Samtel Tele marketing Intern report page 6

3.0 External Environment Analysis

 

3.1 Economy

3.1.1 State of the Current Economy:

Bangladesh economy is one of the poorest economies of the world. The economy is highly dominated by agriculture. The country is wind of change through the industrialization process. Despite of all these, as per the latest estimate by various international organizations, the country is to have a GDP Growth of around 5% in the Fiscal Year 2004-2005. Alongwith this it has to be also mentioned that the inflation rate of the country is very high which is estimated for 2005 as 7%-8%. Per capita income of the country is about US $ 440.

3.1.2 Recent economic trend

The financial budget of the country for the Fiscal Year 2004-05 at a glance is as follows:

Total Budget: US $ 9.54 Billion (BDT 572 Billion)

Revenue Budget: US $ 6.88 Billion (BDT 413 Billion)

Budget Deficit: US $ 2.65 Billion (BDT 159 Billion); Covered through:

Foreign Loan – BDT 69,600 million

Foreign Grant – BDT 18,890 million

Loan from local source – BDT 70,990 million

Annual Development Program (ADP): US $ 3.67 Billion (BDT 220 Billion); (55% met by internal resources and 44.5% by foreign assistance)

Non –ADP: US $ 5.09 Billion ( BDT 301.58 Billion)

Foreign investment in 2003-04 was US $ 458.02 million

It is also forecasted by the donor countries that Bangladesh will be able to sustain such GDP growth rate if it follows the suggestions of them. It can be concluded that such economic trend of the current fiscal year projects a healthy economy of the country in future.

3.1.3 General Economic State

As per ADB, Gini Concentration Ratio for Bangladesh is 0.372 (survey year 2000). The experts project that the economic state of the country will remain unchanged in the coming years.

3.2 Labor Market

Unemployment rate of the country is 25%.

It is found that labor is sufficient in that industry where experience is not required. But in the case of paint industry, it is always found that appropriate labor is always in scarce. The reason behind this is that the industry is very much technology driven and it takes some time to train up the workers for the job.

3.3 Other Environmental Analysis

3.3.1 Social & Cultural Environment

·      Homogenous

·      Rapid Urbanization

·      Progressive vs Non-progressive values

3.3.2 Political Environment

·      Democratic Govt.

·      Democracy is still in nascent stage

·      Political turmoil and unrest is a regular scenario

3.3.3 Legal Environment

·      Weak legal framework

·      Laws are not in action