Case Study: How Tasnims Group Fall From Sky?

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Tasnims Group Bangladesh
Tasnims Group Bangladesh

Tasnims Group was one of the youngest group of companies in Bangladesh. From 2009 Tasnims Group started its journey with a single company named “Paradox”. “Paradox” used to sell garments stock lot products remotely in Dhaka city. Md. Habibul Islam Safin was the founder of “Paradox”.

The Journey of “Paradox” and Habibul Islam Safin

In 2009 with only 350 BDT Mr. Safin started his journey. After 2 months “paradox” company had been established with a capital of 20,000 BDT. In 2015 Mr. Safin established “Tasnims Group of companies” composed of 4 different projects. “Paradox” has been changed to “Shunoyona Textiles”.

Tasnims Group of Companies

Tasnims Group of companies is composed of 4 different companies-

  1. Shunoyona Textiles
  2. House of Farins
  3. Farins International
  4. Akibuki.com

A short description of each company has been given below-

Shunoyona Textiles

“Shunoyona Textiles” is a buying house. The key product of “Shunoyona Textiles” is stock-lot apparel. “Shunoyona Textiles” supplies gents garments in Bangladeshi market.

House of Farins

“House of Farins” is Bangladesh’s first online designer ladies dress retailer. The brand does not supply any duplicate or fast fashion product in Bangladeshi market.

Farins International

“Farins International” is a digital marketing agency for Bangladeshi entrepreneurs only. Online news magazines, digital marketing services, and software are the products/services of the company.

Akibuki.com

Akibuki.com is an online marketplace for genuine watercolor/oil color/Acrylic paintings.

Why Tasnims Group does fall?

In the year 2015, the chief executive officer of Tasnims Group had decided to expand the company. For that, they had invested in the aviation market and started “Ankan Airlines”.

“Ankan Airlines” was Bangladesh’s first private jet service provider. But the market size for the company in Bangladesh was almost zero. To survive in the market “Ankan Airlines” expanded its services outside Bangladesh.

With a limited amount of budget, “Ankan Airlines” had expanded in a very competitive market. After one year “Ankan Airlines” had failed to raise funds to continue the operations. Though the company was generating revenue day by day it may need 2 years more to establish itself perfectly in the market.

Lack of funding and poor operational root choice was the major reasons for Tasnims Group’s tremendous loss. At the same time, the management of the company was not able to make appropriate strategies. The fall of “Tasnims Group of companies” was an example of improper business model, inefficient management and poor market assumption.

How Tasnims Group Bounced Back?

After a massive loss, it was pretty sure that the company is going to be bankrupted. Every month Tasnims Group was suspending workers to reduce the cost of maintenance. But the board of directors did not lose their hope on the chief executive officer. With very limited resources Tasnims Group had to come back on the track.

At the beginning of 2019, the CEO had called off all kinds of operations of the companies. It was like the company has fallen down. But after 6 months suddenly the company bounced back in the market with 4 companies. The board was rearranging the setup and operational plans and policies.

Why BOD Members did not Change CEO?

During the crises period, all predicted that the CEO will be suspended. But the BOD members had a blind eye trust on the CEO and the management.

 

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