Internship Report

Human Resource ManagementOf

Tulip Properties Limited

BY

FARZANA FERDOUSHI

ID NO: 2008010002052MBASoutheast UniversityDhaka

UNDER THE SUPERVISION OF

Dr. Helal Uddin AhmedChairman, DBA Southeast UniversityDhaka

ACKNOWLEDGEMENT

First and foremost gratefulness is to almighty Allah for giving me strength,

courage and patient to prepare this Report on Human Resource Management of

Tulip Properties Limited. I would like to thank our honorable faculty Dr. Helal

Uddin Ahmed for his kind cooperation and suggestions given to me in the

preparation of this paper. He helped me by giving his valuable time, guidelines

and instructions from time to time. I also wish to express my deep gratitude to

those students of my class who inspired and supported me for doing this Report.

Finally, I would also like to thank my friends and well wishers for their heartfelt

supports and encouragement.

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1. EXECUTIVE SUMMARY

This study is related to the Human Resource management of a local

successful Real Estate firm called “Tulip Properties Limited.” The

objective of my study was to discuss with the top management of the

organization and realize the issues “Tulip Properties Limited” faced

regarding the strategic moves made by them. Then I arranged the Human

Resource management issues according to the literature of the book and

the outline provided by respected faculty. After reviewing the literature,

my main focus was to find out the problems Tulip Properties Limited was

facing for strategy formulation and execution. I identified three most

important problems of Tulip Properties Limited.

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2. COMPANY BACKGROUND

Introduction:

Tulip Properties Ltd was established in 2005 and has grown into one of the most

successful residential, leisure and commercial developers in Bangladesh. Driven

by a passion for excellence, luxury and determination to deliver homes to its

customers as quickly as possible. The company is taking every step towards

safeguarding its customer’s interest. Tulip is a lifestyle brand, and we work

endlessly to improve our quality.

Tulip Properties Limited, situated in Dhaka, is one of the developer companies

in constructing and selling apartment buildings. It has been trying to produce

quality flats and revolutionize the idea of flats to the consumers to be a

comfortable and aesthetic living place since 2020. At the moment, Tulip has

more than 500 people working in 10 (Ten) running projects and servicing in

around running projects. It is now one of the largest organizations in the real-

estate sector in Bangladesh. Tulip now has more than double projects running

compared with its nearest rival.

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Historical Background:

Mr. Md. Yousuf Iqbal Chowdhury and Mr. Ashique Yousuf Chowdhury started

business in the form of Tulip in 1st March 2005 informally with only 08 (eight)

people. Then gradually he organized the organization. They collected some

plots to develop and organized office space and other related facilities.

Afterwards, They formally launched the company with 25 (twenty five) people.

There were merely four departments at that time. The departments deal with

supply, administration, constructions and marketing. The CEO Mr. Md. Yousuf

Iqbal Chowdhury looked after the activities in details at that time.

Critical Events and Milestones:

To have a clear idea about the progress of Tulip Properties Limited, year-by-

year critical events and milestones are stated in brief here.

In 2005, the organization completed the formal and legal proceedings and

developed the initial infrastructure to run the organization.

In 2006, Mr. Qayyum Chowdhury, one of the renowned directors of Tulip

now, joined Tulip and flourished the business afterwards. Tulip

advertised a lot and finally established some kind of brand name.

4

In 2006, Tulip Properties Limited celebrated as they reached the

milestone of having one hundred lands for development. And after 2007,

Tulip became one of the biggest developer in the market in flat

constructing. At that time they first got huge response from the

landowners and consumers.

In 2007, the departmentalization was finalized. The job responsibility of

every department was set and strong reporting relationships were

established. Everything was done on the basis of paper, not on the word

of mouth.

In 2007, Tulip formally started to develop projects in Chittagong.

In 2007, Tulip got so many projects that they had to take projects on the

term that they would start the construction work after one year after Deed

of Agreement.

In 2007, Tulip slowed down their expansion as the political and

consequently economic conditions of the country came to dire state after

1/11.

In 2009, Tulip formally started to develop projects in Sylhet & Comilla.

5

3. Industry and Competitive Analysis

In order to do the industry competitive analysis seven issues should be focused.

The issues are as follows~

(1)Dominate economic features of the industry.

(2)Competitive forces industry members facing.

(3)Driving forces and its impacts in the industry competitive intensity and

industry profitability.

(4)Market position of the rivals in the industry.

(5)Predictions of strategic moves of the rivals.

(6)Key success factors for future competitive success.

(7)Outlook for the industry present sufficiently attractive prospects for

profitability.

These seven issues are discussed in brief as follows:

(1)The Dominant Economic Features :

In identifying the dominant economic features the following factors are

analyzed carefully~

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Market Size and Growth Rate :

Market size for real estate is not very big for Bangladesh. Normally upper-class

urban people afford to buy flats. When last government provided a chance to

legalize the illegal money through buying flats, then the growth rate of the

market was very high (around 20%). But when the new caretaker government

changed the rule, then the market growth became negative since earlier this

year.

Scope of Competitive Rivalry and major rivals:

There are a lot of firms working in Dhaka, Chittagong, Sylhet, Comilla and

other parts of Bangladesh. There is an association called REHAB (Real Estate

and Housing Association of Bangladesh). There are around more than 800

(Eight hundred) firms registered according to REHAB. There are some

dominant firms in the real estate industry are Asset Developments, Sheltech

(Pvt.) Ltd., Rangs Properties, Eastern Housing, Dom-Inno Developments,

Advanced Developments, Building Technology &Ideas Limited (BTI) and

Structural Engineers Limited. Among them Tulip is one of the biggest

developer company in the market in real estate. Other close competitors are

Asset, Sheltech, Advanced and BTI. They are the old competitors. They

individually has around 8 to 10 percent of market share. But some newcomers

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like Dom-Inno, Rangs and Comprehensive are coming to the light much

rapidly. So there are a large number of competitors in the industry. All of them

are trying to grab the market share as much as possible. Newcomers are offering

as much as possible to the prospective clients or land owners to take hold of the

market share. Hence the scope of competitive rivalry is very acute in the

industry.

Buyers Needs and Requirements:

Buyers in this industry are aristocratic buyers. Their demand is to lead life in a

very modern apartment. They want every facility of modern world in their

apartment. New buyers are very cautious about privacy. So they need more

rooms. As a whole, buyers are paying to live a life that most of the country

people dreamt about. Hence their needs and requirements are distinct and

buyers are paying high money to have the apartment and living in comfort.

Production Capacity:

Industry players enjoy full capacity. So excessive capacity pushes the price and

profit margin down. The industry is overcrowded with many large and small

competitors. In 2008 more than one hundred flats were handed over

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by different firms. Tulip handed over 10 projects. Sheltech Handed over 22

projects, Rangs and Dom-Inno individually handed over 20 projects.

Pace of Technological Change

Technology is not changing much in this industry. Minor changes like using the

steel trusses for scaffolding, using steel shutters and improved portland

composite cement and using flat slabs instead of beam oriented structure are the

major changes so far in this industry. Hence technological changes are not yet

the guiding factor in this industry.

Vertical Integration:

Most of the firms in this industry do not use forward or backward vertical

integration. This is because most of the raw materials like rod, cement,

ceramics, wood, bamboo, sand, bricks etc. are separate industry. It is very tough

to adapt with the suppliers’ industry and get benefit by doing their business

properly. Some big firms like Anwar group, Bassundhara and Eastern Housing

use some sort of backward vertical integration by producing GI pipe, cement,

sand and rod or steels for structures. But this backward vertical integration did

not prove much cost worthy.

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Product Innovation

Product innovation in this industry means change in interior and exterior look of

the building. The more a company can give a better outlook, the more it can

attract the new customers. Hence product innovation is not a factor that can give

a leading edge in this industry.

Degree of Differentiation:

The main or dominant rivals are trying to modify their products by giving their

outside view an artistic look. Other way to make the product differentiated is to

use pure and perfect long lasting raw materials. When people can rely on the

quality of the product, then it can be said that product is differentiated by the

brand name of the firm.

Economies of Scale

Well-established flat makers able to benefit from economies of scale and brand

recognition, smaller companies struggling even remain afloat.

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Learning & Experience Curve Effects

When the companies in the real-estate industry are expanding and people are

accepting the flat concepts gradually in our country, the learning and experience

curve affect come into play. Players in the industry are doing the same work

again and again and get used to doing the work faultlessly.

The Competitive Forces:

There are five competitive forces that determine the competitive condition of

the industry. The forces are as follows~

The Rivalry among Competing Sellers.Competitive Pressure - Threat of

New Entry Competitive Pressure from the Sellers of the Substitute

Products.Competitive Pressure - Supplier bargaining Power .Competitive

Pressure - Buyers Bargaining Power

The Rivalry among Competing Sellers:

In the industry of real-estate flats are sold by so many companies. So the

competition is fierce. Companies are trying to differentiate themselves by

innovative offers and design features. Many companies offer low cost products,

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many companies offer moderate cost products and others offer high cost flats

for high class. Normally companies target middle class people who buy flats

with their last means. Rivalry is mainly focused at this market segment. Because

middle class people are the largest number of buyers. Those who can grab this

market can become the future market leader.

Competitive Pressure - Threat of New Entry

Barriers to entry are very high. New companies with and without a fair amount

of financial backing will still find it extremely difficult to start competing within

the industry. But new small companies can run with small number of projects.

Competitive Pressure - Sellers of the Substitute Products:

There is no perfect substitute for the apartments. Although some of the

companies like Pink City Xenovellly and BDDL are offering duplex villa,

which to some extent are substitute for apartments. So the pressure for

substitute product is almost nil.

Competitive Pressure - Supplier bargaining Power and Supplier-Seller

Collaboration:

Supplier bargaining power is different for different kind of materials in the

industry. Because normal raw materials (like sand, brick, stone chips, bamboo,

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plane sheet, wood etc.) have many suppliers. So their bargaining power is less.

But some special type of materials like rod, cement, lift etc. have

very small number of suppliers. So these suppliers have strong bargaining

power. Hence as a whole it can be said that in the industry the bargaining power

of supplier is moderate.

Competitive Pressure - Buyers Bargaining Power

Buyers in the industry include: individuals of higher middle and higher class of

people of the society. According to Real Estate and Housing Association of

Bangladesh (REHAB), there are more than 800 registered real estate companies

working in Dhaka city. So there are so many companies now. Buyers can

choose out of them. Hence the buyers’ bargaining power is high.

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Does the state of competition promote profitability?

The stronger the forces of competition, the harder it becomes for industry

members to earn attractive profits. Here the collective impact of these Porter’s

five forces of competition is immense. Except for buyers’ bargaining power and

pressure from substitute products are less, the other three factors of competition

are creating huge pressure on the industry members. For example for the

pressure from the buyers and competition among themselves forced the

companies in the industries to enhance their number of projects and lower the

costs of operations as much as possible to provide best kind of apartments to the

buyers for low cost.

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Rivalry amongCompeting Sellers

Competitive pressures created by the jockeying for better market position, increased sales and market share and competitive advantage- High

BUYERS

Competitive pressures stemming

from buyers bargaining power and

buyer-seller collaboration

SUBSTITUTE PRODUCTS

Competitive pressures coming from the attempts of companies outside the industry to

win buyers over to their products

Moderate

Competitive pressures coming from the threat of entry of new rivals

High

Low

Low

SUPPLIERS OF RAW

MATERIALS, PARTS,

COMPONENTS, OR OTHER RESOURCE

INPUTS

Competitive pressuresstemming

from supplierbargaining and supplier-seller collaboration

POTENTIAL NEW ENTRANTS

Figure: Porter’s Five Forces Model of competitive analysis

Industry Driving Forces:

Industry conditions change because important forces are driving industry

participants (competitors, customers or suppliers) to alter their actions. The

driving forces in an industry are the major underlying causes of changing the

industry and competitiveness. Some driving forces originate in the macro-

environment and some driving forces originate from within a company’s

immediate industry and competitive environment.

The dominant driving forces of real-estate industry with their features are

described below~

Growing use of Internet:

In the real-estate industry in Bangladesh, usage of Internet for the purpose of

communication and business is still in a primitive stage. Many prominent firms

in the industry have their maximum customers in abroad. These customers are

expatriates. To enhance the customer base in foreign market as well as in

Bangladesh, companies need e-commerce base. But at the moment companies

use their Internet only for providing information through their website and

giving e-mail to prospective customers.

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Increasing globalization

In this industry the cost of products i.e. apartments are such that it is very tough

for a normal Bangladeshi earning people to buy one for him. Business people,

higher level private employees and government employee with illegal earning

and pension can buy an apartment. So companies have to look for their

customers in abroad. Normally expatriate Bangladeshis have much higher

earnings than the Bangladeshi people. In the way, companies have to globalize

in search of customers in the markets where there are considerable number of

Non Resident Bangladeshis live.

Changes in the long-term industry growth rate

People in the country and especially in the Dhaka city are growing. People need

housing solutions. Apartment industry is providing housing solution to some

extent. For the housing need of the people this industry is bound to grow in

future. So long term industry growth rate is high in the industry.

Changes in who buys the product and how they use it

The apartments are normally family dwelling place. But now-a-days, for the

pressure of space, usages of apartments are changed a bit. In recent days

apartments in important areas are used as office space and sometimes for

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temporary school, college and even university campus. So those who use the

apartments for office and related purposes, their requirements of space are

different than normal dwellers.

Product Innovation

The product is here apartments. But there are a number of ways to adornment

the apartments. A sober finishing touch can change the whole scenario. The

internal fittings and finishing touch and also outer look of the building can give

the apartment a completely special appearance. Every apartment can be made

different according to the needs of the customers and by means of aesthetic idea

of the architects.

Technological change

Technology is changing in the industry gradually. First change came in the

scaffolding. Steel is used for scaffolding in place of bamboo. Then change came

in case of concrete mixing. Hand mixing is replaced with machine mixing.

Afterwards mixing plant is used. Concrete is mixed in the plant, carried to the

projects in liquid condition with special manner and then pumped to the

specified place with hose pipe. This innovation No real technological change

is.

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Marketing Innovation

In the industry competitive advantage is driven more by sales and customer

relationships than by manufacturing or product innovation. If a company can

roll over its investment again and again by selling their products quickly it can

gain swift market share.

Diffusion of technical know-how across more companies and more

countries

Knowledge diffusions in this industry occur in scientific and normal journals,

on site tour, word of mouth among suppliers and customers and

above all by the migration of employees. So in real-estate industry the

companies should be very precise about how much information they would

share to the Internet, customers, suppliers and even to the employees.

Changes in cost and efficiency

Widening or shrinking the cost advantage over other companies often creates a

driving force in the industry. In the real-estate industry, companies improved a

lot by their innovative and timely construction approach. As a

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result, people leaned towards them who can give better apartments with better

costs.

The market position of rivals:

The best technique for revealing the market position of the industry competitors

is strategic group mapping. A strategic group is a cluster of firms in an industry

with similar competitive approaches and market positions. Strategic group

mapping is a technique for displaying the different market or competitive

positions that rival firms occupy in the industry.

In this case study a strategic group map is drawn. Here price (low and high) and

degree of services offered (no-frill, limited and full) are taken as the two

competitive characteristics. Then the strategic group map is plotted using the

competitive characteristics. After that assign the firms in the same or different

strategic group according to their characteristics. Then the market share of

companies are taken from the REHAB’s data. Even the

REHAB is not sure whether the data are 100% accurate or not. The market

share of the companies are as follows:

Asset Developments and Holdings Limited 25%.

Eastern Housing-18%

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Concord-16%

Assurance-12%

Sheltech-8%

Building Technology & Ideas Ltd. 7%

Tulip – 4%

Others-10%

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Figure: Degree of services offered

No Frilled Limited Full

Pri

ce/Q

uali

ty

Low

Hig

h

ASSET

EASTERN HOUSING

CONCORD

ASSURANCE

SHELTECH

BTI

OTHERS

From the strategic group map above the following market conditions can be understood~

Asset provides almost the full services along with high quality.

Asset is the major market shareholder in the industry.

Tulip provides medium service with lower price than Asset.

Both Eastern Housing and Concord provide medium service with

medium price/ quality range.

Most of the new companies do not provide expected service and do not

maintain required quality in the industry.

Strategic moves that rivals are likely to make next

From the discussion above the future moves of the rivals of Tulip Peroperties

Limited. can be predicted as follows:

- Rivals are likely to merge to survive in critical condition.

- Competitive advantage through cost reduction.

- Expand geographic coverage to expatriate Bangladeshis.

- Serve consumers with guaranteed customer services

-Lower cost by sharing resources, technological know-how and

using same production facility.

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Key Success factors (KSFs) for the future competing success

Technology related KSFs: To be successful in future, the organization

need to have experts in innovating new technologies. Proven ability to

improve construction process where advancing technology provides the

way for higher manufacturing efficiency and lower construction costs.

Tulip has got a tested manpower who can give them sustainable

competitive advantage.Manufacturing related KSFs: Tulip started its

business in 2005. But the organization proved itself a quick learner. It

survived strongly in the competitive industry and consequently made

themselves the best apartment producer in the country. Its learning curve

is much higher than the other industry contenders. This learning curve

helped them to flourish in the industry very quickly within 04(four)

years.Marketing related KFSs: Tulip clearly gave emphasis on the

marketing and creating a brand name among the apartment buyers. Tulip

targeted the customer segments who might become the prospective

clients in future. The example can be given by successful advocate in

sub-urban

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area. Tulip targeted these kinds of people through their simple gifts. Thus

Tulip became known to its targeted customers. On the other hand, Tulip

for their land procurement keep close relationships with the potential

landowners and make them their working partner.

Skill and capability related KFSs: Tulip has got skilled work force,

strong supply network, design expertise, shortest delivery time (as per

agreement), supply chain management capability and strong

administrative capabilities that has made it a well contender for future

leadership in this industry. Actually Tulip is well prepared for future

challenges.Industry attractiveness and its prospect:If the following two

graphical results are analyzed, the future prospects of the industry can be

predictable.

Apartment Sold per year

5483

105

215

300

0

50

100

150

200

250

300

350

1 2 3 4 5

Year

Number of SoldApartment

From

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the analysis of the industry it is seen that the sales of apartments

increased gradually from 2007 to 2008 and after 2008 it had a sharp

increase up to 2009. In 2006 the number of apartments sold decreased

due to political and economic instability of Bangladesh. So it appears that

if Bangladesh Government continues its anticorruption program, then the

customers of apartments would be reduced. Because most of the people

buy apartments with illegal money. And the previous government gave an

opportunity to buy apartments and lands with the following rule: “If

someone gives 7.5% tax when he or she buy land or apartments,

government would not ask about source of income.” The new caretaker

government abandoned the rule. Hence the future of the industry depends

on political and economic conditions of the country.4. Analyzing

Company’s Resources and Competitive PositionTo analyze

the competitive position of a company following five factors:●

Performance of the company’s present strategy

● Company’s resource strength and weakness and its external opportunities and

threats

● Competitiveness of company’s price and cost.

● Strength of the company’s Competitive Position

● Strategic issues & problems merit front-burner managerial attention The five

factors are considered in relation to the company here and give an idea

what competitive position the company is holding.4.1 Performance of

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the company’s present strategy: The stronger a company’s financial

performance and market position, the more likely it has a well-conceived

and well-executed strategy. To have a clear picture of company’s present

strategy, the financial performance, growth and market position are

analyzed with the following indicating factors~Growth in Sales

Revenue: The sales revenue can increase even if the number of flats sold

remain constant. Because, the price of the apartments are increasing year

by year. But in case of Tulip properties Limited, the number of

apartments sold are also increasing. They target a 10% growth in sales

every year. They achieve even more than 10% increase in actual sales.

Hence their sales revenue are increasing day by day.Acquiring New

Customers: Tulip properties Limited acquire considerable number of new

customers every year. Buyers of apartments are normally one time

buyers. So, Tulip has to look for new customers every year. They make a

link with old customers and create new customers from the references of

their old customers. From the trend of apartment sales in Tulip, it is

observed that more than 50% customers are new customers every year.

So, Tulip’s customer group is getting larger day by day.Growth in

Market Share: There is no specific data for growth in market share of the

real-estate industry. But it can be assumed by the number of projects

running for each prominent firm in the industry. The number of projects

running:

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Name of the Developer Number of projects running 2009

Number of projects running 2010

Tulip Properties Limited 50 100

Dom-Inno Developments 100 150

Assurance 55 67

Sheltech (Pvt.) Limited 59 75

So from the above table it is clear that Tulip is the market leader in apartment

selling busyness. Tulip beat their rivals by a huge margin.

Improved Internal Performance: Tulip properties Limited developed an

improved strategy to survive in the competitive market. To implement the

strategy, Tulip properties Limited developed some basic ability which in the

long run became their core competency and distinctive competency. The

improved internal performances are~● Just-in-time inventory.

● Higher employee productivity.

● Shortest delivery time.

● Better quality products.Financial Performance Analysis (Tulip Management

Ratio): From the definition of Asset Turnover Ratio Total Asset Turnover can

be defined as Total operating revenues divided by Total average asset. The

ratio is intended to indicate how effectively a firm is using all of its asset. If the

asset turnover ratio is high, the firm is presumably using its assets effectively in

generating sales. All the asset turnover ratio is above 2. That indicates its

operating revenues are more than double its total assets.

26

Financia

l Performance Analysis (Inventory Turnover Ratio): Inventory turnover ratio

is found by dividing cost of goods sold by average inventory. Another term

called days in inventory is measured by dividing Days in period (normally days

in a year) by inventory turnover ratio. From the graph it is seen that inventory

turnover ratio is increasing that means days in inventory is decreasing year after

year.Financial Performance Analysis (Debt Management Ratio): The debt

ratio is calculated by dividing total debt by total assets. Debt ratio provides

information about protection of creditors from insolvency and the ability of

firms to obtain additional financing for potentially attractive investment

opportunities. From the graph it is seen that Tulip has Dept Ratio below 50%.

That means it has sufficient amount of own assets and it can take attractive

opportunity form market by taking loans.Financial Performance Analysis

(Profitability Ratio): Return on assets (ROA) describes the ratio of Net income

and average total asset. From the graph it is seen that the return on asset ratio

decreases at the initial stage because of the investments of the firms made to

27

increase market share in different markets. Then in 2003 the firm came to a

stable position and Return on assets increases.Financial Performance

Analysis (Profit margin on Sales Ratio): The ratio is defined as the ratio of

net profit divided by the total sales revenue. As like as all the ratios the profit

margin on sales was higher in 2005 and decreased up to 2009 and in 2008 and

later it increased gradually.REHAB Fair-2009: The biggest housing fair in

Bangladesh has just ended in January 09, 2010 organized by Real Estate &

Housing Association of Bangladesh (REHAB). Total 262 REHAB members

and 6 Financial institutions participated in 9th REHAB fair.The 5 days REHAB

exposition at Dhaka Sheraton Hotel was crowded by a large number of visitors

and potential customers of different income bracket.REHAB organized that fair

anticipating orders worth taka 1000 crore from it. Though they could not reach

their expectation but they have dealt orders of taka 450 crore at the end of the

fair.Customer Analysis:It was an auspicious opportunity to get huge

customer information in the fair. We got an opportunity to make a competitor

analysis also. Meeting with a large number of customers, we came to know their

need, want and demand along with their preferred location, apartment

specification. Here we like to enlarge on two specific points-Customer Query

Customer Response

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Customer Query :

From our interaction with customer, we found that people mainly prefer

apartments in downtown areas like Mirpur, Uttara, Mohammadpur etc. rather

than posh areas like Banani, Gulshan, Dhanmondi.

We have noticed that customers are mainly focusing on some specific factors

like.

Apartment Size: Most of the people are asking for medium sized apartment

(1200 to 1500 sft).

Environment: Customers are seeking for a good surrounding environment

considering green view, road side, parking facilities. Some customers show

negative approach towards commercial + residential apartment.

Feature & Amenities: customers consider seriously about the feature and

amenities of apartment like raw materials, fittings, architectural design, and

internal design.

Customer Response :

In the fair we got huge positive response from the customer. Among our

project, we found that people show great interest on Tulip Modhubag, Tulip

Maria and Tulip Zinnat Home which are mainly located in downtown area.

We also got almost similar response to Tulip South Breeze, Tulip Moonlit,

Tulip Moni Center( Comm.).

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Another remarkable fact was, people were really interested on the Cox’s Bazar

project that is Tulip Cox’s Marion. A huge number of people are interested in

Studio Flat in Cox’s Bazar.

SWOT Analysis:

SWOT Analysis is a marketing term by which any organization

can draw their position in the market very easily. We can find the

Strengths, Weaknesses, Opportunities and Treats of an

organization.

Strengths:

Visionary, capable leadership of management.

Flexibility and responsiveness in taking necessary

steps.

Dedicated employees and work force.

Apartment size variation.

Meeting customer need of both residential and

commercial apartment.

Maintaining the time frame.

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Weaknesses:

Very low market share.

Insufficient promotional activities.

Lack of professionalism of sales force.

Limited number of projects.

Opportunities :

Increasing number of customers.

Customer segmentation.

Threats :

Intense competition in market.

Choosy customer.

Increasing cost.

Findings:

i. Number of projects is not sufficient to meet huge

customer demand.

ii. Insufficient promotional activities.

iii. Information giving in brochure is not sufficient.

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iv. The fair was crowed by the customers mostly from

middle class.

v. People are preferring apartment in downtown areas

rather than posh area.

vi. Most of the people are asking for mid size

apartment (1200 - 1500 sft.)

vii. Customers are seemed to be choosy about

surroundings and feature & amenities of

apartments.

viii. Lack of proper competitor analysis.

ix. Lack of projects in demanded area.

x. Insufficient brochure of the project.

xi. Projects in Dhaka city has more demand rather

than outside of Dhaka.

These problems along with solutions are as follows-

1. Problem: Continuation of its Direct Selling Model Method along with

enlargement of business.

Solutions: New International Market Development, Diversification

through Merger and Acquisitions, Broadening the product line, Stay on

the leading edge of technological know-how, Market Penetration and

Pursue Associated Services Growth.

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2. Problem: Increased competition.

Solutions: More cost reduction in value chain by the participation of

suppliers, Low cost standardized product and keeping close contact with

retailers.

3. Problem: Centralized (Single-handed) decision-making

Solutions: Empower employees gradually, relate the performance of the

top management with minor profit sharing and also sharing loss to create

responsibility and decision making capability.

xii. At last but not the least we have provided some contingency plans (if

our suggested strategies will not succeed for some external or internal

reasons) for successful survival of the firm.

Recommendations:

I. It is important to develop same unique

selling proposition (USP)

II. Increase the quality and information of

brochure is necessary.

III. Some promotional activities should be

taken

IV. It is essential to train up the sales force

V. It is better to have some competitive

analysis.

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6.Strategic Task Analysis of Tulip Properties Limited

Tulip properties Ltd was established in 2005 and has grown into one of the most successful residential, leisure and commercial developers in Bangladesh. The company’s schemes are located in the most desirable and exclusive locations and the homes are built to a high quality specification that has become synonymous with the group. Driven by a passion for excellence, luxury and determination to deliver homes to its customers as quickly as possible, the company is working closely with contractors and providing the necessary support mechanism to deliver quality and timely completion of projects.  

The company is taking every step towards safeguarding its customer’s interest. TULIP Properties manage all their projects from start to finish, the company’s diverse range of expertise allows them to control land purchase activity, appointment of architects and designers, construction and sales and after sales service. In addition to support services provided by their DHAKA Head Office, the company’s comprehensive Customer Care Program provides solutions through its vast regional network with offices in Bangladesh and abroad.

Mission, Vision, Strategy

TULIP of tomorrow will become synonymous to "Quality Lifestyle Across Bangladesh”.

Our vision for Tulip is its transformation into one of the most valuable lifestyle developers in the country beyond real estate development.

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To become one of the most valuable companies in the country, TULIP will adopt a strategy of business segmentation to create different

business clusters functioning as different growth engines. These growth engines will grow and converge into a single entity known as "The Tulip Properties Ltd".

Respects considering the following criteria-

•Highest quality

• Leading technology

• Competitive pricing

• Individual and company accountability

• Best- in-class service and support

• Flexible customization capability

• Superior corporate citizenship, financial stability

Tulip has successfully implemented their strategy to fulfill

their mission. They have satisfied their customers with their

products and service and made their product a brandDell’s

Vision:

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HR Practices:

Tulip developed the following human resource practices in

order to enhance their performance of output.

• Direct Relationship built on Trust.

• Corporate environment based on Meritocracy, Personal

Achievement and Equal Access to all available opportunities.

• Best practices in Policy development, Training, Recruitment,

Mentoring, Development, Advancement and Culture Change.

Tulip’s R & D Practices & Corporate Governance:

R & D Practices:

• Track & Test: Tulip at first track the best opportunities and

test them whether it fits with the products of Tulip.

• Global Presence

– Widely diverse range of ideas and employee skills.

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– Extremely broad understanding of global customer

needs.

– Global supply network improves quality, lowers cost.

– Affordable technology to new and emerging markets

• Innovation Facility Around the Globe.

Corporate Governance & Ethical Issues:

• Ethics & Values – Trust, Integrity, Honesty, Judgment,

Respect, Managerial courage and Responsibility.

• Role of Board of Directors – Majority of Directors are”

independent”. They have the right to veto in any issue.

• Role of Management.

Conclusion:

Tulip Properties Ltd. is a full service real estate developer located in

Bangladesh.  Our team of Realtors specializes in helping clients buy and sell

residential properties throughout the country.  The agents at Tulip are

experienced, friendly, and honest.

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