BANGLADESH
An Internship Report Presented in Partial Fulfillment of the Requirement for the Degree Bachelor of Business Administration (BBA)
Letter of Transmittal
To Mohammed Sohel Islam, Lecturer, Marketing, School of Business, Independent University, Bangladesh
Sub:
Dear Sir Here is my internship report on Exploring Marketing Problems in the Context of A.V.R. Bangladesh. I am submitting this report as a part of my internship in A.V.R. Bangladesh. It gives me immense pleasure to tell you that working on this internship report has given me a wide range of exposure. To prepare this report, I have faced extensive one on one interview, starting from clients in the Middle East to the local work force. It has taught me the value of patience, and has given me a higher insight on the level of communication in the practical world. The report is based on my experience in the institutions Marketing division. I have tried to accumulate what I learned during my stay, in this report. I shall be encouraged if you receive this report.
ACKNOWLEDGEMENT
This report would not have been possible without the practical orientation I received at A.V.R Bangladesh. I would like to thank my supervisor Mr. Haseeb Alam, C.E.O of A.V.R BD, for his constant guidance and supervision at work. In addition, I would also like to thank my faculty supervisor Mohammed Sohel Islam, for his guidance, instructions, and patience which made this report possible.
TABLE OF CONTENTS
Chapter 1: Introduction6 Chapter 2: Methodology..11 Chapter 3: Company Profile....13 Chapter 4: Literature Review..22 Chapter 5: Findings & Recommendations. 26 Chapter 6: Conclusion..30 REFERENCES..32
TABLE OF FIGURES
Table 1.1: Different categories of Bangladeshi migrant workers.8 Figure 3.1: Company Logos19
EXECUTIVE SUMMARY
The impact of globalization on the world economy is becoming increasingly all pervasive. Its positive impact is no longer confined to the developed countries. Even a developing country like Bangladesh, with its weak economy, is looking at globalization to strengthen its base. In the last decade cross border movement of people across nations, especially the movement of skilled and the unskilled labor from developing to developed countries has resulted in significant increases in the incomes of the former through remittances of foreign exchange by their overseas citizens. This phenomenon has given a boost to the economies of the developing nations. Bangladesh has an edge over many other developing countries in its abundance of human resources. This has resulted in its emergence as a key global player as a source country for the supply of manpower to the developed nations. This report sets out to:
Establish the importance of A.V.R Bangladeshs role in developing the overseas manpower industry as one of the growth drivers of Bangladeshs economy. Scrutinize all the marketing aspects within AVR BD and recommend possible changes.
Chapter 1
INTRODUCTION
1.0 INTRODUCTION
Manpower is one of the major national resources of Bangladesh. About 35 million people constitute this vast reservoir of manpower. However, inadequate education and insufficient capacity of the local industry is responsible for a large section of the population remaining unemployed. At the current level of development it is not possible for Bangladesh to absorb the full range of available unskilled, semi-skilled and professional manpower within the country in an appropriate manner and hence the need to find employment opportunities for them abroad. The absence of a vibrant domestic labour market creates huge demand for overseas employment among the young labour force. Starting in 1976, over the years, Bangladesh has emerged as a notable exporter of manpower and a steady source of human resources to a number of foreign countries who need to import manpower from other countries. In Bangladesh, the recruitment of migrant workers was started in mid 1970s by private individuals on an informal basis and in an ad-hoc manner. Although the government machineries got involved into the recruitment regulatory process a decade later, the dominance of the private sector along with unorganized, fragmented and ad-hoc nature of business has continued to characterize the overseas recruitment business. The recruitment process involves identification of market need in the receiving country, dissemination of information to prospective job seekers, testing for selection, finalization of contract, settlement of cost of recruitment, work visa, travel, placement with the employer and settling down of the migrant worker in the receiving country. These involvements with a number of laws and procedures, differences in geography, climate, language and culture of the sending and receiving countries, make the process complex as well as risky. In the absence of an international arbiter, the process becomes hazardous, more so for the migrant workers.
Officially, 4.1 million Bangladeshi workers migrated for working mainly to 22 countries
MARKETING PROBLEMS IN A.V.R BANGLADESH from 1976 to 2005. The top two destinations are Saudi Arabia (50.58 per cent), UAE (13.24 per cent). However, in 2006 for 377591 Bangladeshi migrant workers the top two destinations are UAE (36 per cent), Saudi Arabia (29 per cent). Table 3.5 shows the categories of the migrant workers that have migrated from Bangladesh at different periods since 1976. However, there are differences of opinion on slotting migrant workers between semi-skilled and skilled categories. Some people believe that a large proportion of the workers classified as skilled actually belong to semi-skilled category.
From the above table, it appears that Bangladeshi migrant labour force is mostly unskilled and semi-skilled. The contribution of professional and skilled labour is small. However, there is a growth in the overall export of semi-skilled and skilled manpower from Bangladesh.
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and growth, promotional opportunities, pride for creative and innovative ideas, providing challenge work etc. The external factors are classified into local factors and national factors:
1.2 Objectives
A.V.R. Bangladesh incorporates a pool of highly qualified and experienced professionals in the Development, Marketing, Management and Training Divisions, and the strengths of A.V.R BD is in its committed services and its dynamic team members. Operational excellence is a result of modern systems implemented in its due place, but when it is tied
MARKETING PROBLEMS IN A.V.R BANGLADESH up with commitment and competent workforce, the output is bound to be of great magnitude as such with A.V.R BD.
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The primary objective of A.V.R BD is to create a quality outlet for addressing the ever growing international demands for skilled, semi skilled and unskilled workers for the Human Resource Supply Industry. The company offers a combination of services that is carefully addressed as per the specific requirements of all our customers.
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Chapter 2
METHODOLOGY
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2.0 Methodology
The methodology includes literature review, secondary data analysis, interviews with the responsible person, case study followed by observations to effective Descriptive research.
Literature Review and Secondary Data Analysis: The Literature searching, secondary data analysis and the case study are the sources for describing the marketing strategy and the trade marketing activities and the Integrated Marketing communication within A.V.R. Bangladesh. The Literature search is concluded from the synopsis of the case studies conducted by A.V.R. Bangladesh.
Primary and Secondary Data: In the report, primary and secondary data has been collected through interviews and contacts with A.V.R. BDs personality concerned. Interviews have been administered by formal and informal discussion. No structured questionnaire used. Information regarding office activities of A.V.R. BD were collected through consulting A.V.R. BDs records and discussion with A.V.R. BDs personal.
Qualitative Research, Surveys and Observations: A qualitative study will be conducted to understand the relevant issues following certain surveys of experts (knowledgeable persons), focus groups and in-depth interviews. This is done for understanding the marketing activities and its purpose followed by a descriptive study based on primary data using surveys and observations.
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Simple random sampling is simple to accomplish and is easy to explain to others. Because simple random sampling is a fair way to select a sample, it is reasonable to generalize the results from the sample back to the population.
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Chapter 3
Company Profile
A.V.R Bangladesh
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The company always stands guarantee as regards to the workforce mobilized. If the worker is found not up to the standard during the probation period, they always make the replacement free of charge and at no cost to the employer. AVR BD always believes in long term relationships. It never visions a client as a one time source of business; rather strive to develop a long lasting bond. Its objective is to sustain the pattern of mutual growth with its partners. The company incorporates a pool of highly qualified and experienced professionals in the Development, Marketing, Management and Training Divisions, and the strengths of AVR
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BD is in its committed services and its dynamic team members. Operational excellence is a result of modern systems implemented in its due place, but when it is tied up with commitment and competent workforce, the output is bound to be of great magnitude as such with AVR BD.
The primary objective of the company is to create a quality outlet for addressing the ever growing international demands for skilled, semi skilled and unskilled workers for the Human Resource Supply Industry. The company offers a combination of services that is carefully addressed as per the specific requirements of all our customers.
AVR Bangladesh is one of the leading facilitators for interviewing and selecting prospective candidates for the following job category: Civil & Mechanical Engineers, Civil & Mechanical Foreman, Construction Labors, Masons, Carpenters, Painters, RCC Steel Fixers, Rod Benders, House Wiring Electricians, Plumbers, Pipe Fitters, Pipe Fabricators, Welders (3/4/6 G, Tack / MIG/ TIG), A/C Technicians, Duct Fabricators,
Duct Fitters, Insulators, Gypsum Carpenters & Fixers, Hotel Crew, F&B Categories, Cleaners, Security Personal, All Types of Drivers, Sewing Technicians, Educated General Helpers, etc.
The company has one of the most modern facilities to conduct trade tests for all the above mentioned categories. AVR Bangladesh also maintains an extensive computerized database which is equipped with modern data processing technologies.
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Brick Layer Masons Brick and Tiles Shuttering Carpenters Steel Fixers Painters Plumbers Electrician Drivers (trailer, heavy & light) Duct Men Fitter / Fabricator / Insulator Pipe Fitters Pipe Fabricators Aluminum or Glass Fabricator Scaffolders Steel Fabricators Supervisors Welders (TACK- 3 / 4 / 6 G) Welders (TIG & MIG) Gypsum Carpenters and Board Fixers Air Conditioner Technician Construction or General Helpers Engineering:
Civil Engineer Mechanical Engineer Electrical Engineer Maintenance Engineer Site Supervisors in Respective Field Site Foreman in Respective Field Agriculture Industries:
Farmers Fisherman Fruits Plucking Gardener Poultry Hatchery Worker Hotel Crew (Facilities Management):
MARKETING PROBLEMS IN A.V.R BANGLADESH Waiter/Waitress Bell Boy Chef Cleaners Executive House Keeper F&B Manager Green Keeper/Mower Hair Dresser Interpreter Kitchen Staff Laundry Man Maintenance Engineer Air Condition Technician Utility Worker Others Categories:
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Taxi Drivers Valet Parkers Municipality Cleaners General Cleaners Sewing Operators (Various Machines) Pattern Makers Security Guards Accountant and Related Professionals I.T. Professional Exterior Building Clean
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3.3 Clients
The following is just a percentage of the many esteemed clients and organizations that AVR BD have been privileged to work for: Al Habtoor Engineering Al Arif Group Gulf Line Modern Construction, Valtrans Al Habtoor Al Naboodah Al Swiss Berger Paint Emirates Ltd. Dhabi Group Al Rajhi Group Dubai Gulf Contracting Company Al Shafar General Contracting Sharjah Towers Apron Kitchen Larson Toubro Bin Belaila Baytur LLC M/s. Abiat Oleo Industries Eastern Contracting Company Eastern Holdings Waterman Bin Zayed KONE Middle East Civilco Royalton Holdings Tanzifco LLC Trans Emirates Contracting Emirates General Contracting Company (EGC) S.S. Lootah Group Bukhatir Group Intermass Contracting Co. LLC Guris & ACD JV Leighton Al Attar Construction Technology Contracting RAK Prisom Construction Contracting - RAK NPGC Qatar Menasco Mech LLC Roshan Construction Precision Employment and Training Services Transguard LLC French D cor LLC Core Construction RAK Pre Cast FZC Gunal Construction TAV Gulf Delta Al Emarat Al Dana LLC. Best Building Company Cairo Company Al Essa International M/s. Quten General Maintenance Al Sahel Contracting Clock Work LLC Crescent Marine Engineering Co. LLC. Dhabi Contracting EMCO Building and Contracting LLC Khalifa Darwish Company Al Atlal Contracting Santini Uniforms Bin Ham Electro Mechanical Roadster Diner Lebanon Saraya Contracting Libya Hi-Tech Concrete Products LLC Powertrack Steel Industries LLC Stallion Bu Falasa Company JTC - Al Jaber Group - Qatar CED - Al Jaber Group Qatar JEM - Al Jaber Group Qatar D.S. Constructions Ltd. - Libya Black Cat Engineering Qatar Khalid General Maintenance, Union Chemicals Abu Dhabi, Al Tarif General Transportation, EB International, Top Furniture Dubai Al Nakhreh Construction LLC.Etc.
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Chapter 4
LITERATURE REVIEW
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4.0 Middlemen
Nowadays, the income potential of a recruitment business is certainly causing many companies and independent businessmen to enter the workforce management field and earn good money. The main key for starting a recruiting business is getting connected with employers as well as employees or candidates. The business may look fruitful on paper, but one needs to prove his practical proficiency as a middleman between companies and applicants. Let us now move our attention to few important tips on opening a professional hiring agency (Stephen Rampur, 2011).
Unskilled and semi-skilled workers are not allowed to migrate directly to a foreign country. They need to be recruited through manpower agents and contractors after which calling visas are issued to them. Thus the institutional structures of the origin country oblige the poor migrants to develop vertical links or weak ties with central manpower agents. The future migrants therefore, rely on their village based middlemen, or dalal, to gain access to networks with manpower agents in Dhaka. In fact, it is found that the majority of the migrants depend on these types of governmental and non-governmental manpower agents (Nayeem Sultana, 2008).
Ever since Manpower Export commenced in Bangladesh, complaints and allegations regarding Recruiting Agencies for swindling, cheating[6] and lack of business ethics, have caught the attention from the Government to bring in regulations and Human Rights Organizations along with the state operated BMET (Bureau of Manpower Employment and Training) promoting transparency, know-hows of recruitment process, awareness and general knowledge on cultural diversity & work environment abroad.
MARKETING PROBLEMS IN A.V.R BANGLADESH Competition between middlemen from the overseas employing countries, aggressive marketing by Recruiting Agents and immense interest & demand from Bangladeshi
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workers have inflated the migration cost greatly. This has been widely criticized by and brought deep concerns to many Developed Countries and Human Rights Organizations, which led the current EC to take measurements through round table discussions leading to ongoing efforts for an affordable, reasonable yet competitive migration cost. March 13, 2007, saw BAIRA's elected Executive Committee to be dissolved and it's President MAH Salim (MP) of Silver Line Associates, arrested[8] by the Joint Forces. Accusations of malpractices, monopolization of manpower export by few and the illegal opening, operating and owning of a branch, 'BAIRA KL SDN BHD' in Kuala Lumpur, Malaysia.
Some of the important issues and problems facing the migrant labour as reported in various studies and media are:
Recruitment agencies exploit the migrating workers in many ways. Migrants are forced to pay huge fees as bribe to get work permits and visa documents. The agencies sometimes export people with fake documents which cause great suffering to the migrants. A large proportion of the workers abroad send the remittances via hundi instead of through bank transactions as bank procedures are difficult and costly and the funds delivery takes comparably longer time.
Skill certification requirements in the host country either prevent market access causing a rejection of the work permit or visa application, or limit his/her scope for work to specific activities once he/she enters the overseas market, preventing him/her from practising the core skills. Although intra-corporate movement is already one of the most liberal categories within GATS Mode 4, due to negligible presence of Bangladeshi enterprises abroad, Bangladesh
MARKETING PROBLEMS IN A.V.R BANGLADESH is not in a position to benefit from this opportunity unlike India and China. Most of the unemployed skilled and non-skilled workers need to migrate to other countries on the
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basis of acquired market access through bilateral foreign relations or markets explored by the recruiting agents. Bangladesh is a Muslim country and has a dubious international image due to some religious extremist groups. Hence it is not on the priority list for many of the labour demanding countries. There is a crying need to build a proper image of the country abroad to get benefit of foreign labour markets. The trade attachs of the country abroad normally facilitate Bangladeshi emigrants or take care of them in emergencies. The competitive situation, however, demands that they should go further and find market access to promote this sort of trade. Due to social and cultural reasons the percentage of women workers is low. They comprise around one or two per cent of the total overseas workers. They have restrictions at various levels to go abroad. However, the global opportunities for some occupations dominated by women are huge and competition is far less. In many countries where Bangladeshi immigrants work there is a substantial population of illegal migrants from Bangladesh as well as other countries. This has made the host country governments and the locals increasingly wary of migration. In Bangladesh, migrant workers lack proper bodies to represent them both in their home country as well as the host countries. Associations that represent migrant workers are the Welfare Association of Repatriated Bangladeshi Employees (WARBE) and the Bangladeshi Ovhibashi Mohila Sramik Association (BOSMA), formerly known as the Bangladeshi Women Migrant Association (BWMA). These associations are plagued by shortage of financial resources and organizational capacity and have very limited reach (Professor Sougata Ray, 2007).
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Chapter 5
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According to the U.A.E laws, companies are not allowed to take any additional financial charges against their recruited candidates but in reality, certain companies charge a hefty amount to cover their visa costs.
For e.g. Client called Emirill LLC do not charge any additional fees for their recruited candidates. In this case, AVR BD can comply with the government regulated rate of a maximum service fee of Tk. 84,000, which is inclusive of every formality, starting from air fare, lodging, food up to the reaching their final destination.
This has turned out to be a major problem, as this trait is limiting the number of potential clients for AVR BD. Top class companies which practice this policy of charging extra for the visas, in turn limits the potential of conducting further business with them.
Recommendation
The government should make it mandatory for all companies to genuinely get their demand letters attested by the local Bangladeshi agencies from the destination of recruitment. The embassies will only attest documentation only if they get an assurance from the employer, that there will be no financial charges to candidates against their recruitment.
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Middlemen increase the cost for the employee because every middleman expects a commission for bringing this opportunity to the employee. By the time a potential employee reaches the agency, there might be up to more than 3 middlemen already involved.
Recommendation
Recruitment agencies should start having regional offices AVR BD has regional offices in Chittagong and Chapainawabganj, where a data bank has been created for specific skilled candidates:
This makes the recruitment process much transparent and cost effective for the potential employees.
After a visa has been issued, some candidates decide not to fly reason being, family obligations, homesick, etc. In this case, AVR BD gets stuck with the visas for which a hefty amount of penalty is charged by the client.
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Recommendation
Certain clients replace the visa at an extra charge depending on the validity of the labor approval.
5.4 Ticketing
Too many taxes are being imposed on each ticket, hence the price of passage goes up significantly, and i.e. recruitment cost goes up.
Recommendation
AVR BD has ventured into the ticketing business by opening their very own travel agency called AVR BD Aviation
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Chapter 6
CONCLUSION
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This report has outlined the contours of a development strategy that has international migration as a critical pivot. The benefits are potentially very significant but they cannot be fully reaped by individual initiatives alone. The government has to facilitate the reaping of benefits so that social impacts are large. Laws have to be framed to minimize illegal traffic and labour exploitation. Networking with other governments and Diasporas is of paramount importance. Institutions must be created to process labour market information and trends. Training institutions and financial institutions have to play an imaginative and enabling role. This is where the government has to create incentives for private sector partnering the public sector in reaching developmental goals. There are challenges too for ensuring that some of the remittances are used for durable capital accumulation and the creation of local public goods. Labour markets are changing quite rapidly, and labour market integration is perhaps the next stage of globalization. Competition from other developing countries is likely to be intense. Bangladesh has a head start in having created migration flows of strength and value. The next challenge is to sustain this advantage and leverage global opportunities in a decisive and unambiguous manner. A comprehensive policy plan may be able to deliver all the gold that lies at the bottom of the migration pyramid.
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REFERENCES: