INTERNAL ENVIRONMENTThe internal environment is the environment that has a direct impact on the business. Here there

are some internal factors which are generally controllable because the company has control over

these factors. It can alter or modify such factors as its personnel, physical facilities, and

organization and functional means, like marketing, to suit the environment.

Management structure and nature

The structure of the organization also influences the business decisions. Rahimafrooz is a

proponent of Management by Objectives (MBO) .Rahimafrooz’s MBO are found in the form of

the 5S Japanese technique they follow both in the organizational and individual level: seiry

(differentiating between necessary, unnecessary and disposable), saiton (a layout satisfying all

requirements), saiso (emphasis on a clean work environment), setuske (routine effectiveness of

operations), and seiketsu (maintaining an organized standard).

The Senior Management of Rahimafrooz is as follows:

NEAZ RAHIM Group Director

MUNAWAR MISBAH MOIN Group Director

AFROZ RAHIM Group Chairman

MUDASSIR MURTAZA MOIN Group Director

FEROZ RAHIM Group Managing Director

MOHAMED ISMAIL Group Deputy ManagingDirector

Human resource

Rahimafrooz is a company grown from small trading concern into the regional player that is

today. Rahimafrooz is poised for new phase of dynamic growth. Today Rahimafrooz is striding

into the 21st century with a vision for growth and diversification. Their corporate strategy aims

for international partnerships and a path of dynamic growth: they intend to transcend national

borders and evolve into a globalize business group.

Rahimafrooz believes that attracting and retaining talented employees is the key to long term

success. Employee retention involves a two-pronged approach of creating development

opportunities for key employees and providing incentives (through compensation) that

strengthen loyalty. Also Performance appraisal and Handling Grievances are two key factors in

employee retention.

Of all the changes a company can make in order to improve morale, decrease human resources

costs, limit personnel liability, none is more effective than focusing on hiring the right person for

the job. The hiring process of Rahimafrooz consists of three distinct processes:

• Human Resource Planning (HRP);

• Developing Analysis, Description and Specification of the job for which hiring is

performed,

• Recruiting and Selection.

Company image and brand equity:

The image of the company in the outside market has the impact on the internal environment of

the company. It helps in raising the finance, making joint ventures, other alliances, expansions

and acquisitions, entering sale and purchase contracts, launching new products, etc. Brand equity

also helps the company in same way.

Miscellaneous factors

The other factors that contribute to the business success or failure are as follows:

• Physical assets and facilities : Facilities like production capacity, technology are among

the factors which influences the competitiveness of the firm. The proper working of the

assets is indeed for free flow of working of the company.

• Research and development : Though R&D department is basically done external

environment but it has a direct impact on the organization. This aspect mainly determines

the company’s ability to innovate and compete.

• Marketing resources : Resources like the organization for marketing, quality of the

marketing men, brand equity and distribution network have direct bearing on marketing

efficiency of the company.

• Financial factors : Factors like financial policies, financial positions and capital structure

are also important internal environment affecting business performances, strategies and

decisions.

2.4 EXTERNAL ENVIRONMENT

It refers to the environment that has an indirect influence on the business. The factors are

uncontrollable by the business. There are two types of external environment.

Micro Environment

The micro environment is also known as the task environment because the micro environmental

forces have a direct bearing on the operations of the firm.

Customer:

Rahimafrooz has the largest number of battery customer in Bangladesh including both individual

and business customers. IPS, UPS, batteries for IPS and UPS, automotive batteries etc are the

products for individual customers. There are also business customers for these products but their

main business customers are for VRLA batteries.

Competitor:

Rahimafrooz is playing a sort of monopoly role in the market of batteries and IPS, UPS and

having the advantage of pure monopoly in the sectors of battery recycling and solar battery

production. Their intra-type competitors for batteries, IPS and UPS are Navana, Aftab, Grameen,

BRAC, Energypac, Intraco etc. Walton, Honda, Genpower, Power Sonic, Apollo etc. are some

foreign competitors. But most of the domestic competitors do not have a mentionable market

position that could challenge Rahimafrooz. A few inter-type competitors are there who are the

producers of generators are. So they are not the direct competitors but indirectly they are giving

them a sort of competition.