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Processor Intel Pentium Dual Core 3rd Gen 2020M-2.4ghz
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Laptop & Notebook
Manufacturer Warranty 01 Year international Warranty
Dear Rashed Bhai,

Slot15p03 is free with STM-1 module at Comilla 1660SM. You can use this port. For physical connection MUX
side optical connector is LC/PC.

Regards,
Toufiq
An exclusive interview with Sabbir Hasan Nasir, Chief Executive Officer, Otobi,
SOUTHASIA: Otobi has become a trademark for Bangladeshs furniture industry over
these past decades. It also continues to thrive under your new leadership as the CEO of the
company. How do you see this transition?
Sabbir Hasan Nasir: Similar to other South Asian countries, Bangladesh is a blend of semi feudal
and semi state controlled capitalism with a recently emerging emphasis on entrepreneurial
culture. Leadership roles are crucial when developing a trademark company like Otobi. When
water begins to evaporate, few of the molecules remain in the water; when it starts to vaporize,
one of them takes responsibility and leads. Otobi is one of the first and foremost organizations in
Bangladesh where proper corporate culture and the concept of corporate citizenship were
introduced and established. Formerly, Otobi was known as a medium-sized enterprise, founded
by a reputed artist and sculptor, where the owner and his family used to control most of the
operation. In this transition, we re-engineered the culture to allow it to become one of the most
successful large corporate houses in South Asia. Spanning for past four years, the number of
employees, the value and volume of the business quadrupled with vigorous expansion into local
and global diversified enterprises and portfolios. Numerous global best practices shaped the
primary business process providing us with a sustainable competitive advantage and forming a
unique business model in furniture manufacturing and retail.
SA: What are the prospects of doing business in a fast growing economy like Bangladesh?
SHN: When compared to many other South Asian countries, Bangladesh is a reasonably
investment friendly country with least number of barriers in terms of mode of entry and relative
political stability. However, when compared with other developing economies, red ribbon of the
bureaucracy is still a major obstacle. Energy and infrastructure are ongoing issues which prevent
some businesses from performing at an optimal level. An abundance of opportunities are
available for business houses that can combine low level cost with great talent.
SA: Do you face any impediments in furthering your business agenda inside Bangladesh?
SHN: A hundred years ago when we were part of the British colony, some so called educated,
elite civil servants were placed to ensure that the British empire could exploit our countrymen
and our resources and they were set as symbolic icons for the people to follow. Descendants of
these civil servants are the new and current bureaucrats of Bangladesh who set the public policy
and control the private sector. Rather than facilitating they fancy themselves the embodiment of
the British era civil servants who possess all the power and can do as they wish. Public-Private
Partnership, a new notion introduced by the World Bank is just another tool for controlling the
private sectors by restricting their business operations through complicated contracts. It still
remains a term which is yet to be practiced and we are still to see the potential of true
partnerships open up. Our raw material duty was set from 49% to 83%; just imagine the impact
on the business! Not enough heed was paid to the private sector and no body of the government
discussed the matter during the pre-budget session. Transfer of fund from Bangladesh to any
other country in the world is restricted in the name of controlling terror financing. I believe
great ideas and the spirit of entrepreneurship should flow across the boundaries in this so called
free world and free economy. Why cant we have Otobians across the world? Why cant we set
Otobi everywhere? The local circumstances are imposing fiscal and monetary barriers, especially
where regional and global expansions are concerned. Land and energy are the second and third
ranked problems; acquiring proper land takes at least a year and is quite a complicated process.
SA: If yes, does it also result in hampering your business activities in the region?
SHN: Yes, it does. We only receive 7-8% of the duty drawback. Rigid bureaucratic control lacks
practical consideration; therefore when the government changed the raw material duty it
simultaneously crippled the competitive position of Otobi in other regions.
SA: What future do you envisage for your company and how do you plan to go about it?
SHN: I believe race, religion, language and/or culture can never stop human beings from
intertwining with one another like the roars of waves united in a sea. Idea matters in this world
and particularly in our time. Otobi life is a great idea. Keep Reinventing - Otobis latest brand
positioning is an appeal which is universal and essential. I envision Otobi as a global brand
sprouting in ten countries in the form of franchises over the next 10 years and in different
continents over 20 years. I see numerous South Asian brands soaring like birds from our
subcontinent soil to all corners of the world.
Otobi Profile
Otobi began its journey in 1975 when painter and sculptor Nitin Kundu set up a small woodcraft
workshop in Dhaka. Over the years, Otobi transformed into a widely recognized brand, capturing
80 per cent of the branded furniture market in Bangladesh. Known for its superior quality and
fine designs, the company today has 16 showrooms across the country and employs 5,000
people. With a wide range of distributors and dealers, Otobi is also present in 7 cities in India. It
is a furniture company that does not compromise on its designs or in the quality of wood. In
2006, a new leadership took charge of the company, headed by Animesh Kundu as Managing
Director and Sabbir Hasan Nasir as the CEO and in consensus with founder Nitin Kundu. Later,
in 2008 Otobi built its 4th ultra-modern factory in Savar, Dhaka, the first of its kind in South
Asia.


SWOT Analysis of Otobi
Strength:
First Multinational company in Bangladesh
Strong Market Share
Strong & aggressive Promotional activities
Effective Market Segmentation
Elusively Customer oriented
Strong Brand values
Flexible manufacturing
Strong motivating activities i.e. Well-organized Employee rewards system

Weakness:
Lack of consultancy services.
Limited access to quality inputs.
Absence of skilled work force.
Price of OTOBI Product is little bit high compared to others
Problems in distributing the furniture products.
Shortage of raw materials.
Inadequate supply of production technology

Opportunity:
Used advanced & cost efficient Technology
Growing Market Share: Established it as one of the market leader in ASIA within 2020.
Changing Culture: With the change in culture and fashion, people are looking for stylist, well
designed furniture for their houses, offices and shops. This opens a broad market opportunity
for OTOBI.
Threats:
Strong Market Competition
Political Unrest
Restriction on Use of Plastic



SOURCES OF COMPETITIVE ADVANTAGES OF OTOBI LIMITED

1.0 INTRODUCTION

1.1 Origin of the Report. This report was authorized by the course instructor AFM Abdul Moyeen, PhD to
write a term paper on the course Strategic Management as a part of MBA program. This report is
written by group 4, composed of four members as envisaged in the title fly. The report was submitted
on 19 October 2002.

1.2 Objective. The objectives of this report are:
To carry out SWOT analysis of OTOBI Ltd
To evaluate the sources of competitive advantage of OTOBI Ltd
To analyze the functional level strategy implemented by OTOBI Ltd
To study the nature of the business level strategy followed by OTOBI Ltd
To explore the corporate level strategy pursued by OTOBI Ltd

1.3 Sources and Methodologies of Collecting Information. The information necessary to write the repot
was collected both from primary and secondary sources. Organizational survey and interviews were
done to gather the information. All possible efforts were made to ensure the credibility of the report to
the maximum extent at the time of writing the report.

1.4 Report Preview. Since OTOBI is the leading laminated board furniture manufacturing company, we
have chosen this company to evaluate its sources of competitive advantage. As efficiency, quality,
innovation and customer responsiveness are the main building blocks of competitive advantages;
therefore these are discussed elaborately under functional level strategy. An effort has been taken to
relate the theoretical knowledge with current strategies followed by OTOBI to achieve competitive
advantages. This paper attempts to highlight business and corporate level strategy pursued by OTOBI as
well.

2.0 BRIEF BACKGROUND OF THE ORGANIZATION

2.1 Background. OTOBI Limited is one of the leading world class furniture manufacturers of its kind in
the country. Over the two and half decades of tireless endeavor, OTOBI earned the fame and image of
the unique manufacturer of world class products. OTOBI received National Business Award as
Enterprise of the Year for year 2001. It makes all kinds of metal, laminated board and plastic furniture.
The functional utility and durability with the elegance of OTOBI products earned the reliability and
confidentiality of the customers. Currently OTOBIs product range cover the office furniture, household
furniture, plastic furniture, hospital furniture, computer furniture, kitchen cabinet, work station, storage
rack, decorative items and interior decoration. Besides these crests, trophy, medal, gift box etc are also
the products of OTOBI.

2.2 Founder of the Organization. Countrys famous artist Mr. Nitun Kundu is the managing director of
OTOBI. His endless efforts, creative idea and professionalism brought OTOBI at present state. Painter
and sculptor Mr. Nitun Kundu graduated from Institute of Fine Arts, Dhaka in 1959, and secured first
class first position. The same year he started his career as a designer in the United States Information
Services (USIS) Dhaka. He left USIS as chief designer in 1971 and participated in the liberation war. After
the war he turned into a free lance painter. In 1974 he conceived the idea of embarking into commercial
venture and started manufacturing decorative items at his residence. The name of his mini workshop
was The Designer.

2.3 Introductory stage of OTOBI. Mr. Nitun Kundu set up a small workshop in a tin shed at Topkhana
road in Feb 1977 and named it Art in Craft. Here in addition to coat pin, cup, crest, trophy etc he
started manufacturing decorative items, table lamp and various types of metal furniture. In Bangladesh
traditionally wooden furniture are used, but forest resources being extremely limited, Mr. Nitun Kundu
anticipated the need for metal furniture and in 1978 and he opened a show room at New Elephant
Road, Dhaka and gradually started marketing all kind of metal furniture in a proper manner.

2.4 Growth of the Organization. In 1984-85 Mirpur factory building was constructed. All kind of metal
furnitures were being manufactured at Mirpur factory and marketed through the show room at
Elephant road by 1988. The quality of OTOBI products as well as sales and marketing methods was so
successful that by 1992 Mr. Nitun Kundu constructed a four storied building at Dilkusha C/A and opened
a display center on October 1993. OTOBI set up another factory at Shyampur with continuous market
demand, which went into experimental production in 1994. The factory is now full operational with
latest machines to manufacture a wide range of most sophisticated furniture so that it can compete in
the international market.




3.0 IDENTIFICATION OF INTERNAL STRENGTHS AND WEAKNESSES

3.1 Internal Strengths: Strengths of OTOBI are as follow:
Skilled Workforce. OTOBI possesses a skilled and efficient work force. While shifting its manufacturing
plant from Mirpur to Shyampur it took all of its skilled work force along with it.
Dynamic Leadership. The founder of OTOBI, Mr. Nitun Kundu, is a dynamic person with lot of innovative
skills. He is a famous architecture of our country. As Managing Director, he has lead OTOBI to establish
itself to be a world class furniture manufacturer.
Well Facilitated Production Site. Initially the production site of OTOBI was located at Mirpur which day
by day became overcrowded. Thats why OTOBI had to shift some of its production facilities to
Shyampur, located beside Dhaka-Narayangang highway. There by they could also avoid burden of
municipal tax and other costs.
Good Marketing Force. The marketing department of OTOBI is composed of good number of skilled
marketers. The brochures published by this department can not but attract every cultured person.
R & D. There is an R& D section in OTOBI which is guided by the MD himself. As the Managing Director
of OTOBI is very innovative he keeps himself involve in R&D as well as encourages his employees for
even small innovation.
3.2 Weaknesses. OTOBI has the following weaknesses:
Failure to Follow JIT. One of the main components of OTOBIs product is imported from Malaysia,
Thailand and Singapore. Due to political unrest OTOBI keep huge buffer stock to meet contingencies.
Which makes it unable it to follow JIT. Some times this stock becomes so large that OTOBI has to stop its
further selling, and disposes the raw material first.
Price of OTOBI Product. For the general people of Bangladesh price of the OTOBI product seems to be
little high in comparison to other wood made furniture, which restricts it to get a large customer group.

3.3 Opportunities. OTOBI has the following opportunities:
Growing Market Share. Starting from the small corner of the kitchen of a home maker up to the
luxurious work stations of the top executives, OTOBI has successfully established foothold through its
various type of furniture.
Changing Culture. With the change in culture and fashion, people are looking for stylist, well designed
furniture for their houses, offices and shops. This opens a broad market opportunity for OTOBI.
Growing Concern on Forestation. Every year large portion of forest have been wiped off by the wood-
businessmen for preparing the wooden furniture, which has a devastating effect on the environment of
our country. Now people have become more conscious about forestation, they have started looking for
furniture made of other substitute materials as OTOBI offers.
3.4 Threats. OTOBI has the following threats:
New Competitors. Recently in our country a good number of firms are coming up with their innovative
and competitive furniture like Partex, Tanin, Akiz Partex. There is also some foreign furniture being
imported which becomes threat to OTOBI products.
Restriction on Use of Plastic. Recently government has imposed restriction in use of polythene bag due
to its detrimental effect on the environment. Government is also thinking to impose restriction on other
plastic materials subsequently. As OTOBI is using a good amount of plastic material to produce its
product therefore this restriction may become a threat to OTOBI.
Use of Rot Iron. Use of rot iron as furniture is also becoming popular day by day with the change of
culture and fashion. It is also becoming a threat to OTOBI.
Political Unrest. Political unrest is a normal phenomenon in our country. Supply of raw materials and
production schedule often gets stuck up due to strike and other political unrest. Thus it hinders the
activities of OTOBI like all other industries.

4.0 LITERATURE SURVEY

4.1 Efficiency. A business is simply a device for transferring inputs into outputs. Inputs are basic factors
of production such as labor, land, capital, management and technological know how. Outputs are goods
and services that the business produces. The simplest measure of efficiency is the quantity of inputs that
it takes to produce a given output. That is efficiency= output/input. The more efficient a company, the
few inputs required producing given output. Efficiency helps a company attain a low cost competitive
advantage. The most important component of efficiency for many companies is employee productivity,
which is usually measured by output per employee.

4.1.1 How to Achieve Superior Efficiency. Superior efficiency can be achieved at functional level. First
various primary functions of production and marketing, then various functions of supporting activities of
the firm will be discussed.
4.1.1.1 Production and Efficiency. Efficiency is the measure of producing outputs from limited inputs.
Production can influence efficiency in the following way:

4.1.1.1.1 Economies of Scale. Economies of scale are unit cost reduction associated with a large output.
One source of economies of scale is the ability to spread the fixed cost over a large volume of
production. Another source of Economies of scale is the ability of the company producing in large
volume to achieve a greater division of labor and specialization.

4.1.1.1.2 Learning Effect. Learning effect are cost saving that come from learning by doing, for example
learns by repetition how best to carry out a task. In other words labor productivity increases over time
and unit cost falls as individual learns the most efficient way to perform a particular task.

4.1.1.1.3 The Experience Curve. It refers to the systematic unit cost reductions that have been observed
to occur over the life of a product typically decline by some characteristics amount each time
accumulated output of the product is doubled.

4.1.1.1.4 Flexible Manufacturing. The idea economy of scale is that the best way to achieve high
efficiency, and hence low unit cost, is through the mass production of a standardized output. Wide
product variety makes it difficult for a company to increase its production efficiency and thus reduce its
unit cost. The flexible manufacturing technology covers a range of manufacturing technologies designed
to:
Reduce set up time for complex equipment
Increase the utilization of individual machines through better scheduling
Improve quality control at all stages of the manufacturing process

4.1.1.2 The Marketing and Efficiency. The marketing strategy that a company adopts can have a major
impact upon the efficiency and costs structure of an enterprise. It refers to the position it takes with
regard to pricing, promotion, advertising, product design and distribution. The important role of the
marketers is to reduce customer defection rates and building customer loyalty.

4.2 Quality. Within any given industry some companies are more profitable than others as those
companies have some sources of competitive advantage like quality. Quality products are goods and
services that are reliable in the sense that they do the job they were designed for and do it well. The
impact of high product quality on competitive advantage is two fold:
High quality products increase the value of those products in the eyes of consumer. In turn this
enhanced perception of value allows the company to charge a higher price for its products.
The second impact of high quality on competitive advantage comes from the greater efficiency and the
lower unit costs it brings. Less employee time is wasted making defective products or providing
substandard services and less time has to be spent fixing mistakes, which translates into higher
employee productivity and lower unit cost. Thus high product quality not only lets a company charge
higher prices for its products, but also lowers cost. This relationship will be much more clear if we follow
the figure given below: