BUS203 MIDTERM FALL 2020

Business Environment (BUS203)

Section: 03
FALL2020

Submitted by
Al Zawad Ahmed Ohi
Student ID: 18101020

Submitted to
Mohammad Tariqul Basher
Designation: LECTURER

BRAC Business School

BRAC University
Date of Submission: 21TH NOVEMBER,2020.
 1.(A) In terms of technology transfer, where does the IT sector of Bangladesh
stand? Discuss the rationale behind your answer within 500 words.

In order to share knowledge, technology, manufacturing methods et cetera, organizations such

as universities and businesses of any size, often share technologies between themselves. This
process is called technology transfer. 

Bangladesh has been following the path of digitalization for the past decade. The country has
come a long way in terms of technology transfer. Technology transfer follows a certain process.

This process includes disclosure of invention, the evaluation of said disclosure, the filing of the
patent application, the assessment of the technology and using the assessment to market the
technology, the licensing process, and finally commercialization of the technology and put it in
the hands of the public.

This process is followed in Bangladesh as well. Having said that, due to the existence of
bureaucracy in our system, technology transfer often becomes a complicated and lengthy
process. There is also the fact that many of the people in our country do not understand the
importance of following the required steps accordingly. Which also creates hassle for both the
applicant and the administration. 

The IT sector of Bangladesh has been strengthening their policies gradually to improve the
efficiency of technology transferring. However, it is to be considered that at least seventy
percent of the people of our country live in rural areas. Moreover, despite the literacy rate of
Bangladesh increasing to about sixty-four percent, most of them are not fluent in English, nor
familiar with the procedures of technology transfer. Which is a major drawback for the IT sector,
as this affects the economy of the country terribly. 

So, in my opinion, regarding technology transfer, the IT sector of Bangladesh is a work in

progress. The sector is improving gradually, but has not reached the level of efficiency required
in a technology driven country. I would also like to point out that it is not only due to the
bureaucracy in the system or the lack of policies by the government, but also the ignorance and
disinterest of the general public and puts the country at a disadvantage. 

1. www.jsums.edu. (n.d.). Technology Transfer Process | Technology Transfer and

Commercialization. [online] Available at:
https://www.jsums.edu/technologytransfer/technology-transfer-process.

2. en.m.wikipedia.org. (n.d.). Technology transfer - Wikipedia. [online] Available at:

https://en.m.wikipedia.org/wiki/Technology_transfer.
 1(B).  World Intellectual Property Organization (WIPO) has released Global
Innovation Index (GII) on September 2, 2020 in which Bangladesh ranks 116th on
overall innovation indicators among 131 economies. Discuss within 500 words,
how lagging behind such capability is affecting Bangladesh’s IT sectors capability
in the global arena?

World Intellectual Property Organization (WIPO), one of the specialized agencies of the United
Nations, protects as well as promotes the intellectual properties all over the world by working
alongside with countries and organizations. The agency has published the Global Innovation
Index (GII) on the 2nd September, 2020. Global Innovation Index is a ranking of countries
based on their accomplishment in factors such as capacities and success in innovation. 

Bangladesh has ranked 116th among 131 economies. This lagging behind in such a crucial
capability certainly does not paint the IT sector of Bangladesh in a positive light internationally. 

At the present time, the ability to invent new technologies in order to improve the living quality of
the people is tremendously important. Not only that it displays the capability of the IT sector of
the country in front of the international community, but also affects the economy greatly.
Bangladesh has not been able to capacitate or succeed in developing newer technologies.
Which disadvantages the image of the country's IT sector enormously in regards to the
international arena. 

1. en.m.wikipedia.org. (n.d.). Global Innovation Index - Wikipedia. [online] Available at:

https://en.m.wikipedia.org/wiki/Global_Innovation_Index. 

2. t‌o, C. (2001). specialized UN agency focused on intellectual property protection. [online]

Wikipedia.org. Available at:
https://en.m.wikipedia.org/wiki/World_Intellectual_Property_Organization

2(A).  Within 500 words, define the Micro environmental factors of Aarong.

Micro environmental factors are the elements of a company that define their immediate
environment. These factors affect the performance of the company majorly. The micro
environmental factors include elements such as suppliers, competitors et cetera. 

Aarong is one of the most prominent brands in Bangladesh. The brand mainly focuses on the
rural and traditional aspects of the country through their products. Aarong has single-handedly
rebranded the image of Bangladesh’s handloom crafts, pottery, and has endorsed
craftsmanship in rural areas that created employment for thousands of people. 
Aarong's micro environment includes the external customers of the organization, their
distributors who are also known as agents, their competitors such as K-Craft, Deshi Dosh et
cetera, and Aarong's suppliers.

These major factors have helped Aarong achieve the success they did. If even one of these
elements were absent from the environment, the performance of the company and the image of
the brand would be affected badly.

1. Lumenlearning.com. (2019). Microenvironment vs. Microenvironment | Retail

Management. [online] Available at: https://courses.lumenlearning.com/wm-
retailmanagement/chapter/microenvironment-vs-macroenvironment/.

2(B).  The Rana Plaza Disaster in April 2013 illustrated the failure to successfully
implement and monitor international labor standards. Within 500 words, discuss
how it affected the MNCs and did it affect their choice of entry strategy in
Bangladesh?

One of the most terrible incidents in the world includes the Rana Plaza Disaster that had
happened in the April of 2013 in Bangladesh. This has been marked as one the major violations
of international labor standards.  

Due to the incident, many international companies refused to renew their contracts with
Bangladeshi garments. It had affected the economy terribly and around the same time, the laws
regarding those standards were made stricter than before. 

The major MNCs changed their choice of entry strategy in Bangladesh as most of the garment
factories did not follow the international labor standards. Even now many garment owners have
not implemented the required rules. This tarnished the image of Bangladesh in the international
community. 

Till this day, the Rana Plaza Disaster is given as an example of what could happen if the labor
standards that are internationally recognized are not implemented. Neither the government of
Bangladesh, nor the Bangladesh Garment Manufacturers and Exporters Association (BGMEA)
had monitored the environment of the workplace of the garment workers back then. Which
resulted in the loss of thousands of lives. There was also involvement and influence of a certain
political party to protect the owner of the garment factory, who was the prime accused. That also
painted the country in a negative light. 

Rana Plaza Disaster is remembered every year and it is one of the prominent incidents that
shook the world to the core, and the government of Bangladesh to reevaluate their stance on
worker protection.