviews the overall project, either the raw materials or the utility was under used or over used.

Then they again send report to the evaluation team. Thus how the planning goes on.

FIGURE 1

Organizing: UHTL follows the centralized organizational structure. Top level makes all the

decision. Board of directors set all the goals, and managing director and audit committee work

according to their plan. The UHTL Audit Committee was established in late 2008 as a sub-

committee of the Board and has jurisdiction over UHTL. The Audit Committee is comprised of

four members of the Board including the Independent Director. The Audit Committee assists the

Board in discharging its supervisory responsibilities with respect to internal control, financial

reporting, risk management, auditing matters and UHTL’s processes of monitoring compliance

with applicable legal & regulatory requirements and the Code of Conduct. All the members of

the managing team are paid workers. They practice the departmentalization strategy too. They

department heads works under the managing director.

Figure 2

Leadership Style: UHTL follows doesn’t follow any traditional leading style in their

organization. They follow Authoritarian leading style when it comes to the top level. As they

follow the centralized organizational, top level decides what they should do, but when it comes

to project the leave it to the manager that how he or she will going to lead the project team.

Project managers usually follow the team oriented leadership style.

Motivating: UHTL follow the extrinsic theory to motivate their employees. They got money

and promotion according to their performance. Besides they pay bonus to their employees during

festivals, i.e.: EID, Puja. Besides they offer 40 days paid leave per year to their full time

employees, and 15 days paid leave per year to their contractual workers. Besides they offer

performance bonus to their employees. Mr. Jahidul Islam (General Manager of UHTL) believes

that motivating is very important to reach the desired goal. It increases the productivity of the

employees.

Recruiting: UTECH Holdings & Technologies Ltd has two types of employees. First one is

full time employee and another one is contractual employees. For both types of employee they

use the structured interview, but the qualification of the employee differs. They prefer the job

knowledge most while recruiting an employee. According to the general manager Mr Jahidul

Islam there is no place for biasness in the recruitment process, they take the right people in the

bus.

Strategic Objective:

The year 2013 has been a difficult year for the Real Estate sector in Bangladesh due to the slow

economy and the tight liquidity situation prevailing in the country. This had a strong adverse

impact directly on all real estate companies. Moreover, people were deferring their investment

decision in the real estate sector due to unfavorable situation.

Despite the incremental challenges UHTL faced, they have continued their development program

as usual and achieved a growth of 10.88% compared to last year. Consequently profitability has

been increased. The company has been able to sustain their strong market position and

diversified product line.

In a difficult situation UHTL currently is working in developing twenty apartment and

commercial projects and a total of four land development projects. There are eleven apartment

projects in the pipeline. The apartment and commercial projects are located in various areas in

the city of Dhaka.

They have some long term project to be a best developer in Bangladesh which helps them to

reach their goal by their strategy. Such as:

They are trying to take a new land projects around 500 bighas outside DAP area. A new venture

has been taken just along the sea beach in Cox’s Bazaar with a view to develop international

standard hotel and resort accommodating all the facilities. Initially UHTL purchased

approximately 18 bighas of land and planning to purchase around 100 bighas gradually .They are

acquiring further land in that area to turn it into a state of the art resort.

As the only publicly listed real estate company in Bangladesh, UTECH Holdings and

Technologies Limited is committed to achieve high standard of transparency and accountability.

The company believes in external and internal changes they are well positioned for the next year.

In next 5 years their aim is to provide the most low cost apartment to the general people and to

be the best housing partner and land provider of Bangladesh.

Mission: To be a world class Real Estate Developer creating maximum value by providing

quality homes and business.

Vision: To build and develop environment friendly apartments, commercial Buildings & land

projects using the highest standards of Safety, Architecture, Engineering & Green technology.

Principal: Integrity

Accountability

Transparency

CSR Practices: UTECH Holdings & Technologies Limited doesn’t practice CSR.

Conclusion:

UTECH Holdings & Technologies is the first row development company in Bangladesh. Till

date, it is one of the leading developers of our country. UTECH Holdings & Technologies

Limited is mostly renowned for the best land provider and best accommodation facilitator in

apartment sector.

UTECH Holdings & Technologies Limited’s organizational, and Porter Generic system is a very

effective which help them to communicate with the customer more effective. UHTL has almost

all managerial functions. To enrich the beauty of the projects they have initiated tree plantation

project with Mahfuzur Rahaman City. They believe that they have the strong elements and

resources to continue their progress to reach at the top.

Hopefully, in the near-future, UTECH Holdings & Technologies Limited will take part in CSR

responsibilities and help the country to develop and prosper through its activities.

1. References: Subject wiki for UTCH Holdings & Technologies Ltd(2014)

[Online] Available from:

http://en.wikipedia.org/wiki/UTHTL

[Accessed: 7th December, 2014]

2. UTCH Holdings & Technologies (Public.) Limited (2014) [Online] Available From:

http://www.UTCH Holdings & Technologies Ltd.com.bd/

[Accessed: 7th December, 2014]