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PESTLE ANALYSIS OF BANGLADESH

ASSIGNMENT
1/10/2011

PESTLE ANALYSIS

Submitted to:
MR. Amit Gupta

BY: kaushal kumar vairagi


BLR1201031002

PESTLE ANALYSIS OF BANGLADESH

INTRODUCTION Bangladesh is one of the most strongly populated developing countries in the world. It is democratic country with 300 MPs elected directly by its people. The country got its independence in the year 1971 and was tailed by 15 years rule by the military. It finally became a democratic country in the year 1991. In the parliament, walkout by the opposite party and calling of strikes have become common over their political culture Capital: Dhaka President - Zillur Rahman Prime Minister - Sheikh Hasina Wazed Languages Bangla, English Currency -Taka(BDT)

PESTLE Analysis: PESTLE analysis is done to find out the external environment of a business and to help businesses formulate a strategy to gain a competitive advantage. PESTLE consists of political, economic, social, technological, legal and environmental analysis and showing the external environment. Here, we study the PESTLE analysis of our neighboring country, Bangladesh.

PESTLE ANALYSIS OF BANGLADESH

PESTLE ANALYSIS OF BANGLADESH Political Factors: Bangladesh being a very populated country always wanted to have a representative government since its partition in 1947 from India and separation from Pakistan in 1971. It helped in creating a democratic political system. The constitution was publicized in 1972. Later, the hero of 1971 war Sheikh MujiburRahman changed the constitution and took over the power as a dictator. The successors of him all were expressing military interests. But still the fight for equality was active in the country as in the 1980s. There started the evolution of different political parties but each with a different view and all of them wanting to rule the country.The socialist, the communist, the centrist and various traditional Islamic parties were few of them. There was lot of political instability in the country during 1982 when parties refused to take part in parliamentary politics when Hussain Muhammad Ershad was the president. It resulted in the military to continue its autocratic rule.Ershad held power and bought in a change by introducing 2the structure of local elections in the country which showed some democratic ideals. This resulted in bringing up new political leaders and groups for representative race throughout the country. Economic Factors: The economy bagaladesh of is constituted by that of a developing c country It per capita income in 2009 was est. US$1,500) significantly lower than India Pakistan both which are also lower than the world average of $10,497.According to the gradation by the IMF, Bangladesh ranked as the 48 largest developing country in the world in 2009, with a gross domestic product of US$224.889 billion. The economy has grown at the rate of 6-7% p.a. over the past few years. More than half of the GDP belongs to the service sector; nearly half of Bangladeshis are employed in the agriculture sector, with RMG, fish, vegetables, leather and leather goods, ceramics, rice as other important produce. Bangladesh Corporate Tax Rates The standard rate of corporate tax in Bangladesh is 27.5% in 2008 - 2009 tax years. This is the standard corporate tax rate applicable to publicly traded

PESTLE ANALYSIS OF BANGLADESH


companies in Bangladesh, a list including tax rates for other corporations are as follows: Publicly Traded Company Non-publicly Traded Company Bank, Insurance & Financial Company Mobile Phone Operator Company 27.5% 37.5% 45% 45%

If any publicly traded company declares more than 20% dividend, 10% rebate on total tax is allowed. Seasonality/Weather Issues Bangladesh is a country crisscrossed with rivers, and thus uses a wide network of water-based public transportation. Ferries and other boats compete with the railroads as a major means of public transport. Typically overloaded and topheavy, ferries do capsize, particularly during the monsoon season from May to October or during unexpected thunderstorms or windstorms. Every year there are dozens of fatalities resulting from ferry accidents.

Social-cultural factors: The history of Bangladesh culture is a unique and it is back more than 2500 years ago. The lives of common people, rivers, land formed a huge heritage more differences than other regions. The culture of Bangladesh has evolved over a year and it encompasses the culture diversity to a several social groups. Its culture is composite and over a century has major influences Jainism, Islam, Buddhism and Hinduism. It is developed in various forms like art and craft, folklores and folktales, drama, music and dance, festivals and celebrations, philosophy and religion, languages and literature. Bangladesh is also known as highly populated nation in the world that there is no island. More than half of the Bangladesh population (98 percent) is Bengali, and among 2 percent of people belongs to the tribal and rest of the people are nonBengali groups. And it is also estimated about approx. 83 percent of the people are Muslim, and among 16 percent of people are Hindu, and 1 percent of people are Christian, Buddhist or others.

PESTLE ANALYSIS OF BANGLADESH


The growth rate of annual population of Bangladesh is about 2 percent. The statistical rate of infant death is about seventy five per one thousand live births. Life expectancy of male and female is about fifty to eighty years. The annual rate of population was increased by 2.5 percent in 1980s but it decreased by 1.9 percent in 1990s. It has primary language called Bengali by most nonnatives. The female autonomy is highly influenced by marriage, family and kinship relationships in the agrarian society of Bangladesh. The division of labor between the sexes is highly influenced by religion, age, culture norms and practices and political system.

Technological factor Technological factors for any country can be responsible for reducing the barriers to entry by reducing minimum proficient production levels. It includes research and development, technology inducements, computerization etc. Technological change has unbelievable impact in our every domain of life. These technological revolutions have influence on commerce, service industries, manufacturing, trade, across the world. Bangladesh is not any exclusion. Bangladesh is relishing the aids of quota system in terms of RGM. Again the observance to evolving technology needs them to struggle with the competitor in the international market, meeting the demand of the high-end users of the garments. Stock market of Bangladesh has once again grown from the pessimism depression of 1996. Good thing is stakeholder now have more reliance in Dhaka stock exchange of which is has a computerized trading system. Fundamentally due to this phenomenon data of trading is accessible on the website stocktaka.com. Stocktaka.com contains technological analysis indicators as well as fundamental analysis section. Telecom industry: Unhappily Bangladesh economy is not strong enough that allow its infrastructure for R & D of large scale.. Bangladesh policies and government process obstruct firm technological alteration, the telecom companies has in many ways affect and both the private and public sector to capitalize and convey in new technology such as submarine cables and WiMaX , even though restrictions have not permitted these technologies to fanfare.

PESTLE ANALYSIS OF BANGLADESH

Legal Factors: It is very vital to learn the legal system of a country when trading or investing in the country. The current judicial system in the country goes back to the British rule around two hundred years back. It has gradually evolved from mixed structure of both Indo-Mughal and English law.It has traces of both Hindu and Muslim administration.

Corruption and difficult authorized and governing structure are presentlyperceived to be barriers. The local sellers regard it as the second most vital barrier for growth.The government has set up Anti-Corruption Commission (ACC).The foreign policy of the nation was focused on county cooperation. They have established policies for trade by the ministry. There havent been many changes in the policy nearly. The custom tariffs are the main source of income for the country. Environmental Factors According to Mr. M. ZamiulAlam, the Deputy General Manager of BSCIC, the country is facing some environmental problems in the current year. Agriculture is there is mostly based on the economy of that region. And the population of the country is affecting of natural calamities like floods, cyclones etc. Some of the local organizations are there with NGOs to plan for changing land into forest and still the process is going in early stage of environment

PESTLE ANALYSIS OF BANGLADESH


programme. Another affecting problem is pollution that affects the public and private sector and they had done a project on Dhaka chamber that tells us awareness about the small and cottage industries there. For the small cottage industries they need those people who are successful in setting up business and developed awareness among the people and the environmental sound technology will slightly change in the country that will help the business people to be beneficial in general.

conclusion: THE analysis is here shows what is a factor in bagaladesh who realtes to business, this study is more help for business organization in bagaladesh . I say that PESTLE analysis is very important in today business world.

PESTLE ANALYSIS OF BANGLADESH


REFERENCES: Bangladesh Environment - current issues. (2012, january). Retrieved07 12,2012 from CIA World Factbook: http://www.indexmundi.com/ Bangladesh /environment_current_issues.html Global finance . (2012, feb). Retrieved from http://www.gfmag.com/gdp-data-countryreports/186- -gdp-country-report.html#axzz1ltcQVYUp Jodie R. Gorrill, M. I. (n.d.). Bangladesh Culture. Retrieved 8 20,2012 from CIA The World Factbook 2007: http://www.communicaid.com/%5Ccross-culturaltraining%5Cculture-for-business-and-management%5Cdoing-business-in%5C -businessand-social-culture.php Bangaladesh industry. (n.d.). Retrieved 08 25, 2012, from edco: www.times of india.com economictimesbagaladesh(n.d).Retrived0823,2012form http://economictimes.indiatimes.com/topic/bagaladesh-economi/news