About
Arong
Today, few urban consumers will argue that Aarong
is the local Mecca
for deshi handicraft. Aarong’s product designs has brought consumer
attention back to the products and styles that are indigenous to Bangladesh,
its designers blending the traditional with the contemporary in a manner that
has won instant consumer appeal, starting a revolution in trends that has now
been taken up by countless other boutiques and stores. Aarong’s product designs
focus on the diverse types and textures of crafts and patterns that have been
passed along from generation to generation among weavers and artisans in craft
hubs around the country.
Aarong also plays the role of protector and
promoter of traditional Bangladeshi products and designs. It houses an
extensive design library where remnants of our rich craft heritage, such as
Nakshikantha art and Jamdani patterns, have been widely researched and archived
for present as well as future use.
History
Aarong began as a cause – a means to an end for a
quiet organisation fighting to uphold the dignity of the marginalised. In 1976,
when BRAC- a Bangladeshi NGO dedicated to alleviating poverty and empowering
the poor, first began encouraging sericulture for women in Manikganj, their
only buyers were a few scattered retailers in Dhaka. Weeks, even months would
pass between supply and payment, until BRAC intervened. Aarong was born out of
a need to ensure that the penniless silk farmers of Manikganj were paid for
their goods upon delivery, so that they could feed their families.
Today, Aarong’s reach has spread beyond Manikganj
to the rest of the country. It has grown into a thriving international enterprise
showcasing ethnic wear to beautiful crafts from silks, handloom cotton, endi to
terracotta, bamboo, jute and much more. From a single shop, Aarong has grown
into one of Bangladesh’s
biggest retail chains, with eight stores spread across the major metropolitan
areas of the country – in Dhaka, Chittagong, Khulna and Sylhet and one in London, UK.
A Fair
Trade Organization
Aarong symbolizes fairness in the global village.
The organization has identified three basic constraints for gainful employment
of the low income and marginalized people in the rural areas: lack of working
capital, marketing support and opportunity for skills development. In order to
bridge these gaps, Aarong provides a wide range of services to its workers and
suppliers:
- Spot
payment on product delivery to encourage efficiency and productivity
- Reach out
to producers in remote areas to ensure fair value for their efforts
- Marketing
communication and information for artisans
- Advances
against purchase orders where necessary
- Training
& Education in skills development to raise product quality and
marketability
- Product
Design and Support in Product Development
- Quality
Control to increase producer awareness of the importance of quality
These values reflect fair trade principles which
have been developed by registered Fair Trade Organisations. Fair Trade is
a trading partnership, based on dialogue, transparency and respect, that seeks
greater equity in international trade. It contributes to sustainable
development by offering better trading conditions to, and securing the rights
of, marginalized producers and workers – especially in the South (IFAT).
Importance of
strategic Management in a company
Why do we need to lay so much stress on
strategic management?
Strategic management becomes important due to the
following reasons:
Globalization: The survival for business
First, global considerations impact virtually all
strategic decisions! The boundaries of countries no longer can define
the limits of our imaginations. To see and
appreciate the world from the perspective of others has become a matter of
survival for businesses. The underpinnings of strategic management hinge upon
managers’ gaining an understanding of competitors, markets, prices, suppliers,
distributors, governments, creditors, shareholders, and customers worldwide.
The price and quality of a firm’s products and services must be competitive on
a worldwide basis, not just a local basis.
The distance between the business sectors are
becoming less due to the provisions of certain facilities. Although political
boundaries are there but in order to become successful in business it is
essential to laid stress on globalization.
E-Commerce: A business tool
A second theme is that electric commerce
(e-commerce) has become a vital strategic-management tool. An increasing number
of companies are gaining competitive advantage by using the Internet for direct
selling and for communication with suppliers, customers, creditors, partners,
shareholders, clients, and competitors who may be dispersed globally.
E-commerce allows firms to sell products, advertise, purchase supplies, bypass
intermediaries, track inventory, eliminate paperwork, and share information. In
total, electronic commerce is minimizing the expense and cumbersomeness of
time, distance and space in doing business, which yields better customer
service, greater efficiency, improved products and higher profitability.
The Internet and personal computers are changing
the way we organize our lives; inhabit our homes; and relate to and interact
with family, friends, neighbors, and even ourselves. The Internet promotes
endless comparison shopping which enables consumers worldwide to band together
to demand discounts. The Internet has transferred power from businesses to
individuals so swiftly that in another decade there may be “regulations”
imposed on groups of consumers. Politicians may one day debate the need for
“regulation on consumers” rather than “regulation on big business” because of the
Internet’s empowerment of individuals. Buyers used to face big obstacles to
getting the best price and service, such as limited time and data to compare,
but now consumers can quickly scan hundreds of vendors’ offerings. Or they can
go to Web sites such as CompareNet.com that offers detailed information on more
than 100,000 consumer products.
The Internet has changed the very nature and core
of buying and selling in nearly all industries. It has
fundamentally changed the economics of business
in every single industry worldwide
Earth environment has become a major
strategic issue
A third theme is that the natural environment has
become an important strategic issue. With the demise of
communism and the end of the Cold War, perhaps
there is now no greater threat to business and society
than the continuous exploitation and decimation
of our natural environment.
The resources are scarce but the wants are unlimited. In order to meet the
wants of the world, the resources should be efficiently utilized. For example,
the use of oil resources or energy resources will make the people
to use these resources for a long time.
Strategic management – A route to success:
The study of strategic management integrates
different topics. Different courses are integrated due to the
study of this course so that businesses become
successful in every sector. It integrates the following:
- Marketing
- Management
- Fina
nce
Research and development
The management and marketing are essential part
of a business sectors. They should be integrated. Just like other sections of
the business are integrated under this study. This term is mostly used by
academia but this is also used in media.
BRAC and Aarong
The women Aarong employs are among the country’s
most disadvantaged. Through Aarong they have been offered a way out of
destitution and degradation where before they had none. And the benefits that
they receive extend well beyond simply the wages they earn for their products,
since every single woman who works in Aarong-owned production facilities is
also a beneficiary of BRAC’s multifaceted development programmes.
As a support entity of BRAC, a significant
portion of Aarongs earnings go directly into financing the NGO’s development
programmes in healthcare, education as well as economic and social development.
Artisans
Holding steadfast to its original mission, Aarong
today supports the lives and livelihoods of nearly sixty five thousand rural
artisans and handicraft producers, 85% of whom are women. More than forty
thousand of these women work directly for Aarong in its 13 production centers
in Baniachong, Gorpara, Jamalpur, Jessore, Kushtia, Manikganj, Rajbari,
Sherpur, and Pabna, Pollobi, Kurigram, Nilphamary, Jhenaidah and 653 subcentres
spread across Bangladesh.
Twenty five thousand independent cooperative
groups and traditional family-based artisans also market their crafts through
Aarong. Potters, Brass Workers, Jewellers, Jute workers, Basket Weavers,
Handloom Weavers, Silk Weavers, Wood Carvers, Leather workers and various
artisans with specialized skills from all over the country come to Aarong for
marketing and support services
Aarong
Production Centre
The Ayesha Abed Foundation (AAF) is an
organisation that aims to provide avenues for employment and income generation
for underprivileged rural women. It is an enclave for women, formed to uplift
them economically, through their work as producers, and also socially, through
their development into entrepreneurs. The Foundation provides an appropriate
working environment, financial and technical assistance, and training to
develop the women’s skills in various crafts. The Foundation was established to
commemorate the memory and work of late Mrs. Ayesha Abed, a co-worker and wife
of the Founder and Chairperson of BRAC. The work that is done in the Foundation
is a testament to her commitment to the issues of education, training and
employment opportunities for disadvantaged women. It was she who in 1976
initiated all the present major activities of AAF in Manikgonj.
The AAF aims to work with the most
underprivileged women in the society. These women are often the most neglected
and are in need of much assistance and support. The AAF plays the role of a
facilitator. The women are placed in an enabling environment, with other women
of similar socio-economic backgrounds. They are trained and then given the
opportunity to generate income. One of the major challenges that these women
have to face is that they are marginalised and they, on their own, have no way
of becoming part of the economic system. This is where the AAF steps in,
helping such marginalized women out of their peripheral existence in society,
and giving them the opportunity to become involved in sustainable enterprise.
The AAF is closely interrelated with other
programs, especially BRAC Development Program (BDP) and Aarong. The women
workers of the AAF come from the BDP organized Village Organizations. Working
at the AAF thus gives the women access to other BRAC programs. All of the AAF’s
finished products are sold through Aarong, which additionally provides designs,
raw materials and financial support to the AAF. Since AAF supplies exclusively
to Aarong, it is treated as Aarong Production Centres.
Goals
- Empowering
destitute rural women by providing opportunities for employment and income
generation.
- Ensuring
commercial success of the enterprise of women producers.
- Reviving
traditional skills of rural artisans.
Services
- Free
Medical check-up including free eye treatment, eye-glasses and treatment
costs for severe illnesses
- Advance
wage payments for employees in need
- Day care
services
- Workers
retirement fund
WOMEN’S PRODUCTS
- Traditional
- Western
- Nightwear
- Shawls/Scarves
- Shoes
- Bags
- Fabrics
MEN’S PRODUCTS
- Traditional
- Executive
Shirts
- Maanja
- Fotua
- Short
Kurta
- T-shirts
- Stoles/Shawls
- Sandals
CHILDREN’S PRODUCTS
TEXTILE PRODUCTS
- Bed
- Table
- Living
- Kitchen
- Kids
- Rugs
- Fabrics
JEWELRY PRODUCTS
- Gold (see
Gold)
- Silver
- Pearl
- Other
LEATHER PRODUCTS
- Shoes
- Bags/Wallets
- Belts
- Boxes
- Photo
Frames
- Office
BAMBOO/LEAF PRODUCTS
Living
- Boxes
- Photo
Frames
- Dry
Decorative
- CD Racks
- Floor
Mats
Dining
- Mats
- Napkin
Holder
- Trays
- Place
Mats
- Coasters
TERRACOTTA PRODUCTS
Decorative
Dining
- Bowls and
Platters
- Diningware
- Glasses/Mugs
- Hot
Plates
- Pitchers
Lamps
Plant Accessories
SWOT analysis is a powerful technique for
understanding organizations Strength & Weakness and looking for the
Opportunities & Threats it may face. Used in a business context it helps
organization carve a sustainable niche in a market. This analysis is mainly
based on an imaginary situation.SWOT Analysis of Aarong
Strength
Aarong is a very reputed organization. They are
now capturing 68% of total handicraft market share in Bangladesh. It’s a local brand and
now exporting their products outside of the country. Aarong has good reputation
for fine quality products. It has a strong management team who are continuously
giving their great effort to make it a successful one. Another important fact
is that, Aarong has almost “Zero” production damage rate which reduces their
cost. They are innovative and always bring some new product in the market which
meets customer requirement and expectations. The organization is a respected
employer that values its workforce.
Weakness
Aarong has a reputation for new product
development and creativity. However, they remain vulnerable to the possibility
that their producer may not be able to produce product timely due to their
inability. The collection channel of the organization is not that much
structured so that they can get the products from the producer on time and it
may create problem for them in future. If any producer is not able to make the
product on time due to some personnel problem then the company will also not be
able to deliver their product on time. This is a big problem and it happens most
of the time on delivery. Aarong charges higher price relatively than their
other competitors as a result some times customers lose their interest to by
product from them. Its sales force or sales girls within the outlet are not
properly trained up. Sometimes they make customers disappointed by their
attitude and customer doesn’t feel good to buy from there. Sometimes they
suffer for financial problem, although it’s a rare situation.
Opportunities
Aarong is very good at capturing the advantage of
opportunities. It can go for new distribution channel like it can make some
joint venture with some other small Boutique and sales its products in more
places. Through that it can capture more market share in the handicraft
industry in Bangladesh.
Aarong can expand its business globally. New market for handicraft such as
Europe and America
are beginning to emerge. People are now trendier about local events &
functions like Pahela Falgun, Pahela Baisakh, Victory day, Independence Day etc
and they buy new and special products for these events. Aarong can make new
products to sell in those special occasions. According to the season change,
people are also changing their preference in buying products and considering
this scenario Aarong can produce products on the basis of seasonal variations.
Threats
Aarong doesn’t have any big competitors right
now. But they have some small competitors like KayKraft, Anjans, Deshal,
Jattra, Khubsurti, Rina Latif, OZ, Rang and some other Boutiques established at
Banani 11, who are taking their 32% customer and increasing in a slow rate.
Aarong always face price wars with their competitors. Its competitors have some
superior products like OG’s Panjabi shape, Khubsurti’s design of Salwar kamiz
Rang’s Shari’s color, which is decreasing
Aarongs market share as well as sales. But now they are repositioning
their Brand to compete with them.
Competitors Analysis of Arong
Competitor
analysis in marketing is an assessment of the strengths and weaknesses of
current and potential competitors. This analysis provides both an offensive and
defensive strategic context through which to identify opportunities and
threats. Competitor profiling coalesces all of the relevant sources of
competitor analysis into one framework in the support of efficient and
effective strategy formulation, implementation, monitoring and adjustment.
Aarong has its own version of the competitive analysis and its function is
clear: to line up your product with other products and show where yours falls
short and where yours is superior. Each industry brings a different spin to
this old favorite and user experience design has its own set of criteria by
which to judge competitors.
From the above diagram it is seen that Aarong has
competitive advantage over it’s competitors on almost every factors. Only few
companies have ability to chase some sort of advantage like Aarong. Such as
Rina Latif’s product features, qualities and innovativeness, Kay-Kraft and
Anjan’s supplier, Rang’s color and Khubsoorti’s cost.
Conclusion & Recommendations
Established in 1978, Aarong is a fair trade
organisation dedicated to bring about positive changes in the lives of
disadvantaged artisans and underprivileged rural women by reviving and
promoting their skills and craft. Reaching out to weavers, potters, brass
workers, jewellers, jute workers, basket weavers, wood carvers, leather workers
and more, Aarong embraces and nurtures a diverse representation of 65,000
artisans, 85% of whom are women. Today, Aarong has become the foundation upon
which independent cooperative groups and family-based artisans market their
craft, in an effort to position the nation’s handicraft industry on a world
platform of appreciation and acknowledgement.
In these situation I recommend some to go ahead
in fashion sector:
- Government
should mostly contribute in this sector.
- Establish
fashion institute .
- Arrange
fashion competition in between the country.
- Invite
foreigner; etc.
General
Banking is the starting point of all the banking operations. It is the
department, which provides day-to-day services to the customers. General
Banking department provides these services in a faster and better manner.
