TERM PAPER

“Apartment Facility Management: Your Problems Are Our Concerns”

SUBMITTED TO :
Mohammad Saif Noman Khan
Assistant Professor

Course Name: Managerial Communication (C501)

SUBMITTED BY:
NAME ID BATCH
Md. Mehmood Hussain ZR1703007 EMBA-29
Fardan Abdullah ZR1703022 EMBA-29
Mahbub Ul Islam ZR1703023 EMBA-29
Md Tajnim Kabir Sakif ZR1703031 EMBA-29

Date of Submission: 12/02/2017

 EXECUTIVE SUMMARY

Bangladesh has made strong progress over recent years, halving poverty and growing the
economy by about 6 percent each year. The economic growth of the country has led the per
capita income to reach at US$ 3840 (PPP) and US$ 1466 (Nominal) as per IMF. Bangladesh
grew its economy so much that recently been elevated from the low-income country (LIC) to lower
middle-income country. The standard of living of its people has sky-rocketed. In 2000, the wealth
of people in Bangladesh possessed amounted to $78 billion. In 2015, the amount grew to $237
billion. Since 1975, the number of millionaires in Bangladesh has increased 492 times over the
last three and a half decades. Bangladesh had 47 millionaires in 1975, but now Bangladesh has
over 25,000 millionaires. The amount of wealth owned by the richest in Bangladesh is worth over
$20 billion, which accounts for over 6% of Bangladesh people’s overall wealth.

Another aspect of this growing economy is the women empowerment. Social acceptance of
women earnings has increased to lead a prosperous life. Both male and female are getting
engaged in the workplaces to earn their livings of family. Socioeconomic development has
compelled them to consider the aspirational value in every sphere of their lifestyle.

People have become more habituated with a high standard of living which includes facilities like
luxurious apartments with the home maid, clearing services, cook, baby care services, cars with
skilled chauffeurs and many other on-demand services. Female dominance in the job sectors has
increased the need for a baby care center. To facilitate those people we will be there with our
APARTMENT FACILITY MANAGEMENT. Our aim is to provide the quality Apartment Facility
Management with the accumulated service charges of the individual flat owners. Our mission is
to provide quality home care services that are unprecedented by creating a new industry called
Facility Management. We will be providing basic common services like sanitary and cleaning
services security services, Lift and generator services, caretaker Services, Electrical Services,
Plumbing Services, and Mechanical Services. Moreover, our customers will have the privileges
of enjoying housemaid, nursing for aged people, baby care center, cook, chauffeur, pest and
rodent control services. Our target is to provide multifaceted homely services in one place so that
our target customers may lead a blissful, comfortable, peaceful, hassle-free life. With the arrays
of integrated services, customers will have the opportunity to hand over many of their daily service
functions to one outsourcing trusted partner like us.

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TABLE OF CONTENTS
1 OVERVIEW OF BUSINESS MODEL .......................................................................................................... 4
1.1 INTRODUCTION: APARTMENT FACILITY MANAGEMENT .............................................................. 4
1.2 Business Model Canvas ................................................................................................................. 4
1.3 Why Us .......................................................................................................................................... 4
1.4 Our Mission ................................................................................................................................... 5
1.5 Our vision ...................................................................................................................................... 5
2 OUR SERVICES ....................................................................................................................................... 5
3 Industry Lifecycle .................................................................................................................................. 8
3.1 Market Segmentation: Target People ........................................................................................... 9
4 CHALLENGES & RISK ASSESSMENT ..................................................................................................... 10
4.1 Porter’s Five Forces Model Analysis ........................................................................................... 10
4.2 Challenges ................................................................................................................................... 12
5 Operational Plan ................................................................................................................................. 13
5.1 Logistics support ......................................................................................................................... 13
6 SUPPORTING AND DEVELOPING STAFF .............................................................................................. 14
7 Marketing & Sales Strategies .............................................................................................................. 15
8 Financial Analysis ................................................................................................................................ 17
8.1 Forecasted Statement of profit & loss account .......................................................................... 17
8.2 Initial Investment Required ........................................................................................................ 17
8.3 Break Even Analysis..................................................................................................................... 18

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1 OVERVIEW OF BUSINESS MODEL

1.1 INTRODUCTION: APARTMENT FACILITY MANAGEMENT

Apartment Facility Management is a multifaceted discipline to ensure the functionality of the built
environment by integrating people, place, process, and technology. By managing our own staff,
we are to control, govern and manage each and every part of the services carried out, and we
may have to rely on third-party subcontractors to perform at the same high level we do. Such a
partnership will then focus on managing all service deliveries, administration, training, operational
management, integration, innovation and will provide strategic support to our valued clients.

1.2 Business Model Canvas

Figure 1: Business Model Canvas

1.3 Why Us
 We will provide 24x7 support services.
 One stop Solution for everything like- Security Services, Maintenance, Janitorial
Services, Soft Services, Housekeeping, Integrated Facility Management Services,
housemaid, nurse, and Childcare.

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  Strong technical support on a roll which will give a definite technical advantage and a
robust delivery system which is the best in class.
 We follow well-defined Quality and audit program to deliver and monitor customer
satisfaction.
 We follow well-defined system for complaint tracking and resolution with extensive
features on MIS reports.
 Best management practices in line with client demands.
 Partnering with clients for innovative solutions to support their needs.
 Captive manpower, No secondary and tertiary outsourcing which provide better control
and management of people and process and cost advantage to our clients.

1.4 Our Mission

 Is to provide the quality Apartment Facility Management with the accumulated service
charges of the individual flat owners.
 Is to Provide Our Customers a level of Service that is unprecedented by creating a new
industry called Facility Management in mass level
 Is to develop an organization that will encourage all people to prosper and grow to their
full potential
 Is to protect health and safety of all our valued customers

1.5 Our vision

 We strive to become the leading home care service provider in the industry.
 We aim to offer true value for money in all our services offered.

2 OUR SERVICES
In Bangladesh, Facility management service is a new concept. With the service charges of
individual flat owners we will strive to provide quality services mentioned below:

Regular Services: On Demand and Special Services:

 Security Services  House Maid Services

 Electrical Services  Nursing Services for Aged people
 Plumbing Services  Baby Care Services
 Caretaker Services  Cook Services
 Mechanical services  Car Repairing Services

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  Lift and Generator Services  Chauffeurs
 Sanitary and cleaning services  Pest Control services

 Security Management
The security of premises is of utmost importance for us. Align Services ensures that all security
personnel are physically fit and are capable to handle situations. The security personnel are
trained in securing the premises from possible threats by unlawful elements like terrorist,
insurgency, commotion & theft. These threats are minimized by securing the premises by:
 Securing aggress points
 Scanning items entering the premises
 Recording Monitoring individual movements
 Recording Vehicle and their movement
 Monitoring Surveillance Cameras
 Keeping an eagle eye of suspicious items & people
 Controlling movement & scanning of other facility employees
 Keeping Records of items entering premises

 Janitorial and Cleaning Services

 Daily sweeping and moping of all floor area on a continuous basis with quality cleaning
materials manufactured by the reputed companies.
 Cleaning of Dust, Cobwebs as and when requires.
 Upkeep of all ceramic fittings and providing disinfectant materials.
 Cleaning of all bathrooms, toilet blocks, wash basins, windows etc.
 Cleaning of window panels, glasses, partitions etc.
 Cleaning and moping of all rooms at regular intervals with quality materials.
 Cleaning furniture with dry clothes, Dusting, and Cleaning of glass doors, windows, light
fittings, signboards, telephones etc.
 Collection and disposal of garbage at regular intervals.

 CATERING & PANTRY SERVICES

Our well-trained pantry boys are courteous and offer effective catering services to clients.
We understand the taste and requirements of clients and provide the workforce according to
their requirement. It generally involves:
 Cleanliness in the Pantry/Dining area

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  Ensuring proper serving to guests & employees
 Ensuring adequate level of hygiene in all areas of operation
 Maintenance & cleanliness of Tea/ Coffee vending machines
 Maintain proper records of Tea/Coffee consumption & Crockery/Cutlery
 Wash Crockery dry & store them for use etc

We can utilize client’s facilities to prepare the wide range of meals demanded by discerning
members. Alternatively, we can prepare the food off-site and deliver to client’s home at client’s
convenience. Whether you are familiar with any catering facilities or not, you can now benefit from
quality food, delivered to client’s home or party by our people.

 Electrical and Mechanical Maintenance

 Clean water tanks, flues, and connecting pipes, using power and hand tools.
 Cleaning and restoring building interiors damaged by fire, smoke, or water on demand
basis.
 Quarterly Monitoring building security and safety by performing such tasks as locking
doors after operating hours and checking electrical appliance use to ensure that hazards
are not created.
 Lift maintenance
 Car repairing services
 Plumbing
 A/C repairing and maintenance
Our professional, uniformed team will respond same-day for an emergency and arrive on time for
an appointment.

 MANPOWER SERVICES
We are providing all type of manpower to our client which suits their requirement like-
 Childcare Staff
 Nursing Staff
 Cook
 Driver
 Emergency Ambulance Services

 Reception and help desk:

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We will also assist the building management in handling the front desk. Capable, well-groomed
personnel will be appointed to handle queries, complaints and assist visitors.

 Pest Control services

Approved pest management plans will be developed and will include quarterly pest
management measures. Pest will be managed to:
 Reduce any potential human health hazard or to protect against a significant threat to
public safety.
 Prevent loss of or damage to structures or property.
 Prevent pests from spreading into the community, or to plant and animal populations
beyond the site.
 Enhance the quality of life for occupants, staff, visitors and others.

3 INDUSTRY LIFECYCLE
With the globally increasing demands for Facility Management, we are convinced that Bangladesh
has the ability to deliver all or most of the service offerings (mentioned above) by securing both
the quality and efficiency. Bangladesh has been renowned for a place of cheap skilled labor.
Facility Management industry in Bangladesh will unveil a new door of opportunities for this pool
of cheap skilled labors. This industry has already provided the services to the business
organizations of Bangladesh. But our goal is to spread this facility management services in mass
level to build a scalable business.

Facility Management Service

Industry

INTRODUCTION GROWTH MATURITY DECLINE

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3.1 Market Segmentation: Target People
Initially, we will target the people who have sufficient extravagancy in their lifestyle. The people
whose standard of living is very high, who always want to lead a cozy, comfortable, hassle-free
peaceful life. However, Dhaka Is a city of We have segmented the area with the size of the
apartments of Dhaka City.

Service Area Population No. of Families No. of Flats No. of Building

BARIDHARA 105,444 21,089 4,218 105

GULSHAN 112,669 22,534 4,507 113

BANANI 140,669 28,134 5,627 141

DOHS 117,464 23,493 4,699 117

Total 476,245 95,249 19,050 476

Number of Families SERVICE AREA WISE

POPULATION
120 BARIDHARA GULSHAN BANANI DOHS
110
100
90 25% 22%

24%
29%

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4 CHALLENGES & RISK ASSESSMENT
4.1 Porter’s Five Forces Model Analysis

1. Bargaining Power of Suppliers (Partner Service Providers)

Supplier bargaining power for ‘Apartment Facility Management’ is likely to be high when:
 There are no substitutes for the particular input
 The switching costs from one supplier to another are high
 The buying industry has low barriers to entry.
In such situations, the buying industry often faces a high pressure on margins from their
suppliers. The relationship to powerful suppliers can potentially reduce strategic options for the
organization.
In ‘Apartment Facility Management’ supplier bargaining power is low. Because:

Figure 2: Porter's Five Forces

 There are enough substitutes for the particular input

 The switching costs from one supplier to another are low
2. Bargaining Power of Customers
Customers bargaining power is likely to be high when
 The supplying industry operates with high fixed costs
 The product is undifferentiated and can be replaces by substitutes

 Switching to an alternative product is relatively simple and is not related to high costs,

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  Customers have low margins and are price-sensitive
In ‘Apartment Facility Management’ supplier bargaining power is low. Because:
 Our business operates with low fixed costs
 Our service is differentiated and cannot be replaced by substitutes
 Switching to an alternative service is relatively related to high costs
 We are targeting families with high income category. So, Customers are not price-
sensitive.
3. Threat of New Entrants
The competition in an industry will be the higher, the easier it is for other companies to enter this
industry. The threat of new entries will depend on the extent to which there are barriers to entry.
These are typically:

 Economies of scale (minimum size requirements for profitable operations)

 High initial investments and fixed costs
 Scarcity of important resources, e.g. qualified expert staff
 Existing players have close customer relations, e.g. from long-term service contracts

In ‘Apartment Facility Management’ the Threat of New Entrants is High. Because:

 Minimum size requirements for profitable operations is low
 Low initial investments and fixed costs
 Availability of resources, e.g. qualified expert staff
4. Threat of Substitutes
The threat of substitutes is determined by factors like
 Brand loyalty of customers
 Close customer relationships
 Switching costs for customers
In ‘Apartment Facility Management’ the Threat of Substitutes is Low. Because:
 Brand loyalty of customers is high
 Switching costs for customers is high
5. Competitive Rivalry between Existing Players
Competition between existing players is likely to be high when
 There are many players of about the same size
 Players have similar strategies

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In ‘Apartment Facility Management’ the Competitive Rivalry between Existing Players is Low.
Because:
 This is a new business.

From the above analysis, we can come to the conclusion that ‘Apartment Facility Management’
is a good business to start at this moment.

4.2 Challenges
The biggest challenge of our will be the security issue and besides that, there may be some
other problems like-

 Security Issues of the customer: Inside the house if any mischief happens or if
anything gets lost than surely the customers may suspect the maid or cleaner or nurse,
etc.
 Losing Business through Contractual Staffs: Services that can’t be frequently sold
don’t need to have permanent staffs because the more we will have permanent staffs
the more our fixed cost will be. On the other hand, contractual staffs may divert the
customers by making their own, like if a plumber gives his number and offers a less price
if the customer contacts him directly.
 Quality of Service: If the customers don’t feel happy with the services that will be
provided by our staffs.
 Insufficiency of staffs: If we don’t find staffs as permanent as well as a contractual
basis. The availability of contractual staffs is an important issue as some of the staffs will
be contractual we have to make contract with the staffs and select them by their places
of work. Suppose for the need of a nurse we can contact the nurses of United Hospital
because it will be convenient for her to move from her hospital to any of the four
locations.
 Recruitment of staff: At the time of recruitment we should check the previous records
of the staffs. It will be better to take “Character Certificate” of the staffs issued by their
local authority.
 Training: If the people are not properly trained we will provide them training to provide
better services.

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  Accommodation of the staffs: At the time of starting we have to take our office and 3-4
apartments for the accommodation of the permanent staffs as rent. So we have to find
out the available options that go with our budget.
 Maintaining Time Schedule: It is our common tendency of getting more and more
services from the employees but that should be restricted as there have to be a system
of “Extra Charge” for every extra hour of service.
 Pricing: The pricing of our services have to be unique like if people get a maid in BDT.
8,000/- per month we will not be able to sell the services in more than BDT. 12,000. So,
there have to be good financials at the time of pricing.

5 OPERATIONAL PLAN
Our Facility Management Services is focused on client’s property with two primary mission
objectives:

1. To provide the support required beyond meeting the immediate life-cycle needs of
client’s home with preventive maintenance to ensure that potential maintenance
problems are identified and counter-measured before they can occur.
2. To provide you with an end-to-end single source solution that supports client’s home and
saves you time and money by assuming responsibility for supporting client’s entire
property infrastructure from the tiniest details to the largest functions.

Our goal is to provide our clients with disciplined management, more efficient services, lower
costs and to instill confidence and trust based on the quality of our service.

5.1 Logistics support

Our Office Staff will answer client’s phone calls 24/7. Our Scheduler and Planner will make sure
client’s needs are met within a very short time frame. At first we would like to focus on area of
the business. At the time of selecting the area from where will start and where will operate we
have taken some aspects as principal. The aspects are:
1. The location of the target group of customers
2. The location of the home office
3. The availability of contractual staffs
4. The availability of resources to operate the business
At the time of selecting the area from where we will start we had two things in our mind, firstly
we have to be available in the highest income group areas and secondly the area located side

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by side geographically. So, we will target Baridhara R/A, Baridhara DOHS, Gulshan, Banani
These areas are just adjacent by location. We preferred the location of the home office for
operation in either Baridhara DOHS or in Gulshan because the DOHS or the Gulshan will in the
middle of the operational zone. If we consider the time for movement of the staffs from our office
midpoint will be the best solution.

6 SUPPORTING AND DEVELOPING STAFF

All learning and development will be evaluated through discussion, learning and development
plans will be developed and organized by the management team. We will use the annual staff
survey to develop an understanding of the deployment and effectiveness of our people
development approaches.

Management and team meetings will be held monthly (in most operational areas), focusing
mainly on better customer service and communication. Monthly rotational training programs will
be held and staff support mechanisms will be deployed, including back-to-work interviews
following periods of staff absence. Health and workplace safety training and risk assessments
will be regularly conducted.

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 Facilities Director

Help Desk

Facilities Property Building Services Technical

Management Management Services

Marketing
Aspects Technical
support Team
Legal Aspects

Admin &
Building & Ground
Finance
Supervisors
Operational
Team

Supply Chain Maintenance Custodians/

Team Workers Caretakers

Diagram of Facility Management

7 MARKETING & SALES STRATEGIES

There are many different marketing techniques both online and offline. Major Offline examples
include trade shows, networking, and in-person speaking engagements. Key online techniques
include a firm’s website, ongoing search engine optimization efforts, and industry webinars.
Taken together, online and offline marketing techniques allow us to reach clients wherever they
may be. Traditional, offline networking has been an important part of the professional services
industry for some time, but these days crucial relationships are forged more and more often
through social media like Facebook, LinkedIn, etc.
Marketing Objectives
1. Maintain positive, steady growth each month.

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 2. Experience an increase in new customers who are turned into long-term customers.
3. Generate brand equity at the Market.

Online marketing techniques:

1. A full functional and user-friendly Website- A website is cost effective and reaches a
wide number of customers. It helps to get the name out and can help to take marketing
to the next level without a huge investment.
2. Search Engine Optimization, Google Ad Words, search engine marketing
(SEM), Yahoo, Bing and other portals.
3. Giving advertisement through Facebook, LinkedIn and other Social Media.
4. Emailing
5. Blogs and articles
6. Online (YouTube) video that includes business overviews, services and customer
testimonials
Offline marketing techniques:
1. Referral service marketing - One of the best ways to market an intangible is through
word of mouth. A happy customer will often want to share her experience and tell people
why she likes the service. We will offer clients a cash bonus for each referral they send
to us, offer them a free service for each lead or offer their friends a reduced rate on
service if they mention the customer.
2. Advertising - Business cards, brochures, Posters and flyers are relatively
inexpensive and when done well can be effective. They can be general posters about
the services or specific posters about an upcoming event. They are very effective in
target areas.
3. Demonstrations - Customers might be gun shy about trying a service if they aren’t sure
what they are getting. Offering free demonstrations helps ease their concerns and can
result in immediate sales.
4. Sales Promotion – through press releases to local radio stations, newspapers and
writing a feature story about our business.
5. Personal sales
6. Collaboration and participation in trade shows and other events.
7. Brand or Logo
8. Customer Testimonials
9. Through SMS

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 8 FINANCIAL ANALYSIS
8.1 Forecasted Statement of profit & loss account
For Six month From February to June 2018

February March April May June

July

Revenue 18,900,000 20,790,000 22,869,000 25,155,900 27,671,490 30,438,639

Cost of Sales (17,010,000) (17,860,500) (18,753,525) (19,691,201) (20,675,761) (21,709,549)

Gross profit 1,890,000 2,929,500 4,115,475 5,464,699 6,995,729 8,729,090

Marketing Expense (4,542,970) (5,451,564) (5,451,564) (5,462,467) (5,462,467.13) (5,462,467.13)

Administrative expenses (1,123,082) (1,235,390) (1,358,929) (1,494,822) (1,644,304) (1,808,735)

(Loss)/Profit before
1,457,888
income tax (3,776,052) (3,757,454) (2,695,018) (1,492,591) (111,043)

Forecasted Financial highlights

February March April May June July

Gross Margin 10.00% 14.09% 18.00% 21.72% 25.28% 28.68%

Marketing Expense to
Revenue 24.04% 26.22% 23.84% 21.71% 19.74% 17.95%

Administrative Expense
to Revenue 5.94% 5.94% 5.94% 5.94% 5.94% 5.94%

Number of Flat Services 476 524 576 634 697 767

Service Charges
(Minimum)/Per Flat 10000 10000 10000 10000 10000 10000

8.2 Initial Investment Required

Office Set Up cost 2,000,000

Professional Fees 1,000,000
Working Capital 5,000,000
IT Set up and Web development 1,000,000
Strategic Alliance 1,000,000
Total 10,000,000

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 8.3 Break Even Analysis

Fixed Overhead Cost

Break Even Sales (Taka) =
𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑀𝑎𝑟𝑔𝑖𝑛

February March April May June

Break Even Sales (Taka) 56,660,520 47,458,866 37,836,073 32,031,719 27,333,736

40000000
Break Even Sales (Taka)
60,000,000 30000000

40,000,000 20000000
10000000
20,000,000
0
- February March April May June July
Forecasted Revenue Growth

Revenue Mix: Estimated Service Charges

Common Services
Cleaning Services 1500
Security Services 1500
Electrical Services 1000
Plumbing Services 1000
Caretaker Services 1000
Mechanical Services 1000
Lift and Generator Services 3000
Total 10000
On Demand Services Fees/Person or Service
House Maid Services 5000

Nursing Services for Aged people 5000

Baby Care Services 5000

Cook Services 5000
Car Repairing Services Minimum 3000
Drivers 15000
Pest Control Services 10000

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