Navana Group is a diversified conglomerate in Bangladesh, with interests spanning sectors like

automobiles, real estate, construction, and energy. An action plan for a conglomerate like
Navana Group would focus on improving operational efficiency, expanding its market reach, and
enhancing sustainability.Here’s a short outline of an action plan:
Navana Group is a prominent business conglomerate in Bangladesh, with a diverse portfolio that
spans multiple industries. The group's history dates back to 1964 when it was founded by the late
Alhaj Jahurul Islam, one of the country's leading entrepreneurs. Originally, Navana was a part of
Islam Group, one of the largest conglomerates in Bangladesh during the 1960s and 1970s.

1964: Jahurul Islam founded the Islam Group, which later diversified into various
industries, including construction, real estate, and trading. Navana was established as one
of the core companies within this group.

Post-1980s: Following the death of Jahurul Islam in 1995, the group was restructured,
and his two major enterprises, Navana and Aftab Group, were separated. Under the
leadership of his nephew Shafiul Islam Kamal, Navana Group became an independent
entity and continued to expand its business portfolio.

Diversification: Over the years, Navana Group branched out into sectors such as automobiles,
construction, real estate, electronics, renewable energy, consumer products, and IT solutions.
This action plan would provide Navana Group with a roadmap to optimize its operations, expand
its reach, and ensure long-term sustainability.
 2. Gather information.

Navana Group, founded by Shafiul Islam Kamal in 1996, is a large conglomerate in Bangladesh
with a diverse portfolio spanning various industries. It originated as a separate entity from the
Islam Group after the death of Shafiul's brother, Jahurul Islam. Initially, the company focused on
the automotive sector, with Aftab Automobiles Ltd. assembling and distributing Toyota and
Hino vehicles, which remain key products today. Navana also holds exclusive distribution rights
for Hino Motors of Japan and has gained a significant market share in Bangladesh's heavy
transport sector.
Over time, Navana expanded into industries such as real estate, construction, electronics,
furniture, energy, food, logistics, and compressed natural gas (CNG). The company is known for
its strong reputation in these areas, especially in the automotive and CNG sectorsDespite its
success, Navana has faced strategic challenges. In the late 2010s, a combination of unplanned
expansion, management inefficiencies, and financial strain—aggravated by the pandemic—
pushed the company to the verge of collapse. In response, Navana initiated a major overhaul,
restructuring its management, and launched a 10-year plan in 2021 to stabilize and turn around
the business. The company focused on debt-equity restructuring and improving workforce
efficiency, aiming to make its ventures profitable within five years.
Navana is still seen as a prominent player in Bangladesh's corporate landscape, with aspirations
to expand internationally despite past challenges.

3. Identify the core strategic problem of Navana company.

To identify the core strategic problem of Navana, a diversified conglomerate based in

Bangladesh, we need to consider the following potential challenges that could affect such a
company. Core Strategic Problem: Diversification Management and Market Focus
1. Diversification Overload:
Navana has diversified across numerous industries, including real estate, automobiles,
construction, energy, and consumer products. While diversification can reduce risk and tap into
various revenue streams, it also brings significant challenges. One of Navana's core strategic
issues may be managing such a broad portfolio effectively, particularly if resources, expertise,
and strategic focus are spread too thinly across its business units.
Context:
With a large number of subsidiaries, Navana risks losing its competitive edge in its core markets
due to insufficient attention or focus. The challenge for Navana lies in aligning these diversified
businesses with a coherent strategy that maximizes profitability and market leadership.
Companies often struggle to maintain consistent performance across a highly diversified
portfolio, leading to inefficiencies and potential financial losses in underperforming sectors.
Managing talent and resources across such varied industries, from real estate to energy, can also
lead to internal conflicts and strategic dissonance, making it harder to optimize operational
efficiencies.

2. Market Competition and Innovation Deficiency:

In industries like automobiles, construction, and energy, Navana faces stiff competition from
both local and international players. Without continual innovation, the company may fall behind
competitors that are better at integrating technology, sustainability practices, or offering
competitive pricing.
Context:
For example, in the automobile sector, competitors that adopt more innovative manufacturing
processes or focus on electric vehicles may erode Navana’s market share if the company lags
behind in these areas.
Similarly, in real estate and construction, firms that prioritize sustainable development or smart-
city innovations may capture market attention, leaving Navana at a competitive disadvantage.
In summary, Navana's strategic problem lies in its ability to manage diversification while
ensuring competitive performance and innovation in its core sectors. Balancing these factors is
crucial to maintaining long-term growth and profitability.

4. Analysis the situation:

SWOT Analysis : A swot analysis is a systematic management for assessing the strengths ,
weakness, opportunity and threats that an enterprise or commercial enhance may face .A
swot analysis can be performance on a brand, location, company, or individuals.
Strength :
1) Economic stability and capabilities
2) charity
3) serviceability
4) marketing a strong elient dataset
 Weakness :
1) cost
2) quality important basic components
3) requalatoey
4) safeguard
5) data and security
Opportunity: The following are some of the technological and economy opportunity
available in Navana group.they have technological advances
Threats : the afrirementation threats exist for the Navana group.
quality - conscious consumer competitive destiny
PEST Analysis: The affected the Navana group of companies are PEST analysis ( political,
economic, social and technological) analysis of any industry sector investigation the
important factor that are affecting the companies operating in the sector.
to study the influence of political force on the Navana groups Industry sector in BD .
Financial Analysis: profitability is a metric that measure a firm's capable to generat it's
primary mode of business.this word is after employees as a generic indicator of a company
total economy condition throughout a span period. Navana group financial management
evaluation is a method of determine a company, sub - company or development sustainable,
durability and prosperity.

5. Develop Alternative strategies solutions:

Navana group has conducted a serious of strategy workshop for three 3 of it's major business
unites on 10-15-2022 at brac CDM , savar . The workforce were facility by Zunoks consulting, a
management consulting firm that Navana real estate limited, Navana limited and Aftab
automobile limited. The objective of the workshop were to re - define the strategy framework for
the business unites in items of strategy intent , key focus area's and strategies initiative. Navana
group recently organized an insightful training session on counseling technology, led by farzana
yeasmin , Head of HRBP and organized capabilities oc by Navana group.
 6. Evaluate the alternatives:
Navana group stands as one of the largest conglomerates in Bangladesh, with Rich history and
divers business portfolio with a focus on excellence, sustainable and innovation. Navana group
continues to play a significant role in various sectors, driving growth and contributing to the
development of the nation. Navana group a successful journey from construction to automobiles
and beyond. It has consider factors such as in Navana groups cost , risk , potential impact, and
alignment with the companys vision and object in successful journey from BD .

7. Recommend the Best Strategic Solution Recommended Strategy:

Diversification into High-Growth SectorsBased on the analysis of Navana Company’s strengths,

weaknesses, opportunities, and threats (SWOT), diversification into high-growth sectors such as
renewable energy and technology solutions is the most suitable strategic alternative. This
strategy leverages Navana’s existing capabilities in manufacturing, distribution, and real estate,
while entering markets that have significant future potential due to growing global demand for
sustainable energy and technological advancements.Justification:Market Potential: Renewable
energy is a high-growth sector with global trends pointing toward increased demand for solar,
wind, and other sustainable energy sources. By leveraging Navana's experience in distribution
and real estate, they can establish a foothold in this sector.Financial Stability: Navana has a
stable financial base, allowing it to invest in diversification projects without jeopardizing its core
businesses.Leverage Existing Strengths: Navana’s experience in managing large-scale projects
and real estate development can be transferred to renewable energy infrastructure and
technology-based initiatives.Competitive Advantage: Moving into high-growth sectors will help
Navana stay competitive and relevant in the long term, while mitigating risks associated with its
traditional markets.Sustainability Alignment: The global shift toward sustainability will not only
increase demand but also align Navana with the growing regulatory emphasis on reducing
carbon footprints, offering new business opportunities through green technologies.
Action Plan for Navana Group. Navana Group is a diversified conglomerate in Bangladesh, with
interests spanning sectors like automobiles, real estate, construction, and energy. An action plan
for a conglomerate like Navana Group would focus on improving operational efficiency,
expanding its market reach, and enhancing sustainability.
 8. Navana Group Outline of an Action Plan:

1. Operational Efficiency
Cost Optimization: Identify areas for cost reduction, such as energy consumption, procurement,
and waste.
Digital Transformation: Implement ERP and automation tools for smoother operations across
all sectors.
Talent Management: Develop employee training programs to enhance productivity and
innovation.
2. Market Expansion
Geographical Expansion: Explore new markets domestically and internationally to increase
market share.
Diversification of Product Lines: Introduce new products or services that align with market
demand, leveraging Navana’s existing business expertise.
Strategic Partnerships: Collaborate with global or regional companies to expand operations.
3. Sustainability Initiatives
Green Technologies: Invest in sustainable technologies, such as renewable energy and eco-
friendly construction.
Corporate Social Responsibility (CSR): Strengthen CSR activities to enhance the brand’s
reputation and community involvement.
Environmental Compliance: Ensure all sectors comply with international and local
environmental regulations to maintain long-term sustainability.
4. Financial Strength
Capital Structure Optimization: Review the company’s capital structure to ensure the right
balance between debt and equity.
Investment in High-Growth Sectors: Allocate resources to sectors with higher growth
potential, such as energy and technology.
Risk Management: Implement strong risk management strategies to safeguard against market
volatility and external threats.
This action plan would provide Navana Group with a roadmap to optimize its operations, expand
its reach, and ensure long-term sustainability.
 10. Develop Discussion Questions:

What potential risks could arise from Navana's diversification into renewable energy and
technology sectors, and how can the company mitigate these risks?How should Navana balance
investment between its core business operations and its diversification strategy to ensure
sustainable growth?What are the potential long-term impacts of shifting into high-growth sectors
like renewable energy on Navana’s brand identity and market position?