Term-Paper-Bus203-PARTEX-Beverage (Done)

Internal External Environment Analysis of PARTEX Beverage
INTERNAL and EXTERNAL ENVIRONMENT ANALYSIS

OF PARTEX BEVERAGE
SUBMITTED TO,
MS. ASHEKA MAHBOOB
LECTURER,
BRAC UNIVERSITY
PREPARED BY,
SAYEED HASSAN MAHDEE (13304138)
TAHMID TAWSIF NUR (13304085)
AMINA FARHAD RIFA (14104119)
SHAMSUN NAHAR (13204020)
AHMED OMAR NAIEEM (13104196)
DATE: 28/7/2015
July 28, 2015
Ms. Asheka Mahboob
Lecturer
BRAC Business School
BRAC University.
Subject: Letter of Transmittal.
Dear Madam,
With due respect we, the students of Business Environment (BUS-203) course, have reported on
“Business environments of Partex Beverages”.
As we are in learning curve, this paper has limitations in terms of information. It was an
extremely challenging and interesting experience. Thank you for your supportive consideration
for formulating an idea. Without your Inspiration this report would have been an incomplete one.
Lastly I would be thankful once again if you please give your judicious advice on our effort.
Yours’ sincerely,
Sayeed Hassan Mahdee (13304138) Tahmid Tawsif Nur (13304085)
Amina Farhad Rifa (14104119) Shamsun Nahar (13204020)
Ahmed Omar Naieem (13104196)

2
Contents
Executive Summary ........................................................................................................................ 5
Partex Group ................................................................................................................................... 6
Partex Beverage Limited (PBL)...................................................................................................... 6
Partex Beverage Ltd.: Core functions ........................................................................................... 11
Focus on Sales and Marketing ...................................................................................................... 12
Distribution Process: ..................................................................................................................... 13
The External Environment of Partex Beverages ........................................................................... 15
Strength ......................................................................................................................................... 16
Weakness ...................................................................................................................................... 16
Opportunities................................................................................................................................. 16
Threats........................................................................................................................................... 17
Suppliers’ Strength........................................................................................................................ 17
Buyers’ strength ............................................................................................................................ 17
Competitive rivalry ....................................................................................................................... 18
Political Environment ................................................................................................................... 19
Economic ...................................................................................................................................... 20
Inflation Rate: ............................................................................................................................... 20
Purchase Power ............................................................................................................................. 21
Economic Downsizing .................................................................................................................. 21
Unemployment .............................................................................................................................. 21
Local Economic Position .............................................................................................................. 21
Monetary Policy ............................................................................................................................ 21
Helping autistic children ............................................................................................................... 22
Aid in Natural calamities .............................................................................................................. 22
3
Inspiring the young Architects ...................................................................................................... 23
Socio Cultural Development ......................................................................................................... 23
Technological ................................................................................................................................ 23
Legal ............................................................................................................................................. 23
Environment .................................................................................................................................. 24
Appendix ....................................................................................................................................... 31
Interview Questionnaires (Open Ended) ....................................................................................... 31
4
Executive Summary
Bangladesh soft drink market is under volatility and it is one of the fastest growing markets in
Bangladesh. During 80’s the consumer of Bangladesh even never thought of having energy drink
by paying almost equivalent amount of money as required to buy a carbonated soft drink. From
marketing point of view, 30 years ago it was not a commodity.
Energy drink is a new thing in Bangladeshi market and they try to explore a new world of test,
flavor, feeling and finally ensure the quality of new drink in the market. It is new but it’s very
attractive and potential to the customer, that’s why the market value and market share is increase
day by day. So it is a great opportunity for a soft drinks marketer to enter the market and gain a
lot of profit to ensure the customer satisfaction.
Partex Beverage Ltd is a leading soft drink producer, they want to introduce a new and potential
energy drink for the customer, that’s they try to understand the current market of energy drink.
During our research time we conducted market survey through questionnaires that is build up
marketing mix, and my main target to full fill research objective that is depend on five variable
(Retail sales pattern & volume, Retailers attitudes towards energy drink, Consumers
consumption pattern, Producers activities & thinking. Consumer’s attitudes towards energy
drink).
5
Company Overview
Partex Group
Partex Group started its journey in 1959 with the torchbearer M.A Hashem, founder chairman of
the group. M.A Hashem, the living legend steered the group with such incomparable dynamics
and skills, that the group attained prolific growth over a period of 50 years conglomerating 60
companies; most of which are diverse manufacturing units.
The enormous growth and fulfillment of anticipated success caused eventually a natural exodus
from patrimonial management system while using the Partex as a springboard that has been held
in high respect both at home and abroad for last 50 years for our adherence to values, quality
products and business ethics.
With the passage of time and advent of business, the pioneering spirit of Partex has been
showcased by family generation comprising Mr. Aziz Al-Kaiser, Mr. Aziz Al-Mahmood, Mr.
Aziz Al-Masud, Mr. Showkat Aziz Russell & Mr. Rubel Aziz.
Significantly enough, Partex Star Group an offshoot of Partex Group steering business
successfully with Mrs. Sultana Hashem at Chairperson and Mr Aziz Al Kaiser as Vice Chairman.
Partex Group, steered by Mr Showkat Aziz Russell at the helm, operating in business sectors like
communications and information technology, energy, materials, services and consumer products.
The major Partex Group manufacturing units are Partex Denim, Amber Cotton Mills Limited,
Partex Board Mills Limited, Partex Sugar Mills Limited, Partex Rotor Spinning Mills Limited,
Partex Energy Limited and service providing companies are Partex Holdings Limited, Dhakacom
Limited.
The group has created by and large an employment opportunity of over 25,000 employees as
collective work force.
Partex Beverage Limited (PBL)

Partex Beverage Limited (PBL) began its commercial production in the year 1997, as the sole
bottler of Royal Crown Cola Co, USA. It was the first beverage brand to enter the Bangladesh
market after the commonly known Coke and Pepsi.
6
PBL started bottling in the traditional glass bottles, but soon started bottling all their beverage
products in PET Bottles. They were the pioneers of this kind of packaging in Bangladesh and
hence captured a big slice of the beverage market. At present, there are more than 7 companies
producing carbonated beverages Bangladesh, but PBL can proudly say that they are 2nd largest
market share holder in the carbonated beverage market in Bangladesh. In the year 2000, PBL
began to expand by backward integration by producing their own PET performs and were the
only bottlers doing this at that time, for a number of years. PBL now has the largest bottle
blowing and perform making capacity in Bangladesh.
PBL launched its drinking water MUM in the year 2001. This product instantly became the
market leader in the water market, and still holds the highest market share till date. MUM has
now become one of the strongest and most trusted brands in Bangladesh. Distribution is one of
PBL’s greatest strengths; it has more than a hundred distributors around the country, serving
more than 10 Million outlets in rural and urban areas.
PBL’s products have also started going beyond borders, and they plan to increase their footprint
in the year to come. Innovation and pro-activeness have always been the vital drivers of PBL’s
success. PBL’s mission has always been to provide value at an affordable cost, progress in
diversity, and to contribute to the growth of industrialization in Bangladesh.
7
Organizational Structure
Name Position in the company

Mr, M, A, Hashem Chairman
Mr, Aziz AL- Kaiser Vice Chairman
Mrs, Sultana Hashem Head of Marketing
Mr, Showkat Aziz Head of HR
Mr, Aziz Al- Mahmood Head of Finance
The board of director create all type of polices, prepares guideline and strategy for the company
and the director and other top level employee support the decision and finally maintain all the
operation day by day carefully in the company.
Organization decision:
The managing director of the company carefully look all event of Marketing, Finance, HRD, and
several function of company day to day working performance and all the officer and staff of the
company responsible to perform effectively.
1) Finance Manager: He is responsible and accountable for his position that is occurs all the
day all type of financial transaction.
2) HR Manager: Here all type of job satisfaction of employees, employees job evaluation,
salary distribute, new employees hire. All the decision he takes carefully.
3) BDM: Business Development Manager takes all the decision regarding sales department
function in Partex Beverage.
4) Sales and Marketing Manager: All the function regarding sales distribution, sales channel,
Advertising method, survey customer satisfaction level of Partex Beverage Limited.
5) Project Development Manager: There are several type of work that is driven through a
project, here all type of decision and responsible is project manager
8
This company follows matrix structure. At the very top of this company Mr, M, A, Hashem
holding the chairman position.
Partex beverage has seven distinct product lines. Mum mineral water, Big Boss energy drinks,
RC can & cola, RC Orange, Upper 10 and RC Lemon.
Products of PBL
9
For all product line the company uses matrix structure to conduct operations. Mrs. Sultana
Hashem handles products marketing department. Mr. Showkat Aziz controls the human resource
department. All kind of stuffing, hiring and motivational process for employees gets handled
through him. In the finance department Mr. Aziz Al Kaiser is holding the head of the operations.
For the all product line he faces the financial decisions at very first. Above all the vice chairmen
position is engaged by Mr. Aziz AL-Kaiser.
The chart given below clears the whole process.
Chairman
Mr. M. A. Hashem
Marketing HR Finance Vice Chairman

Mrs. Sultana Mr. Showkat Mr. Aziz Al- Mr. Aziz AL-
Hashem Aziz Mahmood Kaiser
RC Cola
RC
Orange
Upper 10
RC Lemon
MUM
Big Boss
RC Can
Organizational structure of PBL
10
Culture of the organization
Partex Beverage Limited is a dynamic and more flexible maintain culture for every function of
the company.
Partex Beverage fosters creativity and entrepreneurship by creating a stimulating work

environment where ideas coming from any member of the organization are encouraged, matter
how small if people were to describe Partex beverage as a person they would use word like
initiative-taker.
Partex Beverage Limited always does the legal and ethical issues and also tries to do some
specific work that is effective for society and the people. So that is clear to all the people that
Partex beverage limited is situated in accommodative stance of social responsibility approach.
Partex Beverage Ltd.: Core functions

Production of RC Cola
Mission:
We delight our customers with superior quality product through flexible operations.
In order to support the mission, Production department is performing the following activities
successfully:
 Support brand portfolio / new product launch.

 Availability/product harmonization.
 Quality/ meet international standards.
 Low cost producer.
Backward vertical integration:
Partex Beverage requires most of its suppliers to deliver raw materials just in time for using on
its production line. They only need CSD chemical which they use for flavor and perform for
bottling. Other than that they produce everything here with their automated machineries. They
usually buy those raw materials from suppliers twice a year.
11
Focus on Sales and Marketing

Mission:
To reach our target consumers in the most efficient and effective way, through our strong
distribution channels in every market place where we do business. This department identifies the
areas in which best practice must be achieved to enable markets to meet its objectives, which are:
 Create an efficient entry barrier against local competition.

 Improve our distributor’s status to the trade pioneer among all FMCG companies.
It has the responsibility to reach the ultimate consumers through trade. e.g. Retailer. The
emphasis is not only on what volume is being sold to the retailers (Sell-In), but also on the
volume sold out to consumers (Sell-Out).The mission of Sales and Marketing department “To
reach our target consumers in the most efficient and effective way through our strong
“distribution channels in every market place where we do business.”
The Marketing Department and the Production Department activities are highly correlated.
According to the needs of the Marketing Department, Production Department carries out the
CSD manufacturing. The marketing Department forecasts the sales volume of the different brand
soft drink for the coming business year and based on this; prepare a marketing plan known as the
Sales Operational Plan (SOP).
According to the Plan, Marketing Department communicates the brand wise sales target for each
month to the Production Department. Based on the SOP, Production Department sets its
production schedule. The inventories of CSD are also evaluated at this stage to find out the
actual output to be produced.
Partex Beverage has a well-defined mission for the selling and marketing of products, which to
reach our target consumers in the most efficient and effective way through our strong distribution
channels in every market place where we do business.
A well-organized trade marketing team is working continuously to make this .mission

successful; furthermore the whole country has been divided into three regions to perform the
selling activities efficiently.
12
Distribution Process:
 Regional Go-down: There are three regional go-downs throughout the country to fill
every regional demand just at the time of need and to overcome various uncertainties
related to physical distribution of products, every regional go-down is directly controlled
by separate Regional Manager to face the regional physical distribution challenge.
 Distribution Warehouse: All distributors have their own warehouse, where RC can be
kept safely while not degrading its product quality. Distributors buy RC from the
Company and from that point ownership and all responsibilities of the products go under
the distributors.
 Opening Stock at Distributors Office: Apart from the warehouse every distributor also
maintains another stock at their office. This stock is for maintaining any change in market
demand instantly. Dealers sometimes sell RC through their counters to face special
situation.
 Delivery Van: All the delivery vans are owned by the dealers to assure the supply of RC
on the door of wholesalers and retailers just according to their demand. There are two
types of delivery vans. One is Pickup van and another is Rickshaw van.
 Retailers: Retailers are at the end of the physical distribution system of cigarette Selling
products directly to the consumer.
 Distributors: The financial standing of the distributors, their reputation in the local
region, and prior related business experience are some of the key criteria examined when
a distributor is selected. The Head of sales, Regional manager and MD of the Company
make a decision check the evaluation forms and field recommendations. After a
distributor is selected they issue a ‘letter of intent’ that specifies certain requirements of
the company. After these requirements are satisfactorily fulfilled, a formal -‘letter of
appointment’ is issued.
Distributors buy fixed volumes of RC from the Company at a set price and resell to the retailers.
The company closely monitors their activities and performance and ensures them to operate in
the market at the highest standard. Distributors follow a work routine set by the company,
generating paper work, and reports as required. Distributors are assigned a certain geographic
region within which they sell their RC. Different routes are assigned within the region that helps
to sell their stock.
13
Distribution process of Partex Beverages
14
The External Environment of Partex Beverages
Sociocultural factors- As Partex beverage Bangladesh is operating in a Muslim dominant

country, it produces non-alcoholic and Halal beverages. In Bangladesh the consumers looking
for a Halal and locally produced soft drinks prefer soft drinks produced by Partex beverages to
other soft drinks.
Demographic Factors- Partex beverages operates all over Bangladesh keeping in mind the
population size of the area, Geographic distribution of people, Ethnic mix, Income distribution,
Average age, Number of people in the family. It has designed its product line according to the
demography of Bangladesh. For instance, RC a product of Partex beverage has a product line
which includes a PET bottle of 250 ml to 2 liter bottle and also flavors for the consumers who
prefer other flavors than cola.
Economic Factors- Partex beverages launch its product keeping in observance the consumers’
affordability and preferences of price. Their Finance department monitors the marketplace, and
provides suggestions to keep on going the company well in every situation. Moreover, to be up
to date with the current consumer needs, it runs several surveys so that the company can get the
feedback of their product prices directly from the consumers.
Technological Factors- the R&D department of Partex beverages researches to develop the
technological environment of the company. The company always appreciates and encourages
new technologies to improve the standard of their products.
Political and legal factors- Partex beverage hires highly qualified legal officials to deal with the
legal issues. It strictly abides by the rules of the country and avoids the risks of political or legal
complications.
15
SWOT Analysis
Strength
 Strong brand
 Renowned brand license
 Strong distribution channel
 Huge investment
 Technically equipped
 Different types of product
 Nice packaging
 Strong relation with the government
Weakness
 Available in only remote area
 Production management is bad
 Poor communication
 Invest on a particular line
 Time mismanagement
 Lack of man power
Opportunities
 Market is getting big
 Very few big competitor
 Brand name
 Proper distribution
 Making available the product
 Good relation with the government
 Recycling
16
Threats
 Open market
 New competitor
 The taste of product
 Change of government
 Bad management
Porters' Five Force Model
The five forces are very important, because this helps to find out and nurture about the strength
of the company. It is tool for understand the situation and take corrective decision according to
the situation. We will understand our current competitive situation and also what to do next as
well. The five forces are-
 Suppliers’ Strength
 Buyers’ strength
 Competitive rivalry
 Threats of substitute
 Threats of new entrants
Suppliers’ Strength
The suppliers are very crucial part on manufacturing of a product. We have already known that,
they have a very strong distribution channel. So they have a very strong side in this force. The
strength of suppliers in this case is high to moderate. As there are many other beverage
companies are existing in the market, and the demand of raw materials are increasing day by day.
So the suppliers bargaining power is high to moderate.
Buyers’ strength
We have to think about the buyer perspective. We cannot go beyond the buyer’s perception. We
have to find out what the buyer wants for them. The buyer has the special power to dictate over
the market. The buyer set the price, and this is the strength of the buyers. As beverage industry is
flourishing in our country and there are many international brand of beverage available in the
17
market so PBL has no power over setting the price or ruling over the market. For that reason,
buyers have a higher power over the PBL’s supply decisions.
Competitive rivalry
If the other competitors provide the same product and same service, it gets little bit hard to stay
in the market. In this situation the buyer will not interest to come to my product, if I don’t give
them something special. Partex is not a very good position right now. They cannot provide a very
good product or service to the customer. That’s why they are having less advantage in the market
and the other beverage companies or the competitive rivalry risks are high.
Threats of new entrants
With the increasing demand of beverages, the industries of soft drinks are getting more favorable
place to invest in. So, there is a high to moderate threats of new entrants in the market for Partex
beverage limited. As, PBL has not yet reached its goal to be the first choice of the people of at
least Bangladesh, and still struggling to compete with the international brands the threats of new
entrants is high.
Threats of substitutes
PBL produces both mineral water which is one of the top most mineral waters produced in
Bangladesh, MUM, and in addition to that they have a set of soft drinks of different flavors. This
says, the threat of other substitutes risking its market position is low. Because, if the buyers get
attracted to the other substitutes of PBL’s product, it might not be any soft drinks anymore, there
can be other substitutes available in the market as Cold coffee, Milk shakes, Tea etc. But it may
not conflict with their soft drink market, as these cannot be available at such a cheaper rate as the
beverages. So, the threat of substitutes is low for Partex Beverage.
18
PESTLE
Political Environment
Partex is one of the leading companies in Bangladesh. Partex didn’t enter in this country business
without having a research about its political environment. They have to think about everything
every single factor of political environment. The political environment is not just related with
politics it is also closely related with legal environment as well. Politics can be defined in terms
of competing view about the kind of society we want to live and decisions regarding the rules
and regulation which are necessary to create and sustain such a good society. The success of
Partex didn’t come over night; there is huge research and hard work.
 The management of the company carefully analyzes the rules and regulation of our
country whether its corporate policies will fit or not.
 Partex had to consider the policy of government, that they are conducting their relation
with other countries.
 The management had greatly considered the political factors that might be encounter
issue for the managers.
Partex has never gone with the plan of monopoly. It is also against the business rules. It also
breaks the political environment because if there stay one company in the market then there will
be no competition and the one company will control with the autocracy. So Partex always tries to
stay in competitive and encourage the government for a perfect market. There are many product
in outer world, the government can make stay order on that products to reserve the country
production and the Partex is a local company so it will be very bad for this company.
There are always many good sides and bad side of the democracy in political environment, as a
company Partex has to also face those challenges such as
 Political Instability is one of the worst sides of democracy, for this Partex had count
many loss for example the chaos of 2013, in that time Partex couldn’t transport their
product in time and their net sales also went down.
 While Partex is very popular for obeying the rules so the government can perform their
function and make effective laws.
19
 Sometimes some rule becomes a bone in throat by the government, and there might not
any time for decision and this make a great disaster.
 The democratic government always goes for the interest of the company in this way
Partex can find some good way for business.
 There is a huge chance of corruption in democratic countries and Partex never supports
the corruption.
 When a big company like Partex is going to do business they always choose strong
economy and the strong economy lie in the democratic government.
So, in the end I want to just wrap up the whole thing that the political environment of Partex is
very good but still there are some pretty sensitive issue they have to deal like they are not pretty
aware of the government change and the local government system, when they want to spread
their business they must go to local and they need to have good deal with the local political
environment. The political environment is just under control by Partex but it should carry out for
their vast success.
Economic
Partex is one of the oldest companies in Bangladesh. So as they grew older they become expert
about the economic environment of our country. They have the experience to cope up with the
economic situation of our country. The economic environment change every day, the expertise’s
know about the change, the Partex got such expertise who are helping them about the change.
Some of the factors of economic environment cause a great deal for any company. Partex is not
different either in this side as well.
Inflation Rate:
The Inflation rate in our country is very high. It’s happened almost every day in our economy.
Our government cannot control the inflation rate. So the Partex needs to be aware about the
inflation. They are going through the situation very handsomely. They always cope up with the
situation by increasing and decreasing the price of product according to the situation.
20
Purchase Power
The purchase ability of the customer is one of the most important elements for any company.
The Partex always keeps this issue on their mind while they are fixing the price. The Partex
always tries to provide the best quality product to the customer. So, to maintain the quality they
have to use high quality material so the price of the product larger than other beverages. But still
they try to be in the range of the normal customer.
Economic Downsizing
The economy of any country can go down at any time so every company should ready for the
chaos. Partex is always staying alert about the economic change. The company does their
production process according to the economic situation.
Unemployment
Unemployment problem is very dangerous problem for any economy and also for the business
situated in that economy. Partex always cares about the employment situation of our country.
They create new project and new promotion for the unemployed people.
Local Economic Position

Local economy means the business policy, the local demand for the product destination cost
from the factory etc. The current economic situation of every market place is pretty much
important for any company. Partex also analyzes the local economic situation and creates their
business according the economy of that place.
Monetary Policy
Monetary policy is the process by which the monetary authority of a country controls the supply
of money, often targeting a rate of interest for the purpose of promoting economic growth and
stability. The official goals usually include relatively stable prices and low unemployment.
Monetary economics provides insight into how to craft optimal monetary policy. Monetary
policy is referred to as either being expansionary contradictory, where an expansionary policy
increases the total supply of money in the economy more rapidly than usual and contradictory
21
policy expands the money supply more slowly than usual or even shrinks it. Partex always try to
follow the monetary rules of Bangladesh.
Now a day’s business market is such a dynamic place where it is hard to find something constant
or stable. Business organizations and companies now have to focus a lot on their social
responsibilities along with the profitability. In the increasingly conscience-focused market places
of the 21st century, the demand for more ethical business processes and actions is increasing day
by day. Partex chalked out CSR policies that ensure business operations that follow ethical
standards. They just do not strive for making money but do business in keeping the 3 Ps in mind
-people, planet and profit.
Partex has started their company with a view to serve or to help the society at their best in the
corporate aspect. Their mission statement says, “We shall remain socially committed ethical
company.” As a fact it indicates that what they say or believe they actually do it in real. They
already set themselves as a market leader in a socially responsible and ethical manner. They are
engaged with lots of social activities but basically they are targeting children’s and youth. As
their future leader of our country and without a healthy and strong youth it is impossible to create
a develop country. They also engaged in different types of activity to protect nature as well.
Descriptive discussion about the social, ethical and CSR activities of Partex is given below:
Helping autistic children

Partex Food & Beverage is also organizing some CSR activities is our country like helping the
autistic children as well as the special children. Praising the new artist, and also awarded talented
painters.
To encourage the young arties in their endeavor, the company has started Partex Young Painters
Art Competition in 2008 and organized it by the company. Over this period 3500 paintings, 500
unique art works including 60 awarded winning paintings were scrutinized and displayed
through exhibition.
Aid in Natural calamities

Partex Food & Beverage always try to help the people who suffered from natural calamities. On
that note they contribute to the infrastructure restoration of the cyclone Sidr affected area of
22
MajherChor, Partex Food & Beverage had provided free Beverage. Partex also contributed TK.
10 lakhs in the government fund in 2007 for flood affected victims to help rebuild lives.
Inspiring the young Architects

Partex is inspiring the young architects and giving them an opportunity to stabilize their career
since 2007.To promote and inspire the young Architects, the company has been organizing
biennial competition for Young architects, since 2007 .The second event was during 2008.
Socio Cultural Development

Partex has always tries to be engage in the socio cultural development. Partex has been engaged
in lots of socio culture activities and also sponsored a lot of events. Besides in 2006, the
company has sponsored a good number of socio culture development programs organized by
different social organizations.
Technological
Partex has always been the most technology oriented paint company of the country. It has the
most modern state-of-the-art production facilities installed in their factory. Its Research and
Development (R&D) and Quality Control (QC) departments are equipped with the best
technologies in this country. Such technology driven strategy will definitely assist the future
business growth of the company. They have some successful products where they put different
technology to make them successful.
Legal
Bangladesh seceded from Pakistan in December 1971. Constitution was adopted on 4 November
1972. After the emergence of Bangladesh in 1971, a rigid constitution has been adopted which
came into force on 16 December 1972. The basic law of Bangladesh is the constitution of the
People's Republic of Bangladesh, 1972 as amended from time to time. Till 2010, fifteen
amendments to the constitution have been made. All laws of the country are subordinate laws
made by the elected Sangsad (the legislature consists of 350 members) conforming to the tenets
of the Constitution. The laws enacted by the legislature and now in operation regulate almost all
spheres of life.
23
Partex is one of the oldest names in the paint industry, yet, it is one of the most technologically
advanced companies in the country. Partex started its operation in Bangladesh since
independence. Over the past few decades, Partex has evolved and transformed itself in becoming
the leading paint solution provider in the country with a diversified product range that caters to
all your painting needs. From the history it is clearly evitable that it is a foreign company
operating in Bangladesh. So that means it is a foreign direct investment. It’s also a public listed
company. So below is discussed the business legal issues for a publicly listed foreign company.
Permission will be required from the BOI in order to open up a Branch Office and shall submit
application in the prescribed form along with the following documents:
 Prescribed Application From, duly filled in, signed and stamped;

 Memorandum of Association (MOA) and Articles of Association (AOA) of the Principal
Company;
 Certificate of Incorporation;
 Name and Nationalities of the Directors/Promoters of the Principal Company;
 Board Resolution to open a Branch/Liaison/Representative Office in Bangladesh;
 Audited Accounts of the last financial year;
 Proposed organogram of the office;
 List of activities of the proposed office
All papers/documents must be attested by the Bangladesh Embassy/High Commission of the

country of origin, Embassy/High Commission of the applicant's country of origin or Apex
Chamber of Commerce of the country of origin. Afterwards, permission is sought from
Bangladesh Bank for opening branch/liaison Office in Bangladesh by foreign entities under
Section 18B of the Foreign Exchange Regulation Act, 1947.
Environment
The environmental issues are very sensitive for a country like us. We are in a very critical
situation. We have to try harder to save our planet. Partex is always try to save the environment.
They have plan their industry, away from the populated area and built a very healthy industry for
the environment. They have a great factory with natural resources. So they are very careful about
the environment.
24
The product they are making is also very environment friendly. They make the product under
very strict observation. They make sure that, their product must not harm the environment. They
are making beverage item. So they are already careful about the product.
Threats of substitute
There are many substitute for the product and it can become very powerful in the market. When
the substitutes are getting more available in the market, it get a little bit costly. For example if the
juice has become more available than the Partex drinks, it create problem.
Today the company is no longer competing in national levels and even if the company hasn’t
entered in other countries, the different companies are already in national territory. The company
is operating with ethics and culture and they now have to customize those in order to align with
the other international companies. Partex Beverage LTD. has different product categories as it
have been mentioned already and the impacts of globalization are different based on the product
line and categories. This paper will help the readers to understand the impact individually and
collectively.
First of all the product category of drinking water where the company is
competing against lots of national and international brands such as SPA, Aquafina, Duncan,
Fresh etc. ‘The MUM’ which is the company’s flank to fight against these international brands is
currently losing most of the market shares. It’s been a long time since the company rebrands
itself and made major efforts to capture market value. Currently the brand value is very low
comparing to other brands. Our online survey reflects that 35% of people are choosing MUM
over other brands where 30 people were chosen using discrete random variable of probabilistic
method. The SPSS and social media were used to conduct this Pilot Survey.
25
2
SPA 9
0
DRINKING WATER BRANDS
7.3
Aquafina 7.6
7.7
13.5
Duncan 13.6
13.4
10.6
MUM 10.4
10.5
0 2 4 6 8 10 12 14 16
MUM Duncan Aquafina SPA

Quality 10.6 13.5 7.3 2
Availability 10.4 13.6 7.6 9
preferability 10.5 13.4 7.7 0
CUSTOMER PREFERENCE OF BEVERAGE ITEMS (CATEGORY: DRINKING WATER)
Quality Availability preferability
Condition of market acceptance
The chart shows the condition of market acceptance for the product MUM of Partex Beverage
Ltd. This is clear from the bar chart that the people are more willing to purchase international
brands such as Aquafina and Duncan instead of local brands such as MUM and SPA. So it can
be said that the globalization impact on this product line is significantly high and at alarming
level.
Secondly, in soft drinks the company is facing enormous pressure and most of
them such as Upper ten, Big Boss, RC Lemon, RC Cola, RC Orange etc. are not capable of
competing other international brands such as Coca-Cola, Pepsi, Fanta, Sprite, Merinda, Thumbs
Up etc. The globalization impact has made the company to reach at distinct level of the country
and attract lower income level people. The online survey shows a very harsh truth where RC
Cola have less than 5% acceptance among participants. Where the other companies such as Pepsi
has 45% of acceptance and Coca-Cola has 50%. So it’s very clear that the company Partex and
26
Beverage is currently at a very vulnerable position with a very low market share and brand
equity.
The Cause and Effect Analysis
Cause Effect Cause Effect

 Downsizing in 2007 Most of the  No third Not specialized in
and 2010 employees shift party vendor soft drinks and
their position and cola and the
joined new acceptability
companies. among consumers
are significantly
low. (according to
our Online survey
it’s only 35%)
 Divisional The company  Political Political
Workforce and less launched “Big Issues and preferance and
team based Boss” and it integrated introducing
workforce completely filed to company. different regultory
compete against acts disturbs the
other energy organizational
drinks. pace.
 Lack of STP The company fail  Don’t The government
Analysis to target the right participate in don’t have
audience and the government preference for this
brand value contract. company and lack
decreased. of exposure as
well.
 Implementation of The company  No enriched Lacking behinds
STP analysis failed to position R&D Sector to provide new
itself among right qualities and
audience. upgrade their
27
product.
 Lack of Proper The company  Changing The company is

distribution chanel value proposition attitude of failing to cope up
and distribution is Consumers with changing
not proportional. environment and
adapt new
environment.
 Unsuitable Policies The company fails  No Brand Lack of
to adopt new Revitalizatio marketing tools
branding n (Revamp) usage is impacting
strategies and on the brand
start new flank value.
within short
period of time.
 Disclosure of The close  Low Taxes The company is
Information competitives get on failing to compete
the benefits of International with large number
leaked Brands and of competitors
information. no franchisee
agreement
28
The Need Gap Analysis
Need Gap Recommendation

The customers have health The current Cola and soft The company should stretch
concerns drink companies are not line extension and add natural
concern. juice in their product line
There is a need of Companies are providing it Partex Star Group can go for
augmented food products. with very high price and with Niche in individual sectors
high profit margin. according to their preference.
MUM still has acceptability MUM is not doing any The Partex Beverage should
but the market share is very promotional campaign re-launch MUM
low anymore
The company needs The company has less sales Practice Innovation and
Exposure and platform to promotion and campaign introduce flank to compete in
compete wih mid and large because of proper markjeting the market.
companies plan.
Reshape and downsize Proper Human Resource Using HRM tools such as the
Management and functional job rotation, job engagement
activities. and job enlargement the
Downsizing is much flexible
and useful.
29
Recommendation
 The company is currently positioning in “Cash Cow” and the proper

recommendation is to divert their business.
 If the company stick to it’s current decision to continue this procedures their
products must be improved and the brand revitalization is mandatory.
 The 3V model should be improvised and the value segmentation, targeting and
positioning strategy must be enriched and balanced in order to cope up with new
environment.
 Some international brands such as Pepsico, Globe Int., Merico etc. have franchisee
agreement which is going to be expired in a period of time and the company should
undertake new arrangements to make new agreements with these companies.
 Partex Star Group (Danish) should operate more strategically alligned with Partex
Beverage and management and HRM activities should be more functional
 The company must take more Governmnet Services which will lead the Govt. to
ontrol the growth of international brand and give priority to the national brands.
 The real strength of the company is in their distribution network which must be
used by signing into franchisee agreement with international companies.
 There is no alternative of improving the R&D section and the company must
attached the marketing demand and requirements and reserch to acquire effeciency
altogether.
30
Appendix
Online Survey questionnaire
1) Will you choose RC Cola/ RC Lemon/ RC Orange/ Big Boss as a close substitute of your
preferred Soft Drinks?
a) Strongly Agree b) Agree c) Neutral d) Strongly Disagree e) Disagree
2) Do you think MUM is a substitute of your preferred Drinking water Brand?
a) Strongly Agree b) Agree c) Neutral d) Strongly Disagree e) Disagree
3) How much Acceptable the product MUM is according to Quality? (Ignore this question if you
haven’t experienced the Product)
a) Below 10 b) below 15 c) below 20 d) below 25 e) below 30
[Here >10 represents Very Poor, >20 represents Poor, >25 represents Average. >30 represents
Good]
4) As a city dwellers do you believe that the low pricing of RC Soft drinks give you any
benefits?
a) YES b) NO
5) Do you think PARETX Beverage is compatible enough to compete against International Food
and Beverage brands?
Interview Questionnaires (Open Ended)

1) Do you think that Partex Beverage should do a rebranding and start new Flank to compete
with the International Brands?
2) What is the impact of external factors on your company and how the Government can help
you to mitigate it?
3) What kind of agreement between Partex Danish Star and Partex Beverage have and how both
of them preserve their rights?
31
References
Wikipediaorg. (2015). Wikipediaorg. Retrieved 27 July, 2015, from Partexgroupcom. (2015).

Partexgroupcom. Retrieved 27 July, 2015, from http://www.partexgroup.com/about_us.html
Partexbeverage. (2015). Partexbeveragecom. Retrieved 27 July, 2015, from

http://www.partexbeverage.com/
Assignmentpointcom. (2015). Assignmentpointcom. Retrieved 27 July, 2015, from

http://www.assignmentpoint.com/business/marketing-business/report-on-soft-drinks-maker-
partex-beverage-limited.html
Adnan Ebna Noor. (2015) Senior Executive Export Division. Partex Beverage. Retrieved 25
July, 2015. Dhaka
Towkir Islam Topu. (2015) Senior Executive Export Division. Partex Beverage. Retrieved 25
July, 2015. Dhaka
Surveymonkeycom. (2015). Surveymonkeycom. Retrieved 27 July, 2015, from

https://www.surveymonkey.com/
32

Term-Paper-Bus203-PARTEX-Beverage (Done)

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Term-Paper-Bus203-PARTEX-Beverage (Done)

Hochgeladen von

Copyright:

Verfügbare Formate

Internal External Environment Analysis of PARTEX Beverage

INTERNAL and EXTERNAL ENVIRONMENT ANALYSIS

MS. ASHEKA MAHBOOB

SAYEED HASSAN MAHDEE (13304138)

TAHMID TAWSIF NUR (13304085)

AMINA FARHAD RIFA (14104119)

SHAMSUN NAHAR (13204020)

AHMED OMAR NAIEEM (13104196)

July 28, 2015

Ms. Asheka Mahboob

BRAC Business School

Subject: Letter of Transmittal.

Sayeed Hassan Mahdee (13304138) Tahmid Tawsif Nur (13304085)

Amina Farhad Rifa (14104119) Shamsun Nahar (13204020)

Ahmed Omar Naieem (13104196)

Partex Group ................................................................................................................................... 6

Partex Beverage Limited (PBL)...................................................................................................... 6

Partex Beverage Ltd.: Core functions ........................................................................................... 11

Focus on Sales and Marketing ...................................................................................................... 12

Distribution Process: ..................................................................................................................... 13

The External Environment of Partex Beverages ........................................................................... 15

Buyers’ strength ............................................................................................................................ 17

Competitive rivalry ....................................................................................................................... 18

Political Environment ................................................................................................................... 19

Inflation Rate: ............................................................................................................................... 20

Purchase Power ............................................................................................................................. 21

Economic Downsizing .................................................................................................................. 21

Local Economic Position .............................................................................................................. 21

Monetary Policy ............................................................................................................................ 21

Helping autistic children ............................................................................................................... 22

Aid in Natural calamities .............................................................................................................. 22

Inspiring the young Architects ...................................................................................................... 23

Socio Cultural Development ......................................................................................................... 23

Interview Questionnaires (Open Ended) ....................................................................................... 31

Partex Beverage Limited (PBL)

Name Position in the company

The chart given below clears the whole process.

Marketing HR Finance Vice Chairman

Organizational structure of PBL

Culture of the organization

Partex Beverage fosters creativity and entrepreneurship by creating a stimulating work

Partex Beverage Ltd.: Core functions

 Support brand portfolio / new product launch.

Backward vertical integration:

Focus on Sales and Marketing

 Create an efficient entry barrier against local competition.

A well-organized trade marketing team is working continuously to make this .mission

Distribution process of Partex Beverages

The External Environment of Partex Beverages

Sociocultural factors- As Partex beverage Bangladesh is operating in a Muslim dominant

Porters' Five Force Model

Threats of new entrants

Local Economic Position

Helping autistic children

Aid in Natural calamities

Inspiring the young Architects

Socio Cultural Development

 Prescribed Application From, duly filled in, signed and stamped;

All papers/documents must be attested by the Bangladesh Embassy/High Commission of the

MUM Duncan Aquafina SPA

CUSTOMER PREFERENCE OF BEVERAGE ITEMS (CATEGORY: DRINKING WATER)

Quality Availability preferability