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An Assignment on

Strategic Analysis for PRAN-RFL Group by Applying


Strategic Tools

Submitted to:
Nazmun Nur Eva
Lecturer

Course Instructor: Strategic Management (MGT 601)

Submitted by:
Oishik Rahman Siddiqi

Student ID: 192-0225-029

MBA (Direct), Summer 2020

Date of Submission:
August 20, 2020

School of Business Administration, University of South Asia


August 20, 2020

Nazmun Nur Eva


Course Instructor
Strategic Management (MGT 601)
School of Business Administration
University of South Asia

Subject: Submission of an assignment on ‘Strategic Analysis for PRAN-RFL Group by


Applying Strategic Tools’

Dear Madam

It is my sincere pleasure to submit an assignment on ‘Strategic Analysis for PRAN-RFL Group


by Applying Strategic Tools’. This assignment is submitted as part of the partial fulfillment of
the course Strategic Management (MGT 601).

In this assignment I have tried to give and overview of Pran-Rfl Group, some literature review
on definition and idea of strategic management, SWOT analysis, BCG Matrix and Porter’s Five
forces model, applied those strategic tools for Pran-rfl group and some recommendations.

I hope this report like assignment will merit your approval.

Yours Sincerely,

Oishik Rahman Siddiqi


Student ID: 192-0225-029
MBA (Direct), Summer 20

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Table of Contents

Letter of Transmittal.......................................................................................................................ii
EXECUTIVE SUMMARY………………………………………………………………………iv
Introduction.....................................................................................................................................5
Organization Overview...............................................................................................................5
Mission...................................................................................................................................................................6
Vision......................................................................................................................................................................6
Core Values...........................................................................................................................................................6

Literature Review…………………………………………………………………………………7
Findings & Analysis……………………………………………………………………………..12
SWOT Analysis of the Organization………………………………………………………….12
BCG Matrix of Pran Group……………………………………………………………………14
Porter’s Five Competitive Force Model....................................................................................................15
What strategies PRAN-RFL following to market their product?......................................................16
What kind of organization structure PRAN-RFL has?.........................................................................17
Recommendations................................................................................................................................................18
Conclusion..............................................................................................................................................................19
References...............................................................................................................................................................20
EXECUTIVE SUMMARY

This assignment tends to provide information about PRAN group and its advancement. PRAN
Group of industries is one of the leading business institutions of Bangladesh. One of the major
organizational goals is to reduce poverty and hunger through large scale employment
generation. It is contributing directly to the economy of Bangladesh through its cooperation with
farmers and export earnings. The report focuses on the product portfolio where we found Pran
takes an extensive way to all forms of agro processed food products considering all of the ways
of ensuring hygienic and quality food products as well as their overall product range too. We
also tried to write about the CSR activities of Pran as the time to think only about profit has
gone. New era has come to think about the people, who are living around us. Pran group gives
CSR effort on revolving around the four premises environment, energy preservation, community
& people to improve the quality of livelihood. Moreover, PRAN group strengths and
competencies developed over the years, PRAN group aims to provide the best working
environment, good quality product for its customer. In addition, The major strengths of PRAN
in Bangladesh are experience, large economy, greater sources of finance greater control over
sources of raw materials, risk-pooling, huge distribution network, conforming to standards,
economies of scale, creating potential market in the new world place. Finally, the food
processing industry has a contribution to economic progress in Bangladesh. In today world,
export of food is ultimately an important way of improving our Bangladesh economy.

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Introduction

Organizational Overview

PRAN stands for Program for Rural Advancement Nationally. PRAN is currently the most
well-known household name among the millions of people in Bangladesh and abroad also. In
1981 for the first time PRAN started its operation as a processor of fruits and vegetable in
Bangladesh. Major General (Retd.)

Amzad Khan Chowdhury people of Natore, was


the founder and the managing director of PRAN
group. The corporate headquarters of this
company is located at PRAN-RFL Center, 105
Progoti Sarani, Middle Badda, Dhaka 1212,
Bangladesh. PRAN is the pioneer in Bangladesh
who involved in contract farming and process raw
materials directly from the farmers. PRAN
manipulate the materials by the several factories
into the hygienic ways. There are
almost 30,000 employees are operating every day. (Own Website) Over the years, PRAN has
grown not only in dignity but also the country's overall socio-economic development contributes
significantly. At this time, PRAN is one of the greatest, significant, and more successful
companies in Bangladesh as well as challenging the other multinational companies.

PRAN is one of the good numbers of favorite food and beverages brand among the millions of
people in Bangladesh. In addition to, PRAN is exporting their product outside the country as
well. They are exporting their product amongst 82 countries of the world at a regular basis. They
also set up production plant at Kalkata in India and it is also working for more expansion in
Indian market. All their products of PRAN, at every stage of the production process are
produced in accordance with the highest international standards level. At present, PRAN is
producing more than 200 products under 10 different categories which are Juices, Drinks,
Mineral Water, Bakery, Carbonated Beverages, Snacks, Culinary, Confectionery, Biscuits and
Dairy. Finally, PRAN has certified with halal product as well as the best quality product at a
national level and international level. New arrival of PRAN foods are Nazirshail rice, Green chili
sauce. The company has adopted ISO 9001 as a guiding principle of its management system. The
company is complaint to HACCP & certified with halal which ensures only the best quality
products are reaches to the consumers table across the Globe. Consumer doesn’t feel hesitate to
try other product of PRAN (Shamsarman 2011). The company's activity goes well beyond the
sphere of business. As socially conscious and responsible corporate body it is committed to the
improvement of the society as a whole. Therefore, it considers the interests of customers,
employees, shareholders, communities, and ecological considerations in all aspects of its
operations

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This obligation is seen to extend beyond its statutory obligation to comply with legislation. It is
involved in the welfare program of the acid burn victims and helps many NGO's to make
available healthcare to the disadvantage population of the Country. It sponsors programs to
build awareness on the healthcare need.

Mission
‘Poverty and hunger and curses’ – Mission of Pran-RFL group. Therefore, their aim is to
generate employment and earn dignity and self-respect for our competitors through
profitable enterprise.

Vision
The Vision of the company is to create a wonderful brand image throughout the world.

Core Values
PRAN-RFL believes in providing quality by considering the customers’ demands and
expectation. Continuous innovation and improvement is the motive of the organization by
focusing customers and tries to maintain fairness and transparency in all segments. The
corporate values for PRAN-RFL are-
Consumer care
Suppliers care
Employee care
Trade care

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Literature Review

The famous phrase ‘Knowledge is power’ (Kaplan, 2002, p. 166) which originated by Sir
Francis Bacon in 1597 resonates with even more pertinence in today’s knowledge economy.
An Organization for Economic Co-operation and Development (OECD) report, The
Knowledge-Based Economy, states that ‘(t)he determinants of success of enterprises, and of
national economies as a whole, is ever more reliant upon their effectiveness in gathering and
utilizing knowledge’ (OECD, 1996, p. 14). Researchers have highlighted the importance of
knowledge as a key organizational resource that can lead to competitive advantages for an
organization (Allee, 1999; Wall et al., 2004; Wright et al., 2001). Thus, accumulated, applied
and shared, knowledge enables an organization to become a eader as opposed to a follower
and to succeed rather than fail in a knowledge-based economy.
Sir Francis Bacan’s famous phrase is equally applicable in non-profit organizations (NPOs).
Prior to the 1980s as the backbone of a government’s social service delivery, NPOs enjoyed
financial support through grants from government (Alexander, 1999). Since the 1980s the non-
profit sector has been subject to radical change (Courtney, 2002; Hudson, 1999). The
introduction of new public management (NPM) in both developed and developing countries
contributed the main reason for the change. The NPM was a reform agenda aimed at
restructuring the public sector according to for-profit sector principles but this has
dramatically altered the expectations on how NPOs should be managed (Alexander, 2000;
Courtney, 2002). As a consequence, NPOs are now expected to abandon traditional public
administration methods and adopt for-profit strategic management models to foster
organizational efficiency and effectiveness in the sector (Alexander, 1999; 2000; Courtney,
2002). The need for organizational efficiency and effectiveness adds significant strategic
pressures to the management of NPOs.
NPOs pursue their mission to meet social needs, no matter how broadly or narrowly that
mission might be interpreted (Liebschutz, 1992). However, NPOs are commonly operating in
a highly competitive environment today that is characterized by increasing demand of services
from the community, growing competition for contracts with the public and for-profit sector
(Ramia and Carney, 2003), declining volunteer support (Lyons, 2001) and a generally tighter
government funding source (Craig et al., 2004). The competitive environment has forced
NPOs to adapt for-profit strategy concepts. This concepts are often criticised for being
ineffective in NPOs (Alexander, 2000; Chetkovich and Frumkin, 2003; Mulhare, 1999) as the
primary objectives of NPOs is investing in people rather than profit (Herman and Renz, 1999;
Ryan, 1999). As a result, NPOs have not been able to make use of the strategy concepts in
order to take advantage of the knowledge economy and increase their effectiveness in serving
their stakeholders. The need for competent strategic management concepts that are able to fit
in the unique non-profit environments has become widely accepted (Courtney, 2002; Salamon
et al., 1999; Stone et al., 1999).

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Originally derived from for-profit strategic management techniques, IC has become a
conceptually robust framework for NPOs. Unlike many other for-profit strategy concepts, IC
stresses qualitative, non-financial indicators for future strategic prospects and may be
harnessed to co-ordinate with the unique environment in which NPOs operate. IC contributes
to NPOs’ strategic positioning by providing enhanced understanding of the allocation of
organizational resources. Simultaneously, IC enables NPOs to enhance their performance by
providing meaningful information to organizational stakeholders. In these ways, IC aids the
organizations in their attempts to reconcile their social and commercial objectives.
This paper is divided into three main parts. Firstly, it provides a brief outline of the
development of strategic management in today’s non-profit environment in the knowledge
economy, including SWOT (strengths, weaknesses, opportunities and threats) analysis,
industrial organization (I/O), resource-based view (RBV), knowledge-based view (KBV) and
balanced scorecard (BSC). It is argued that the concepts are inapplicable in the non-profit
sector. Secondly, an overview of the emergence, the concept and the three component parts of
IC is presented. Finally, the importance of IC in NPOs is reviewed. This paper argues that IC
is an alternative strategic. Management conceptual framework within the unique non-profit
environment Strengths, weaknesses, opportunities and threats (SWOT)

The emergence of strategic management could be traced back to the 1950s when
Selznick (1957) introduced the need to bring an organization’s ‘internal state’ and
‘external expectations’ together for implementing policy into the organization’s social
structure. Andrews (1971) defined strategy as the balance of actions and choices between
internal capabilities and l analysis into a structured matrix known as SWOT framework,
which inquiries into strengths, weaknesses, opportunities, and threats of an organization.
The SWOT analysis remains as a strategic management framework in some organisations
today because it has a long history in the strategic management field (Mintzberg et al., 1998).
More importantly, the framework is rather simple to adopt with basically no investment
required when it is utilized and very little specialized skill involved in facilitating the
strategy formulation process. This is particularly essential to NPOs because these
organizations often operate under tremendous financial constraint as a result of the public
sector reform movement.
However, the prevailing SWOT analysis process has been criticized for its simplicity and
generalization (Valentin, 2001), indiscriminate lists involving typical procedural guidelines
that lack explicit theoretical underpinnings (Fahy and Smithee, 1999; Ip and Koo, 2004),
and rigid descriptive nature of meandering haphazardly from one standalone SWOT variable
to another, which often dangerously generates misleading results in the strategic
management process (Hill and Westbrook, 1997; Lee et al., 2000) and stifles creativity and
vision in organisations (Patrickson and Bamber, 1995).
Managing a NPO strategically is arguably more difficult than in a for-profit or government
organization in today’s knowledge economy because NPOs often find themselves caught in
the crossfire of conflicting multiple constituencies under the public reform movement (Sandler
and Hudson, 1998). Also, it requires more knowledge and skills to effectively manage the
combination of both paid employees and volunteers in NPOs than it does to manage an
entirely paid staff or a staff comprised solely of volunteers (Cunningham, 1999; Kong, 2003;
Lyons, 2001).

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Thus the efficacy of the SWOT analysis procedure as a strategic management framework to
provide sufficient strategic insights and analysis for non-profit decision makers remains
questionable in the non-profit environment.

As the development of strategic management continued, the SWOT framework began to


proceed down two separate ways with one path representing opportunities and threats, and the
other focusing on strengths and weaknesses (ZACK,2005)

The BCG matrix (aka B-Box, B.C.G. analysis, BCG-matrix, Boston Box, Boston Matrix,
Boston Consulting Group analysis, portfolio diagram) is a chart that had been created by
Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with
analyzing their business units or product lines. This helps the company allocate resources and
is used as an analytical tool in brand marketing, product management, strategic management,
and portfolio analysis.

Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix) developed by
BCG, USA. It is the most renowned corporate portfolio analysis tool. It provides a graphic
representation for an organization to examine different businesses in it’s portfolio on the basis
of their related market share and industry growth rates. It is a two dimensional analysis on
management of SBU’s (Strategic Business Units). In other words, it is a comparative analysis
of business potential and the evaluation of environment.
According to this matrix, business could be classified as high or low according to their
industry growth rate and relative market share.
For each product or service, the ‘area’ of the circle represents the value of its sales. The BCG
Matrix thus offers a ‘map’ of the organization’s product (or service) strengths and weaknesses,
at least in terms of current profitability, as well as the likely cashflows.
The need which prompted this idea was, indeed, that of managing cash-flow. It was reasoned
that one of the main indicators of cash generation was relative market share, and one which
pointed to cash usage was that of market growth rate.
Derivatives can also be used to create a ‘product portfolio’ analysis of services. So
Information System services can be treated accordingly.
Relative Market Share = SBU Sales this year leading competitors sales this year.
This indicates likely cash generation, because the higher the share the more cash will be
generated. As a result of ‘economies of scale’ (a basic assumption of the BCG Matrix), it is
assumed that these earnings will grow faster the higher the share. The exact measure is the
brand’s share relative to its largest competitor. Thus, if the brand had a share of 20 percent,
and the largest competitor had the same, the ratio would be 1:1. If the largest competitor had a
share of 60 per cent, however, the ratio would be 1:3, implying that the organization’s brand
was in a relatively weak position. If the largest competitor only had a share of 5 per cent, the
ratio would be 4:1, implying that the brand owned was in a relatively strong position, which
might be reflected in profits and cash flows. If this technique is used in practice, this scale is
logarithmic, not linear.

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The reason for choosing relative market share, rather than just profits, is that it carries more
information than just cash flows. It shows where the brand is positioned against its main
competitors, and indicates where it might be likely to go in the future. It can also show what
type of marketing activities might be expected to be effective.
Relative Market Share = Sales This Year / Leading Rival’s Sales This Year
Market Growth Rate = Industry sales this year – Industry Sales last year.
Market share is the percentage of the total market that is being serviced by a company under
consideration, measured either in revenue terms or unit volume terms. Higher the market
share, the higher the proportion of the market one controls. The Boston Matrix assumes that if
the company under consideration is enjoying a high market share then it will be making more
money. (This assumption is based on the idea that company has been in the market for long
enough to have learned how to be profitable, and will be enjoying scale economies that gives
an advantage). Market growth is used as a measure of a market’s attractiveness. Markets
experiencing high growth are ones where the total market is expanding, meaning that it’s
relatively easy for businesses to grow their profits, even if their market share remains stable.
While, competition in low growth markets is often bitter, and while you might have high
market share now, it may be hard to retain that market share without aggressive discounting.
The analysis requires that both measures be calculated for each SBU. The dimension of
business strength, relative market share, will measure comparative advantage indicated by
market dominance. The key theory underlying this is existence of an experience curve and that
market share is achieved due to overall cost leadership.
BCG matrix has four cells, with the horizontal axis representing relative market share and the
vertical axis denoting market growth rate. The mid-point of relative market share is set at 1.0.
if all the SBU’s are in same industry, the average growth rate of the industry is used. While, if
all the SBU’s are located in different industries, then the mid-point is set at the growth rate for
the economy.
Resources are allocated to the business units according to their situation on the grid. The four
cells of this matrix have been called as stars, cash cows, question marks and dogs. Each of
these cells represents a particular type of business.

Porter’s five forces model is a classic strategic business tool deployed at industry competition
analysis, to assess the prosperity capabilities and environmental influences. However, as
industries are dynamic and business characteristics constantly evolve it may be questioned if it
is still applicable and reliable (McGahan, 2000).
Criticism on whether the framework is incomplete suggests that the multi-level nature of
certain industries may affect the accuracy of analysis. Specifically, as discussed in Johnson,
Scholes and Whittington (2009) understanding that most industries may need to be analysed at
different segments is vital in order to implement a coherent analysis. Referring to the multiple
clusters within airline industries as a relevant example, the authors discuss that a successful
industry analysis should be applied into each customer segment and market cluster in order to
provide a concise picture not just an overview.
The dynamic nature of industries is identified as another underlying factor that may cause
uncertainty about the suitability of the framework. The fast pace that industries change, may
affect fundamentally the circumstances, individual capabilities and overall business
environment. This process is defined as convergence and describes how dynamic changes may
recreate the industries causing two previously separate industries to merge (Van den Berghe
and Verweire, 2000). More specifically, changing circumstances in converging industries may
embed such resources innovations (for example technologies) that will enable new product
capacities and ultimately widen competition (Malhotra and Gupta, 2001).
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Bringing together products or services so that they complement each other, may create a
powerful way to impose a new competitive force within an industry. Reflecting on
complementary products and the potential to combine and reposition them so that they will
cooperate rather than compete to each other, Burton (1995) emphasises how this can reshape
industry competition. Similarly, ul-Haq (2005) discusses a different approach which suggests
that complementary products develop significant business opportunities and initiative for
organizations for cooperating rather than competing with each other as the five forces theory
suggests. This approach determines an additional competitive force that may provide
significant profit potential and competition insight (Brandenburger and Nalebuff, 1995).
Hence, it is suggested to be placed as the sixth force to complement the five forces framework
(Yoffie and Kwak, 2006).

The discussion so far has tended to assume that the five forces framework manages to address
critical competition forces within an industry, although several other factors may also be
considered in order achieve greater accuracy. In a relevant research, Christensen (2001)
supports the value of the framework into the modern business environment. Christensen’s
(2001) conclusion is that the five forces framework is an essential strategy tool which can
provide a useful insight into all organizations. Even though it is acknowledged that profit
circumstances may vary across industries and thus the model can be developed further, it is
still considered a sound basis for competitive analysis.
Similarly, Grundy (2006) outlines that there is still room to improve the framework and
enhance its practical value. It is suggested that the five forces framework has been historically
used as a theoretical strategy model with significant influence in mostly academic business
management contexts. The author’s approach relates with how it can be practically applied
into the modern business environment with success. This includes several features including
rating the impact of forces and assigning them an importance weight in order to explore how
they interrelate and how they create an industry pattern.
An attempt to revise the application of the framework in today’s business contexts should
ensure that it manages to incorporate the prevailing circumstances of the era into the analysis.
Considering that Internet has become an increasingly powerful factor, Karagiannopoulos,
Georgopoulos and Nikolopoulos (2005), attempt to study if this traditional theory is still
appropriate for current industry examination. Their findings support the studies discussed
above acknowledging the value of the framework as the starting point of competition
examination. However, they also stress the influence of several other facts relative to
technology innovation and the profit capabilities these create in order to accurately diagnose
the changing nature and new patterns of economy and industries. The potential to utilise the
five forces framework as the foundation of technology and Internet competition analysis is
also confirmed by Siaw and Yu (2004).

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Findings & Analysis

SWOT Analysis of the Organization

Strength: Weaknesses:
1. Brand image: 1. Limited decision taking capacity:
Firstly, PRAN has stayed in the local market in The PRAN Company exists under the rules and regulation
Bangladesh for many years. So they are so experienced of agricultural marketing company limited. So PRAN
cannot
and stationed in people’s mind deeply. Everyone in
take any instant decision to adjust the sudden
Bangladesh is aware of PRAN. PRAN portrays different market changes.
kinds of products which are already exist in the market
and people like it. So there is strong brand preference
for PRAN over other substitutes in the mind of a 2. Price disadvantage:
number of consumers. Sometime price of the product may be varying because
of raw material. Because of the price of the raw material
which is also the key ingredient of their product line, is
2. Superior quality control measures: comparatively expensive than that of their competitors in
PRAN maintain and control the superior quality of Bangladesh especially the emerging ones. So this makes
the product. It is the policy of agricultural marketing them sell their products at a higher cost than most of their
company limited to market products of consistent quality competitors.
at home and abroad as per would standards produced by
in accordance with good manufacturing practices. 3. Lowest per capita consumption:
Bangladesh has the lowest per capita consumption in the
3. Integrity: entire world. So upper class and middle class can bear the
PRAN product but the lower class people cannot bear it.
PRAN believes success depends upon the quality and
value of their products by providing a safe,
wholesome economically efficient and a healthy
4. Lack of geographical coverage:
Sometime the PRAN product cannot reach in the definite
environment for their customers and by providing a geographical area because of lack of communication.
fair return to their investors while maintaining the
highest standards of integrity.

4. Market share:
Because of the variety of the product PRAN leads in the
share market and increasing the market share.

5. Customer satisfaction:
Whenever PRAN exist in the market, that time customer
consumed their product. They launch different kinds of
product and the price of the product is measurable.

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So the customer satisfied with the PRAN product.

Opportunities: Threats:
The main opportunities, facing by the PRAN
Food Every company faces threats when they newly
Company’s product line are as follows: enter into market or for the existing company.
Threats facing the PRAN Food Company are
1. The agriculture sector is the largest contributor to as
follows:
GDP. So PRAN produced canned fruit and vegetables,
mushrooms etc and it is the part of agriculture. So it’s an 1. PRAN has many competitors which are marketing
opportunity to contribute to GDP.
dairy products. It has a strong competitor (Arong) in
2. The crop production system is highly labor intensive producing Chocolate Milk.
and there is an abundance of labor in the country. 2. Uprising commodity price is also a threat for the
3. Through the production of the PRAN product the product in newly introducing into the market.
employment opportunity are increased in Bangladesh. 3. Bangladesh government may establish a stringent
4. Through the production of the good product there is a product safety law, which would entail product
redesign work.
great opportunity to attract the foreign investors.
4. PRAN mainly produced the agro- based product
5. Company can develop the effective distribution
and most of the products are perishable. So it has to
system.
be preserved system.
6. PRAN Company can make survey to make effective
5. And finally Current political unstable situation may
product.
affect the new product launching activities.

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BCG Matrix of Pran Group

• Pran Spice Powder


• Pran Sauce • Pran Gems
• Pran Drinking Water • Pran Choco Choco
• Pran Fruit Jelly • Pran Bubble Gum
• Pran Potato Crackers • RFL – italiano Ceramics
• RFL Plastic Product • RFL – Regal Furniture
• All Time Bread , Butter • Click fan,RFL Pump

• Pran UP • Power Energy Drink


• Pran Mango Juice • Pran Lacchi
• Pran Frooto • Milk Man
• Pran Mango Juice Pack
• Pran Mango Chutni
• Pran Lichi
Vision LED
TV,Vision Fridge

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Porter’s Five Competitive Force Model

1. Threats of new entrants: Threats of any new competitors are high in the
business of PRAN-RFL group. Because any type of companies can enter
in the business, as it is possible to get trade licenses from Government.

2. Threats of substitutes: In the business of PRAN-RFL group, the treats of the

substitutes are high. Because there is Akij group, BD foods, Square etc. are
producing same kind of product. So if the PRAN-RFL group is doing something
unfair to the consumers, the consumers can easily switch to the other companies.

3. Bargaining power of buyers: The


bargaining powers of low. the consumers are very
Because most of their products prices are fixed.

4. Bargaining power of suppliers: Bargaining powers of the suppliers are


very low. As Bangladesh is agricultural country, so there are many sellers of
the raw materials of foods. Therefore, there is less chance of the bargaining
powers of the sellers.

5. Current Rivalry: Current rivalry is very much high of the PRAN-RFL group.
As there are some huge groups Like Akij group and others, so it is seen that
the rivalry amongst the current companies are very high.

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What strategies PRAN-RFL following to market
their product?

Strategies that PRAN-RFL following to market their product are:-

Growth- It is a corporate strategy that’s used when an organization wants


to expand the number of market served or products offered, through either
its current business or new business. Expansion into new products and
markets. Because of growth strategy, an
organization may increase revenue,
number of employees, or market
share. PRAN, a leading food
processor, has tripled its export
earnings in the last four years to
more than $144 million (Tk 1,126 core)
now. To that end, the company has been exploring new export
markets – from America to Africa and Asia. The group exported goods worth
$50.93 million in fiscal 2014-2015 – an impressive 183.44 percent growth. Now,
the group exports to 114 countries – from India to Middle East and Africa, Europe
to North. The company is now producing 200 products under 10
different categories.

Stability: - Maintenance of the status quo. A stability strategy is a


corporate strategy in which an organization continues to do what it is
currently doing. PRAN-RFL is offering same quality service to their clients,
maintaining market share.

Cost leadership strategy: - When an organization competes based on having


the lowest cost in its industry, it is following a cost leadership strategy. Seeking to
attain lowest total overall cost relative to other industry competitors. A lowest
cost leader is highly efficient. PRAN-RFL has been successfully using its strategy
of everyday comparatively low price to attract customers. They are competing on
the low price with other industries and earning higher units of profits. They are
selling products at reasonable price. RFL is the market leader in plastic industries.

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Unrelated diversification: - When a company combines with firms in
different and unrelated industries. Growing by combining firms in unrelated
industries where higher financial returns are possible. At first PRAN was only
producer of food product such as juices, drinks, mineral water, bakery, carbonated
beverages, snacks, culinary, confectionary, biscuits and dairy. But now they are
combined with RFL as well. PRAN-RFL is also producing electronics and home
appliance such as plastic products, wooden furniture, LB furniture, cast iron,
PVC, lift, elevator, generator and kitchen items.

What kind of organization structure PRAN-RFL has?

PRAN-RFL has Mechanistic structure. It is a larger organization. Company’s


environment is stable. It has clear, well-defined, centralized, vertical hierarchies of
command, authority, and control. Specialization carries throughout the
organization. They have specialized function departments such as production,
marketing, or finance. Each unit has clear and specific responsibilities and objects.
It is more centralized. As the distance between the top and the bottom of the
organization expanded, top management would increasingly impose rules and
regulations. Because top management cannot control lower-level activities through
direct observation. Also lower-level managers are not capable enough making
decisions.

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Recommendations

As being a very Successful Organization and their flawless management system enabled
Pran group to enjoy economic of Scale through their profit maximization but as being a part
of the culture of Bangladesh through their share of Quality products they should also
emphasize products that are within in the purchasing power of the General people of
Bangladesh and ensure that products should be of quality that equal in aspects to compete
with the international standards.

How PRAN-RFL can overcome their weakness?


As we saw that PRAN-RFL had some weakness that could be a threat to
them, here are some points that we suggest PRAN-RFL to follow:

1. PRAN-RFL needs to take instant decisions to cope up with


sudden market changes.
2. They should give price advantage to their customers.
3 .Upper class, middle class as well as lower class should give
the opportunity to bear PRAN-RFL products.
4. Geographical coverage is very important for any organization.
They need to develop good communication system so that PRAN-
RFL products can reach to any area.
How PRAN-RFL protect itself from their threats?
1. As PRAN-RFL has their strong competitor (Arong) in producing
chocolate milk, they need to maintain good quality in terms of
dairy products.
2. If they introduce any new product in the market, they need to make
sure that price is in average level and maximum customers can buy
that product.

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Conclusion

Organizations in our era are extremely sensitive - as they must be - to


demographic, political, technological and economic develop. PRAN is currently
one of the most admired food & beverages brand among the millions of people of
Bangladesh and other 94 countries of the world where PRAN products are
regularly being exported. All the PRAN products are produced as per
international standards maintaining highest level of quality at every stages of its
production process. But it is a matter of fact that despite this large success PRAN
has various problems too which are creating barriers in their way to further
success. Problems like barriers in exporting to India, employee conflicts,
inadequate physical facilities etc are creating problems in expanding the business
of PRAN. So in our opinion after doing this report, PRAN needs to put more
efforts and create some additional effective strategies to be more successful.

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References
http://www.pranfoods.net/export_history.php
http://rflplastics.com/about-us/
http://www.rflbd.com/career/Growth_Opportunity.php
www.rangpurfoundry.com/annual_report/annual_report_2012.p df
http://studylib.net/doc/7157112/close-competitors-of-pran-rfl-group
https://www.coursehero.com/file/11864725/SWOT-Analysis-of-PRAN/
http://www.academia.edu/22501773/Term_Paper_On_Financial_
Performance_Analysis_Of_PRAN
http://dspace.bracu.ac.bd:8080/xmlui/bitstream/handle/10361/3
364/09304061.pdf;sequence=1

https://www.ukessays.com/essays/marketing/the-bcg-matrix-analysis-marketing-
essay.php
https://www.ukessays.com/essays/business/porters-5-forces-model.php

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