A Study on

Accounting Practices of Abdul Monem Limited Chittagong

(Coca-Cola)
(THIS INTERNSHIP REPORT IS SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION WITH A MAJOR IN ACCOUNTING INFORMATION
SYSTEM)

Supervised By:
Abdullah Mohammad Ahshanul Mamun
Assistant Professor
Department of Business Administration
IIUC, DBA

Prepared By:
Md. Nazmul Hasan
ID No.: B- 121032
Program: BBA
Semester: Autumn 2017
Major In Accounting Information System

Submission Date: 15th July, 2017

Internship Duration: 3 Month

Department of Business Administration

Faculty of Business Studies
International Islamic University Chittagong

1
 A Study on
Accounting Practices of Abdul Monem Limited Chittagong
(Coca-Cola)
(THIS INTERNSHIP REPORT IS SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF BACHELOR OF
BUSINESS ADMINISTRATION WITH A MAJOR IN ACCOUNTING INFORMATION SYSTEM)

Supervised By:
Abdullah Mohammad Ahshanul Mamun
Assistant Professor
Department of Business Administration
IIUC, DBA

Prepared By:
Md. Nazmul Hasan
ID No.: B- 121032
Program: BBA
Semester: Autumn 2017
Major In Accounting Information System

Signature of Advisor

Submission Date: 15th July, 2017

Internship Duration: 3 Month

Department of Business Administration

Faculty of Business Studies
International Islamic University Chittagong

2
 LETTER OF SUBMISSION

Date: 15th July, 2017

The Convener,
BBA Internship Committee,
Department of Business Administration,
International Islamic University Chittagong.
Subject: Submission of Internship Report
Sir,
It is a great pleasure for us to submit the Internship report on Accounting
Practices of Abdul Monem Ltd. Chittagong (Coca-Cola)'. We are submitting this
report as a part of BBA program. We have acquired vast knowledge during
preparation of this internship report. We tried our best to gather relevant
information for preparing a complete report by following internship report
proposal. Without the sincere co-operation and proper guidance of you, it is not
possible for us to prepare the report.
We hope you will assess our report considering the limitations and mistakes of
the study.
Your kind advice will encourage to do further research in future.
Thank you.
Sincerely yours

Md. Nazmul Hasan

ID No.: B-121032
Major In Accounting Information System
International Islamic University Chittagong

3
 ACKNOWLEDGMENT

In performing my internship report, I have to take the help and guideline of some
respective persons to success the report. First of all I am grateful to Allah (SWT)
who gives me sound mind and sound health to accomplish my internship report.
It's a great pleasure for me to work with the report based on a topic Accounting
Practices of Abdul Monem Ltd. Chittagong (Coca-Cola) which is very much
significant for economy. We hope working on this topic will help us to gather
various exposures to practical field. At the very beginning we would like to express
our gratitude to almighty God for whose kindness we are sound mentally and
physically enough to prepare this report.
At first, I would like to thank and convey my gratitude to honorable Supervisor,
Abdullah Mohammad Ahshanul Mamun, Assistant Professor, International
Islamic University Chittagong for guiding me and for giving me the opportunity to
initiate this report. More specifically, I would like to thank him for imparting his
time and wisdom.
I express my profound gratitude to Mr. Mohammed Jabed Sarwar, Assistant
Manager, and Training & Awareness Department at ABL Beverage Ltd.
Lastly I would like to deliver my wholehearted thanks to all the officials officer &
staffs for their cordial co-operation for their cordial cooperation who helped me
a lot in gaining practical knowledge at the cost of their valuable time.
Finally I am indebted to the contribution of all, whose cordial co-operation helped
me directly or indirectly for the completion of this report.

4
 Executive Summary
Weve entered into a new dynamic millennium of 21st century. It is very
fascinating how organizations are implicated to shape them for a new arena.
Especially we know banks are directly in action to upgrade the economic position
of centuries every time. I conducted and experienced the internship from that
approach. Surely the beverage company sector contributes vastly and rapidly to
the development of business as well as the economy. No country is self-sufficient
in this world. Everyone is, more or less, dependent on another, for goods or
services. Evolution of the market in Bangladesh is closely linked with the exchange
rate regime of the country. Being a company, AML expected to compete with in a
dynamic environment comprised by many other companies. Company is a very
important vital for economic development. AML is also contributing to the
advancement of the socioeconomic condition of the country. AML has a strong
position in the competitive market. It is among one of the fastest growing
beverage company. First chapter Introduction part of the report focus on the
background, origin, Objectives, scope, methodology and limitations of the report.
Second chapter mainly focused on the history of Abdul Monem Beverage Ltd.
Chittagong, in 3rd chapter it focused on the procedures, 4th chapter analyzed the
accounting practices of Abdul Monem Beverage ltd. And 5th chapter includes the
findings, recommendations and conclusion.

The purpose of the study was to investigate the feasibility of its products for
liability, what are the contextual factors that affect the customers to deal with the
products and also how they react. All kinds of services provided by a company are
closely related to the customers/clients. Every company should try to satisfy their
customer by providing their various types of service.

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 Table of Contents
Serial No. Particulars Page No.
Chapter 1: Introduction
1.1 Introduction 09
1.2 Origin of the Report 09
1.3 Objectives of the Report 09
1.4 Scope of the study 09
1.5 Methodology of the Study 10
1.6 Limitations of the Study 10

Chapter 2: Overview of Abdul Monem Ltd. Chittagong

2.1 Company Profile 12
2.2 Inception and Expansion 13
2.3 Logistics support for the Beverage Unit 14
2.4 Mission Statement 14
2.5 Vision Statement 15
2.6 Objectives 15
2.7 Values of AML 16
2.8 Strategic Business Unit of AML 17
2.9 Board of directories 18
2.10 Organogram 19
2.11 Product Portfolio 20
2.12 Achievements and Recognition 20
2.13 Major Departments 21
2.14 SWOT Analysis 22

Chapter 3: Abdul Monem Ltd. Chittagong: An Overview of Coca-Cola

3.1 History of Coca-Cola 24
3.2 Coca-Cola in Bangladesh 25
3.3 Product line of AM beverage Unit 25
3.4 Manufacturing Process of Coca-Cola 26
3.5 Target Market Selection 27

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3.6 Price Strategy 29
3.7 Price List 30
3.8 Distribution Channels 30
3.9 SWOT Analysis 32

Chapter 4: Accounting Practices of Abdul Monem Ltd.

Chittagong
4.1 Accounting software used in AML 34
4.2 Accounting Practices of AML 35-39
4.3 Employees Response 40
4.4 Accounting Policies and Procedures 40-42
4.5 Cash Basis and Accrual Basis 42-44
4.6 Bank Reconciliation 44-46

Chapter 5: Findings, Recommendations & Conclusion

5.1 Findings of the Study 46
5.2 Recommendations 47
5.3 Conclusion 48
References 49

7
 Chapter 1
Introduction

8
1.1 Introduction:
After independence the food habit of Bangladeshi people has been changed a lot.
Besides our traditional food consumer of Bangladesh like to take western food also after
1980s. As a result of global marketing this was not too hard for the consumers. Different
foreign food companies were established in Bangladesh. Beverage industry is one of
them. But more interestingly we dont know beverage is also our cultural food because
beverage doesnt mean only carbonated drinks. Yoghurt, soup and lacchi are also
beverage of our own tradition which consumed for the last 100 years in Bangladesh. But
carbonated beverage is new in Bangladesh and my report is on Coca-Cola and its
beverage Bangladesh. Carbonated beverage entered into our market in the later part of
1980. At that time there were only few companies in Bangladesh. But by the change of
time and western culture influences its become very popular in Bangladesh. By year
2000 more than 12 Beverage Company operating business in Bangladesh.

1.2 Origin of the Report:

The main reason of the Internship Program is to let the students have hands-on
experience of the theoretical courses learned. This credit course is essential for all the
students graduating from International Islamic University Chittagong. I have also
organized this report as a partial fulfillment of the degree, Bachelor of Business
Administration (BBA) under the supervision of Associate Professor Mr. Abdullah Al
Mamun. This report is the outcome of the three months long internship program at
Coca-Cola.

1.3 Objectives of the Report:

To have an overview of Abdul Monem ltd. (Coca-Cola).
To know about the history of Coca-Cola company.
To know the accounting practices of Abdul Monem Ltd. Ctg. (Coca-Cola).

1.4 Scope of the study:

This report is based on my practical work experience with Abdul Monem Ltd. Ctg. It will
also help the students to reduce the distinction between realistic and hypothetical
knowledge. This report significantly helped me a lot to understand the atmosphere and
environment of an organization.

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1.5 Methodology of the Study:

The report has been prepared based on secondary data. Methodology of the internship
report is given bellow:
1.5.1 Secondary Data Collection Methods:
Data collection from the companys brochures.
Use the companies web side to makes the report.
Data collection from the companies recruitments and fair reports etc.

1.6 Limitations of the study:

Current study of this report was limited. But as I was an internee, it was a big chance for
me to know the actions and behaviors of beverage company system, especially Abdul
Monem Ltd. Ctg. I had to face some obstacles while doing this report. Some of them are
given below:

Lack of Time: As there was only three months to complete the report, it was
almost impossible to cover the performance of the company fully.
Limited data resources: All types of information were not available for access, so
it was not possible to access and summarize them properly.
Lack of experience: It was my first time, doing a report on a company system in
a practical corporate life. So my limited experience was the main obstacle of this
study.
Privacy of Information: Every establishment has its secrecy that is not shared
with everyone. So this confidentiality of information was also an obstacle faced
in this study.

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 Chapter 2
Overview
of
Abdul Monem Ltd. Chittagong

2.1 Company Profile:

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AM Beverage Limited is the authorized bottler of Coca-Cola, Fanta and Sprite. The
bottling operation started after acquiring the plant of K. Rahman & Company in 1982. In
1987 the company made an aggressive move to expand the market by establishing a new
bottling plant of 450 bottles per minute (BPM) capacity in Comilla. With this move the
company immediately gained the market leadership position from the competitors.
Strategic planning in further capacity building, investment in logistics and support
services as well as aggressive marketing approach rewarded the enterprise with
dividends in better market share and product availability across the territory.
For generations, the simple pleasure of drinking Coca-Cola has been associated with
special times, special places and timeless moments but also with the satisfying
experience of everyday life. That is the magic of Coke.

Coca-Cola, the brandis the heart of our company. It has always been and always will
be. Coca-Cola, Fanta and Sprite create the magic to provide consumers with special
moments. Consumers of all ages want great tasting beverages that also provide nutrients
for healthy growth and to make them feel their best. Coca-Cola compliments and shares
the best moments of all consumers!

In 1990 the company was awarded the Presidents Turtle Award by the President of The
Coca-Cola Company in recognition of its contribution to positioning the brand. This is the
most prestigious reward for bottlers by Coca-Cola.

In 1997 the company established another bottling plant at Chittagong. This state of the
art bottling plant of 650 BPM capacities is the most modern plant in the country,
equipped with straight-line technology from Germany. This plant was established to
expand the market further and to deliver products at every consumers doorstep, even
to the most remote areas of Bangladesh.

Apart from glass bottles (RGB) Coke, Fanta and Sprite is also available in PET and cans
also.

2.2 Inception and Expansion

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AML started its operation back in 1956 as a construction firm and was engaged in major
government construction work. Within a few decades, the organization diversified its
operation in other industries, especially in food and beverage industry. AML started its
Ice Cream Plant in Chittagong in 1964 with a brand name IGLOO followed by the bottling
license and distributorship of Coca Cola in 1982. Today, AML has eight different business
lines running with a yearly turnover of over US$ 85.7 million dollar or BDT 6 billion. The
group of business of AML are consist of:

Construction Contractors for the road & highways, bridges, buildings & flood
embankment
Bottler and Distributor of Coca Cola, Fanta & Sprite
Manufacturer of IGLOO Ice Cream
Abdul Monem Sugar Refinery Ltd.
AM Pharma Ltd.
Manufacturer of Amo Milk Liquid Pasteurized Milk
Manufacture of IGLOO Ghee
Manufacture of IGLOO Sugar
Trading & Distributing product of Danone Brands
AML InfoTech Ltd.

2.3 Logistics support for the Beverage Unit

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The Company has strong logistic fleet and manpower to ensure the distribution of its
beverage product to each corner of the market place. Even the unit has its own Cargo
Vessels to service the Southern part of the country where waterways is holding a major
part of the land. The satellite warehouses established at different logistic locations help
to facilitate keeping the sufficient stocks in the remote areas.
The bottling plants of AML for bottling Coca Cola are located in Dhaka, Comilla and
Chittagong. However, at present, the operation of Dhaka plant is suspended and the
total bottling operation is constricted to the other two plants. The details of the
Chittagong and Comilla plant are given below:
Chittagong Comilla

Site Area 10 Acres 6 Acres

Year of Operation 1997 1987

Line KHS Germany (PLC Controlled- H&K / KHS Germany

Fully Automated)
Capacity 600 BPM 450 BPM
Yearly Production 6.50 Mill. Cases 4.50 Mill. Cases

Packages 250 ml, 1000 ml 175 ml, 250 ml, 1000 ml 175 ml,
250 ml, 1000 ml 250 ml, 1000 ml

2.4 Mission Statement

The mission of Abdul Monem Ltd. Ctg. is to build business ventures committed to
achieving the highest quality product and serve the betterment of society.
While the mission statement of AML is desirable and focused, it lacks clarity, is too
generic and swarming with superlatives like best and highest. The mission statement
lacks motivation and is so broad that it really doesnt rule out any opportunity that the
management may opt to pursue.

2.5 Vision Statement

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Abdul Monem Ltd. Ctg. aims at providing the society with significant assistance in
achieving the maximum potentiality.
The vision statement of AML is focused and obtainable. The vision guides its personnel
to a definite direction and provides an idea about its utilization of its potentials.

2.6 Objectives: The Balanced Scorecard Approach

AML strives to set up well defined and obtainable strategic and financial objectives
while keeping in mind the long range and short range goals. To maintain an
organizational profile that is trustworthy to all its stakeholders, AML gives more priority
to provide a uniform balance on all objective fronts.
Financial Objective
Abdul Monem Limited Ctg. aims at generating appropriate financial results through
sustainable growth and constant renewal of balanced business structure.
Strategic Objective
Abdul Monem Limited Ctg. is open and trustworthy to all its business partners and
consumers. Through devoted business activities, it wish to make worthwhile
contribution to the progress of the country.
Short Term Goals
AML aims to be one of the top market leaders, if not the supreme, while maintaining its
profit and goodwill assuring maximum benefit to its clients and employees. To achieve
the companys short term goals, the senior executives exhibit behavior based on the
principles of leadership and teamwork in general and situational leadership model in
particular. They are result oriented, accountable, open and humane.
Long Term Goals
Guided by the vision, AML believes in ensuring long term existence by being profitable,
successful and sustainable. This is achieved by the companys commitments in providing
value-adding products and services demonstrate the companys commitment to use
resources optimally.

2.7 Values of AML

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Our core beliefs and values are driven by three aspects:

People Prosperity Progress

People

Our people are our strength. Hence, our company prioritizes to nurture and provide
them with the opportunities to achieve their maximum competence. We also express
our preeminent desire to serve the needs of our valued customers, business partners
and the society in general by being responsible in creating and delivering our valuable
products, services and business practices.

Prosperity

Prosperity outlook is key to our success. Our company contributes immensely to the
prosperity of the people and the country. Therefore, we ensure to utilize advanced
technologies, skills and knowledge of a dedicated, well-trained and motivated workforce
in delivering high quality products and services to our esteemed customers.

Progress

We explore for progress. Our company believes in sustainable development by

investing in the future of our people, our business, our society and our nation as a whole.
Thus, we continuously explore ways to progress and elevate our practices, our standards
and our expectations.

We at Abdul Monem Limited put our philosophy and principles into our day-to-day
business practices.

2.8 Strategic Business Units (SBUs) of AML

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 Construction & Infrastructure Development
AM Construction and Builders
Monem Business District

Food and Beverage

Authorized Bottler-The Coca-Cola Company
Igloo Ice cream
Igloo Foods Limited
Amo milk Dairy Products

Sugar Refinery
AM Sugar Refinery Limited

Securities & Financial Service

AM Securities & Financial Service Limited

Medicine and Pharma

Novus Pharmaceuticals Limited

Soft Services
Service Engine (BD) Limited
AM Consulting Limited

Education
Abdul Monem University (Proposed)
AM Skill Development Institute (Proposed)
AM College
AM High School
AM Primary School
AM Madrasa and Orphanage

Foundation and CSR

Abdul Monem Foundation
Abdul Monem Education and Technology Trust.

2.9 Board of directors

17
The list of Board of Directors of the company is given below:

Mr. Abdul Monem Chairman & Managing Director

Mr. Mainuddin Monem Deputy Managing Director-I

Mr. Mohiuddin Monem Deputy Managing Director-II

2.10 Organogram of Abdul Monem Limited Ctg.Organogram

18
2.11 Product Portfolio

19
 The Products of AML are:
Bottle Pack Brand
Coca-Cola Diet Coke Sprite Fanta
200/250ml
RGB 1 Ltr.
500ml
PET 1 Ltr.
1.5 Ltr.
2.0 Ltr.
Can-12 pcs 250ml
can-24 pcs 250ml

2.12 Achievements and Recognition

It always feels good when we are recognized for our contributions to the people, the
society and the nation. We dont work for this praise rather we take our work as our
responsibility towards building a better future for all.

The Presidents Awards

The longest TAX payer award
The longest VAT payer award
IFAWPCA gold medal
Business person of the year 2008, Bangladesh
Commercially important person of 2010, 2011 & 2012
Excellence for business performance from Jamuna Bank ltd
Igloo- No.1 ice-cream brand by Bangladesh Brand Forum
Other recognition from various Government departments for business
performance, corporate governance and contribution to national
development.

2.13 Major departments

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Like every other Abdul Monem Ltd. Ctg. has different departments for carrying out
several activities. The major departments of AML are:

Finance Department:
VAT section calculates the VAT amount of the AML as well as the third parties that has
to be deposited to the Government and work with the Accounts Manager for this
purpose.
Under finance department there are small units which are Budget and Cost Control,
Financial Accounting & Treasury, Audit and VAT. These sub units are inter related and
work together. Director Finance is the head of the department assisted by GM Finance
and Treasury and GM Budget and cost Control. Both internal and external audit team
perform auditing activities.

Human Resource Department:

The Human Resource Department is responsible for the management of the employee
in order to achieve organizational goals and coordinates with other departments for the
effective utilization of resources. This department works for recruiting, training and
evaluating employee performance.

Supply Chain Department:

This department collects raw materials from the specific vendors at suitable price and
quantity. In addition to that this department also purchases required machineries and
stationery products for the organization. This department received the bills from the
third party and sends them to Finance and Treasury department.

Marketing Department:
AML has been developing very rapidly in terms of market share and sales growth.

Sales Department:
This department has two categories Decorative and Industrial & Marine. Decorative
Sales unit headed by Director Operations who is assisted by GSM-D. Industrial and
Marine unit is headed by Director Operations, assisted by the Manager Industrial &
Marine.

Information Technology Department:

The Information Technology (IT) Department develops and maintains an internal
network of workstations, digital networking equipment, operating systems and servers
to tie the departments together. This department uses the software programs to
manage the information electronically.

Research & Development:

21
AMLs research and development department plays an integral role. They find out
whether the existing products need any change and upgrades according to the
requirements. New product research and development quality check etc. are the main
activities of this department.

2.14 SWOT Analysis of AML:

The Strengths and Weakness of HR policies in AML represents its internal health and
vulnerability whereas the Opportunity and Threats represents its degree of external
exposure and interactivity. SWOT analysis provides a good overview of whether its
overall situation is fundamentally healthy or unhealthy and provides the basis for
crafting strategy on every front. Where S stands for Strength, W stands for Weakness, O
stands for Opportunity and T stands for Threats. SWOT analysis on AML is given below:

Strengths
1. International brand image of Coca Cola
2. Technical expertise and R&D provided by international authority of Coca Cola
3. Nationwide distributorship driven by highly motivated workforce.
4. Value chain integration through the efficient use of the other business entities
of the group, such as the products of IGLOO Sugar is used as a base ingredient in
Coca Cola.

Weakness
1. Dependency on the international Coca Cola authority.
2. Concentrate more on Igloo Ice Cream rather than other sister concerns
because of the market demand.

Opportunities

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 1. At present, AML only bottles and distributes only three brands of beverages -
Coca Cola, Sprite and Fanta. It is always possible to introduce other world famous
Coca Cola brands like Bislery (Drinking Water), Maaza (Mango Drink) and others.
2. AML currently can distribute its beverages only in Chittagong, Khuina, Sylhet
and Barishal Division. The acquisition of the distributorship of the whole
Bangladesh will be a great opportunity for AML.

Threats
1. The ever rising number of new entrants in the business.
2. Narrow band of beverage product line compared to the competitors.
3. Dominance of substitute beverage products like fruit juice.

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 Chapter 3
Abdul Monem Ltd. Chittagong:
An Overview of Coca-Cola

24
3.1 History of Coca-Cola:
Coca-Cola is manufactured by the Coca Cola Company; Coca-Cola is one of the world's
most popular carbonated soft drinks.

Coca-Cola history began in 1886 when the curiosity of an Atlanta pharmacist, Dr. John S.
Pemberton, led him to create a distinctive tasting soft drink that could be sold at soda
fountains. He created a flavored syrup, took it to his neighborhood pharmacy, where it
was mixed with carbonated water and deemed excellent by those who sampled it. Dr.
Pembertons partner and bookkeeper, Frank M. Robinson, is credited with naming the
beverage Coca-Cola as well as designing the trademarked, distinct script, still used
today.

Prior to his death in 1888, just two years after creating what was to become the worlds
no. 1 selling sparkling beverage, Dr. Pemberton sold portions of his business to various
parties, with the majority of the interest sold to Atlanta businessman, Asa G. Candler.
Under Mr. Candlers leadership, distribution of Coca-Cola expanded to soda fountains
beyond Atlanta. In 1894, impressed by the growing demand for Coca-Cola and the desire
to make the beverage portable, Joseph Biedenharn installed bottling machinery in the
rear of his Mississippi soda fountain, becoming the first to put Coca-Cola in bottles. Large
scale bottling was made possible just five years later, when in 1899, three enterprising
businessmen in Chattanooga, Tennessee secured exclusive rights to bottle and sell
Coca-Cola. The three entrepreneurs purchased the bottling rights from Asa Candler for
just $1. Benjamin Thomas, Joseph Whitehead and John Lupton developed what became
the Coca-Cola worldwide bottling system.

The 1980s featured such memorable slogans as Coke is It!, Catch the Wave and
Cant Beat the Feeling. In 1993, Coca-Cola experimented with computer animation,
and the popular Always Coca-Cola campaign was launched in a series of ads featuring
animated polar bears. Each animated ad in the Always Coca-Cola series took 12 weeks
to produce from beginning to end. The bears were, and still are, a huge hit with
consumers because of their embodiment of characteristics like innocence, mischief and
fun. A favorite feature at World of Coca-Cola is the ability to have your photo taken with
the beloved 7 tall Coca-Cola Polar Bear.

25
3.2 Coca-Cola in Bangladesh:

Coca-Cola entered Bangladesh in 1965 through an agreement with Tabani Beverage. The
beverage industry of Bangladesh is an old, steady yet neglected industry. For many years,
the only product of the industry was Carbonated Beverage or Carbonated Soft Drink
(CSD) and the number of players was limited to only a handful. Today, the industry has
flourished considerably with a bunch of new enterprises and through the introduction
of newer and more diverse products.

Though no record for merger was found in the history of AML, the entrance of AML in
beverage industry was the result of a huge acquisition of contemporary scenario. Till
1982, the authorized bottler of Coca Cola for Bangladesh was entitled to K. Rahman &
Company. AML took over its bottling operation by acquiring the plant of the K. Rahman
& Company in Chittagong in 1982. It has set up two more bottling plants, one in Dhaka
and other in Comilla, till then.

3.3 Product line of AM Beverage Unit:

During 1956 AM Beverage Unit serve us by different drinks

Coca-Cola
Fanta
Sprite
Sunfill Mango Juice
Kinley Drinking Water
These product lines have different soft drinks:

Coca-cola Sprite Fanta

Glass Bottle 175ML Glass Bottle 175ML Glass Bottle 175ML
Glass Bottle 200ML Glass Bottle 200ML Glass Bottle 200ML
Glass Bottle 250ML Glass Bottle 250ML Glass Bottle 250ML

Pet 500ML Pet 500ML

CAN- 250 ML CAN- 250 ML Pet 500ML
Pet 1 Liters Pet 1 Liters CAN- 250 ML
Pet 2 Liters Pet 2 Liters Pet 1 Liters

26
3.4 Manufacturing Process of Coca-Cola:

27
3.5 Target market selection of Coca-Cola:
Market can be segmented in four ways, Geographic, Demographic, Psychographic, and
Behavioral segmentation. They follow Differentiated (segmented) Target marketing
Strategy because they segment their market at different level.Here we have described
in which way Coca-Cola BEVERAGE has segmented their total market and targeted which
group of peoples as their target consumers or target market.

Geographic segmentation AM BEVERAGE has segmented their market in one category

which is

Domestic market They have divided their domestic market on the basis of urban
rural identification. The company selected both urban and rural people as their target
consumers. People from cities, towns, villages; in one word AM BEVERAGE targeted
maximum people from maximum regions of the country.

Demographic segmentation AM BEVERAGE has different demographic areas to

segment their market. Like age, family life cycle, gender, income, occupation,
education etc.

Age AM BEVERAGE targets ages from all groups of people. Children, teenagers, young
people, middle age group, and the older people, all likes Coca-Cola as well, but they
exclude children under three years. Because Coca-Cola is a little bit different and
everybody likes it.

Family life cycle AM BEVERAGE targets the extended family as their target consumers.
In cities and towns it is not rare but in villages small towns it is rare. Because family
members are in towns usually drink Coca-Cola together.

Gender AM BEVERAGE targets both male and female as their target customers. It can
be taken with fried rice or snacks or some other foods. People take it while chatting,
gossiping, entertaining guests, and sometimes in leisure.

Income There are a lot of income groups in the market. AM BEVERAGE targets almost
all income groups as their target customers. The price of Coca-Cola is not very high, so a
huge amount of people from different income groups has the ability to buy Coca-Cola.
Thats why BEVERAGE targets AM all income groups.

Religion AM BEVERAGE targets peoples from all religion groups. The ingredients used
to make Coca-Cola are not any such things, which are forbidden in any religion. So people
from all the religion can avail the Coca-Cola from AM BEVERAGE

28
Education AM BEVERAGE dont target only educated persons as their target
consumers. They consider both the educated and non-educated persons.

Psychographic segmentation The total market can be segmented and targeted by

different psychographic elements, such as life style, personality and values. AM
BEVERAGE targets all the people, whatever their life style and values are.

Behavioral segmentation AM BEVERAGE segments the buyers into groups on the

basis of their knowledge of, attitude toward, use of, or response to a product.
Occasions, benefit sought, user status, usage rate and loyalty status are the best
starting points for constructing market segments.

Occasion Occasion segmentation helps the company to expand product

usage. AM BEVERAGE considers different occasion to sell their product in a
large volume.

Benefit sought Buyers can be classified according to the benefits they seek. AM
BEVERAGE segments the consumers on the basis of the wants or needs they are seeking
for.

User status Markets can be segmented into nonusers, ex-users, potential users, first-
time users and regular users of the Coca-Cola.

Usage rate Markets can be segmented into light, medium and heavy users. The
consumers of AM BEVERAGE are heavy users maximum in number.

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3.6 Pricing Strategy of Abdul Monem Beverage Ctg.:

Every company has its separate pricing policy or strategy for its products. When it has a
diversified and rather large product line it opts for individual pricing strategy for each
particular segment of the product line. AM BEVERAGE is no exception. It also goes for a
total pricing strategy as well as separate pricing strategy for individual products. As it is
different from other products it needs separate attention. Its pricing is done on the basis
of the existing competitive products. It depends somewhat wholly on the existing price.
Its pricing should meet the competition. There is no scope for market penetration or
market skimming as it is already available through other companies.
AM BEVERAGE pricing procedure is comprised of several steps. The procedure starts
with estimating the total cost incurred by the company. If its not close or even equal to
the cost incurred by other companies then the management seeks the problem and fixes
it to reduce production cost. Then the company sets a price for the distributors, keeping
reasonable profit margin for the company. They then fix a price for the retailers preserve
a margin for the distributors and the last step is establishing a price for the ultimate
customers securing an attractive profit margin for the retailers. This procedure is called
the "Inject system".
The price does not affect their sales volume as they assure certain qualities and ensure
a bit higher the expectation. These specific conditions are-
Excellent
Proper Hygiene
Fresh Ingredients
Attractive Packaging
Adequate Labeling
Goodwill
Brand Image
The consumers are willing to pay an extra amount of money when they are assured of
these qualities in the product. Nowadays people are more health conscious rather than
being financially conscious. They dont want the good product; they search for the better
or the best. They are more aware of the quality not the quantity. As AM BEVERAGE
ensures the superior quality than any other brand it enjoys a healthy sales volume as
well as huge profit margin though they are charging a bit above the going rate price in
the market. The pricing strategy is thus put to an effective implementation.

30
3.7 Price List of Coca-Cola:
Sizes Are Available Price (Tk.)

GLASS BOTTLE 175ML 13

GLASS BOTTLE 200ML 15

GLASS BOTTLE 250ML 18

Pet 500ML 30

CAN- 250 ML 35

Pet 1 Liter 55

Pet 1 Liter 55

3.8 Distribution channels:

AM Beverage Ltd ensures a supply chain worthy and fulfilling the current market
situation. It supplies its products through a series of marketing intermediaries who play
vital roles in reaching the final consumer. These intermediaries vary with the domestic
and international market. The supply chain also changes side by side.

AM Beverage inputs emphasis much more on the domestic market rather than the
international market. It is a nation oriented organization. It is engaged in reaching the
consumers on the farthest corners of the country through effective supply chain. For
that reason they have a strong distribution facility which ensures timely and effectively
reaching the final consumer.

31
 Fig: Supply Chain & Distribution Channel of Coca-Cola
The product is developed and produced in the factory. Judging from the market needs
the product is produced in a certain quantity per day. Its called the PPD or Production
per Day.

The products are then delivered to the dealers all over the country. The dealers are
mostly located in the District headquarters or Thanas. The wholesalers and retailers buy
products from the dealers. The wholesalers are the people who sell the product at a bulk
to the final consumer. Sometimes they reach the final consumer through direct selling
process. But most of the times the retailers collect or buy the products from the
wholesalers and sell those to the final consumers. Sometimes the retailers dont go to
the wholesalers; they collect the product from their nearest dealer.

In Bangladesh there are superstores like AGORA, NANDAN, BIG BAZAR, PQS, PACIFIC,
MEENA BAZAR, SAPNO etc. There are lots of other superstores blooming in the country.
In the hotels and restaurant category there are lots of names which due to time
constraint cannot be mentioned here. This is also true in the case of canteen, hostels,
CSD.

32
3.9 SWOT Analysis:
Strengths of the company
1. Good quality:
Coca-Cola having the best quality product in the market. As it is a relatively product it
tends to put much more emphasis on the quality so as to sustain in the competitive
market. There are other various brands competing in this particular product segment.
Through highly developed research and production facility and also being hygienic it
creates a quality product for the entire market.

2. Strong marketing network:

AM Beverage is a sister concern of AM Group. It has a large marketing network almost
all over Bangladesh. It has affiliation with the major companies in the country. It can
gather information regarding the current market situation from them and act according
to that.

3. Strong monitoring system:

Through strong management system it monitors the production as well as the
distribution of its products. It also ensures proper management and effective utilization
of scarce resources and maintaining a good working environment.

4. Sales plan and implementation:

Proper sales plan ensures a hefty amount of product sale. AM Beverage ensures a market
wise sales plan and implements the plan through effective marketing policies and
strategies.

5. Proper distribution system:

AM Beverage has a wide array of distribution channels all over Bangladesh. It maintains
good working relationship with various dealers to have a proper distribution of its
products. It engages dealers in the main districts and towns in the domestic region and
also local dealers in foreign countries.

33
Weaknesses of the company
Insufficient product penetration:
As there are lots of consumer item manufacturing companies prevailing in the
market there is no scope for market penetration. There is a huge competition in
the market and the strategy in this case cannot be market penetration.
Insufficient product delivery as per market demand:
The market is huge in Bangladesh for the FMCG (Fast Moving Consumer Goods).
The market demand is also very high. The company alone cant satisfy the whole
market demand by delivering their products to the consumers.

Opportunities of the company

Huge scope in Bangladesh:
Bangladesh is a country full of opportunities. There is a huge market for snacks
and other consumer food items. AML Beverage wants to seize the opportunities
by producing various new products and modifying the present products.
Huge promotional activities in various satellite channel:
Satellite channels are mushrooming in our country. The scope of advertisement
in those channels and improving, accelerating the promotional activities also rise
with the increase of the satellite channel.

Threats of the Company:

Presence of competitors:
There are a number of both local and foreign competitors of Fanta in the
beverage market. These companies; especially the multinational companies
such as Transcom Beverage, Pertex Group, PRAN, Globe Beverage, Akij Food
and Beverage Limited, pose a huge threat to AML.
Increase of raw materials in the international market
The price increase in the international market is another matter of concern for
AML. This would also create a situation for the AML to increase their price as well,
which in turn may decrease their sales.

34
 Chapter 4
Accounting Practices
Of
Abdul Monem Ltd. Chittagong

35
4.1 Accounting Software used in AML:
Abdul Monem Ltd. Ctg. Uses ERP accounting software. When I joined in AML they were at the
phrase of online trading. At that moment they were using ERP software.

About ERP:
In accounting, ERP (Enterprise Resource Planning) is the acronym for enterprise resource
planning. ERP could be described as a database software package that supports all of a
business's processes and operations including manufacturing, marketing, financial, human
resources, and so on.
The integration of all of a company's information from all departments, processes, operations,
etc. requires that an ERP system be very sophisticated. This in turn requires a company to
commit considerable resources for planning, training, and implementing an ERP system.

Key Factors:
Access to all the company's information across all departments in real-time

Stronger customer relations through better access of customer information as part of

your company's practices in customer relationship management (CRM)

Improved controls at each stage of the supply chain

Enhanced security with access to a single set of user settings to better protect your
company's information

36
Advantages:
Complete visibility into all the important processes, across various departments
of an organization (especially for senior management personnel).
A unified and single reporting system to analyze the statistics/status etc. in real-
time, across all functions/departments.
Advanced e-commerce integration is possible with ERP systems most of them
can handle web-based order tracking/ processing.
Since ERP is a modular software system, its possible to implement either a few
modules (or) many modules based on the requirements of an organization. If
more modules implemented, the integration between various departments may
be better.

Disadvantages:

The cost of ERP Software, planning, customization, configuration, testing,

implementation, etc. is too high.
ERP deployments are highly time-consuming projects may take 1-3 years (or
more) to get completed and fully functional.
Too little customization may not integrate the ERP system with the business
process & too much customization may slow down the project and make it
difficult to upgrade.

4.2 Accounting Practices of Abdul Monem Beverage Ltd. Ctg.:

4.2.1 Property, Plant and Equipment:
Recognition and Measurement
Items of property, plant and equipment are measured at cost less accumulated
depreciation and accumulated impairment losses, if any. The cost of an item of
property, plant and equipment comprises its purchase price, import duties and
non-refundable taxes, after deducting trade discount and rebates, and any costs
directly attributable to bringing the asset to the location and condition necessary
for it to be capable of operating in the intended manner.

37
 Subsequent costs
The cost of replacing part of an item of property, plant and equipment is
recognized in the carrying amount of the item if it is probable that the future
economic benefit its embodied within the part will fl ow to the company and its
cost can be measured reliably.

Depreciation
i) No depreciation is charged on land and capital work in progress.
ii) Property, plant and equipments are stated at cost less accumulated
depreciation. All property, plant and equipments have been depreciated on
straight line method.
iii) In respect of addition to fi xed assets, full depreciation is charged in the year
of addition irrespective of date of purchase in that year and no depreciation
is charged in the year of disposal/retirement. Residual value is estimated to
be zero for all assets. The rates of depreciation vary according to the
estimated useful lives of the items of all property, plant and equipment.

Considering the estimated useful life of the assets, the rate of depreciation
stand as follows:
Name of the Assets Rate of Depreciation
Land and Land Development 0%
Plant & Machinery 5%
Building and Civil Constructions 5%
Motor Vehicles 10%
Furniture & Fixtures 10%
Office Equipment 15%

4.2.2 Preliminary expenses

Preliminary expenses represents the expenses incurred relating to company formation,
feasibility study and legal expenses and it is fully amortized as the company had gone into
commercial operation as on 08 May, 2015.

38
4.2.3 Pre Operating Expenses
These represents expenses incurred before commencement of commercial operation of the
company and it is fully amortized as the company has gone into commercial operation as on
08 May, 2015.

4.2.4 Capital Work in Progress

Capital work in progress consists of acquisition costs of plant, machinery, capital components
of other equipment, related installation costs and directly attributable costs incurred until
date the asset placed in service. In case of purchase of components, capital work in progress
is recognized when risks and rewards associated with such assets are transferred to the
Company.

4.2.5 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.

Financial Assets
The Company initially recognizes receivables and deposits on the date that they are originated.
All other financial assets are recognized initially on the date on which the Company becomes
a party to the contractual provisions of the transaction.
Financial assets include trade receivables, intercompany receivables cash and cash equivalents
etc.

(a) Trade receivables

Trade receivables represent the amounts due from customers for rendering services.
Trade receivables are recognized initially at cost which is the fair value of the
consideration given for them. Provision for debts doubtful of recovery, if any, are made
at the discretion of management.
(b) Advance, Deposits and Prepayments
Advance are initially measured at cost. After initial recognition advances are carried at
cost less deduction or adjustments. Deposits are measured at payment value.
Prepayments are initially measured at cost. After initial recognition prepayments are
carried at cost less charges to the statements of Profit or Loss and other
Comprehensive Income.
(c) Cash and Cash equivalent
Cash and cash equivalents include cash in hand and cash at bank which are held and
available for use by the Company without any restriction. For the purposes of the
statement of cash flows, cash and cash equivalents comprise cash in hand, deposits
held at bank and financial institutions and short-term highly liquid investments with
maturities of three months or less from the date of acquisition.

39
 Financial liabilities
A financial liability is recognized when its contractual obligations arising from past
events are certain and the settlement of which is expected to result in an out flow from
the Company of resources embodying economic benefits. The Company initially
recognizes financial liabilities on the transaction date at which the Company becomes
a party to the contractual provisions of the liability.
The Company derecognizes a financial liability when its contractual obligations are
discharged or cancelled or expired.
Financial liabilities include trade payables, other payables and accrual and other
current liabilities.
(a) Trade and other payables
Trade and Other payables consist of unpaid bills payable for gas and lubricant
consumption. The Company recognizes a trade payable when its contractual
obligations arising from past events are certain and the settlement of which is
expected to result in an out flow from the entity of resources embodying economic
benefits.
(b) Loans and borrowings
Borrowings are classified into both current and non-current liabilities.

4.2.6 Revenue recognition

Revenue is recognized in the statement of comprehensive income upon supply of
Electricity, quantum of which is determined by survey of meter reading. As per BAS-18
Revenue is recognized to the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured. Revenue measured at the fair value
of the consideration received or receivable. The following specific recognition criteria must be
met before revenue is recognized:
a. the amount of revenue can be measured reliably.
b. The flow of economic benefits to the entity is probable.
c. When the service is performed in accordance with the terms of contractual
arrangement.

40
4.2.7 Statement of Cash ows
Statement of Cash Flows has been prepared under indirect method as per BAS-7
Statement of Cash Flows.

4.2.8 Related Party Disclosures

The company carried out related party transaction only with sister concerns. The
Information as required by BSA-24: Related party Disclosure has been disclosed
Separately in notes to the accounts 27.

4.2.9 Employee benet schemes

Workers profit participation fund (WPPF) The government of Bangladesh has made an
amendment to the Labor Law 2006 in July 2013. As per amended section-232 (chha) of the
Act, any undertaking carrying on business to earn profit is liable to make provision for WPPF
at 5% of the net profit and also need to be distributed within 9 months of the statement of
financial position/balance sheet date. Operation and maintenance activities of UAEL are
managed by 126 employees of United Engineering and Power Services Limited under an O&M
Contract. Therefore the provision of WPPF is not applicable for the company.

4.2.10 Income Tax

Tax on the statement of profit or loss & other comprehensive income for the year comprises
current and deferred tax.
a. Current tax
No provision is required for income tax on the Companys business operating
profits as the Company has received exemption from all such taxes from the
Government of Bangladesh under the private sector power generation policy for
a period of 15 years from start of its commercial operation, vide SRO ref: 354-
Law/Income Tax/2013Income Tax ordinance (#36) 1984 dated 18 November
2013. However, provision has been made on other operating income of the
Company @ 35% (Note-21).
b. Deferred tax
As there is considerable uncertainty with regard to the taxation of the Company
after the expiry of the tax exemption period, management feels it is not possible
to make a reasonable estimate of deferred tax assets/liabilities at this stage.

41
4.3 Employees Response:
During my internship period I tried my best to find out the bottle neck and or the difficulties of
the account department of Abdul Monem Beverage Ltd. Chittagong, to make sure to success
my goal I developed a questionnaire and conducted face to face discussion with the employees
of the company. After the discussion I found several significant data and easily enabled to trail
the trouble. According to the response, I identified three major problems and included those in
my report to postmortem and come up with a solution.

Column1
Written accounting policies

Cash Basis and accural basis

12%
20%
Frequency of making financial
7% Report
8% Bank Reconcilation

18%
9% Maintaining invoice, Voucher and
other documents
15% 11% Insurance of bank deposite

Frequency of audit

4.4 Accounting Policies and Procedures

The purpose of an accounting system is to accurately record all financial transactions and
ensure that all financial transactions are supported by invoices, timesheets and other
documentation. The type of accounting system often depends on the size of the
organization. Some organizations may have computerized accounting systems, while
others use a manual system to record each transaction in a ledger.

After having a short question answer session with the employees of the Abdul Monem
(Pvt.) Ltd. as well as the sister concerns accounts people I have noticed more than a few
difficulties. Among those, the most anxious fact was they have no written accounting

42
policies and procedures. It is worth to mention that, among three major malpractice 38%
responds worried about the accounting policies and procedures. I feel written
accounting policies and procedures are very important and mandatory for such a big
limited company that have a mentionable investment. There is no option to maintain a
healthy accounting information system without implementing a written accounting
policies and procedures.

Accounting policies are essential to any company to continue consistency and to set up
a standard for decision-making. Based on policies, procedures are developed and
followed, as well as paying bills, cash management and budgeting. Accounting policies
should agree by top management and do not modify much during the years. They are
developed for long-term use, reflecting firms' values and ethics.

Accounting policies and procedures help human resources to run business without
constant supervision of the authority. These are uncomplicated, easy to understand and
to pursue. For illustration, if company has the guidelines of not accepting checks, then
employees do not accept checks, even if there is no one to check them. Writing
accounting policies and procedures may be complicated, but they will facilitate in the
long term, keeping processes consistent and plain.

Accounting policies can be about any financial matter, such as consolidation of accounts,
depreciation methods, goodwill, inventory pricing and research and development costs.
Policies may vary with individual industries and sectors.

The business accounting policy and procedure covers multiple areas: general accounting
guidelines, financial reporting, daily accounting practices and period close and other
accounting reports. At a detailed level, this might include the company's stance on
vendor payments, employee expense reimbursements or travel policies, for example.
Well-defined corporate accounting policies ensure that accounting practices across the
business remain consistent, that financial employees follow generally accepted

43
 accounting principles and practices and that all financial transactions are accurately
recorded and maintained according to the policies defined.

Absence of accounting policies and procedures has a great impact on the AML.
Accountants are also feeling ambiguous, confused and insecure, which were not
supposed to happen if there were a policy and procedure instruction guide. Though
developing a written accounting policies and procedures guide is expensive, laborious as
well as time consuming but in the long run it become very inexpensive and resulted to a
healthy accounts department.

4.5 Cash Basis and Accrual Basis

One more key improper practice that I have become aware of is that AML recorded their
transactions in cash basis rather than accrual basis. But under this manner the revenue
recognition and the matching principal are disregarded. Accordingly, financial
statements are not in conformity with generally accepted accounting system. Indeed,
some small business enterprise uses cash basis approach. Under the cash basis
accounting, revenue is recorded only when the cash is received and expense are
recorded only when the cash is paid. The determination of income on the cash basis rests
upon the collection of revenue and the payment of expenses. The only positive thing is
33% respond oppose cash basis and looking forward to change into accrual basis.

44
 Are your Financial Reports prepared on a:
Cash Basis
Accural Basis

Written accounting policies and

29% procedures
38%
Cash basis and accural basis

Bank Reconcillation
33%

4.5.1 Significant differences between Cash Basis and Accrual Basis:

There are no receivables or payables in a cash basis balance sheet.

For small businesses that are within certain income tax limits, there may not be
inventory on a cash basis balance sheet.

Only the cash amounts that are collected from sales and other revenue activities are
shown as revenue in cash basis reports. On accrual basis reports, revenue includes both
collected and uncollected amounts.

Only the cash paid to vendors and others are shown as expenses in cash basis reports,
whereas on accrual basis reports, expenses include both paid and unpaid amounts.

4.5.2 The following are examples that use an accrual basis system:
Revenue is recognized before cash is received and is described as accrued
revenue. It is categorized as a current asset. The most common example is
accounts receivables that result from sales to customers.
Cash is received before the revenue is earned and is described as deferred
revenue. It is categorized as a current liability. For example, a customer might
pay you a deposit for a service. However, you do not recognize the revenue until
you have performed the service. Another example might be prepaid rental
income. A tenant might pay you on a quarterly basis for rent, but you only
recognize each month's rent as it occurs.

45
 Expense is recognized before cash is paid and is described as accrued expense.
The most common example is accounts payables that result from purchases from
vendors. Another example is paying interest on a bank loan on a quarterly basis
but recording the accrued interest on a monthly basis.
Cash is paid before the expense is incurred and is described as a deferred or
prepaid expense. It is categorized as a current asset. For example, you might pay
your auto insurance every six months, but you only recognize one month of
expense at a time.

It is alarming time to change accounting system from cash basis to accrual basis. Only
experienced and account background person can effectively implement this new perfect
policy, according to GAAP. Another flexible way to develop this worker through training
and workshop, consequently, they could be effectively implement and build a great
milestone.
4.6 Bank Reconciliation
Bank reconciliation statement is a report which compares the bank balance as per company's
accounting records with the balance stated in the bank statement.

It is normal for a company's bank balance as per accounting records to differ from the balance
as per bank statement due to timing differences. Certain transactions are recorded by the
entities that are updated in the bank's system after a certain time lag. Likewise, some
transactions are accounted for in the bank's financial system before the company incorporates
them into its own accounting system. Such timing differences appear as reconciling items in the
Bank Reconciliation Statement.

The purpose of preparing a Bank Reconciliation Statement is to detect any discrepancies

between the accounting records of the entity and the bank besides those due to normal timing
differences. Such discrepancies might exist due to an error on the part of the company or the
bank.

While discussed concerning the bank reconciliation I found it is one of the immense problems in
Abdul Monem (pvt) Ltd. At the same time 29% respond agreed with me, therefore, I keep it as a
third major trouble in my report.

46
 How often do you do bank reconciliation?

Written accounting policies and

29% procedures
38%
Cash basis and accural basis

Bank Reconcialtion
33%

4.6.1 Importance of Bank Reconciliation

Preparation of bank reconciliation helps in the identification of errors in the
accounting records of the company or the bank.

Cash is the most vulnerable asset of an entity. Bank reconciliations provide the
necessary control mechanism to help protect the valuable resource through
uncovering irregularities such as unauthorized bank withdrawals. However, in
order for the control process to work effectively, it is necessary to segregate the
duties of persons responsible for accounting and authorizing of bank transactions
and those responsible for preparing and monitoring bank reconciliation
statements.
If the bank balance appearing in the accounting records can be confirmed to be
correct by comparing it with the bank statement balance, it provides added
comfort that the bank transactions have been recorded correctly in the company
records.
Monthly preparation of bank reconciliation assists in the regular monitoring of
cash flows of a business.

47
 Chapter 5
Findings, Recommendations
And
Conclusion

48
5.1 Findings of the Study:
1. They practice green accounting.
2. The use ERP software for account maintenance.
3. They maintain final account properly.
4. They use double entry accounting system for accounting procedure.
5. They publish report in due time.
6. They dont let to know about their internal report.
7. The training procedure of employees is not sufficient.
8. They dont give importance on advertisement of their own.

49
5.2 Recommendations:
1. The software being used in Abdul Monem should be updated.
2. Abdul Monem Ltd. should give more importance on accounts system.
3. Employees of the company must be trained about accounting policies and
procedures.
4. They should Practice more commercial advertisement to promote the Coca-Cola.
5. As the oldest enterprise in the beverage industry of the country, the only cost AML
can consider is the variable cost of the product and can forget about the
establishment cost as it should have been recovered after all these days. Thus, AML
can consider a serious price cut to rule out the smaller player from the market and
gain more share.
6. Psychologically, a reward becomes more excitement when it is within reach.
Publicize gift for consumer by advertisement and conversations so that salespeople
and consumer know not only that these are exist but also that they are attainable.

50
5.3 Conclusion:
AML BEVERAGE is one of the leading company in Bangladesh. By Adding new products,
maintaining the quality, applying modern machineries, improving workers skill, they are
serving peoples in the whole country. People are being satisfied by consuming these
products such as Coca-Cola, Fanta Orange, Fanta Lemon, etc. than others companies
beverage products.

AML BEVERAGE holds product concept as their marketing philosophy. According to

product concept, consumers will favor those who are always announcing that they will
ensure better quality at a minimum and affordable price. So AM BEVERAGE strongly
focuses on the quality of their products.

It is selling their goods to the consumers of both rural & urban areas. It is trying to keep
their quality intact & satisfy the customers through various promotional efforts. It is also
trying hard to gain the first position among the competitors. To perform these activities
this company gives appointment to the highly qualified, efficient & experienced
employees. It is ready to face any challenge.

So AM BEVERAGE is trying to perform well like other companies in Bangladesh. Because

of these reasons, people prefer these products very much.

51
References:

http://www.amlbd.com/history.php

http://newagebd.com/newspaper1/archive_details.php?date=2012-01-
02&nid=45584

www.wikipedia.com

www.amlbd.com

AGORA Departmental Store, Prabartak Mor

SHAPNA Super shop, Gul Pahar Mor.

52