Name: Sunnyat Ali ID: 15-98424-1

Company: Pran RFL

Direction: (Read it carefully)

This is an individual assignment
Choose two components for EACH of the PEST factor that you think is the most
important elements for your industry.
o Answer the three parts (a,b,c) for each of the elements for ALL the PEST
factors.
You are allowed use online research, BUT use proper citation. Share your links
for all the information you found.
Just using online information will not be enough. Explain why you chose a
specific set of information. Why do you think it matters from your industry and
company? Be as detailed as possible.
Email me the soft copy of the assignment to class G-mail account before
12:00 pm Saturday, Feb 11th.
Bring two hard copies of your answer to class on Monday, Feb 13 th.

Political Factor:
1. P1: Cross Border Trade

Negative political environment hampers day to day business operations at almost every
aspect. The political and legal environment can affect the whole economy. If we look into the
recent economic reviews, its clear that Bangladesh can hardly export any commodities
because of the recent political unrest (1).

a. Industry Impact: We can easily imagine how strikes hamper cross border trade
between Bangladesh and India. Such circumstances not only temporarily paralyze
business operations, but hurt a company's international image in the long run.
b. Company Impact: PRAN consumer goods has started conducting its international
trade to UAE as well a stable and health political environment will unleash
broader scopes.
c. Future Trend: PRAN has been able to establish a very good trade with India.
Political unrest can hinder companies who operate across the globe cannot then
supply promised products and end up losing customers abroad.(2) So a strong and
health political environment make international bonds more stronger which will
help to move on to other international borders.

2. P2: Laws or Rules & Regulations

In the past there werent many laws concerning the consumer goods but lately every business
organization are bound to follow some laws. PRAN Foods exports goods to numerous countries
spread over Asia, Africa and North America and as such they need to abide by the respective
laws of the country. Pram has been maintaining its quality from its birth.
However in Bangladesh few laws that PRAN Foods and other similar companies need to keep in
mind are-

THE PURE FOOD ORDINANCE, 1959

This law states that adulteration of food products is an offence and that the offender shall be face
minor penalties for it. This law clearly stipulates the protection to the consumers and forces
producers to produce edible goods under proper supervision. Under this there are many
conditions to qualify the particular food product as adulterated which has been further divided
into categories. If the food product corresponds with the requirements then it can be termed as
adulterated.

Other laws for the Food safety include:

Pure Food Act, 1966 (CPFA 1966)

Penal Code, 1860 (PC 1860),

Pesticide Ordinance, 1971 (PO 1971)

Food (Special Courts) Act, 1956 (FA 1956) (3)

a. Industry Impact: PRAN has a very strong brand image which has to be
maintained and PRAN has been able to do that successfully.
b. Company Impact: PRAN consumer products has been free from any kind of
adulteration as per PRAN claims moreover PRAN announces a Tk 10 lakh reward
if proven fruit drinks contain no pulp (4)
c. Future Trend: PRAN can easily be the no.1 in consumer products if they can keep
their promises in providing the best products.

Economic Factor:
1. E1: Contribution to Agriculture
As Bangladesh is an agricultural country a large part of the citizens are involved in
agriculture. But, it takes lot more effort when agriculture products are processed and
delivered. Very few of the companies realized the situation that larger corporate
investment in agriculture and technology will make every party better off.
However, on the other hand, PRAN Foods had understood the power of agriculture in
national economy, local expertise, low labor cost, increasing GDP and other various
economic factors such as exporting opportunities and growing potential of the market
 itself.

a. Industry Impact: Currently PRAN Foods declares more than 30 thousand farmers
working in dairy (5) with them which make a huge contribution to the agricultural
economics in Bangladesh.
b. Company Impact: Contributing on the Agriculture will not only be fruitful to the
economy but will also be increasing the SBU of PRAN delivering new and easy
products to the customers.
c. Future Trend: Seeing the movement of PRAN towards agricultural products other
Consumer industries will step forward creating more job scopes of the Farmers.

Social Factors
1. S1: Investment In Argo Processing

PRAN Foods signifies investment in agro processing. Creating demands for farm produce
which create jobs in rural areas also preventing urban migration. PRANs aim is to add value
to agricultural harvest. The Groups major achievement has been trying to consolidate
fragmented land holdings and organizing farmers into contract growers of specific crops for
consumption in PRANs major processed products. (6)

a. Industry Impact: With the elimination of the middlemen, farmers receive fair
prices for their products and due to technical assistance from the agro-processing
industry; yields, quality and income have risen considerably. Poverty alleviation
through profitable enterprises is now a reachable goal for many farmers (7).
b. Company Impact: The Company also needs to conduct CSR activities. Which can
be done with investing in Argo.
c. Future Trend: PRAN has been doing lots of CSR activities for the welfare of the
people of Bangladesh. Moreover PRAN has a huge plan of investing more in the
dairy sector in future

2. S2: Promises to the Consumer

For their consumer they have different promises, Such as: They care for their consumers need
and satisfaction. Through their statement and messages, they let the consumer known about the
benefits of their products and innovations. Their approach is to do responsible marketing and
have four clearly defined principles that guide their communications:

They aim at building trust through clear communication.

They fully support consumers right to know what is in their products and they are
transparent in terms of ingredients. They provide clear communication about our product
ingredients, date of expire, nutrition values, etc.
 They support their consumers by listening their suggestion, claims or feedback through
use of a combination of channels which include websites and care line phone numbers,
etc. to reduce any kind of misconception.

They provide clear price communication.

a. Industry Impact: PRAN has been bringing new and new range of products for the
consumers. Moreover PRAN set to venture into bicycle manufacturing (8)
b. Company Impact: PRAN has been able to sustain their trust toward their
customers through effective communication.
c. Future Trend: PRAN has been stepping forward towards new & new possibilities.

Technological Factor:
1. T1: Use of Social Networks for advertisement

Consumers, especially younger individuals, use retailing websites, social media and mobile
forms of communication to connect with sellers. Companies like PRAN Foods need to harness
the Internet and mobile technologies to accessing these customers. For Example a lot of
companies now use social networking sites such as Twitter and Facebook in their promotion mix
to engage their current consumer base and recruit new ones.
a. Industry Impact: Through this PRAN will be recognized worldwide.
b. Company Impact: Promotion of Agro & Consumer based goods can be done in
order to extend boundaries
c. Future Trend: Will open new scopes as well as new markets will emerge which
will lead to producing new improved goods

2. T2: New Product Lines through R&D

Domestic producers hold strong positions in nearly all consumer goods categories due to lower prices,
making it difficult for multinational companies to compete. As a result foreign companies in Bangladesh
are mainly targeting the growing urban middle class population. Additionally, multinationals are
capitalizing on Bangladeshi consumers perception that foreign brands provide better quality. (9)

The consistency and continuous innovations of the R&D department of PRAN Food Ltd. has enabled it to
expand its product portfolio. Starting from the famous mango drinks now they even produce variety of
edible goods like. JhalMuri, clairs, Fit Crackers etc. Besides that in order to capture the market of
the multinational companies they have also introduced frozen food in the name of JHATPOT.
 a. Industry Impact: Has created a huge market for Frozen Foods
b. Company Impact: Many companies are stepping forward to the frozen food
business.
c. Future Trend: Through quality products it might ultimately remove other
multinational companys products from the market.

Summarization

PRAN has won the hearts of millions through their wide range of products and above all giving
what consumers want. PRAN has been doing effective communication with its consumers but
above all what they also need to do is response on customer feedback both local and
international.

Bangladesh is listed as an underdeveloped country, it is now ranked as one of the fastest growing
economy around the world. Real GDP growth in Bangladesh was at 6.0% in 2014 making it the
4th fastest-growing economy in our ranking. The economy has benefitted from inflows of
remittances, a strong performance in textile exports and government structural reforms. These
reforms are having positive flow-on effects on investment and consumption. Consumer
expenditure is increased by 7.2% in 2016 (10) from previous year PRAN-RFL Group is one of
the leading export industry in Bangladesh, its revenues stood at US$ 450 million (11). The
largest fruit and vegetable processing industry in Bangladesh with countrywide distribution
network AMCLs PRAN is an established brand of Bangladesh with an extensive sales force all
over the country. PRAN have a well-developed infrastructure for production, sales and
distribution. PRAN has proven itself as a local product but of international standard.

But still it has a long way to go, PRAN has to take special measures in eliminating the
middleman so that the farmers get the right price. Although PRAM has been able to do in to
some extent but it still has a long way to go.
References
1. http://www.benarnews.org/english/news/bengali/bangladesh-worldbank-

04162015174553.html
2. http://www.gulf-times.com/story/354390/Opposition-strike-hits-life-in-

Bangladesh
3. http://bdlaws.minlaw.gov.bd/print_sections_all.php?id=297
4. http://www.thedailystar.net/news-detail-256515
5. http://www.thedailystar.net/news-detail-214548

6. http://www.thedailystar.net/supplements/24th-anniversary-the-daily-star-part-

1/agro-based-industires-regulatory-hindrances-and

7. http://www.pranfoods.net/csr.php

8. http://www.thedailystar.net/pran-set-to-venture-into-bicycle-manufacturing-

6745

9. http://www.euromonitor.com/markets-of-the-future-in-bangladesh/report

10.http://www.tradingeconomics.com/bangladesh/consumer-spending

11.http://www.thedailystar.net/business/pran-triples-export-earnings-4-years-

124933