Strategic management practices in ready-made garments industry in Bangladesh

Abstract

The ready-made garments (RMG) industry has the utmost economic importance for Bangladesh with a 13% contribution to GDP and 84.21% contribution to export income (Export Promotion Bureau, Bangladesh; Bangladesh Garments Manufacturer and Exporters Association [BGMEA], n.d.). The industry faces a very challenging competitive environment characterized by huge initial investment, fierce rivalry between companies due to the global scope of competition and the very high level of bargaining power of customers. Hence, it is becoming more and more concerned about overall competitiveness and strategic sustainability where a strategic management approach could contribute significantly. A strategic management approach, as studies have shown, can help to achieve financial sustainability through creating long-term shareholder value as well as successfully reducing associated costs and risks of operation. The author conducted an exploratory investigation in this chapter to identify variations in the aspect of strategic management practices among successful RMG companies in Bangladesh. The investigation was based on in-depth interviews with the top-level management of those companies, which lead to a deep insight of the underlying philosophy and strategic intent they applied in the company management as well as how they integrated corporate social responsibility (CSR) into the strategic actions.