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
1.
2.

Name
Syful Alam
Mahabub Alam

3.

MD.Kamrul Hassan

4.

ABM Rhyhan Hassan

Id
2012010000322
2012010000323
2012010000321
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 organizations 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 todays 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 companys 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 PRANs 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 longterm 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 companys goal.

Leading
As its a huge organization comprises 10 companies so it tough to organize the
whole work activity and maintain the worker. The companys 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 companys
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 individuals willingness to exert high levels of effort to reach
organizational goals, conditioned by the efforts 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 employees 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
employees future basing on their job regarding their achievements and other staffs.
Sometimes they offer outing beyond the job. Sometimes they give employees
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 companys 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 todays 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 theres
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 its the final link in the management function. The value of
control lies in the relation to planning, employee empowerment.

SWOT Analysis of PRAN

STRENGTH
OPPORTUNITY
Large company
Overseas expansion
Experience
Natural resources
Greater sources of finance
Cheap labor
Greater control over sources of Ethnocentrism
raw materials
Government incentives
Risk-pooling
Value Added Tax (VAT)
Huge distribution network
Duty Drawback facility
Cash Incentives
Huge demand
Weaknesses
THREATS
Disproportionate promotions
Price wars with competitors
strategy
Stricter health and technical
Control
standards
Lack of first-movers
Reduced benefits
advantage
Competition
In-house media planning and
promotional activities
Distance and transportation
cost
Perishable item
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 peoples 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.

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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 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

Raw
materia

Rural

Compone
nt

PRA
N

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 this one. Its tastes 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 Prans 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 Prans 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
Cash Cows:
Low growth, high share
Established, successful SBUs
Produce cash
Example;Pran Spice Powder

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

Dogs:
Low growth & share
Low profit potential
Example; Maxx Cola (PET Bottle).

Turmeric

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 companys 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.

Companys 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 companys 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 companys 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?