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Assignment on Business Strategy Submitted by: Name: ID: Submitted to: Date of submission:

Table of content Content serial Content name Page no. Executive summary 2 Task 1 Content serial Content name Page no. 1.1 Explain the role of strategy, mission, visions, objective, goals and core competencies of Autoglass Review the vital issues involved in Strategic planning in Autoglass Explain minimum three planning technique for Autoglass 4 1.2 1.3 5 8 Task 2 Content serial Content name 2.1 Produce an Organizational Audit for Autoglass 2.2 Carry out an environmental audit for Autoglass using at least two approaches Explain the significance of stakeholders’ analysis in relation to Autoglass 2.3 Page no. 10 11 13 Task 3 Content serial Content name Page no. 3.1 Analyze possible alternatives strategies relating to substantive growth, limited growth and retrenchment Select an appropriate future strategy for Autoglass 14 3.2 17 Task 4 1|Page

Content serial Content name 4.1 Compare the roles and responsibilities for strategy implementation of Autoglass Evaluate resource requirements to implement a new strategy for Autoglass Discuss targets and timescales for achievement for Autoglass to monitor a given strategy 4.2 4.3 Content serial Page no. 18 19 20 Content name Page no. Conclusion Reference 21 22 2|Page

Executive Summary: From the onset of the journey, Autoglass sincerely focuses on the needs and demands of the customers and emphasizes on the mode of providing services in an efficient and effective way. Autoglass is renowned as one of the best in providing service in their field of operation. They are way ahead of other companies in the service industry comparing to the banks and other service providers. In the windshield servicing industry Autoglass has become a brand name not only for satisfying the customers but also for providing the best windshield replacement or repairing service. During a survey it was estimated that nearly 92% of the Autoglass customers were satisfied at their service. Autoglass maintains a harmonious, yet professional relationship between the customers and employees because they believe that if employees are satisfied working with Autoglass then they will serve the customers more efficiently and with more care. Autoglass is currently the market leader in their sphere of the industry and they are growing in a steady pace. They are now operating with almost 500 branches serving in the Europe. Based on the given scenario we can imagine that Autoglass is in a strong position in the windscreen replacement industry and expected to be able to face future challenges in an efficient and effective manner. This will no doubt turn in the revenue. 3|Page

Task 1 1.1 Explain the role of strategy, mission, visions, objective, goals and core competencies of Autoglass Autoglass Company Mission: Missions of an organization are formed based on the present situation and action guidelines. The employees are to perform according these to attain the objectives of the organization (Kotler, P., 2000). Autoglass Company m according inly focuses on the customer’s satisfaction and providing the best windscreen services to the customers (Autoglass Company). By fulfilling the missions, an organization takes shape and the objective becomes clearer. Autoglass Company Vision: Vision of an organization is the future intentions and target that an organizations try to achieve by defining the missions and setting goals and objectives to accomplish (Kotler, P., 2000). It’s like foreseeing the future. The vision of The Autoglass Company is to serve the customers efficiently and provide their customers with the highest level of satisfaction (Autoglass Company). The vision of serving their customers with integrity and loyalty is expected to lead them to grow and set the boundaries higher in the industry. Autoglass Company Core Competency: Core competency defines the core operations of an organization. A core competency is a concept of theory that specifies the factors that a business sees as central to the way the company or its employees work (Grant M. R., 2010). It shapes the business missions and visions of that particular organization (Kotler, P., 2000). In case of Autoglass the core competency is that they can replace or repair any kind of broken or damaged windshield of any model, no matter what (Autoglass Company). Strategic Intent: The concept of strategic intent implies that there is a general view on where the company should be going rather than a definite statement of an expected outcome and this means that there should be plenty of flexibility within the statement to allow for staff initiative, team contribution and adaptation in light of changed circumstances (Ivanauskiene, N, & Auruskeviciene, V., 2009). The strategic intent of Autoglass is to see itself as the market leader always. They are doing all the activities to remain leader. Role of Strategy of Autoglass 4|Page

The primary task in strategic administration is normally the compilation and dissemination of the vision and the operation declaration. This outlines, in essence, the raison d'etre of an organization (Ivanauskiene, N, & Auruskeviciene, V., 2009). Autoglass has compiled their roles in strategy making in a way that the strategies maintain a specific time period in the execution (Autoglass Company). Objective and goals of Autoglass The main objective of Autoglass is to satisfy their customer by repairing or replacing broken windscreen of any vehicle. The goal of Autoglass is to make their business grow and serve the global customer (Autoglass Company). They are expanding their business by winning the hearts of the customers. Strategic Architecture of Autoglass The strategic architecture of any organization is the process of answering the five fundamental questions of making the strategy. The questions are compilation of “What”, “What Else”, “What More”, “What Now”, “How” (Grant M. R., 2010). By answering these questions Autoglass shapes their strategic structures of the company. 1.2 Review the vital issues involved in Strategic planning in Autoglass In order plan strategies and implement operations there are some vital issues that are needed to be considered. Based on the case, Ansoff’s model can be used to analyze the competitive advantages of Autoglass Company (Kotler, P., 2000). Autoglass is putting their focus on the customer’s preference and customer service. They have reached the highest satisfaction level in the service industry just by replacing the windscreen in a cost effective way. Autoglass should be customer oriented and try to increase their service portfolio in order to meet with the competition. Given the situation in the case we can analysis the competitive advantages of Autoglass. Autoglass’s Competitive Benefits: Autoglass offers the premium service of replacing or repairing windscreens. Not only that, they are also providing their customers with several other services regarding wind screens problems. By doing so they are grabbing a fair share of the market (Autoglass Company). As Autoglass is growing day by day, they can use the Ansoff’s model to analyze their competitive advantages over others. The Ansoff’s model is given below: 5|Page

Autoglass is providing services to more than one million customers who are having problems with their windshields every year. Ansoff’s model of Growth suggests four different sets of alternatives (Armstrong, G., &Kotler, P., 2006). Based on the scenario and research, we learned that Autoglass is expanding its market gradually and has the capability to serve more than they are doing now. So based on the present scenario, Autoglass can serve customers with their existing products and can also introduce them with new means of services (Automotive Industry, 2013). These four alternative strategies face different types of risks. The strategies are: Market penetration:A market strategy hereby an organization seeks to gain greater dominance in a market in which it already has an offering (Melody, Y. & Kevin, H., 2000). This strategy often focuses on capturing a larger share of an existing market. In this segment Autoglass can increase its market segments by selling more of their products and attract more customers Product development: By product development we mean either inventing a new product or improving old products with new features. Autoglass can introduce a new product to the market that would complement the existing products. But this strategy has a severe drawback. If the customers failed to interpret the new product features, then it would result in losing revenue. 6|Page

Market development: Market development means to improve and retain market position for the products of a company. Autoglass is the current market leader in this windshield repairing industry. So they can brand Autoglass more extensively and try to grab new customers to increase its market share. Diversification:Autoglass can create a portfolio of products that will divide up the risks and reduce the chance of revenue loss. Autoglass also should emphasize on the geographic location where they should operate and specify the minimum requirements of the suppliers to get the quality products and the quantity required. Autoglass Company is in top of its operating industry. So they have the options to increase the growth rate in a steady manner by satisfying both existing as well as potential customers and increase its market share. Autoglass can set a five years growth strategy plan based on the Ansoff’s Growth Model to achieve their target. Definition of Top-Down and Bottom-Up Informal Planning: Informal planning is the process where the manager or leader of a team develops a plan without any conventional structure and rigid frameworks (Grant M.R. 2010). For certain instant situations managers use this approach where it is not essential to form any formal structure of planning or the timeline for planning is not enough. It is important to ensure short term objectives of the organization. Top Down: A top-down approach is essentially the breaking down of a system to gain insight into its compositional sub-systems (Wheelen& Hunger, T.L. &J.D., 2013). Autoglass is implementing this approach in their product R&D and they are pretty successful. This approach would help them to attain their goals. Bottom-Up: A bottom-up approach is the piecing together of systems to give rise to more complex systems, thus making the original systems sub-systems of the emergent system (Wheelen& Hunger, T.L. & J.D., 2013). Autoglass is using this approach in their service development to satisfy the customers and they have been pretty successful by using this approach. Behavioral Approach for Autoglass: Autoglass should approach in the Top-Down method in order to capitalize their resources and to handle the competition in the future. Autoglass is a growing company in the service industry and the service they are providing will not be sufficient for them to hold on to the position in the market. They need to come up with several developments for their product and market so that they might a diversified market for the customers. 7|Page

1.3 Explain minimum three planning technique for Autoglass The techniques that any organization needs to follow in the competitive industry. There are three basic techniques that an organization can follow. Autoglass should follow one of the strategies to flourish in the market and capture more customers. 1. BCG Growth Share Matrix Autoglass can divide their products in such a manner where they can prioritize their products and manage a synergy in the portfolio (Ivanauskiene, N, & Auruskeviciene, V., 2009). This matrix shows the organization 4 types of consequences that will be faced by an organization (Gudonaviciene, R, &Rutelione, A., 2009). It also helps the organization to know when to invest in the existing product, when to divest all earnings from the market segment and when to focus on a new business venture. Placing goods in the BCG growth share matrix Autoglass will face 4 types of consequences in the market. And they are: i. Stars: High Growth and High Market Share  It requires a great quantity of cash for which managers need to take decisions from which the cash will be generated and used.  If managers can make the business profitable and maintain a steady market share then it will result in the cash cow and the Company can harvest cash from the business. ii. Cash Cows: Low Growth but High Market Share  The product will attain low growth in the market but it will have the highest market share from which the organization will turn in revenues and maintain income. iii. Dogs: Low Growth and Low Market Share  The time when the product gradually stops to generate any kind of revenue, the organization should gradually divest from the project to start another.  The organization should also be careful of incurring any unnecessary costs. 8|Page

iv. Question Marks: High Growth but Low Market Share  It indicates to the products that are newly introduced in the market and will gradually earn mass acceptance.  It also has the risk of making a Dog product. If the market share is not increased gradually then it would incur loss for the organization. 2. Strategic Position & Action Evaluation Matrix (SPACE) Autoglass can also use the SPACE planning technique to understand the market requirements and operate in order to expand the operation. This matrix has four quadrants indicating the positions of the business organization and how to react accordingly (Ivanauskiene, N, & Auruskeviciene, V., 2009). In consideration to Autoglass’s position in the market they can use aggressive strategy. It can also be used as the base for SWOT analysis. 3. Profit Impact of Market Strategy (PIMS) It is a type of database which provides concrete evidence to support policies and principles for gaining and sustaining competitive advantage (Melody, Y. & Kevin, H., 2000). Autoglass might maintain a customer service database in order to analyze their principles and planning process so they can keep track of their success and implementation of the strategies. 9|Page

Task 2 2.1 Produce an Organizational Audit for Autoglass SWOT Analysis Strengths Unlike others, Autoglass provides high quality products at low cost. The safety features in the product are high. They produce windshields with highest possible visual clarity. Weaknesses Autoglasshas very poor promotion system. They hardly advertise their product. Opportunities Windshield replacing or repairing is present in emerging economy. Development of new products creates new opportunities. 10 | P a g e

Threats Operation in unnecessary locations is loss of capital. Government policies shape the business environment. 2.2 Carry out an environmental audit for Autoglass using at least two approaches PESTLE analysis is conducted to determine the operational strategy of an organization. It also helps to learn the attractiveness of operation of that company (Armstrong, G., &Kotler, P., 2006). In order to operate in an industry, an organization needs to be accounted for a several factors (Automotive Industry, 2013). Organizations can maximize opportunities and minimize threats by conducting PESTLE analysis. What is PESTLE analysis? Political Econo mical Political climate in any country determines the attractiveness of the business. Purchasing capacity of the people determines cost and level of service in the industry. Socio- Technol cultural ogical Lifestyle and preferences shapes an industry. Technology relating the designs. Legal mental Law regarding safety measures is important. Some things are beyond control of the organizations such as weather, climate and climate change. Government stability is important because it may affect the future decisions. Organizations need to pay taxes and taxation policies affect the industry. Environ The need for replacing windshield is represented by the level of economical activity The decision to own an automobile and need to replace windshield depends on the social norm. Technology of windshield manufacture. Employment and consumer law is highly emphasized. 11 | P a g e

Porter’s five forces Porter’s five forces analysis helps the management to determine and understand the overall context of the industry (Kotler, P., 2000). Porter’s five forces are: 1. The threat of new entrants Economies of Scale: This is generally a low threat and it measures the scale of economy in the production. Government Policy: Government policy can limit the entry and exit barrier in an industry. 2. The bargaining power of customers Threat of Backward Integration: Organizations face the risk of backward integration with the suppliers. 3. The threat of substitute products Prices: Prices play an important role in any industry. Buyers may shift from one product to another just because of price sensitivity. Access: Buyers access in the industry is now a day’s much easier than before. 4. The amount of bargaining power suppliers have Threat of forward Integration: Organizations face the risk of forward integration with the suppliers. With the help suppliers, buyers can make the same products that are offered by another company. 5. The intensity of the competitive rivalry Number of Competitors: Competitor’s number plays an important role in pricing strategy. Diversity of Rivals: The rivals challenge and cross each other’s path in making and implementing strategies. 12 | P a g e

2.3 Explain the significance of stakeholders’ analysis in relation to Autoglass The stakeholders’ grid: 1. Promoters: It refers to the stakeholders who influence the strategies and also has high interest. 2. Latent’s: It refers to the stakeholders who influence strategies but has low interest. 3. Apathetic: It refers to the Stakeholders who has low interest and seldom influences the strategies. 4. Defenders: It refers to the stakeholders who have low influence in the strategy making but high interest. The stakeholders are kept in four classifications so that each stakeholder has their specific rights and duties in regard of the making the strategies for the organization which will be implemented for the betterment of the organization. Autoglass has mapped the stakeholders in the organization so that the stakeholders can perform their duty in regard of the organization’s benefit. 13 | P a g e

Task 3 3.1 Analyze possible alternatives strategies relating to substantive growth, limited growth and retrenchment Market Entry Strategy Organic Growth: When a business organization achieves growth over its own business which is as same as the beginning of the organization, it is called organic growth. It excludes any growth that is gained by getting into any other business or merger or acquisition. Merger: Merger is the process by which two companies gets united and turns into one entity through legal consolidation. The beginning of Autoglass was through such merger. Acquisition: This is the process where one particular company purchases another entire company and establishes itself as the owner. In this process 100% or near 100% ownership has to be bought. Strategic Alliance: This is the process where two or more companies agree upon a number of common objectives and share each other’s resources to meet those objectives. This approach is actually an idea that stays between the concept of organic growth and merger or acquisition. Licensing: It is the process through which a mother company (licensor) allows another company (licensee) to use its trademark and sell the products or services on the basis of agreements on several terms. The terms include the licensing fee that has to be paid to the licensor. Franchising: It is the process, through which a company earns the right to use another company’s trademark, business model, operations where the franchisor gives the right to the franchisee. For acquiring market share abroad, Autoglass might use this approach by assigning franchises in different locations. 14 | P a g e

Substantive Growth Horizontal Integration: In horizontal integration a company forms or acquires production facility of related or complementary products (Melody, Y. & Kevin, H., 2000). Sometimes it may also happen that a company purchases one of its competitors and form integration. Autoglass might form such integration by linking with other production that are related to its existing products. Vertical Integration: In vertical integration a company links with the companies or partners of the supply chain and in many cases all the partners of the chain stay under a single owner (Melody, Y. & Kevin, H., 2000). Autoglass might engage into vertical integration by linking with the suppliers and distributors. Related Diversification: When a company expands its business with some diversification in the existing product line (Arazy, O, &Gellatly, I., 2012). The new productions are similar to the existing products. Unrelated Diversification: It is the process when a company engages into diversification by introducing new products and services that doesn’t match with the existing product line (Arazy, O, &Gellatly, I., 2012). It can be unrelated diversification if Autoglass starts selling home window glasses or beauty mirrors Limited Growth Market Penetration: It means penetrating the competitive market by offering competitive price against the price of the competitors. This approach is used to instantly attack the competitors by gaining their customers. It is often used to gain sales growth. Market Development: It means targeting new customer segments and attracting the nonbuying customers of that segment. It helps to increase the market share by adding new portion of customers. It is possible for Autoglass to develop the market by geographically expanding the business and reaching the customers. Product Development: It means developing new products that do not exist currently and thus attracting customers to buy more varieties of products or services. 15 | P a g e

Innovation: It means searching out an entirely new need of the customers in the market and innovating a new product or service to meet that need. Autoglass might try to sort out such need in the market and introduce an innovated product or service. Disinvestment: Retrenchment: A strategy used by corporations to reduce the diversity or the overall size of the operations of the company. This strategy is often used in order to cut expenses with the goal of becoming a more financial stable business. Turn around: Turnaround management is a process dedicated to corporate renewal. It uses analysis and planning to save troubled companies and returns them to solvency. Turnaround management involves management review, activity based costing, root failure causes analysis, and SWOT analysis to determine why the company is failing. In order to make a comeback in the industry organizations need to find out the root of the problems and based on those problems they need to make up new strategies and policies to overcome those problems. Liquidation: When a business or firm is terminated or bankrupt, its assets are sold and the proceeds pay creditors. Any leftovers are distributed to shareholders. Liquidating a firm is the last stage of the firm’s survival. If no alternative strategies comply with the organizations then it needs to sell its assets and then pay up the shareholders and stakeholders. Divestment: The process of selling an asset. Also known as divestiture, it is made for either financial or social goals. Divestment is the opposite of investment. It is the process of pulling out the assets in operation and sells those to meet the gap in the financial problems and in order to liquidate the organization divestment is necessary for any organization. 16 | P a g e

Porter’s Generic Strategy Overall Cost Leadership Differentiation Focal Point Overall Cost Leadership • Based on the case it can be inferred that Autoglass is following the cost leadership in the industry and they are offering their services in the lowest cost possible (Armstrong, G., &Kotle r, P. 2006). It is helpful to attract more customers and enter in the new market. Differentiation •Cost leadership alone cannot help an organization to enjoy profit from the market. Differentiation is necessary to bring in more profits and grabbing more customers (Armstrong, G., &Kotler, P. 2006). The Autoglass is offering 24/7 customer services to differentiate them from the others. Focal Point •To improve business in the industry organizations needs to focus on a specific objective (Armstrong, G., &Kotler, P., 2006). Autoglass is focusing on serving the customers and satisfy them for their money worth. Autoglass has become the best windshield repairing or replacing service providers. 3.2 Select an appropriate future strategy for Autoglass Autoglass can go with alliance with automakers to capture the new market segment. They should be following the vertical growth strategy to grow their business. Autoglass is in a strong position and they might be able to go with the alliance with new organizations. Because this strategy is appropriate for the organizations growth and their core capabilities match with the strategy. Alliance with related organizations will enable Autoglass to put more focus on the customer’s preference and can develop new product category to fulfill the needs of the customers. In order to expand the market segment Autoglass Company needs new strategies and new products which can be helpful for them to thrive the market. So considering future strategy they can analyze their market need and come up with some development of the new product to diversify their services and capture a new market segment. 17 | P a g e

Only starting new product line and expanding the market will not alone help the Autoglass Company to expand in the market. Autoglass should constantly review the feedback of the customers so that they might know what the customers are looking for and to what level of satisfaction customers want. Autoglass management needs to define the roles and responsibilities to the employees so that they can provide the highest level of satisfaction to the customers. But with expansion of the business the satisfaction rate might fluctuate and Autoglass need to build a timescale for the new goals and extension of the new services. Considering the position in the industry, Autoglass can provide a 5 quarters plan that will be sufficient for Autoglass to cope up with the competition and maintain alliance with the automakers to expand the business. Autoglass can benchmark next 5 quarters to comply with strategies they have taken and fulfill the commitment to the customers. Task 4 4.1: Compare the roles and responsibilities for strategy implementation of Autoglass Strategy and policy execution is one of the most vital issues related to doing business. The growth and profit of the organization solely lies on how wisely the decisions are being taken and how effectively the taken strategies are being executed. The top-heads of the organization has to be responsible enough to not just consider the work as a job but to look beyond to develop the organization and knock every single possibility to grow further and analyze every single threat to secure the organization. They have to look over a new idea or strategy and check the feasibility of it according to the market situations. For any company like Autoglass, understanding the market as better as possible and evaluating the ongoing and proposed 18 | P a g e

strategies are one huge responsibility of the management where they have to play a real significant role. . The organization figure-head like CEO or President or Managing Director has to play a very much complex yet significant role. He has to be able to analyze situations before he gives green signal to any decision suggested by the board. On the other hand the senior managers have to be willing enough to keep a harmony in the workforce and the output of the employees that is important for ensuring the success of the initiated decisions. Moreover, to design a realistic strategy, the strategy makers have to have access to reliable and updated information and statistics. Because, outdated or fabricated numbers can easily ruin any objective. So, besides working inside the organization, the management has to keep an eye on what’s happening outside and make sure that all the relevant news to their concern gets into their acknowledgement. 4.2 Evaluate resource requirements to implement a new strategy for Autoglass An important key to success in business is to allocate resources that are necessary for production and the supportive activities. A company management has to have the clear idea about the place from where the resources and materials will be allocated, the cost for allocation and the time needed to allocate. Moreover, it has to prioritize the key resource on which the maximum portion of production and service depends. For Autoglass, they have prioritized human resources as the key resource as they are willing to keep their customer service better than any other else. Therefore, they developed 159 customer advisors who would serve the customers anytime they need. The fleet service is another addition to their effort to develop customer satisfaction. In the process, Autoglass is sanctioning considerable amount of budgets to increase their service quality and moreover to train their employees. It has already resulted into 92% customer satisfaction. 19 | P a g e

However, to ensure that the customers get the best product with the highest safety and durability, Autoglass put much concentration in allocating the best quality raw materials for their glasses. As per the given case description, Autoglass has been successful to maintain the quality and efficient allocation of their required materials and services in both production and service. 4.3 Discuss targets and timescales for achievement for Autoglass to monitor a given strategy Evaluation of the benchmark outcomes: Quarter The company has to bring up with new strategies and they also need to find 1 out the feasibility of their selected strategies; whether the selected strategies reflect as expected outcome or not. They can collect their customer’s feedback to find out the information about what else they are still looking for the windscreen repairing and replacing service by the company. Quarter Autoglass should review their customer’s feedback in order to implement the 2 desired planning’s to expand their business in a large market. For this reason the line managers are solely responsible for the collection process of the feedbacks of the customers and acting accordingly. Quarter This is known as the quarter of gathering the information and taking research note 3 on the area of the implemented strategies. Management should find up the lacking between the expected outcomes comparing with the actual outcome. This lacking may occur because of the lacking of the coordination or incompetency of the employees as well as line managers. Quarter Management need to organize new training program in order to fill up the gap. 4 With that the employees would be able to achieve the confidence to attain the organizational goal effectively. Quarter 5 In course of this quarter the organization might achieve the desired results based on the strategy making and the implementation method. If management panel fails to acquire the objectives using the selected strategies, then they could initiate 20 | P a g e

new actions and decisions based on the information determined form training the employees and providing support. Conclusion: Who have got their windshield broken; they can be out of worried because there is a company named Autoglass who are making some high quality glass. For years the company earned a huge trust form their customer by providing quality product. They are providing best glasses with best services. They improved their services as high as it pressed away the other competitors far behind. Autoglass initiated the required and effective strategies to keep ahead in the race. Surely they are going more far ahead in the coming future. 21 | P a g e

Reference Armstrong, G., &Kotler, P., (2006). Marketing:An introduction (8thed.). New York: Prentice Hall. Autoglass Company. [ONLINE] Available at: [Accessed 11 November, 2013]. Automotive Industry: Market Research Reports, Statistics and Analysis. 2013. Automotive Industry: Market Research Reports, Statistics and Analysis. [ONLINE] Available at: [Accessed 19 November, 2013]. Kotler, P., 2000. Marketing Management. 5th ed. New Delhi: Prentice hall of India. Wheelen& Hunger, T.L. &J.D., 2013.Strategic Management and Business Policy. 5 thed. Delhi: Pearson. 22 | P a g e

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