Letter of Transmittal

August 5, 2010Mr. M. Saidur Rahman (Saeed)Faculty School of BusinessNorth South UniversityBoshundhara Residential Area, Dhaka

Subject: Submission of the group report on “The profile of an entrepreneur”

Dear Sir, We are submitting the report on Mr. Abul Kalam Azad, the entrepreneur of the Azad Products Pvt. Limited and his company which you asked for as a completion of the course requirement. This report contains all the relevant information about Mr. Abul Kalam Azad and his business. We have tried our level best as a team to make this report very strong with all true information.

Working on this project was a great experience and we have gathered a lot of knowledge and experience through this project. Your support, guidance and advices helped us to prepare this report with ease. We hope that this report will meet your expectations. If you need any kind of information or explanation regarding to this report, you will always find us ready. We truly appreciate the opportunity that you provided us to work on such project.

Thank You for believing in us and giving us this tremendous opportunity.

Sincerely

Name I.D

Rifat Jahan Chowdhury 1020849530

Jeenia Jahangir Nova 1020857030

Shuvo Ahsan Khan 1020085030

Md. Asif Iqbal 1010356030

Khairul Alam Badhon 1020041030

Zashinta Yunus 1020439030

Acknowledgment

We truly appreciate every single person who has supported and guided us all through the

making of this project. No matter how much we do, it is never enough thanking our BUS

101 course instructor Mr. M. Saidur Rahman who’s support, encouragement has given us

the power to take on this challenging project. It was a very interesting and exciting job

which was never easy without him.

Our sincere thanks goes to Mr. Abul Kalam Azad, the founder of the Azad Products for

giving us his valuable time and helping us in every step. Special thanks goes to Mr.

Ziaur Rahman Azad, son of Mr. Abul Kalam Azad, for his kindness and support.

We would also like to thank the staffs of the Azad Products, especially, Mr. Mahbubur

Rahman Shohag for giving us his valuable time and helping us with all the valuable

information that we needed.

1. Introduction

1.1 Research Objective

We tried our best to put a decent a report on our recent assignment. here are some of those things which we came across. An entrepreneur is a person who has possession of a new enterprise, venture or idea and assumes significant accountability for the inherent risks and the outcome. The term is originally a loanword from French and was first defined.

The Entrepreneur we met Mr Abul kalam Azad was very humble and supportive, he shared his earlier life with us and told us how he struggled and meet with success. We learnt a lot from him, his business knowledge is huge, and we have learnt a lot about

business from his personal experience probably we wouldn’t have comprehended as much from books. He gave some moral boosters which is going to help us in the future.

 

1.2 Research Methodology

 

 First we have to know about the business strategy and how to compile the business resources and we are writing here about Mr.Abul Kalam Azad. He threw some valuable knowledge and experiences about business policy, such as how to utilize the skills of the labourers and how to establish a proper business. We had a conversation with Mr.Abul Kalam Azad, in his office which lasted for almost 3 hours.

He invited us in his in his own hotel Grand Azad Hotel in Purana Paltan. He introduced us with some of his staffs who showed us around his products and gave us some important information. Then we chatted with Mr. Azad and learnt a lot about his business policy.

 

1.3 Team Work

Without our team we would not have been able to make the report .Our group work is the main thing which made our work so easy. Special thing about our group was wholeness .every one was very conjunctive, they put there 100% to make the report effective, this report was made by distributing work among all the members. Every one played their role in this impeccably. We all together had the same amount of contribution to come up with our report. This report helped us in comprehending on how to work in a group.

 

2. Entrepreneur’s Background

Our selected entrepreneur is Mr. Abul Kalam Azad. He is one of the most successful entrepreneur and remains in top leading position at this moment. He is the owner and founder of Azad Products Pvt. Limited Company. His dream, devotion, dedication, hard work, creativity and effective decisions according to “time’s need” are the main keys of his success.

2.1 Family Background

Mr. Abul Kalam Azad was born on the 20th October in 1954 at Chadpur, Foridgonj. At the age of seven he lost his mother, Thereafter his was shifted family to Shoriotpur. His father Alhajj Abul Hossain(late) was a school teacher. Their family condition was not good. He survived with a painful life with his step mother. Now he has a complete family blessed with his wife, two daughter and only son. His elder daughter is doing her PHD in Australia, younger daughter is studying in Vikarunnesa Noon School & College and his son Mr. Ziur Rahman Azad who is Studying in IUB is a ‘National Snooker Champion’ and also takes care of their business.

2.2Academic Credentials

Mr. Azad started his education in Baher-Chor Primary school where his father was a teacher. He passed his S.S.C exam in 1970 And H.S.C in 1972. Then he completed his BA degree from Sheikh Borhanuddin Degree College in 1975. He also completed L.L.B from City Law College, Dhaka.

One of his remarkable specialties is that, he took classes in IBA and in some highly reputed private Universities of Bangladesh like NSU, AIUB, BRAC etc.

2.3 Ambition & Approach

Mr. Azad always dreamt of starting his own business and tried hard in several ways to reach the goal. But his father had a different dream. His father wanted him to be a teacher. He didn’t like to involve in teaching profession rather than doing his own business. Even in the early age, during his free time after finishing S.S.C exam, he started selling coconut from one haat(village square) to another haat. He earned little money by selling coconuts, but unfortunately he had to stop selling coconuts due to a boat accident. But that didn’t stop him dreaming ahead. He always planned to come Dhaka, because he perceived that there were many sources of business in Dhaka City. But his father didn’t want him to go Dhaka. So when he came to Dhaka with Imam Kari Majlul Hoque without his father’s concern.

2.4 Struggling Behind Starting of the Business

After he came to Dhaka he started giving tuitions for free lodging. He was always surfing the city for getting ideas to start a business. Then a large market of view cards and postersin front of Baitul Mukarram Mosque and some hawkers who were selling those captured his attention. He realized that, it was a profitable business as well as low risky as it was a low investment business. He asked a hawker for assistance but the hawker refused. So he decided to follow the hawker. Finally he found the source and bought some posters view cards from there and started selling those in front of Abahony Gate. But that hawker illegally stopped his business by police. But that couldn’t break his spirit and guts. He again started selling posters in front of ‘L.Rahman jewelers’ as the jewelry market was closed for six months. After opening the market he had move to a nearest place.

When he was selling foreign actor’s posters, an innovative idea of selling local actor’s posters came to his mind. So he decided to scan their picture from ‘Tarokalok Magazine’. As there was no scanning process in Bangladesh at that time, he scanned those pictures from Bankok and printed those from ‘Press Bangla’ in 1987 an published an advertisement in a magazine named ‘Bichitra’.it was a very innovative idea which he applied for the first time in this business line. It really worked rapidly to capture customers’ attentions to buy his products. This was the turning point of his business and he earned a huge amount of profits during this time. So he established his 1st shop at ChawlkBazar in 1988, then gradually he elaborated his business and established many other showrooms as well as a hotel named ‘Grand Azad Hotel’

3. Business Background

3.1 Vision:

To be the best in Bangladeshi card business and retain it’s leadership in the upcoming days.

3.2 Mission Statement Of Azad Products 

WE BELIEVE:

·       That our products and services must enrich people's lives. 

·       That creativity and quality – in our products, services and all that we do – are essential to our success.

 ·       That innovation in all areas of our business is essential to attaining and

sustaining leadership. 

·       That distinguished financial performance is imperative to accomplish our broader purpose.

 

3.3 Capital Investment

Mr. Abul Kalam Azad didn’t have any strong source of finance for his business at the beginning. He managed his initial finance from his friends, personal savings and from selling of his own books. When his business was gradually growing up, he earned sufficient profits and thus managed to expand his business. But now he has a huge amount of capital for investments or even he can successfully accumulate bank loan if needed for any emergence.

3.4 Current Position of the Company

Mr. Abul Kalam Azad is very successful in being at the top position as the card seller

with a great consistency. It is always confusing for the customers to choose in between a

number of card companies. Consequently, it is difficult to attract the customers and retain

them. And Azad Products have been really successful in that occasion. Because of

maintaining a superior quality in a very competitive decent price, and of course, for the

strong brand image, Azad Products’ sale has been higher than any other company

spontaneously.

Currently, the Azad Products is still holding the top position. And the main weapon for

this is their wedding cards. Being very popular, they sell 2-2.5 lacs copies of wedding

card daily in an average. During December to February, they have the highest sales of

wedding cards. The other popular items that have high sale of the company are the

visiting cards, official cards, posters and the show pieces.

Though they have a high sale for the wedding card, their greeting cards’ sales are

declining. This is happening because of the increasing uses of digital cards and

messaging system.

4. Business Analysis

4.1 Innovation:

       Card business mainly depends on its appealing designs. It this case ‘Azad Products’ is very creative. They are more concerned about their designs. They have given extra attention on modern designs, and thus they can keep up with time. ‘Azad Products’ always try to satisfy their buyer’s expectations .they have their own designers. They are highly professional. They generate designs as per customers’ likelihood. Beside this they also take help from internet. they always try to bring anomalous designs .Each an every designs are unique and different from one another .They are not just innovative in their card designs, they are also innovative in their store designing, when customers visit their store’s they feel very hearty. It is their designs and services that hold them in top .Azad products always try to maintain international standard.

        The source behind their top market value comes from the high level of standard they maintain, while manufacturing their products with their unbeatable designs.

4.2 Employees and Interpersonal Relationship

Azad Products have over 500 employees. All of them are very experienced and efficient.

Their behavior is very nice and smart and follows a great deal of morality.

Mr. Azad always emphasizes on motivating the employees. He is always concerned about

retaining the wonderful workers he has. Therefore, he has given them the freedom to

contribute to any kind of situation the company faces.

There remains a great communication among the workers and every department. The

relationship of the employees is wonderful. They are always helpful to each other. The

employees share their problems with each other and try to intimate them. However, if any

kind of disagreement and dissatisfaction among the employees is seen, they manage to

solve it in a friendly way.

4.3Customer Relations and Services

Mr. Azad takes the customer as the most important consideration. He always ensures the

highest quality of his products to reach customer satisfaction. The company tries best to

motivate and attract customers to buy its products. The employees of the showrooms are

very efficient to deal with the customers with care and responsibility. s

The company also ensures special customer services. It provides home delivery of the

orders within 12 hours. As they have installed a better and faster printing machine, they

will now provide home delivery within shorter time. Moreover, if a person orders

wedding cards worth 1,00,000 tk or more, he/she will be given an opportunity to stay in

the Grand Azad Hotel free for 2 days.

The company has a separate customer care section which communicates with the

customers always. If the customers have any problem, or if they need any kind of help,

this section is fully responsible to take care of them.

4.4Company’s Target Customers:

 

‘Azad Product’ is a company that provides cards to all type of customers .The business market of Bangladesh mainly depends on middle class customers. But ‘Azad Products’ generates cards for all type of buyers. Their cards start from taka 10 and end at 1,000. For this they can appeal to all type of customers. The cost of production is cheaper for the cheap labor cost and thus the cost of products of ‘Azad Products’ are very low. Beside all those things, the company thinks about their customers, their buying ability and they try to maintain affordable price.

The demand of their products has increased because it is distributed in several geographical locations throughout the country .and customers can easily afford their expected cards from such a top level company.

4.5 SWOT Analysis

Strengths

Brand name

Quality products

Decent price

Efficient employees

Innovations

High productive technology

Market leader

Strong management system

Better customer service

Social works

Separate customer care unit

Weakness

Less advertising

Comparatively weak design

No clear strategic direction

Less promotions

No uses of accounting soft wares

Poor marketing strategy

Weak Risk Management System

Opportunity

Increasing sell of wedding cards

Advanced printing technology

More people getting involved in several uncommon occasions

All kinds of customers

Massive distribution in different geographical areas

Availability of raw-materials

Comparatively cheap labor

Threats

Growing competitors

Decreasing demand of greeting cards and increasing uses of e-cards

Changing customers needs and tastes

Slower market growth

Political instability

Rising demands of the products of other competitors such as Hallmark, Archie’s, Ideal Products etc.

People’s less interest of buying cards in the non-occasional days

Low foreign market opportunities

Any kind of controversial activity 

4.6 Showrooms & Presses

Showrooms

 Azad product has 25 showrooms in all over Bangladesh. The main showroom is located at Purana Polton opposite of Baitul Mukarrum Mosque and this showroom is two storied building .Showrooms are very specious, well  decorated and air conditioned. The main office is located at their own hotel named “Grand Azad hotel” which is a 15 storied building.

Printing & Packaging Center

They have two printing presses for publishing their cards named ‘Azad Printing & Packaging’. Presses are also very spacious as well as neat and clean and have very good ventilation systems where workers work with full comfort. “Smart Scan” their scanner house is built in the 2nd floor of their hotel.

Working Condition

In their showrooms and presses, workers work with full comfort and energy. The company provides healthy and friendly environment for the employees. Health and hygiene is maintained by setting many toilets separated for male and female workers. There is no discrimination among males and females.

4.7 Production

They have 8 printing machines. 4 of them are bought from Germany 3 of them are from Taiwan and the rest is from China. Their main raw materials are different types of paper like art paper, card paper, offset paper, glossy paper, trasing paper etc and the special kind of Ink mainly imported from China, Thailand and Taiwan. Around 50 workers work in their presses and scanner house. They have a very upgrade technology scanning machine by which they scan all kinds of pictures and designs. Employees work for 8 to 10 hours a day and sometimes they work overtime in the presses, but have extra payment for that. Their production depends on the customers’ orders and demand, but during the business season for selling wedding cards and in all kinds of occasions like Eid, New Year, Valentines Day, World-Cup etc, their production goes in higher rate.

4.8 Management Levels and Working Procedures

Azad Products follows a typical Pvt. Limited Company’s Organogram. However, their

whole management can be divided in four parts.

Source: Understanding Business (International Edition)

All the fundamental strategies, major decisions are decided in the top management level.

In the middle management, the employees work as the planning of the top level. They

undertake short-time, specific programs to implement the decisions of the top

management.

The supervisory employees work according to the order of the middle management. They

take departmental decisions, decides the working process and techniques to get the job

done.

The non-supervisory employees are the general employees who don’t take any decisions

but work directly in the supervision of the supervisors.

The leadership process of this renowned company is participatory. Here every employee

is important to every employee. They contribute to the decision making and deal with

every problem together. Whenever they face a new situation, as they have very efficient

employees, some effective steps are advised to the top level. Then, if the advises are good

enough, they are taken as the decisions by the top management. Nevertheless, the top

management is always responsible for the decision making.

4.9 Responsibilities:

Business Ethics

Azad Products Pvt. Ltd. follows a Company Code of Conducts with the commitment of high ethical standards. The company strictly avoids child labor, discriminations(Gender, age, sex, race, political beliefs, maternity status, religion, etc) and forced labor. It is highly concerned about the rights to the employees, standard hours of work/overtime, safe and healthy work place including secured environment, and pays fair wages to the employees. The company also pays Income Taxes and VAT according to the Govt. rules.

Social Service & Philanthropy

Apart from following economic responsibilities and legal responsibilities, Mr. Abul Kalam Azad contributes remarkably for the welfare of the society and its people by carrying out philanthropic responsibilities. He established a foundation named “Azad Foundation” to help and support financially unblessed people. He also established “Jubok Forum” for the workers of his company. He also sponsors in many sports events and concerts.

Every year Mr. Azad gives “RATNAGORBHA MAA AWARD” which is a unique concept of giving awards to those mothers whose child are successful in education and career.

……………………………………………………………………………………….

Considering his acts on economic, legal, ethical and philanthropic responsibilities, it is obvious that “Azad Products” fits perfectly and completes the 4 parts of Archie Carroll’s CSR Model.

4.10 Product Life Cycle Analysis

The Azad Products is going through the maturity level of the product life cycle. The

brand name has been established quite a time ago and because of that, the buyers are

always interested to buy their products. Besides, as said before, Azad Products ensures

the best quality for cards and so the buyers are attracted to buy them. Moreover, during

this stage, the company is giving special customer services and attractive offers to retain

customers. Thus the sales are growing more but of course slower than the growth level.

Sometimes the sales reach the highest peak. The company is always working on

increasing productivity and increase more efficiency as well.

The company, in this stage, is facing a

lot of competitions. The competitors’ sales

and popularity are increasing which

is resulting in the declination in the

profit of the company.

This is a stage where the amount of the

managerial decisions is the highest. The

company is very concerned to make

the most managerial decisions very

effective.

Though some of the products of the company are facing reduction in sales such as

posters, greeting cards, but mostly because of the wedding cards, the assumption is, the

maturity level will remain quite for a long time. And the overall status of the sales of the

company (for all products) reflects the maturity level.

Figure: Product life cycle

Source: netmba.com

(http://www.google.com/imgres?imgurl=http://www.netmba.com/images/marketing/

product/lifecycle/lifecycle.gif&imgrefurl=http://www.netmba.com/marketing/product/

lifecycle/

&h=254&w=309&sz=4&tbnid=mWNSVuUXXr5xnM:&tbnh=96&tbnw=117&prev=/

images%3Fq%3DProduct%2BLife%2BCycle

%2BCurve&usg=__xCihcH5BgnGw7tD1r38hjqvL8gY=&sa=X&ei=e-

hWTKmyE9TGrAfK1vHyAw&ved=0CB0Q9QEwAg

 

4.11 Annual Turnover

Azad Products’ annual income is 22812500000 tk. and annual expense is 7604166667 tk.

So their annual turnover is (22812500000-7604166667) = 15208333333 tk.

(approximately).

4.12 Risk management system

Risks can jeopardize a business enterprise. With that in mind, Azad Products is always

conscious about any kind of possible risk.

Whenever a new potential risk or threat arises, the company calls for an emergency

meeting. The employees then discuss about the issue, brainstorm the possible solutions

and then agree on an effective solution. After that they figure out the strategies and tactics

to implement the decision. They also closely monitor the actions taken and make sure if

everything is going according to plan.

Power failure or load-shedding is always a big risk for every business enterprise in

Bangladesh. To avoid such risk, the company has installed a generator to ensure

continuous production.

There is always a risk of accident (such as fire-break out etc.) which incurs huge losses.

To avoid such losses the company has insurance policy.

It is always important to do market research to find risks in advance. It reduces the

amount of risk. But quite surprisingly, the company does not do any of it.

5. Marketing Analysis

5.1 Marketing procedures

Azad Products is a company which sells wedding cards, greeting cards, official cards and

visiting cards, show pieces, calendars and posters. Naturally, as for the marketing

procedures, they interact directly with the customers rather than using any kind of

mediums. They have several showrooms where from the customers can choose their

products and buy or give order.

The marketing process of the company includes establishing showrooms in a competitive

area. There are a number of competitive company’s showrooms in the same are where the

showroom of the Azad Products situates. The customers always tend and are comfortable

to go to a single place/area to buy particular products. However, it is pretty challenging

for the company to attract the customers in such area.

The company sets the prices of the products keeping the prices of the other competitive

products’ in mind. There remains a big risk if they set the price higher or even if they

lower the price. Therefore, they set the prices in a way so that the customers do not leave

them knowing their prices.

5.2 Company’s Target Customers

‘Azad Product’ is a company that provides cards to all type of customers .The business market of Bangladesh mainly depends on middle class customers. But ‘Azad Products’ generates cards for all type of buyers. Their cards start from taka 10 and end at 1,000. For this they can appeal to all type of customers. The cost of production is cheaper for the cheap labor cost and thus the cost of products of ‘Azad Products’ are very low. Beside all those things, the company thinks about their customers, their buying ability and they try to maintain affordable price.

The demand of their products has increased because it is distributed in several geographical locations throughout the country .and customers can easily afford their expected cards from such a top level company.

5.3 Promotional activities:

Azad Products depend greatly on their brand name. They do not go for any promotional

activities in a large scale. The only promotional activity they do is giving the “Ratnagarva

Awards” which makes a positive impact on the minds of the customers about the

company and motivates to buy their products.

As the company emphasizes mostly on the quality of its products, they believe in word of

mouth. Some of the promotion is done while the customers get satisfied receiving high

quality products. The satisfied customers then motivate other people to buy their

products.

5.4 Market competitors:

Azad Products, though a very popular brand, faces a lot of competitions from the other

relevant companies. Their biggest competitor is Ideal Products. There are some other

companies such as Hallmarks, Archie’s are also big threats to the company.

CONCLUSION

 

Comment on the business and the entrepreneur, He is a pioneer in this card publishing business and he almost holds the 30% of the card business in the country, which is a monopoly. His company has a strong hold in this card publishing business all over the country. “Azad Products”is one of the largest card sellers in the country. He has many strategies to grow his business and to recover from any damp situation. Everyday he throws some new ideas in his card production and captures consumers’ attentions of all levels. He had to work hard and his industry brought his card business to such a huge stage.

 He has a never give up mind set and he want to take this business to international levels. He reached to pick with own effort and industry and won peoples heart and established a successful business.