Presentation on Rak ceramics

Name ID

Muntasir Mohammad Ibrahim 1631080030

Umme Habiba Prottasa 1430130030
Asma Sadia 1330440030
Shazida Islam Disha 1620547030
Maliha Binta Kabir 1611330030
Nusrat Rejwana 1520067030
History, Development and growth of the company

◦ Current Position of RAK Ceramics

◦ Vision of RAK Ceramics
◦ Reporting process for improving profitability
◦ Investment, Production & Company Shares
Internal Environment Analysis

◦ Organizational Culture
◦ Working Environment
◦ Organizational structure
◦ Human Resource
◦ Management
◦ Employees
Internal Resources

◦ The tangible resources are land, vehicles,

equipment, furniture, inventory, machineries etc.
◦ Some of their intangible assets are patents,
goodwill etc.
Internal Capabilities

◦ Employees, managers means the collection of

people, process technology are of high standard.
◦ Well trained teams to fulfill their goals.
◦ Experience can be another capability
◦ Updated or new technologies
◦ Their exceptional technologies help them to
reduce cost by a high margin.
Porters five forces:
PESTEL ANALYSIS

Political Factor: Political environment includes those groups which influence the organization. Some political
factors are government, laws etc. we know that the political condition of Bangladesh is a bit stable now. So at
present the political factor has no negative influence on RAK ceramics.

Economical Factor: A company’s growth increases when the country’s economy goes well. Again consumers
changing income, spending pattern and lifestyle also contributes to the economic factor of RAK ceramics.
Keeping all these factors in mind RAK sets reasonable prices for their product.

Social Factor: Some social factors which influences consumer buying behavior are family, reference group,
cultural institutions and reference groups. Now a day’s people are going for nuclear family, again some goes for
single family. This has a huge influence on consumers buying pattern. Even peoples lifestyle and family status
influences their buying behavior.

Technological Factor: People’s lifestyle, trends everything are changing with the advancement of technology.
New substitute products are developing day by day. So we should always walk side by side with new
technology. RAK ceramics always keeps them updated with changing technology.
Environmental Factor: Day by day people are realizing the importance of a healthy environment. RAK
ceramics products are environmental friendly and they are always working for more effective productions.

Legal Factor: Legal environment of Bangladesh is not a threat for RAK industries or any ceramic industries.
It is not too strict or easy. As long as they abide by the rules, everything will go fine. And RAK ceramics always
abide by the legal laws.
SWOT Analysis

Strengths: Weaknesses:
• Reputation • Cost of importing Raw
• High Quality materials is expensive
• Production capacity. • Less access to key distribution
channels.
• Less sustainable

Opportunities:
• Market expansion.
• Variations within the products.
• Mergers, joint ventures or
strategies alliances with other
companies.
Threats:
• Manufacturing cost and labour
cost are high
• Price discrimination due to
market competition
• Dependency on their
distributors
Defining the Business

RAK Ceramics has two types of product:

Ceramics Tiles

Sanitary wares
Ceramics Tiles

RAK Ceramics (Bangladesh) ltd produce four types of strong

brand ceramics
Sanitary wares

RAK Ceramics (Bangladesh) ltd produce two types of

sanitary ware
DISTINCTIVE COMPENTENCIES

There are several strategy that’s helps RAK to get competitive

advantage over various competitors
Financial performance
Competitive Advantage Of RAK Ceramics

RAK Ceramics tries to provide greater customer value and satisfaction in different
specialized sector than competitors. They developed a strategic advantage over their
competitors. Their major competitive advantages are;
◦ Strong brand name
◦ Good reputation among customers
◦ Cost advantage
◦ Technology aptitude
◦ Excellence in producing high quality product
◦ Diversification of product design
Current business model
Key Partners: Key Activities: Value Customer Customer
 Clay suppliers  R & D Proposition: Relationships Segments:
 Shareholders  Manufacturing
 Modern  Customizati  Sanitary
 Product Demo
 Banks and other designed on system and tiles
 Technology
Financial products  Hotline business
up-gradation
services for owners
institutions  Maintenance  High quality
various  Building
products purposes owners
 Diamond turning
 Different  After sale  Developers
 Tiles and sanitary ranges of services and
ware shops or products  Well trained builders
outlets sales  Commercia
(low to
 Local suppliers manager and l and
high)
staffs government
 Perfect
institute
blending  Schools,
machine to hospitals,
give offices
technical
finesses
Key Resources: Channels:
 Inventories  Dealers
 Trademarks  Tiles and
 Goodwill Sanitary
 License business
 Plants for owners
manufacturin  Tiles,
g sanitary
 Machineries showrooms

Cost Structure: Revenue Streams :

 Salaries  Sales Volume
 Manu facturing costs  Partnership with other related companies
 Administration, R&D costs  Product Bundling
 Distribution costs
 Maintenance costs
 Marketing Costs
Recommendation

Reduce operational expense

◦ -Practice efficiency through systematic approaches

◦ -Apply strategic risk management control

◦ -Provide credit extension to selected dealers

◦ -Make effective customer interactions

◦ -Meet customer demands

◦ -Introduce luxury line of tiles

Corporate Strategic Plan for the next five years:

Corporate level strategy

Steps based on the company’s environment and internal strength.

Effects on pandemic on RAK ceramics & action plan for overcoming challenges

The following strategies for corporate level are:

1. Diversification

2. Investigation

3. Turnaround

4. Divestment

5. Profit
Business level strategy

Forecasted effective business level strategies for next five years:

◦ RAK Premium Collection

◦ Agreements with leading exclusive designers and
laboratories
◦ Production Capacity
Functional Level Strategy:

Marketing: Being a multinational company RAK has strong brand equity. It has segmented their
customer accurately. But what it lacks is strong marketing. To connect with their customers they need to
produce emotional advertisement. Now a day’s people don’t watch much television. They spend most of
their times in face book and other online sites. RAK ceramics should move from their traditional
advertisement to online advertisement. They can sponsor events, different shows. In this way they can
gather most attention from their customers.

Research and Development: Everyday peoples taste, products are changing due to continuous
innovation and technological advancement. To survive in the market research and development team
should work side by side with marketing team. Because market research is a must to know about
customers need. They should continuously work on producing unique and new products to attract more
customers.

Human Resource Management: It is the employee who runs the organization. So to become a
successful organization it is very important to have best and efficient employees. Despite of RAK being a
multinational company the employees are not satisfied there. Their salary is not sufficient. There exists
favouritism and partiality. They don’t provide transport facilities. Their middle management is not caring
and friendly. The top management should take necessary steps to satisfy their employees and to stop
this inequality. They should organize open discussion sessions with their employees about their
surroundings, work experience and about their problems.
E-Commerce: In this era, internet plays a vital and most important role in almost
every business. We can get food, clothes, and daily necessities from online sites.
To survive in this era by doing business it is a must to have a proper online site.
They don’t have any proper online appearance. They have an app called RAK
ceramics Bangladesh but it is not in proper function. Because of this RAK is
losing their online customer base, which is not good for their future. So IT
department should work with the changing business environment to make their
customer base stronger, both online and offline.

Supply Chain Management: RAK ceramics don’t have their own supply chain
management. In order to distribute their products they have to depend on the local
authorized dealers. They should have shops in every cities of Bangladesh and
they should also build their own supply chain management. Because by relying
on the dealers they are losing their market coverage and they are also losing their
control.
Technology Strategy for 2020-2025

RAK ceramics has managed to successfully blend technology and

creativity and thus pushed its way to the top of its sector within a short
time span. RAK ceramics has been successfully developed their new
product by the style of technology.
For next five years (2020-2025) RAK can introduce new technology
such as;
◦ Cladding applications for new product
◦ Customized App technology
◦ Anti-microbial technology
◦ 3D Room Visualizer
◦ Water jet cutting technology machines
◦ Nano-pix digital printing
 Revised Business Model
Key Partners
 Exclusive designers and
laboratories
 Clay suppliers
 Shareholders
 Banks and other Financial
institutions
 Diamond turning
 Tiles and sanitary ware
shops or outlets
 Local suppliers
Cost Structure
 Salaries
 Manufacturing costs
 Administration, R&D costs
 Distribution costs
 Maintenance costs
 Credit extensions
 Marketing Costs
 Investigation Cost
Key Activities Value Proposition Customer Relationships Customer Segments
 R&D  Premium Collection  Customization system  Sanitary and tiles
 Manufacturing  Cladding  Hotline services for business owners
 Product Demo applications for new various purposes  Building owners
 Technology up-gradation product  After sale services  Developers and builders
 Maintenance  Modern designed  Well trained sales  Commercial and
products government institute
manager and staffs
 Schools, hospitals, offices
 High quality
Key Resources Channels
products
 Huge production capacity  Dealers
 App technology  Different ranges of
 Tiles and Sanitary
 3D Room visualizer products (low to business owners
 Water jet cutting high)  Tiles, sanitary
technology machines:  Perfect blending showrooms
 Nano pix Digital Marketing
 Trademarks
machine to give
 Goodwill technical finesses
 License
 Machineries
Revenues Streams
 Sales Volume
 Partnership with other related companies
 Product Bundling
 E-commerce
 Divestment
Company’s governance revised

-maintain standards of corporate governance

-practice prior planning and implementation

-Strictly maintain internal audit

-introduce own supply chain

Recommended Strategic Control
System
Does existing company culture support recommended strategies?
Yes, the existing company culture supports our recommendation strategies.

Our recommended strategies are Behavioral control system,

implementation control and Premise control.

◦ RAK Ceramic’s culture maintain behavioral control system because it

refers the major goal of increasing customer’s responsiveness. They
have created the best customer value They give lot of opportunities to
their employees so that employee’s behavior gets predictable.
◦ They supports also implementation control which we recommended.
RAK ceramics are recognized as well managed company. They
perform corporate meeting season when they need any change or
important discussion.
◦ They support also Premise control system also which we
recommended.
Global Strategies

Issues they need to takes care for long term benefit:

◦ Need to Focus on capacity utilization

◦ Need to work on existing market Image
Ethical Value Proposition

◦ Governance
◦ Product Responsibility
◦ Safe Labor Environment
◦ Human Resource
◦ Environmental Contribution
◦ Goodwill