International Operation of a Multinational Company (Banglalink)

In: Business and Management

Submitted By dilshad10
Words 3476
Pages 14
Table of Contents

Introduction 1

The reasons behind choosing Bangladesh 2

While entering problems faced by Banglalink 4

Industry analysis 5

Operational obstacles faced by the company 8

Entry Strategy 8

Internationalization strategy pursued by the company 10

Possible Strategy Overview 10

Current Environment 11

Conclusion 12

Reference 12


Today, telecommunication is one of the major parts of life. Nowadays, the phone is not only used for making calls, among many other functions it’s used for communicating through text-messages and so called multi-media messages, as well as to connect us to the internet. The opportunities that lie in the telecom market seem endless and the growing demand for mobile telephony systems is creating a world-wide market. The telecom industry is nowadays not only by means of millions, but by means of billions. Actors in this industry are seeking the most profitable markets throughout the world. Currently there are 6 mobile operators in Bangladesh and Banglalink is one of them. With a slogan of “making it difference”- banglalink started operations in February 2005. Previously, it was known as Sheba Telecom Pvt. Ltd that had been providing GSM (global system of mobile communication) services in Bangladesh since 1998. Orascom Telecom bought 100% share of Sheba Telecom in 2004 and gave its new name as Banglalink. Banglalink, is the second largest cellular service provider in Bangladesh. As of August, 2008, Banglalink has a subscriber base of more than 10 million. It is a wholly owned subsidiary of Orascom Telecom.The logo of the company is designed on keeping the national animal i.e. Royal Bangle Tiger in mind, which symbolize to the faster growth.Banglalink has 1500 km. of Fiber Optic cable which gives the surety of good network. During the occasional…...

Similar Documents

Multinational Companies

...Multinational Companies Raul A. Murguia June 19, 2012 Research and prepare a discussion that addresses the ethical dilemmas that face multinational companies. Pay particular attention to the problem of different standards for business practice. Cite your sources using proper APA style. Respond to at least two of your classmates' postings. Multinational companies face ethical dilemmas magnified by the international context. Multinational companies operate across many countries; each country has its own culture and laws, and their own diverse social norms and ethical practices. In order to move into new markets and increase their profits they operate in multiple host countries. The laws, rules and regulations that govern how business is conducted set by the governments of these host countries are very different from those set by the home country of such multinational companies. Multinational companies find themselves confused by these laws, rules and customs of the host nation in which they conduct business. Should they do as the locals do or should they conform to the different and even conflicting cultural and ethical guidelines of their home countries? What could be viewed as ethically right in the home country may be absolutely considered wrong in the host country, and vice versa. In this sense, what constitutes an ethical act depends on where the multinational company is operating. A society’s culture is a good indication of what type......

Words: 480 - Pages: 2

Multinational Company

...national company an American company? A multinational company refers to a company that operates in more than one country. The headquarters of the company are located in one country but its business activities are spread over in other countries. A multinational company becomes an American Company if possess the following characteristics. Firstly, multinational company local subsidiaries are managed by the nationals of the host countries. Therefore, for a multinational company to become an American company its management must be international in character. For instance, Hindustan Lever is an American company but its management lies with Indians (Brigham, and Houston, 2007). Secondly, a multinational company becomes an American company if the parent company is in the United States of America. Such a company is governed by the laws and regulations of the host country of the parent company hence it becomes an American company. Thirdly, a multinational company whose sales in America are more than 25 percent of its total sales is considered an American company. This is because its operations are meant to benefit the American. Hence, it can be named as one of the American companies. Fourthly, a multinational company that has set many subsidiaries in the United States is considered an American company. This is because most of its production takes place in America since the company establishes production plants in the country (Brigham, and Houston, 2007). In addition, a......

Words: 305 - Pages: 2

International Strategic Operation

...Entry Mode- “HOW”. Major Decision Criteria There some external and internal factor that will affect the choice of market entry strategies by Company. Koch (2001) contends that External factor comprises of Market Size/Growth/Barrier, Risk (Political, Operational, Economic and Competitive), Local Government Regulation/Requirement, Competitive Environment and Local Infrastructure. Internal factor include Entry Objective (Market Development, Resources Access, Learning, Co-ordination), Need for control, Internal Resource and Capabilities, and Cost-Benefit analysis (Lasserre 2008).These both factors can be identifying through some framework like Porter Country Diamond (Porter, 1990), Country Risk, Market & Industry Attractiveness and PEST. Timing of entry comprises four phase: Premature phase, Window phase, Competitive growth phase and Mature phase. The wrong choice of timing can have a great impact of a company on Sales, Performance, Brand Awareness and etc. According to Frynas& Mellahi (2011, p. 164), the Entry Mode can be use by MNE(Multinational Enterprise) grouped into five main categories, that are Export, Licensing, Franchising, Joint Venture and Wholly Owned Subsidiaries- Greenfield Investment and Acquisition. Comparing Entry Mode (Refer to Appendix 1) There are two major types of entry mode using by MNE (Multinational Enterprise), Equity and Non-Equity modes (Refer to Appendix 2). Equity modes consist of Wholly Owned Subsidiaries – (Greenfield......

Words: 2585 - Pages: 11

Multinational Companies and Human Rights

...Multinational Companies and Human Rights Ever since globalism has become the dominate economic system in the modern world, many companies specifically in the United States have found the benefits of moving manufacturing jobs out of the US in favor of countries that pay workers very low wages. These countries often times do not have the same stringent labor laws and enforcement features in place as in the US and as a result human rights abuses are much more pronounced and more apt to be violated. As more consumers in western nations become more educated about where their products are being manufactured and how many people are being mistreated and abused all in the name of making products cheaply, they are demanding that multinational companies or MNCs take more responsibility in making sure human rights are not being violated. An example of a way MNCs are attempting to take responsibility for ensuring workers human rights are the establishment of various codes of conducts. One such code of conduct mentioned in our textbook is the Anti-Sweatshop Code of Conduct established by former President Bill Clinton. The code which “includes a ban on forced labor, abuse, and discrimination requires companies to provide a healthy and safe work environment and to pay at least the prevailing local minimum wage, among other requirements” (Deresky, 2011). This particular code of conduct works in conjunction with the Department of Labor who essentially publishes the names of......

Words: 736 - Pages: 3

Multinational Companies

...Advantages and Disadvantages of Transnational Corporations Host Country: Advantages 1. The investment level, employment level, and income level of the host country increases due to the operation of TNC's. 2. The industries of host country get latest technology from foreign countries through TNC's. 3. The host country's business also gets management expertise from TNC's. 4. The domestic traders and market intermediaries of the host country gets increased business from the operation of TNC's. 5. TNC's break protectionism, curb local monopolies, create competition among domestic companies and thus enhance their competitiveness. 6. Domestic industries can make use of R and D outcomes of TNC's. 7. The host country can reduce imports and increase exports due to goods produced by TNC's in the host country. This helps to improve balance of payment. 8. Level of industrial and economic development increases due to the growth of TNC's in the host country. Disadvantages 1. TNC's may transfer technology which has become outdated in the home country. 2. As TNC's do not operate within the national autonomy, they may pose a threat to the economic and political sovereignty of host countries. 3. TNC's may damage the domestic industry by monpolising the host country's market. 4. In order to make profit, TNC's may use natural resources of the home country indiscriminately and cause depletion of the resources. 5. A large sums of money flows to foreign countries in terms of payments...

Words: 316 - Pages: 2

The Impact of Globalisation on Multinational Companies

...Globalisation on Multinational Companies 2 Introduction 2 McDonalds’ Introduction 3 Globalisation and McDonald’s 3 Globalisation strategy of McDonald 5 1. Think Globally but Act Locally 7 2. Pricing 8 3. Advertising/Promotional strategies 8 4. Social responsibility 9 Challenges for McDonald 10 Conclusion 11 Reference 12 The Impact of Globalisation on Multinational Companies Introduction Globalization is a term used to describe the trend of growth; trade practices between undertakings perform beyond the geographic and economic boundaries, so that they exist (Waters, 2001 Brinkman, Brinkman, 2002). Globalization is used to describe the nature of the dominant international trade and business, as they are no longer limited to serving specific groups of consumers in the country (Levy, Hammond and Gross, 2003), the globalization of the increase is due to the expansion of economic and capitalist drive to achieve growth, and taking existing resources , improve the degree of efficiency of the operation. Thus, globalization is also very closely related to the outsourcing companies seeking to existing units, the production moved to another country, economically sensitive wage labour. A typical example of this is the first McDonald's in 1955 as a company in California, opened in 2013, is now in 195 countries and has more than 30,000 restaurants. This process, because it is difficult to control, some multinational companies responsible for the operation of......

Words: 3182 - Pages: 13


...about banglalink banglalink digital communications limited is fully owned by telecom ventures ltd. (previously orascom telecom ventures limited) of malta, which is a fully owned subsidiary of global telecom holding s.a.e. (formerly known as orascom telecom holding s.a.e.) ( following business combination in april 2011 between vimpelcom ltd and wind telecom s.p.a, vimpelcom owns 51.92% shares of global telecom holding s.a.e. (formerly known as orascom telecom holding s.a.e.). vimpelcom ( is one of the world’s largest integrated telecommunications services operators providing voice and data services through a range of traditional and broadband mobile and fixed technologies in russia, italy, ukraine, kazakhstan, uzbekistan, tajikistan, armenia, georgia, kyrgyzstan, laos, algeria, pakistan, burundi, zimbabwe, central african republic, canada and bangladesh. vimpelcom is headquartered in amsterdam, the netherlands and listed as an ads on the new york stock exchange under the symbol "vip". since banglalink’s launch in February 2005, its impact was felt immediately: overnight mobile telephony became an affordable option for customers across a wide range of market segments. banglalink’s success was based on a simple mission: "bringing mobile telephony to the masses" which was the cornerstone of its strategy. banglalink changed the mobile phone status from luxury to a necessity and brought mobile telephone to......

Words: 11139 - Pages: 45

“Telecommunication Operator Banglalink™'s Operation in Bangladesh as Mne”

...[pic]International Islamic University Chittagong (Dhaka Campus) Assignment On “Telecommunication Operator Banglalink™’s Operation in Bangladesh as MNE” Course Title: International Business Course Code: MKTG-5602 Assignment Submitted To Mr. Amir Ahmed International Islamic University Chittagong (Dhaka Campus) Assignment Submitted by, |Name |Metric No. | |Fuad Bin Mostafiz |M 091662 | |Md. Shahkwat Hossain |M091661 | |Md. Momenul Islam Khan |M 091651 | |Md. Zakir Hossain |M 091659 | |Khandkar Md. Zahiruddin |M091660 | ORIGIN OF THE REPORT This report is prepared for fulfilling the International Business, MKTG-5602; course requirement of Department Of DBA, International Islamic University Chittagong. This report mostly covers a research report on “Telecommunication Operator Banglalink™’s Operation in Bangladesh as MNE”. OBJECTIVE: Primary Objective: - Primary objective of the report is fulfilling the course requirement for Completion of MBA program under department of DBA, International Islamic......

Words: 4062 - Pages: 17

Building an International Company

...Building an International Company Name University Abstract An international company is any company that has its facilities and other assets in at least one country other than its home country. A successful company understands the meaning of competition which has caused them to actively fight for new markets, products, and services in order to sustain a competitive advantage. A company that has obtained success in its country of origin usually expands their services into the global economy to become an international business. These companies effectively control their financial and material resources by managing economies of scale, low cost production and fluctuations in currency. Human resources are also essential in the making of a successful company by recruiting talented individuals and encouraging innovation within the company. International companies can expand organically, which is a slow process that consists of building the business from ground up, or they can expand inorganically by buying out, or merging with, an existing business. If I had to create a new product idea, I would want to invent a new way to produce cheap efficient energy for the need of the masses. I would expand the company to international status using the inorganic global growth process. Due to advances in technology, and in today’s business market, most businesses have to compete globally. “These companies actively compete for new markets, products, and services in order to develop and......

Words: 1788 - Pages: 8

Multinational Hotel Companies in Tourism Industry

... Abstract Multinational hotel companies, often integrated with travel agencies and tourism businesses, play an important role in the tourism industry in developing countries. Introduction of multinational hotel companies is always regarded as an opportunity to benefit host countries through provision capital and market connections. However, the activities of multinationals could also be threats to these countries. This paper reviews the potential costs of multinational hotel companies involvement like decreased economic benefits, foreign domination and negative environmental and cultural consequences. Furthermore, it illustrates some possible solutions for developing countries to reduce the adverse effects which could balance the advantages and disadvantages of multinational involvement and create a brighter future. 1. Introduction A multinational hotel companies, as a type of multinational enterprises, which is identified as an enterprise that owns or controls value-adding activities in the accommodation sector in two or more countries. It is widely accepted that most of developing countries are seeking opportunities to introduce multinational hotel companies because developing countries could obtain several benefits from the presence of multinational hotel companies, such as provision of capital, transfer of technical and managerial expertise, provision market connections,etc. It is true that multinational hotel companies can contribute to the growth of economy......

Words: 1249 - Pages: 5

The Heart of a Multinational Company

...Apple Inc. Examining A Multinational Company Apple Inc. previously known as Apple Computer Inc. was founded in 1976. The American Multinational Corporation is known for dominating the technology industry with market savvy products. Apple’s success is attributed to the company’s ability to design and produce products with highly valued customer benefits and unique benefits for which customers pay premium prices. Although the company has a large presence in various segments of the technology market their focus is on four major products. Mac computers, iPod music players, iPhones, and iPads are primary products produced by the company. Apple also designs, manufacturers, and markets operating systems, developer tools, networking solutions, and database software. Historically, Apple has focused its efforts in the United States and Europe. One major contributor to the company’s success was the decision to become a multinational organization. Presently, North American sales account for half of Apple’s revenue. Twenty-five percent of sales are earned in Europe, fifteen percent in Japan, seven percent in Asia and Pacific regions, and the remaining five percent of sales are from the rest of the world. Apple, a now multinational billion dollar company has come a long way from being the company founded with $1300. In 1980, Apple became publicly traded. On the day Apple went public their stock rose 32% making approximately 40 employees instant millionaires. Not......

Words: 1432 - Pages: 6


...Chapter-1 INTRODUCTION 1.0 Introduction 17 May marks the anniversary of the signature of the first International Telegraph Convention and the creation of the International Telecommunication Union. Since 1973, the occasion has been recognized as World Telecommunication Day. So the significance is clear here that Telecommunication Sector has a particular acknowledgement in the world and the result is the creation of World Telecommunication Day. In fact, Telecommunication is one of the talks of the world at present. Tele density of Bangladesh is still the lowest in South Asia, according to the statistics of the International Telecommunication Union (ITU). About 1.56% among 100 people has access to telecom facility. It shows the high potential in the telecommunication sector in Bangladesh. The existing telecommunication companies operating in Bangladesh have been enjoying competitive advantage because of less global competition but this scenario is soon to be changed as global giants are focusing on Bangladeshi markets with differentiated service and competitive advantages. With the advancement of science and technology, we wonder regularly. Today’s world is the world of technology. No doubt of it that the most success sector is telecommunication. Few days ago people can not even imagine about the today’s communication ways. And it is also true that people have become more desperate to think about new things in this sector. In this course of action, mobile, voice call service...

Words: 8526 - Pages: 35

International Company

...relation to is Dell. Dell is an international computer company that trades computers and additional devices of electronic for instance tablets. Dell commenced as an eccentric start-up PC company that ultimately grow up into one of the major internationally competitive computer business in our existing market. Michael Dell founded the Dell Company when he was only 19 years old; he established PC limited with only $1000 and had a game shifting visualization of how technology must be extended, produced and sold. Owing to the vision of Michael Dell, the business ascended to one of the apex five companies on the globe amid 1992 and 1995. When Dell speedily enlarged its worldwide operations around 1996, it started their online sales; they then placed the bar for worldwide e-commerce sales. Sometime around year 2000, Dell developed up becoming the number one computer producing company in the world ( The utmost success that Dell has had right through the years has been through their innovation. Innovation in the computer industry is the main ingredient for enduring to be successful. Year following year you have got to produce new products that will plea to customers out there. Dell has successfully done that for years, and they have been capable to continue as a foremost computer sales corporation together with further big computer companies for instance Microsoft and Apple. Its innovative nature is what continues Dell in the international marketplace, and this is......

Words: 1577 - Pages: 7


... | |Group Project | |Banglalink | | | |[pic] | | | | | Submitted to Nasira Siddika (NSd) Lecturer, North South University Submitted by Irfan Ahmed Sadib –093-0286-030 Sohidul Hoque –093-0385-030 Nabil Muntakim Khan-093-0057-030 Tawsif Zahin – 093-0305-530 Table of Content Topic 01. Excutive Summary 02. Introduction (Banglalink) 03. Organizational Structure 04. Management Technique 05. Nature of Management Problems 06. Corporate Social Responsibilities (CSR) 07. Cultural Influence 08. Human Resource Management 09. Leadership 10. Motivation 11. Findings...

Words: 3992 - Pages: 16

Localisation of Multinational Companies

...orders and even self-services. this essay will focus on online markets and particularly on the techniques global companies use to target a particular market and give minimal review of its effectiveness. The idea of globalisation as regards to sales market implies that the world will suffer from loss of identity and witness the birth of a typical global consumer market. This was the general belief in the 1990’s but was proven not to be entirely accurate, because Multinational companies gradually saw the need to localise there products services, and method of outreach to conform with locale demands and to encourage familiarity between these products and services with those of native competitors.(Nitish, 2009).the explosion of the internet however made global consumers easy to reach. Global companies adopted the idea of localisation in their websites as a tool to homogenize their products to avoid the threat of losing their market as it is somewhat of a trend for natives of a locale to purchase locally produces products. In order to do this these companies use national symbols to promote familiarity, spark emotions and uniformity also to show they acknowledge and have respect for a locales national identity. it was once stated that “products designed for global markets have come to rely on the use of icons and symbols to communicate effectively with international markets.” (lang, ND). Using these icons also have advantages because they help in reducing design cost by......

Words: 515 - Pages: 3

Angel Links | Social Animals | Uma Criança Com Seu Olhar - Charlie Brown Jr.