MGT210.

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Business Project on “United Finance Limited”

Submitted To:
Mohammad Asif Gazi (MAG)
Lecturer, Department of Management

School of Business and Economics

North South University

Submitted By

Name ID
Samsun Nahar Kakoli 1320324030
Mahmudur Rahman Ivan 1110052030
Nusrat Jerin 1330158030
Md. Mohiul Islam 1330421630

Date of Submission: April 21, 2018

 Letter of Transmittal

April 21, 2018

Mohammad Asif Gazi (MAG)

Lecturer, Department of Management

School of Business and Economics

North South University

Subject: Submission of the Business Project on United Finance Limited.

Dear Sir,

With due respect, we want to inform you that we are submitting our Business Project on “United Finance

Limited”. The four-month journey of MGT210 has been a great experience to us as it provided with wide

experience to the professional environment. We have tried our level best to follow the guidelines that you

provided. The whole experience of this course enabled us to get an insight into the real life situation as well

as the corporate world.

We sincerely hope that this report meets your requirements and demonstrate our ability to present Business

report. We would be glad to explain you with any clarification if required. Please contact at

nsu.kakoli@yahoo.com for any further query or criticism regarding this business project.

Sincerely yours,

Name ID Signature

Samsun Nahar Kakoli 1320324030

Mahmudur Rahman Ivan 1110052030

Nusrat Jerin 1330158030

Md. Mohiul Islam 1330421630

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 Executive Summary

United Finance is a Bangladeshi non-bank finance institute formerly known as United Leasing

Company and changed into United Finance in 2014. It provides financial services, such as

investment, lease, loan, term finance, channel financing. HR department is outstanding amongst

other department in United Finance Limited. The report incorporates the exercises of their

activities and other things which we get after our research on this company. We have accumulated

viable learning which we learned our managerial course. This experience has filled in as a genuine

showing of work at an association and it has given us the chance to get involvement about the

corporate culture which would be a point of reference in our profession. This is a cover the subject

"Overview of United Finance" done as a prerequisite of us specialty as a course think about. In this

report, we have shared our encounters and discoveries from this entry level course and other related

data. In the report, we have quickly presented the theme, errand dole out as an assistant, criticalness

of the examination, technique and has been talked about the institution profile with brief history

and company’s main goal, vision, vital plans and destinations. The principle body is containing

data about managerial things and that is the most essential piece of this report, the genuine

assignment part contain data about what undertaking we had done in our mgt210 course and project

part containing the data about the improving managerial service in Bangladesh through United

Finance. At last we have given the discoveries and proposal in view of experience.

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 Table of Contents

Topics Name Page Number

2.Introduction 5

3.Methodology 6

4.Managerial Functions 7-8

5.Basic Functions of Management 8-9

6.Internal Resources 9

7. Social Responsibilities Performed 9

8. Innovation Strategy 9-10

9. Motivation Strategy 10

10.Strategic Management 10

11. Leadership Strategy 11-12

12.SWOT Analysis 12-14

13.PESTLE Analysis 14-15

14. BCG Analysis 15-18

15.Porter’s Five Forces Analysis 18-21

16.Reflecting Issue 21-23

17. Conclusion 24

18. References 25

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 Introduction

United Finance Limited started its journey as United Leasing Company Limited in 1989

with a single product focus. Duncan Brothers Limited, a well established company

operating in Bangladesh for over 150 years, Asian Development Bank, Commonwealth

Corporation along with several local and international corporations came together to form

this institution .The Company has emerged as one of the leading Finance Companies by

providing the best financial solution to the different customer segments and thriving healthy

growth with consistency in profit. The Company is dedicated to maintain the highest level

of ethical standards, professional integrity, corporate governance and regulatory

compliance. As a result, United Finance is perceived as a strong financial institution and

player in the finance industry. United Finance is committed to meet the customers’

expectations by offering wide range of financial products and financial services in all area

of its business along with continuous improvement in its service. It operates through 19

business offices across the country bringing all 64 districts under its financial coverage.

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 Methodology of the Study

This report is qualitative between natures. In-depth interview regarding the company

personnel, a range of professional file are analyzed in accordance with acquire the

information. Personal interview was instituted out of the officials on exclusive wings over

HR Department. The study incorporates a considerable aggregation regarding information

yet information. We hold accompanied incomplete methods after gather the information.

This report preparing in accordance to:

1. Primary Data

2. Secondary Data.

Primary Data: For collecting primary data we have followed interview method like face to

face Conversation with the head of the department, Branch Manager and respective officials

of United Finance.

Secondary Data: we have collected secondary data through different type of published data

like annual Report of United Finance, NBFI Level rules, United Finance General

Regulation Organizational Chart, Journals and relevant books and files and documents.

The company’s important managerial functions

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 Planning:

Customers: UFL is planning to ensure that their service quality exceeds customer

expectation in terms of timely delivery, fairness in treatment and value addition.

Risk Management: UFL is planning to manage risks and adhere to international best

practices by their activities.

Shareholders: They also are planning to maximize growth in earning per share.

Employees: UFL is planning to provide a stimulating and challenging yet congenial work

environment, invest in training to harness full potential and compensate on performance

basis.

Organizing:

They are allocating staff to tasks ordering materials and allocating their different

department for different tasks. They also are allocating their product services by their

proper planning system.

Leading:

The United Finance Limited is leading through ensuring the quality of services and the

competence of its staff shall operate as a modern, dynamic, effective, and forward-looking

organization to manage the monetary and financial system with a view to stabilizing the

internal and external value of Bangladesh.

Controlling:

➢ Devote continuous effort to improve products and services for sustaining competitive edge.

➢ Ensure service excellence by leveraging motivated human resources and technology.

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➢ Manage risks and costs to ensure sound financial performance and adequate return on all

investments.

Basic Function of Management

1. Staffing. Staffing includes the development of a strategic plan to determine how many

people you might need to hire. Based on the strategic plan, management then performs the

hiring process to recruit and select the right people for the right jobs.

2. Basic workplace policies. Development of policies to help reach the strategic plan’s

goals is the job of management. After the policies have been developed, communication of

these policies on safety, security, scheduling, vacation times, and flextime schedules should

be developed by the top management. Of course, the managers work closely with

supervisors in organizations to develop these policies.

3. Compensation and benefits. In addition to paychecks, health benefits, and other perks

are usually the responsibility of a manager.

4. Retention. Assessment of employees and strategizing on how to retain the best

employees is a task that managers oversee, but other managers in the organization will also

provide input.

5. Training and development: Helping new employees develop skills needed for their

jobs and helping current employees grow their skills are also tasks for which the HRM

department is responsible. Determination of training needs and development and

implementation of training programs are important tasks in any organization.

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 6. Regulatory issues and worker safety: Keeping up to date on new regulations relating to

employment, health care, and other issues is generally a responsibility that falls on the

HRM department.

Internal Resources

➢ Sales

➢ Credit-sale financing

➢ Information Technology

➢ Collection

➢ Human Resource

Social responsibilities performed

United Finance Company Limited provides services and offers products to certain segments of

markets. The markets are diversified and identifiable for the customers and clients as well. Thus the

markets are doing maintain some social responsibilities providing through Small and medium scale

loan for the customers with low interest rate.

Innovation strategy

United Finance limited using online portal system for providing their services. So any customer can

easily apply for loan by online. And they are also using online recruitment system for recruiting

the candidate by that online portal which is very innovative. When we talked to branch manager

about their innovative strategy, he let us know there have some internal online system. They use

lane-system for communicating their online activities and communicating with their others

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branches, so we can say that they are following some innovative strategy which makes their task

easy.

Motivation Strategy

Motivation is a process that account for an individual’s intensity, direction, and persistence

of effort toward attaining a goal or the organizational goals. For a manager motivating the

subordinates is the most difficult and technical task. If a effective motivational tool is not used it

will create dissatisfaction and employees will feel negative about their work. As a result

company productivity will go down.

The branch manager himself is a very motivated person. He thinks while doing a job people work

harder if he or she knows that by doing that job he or she might be rewarded. They give

transportation system, Lunch for all employees. They also give promotion by work performance

which actually helps to motivate employees. That need of achieving something or recognition

drive people to work hard and they desire to go to higher level so that they can have more of

everything based on those achievement. Also he thinks people feel a need of a safe, friendly,

comfortable and fair working environment to perform better. He not only follows these

statements in his personal working life to motivate himself but also apply on the subordinates

under him.

As we know a theory named McClelland’s need theory where there is need for achievement;

need for power and need for affiliation we can relate these to our manager’s statements.

According to theory these 3 needs motivate people to work hard for goal. That’s why we can say

that UF is following this theory to motivate employees.

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 Strategic Management

Strategic Management: UF follow the concept and process of strategic planning for doing their

work in a nice manner. Sometimes they do strategic analysis for measuring their activities. And

they also do Strategy formulation and development throughout their operation. After that they do

Strategy implementation for establishing their actual process. If they find out any problems then

they follow the process of Strategic Control.

Leadership Strategy

Leadership style is a leader’s strategy or way of providing direction, motivating employees and
implementing plans. There are many different leadership styles. A leader always follows his or
her style to take necessary actions. Fiedler believes that behind the success of any leader there
remains an individual’s basic leadership style. A leadership style is exhibited by a leader in the
political, business or other fields.

The vice president of UFL, Mr. Imran is a good leader indeed. He is performing well at his work.
He follows mixer version of the Autocratic and Democratic leadership style. Because he makes
the work plan by himself and he doesn’t take opinion for doing that. But he helps his
subordinates to understand that routine. He is very conscious about his work timing and also
cares for subordinates like a father. He maintains a professional relationship with the
subordinates and employees. As he is very much conscious about time, he remains strict about
the performance of given task.

However, he listens to the employees and tries to make their task easier and motivate them in a
different ways. He keeps a smiley face but don’t let the employees to take chance of it. He tries to
make the employees motivated and inspired to do their job independently and eagerly. But he
wants them to remain loyal and honest to him.

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As the theory of Autocratic leadership manager follow strict rules and maintain a very

professional relation. This is task oriented behavior of the manager. And Democratic is the theory

that suggests a manager should have very friendly relation with employees and care for them as a

father which indicates a relationship oriented behavior of a manger. Mr. Imran care for employee

but at the same time he is very task oriented. That’s why we can say he follows both

techniques to lead into the organization.

SWOT Analysis

SWOT analysis is a tool that identifies the strengths, weaknesses, opportunities and threats of an

organization. Specifically, SWOT is a basic model that assesses what an organization can and

cannot do as well as its potential opportunities and threats. SWOT analysis determines what may

assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized

to achieve desired results.

Strengths:

• UFL has very high skilled, energetic, hard working and motivated human resources.

• UF has a very strong client base among the other leasing companies.

• UF do not comply undue political influence.

• With its diversified business, UF is better equipped to compete in an ever changing and

challenging business environment.

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 Weaknesses:

• One of the major weaknesses is that, lack of marketing activities comparing to other

competitors.

• Lengthy recruitment system.

• Unattractive salary and bonuses.

• Other branches are not well organized, except Head Office (Camellia House).

• Poor customer service.

• Unstable networking system.

• Insufficient employees.

• Unfavorable working environment.

• Lack of IT infrastructure and software system.

• No personal vehicle for the company.

• Backdated business policy and guidelines.

Opportunities:

• With growth in our corporate sector, demand for lease financing is also growing and

consequently, the lease financing industry.

• By introducing new products such as home loan and small enterprise financing, UF can

expand its market.

Threats:

• Continuously increasing deflation rate results into a less disbursement of fund

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• There is a clear trend of increasing competition in the lease market with the entry of more

leasing companies and leasing by commercial banks.

• UF is the second largest in terms of credit portfolio. But the list of financial services UF

is offering is shorter compare to other NBFIs

Environmental factors (PESTLE analysis)

• PESTAL Analysis

• Bangladesh is a developing country and it consists of total 57 banks in total. Out of the 57

banks, 48 are private and 9 are public banks. Bangladesh bank is the central bank of

Bangladesh which monitors and regulates all other banks. United Finance limited, this

bank also falls under private bank of Bangladesh. The PESTAL analysis of Bangladesh

banking industry has been discussed below.

• Political factors: The government plays a vital role in Bangladesh banking industry. It

has the power to affect the overall banking system by changing policies. Political stability

and corruption has a positive effect on banks and vice versa. At present the banking

industry of Bangladesh is horrible due to political corruption.

• Economic factors: Banks play important role behind the economic growth of a country.

It ensures flow of money in the economy and provides fund to businesses and individuals

which help the economy to grow. Monitory policy controls the money supply in the

economy of a nation by changing interest rate, reserve ratio etc. Bangladesh has a

growing GDP which is good for banking industry.

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 • Socio-cultural factors: it includes population growth rate, education, age distribution

and change in lifestyle. Banks help reducing unemployment by lending money to

individuals which help people to get an income source to change their lifestyle for good.

Our population is becoming more literate and conscious about banking. Even the rural

people have also started using mobile banking which is a positive sign.

• Technological factors: Technology has changed the overall banking system. Earlier

people had no other alternative to visit bank to get their work done. Now technology has

made banking very easy and convenient. Especially after the introduction of smart

phones, the concept of mobile banking has started. Besides online banking and use of

ATM boots are also very popular these days.

• Legal factors: is basically the laws and regulation of conducting a certain kind of

business. Likewise, banks also follow some regulations like Bangladesh Bank

Regulations- 2012, Bangladesh Bank procurement regulations, 2004 etc. Recently our

government has passed a new controversial act called Banking companies act 2018.

Economist thinks this law may increase the rate of corruption and mismanagement.

• Environmental factors: With the introduction of technology, the banks are moving from

paper works to mobile apps and online services. This is helping to reduce the use of paper

which means fewer trees will be cut to produce paper.

BCG analysis model

Products: divided into 3 major sections; deposit, financing and work capital.

Star product:

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 • Working Capital:

This product or the service allowed the business persons to do their business with a quick and

reliable transaction and dealing. Quick response and waiting line or inventory management are

few of the most important factors of doing business. These facilities boost up the transactions

between the business persons or in other perspective, it's the most efficient financial support for a

business person to ensure sales and revenue streaming.

Now-a-days, most of the business persons' are facing trouble just because of some external issues

like political and economic turmoil. So, in this kind of situation, such a flexible and reliable

financial support like these with minimum risk might be popular and easy to get the maximum of

the market shares.

o CREDIT SALE FINANCING: If anyone is a supplier of goods and/or services

to corporate entities on a recurring basis and the payment is delayed by their

customer, then Credit-Sale Financing facility could be an ideal financing option

for them. Here they can easily free their business capital tied up in receivables.

UFL is also facilitating business process outsourcing to improve their business

focus.

o DISTRIBUTOR FINANCE: If anyone is appointed by a large corporate entity

to distribute goods within specific area then Distributor Finance Facility could be

an ideal financing option for them. Facility of UFL will help them in chasing

primary target and make on time supplier payment to ensure faster procurement.

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Cash Cow:

• Term Finance: UFL is providing longer term cash financing to support the customer

BMRE projects, construction requirements, capital expenditure etc.

There are such business sectors which are huge and profitable for our economy like garments

and textile sectors. This sector required such big loans to continue or maintain their operation or

may be their operation cost. To meet the demand of their contract or shipments they have to

come up with a big budget for costs like operational cost, salary/wages of labor till the whole

shipment has been done and a new contract is getting signed. On the other hand lot of

constructions and infrastructural development is going.

the reason we consider it as "cash cow" because these industries are settled and less chances of

new competitors get in that's why UNITED FINANCE LIMITED has big market share but the

growth has been stopped or decreasing.

Question mark:

• Lease: If anyone is planning capital expenditure for procurement of industrial machinery,

commercial vehicle, power generator, inland and maritime vessel then Lease facility of

United Finance could be an ideal option for them.

growth rate of this product or service is very high because as it is mentioned earlier that in a very

critical situation where business persons are facing a lot of trouble if, there is a support of

reliable financial source where anyone can ensure their investment and to establish their business

then obviously it might get a very good response.

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People are now trying to move on to this kind of services because many other business sectors

are really booming around as the whole country is developing in an amazing speed. So the

growth of this service or product is still low but has the very good chance for high growth rate.

Dogs:

• Deposit schemes: the economic condition is not so well of this country. People are living

with very limited earnings where they got a high cost for their living. There are really a

junk of demand means lots of scopes for doing business but just because of bad condition

of political and economical situations people are afraid of loss while investing. So, if the

income becomes low then it's very difficult to maintain the life style and very little scope

for "savings or Deposit". (United Finance Limited)

I think the reason is clear why we consider deposits schemes under the "Dogs" product category.

Competitor analysis (porter’s five forces model)

Industry Analysis

• As the country is developing economically, people are becoming more encouraged to

take risk, thus the number of business enterprises are increasing. To start and run a

business enterprise initial capital and working capital are imperative. In such case,

business run for long term financing but getting loan from financing institutions like

commercial banks, specialized banks and other financial institutions is not easy. As an

alternative leasing business is providing the facility. United Finance Limited (UFL) along

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 with LankaBangla Finance Limited (LBFL) and Industrial Development Leasing

Company (IDLC) are prominent in this sector. Lately, some other leasing companies

have emerged in this industry such as, Bay Eastern Leasing Company, Peoples Leasing

Company, GSP Finance Company and IPDC. United Finance Limited, being the pioneer

of this sector, has the leading share in the market and has inspired others to enter in this

industry.

Competitive Force Analysis

• Bargaining Power of Suppliers (High)

• Non-Bank Financial institutions (NBFI) are different from banking institutions. Main

suppliers of United Finance are mainly foreign investors and some local investors, who

seek profit through interest. As they invest huge number of money and the number of

such investors is not much in number, they have higher bargaining power. Finding new

investors requires a lot of time, money and causes much trouble causing increase in

switching cost. Therefore, lower number of suppliers, higher switching cost and trust as

another important issue make the bargaining power of the suppliers high.

• Bargaining Power of Buyers (Low)

• Corporate, business enterprises and startup business are the majority of their customers.

Though they are catering to personal loans through home loans, car loans and other short-

term loans, mostly small business enterprises (SME) are their primary customer. As the

country is developing economically, the number of businesses is also increasing

significantly. To start a business and run it smoothly, initial and working capital is

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 required. Getting loans from banking institutions on the other hand is not easy. The

number of Non-banking institution is also limited. As a result, United Finance has the

bargaining power over their buyers to shape the market. As the switching cost is high for

customers (Interest rates are more or less similar in every NBFI) and loan requirements of

banking institutions are complicated, customer stay loyal to them. Buyer don't have any

bargaining power as a negotiator and the institution has low dependency on customers as

the product is important to customers

• Threat of New Entrants (Low)

• For such business, huge amount of initial capital and working capital is required. As the

number of suppliers is limited and managing suppliers is troublesome, barriers to enter

the market for new competitors are high. Strong distribution network is mandatory in this

industry to smoothly operate the business. Brand recognition is also an important factor

for customers. Customers usually go for well-known organizations. Patents, government

rules, entry and exit barriers make it tough for new competitors to enter the market.

Therefore, threat of new entrants in this industry is low.

• Threat of Substitutes (Low)

• The primary substitutes of United Finance are commercial and specialized banks. Though

non-bank financing institutions and banking institutions provides similar facility to their

customers, the process, nature of business, availability and compatibility keep United

Finance ahead of their substitutes. United Finance Limited is more specialized in this

sector and has been performing well comparing to other commercial and specialized

banks. On the other hand, the process of getting loan in a banking institution is difficult

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 and most of the time results in loan rejection. So, the high switching cost for customers,

availability and readiness of NBFIs outweigh the substitute and lower the threat.

• Rivalry (Low)

• Relatively few competitors hold strong position in the market. Namely, United Finance

Limited (UFL) along with LankaBangla Finance Limited (LBFL) and Industrial

Development Leasing Company (IDLC) has the most market, United Finance being the

market leader. Along with the increasing number of business enterprises, the growth rate

of the industry is also accelerating. The size of the industry is also relatively large. Thus,

existing competitors do not have to steal market from each other and are able to generate

revenue quickly. Involvement of government in setting up rules and standards for the

NBFIs minimizes the intensity of competition.

Reflecting Issue

Reflective learning is the subject of a complementary stream of thinking that we argue has direct

bearing on the debate between opposing strategic management teaching perspectives and the

concerns. In the learning process, reflection has long been acknowledged as an activity that

contributes to various expressions of deep-level learning. Reflection attenuates the dominance of

instrumental reason and positivism resulting in more opportunities to re-conceptualize problems.

(ResearchGate, 2014)

MGT210 is a core course and basement for the student of management Department. And before

doing this course we thought it won’t be that much helpful for us. But after doing this course we

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learn lots things which actually very important to know as a BBA student. The knowledge of

theoretical which we learned from this course will be very helpful for understanding our higher

course. It will work when we enter in corporate world.

It helped us to teach us how to work with different types of people, how to manage peoples in a

different situation and how to work in a team through doing case study. Sometimes we faced

some conflict within the group but we managed that in a nice manner. That’s for why we same

people are doing case study and this business project. We knew very well how to behave within a

group. And it helps us to develop our presentation skill through our case presentation.

Business project is a platform for the students to relate their academic knowledge in real life.

Since the students of the BBA program are engaged with very much theoretical course work,

only the business project or report can give them some practical knowledge. Before doing this

course, we had some thought from this course, and hopeful that we would learn even more.

There are lot of mismatched between our expectation and what we experienced ourselves, most

of us in our group members are retaking this course, we came to know that the new faculty

wouldn’t focus on that senior student who retake the course or they do not have to cooperate that

much with students and they just use their own method. But In reality, it is just opposite

whatever we heard. We think our supervisor is more careful about us. Moreover, as a senior

student we learn lots of managerial things from this course which we skipped before. For

Example: I knew how to motivate people in different way. Before doing this course I thought

economic support is the only one motivational criterion for motivating people but this thought is

proved wrong after knowing some theory. Because all people don’t want to economic support,

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some wants mental support, some want safety. So basically it depends on person what he/she

have preferred. It is not same for all people.

So obviously, our concepts about this course and faculty have been changed now.

Conclusion

Financial institutions play an important role in the economic development of the country. Being

a financial institution UF also plays an important role in managerial section. United Finance

Company is much satisfactory. UF should improve their strategy and service quality. They

should also concentrate in motivating their employees by giving more financial support which in

turn will give more benefit to its business. Throughout our research we have tried to show the

overall managerial process of this company. Here we have used our theoretical knowledge which

we have achieved from mgt210 course and also we have used what I have learnt throughout our

whole semester regarding the facts. So finally it can be said that, United Finance has the brightest

future in the non banking financial sectors in Bangladesh.

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 References:

Bibliography
(n.d.). Retrieved from https://www.unitedfinance.com.bd/

(n.d.). Retrieved from United Finance Limited: https://www.unitedfinance.com.bd/

ResearchGate. (2014, 12 14). Retrieved from

https://www.researchgate.net/publication/276903065_Reflection_in_Strategic_Management_Education

(n.d.). Retrieved from https://www.unitedfinance.com.bd/liaiess.html

(n.d.). Retrieved from http://www.duncanbd.com/content/28.html

(n.d.). Retrieved from https://opsdog.com/categories/organization-charts/finance

(n.d.). Retrieved from https://www.unitedfinance.com.bd/

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