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Term Project on PRAN Group

Course: MGT 489
Section: 15
Submitted to: Dr. Md. Shahedul Alam
Senior Lecturer, Dept. of Management

PREPARED BY:
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LETTER OF TRANSMITTAL

17th December, 2017

Dr. Md. Shahedul Alam

Assistant Professor

Department of Management

School of Business and Economic

North South University.

Subject: Submission of Term Project on PRAN Group.”

Dear Sir,

With due respect and humble submission we, the group members of Team 6 want to state that we
have successfully completed the research paper on PRAN Group of MGT 489 Strategic
Management. This research was very interesting to conduct and we believe that this research
helped us a lot to understand how strategic management theory is applied in the real world. It
also increased our knowledge about Bangladeshi market of FMCG product and Agro Based
Food product. We are expecting that the project will be satisfied enough to cover all the
requirements.

We tried our best to complete the report with utmost care and to maintain the quality. But we
faced some constraint in making this report such as lack of primary and secondary data. Once
again we are thanking you for providing us such an option to increase our knowledge through
this report.

Sincerely,

Shahruck Hossain Shuvrow

On behalf of Group 6
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Executive Summery

The pioneer in fruits and vegetable processing is PRAN in Bangladesh. Here in this document

we have provided the team work on PRAN food industry. The history, development and growth

of the company are analyzed briefly. The internal and external environment of the company is

totally different. Internally the people working do their best to make every project successful.

PRAN has now become a giant in this sector. They are not confined within BD anymore. The

brand value and experience are the biggest strength for them. Their mission is to generate

employment and earn dignity and self-respect for their compatriots through profitable

enterprises. With a vision to improve livelihood they are now utilizing the strengths and

opportunities wisely. This company really lack customer care services and product life cycle.

They are now launching products as export quality in the country but their remains little doubt in

the ingredients they use. They have strong distribution channel which generates huge profit in

short time. Porter’s five forces are analyzed. The financial performance of the company is

provided for consecutive four years. On the contrary the strategic plan for next 5 years is also

provided in this document. The reader is going to gain knowledge about the technological and

economic strategies to follow, how to implement them practically, and recommendation for

further approaches.
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Table of Contents

Part A Research and Analysis

History, Development and growth of the 6
company
Internal Environment 7
Industry Analysis 8
Porter’s five forces model 8
Industry life cycle analysis 10
Micro Environment 11
Macro Environment 12
SWOT Analysis 13
Definition of the Business 14
Distinctive Competencies of PRAN 15
Most valuable competitive advantage 16
Financial situation of past 4 years 17
(2013-2016)
Business Model 20
Part B Strategic Plan for 2019-2024
Recommendation based on SWOT 21
Recommendation based on financial 22
analysis
Recommendation based on Industry 23
analysis
Corporate Level Plan for PRAN for the 25
next 5 Years
Business Level Plan for PRAN for the 28
next 5 Years
Functional Level Plan for PRAN for the 29
next 5 Years
Technological Plan for PRAN for the 31
next 5 Years
Part C Implementation of Strategic Plan
Company’s governance strategy 33
Strategic control 34
Organizational Culture 34
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Global Strategies 36
Ethical Value Proposition 37
Bonus Point 39
References 40
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Part A (Research and Analysis)

History, Development and growth of the company
PRAN is the pioneer in Bangladesh to be required in contract developing and secures rough

material clearly from the agriculturists and strategies through best in class contraption at their

few preparing plants into neatly stuffed food and drinks things. The brand has developed itself in

each class of sustenance and refreshment industry and can help a thing keep running from Juices,

Carbonated Drinks, Confectionery, Snacks, and Spices to even Dairy things. PRAN expanded its

activity into PVC classification in 1996 and in plastic part in 2003. PRAN had a dream of

making an immense request all-around of those rural items delivered by local ranchers. The key

was to process the agro items and increment timeframe of realistic usability along these lines.

The creation line goals are association had present day parks of 500,000 square meters, which is

totally equipped with best in class mixture molding machines, ejection with Conversion point of

confinement of in excess of 20,000 tons for consistently. RFL at show utilizes 1600 shape

through 500 machines, 04 apparel and 250 removal machines having own gadget workplaces.

There are 12,000 specialists committed to giving revamp and quality plastics and PVC things.

The growth rate of PRAN is now in high rate. PRAN-RFL Group, the market pioneer in the

handled sustenance and plastic portions, has now set its sights on turning into an imposing player

in the abroad markets as well. To satisfy the aspiration, the gathering has intended to extend

substantially quicker than any time in recent memory before. Dozens of new items - from

solidified nourishments to desserts, poultry, nuts, toys, long-life cake and plastic - will be added

to the item crate in the following one year. They have an objective to develop our fare by no less

than 30-40 percent consistently.

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Internal Environment

A company’s internal environment can be understood well by knowing about the internal

resources and internal capabilities of that company. So the internal resources and capabilities of

PRAN Company are described below:

Internal resources and capabilities:

Internal resources are very important to achieve a goal. Those resources help to make the work

easy to faster. There are two types of internal resources: Tangible and Intangible resources.

Tangible resources are those which we can touch and see. PRAN’s tangible resources are

machineries, vehicles, offices, properties etc. They have machines for packaging, expulsion, food

processor etc. They have around 17 offices in our country.

Intangible resources are those which we can’t touch. PRAN hires experienced and skilled

workers. So the workers of PRAN are very capable than others. There are almost 28000 current,

8000 sales, 2000 corporate workers in PRAN. The brand value of PRAN is high and it has copy

right of its logo, brand name. It is one of the largest foods and beverages companies of

Bangladesh and it is exporting almost 138 countries around the world.

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Industry Analysis

PRAN competes with foundry, plastic, food and beverage, property industries. But for this

report, we are working on food and beverage of PRAN. So PRAN is competing in foods and

beverage industry. PRAN’s biggest competitors are Akij, Square, BD food, ACI etc. The

competitors are also doing well in the market. There are needs of the customers for foods and

beverages in the market. People are becoming addicted to buy processed foods to save time. So

the industry of food and beverages are rising day by day.

Porter’s five forces model

Fig: Porter’s five forces

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Supplier power:

The power of the suppliers is high. Because there are lots of food and beverages companies in

the market who can buy products from them. So it is necessary for PRAN to keep good

relationship with the suppliers.

Customer power:

The bargaining power of the buyers is also high. There are lots of foods and beverages

companies in the market to fulfill the need of the customers so PRAN can’t make set prices as

per their wish. They have to analyze the market and understand the effect of the competitors on

the customers.

Threat of substitution:

The foods and beverages industry is growing day by day. The technology is developing as well.

So the threat of substitution is high. In the market, PRAN is selling mango juice and if another

company starts selling banana juice then it will be the threat of substitution. Any company can

easily make the threat of substitution in the market for PRAN.

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Degree of competition:

PRAN’s biggest competitors are Akij, Square, BD food, ACI etc. The competitors are also doing

well in the market. So the degree of competition is also high.

Threat of new entrants:

The threat of new entrants is low. One has to invest very high start a company within food and

beverages industry. The machineries, equipment, raw materials etc. are very costly. There

already many competitors in the market so if now any new company enters into the market then

the probability of success is very poor for them.

Industry life cycle analysis

Since 2000, the food and beverage industry is growing rapidly in Bangladesh. There is potential

and stable for this industry. Around 19%of the industrial manufacturing productions are done by

the food and beverage industry of Bangladesh. 2.45% labors are working in this industry directly

or indirectly. Not only in Bangladesh, the food and beverage industry is impacting on the global

market as well. Bangladesh is exporting foods and beverages in more than 90 countries around

the world.
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Fig: Annual growth of food and beverages industry

We can understand that the food industry is growing in our country every year. Despite of huge

competition and threats in this industry it is growing.

Micro Environment

The Microenvironment incorporates every one of the components near the organization that

impact emphatically or adversely and its capacity to make an incentive for and association with

the shoppers. The Microenvironment of PRAN sustenance’s incorporate five segments. The first
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is the associations inside condition— its few divisions and administration levels as it influences

advertising administration's basic leadership. The second part incorporates the advertising

channel firms that coordinate to make esteem: the providers and showcasing go-betweens

(brokers, physical dispersion firms, promoting administration offices, budgetary mediators). The

third part comprises of the five sorts of business sectors in which the association can offer: the

buyer, maker, affiliate, government, and global markets. The fourth segment comprises of the

contenders confronting the association like ACME. The fifth part comprises of all the open's that

have a genuine or then again potential enthusiasm for or effect on the association's capacity to

accomplish its targets: money related, media, government, resident activity, and nearby, general,

and inner publics. So the microenvironment of PRAN nourishments comprises of six powers

near the organization that influence its capacity to serve its clients

Macro Environment

The Company and the greater part of alternate performers work in a bigger large scale condition

of powers that shape openings and posture dangers to the organization. The large scale condition

is normally divided for the reasons of examination. This investigation generally alluded to as a

PESTLE examination. There are fundamental six ecological elements that influencing PRAN

sustenance’s. These elements are political, prudent, innovative, ecological, lawful and social.

Every one of these variables in a roundabout way influence the organization yet the organization

can't control them.

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SWOT Analysis

The examination concentrates its light on the four distinct elements of a specific business firm -

Strength, Weakness, Opportunity and Threat. These four components, by the by, predicts the

future activity of a business concern.

Strength:

There are a loads of quality which are has a place with the Pran nourishments. Those are –

PRAN is an outstanding and built up organization. Great bundling and valuing procedure, they

have a decent administration, adroit and prepared worker. Item quality of nearby item is

worldwide standard. Consumer loyalty: Good Quality Products fitting in with neighborhood

tastes, wellbeing and clean guidelines. Moderate cost inside the compass of target purchasers.

What's more, above all else they have a decent limited time movement. In - house publicizing

organization gives full promoting help. Significant accentuation is on TV promotions as this is

the most prevalent Media accessible. Half of the yearly spending plan is committed to TV. New

advertisements for Mango Juice Bottle, Aseptic Juice, Tea Radio, Press, Cinema, POS, Outdoor

promotions (Billboards, Wall Painting) additionally utilized as a part of advancement Outdoor

scope (PRAN Branding) all finished Bangladesh.

Weakness:

As PRAN is a neighborhood mark so there are two normal shortcomings affecting them. Those

are - Political peril likewise impacts and Lack of current preparing offices. Likewise there is an

absence of low maintenance laborer.

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Opportunity:

As there is an absence of good nearby brand so they have a chance to have the capacity to wind

up the no-1 mark in Bangladesh. Additionally extend the business in different nations of the

world, grow the business in other sight and above all PRAN has a chance to enhance the

innovation.

Threat:

Rivalries with other such organizations like ACME, Kazi nourishment businesses and any sort of

organization who create such sustenance’s like PRAN deliver. Likewise there are a few

vulnerabilities, for example, social, political, efficient vulnerability dangers.

Definition of the Business

Defining business includes Who, What and How satisfaction is faced by PRAN Food Ltd. PRAN

has taken initiative to meet the demand of almost all levels of customer. They have different

foods and nutrition of different price group. All-time is category in which all low budget tong

shop items are provided. They have a tagline “Olpo khide, beshi shomadhan”. They also have

beverage items. And snacks, chips, frozen foods, dairy products etc. they are meeting the

demand of all food and nutrition of consumers.

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Different levels of customers have different needs. A segment wants low price items. On the

contrary, another segment wants quality food. So, PRAN meets up all such needs. They provide

quality food with lucrative and protective packaging. People find their food items safe to have

instead of local non brand items available in shops. As the price of their items is very affordable

people are satisfied with them. I personally chose their product even if I have to pay a little more.

The taste of their food and beverage items is also very appreciable to consumers. Their might

have some issues or rumors about their beverage items but in the perspective of our country other

competitors are doing the same. So, they are kind of bound to sustain in the market. Finally, we

should realize that PRAN is meeting up the demand of all categories of food and beverage items

in different price levels. And the consumer needs are met up ensuring a satisfactory level.

Distinctive Competencies of PRAN

A distinctive competency is a capability or proficiency unique to an organization which enables

the organization to operate somehow superior to its competitors and provide a unique value

proposition in the functional level of the business. In easy words which makes a company unique

or different from its competitor is distinctive competencies. Indicator of distinctive

competencies’ success is better customer service and brand loyalty. The distinctive competencies

of PRAN which made the organization unique are given below:

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 Largest and strongest distribution channel

 Extensive promotion throughout the year

 Well skilled labor force

 Exceptionally professional sales force

 Won national export trophies for 13 consecutive years

Most valuable competitive advantage

The most valuable factor of PRAN Group which is mainly responsible for PRAN’s competitive

advantage is that PRAN Group has the largest and strongest distribution channel. This large

and strong channel helps PRAN to maintain the efficiency, quality and customer responsiveness

which ultimately result is superior competitive advantage. Their sales representative and

distributing channel is across every Zila of Bangladesh. In the extreme rural area where

transportation system is not well developed, there consumers could also find PRAN’s product.

This has happened because serving the rural customer and serving their product to every corner

of the country is PRAN’s one of the main objective from the start of the organization which is

reflected by full meaning of the name PRAN (Programme for Rural Advancement Nationally).
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Financial situation of past 4 years (2013-2016)

Particulars 2016 2015 2014 2013

Turnover 8,796,778,000 7,611,213,000 6,321,274,000 5,483,619,000

Gross Profit 3,317,127,000 2,524,361,000 2,129,242,000 2,087,964,000

Profit Before Tax 1,228,511,000 1,022,343,000 894,799,000 905,555,000

Profit After Tax 860,939,000 752,790,000 721,163,000 704,636,000

Shareholders’ Equity 2,767,153,000 2,323,615,000 1,988,226,000 1,684,464,000

Total Assets 4,282,362,000 3,568,101,000 3,424,689,000 3,055,465,000

Total Current Assets 2,826,670,000 2,291,222,000 2,264,647,000 2,011,724,000

Total Current Liabilities 1,382,275,000 1,146,112,000 1,333,642,000 1,271,816,000

By looking at the financial situation of past 4 year we can interpret that:

 Turnover rate is growing over the year means revenue is increasing which is a good sign

for the company.

 Gross profit is growing over the year which is a good sign for the company.

 Profit before and after tax both are growing over the year which is a good sign for the

company.

 Shareholders’ equity is growing over the year means retained earnings are included

every year in form of investment which is a good sign for the company.

 Both Total asset and current asset is growing over the year means business is getting

larger which is a good sign for the company.

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 Current liability is growing over the year means the company is taking more loan over

the years which is a good sign for the company if company has the capability to payout

loans in time.

Ratio Analysis:

Particulars 2016 2015 2014 2013

Current Ratio 2.04 2.00 1.70 1.58

Quick Ratio 1.098 0.961 0.688 0.775

Debt to Equity Ratio 0.55 0.54 0.72 0.75

Debt to Asset Ratio 0.35 0.35 0.42 0.41

Inventory Turnover Ratio 6.7 6.4 4.7 5.3

Net Profit Margin 9.79% 9.89% 13% 13%

Return on Asset 20.10% 21.10% 21% 23%

Return on Equity 31.11% 32.40% 36% 42%

EPS Growth Rate 14.39% 4.38% 2.34% 21.56%

Price-Earnings Ratio 23.62 16.35 17.69 28.12

By looking at the ratio analysis of past 4 year we can interpret that:

 Both current and quick ratio indicates whether the firm has the capability to pay out

short term loan. As it is increasing over the years it is good sign for the company.

 Both debt to equity and debt to asset ratio indicates the financial structure of the

company that how much asset is financed by debt or equity. Debt financing is profitable
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for the business rather than equity because financing through debt is the cheaper than

financing through equity. But it is only applicable to those companies which are capable

of paying debt in time. Both ratio is getting down for PRAN means PRAN is recently

depending less on debt and becoming more dependent on equity.

 Inventory turnover ratio indicates how quickly the inventories are being sold. The ratio

is increasing over the years which is a good sign for the company.

 Net profit margin indicates which percentage of sales are actually net profit. It is

decreasing over the years which is a bad sign for the company.

 Return on assets indicates which percentage of assets are generating profit or how

efficiently the company is using the asset to generate profit. It is decreasing over the

years which is a bad sign for the company.

 Return on equity indicates which for each unit of extra investment how much extra

profit is generated or how efficiently the company is using the equity to generate profit.

It is decreasing over the years which is a bad sign for the company.

 EPS Growth Rate indicates percentage change in earnings per share. It is increasing over

the years which is a good sign for the company.

 PE ratio indicates how much the market is willing to pay for company’s earnings. It also

indicates whether the company stock is undervalued, fairly priced or over valued in the

market. In recent years, it is increasing over the years which is a good sign for the

company.
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Business Model
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Part B (Strategic plan for 2019-2024)

Recommendation based on SWOT

By analyzing the SWOT in part A we are recommending some suggestion which will help the

company to use their Strength and opportunity to mitigate weakness and tackle the threats.

The organization will search for serious dissemination the organization needs the entire retail

shop store PRAN FOOD. The firm ought to build up an obvious mix between channel

individuals to dispersion of appropriately PRAN FOOD and for the agreeable co-task of channel

and dealers and wholesalers in conveying and offering PRAN food effectively. It is prescribed

that the firm might want to get more advantage to benefit share and overall revenue may be

expanded. The appropriation design should be changed the organization need to included couple

of pickup vans for legitimate opportune circulation. A juice pack is an extremely fundamental

item for the client request situated conveyance ought to be presented. Right off the bat it is

important to assess the quantity of client in a specific territory and after that to appraise their

yearly request. At that point it is important to delegate a merchant wholesaler for a specific

territory. The PRAN Company needs to make imaginative notices that will make more regard for

target client. The organization can take part in exchange reasonable in better places where buyers

are concentrated. These exercises will make picture and shopper mindfulness in kind of its

PRAN juice. Additionally, the firm can promote through the print media and electronic media.

The organization will be taken deals advancement program. Money rebate quality markdown and

blessing will be given to the business powers. Deals limited time spending will be expanded with

respect to as could reasonably be expected. Current adverting topic will be change somewhat the
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organization is anxious to make mark publicizing on the first page of day by day national daily

paper.

Recommendation based on financial analysis

As we have seen in the Ratio Analysis in part A that the Net Profit Margin, ROA, ROE is

decreasing over the year which is a very Bad sign for PRAN. So to improve the condition we are

recommending some suggestion.

 Pricing policy

The Company will take after the infiltration estimating approach as they do. To keep the

firm running it must set a low cost. Since the customer in residential market is high value

delicate to high cost

 Production cost will be reducing

Buyer as a rule needs to better quality and changed planned items at a lower value

generation cost one of the real parts of cost. To limit the creation cost, it is suggested that

the master and gifted specialists ought to be named which will decrease the rate wastage

and volume of deficient generation.

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 Establishing the fixed price

A similar cost ought to be settled all through the province. Accordingly, the members

ought not to need to fall into inconvenience about value control. Furthermore, 100%

members expect setting up the settled cost.

 To add high commission system

Merchants, operators, wholesalers and retailers ought to be given high commission. As

indicated by the members they need high commission from the expert. The commission

framework will lessen the business errand of the members.

 Competitive price

At last, the organization will offer aggressive cost. The organization will settled a

lessened value that will be lower than different contenders.

Recommendation based on Industry analysis

Based on the industry analysis done in Part A we think the accompanying proposal and

suggestion are seen achievable for the change of the current PRAN FOOD improves the

company position in Bangladesh.

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 Quality ensures

The firm ought to guarantee nature of PRAN food item as per the shopper's need and

desires. Nature of an item is of properties that the shopper expects in a specific item. If

there should be an occurrence of PRAN food this trait might be configuration shading

blend, taste, and so on. So quality ought to be chosen from buyer perspective.

 Target Market

New portions will be included with the current market. New section will be for center

lower and old individuals.

 Product positioning

The Company will influence position of food to pack as 'monetary and quality item' for

huge piece of the overall industry.

 Product differentiation

Taste, shading mix and kind of juice pack will be progressed.

 Packaging and labeling

The Company may charge the pressing outline a smidgen and the guideline of security

ness, substance of vitamin on the level will be presented soon open review naming will

be presented.
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PRAN is an expanded organization which has countless lines. So they by one means or another

likewise cover the concentration methodology for aggressive technique. Be that as it may, they

are brief procedures that they execute keeping in mind the end goal to advertise a specific item

which is either new or some way or another. Yet, their fundamental methodology is to serve the

more extensive number and address their issues by keeping the value reasonable and offer more

in that value extend. Thus, we propose that PRAN should adhere to the Cost authority Strategy to

maintain as a pioneer in the market.

Corporate Level Plan for PRAN for the next 5 Years

(2019-2024):

Corporate Level Strategies are concerned with the issues that help a business to compete in the

industry they are operating in. Corporate level strategies are the important tools of strategic

planning process as they affect the entire organization. The five year plan on corporate levels

strategies of PRAN are described below:

Growth Strategy: Growth strategy is a part of corporate level strategy, it reflects when an

organization goes for international market or expansion in the existing market through increasing

sells and after than differentiating the products they offering to sustain in the market. PRAN as a

core supplier of food already moved to international market currently exporting in India and

moving forward to capture the Market of South Asia. PRAN should implement corporate level
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strategies successfully by ensuring achieving a sustainable competitive advantage which would

lead to higher profitability. Internal growth strategy has given PRAN a lot of success because in

Bangladesh they have successfully capitalizing on internal economics of scale. Apart from

growth in the local market PRAN can also grow externally through mergers, acquisitions and

strategic alliances.

1. Concentration Strategy: As PRAN is producing product lines with real growth potentials,

Concentration strategy can bring more success to the company. By concentration strategy it

means giving more resources on the product line so that it increases as the participation of the

value chain of the product increases. This strategy can be divided into two strategies called

Vertical growth strategy and Horizontal growth strategy.

a) Implementing of Vertical growth Strategy: Through this PRAN can engage in value chain

of the product in the international market through taking the job of the supplier or distributor in

the international market.

b) Implementing of Horizontal growth strategy: Horizontal growth means moving to the new

markets through geographical locations or by expanding product offerings in the existed market.

2. Diversification Strategy: Diversifying the product offerings, diversifying the markets that

can only possible when the Organization growth rate is at peak. Two kinds of Diversification can

be possible one is related diversification and Unrelated diversification.

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a) Implementing Related Diversification: PRAN can implement related diversification in the

global market like they did on the local market by diversifying the company into a related

industry. It will be successful addition as they are in cost leadership position and they have firm

knowledge about related industries.

b) Implementing Unrelated Diversification: PRAN can move to another industry in the Global

market as they did on Local Market. PRAN which is core food and food items producer can

move for another industry not related to the actual industry they operating in the global market.

PRAN RFL can be a good example for this.

3. Stability Strategy: Stability strategy can be adopted in the Indian Market by PRAN as it is a

predictable market and also related with the host country’s culture. Three basics strategies can be

pointed out here.

a) No change Strategy: PRAN will have to continue doing what they are doing currently

because they are capable of generating profit in this industry.

b) Profit strategy: With this strategy PRAN would want to stay profitable position in the market

by increasing sells, innovations, serving new markets, and new customer segments so on.

c) Proceed with caution strategy: PRAN should implement this strategy before implementing a

full-fledged strategy. By nature it is a Temporary strategy but very effective for any business.
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Business Level Plan for PRAN for the next 5 Years

(2019-2024)

Business level strategy is a detailed plan which involves generating values to customer besides

having a sustained competitive advantage over competitors so that profit is maximized. PRAN as

core Company in the industry of food can implement the following strategies in the next 5 years.

Cost Leadership: PRAN can implement the cost leadership strategy in the international business

because In BANGLADESH they already are in cost leadership position. Price is a key factor

here; it can be gained through economics of scale by spreading the fixed cost over the large

number of outputs. Which will provide PRAN a great advantage to compete against the existing

international competitors? It is an internal factor of the organization as it depends on the

efficiency but PRAN can capitalize from the foreign raw materials, labors, management as well.

Differentiation: Differentiation is another tool to sustain in the foreign market after moving in

the market. Because, in the foreign market, there is already well established ventures doing the

same things as PRAN did in the Bangladesh. So, after moving in the foreign market, it is a

fundamental requirement to differentiate product offerings according to the foreign culture and

people, and through innovations. This differentiation would provide PRAN a sustainable

competitive advantage over the competitors. So, Differentiation is a must.

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Integrated Low cost and Differentiation strategy: It is a combined approach for PRAN to

implement both Low cost strategy and differentiation strategy. As technology is improving day

by day, it has created huge opportunity to implement Low cost strategy and differentiation

strategy at the same time. Modern business model now are using consolidated approach to gain

low cost and differentiation. So, PRAN should implement this strategy as well.

Functional Level Plan for PRAN for the next 5 Years

(2019-2024):

Functional level strategies involves strategies to utilize human resources, allocating resources,

identifying functional area within the organization, and coordination of those areas for optimal

contribution to help achieving success in company’s business level strategy and corporate level

strategy.

Utilizing human resources: For any business to success utilizing on human resources is a must.

Human resources are the capital for any businesses. In order to do well in the foreign market

PRAN human resources department should act accordingly to the global market conditions.

Hiring foreign employees, hiring foreign management team can benefit the organization more,
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because foreign people knows better about the foreign culture and key strategies to bring success

in the organization. Another implication is to experiencing the existing employees and

management team with the foreign business policy, culture etc. Providing skill based training to

develop the skills of the employees.

Allocating resources and Financial Plan: A business is successful when it’s every part is

individually successful. PRAN is successful in the domestic market because of the individual

success of all the part related to the organization. Finance accounting department is the most

important department of an organization. Allocating resources, generating funds, investing on the

prospective projects are the main tasks of the department. So, it is very critical as well as crucial

for the business. As PRAN wants to conquer the foreign market besides the domestic market it

will require effective risk management, cash control system also identifying the source of funds

and usage of those funds require a best finance team throughout the organization. If required,

foreign finance team can be hired for specific foreign forecasting as well as investing in the

foreign market.

Well organized R&D: R& D stands for Research and development. A well-organized team can

bring huge success for any organizations. PRAN is domestically successful because of the

experience it has in the industry. But if it wants to move further and bring same success in the

foreign markets it requires a strong R & D department. R& D is an integral part of PRAN.

Without proper research invading into foreign markets would result in failure. But with a proper
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research and forecasting, a business can gain enough data and information to implement its

business level strategies and corporate level strategies successfully.

Marketing & Sells strategy: Marketing and Sells another important part of PRAN. PRAN

marketing strategies in the domestic market is exceptional. That is a key factor in the domestic

success. PRAN also is doing great in INDIA in the marketing and promotional activities. They

sponsored popular shows; their advertisement contents are mostly funny and creative nature. So,

they need to keep this strategies continued to bring success in India. But when comes to the

Africa and Europe they need to more focus on the strategies used by the existing companies

operating at that country and also be careful about the culture and heritage. And based on that

formulate strategies to continue promotional activities.

Technological Plan for PRAN for the next 5 Years

(2019-2024):
Technology is advancing rapidly now a days and the company which will able to cope up with

this technological change swiftly and transform the business will stay in the long run. Innovation

is one of the main key to achieve competitive advantage. Innovation has major relationship with

technology. Day by day with the advancement of technology more and more innovative product

is coming to the market. The products could be direct competitors or substitution product. To
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cope up with this innovation PRAN’s business environment have to be more dynamic. The

higher level managers have to welcome technological change and should be adapt with the

changes as soon as possible. Then they should train the employees to get used to with new

technology as well. For quality control, inventory management and for many other issues new

software are coming into the market to smooth the business process. PRAN should adapt these

technologies to sustain in the long run in Bangladeshi and foreign market.

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Part C (Implementation of Strategic Plan)

Company’s governance strategy

Governance strategy is a rules and regulation that refers to the way which in a company should

be controlled and directed. It helps a company to balance the interest its many stakeholders such

as customers, employees, suppliers, management, shareholders and government and the

community. When it comes to PRAN Company, their governance strategy is perfectly fine. The

governance system of PRAN is well structured and experienced and helps to achieve their

objective. So we do not have to change it. Why is that? It is explaining in below:

Figure: Organizational structure of PRAN

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They are running their business in such a way that it helps to achieve their objective. So today,

its products are found in every single corner of Bangladesh. Their strong governance helps to

achieve big market share, and have created good brand image in the local market. Not only that

they are exporting their products to 118 different countries. They do governance their corporate

place in such a way to maintain their current effective market service, effective organizational

structure, well promotional system and attractive product promotion to customers. They also

maintain strong infrastructure and using E-business, innovative technology as marketing weapon

to promote their products. We believe, their good governance plays important rule to provide

infrastructure to improve the quality of the decisions made by the managers of the company who

manage the business and their ethical decision making help to build sustainable business and

enables them to generate long term value more successfully. If we change their governance

strategy then it will impact badly in the current organization structure,

Strategic control

PRAN should apply Implementation control and Strategy Surveillance to develop their strategy

control. So that can put their recourse into operation more effectively and can have clear idea

that their strategy is working perfectly or not.

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Implementation control: it means to see their plans, programmers and polices are guiding

their objective toward company’s goals. PRAN is a very big local brand and they have different

types of business. They should be more careful about their resource are being implemented right

way in right project. If it is not happing or their utilization of their rescores does not bring any

benefit. Then they should take correct step to change the plan immediately. PRAN can do

implementation control in two ways 1) Monitoring strategic thrust and 2) Milestone reviews

 Monitoring strategic thrust: it could be done by the manager of any specific project,

first he needs to know before planning for the project which thrust are critical factors will

help to bring the success in the project.

 Milestone reviews: it is significant point which helps to develop the program. Project

manager of PRAN should know this type of points which related with project to create

great success in the any project.

Strategy Surveillance: PRAN Company can make a control designed which enables to

overreach in a board range of events inside and outside the company through monitoring. And it

could be done by any kind of general monitoring, selected information source to uncover event

resource that are likely to affect strategy organization goals.

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Organizational Culture

PRAN has very technical and supportive corporate culture, which allows them flexible working

condition and employee empowerment. So employees of PRAN willingly accept regular

challenges and learn something new each day. Therefore PRAN organizational culture supports

our recommended strategy.

PRAN believes that a practices, belief and ideologies of a company structure which gives a sense

of guidance to employees. A good work culture helps to create good brand image of the

company and making it different from its rivals. They think the employees of their company are

the true asset of their company. That is why PRAN has reached in its best place where it’s right

now. The employee’s effort and motivation help the organization for its successful functioning.

Global Strategies

PRAN is at the growth stage of their production life cycle. PRAN RFL group is one of the

biggest conglomerates in Bangladesh. PRAN stand for ‘Program for Rural Advancement

Nationally’ and has become one of the largest food and beverage brands in Bangladesh and

exporting their products in more than 138 countries the world. PRAN is extending its business

from 2003 where they established a subsidiary company in UAE. In 2007after the ban of the

direct investment in India, in 2008 the company announced the plan to open a production facility

in Tripura, India. A PRAN export has reached 10 Billion taka value in 2016 and the biggest

markets were India, Saudi Arabia, UAE, Malaysia and Oman.

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For penetrating market PRAN is using transnational strategy for Global business because of the

local responsiveness and the pressure for cost reduction is high in these kinds of markets.

Transnational strategy will help in business level strategy though it suggests that broad

differentiation. As business level strategy suggest market segmentation to entre/penetrate the

market, this transnational strategy actually support the market segmentation strategy which main

focus will be youth, rural people and other corporate people.

Though PRAN is targeting low cost but it will not hamper the main company and cause of this

there will be disgrace for the mother company PRAN RFL.

Ethical Value Proposition

In PRAN, there are several rights for the employees and these will be discussed below-

Safe and interactive working conditions:

PRAN already ensured their employees about the safe working conditions and the

cooperativeness. Their security system is properly managed and up to date. Sometimes some

decisions are taken by authorities who actually don’t have the authorization power to initiate so

our suggestion is to have proper authority to safely and properly make this decision and

authorization.
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Fair compensation and bonuses for the skills:

More fairness to the employees the better they are, every employee actually seek these in their

works. Proper assessment actually motivates them to work more properly in the organization.

Employees are the main force of any organization if they are happy they will be more loyal to the

organization. Getting bonus or allowance for the performance will be a great factor for the

employees, it will motivate them to work the extra mile the company needs.

Proper recruitment process:

PRAN group always hire employees referral for recruiting and selecting candidates for the

vacant place of the organization and it may not help them to find the proper candidate as they

are putting emphasize on these referrals.

There are no central boards to conduct these recruiting processes and no complain box where the

employees can give their feed-back and also the recruitment process is not up to date.

So our recommendation is to add these features to conduct and run the business properly.

Equal treatments by manager:

Biasness can hamper any organization. Every company has some hierarchy and PRAN is one of

the leading industries in Bangladesh and it also face some problems about these hierarchy and
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got into some controversies that employees from all levels are not treated equally and the

organization should overcome this problems or their culture will be hampered in the long run.

Bonus Point:

Carbon foot-print

A carbon footprint is historically defined as the total emissions caused by an individual, event,

organization, or product, expressed as carbon dioxide equivalent.

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In most cases, the total carbon footprint cannot be exactly calculated because of inadequate

knowledge of and data about the complex interactions between contributing processes, especially

which includes the influence on natural processes storing or releasing carbon dioxide.

To reduce the emission of CO2 PRAN can use different strategies

1- Increase the use of renewable energy and transform our energy system to one that is

cleaner and they can be less dependent on fossil fuels.

2- Increase the use of hybrid cars/transportation so that the vehicles fuel efficiency increase.

3- PRAN can help farmers to use their pesticide more efficiently and effectively.

4- Use day light in their offices so that the use of electricity becomes much less.

So these are the possible solution to decrease the emission.

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