PRAN RFL group

Company name: PRAN – RFL GROUP
Submitted To:
Rumana Afrin
Department Of Management (FBA)
AIUB
Submitted By:
Group 3: TEAM STARK

GROUP – 3 [TEAM STARK] 1
Letter of Transmittal
17 April, 2017
Rumana Afrin
Department of management
Faculty of Business Administration
American International University Bangladesh.
Subject: Letter of transmittal
Dear Madam,
With due respect, we would like to inform you that it is a great pleasure for us to submit the
Final report on “PRAN-RFL group”. We have tried to make the report a comprehensive one
within the given period of time.
While conducting the report, we have gathered loads of knowledge about the performance
Of the company and many more different aspects of a renowned bank in Bangladesh.
We, therefore, would like to request you to accept this report and give us a proper feedback
On the report.
Regards,
Imtiaz Alam
Setu, Tarik Adnan
Hoque Anindita
Masud Mahadi
Mahrin Mostofa

ACKNOWLEDGEMENT
Apart from the efforts of ours, the success of any project
depends largely on the Encouragement and guidelines of many
individuals. We take this opportunity to express our Gratitude
to the people who have been instrumental in the successful
completion of this Project. We would like to show greatest
appreciation to our respected course instructor Rumana Afrin.
We cannot thank her enough for all her tremendous support
and help. She inspired us greatly to work in this project. Her
willingness to motivate us contributed tremendously to our
project. Besides, we would like to thank Google for providing us
with useful information and facilities to complete this venture.
It gave us an opportunity to participate and learn about the
many aspects of the above mentioned company. The guidance
and support received from all the members who contributed
and who are contributing to this project, was vital for the
success of the project.

Table of Contents
Letter of Transmittal.............................................................................................. 1
ACKNOWLEDGEMENT............................................................................................ 2
Introduction........................................................................................................... 4
Organization Profile............................................................................................ 4
Mission ............................................................................................................... 5
Vision.................................................................................................................. 5
Core Values......................................................................................................... 5
EXECUTIVE SUMMARY........................................................................................... 6
Findings & Analysis ................................................................................................ 7
SWOT Analysis of the Organization..................................................................... 7
BCG Matrix of Pran Group .................................................................................. 9
Porter’s Five Competitive Force Model............................................................. 10
What strategies PRAN-RFL following to market their product? ........................ 11
What kind of organization structure PRAN-RFL has? ........................................ 12
Recommendations............................................................................................... 13
Conclusion ........................................................................................................... 14
Bibliography......................................................................................................... 15

Introduction
Organization Profile
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. 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

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.

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

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

BCG Matrix of Pran Group
• Pran UP
• Pran Mango Juice
• Pran Frooto
• Pran Mango Juice Pack
• Pran Mango Chutni
• Power Energy Drink
• Pran Lacchi
• Milk Man
• Pran Lichi
Vision LED TV,Vision Fridge
• Pran Sauce
• Pran Drinking Water
• Pran Fruit Jelly
• Pran Potato Crackers
• RFL Plastic Product
• All Time Bread , Butter
• Pran Spice Powder
• Pran Gems
• Pran Choco Choco
• Pran Bubble Gum
• RFL – italiano Ceramics
• RFL – Regal Furniture
• Click fan,RFL Pump

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 the consumers are very
low. 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.

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.

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.

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.

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.

Bibliography
 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

PRAN RFL group

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