Date: 12 August 2014

MD.AFNAN HOSSAIN

Course Instructor

Principles of Management

Subject: Submission of report on “Management Function of pran”.

Dear Sir,

It gives ours immense pleasure to submit a report on “Management Function of pran”. This report is submitted as a partial fulfillment as a part of our course .The preparation of the report has given ours and insightful experience and in-depth knowledge on “pran company” in Bangladesh. We have given our best effort to make it a worthy one and each aspect of the problem is considered and studied as required. If any confusion arises or further explanation is needed, we shall be available to explain the matter to you as and when required despite when required despite having limitations.

Your benign and authoritative advice will encourage us to conduct further flawless research in

future.

Yours sincerely,

S.L Name Id

1. Syful Alam 2012010000322

2. Mahabub Alam 2012010000323

3. MD.Kamrul Hassan 2012010000321

4. ABM Rhyhan Hassan 2012010000316

ACKNOWLEDGEMENT

At first we are very grateful and thankful to the Almighty Allah. While preparing the report, we acknowledgement the encouragement and full guidance given by my course instructor “Md. Afnan Hossain” .without his relentless support, it would have been impossible to conduct this study. We express our gratitude to our instructor for providing us detailed feedback and technical assistance on the report .Besides, a number of people and institutions are to be thanked.

Company Back Ground

Poverty and hunger are curses”- mission of PRAN-RFL group. So their aim is “to generate employment and earn dignity and self-respect for our competitors” through profitable enterprises. For the achievement of this mission and aim the most recognized PRAN-RFL group was established and started manufacturing in 1982.Major General (Ret) Amzad Khan Chowdhry people of Nature, was the founder and the managing director of PRAN-RFL group. His son Mr.Ahsan Khan Chowdhury is the deputy managing director of this group. PRAN-RFL group is now one of the greatest and significant and most successful companies in Bangladesh. They are now challenging the other multinational companies. 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. Since its inception in1980, PRAN Group has grown up in stature and became the largest fruit and vegetable processor in Bangladesh. It also has the distinction of achieving prestigious certificate like ISO 9001:2000, and being the largest exporter of processed agro products with compliance of HALAL& HACCP to more than 70 countries from Bangladesh.

Current Situation

Keeping in view the corporate mission of the Group they have over the years diversified their activities in several areas. PRAN's biggest asset is their competent team of hands-on managers and dedicated employees. PRAN is Bangladesh's largest grower and processor of fruits and vegetables. Their contract growers cultivate the choicest fruits and vegetables, which are processed in their modern and hygienic factories to highest quality & international standards. Pran founded28 years ago by many entrepreneurs with experience in the product market of Bangladesh. Different types of products increasingly popular today ,forecasts suggest that annual sales of such products will grow at more than 49 percent for the next 3 years. Because our population is increasing day by day and products needed is also increasing. To gain market share in this environment, pran must carefully target specific segments with features that delivers benefits value by each customer group.

Mission

To generate employment and earn dignity and self-respect for our compatriots through profitable enterprises.

Vision

Improving Livelihood Objectives: AMCL and its Brand name “PRAN” have twin objectives “achieving social values with sustainable pecuniary advantage for all our stakeholders.”

Goals

To remain as the market leader with consumer items in food & beverage sector in the country & to be the market leader in same sector in abroad with minimum NP level of 10%. Quality maintenance and improvement. Satisfied customers. Hold on to the current customers and again gain customer loyalty. Gain competitive advantage over all the competitors. To double sales and expand production capacity every 7-8 years. To become one of the biggest names in international fruit and vegetable processing industry “PRAN” is currently one of the most admired food & beverages brand among the millions of people of Bangladesh and other 82 countries of the world where PRAN Products are regularly being exported.

Planning

One of the most common sets of activities in the management is planning. It is a preparatory step. It is a systematic activity which determines when, how and who is going to perform a specific job. It involves defining the organization’s goals ,establishing strategies for achieving those goals and developing plans to integrate and coordinate activities Planning is a detailed program regarding future courses of action. It is rightly said “Well plan is half done”. Therefore planning takes into consideration available & prospective human and physical resources of the organization so as to get effective co-ordination, contribution & perfect adjustment. It is the basic management function which includes formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources. There is no mystery about how PRAN reached it today’s position. All it took was great planning involved turning ideas into actua1ities by a series of logical steps.

PRAN followed some general and logical steps and they are:

By defining the major objective:

The major objective is the total job, the final result. There can be only one major objective, and this must be clearly visualized before any planning can be attempted. The major objective for PRAN is to remain as the market leader with consumer items in food & beverage sector in the country & to be the market leader in same sector in abroad with minimum NP level of 10%. They thoroughly communicate this to the entire organization.

By choosing alternative course of action:

When forecast are available and premises are established, a number of alternative course of actions have to be considered. For this purpose, each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization. The merits, demerits as well as the consequences of each alternative must be examined before the choice is being made. After objective and scientific evaluation, the best alternative is chosen. Managers of PRAN always surf the market to avoid vacuum in Market in aspect of existing product availability & in aspect of new product. The planners take help of various quantitative techniques to judge the stability of an alternative.

By formulating short term plans:

People fail because they try to achieve major objectives in one swoop. The task should be broken down into contributory minor objectives, each clearly defined and each capable of detailed planning. These plans include policies, procedures, rules, programmers, budgets, schedules, etc. As PRAN main objective is to remain the market leader, short term plans will include sales maximization, production maximization, and cost minimization. The company’s short term objective is to avail the target that been set before the year starts. These targets are also a part of the long term objective as well. Derivative plans indicate time schedule and sequence of accomplishing various tasks.

After the plans are implemented monitoring the plans are equally important to ensure that objectives are achieved. It is also important to appraise its effectiveness. PRAN does this on the basis of feedback or information received from departments or persons concerned. This enables the management to correct deviations or modify the plan. This step establishes a link between planning and controlling function. The follow up go side by side the implementation of plans in the light of observations made, and thus help PRAN to make more realistic future plans. In PRAN managers frequently check all the works that are to be maintained and take any corrective actions that are needed. PRAN is one amongst the fewest in Bangladesh who has a culture of profit sharing management as an appraisal for performing the jobs correctly.

Organizing

The practical expression of PRAN’s people and customer-oriented philosophy is known as the PRAN production system. This is not a inflexible company-imposed procedure but a set of principles that have been proven in day –to-day practice over many years. Many of these ideas have been adopted and imitated all over the world. PRAN production system has three desired outcomes: To provide the customer with the highest quality product, at lowest possible cost, in

a timely manner with the shortest possible lead times. To provide members with work satisfaction, job security and fair treatment. It gives the company flexibility to respond to the market, achieve profit through cost reduction activities and long-term prosperity. PRAN production system strives for the absolute elimination of waste, overburden and unevenness in all areas to allow members to work smoothly and efficiently. The foundations of PRAN production system are built on standardization to

ensure a safe method of operation and a consistent approach to quality. PRAN members seek to continually improve their standard processes and procedures in order to ensure maximum quality, improve efficiency and eliminate waste.

PRAN control and monitor every aspect of the manufacturing process. PRAN ensure the integrity of the enterprise and to maintain quality assurance, the implementation of standards. This means installing efficiently designed processes throughout the operation from product development, to supply chain and shipping. By adopting a strong, process-centric culture, your company can smoothly transition from chaotic and ad hoc management systems to a smooth-running operation that increases profits.

The manager of the organization treats their subordinates with very friendly way and also plays very important role to leading them effective way. The organization differentiates manager leadership power in different sector. The entire organizational strategies are worked with to achieve the company’s goal.

Leading

As it’s a huge organization comprises 10 companies so it tough to organize the whole work activity and maintain the worker. The company’s largest asset is its competent team of hands-on-managers and their dedicated employees. The manager of the organization treats their subordinates with very friendly way and also plays very important role to leading them effective way. The organization differentiates manager leadership power in different sector. The entire organizational strategies are worked with to achieve the company’s goal.Democratic leadership: The Company wants to share their views and ideas with worker and from them the company also expects some valuable ideas whenever take any decision. So the company believes in democratic leadership which gives importance to all the employer. Transactional leadership: Sometimes Company offer reward for some specific task they did it to motivate employee. PRAN has some expertise those make strategy for long-term motivating work environment and they used it towards the workers. Motivating Employee Motivation is the process that account for an individual’s willingness to exert high levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some individual need. Motivation mostly needed when the workers are low in their effort or performance. The

simplest and most intuitive approach to motivation is to satisfy an employee’s need. The management leader of the company motivates their employers giving reward, special offer, promotion and many others ways like: They make most workers motivated as they always try to make the best result out of their employees. They set a personal example to follow by their subordinates. The company shows the employee’s future basing on their job regarding their achievements and other staffs. Sometimes they offer outing beyond the job. Sometimes they give employee’s different incentive offer like- performance based reward, task based reward etc. For motivating the employer they set the right job and well environment for the employer. They also give the right to make effective decision for organization. How changes affect workers’ productivity PRAN has different sector and all the sector strategy are not same so they set different strategy for the entire sector to increasing company’s productivity. Whenever any changes are made the team manager let all know about the changes and make them training what will

be done at the forefront. This change also is not tough to the employer because seniors are come to communicate with the employer and make them understand about the changes.

Controlling

What is controlling? In today’s competitive global marketplace, managers want their organizations to achieve high levels of performance, and one way they can do that is by searching out the best practices successful organizations are using. By comparing themselves against the best, managers look for specific performance gaps and areas for improvement where better controls over the work being done are needed. So Control is the process of monitoring activities to ensure that they are being accomplished as planned, and correcting any significant Deviation.

Importance of control for PRAN-RFL group: In an organization planning can be done, an organizational structure can be created to efficiently facilitate the achievement of goals and employees can be motivated through effective leadership, still there’s no assurance that activities are going as planned and that the goals managers of PRAN-RFL group are seeking are, in fact being attained. Therefore control is important because it’s the final link in the management function. The value of control lies in the relation to planning, employee empowerment.

SWOT Analysis of PRAN

STRENGTH•Large company•Experience•Greater sources of finance•Greater control over sources of raw materials•Risk-pooling•Huge distribution network

OPPORTUNITY•Overseas expansion•Natural resources•Cheap labor•Ethnocentrism•Government incentives•Value Added Tax (VAT)•Duty Drawback facility•Cash Incentives•Huge demand

Weaknesses•Disproportionate promotions strategy•Control

THREATS•Price wars with competitors•Stricter health and technical standards

•Lack of first-mover’s advantage•In-house media planning and promotional activities•Distance and transportation cost•Perishable item

•Reduced benefits•Competition

Practice of Marketing Concepts

The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. The marketing concept relies upon marketing research to define market segments, their size and their needs. To satisfy those needs, the marketing team makes decisions about the controllable parameters of the marketing mix. Today most firms have adopted the practice of marketing concept. PRAN GROUP is a concept to fight against the core of people’s poverty hunger in Bangladesh in the shortest possible time through employment generation. PRAN-RFL group now makes a great position in the market of Bangladesh. Welfare measures are very important for a well-structured and well-recognized organization to gear up its working conditions and run its work with disciplined and smooth way. According to our survey, we found the PRAN-RFL group all ways tries to follow the Labor Act, 2006. Their thinking is to achieve the organizational target with full participation of the employees and give maximum welfare.

As it is intended to expand presence to every corner of the world and strive to make “PRAN” a truly international brand to be recognized globally. Design, implement, and facilitate annual marketing plan. Support and facilitate development and implementation of section, business marketing plans. Develop

Needs, Wants & Demands

Value & Satisfaction

Exchange, Transactions & Relationships

Products, Services &

Markets

marketing strategy. Plan and administer the Marketing Operations budget. Oversee business development activities. Develop and administer marketing database. Manage marketing dept.

PRAN-RFL Group has taken a special initiative for children and teens titled go to PRAN in a team, see and then take it. The management of the Group takes the program with a view to flourishing up intellect as well as makes the children and teens aware of the science of processing PRAN food products, said a press release. Under the program, students from class-I to class-X of any educational institutions will get opportunities to visit PRAN factory and then to express their observations on its various aspects.

The day-long program included various types of interactive events and quiz show also. Taking advantage, 300 students of Sunny Dale School of the city along with their teachers visited PRAN factory recently. They visited different production line of PRAN Industrial Park at Nursing and observe ocular demonstration of production of PRAN products. All the teachers and students were delighted and expressed satisfaction over maintaining proper hygiene and sanitation in the factory.

Structure of Supply Chain Management of PRAN-RFL Group

Food, Fruits, Beverage, Plastic Furniture, Plastic Hangar are the main raw materials of PRAN-RFL group Ltd. Manufacturer by main company. Southeast, Asia Africa, Middle East, Eastern Asia are the main & most distributor of PRANRFL group. The wholesalers are various warehouses. They are the largest food processing and Plastic Manufacturing Company in Bangladesh having 7 offices across the world. Our products are being exported to more than 72 countries of the world. The retailers are which available any country glossary shop.

Competitive Review:

The Emergence of new product, marked by Pran group, manufactures and carriers has pressured industry participants to continually add features and cut prices. Within a very short time Pran would start exporting to papur New Guinea, East Timor, Brunei, Mauritius Reunion, and Algeria, among other countries. At present it is exporting to 73 countries all over the world and it has been conferred the most prestigious export trophy for the last six consecutive years for its export activities. Due to gradual development of the quantity of Pran products and because of better marketing and distribution initiatives, it is creating hype among other countries. Competition from specialized products for drinks such ac Acme, 7up, are major factors as well .Key competitions include:*Coca-cola: Coca cola is a famous brand. It is a high growth brand that is spread everywhere. Its taste is good. Its producing or making processing is very sharp. Everyone choose coca cola. mango juice: Students and younger persons choose

Raw materia Rural Component PRAN

this one. Its taste’s good like pure mango juice. Its price is less. It is also very famous to all.*Firm fresh milk: Collected directly from their own Milk Collection Centers around the country from selected cows. Firm fresh milk is Ultra High Temperature (UHT) processed to maintain long life and retain all the qualities and richness of cows fresh milk.

*Radhuni : Radhuni pure mustard oil is manufactured from the finest grade of indigenous mustard seeds and purified in fully automated plant. Mustard seeds is need to produce it. It is a famous brand.*MUM drinking water: Mum natural drinking water conforms to WHO and BSTI guidelines. It is rich in minerals, well balanced and ideal for people of all ages. It contains valuable minerals our body needs every day. This water is packed in pet bottle, which is approved by FDA USA for food packaging .Despite this strong competition, Pran can carve out a definite image and gain recognition among the targeted segments. There are also many products that build their attraction to people. Chocolate, hot tomato sauce, ketchup, jam, jelly, borhani, orange juice, chanachur, rice, vinegar, biscuits, etc are very known to all.

Distribution Review:

In this section marketers list the most important channels provide an overview of each channel arrangement and mention any new developments or trends. Pran products will be distributed trough a network of retailers in the top high sellable markets. Among the most important channel partners being contracted are: Firstly if the product is made, than it is shown in the wave page. This is like another countries. Its price like all information will include. For in this countries sellable product means main packing product are divided into some group. Each group has five or six members and it has only one boss. The boss maintain all things. He or she then observe and declare that what place the products will go. It there is lack of product boss will server.

OBJECTIVES

Marketing Objectives:

•Maintain positive steady growth each month.

•Increase market penetration every quarter.

•Generate increased brand awareness quantified by reactions/feedback of customers at the trade shows.

Financial Objectives:

•Decrease customer acquisition costs by 1% a quarter.

•Continue to decrease variable costs through efficiencies gained from experience.

•Increase profit margins by 0.5% per quarter.

Product positioning strategies:

The product is a mango fruit juice, which we would like to position as a healthy alternative to carbonated beverages and other artificial sodas and drinks & foods. The mango juice will add variety to the diet for the people of UAE. That is why we want to position Pran foods a fast moving consumer good in UAE. To huge Bangladeshi expatriates living in UAE ,Pran will also serve a national symbol and be a source of pride. Though Pran’s quality is ISO 9001 certified it may have to increase its quality farther since it will have to compete against some of the world leaders in mango drink &foods manufacturers.

Pricing strategy:

We think that since there is a number of competing brands in the mango juice market, Pran should follow the market pricing strategy. The penetrative pricing policy should be used in Pran’s case because BANGLADESH is country with low per capita income ($ 1000) money is a factor to the consumers in BANGLADESH. Also the fact that there are a lot of high profiled brands, which are already quite competitively priced, makes penetration pricing less appropriate.

Practice of Marketing Concepts

There are five marketing concepts:

Production Concept

Product concept

Selling concept

Marketing concept

Social marketing concept

PRAN Group uses two of this concept for their marketing

Production Concept

They are fallow production concept. Because their products are widely available and highly affordable .They got large production and effective distribution Channel. Their Price of the products remains relatively low and they are available almost everywhere. Pran candy, Pran juice, Pran chanachur, etc are highly available and affordable in Bangladesh.

Marketing Concept

They first identify needs and wants of the target markets and delivering the desired satisfactions better than competitors do. Pran group identify Bangladeshi people needs and wants and produce Pran Gura masala, Pran Juice, Pran candy etc.

List of Strategic Business Units (SBUs)

Stars: Stars are high-growth, high-share businesses or products requiring heavy investment to finance rapid growth. They will eventually turn into cash cows.

Question marks:Question marks are low-share business units in high-growth markets requiring a lot of cash to hold their share.

Cash cows:Cash cows are low-growth, high-share businesses or products that are established and successful SBUs requiring less investment to maintain market share.

Dogs:Dogs are low-growth; low-share businesses and products that may generate enough cash to maintain themselves but do not promise to be large sources of profit for the organization.

Evaluation of SBUs by BCG Matrix

Stars:

Profit potential May need heavy investment to grow

Example; Pran Juice, Pran Candy etc

Question Marks: High growth, low share Build into Stars or phase out Require cash to hold market share

Example; Maggi NoodlesCash Cows:

Low growth, high share �Established, successful SBUs �Produce cash

Example;Pran Spice Powder Turmeric

Dogs: Low growth & share Low profit potential

Example; Maxx Cola (PET Bottle).

There are four Product-Market Expansion Grid Strategies

Market penetration

Market development

Product development

Diversification

Market penetration:

A strategy for company growth by increasing sales of current products to current market segments without changing the product. Pran Group fallows this product market expansion grid. They produce products and sale in same market segmentation. They produce Pran Milk and sale it inside the Dhaka city.

Product development:

A strategy for company growth by offering new or modified products to current market segments. Pran Group does not fallow this product market expansion grid.

Market development:

A strategy for company growth by identifying and developing new market segments for current company products. Pran Group fallows this products market expansion grid. Pran group starts business in the country. Now they are exporting their products outside the country.

Diversification:

A strategy for company growth through starting up or acquiring businesses outside the company’s current products and current markets. Pran Group fallows this products market expansion grid. When they start business then they produce few products such as Juice, candy etc. and sold it in the country. Now they are producing many products and selling in the country and exporting outside the country.

Company’s Strategies for Strategic Formulation

There are three Strategic Formulations

Overall cost leadership.

Differentiation

Focus

Overall cost leadership:

When the business works hard to achieve the lowest production and distribution costs so that it can price the products lower than the competitors and win large market share. Pran Group fallows this Strategic Formulation. They always tray to reduce production and distribution cost thus they can offer product in lowest price then their competitor. They win large market share for lowest price and good quality products.

Differentiation:

When the business concentrate on getting superior performance in an important customer benefit area valued by a large part of the market. The firm seeks for quality leadership. Pran Group does not fallow Differentiation Strategic Formulation.

Focus:

When a business focuses on one or more narrow market segments. And for attracting the customers it may use either cost leadership or differentiation. Pran Group does not fallow Focus Strategic Formulation.

Strategic Alliances of the organization

Product or Service Alliances:

When one company licenses another to produce and sale its products under some specific terms and conditions, or two companies jointly market their complementary products or a new product. Pran Group does not fallow this Strategic Alliances.

Promotional Alliances:

When one company agrees to carry a promotion for another company’s goods or services. And under this situation both companies are benefited; manufacturer for better promotion and promoter for special price .Pran Group does not fallow this Strategic Alliances.

Logistic Alliances:

When one company offers logistical services for another company’s product for a long-term basis under mutual agreement. Pran Group does not fallow this Strategic Alliances.

Pricing Alliances:

When two or more companies join in a special collaborations to fixed price. And in this situation not only the business houses, the ultimate customers are also benefited. Pran Group does fallow this Strategic Alliances. They join with BD Food to fixed their product price thus business house and customer benefited.

Conclusion

No ideology, no ism, no political theory can win a greater output with less effort from a given complex of human and material resources, without sound management. Although this firm is in a very good position

in the market, we would just make a suggestion that, they should offer more and more differentiated products through segmentation of the current market in more details. Of course, the economic capability of target customers must be carefully analyzed. Managers can communicate more and make survey to reach closer to the customers and create market offerings which are both for the betterment for the firm as well as for the society. This practical experience gathered from observing these established company of Bangladesh has just helped us to reach to a conclusion that – What nurtured the success of PRAN-RFL group?