Chapter 4: Strategic Management Practices

4.1 Corporate Level Strategy

4.1.1 Growth Strategy
Concentration
• Vertical Growth
Vertical integration is a strategy that allows a company to streamline Raw Materials
its operations by taking direct ownership of various stages of its
Manufacturing
production process rather than relying on external contractors or
suppliers. (HAYES, 2022)
Wholesale
PFIL has vertically integrated both into the Panel-based and timber- Marketing
based furniture industry. PFIL achieves vertical integration by
establishing its own suppliers, manufacturers, distributors, retail locations
rather than outsourcing them.
Retail
Because of vertical integration, Partex enjoys some competitive Showroom
advantage compared to its competitors.
□ Partex has invested Tk.100 crore in the furniture industry and this Export
huge investment acts as an entry barrier to its potential new
entrant. E-Commerce

□ Partex will also be able to realize Economies of scope since they are fully integrated in the
furniture industry i.e. from producing raw materials to distributing them.
Thus, the two SBUs in the furniture industry: one is timber based furniture and the other is panel-
based furniture

4.1.2 Designing the Business Portfolio

“Business portfolio is the combination of businesses and products that make up the company”
Management’s evaluation of the products and business of the company is called portfolio analysis.
(Philip Kotler, 2018). This is one of the most critical and critical tasks in the strategic planning
process. Company will put more resources in the profitable units and may drop investment in
weaker businesses.
4.1.3 Business Portfolio of Partex Star Group
Partex Star Group
Division CX 1 (Partex)
1. Star Particle Board Mills Limited
2. Partex Furniture Industries Limited
3. Partex Builders Limited
4. Partex Laminates Limited
5. Partex Agro Limited
6. Partex PVC Industries Limited
7. Star Adhesives Limited
8. Partex Cables Ltd.
9. Partex Power Generation company
Ltd.
10. Star Gypsum Board Mills Ltd.
11. Triple Appeal Ltd.
Food Division CX 2 (Danish)
1. Danish Condensed Milk BD Limited
2. Danish Milk Bangladesh Limited
3. Danish Foods Limited
4. Danish Dairy Farm Limited
5. Danish Distribution Network Limited
6. Danish Multipurpose Farm Limited
7. Partex Tissue Limited
8. Rubel Steel Mills Limited
9. Shubornobhumi Housing Limited