MGT489 Section 8 Marico Bangladesh

Report on Marico Bangladesh Limited
School of Business & Economics
Course Title : Strategic Management

Course Code : MGT489
Section : 08
Prepared for
QuaziTafsirul Islam (QTI)
Lecturer, Department of Management
North South University
Prepared by
Name ID
Fairuz Mahjabin Chowdhury 1721790030
Saidul Alam Rahat 1721598030
Md DelowerHossanDipo 1721126030
Sadman Rahman Rifat 1612490630
Joya Roy 1721080030
Arpita Roy 1721422030
Emtiaz Shahriar 1521438630
Sabrina Sadia 1420773030
MARICO BANGLADESH LIMITED
Date of submission: May 22, 2021
Executive Summary
Marico is one of the largest FMCG or Fast-moving consumer goods companies in
India. The company provides products and services in the area of health, fairness, wellness,
and lifestyle. The Headquarters of the company is situated in Mumbai, India. The company is
a multinational company. It has established it' operation in 25 different countries in the world,
including Bangladesh. The success behind Marico becoming popular among the consumer
base is its diverse lineup of products and services, its management strategy, and a robust
supply chain of products and raw materials from the suppliers. In this report, we had the
chance to analyze and represent the whole management strategies of Marico. This report
contains discussions on the company's Background, internal and external business
environment analysis, financial reports, SWOT analysis, distinctive competencies, and the
business model of Marico. The team has also made or prepare strategies for the next five
years (2021-2026). We have given some suggestions about the company's corporate-level
strategy, functional level strategies, and technological strategies. This suggested strategy will
help Marico sustain a competitive advantage over the market and expand its business in the
future. Also, after doing analysis, the team has revised the business model of Marico. We
have tried our level best to bring out possible outcomes recommendations. Our team also
provided possible governing solutions, control systems, and recommendations for Marico. In
this report, we investigated those challenges focused on how those could be overcooked. And
most importantly, we focus on sustainable profitability for Marico.
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Table of Contents
1. OVERVIEW OF THE COMPANY ........................................................................................... 6
1.1 History..................................................................................................................................... 6
1.2 Development & Growth .......................................................................................................... 6
2 IDENTIFICATION AND ANALYSIS OF COMPANY'S INTERNAL ENVIRONMENT ..... 7
3 IDENTIFICATION AND ANALYSIS OF COMPANY'S EXTERNAL ENVIRONMENT .... 8
3.1 Competitive Forces Analysis: Porter's Five Forces ................................................................ 8
3.2 Industry Life Cycle Analysis .................................................................................................. 9
4 PESTEL ANALYSIS ON MARICO BD LTD. ........................................................................ 10
5 SWOT ANALYSIS .................................................................................................................. 11
6 DEFINING MARICO'S BUSINESS AND DISTINCTIVE COMPETENCIES ..................... 14
7 FINANCIAL ANALYSIS ........................................................................................................ 15
7.1 Revenue & Gross Profit Trend Analysis............................................................................... 16
7.2 Net Operating Cash Flow Analysis ....................................................................................... 17
7.3 Net Profit Growth Analysis................................................................................................... 17
7.4 Total Assets & Total Liabilities Analysis ............................................................................. 18
7.5 Shareholders' Equity Analysis .............................................................................................. 18
7.6 Current Ratio......................................................................................................................... 19
7.7 Return on Equity ................................................................................................................... 20
7.8 Return on Investment ............................................................................................................ 21
7.9 Pro-Forma Projection ............................................................................................................ 22
8 COMPETITIVE ADVANTAGE .............................................................................................. 23
9 BUSINESS MODEL ................................................................................................................ 24
10 RECOMMENDATION TO INCREASE PROFITABILITY ................................................... 26
11 CORPORATE LEVEL STRATEGY ....................................................................................... 26
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11.1 Horizontal integration strategy.............................................................................................. 27
12 BUSINESS LEVEL STRATEGY ............................................................................................ 27
12.1 Segmentation Strategy .......................................................................................................... 27
12.2 Broad differentiation ............................................................................................................. 27
12.3 Cost Leadership .................................................................................................................... 28
12.4 Competitive Advantage......................................................................................................... 28
13 FUNCTIONAL LEVEL STRATEGY...................................................................................... 29
13.1 Material procurement ............................................................................................................ 29
13.2 Human resource Management .............................................................................................. 29
13.3 Marketing .............................................................................................................................. 30
13.4 Research & Development ..................................................................................................... 30
13.5 Operation............................................................................................................................... 30
14 RECOMMENDATION (Corporate Level, Business Level, Functional Level) ....................... 31
15 TECHNOLOGICAL STRATEGY ........................................................................................... 31
15.1 Recommendations ................................................................................................................. 32
16 NEW BUSINESS MODEL ...................................................................................................... 33
17 CORPORATE GOVERNANCE .............................................................................................. 35
18 STRATEGIC CONTROL SYSTEM ........................................................................................ 36
19 CULTURE OF THE COMPANY ............................................................................................ 37
20 GLOBAL STRATEGY OF MARICO BANGLADESH ......................................................... 38
21 ETHICAL VALUE PROPOSITION ........................................................................................ 40
22 BIBLIOGRAPHY ..................................................................................................................... 41
23 APPENDIX ............................................................................................................................... 42
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PART A
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1. OVERVIEW OF THE COMPANY

Marico Bangladesh Limited is Bangladesh's top three FMCG MNC companies and a well-
known beauty and wellness brand. Through an extensive distribution network that reaches
more than 790,000 outlets across the country, the company touches the lives of one out of
every two Bangladeshis with various brands in various categories such as hair nourishment,
edible oil, and male grooming. Its flagship brand, Parachute, completed 12 years of success in
Bangladesh, with an ever-growing base of loyal customers in October.
1.1 History
In 1971 a young graduate Harsh Mariwala joined the family business Bombay oil industry.
Then in 1974, he envisions a branded FMCG market for coconut and refined edible oils in
small consumer packs and sets up a national distribution network for Parachute. In 2009,
Mario started a public equity offering in Bangladesh, a first for one of its overseas
subsidiaries. Their journey in Bangladesh is as follow:
Marico Incorporated in 1999 And Started operations in 2000. Then Marico Bangladesh was
listed on Dhaka and Chittagong Stock Exchange in 2009. Hair code Hair Dye was launched
in 2009 and quickly gained a market share of over 15% in its first year. And Launched
Parachute Advanced Cooling Hail Oil in 2011. In 2002, Marico began bottling in Mouchak,
near Gazipur, and in 2012, they began copra crushing in Mahona, Bhavanipur. They
Launched Saffola Active Edible Oil, Livon Silky Potion, Set Wet Deodorants, and
Livon.Nihar shanty Badam amla and Hair Code Keshkala were launched in 2014.(Marico
Limited, n.d.)
1.2 Development & Growth

Through our award-winning brands, Marico proudly serves one out of every two
Bangladeshis. MBL is the third-largest MNC in the Consumer Products Goods (CPG) sector,
with first place in the Coconut Oil Category and second place in the Value Added Hair Oil
(VAHO) Category. In the Coconut Oil segment, Parachute Coconut Oil has the largest
market share. Bangladesh Brand Forum declared Parachute Advanced the Best Hair Oil
Brand in Bangladesh for 2016. Since 2008, Parachute is a top-ten brand. Human Resources
212 MBL Members Directly Employed 3000+ Associates (distributors, salesmen, and local
suppliers). Seventeen brands, 58 SKUs in the product portfolio. Financial resources
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Shareholders' Funds of 1580 BDT Million Fixed Deposits, Cash, and Cash Equivalents: 1464
BDT Million From 2015 to 2016 Refinery plant was established at Shirirchala Factory.
Parachute Advanced Ayurvedic Gold & Set Wet Hair Gels were launched. Awarded the
"Certificate of Merit" by the ICMAB. The ICSB awarded Marico "Silver" for Corporate
Governance Excellence. ICMAB awarded the "Certificate of Merit" for Best Corporate in
2017.(Marico Limited, n.d.)
2 IDENTIFICATION AND ANALYSIS OF THE COMPANY'S

INTERNAL ENVIRONMENT
The internal environment significantly impacts a company's long-term sustainability, and
Marico is no exception. The following are some of the factors affecting Marico's internal
environment:
I. Working Environment: Marico believes in their employee empowerment, as they

have mentioned many times in their statements that their employees are their power.
They consider their employees to be the most significant factor in achieving their
goals. Their young employees are in higher Posts because of flexibility. Marico is a
fantastic place to work because of its professional culture and collection of values,
allowing them to quickly recruit high-performing, diverse talent. Marico cares about
their employees' growth in this pandemic situation because they want to ensure a
healthy work atmosphere where they can enhance talent, diversity, protection, and
health. They are working from home at a higher level, also maintaining employee
protection at the production level. Marico has an Environment, Health, and Safety
policy in place because they regularly do things for their employees' wellbeing.
II. Research & Development: Marico constantlyresearches new products also for an
existing product. They always prior their customer review, so they are reaching the
new product. In the last year, they introduced cosmetics products like face wash,
shampoo, soap, etc. previously, they don't have any localized R & D team, but now
they have. They are now creating new formulas for the new product.
III. Quality operation: Marico invested a great deal of effort to ensure quality in any
way. Their quality assurance process begins with test facilities, then moves on to
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manufacturing, distribution, and finally, shelf-life monitoring. They have a monthly

audit to make sure their quality production also for safety.
IV. Management: Marico's top management, as well as the middle and lower levels, are
well-built. Their self-inventory system is also a modified version. They have one
defined and one undefined part. In the defined part, all the meeting schedules are
fixed; everything will maintain a timely. They have an excellent corporate governance
system.
V. HR & Benefits: Marico has a credibility culture in which employees are offered
opportunities and incentives based on their achievements. Different methods are used
to handle diverse groups of workers to classify their talent objectively in their
developed systems. Employees always get training for better performance, new
technology,a new formula, etc. In this pandemic situation, they don't cut employees'
salaries and give all kinds of facilities like bonus increment promotion,etc. They
provide attractive compensation packages to their employees and other benefits such
as incentives, bonuses, transportation, and provident funds, all of which help create a
connection between success and pay, aiming to achieve excellence.
3 IDENTIFICATION AND ANALYSIS OF THE COMPANY'S

EXTERNAL ENVIRONMENT
Marico competes in the FMCG industry of Bangladesh. The major competitors are identified
below in order of their rate of growth.
Their mother product is coconut hair oil which is 92% of their profit, so the main competitor
is Jui coconut oil from Square Pharmaceuticals Limited.
Other different hair oil competitors are Kumarika hair oil, Imami oil, Dabur Amla Hair oil,
and international brand. And from local company competitor is Cute Brand.
3.1 Competitive Forces Analysis: Porter's Five Forces

1. Risk of entry by potential competitors; for Marico, the risk of entry by competitors is
low because many market shares are holding. We can say that they are dominating the market
sector.
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• Absolute cost advantage: Existing businesses in this industry benefit from this because their
long history of activity has enabled them to gain expertise, knowledge, and access to lower-
cost capital, whereas new entrants cannot expect to do immediately after entering the market.
Switching costs: Existing businesses have already developed themselves as a brand and can
provide low prices as a result of economies of scale. New entrants would not offer prices as
low as traditional firms due to their failure to realize significant scale economies.
Considering these factors, the threat of new entrants is low.
2. Rivalry among established companies: number of competitors ismoderate. The growth

rate is reasonable. Cost competitors high. Cost of competitor'shigh. Consequently, if one
company lowers its price or introduces better alternatives, the other companies must follow
along to maintain their market share. Here we can say that if some offer like 20 ml extra in a
bottle, other companies will follow this to compete in the market.
3. Bargaining power of suppliers: in this industry number of suppliers is high. For raw
materials, control on quality is high. Forward integration is the law. If suppliers have a lot of
bargaining power, they can get a better deal from Marico. Control on price is high. They
produce high-quality product by own farming raw materials.
4. Bargaining power of buyers: if available substitutes are high, the customer will switch,
so bargaining power increases. Since different companies manufacture similar goods that can
be considered substitutes for one another, the buyer's bargaining power is high. For the
buyers switching cost is the law. When buyers have a lot of bargaining power, they start to
force prices down, reducing Marico's opportunity to make long-term profits.
5. The threats of substitutes: If substitutes are strong, Marico must either continue to invest
in R&D or risk losing market share to disruptors. For this, switching cost is low. The
availability of substitutes is high in the FMCG industry also the number of buyers is high.
3.2 Industry Life Cycle Analysis

The fast-moving consumer goods (FMCG) industry is one of the fastest-growing segments of
the economy. Bangladesh had a population of 164.67 million people at the end of 2017.
Because of the country's huge population, the FMCG industry has a bright future. With the
significant growth of GDP, private consumption growth has also increased over time.
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Food and other essential items have been in high demand throughout the lockdown. People
have been rushing to purchase a variety of finished products that are important in their
everyday lives. As a result, the fast-moving consumer goods (FMCG) industry is facing
significant challenges. Some businesses have already adjusted to the situation, while others
are still struggling.(Pantho, 2020)
Marico company in this pandemic situation they gain profit margin about 22% to 25% in last
three years. In this industry, they are the only company that sustained their profit margin.
By 2025, the global FMCG market is forecast to reach $1.54 trillion. Whereas Bangladesh's
consumption expenditure provides for 97 percent of national income and annual domestic
consumption exceeds $130 billion, the rise and survival of Bangladesh's FMCG industry is
driven by a few significant factors. As a result, Bangladesh is a gold mine for the FMCG
industry. During times of economic instability, this is an island of stability.(Numbers behind
FMCG Industry at Bangladesh: Growth opportunity perspective – Golden Harvest Home
Delivery, n.d.)
4 PESTEL ANALYSIS ON MARICO BD LTD.
✓ Political Factors
As Marico exports their raw materials from outside of the country, if the import law the tariff
had any changes, Marico had to go through that change. There are almost no restrictions on
doing business in terms of political problems such as government policies and regulations,
and the industry enjoys tax-free trade with 60 to 70 countries.
✓ Economic Factors
Company success depends on consumers, and consumers always want a good product at a
cheap price. So when competition increases in the market, different companies bring similar
products that help the consumer increase buying power. So if Marico wants to maintain its
profit margin, they have to keep a competitive price.
✓ Socio-cultural Factors
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Bangladeshi people tend to buy organic products more than chemical products. This factor
would impact a lot on Marico as most of their product is chemical-based. People of the rural
area use retail products, which affect the sale of Marico in some geographical markets.
✓ Technological Factors
Nowadays, online platforms have a massive impact on the FMCG industry. But if we notice,
Marico has a small presence in online media. So they should focus more on online customer
engagement. They should also work on employee's technological skill development.
✓ Environmental Factors
They use WTP technology for purifying their wastewater and reuse the water. They also sell
their waste to some selected vendors. As Marico Bangladesh is a multinational company,
they had developed a waste management system not to pollute the environment.
✓ Legal Factors
They are doing business in Bangladesh by maintaining all the legal procedures. Even in this
pandemic situation, they maintain all the safety rules and regulations imposed by the
government. They also maintain the country's export-import laws as they import most of their
raw materials from outside of the country.
5 SWOT ANALYSIS
Strength
1. Marico BD never compromises with its product value, and adding more value to their
product is their continuous process. They have a skilled product development team for
the constant development of the existing product. They always take their customer
review seriously. Suppose any of their customers give them any negative feedback
about any of their products. They instantly start work to solve that problem.
2. Marico maintains a balanced profit margin. They retain a 20-25% profit margin in the
last 3-4 years. In 2020 Marico had a 27.7% profit margin. Last year, most businesses
faced losses because of the pandemic where Marico manages to grow their profit
margin.
3. Marico BD has a Strong R&D team for market research. They analyze all the local
markets individually so that they can working on a specific need. As in every market,
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requirements are different from others so that they can make plans according to the
market need.
4. The loyalty of the employer toward the company is high. Marico BD is one of those
companies that did not go through downsizing in this pandemic situation, making the
employees more loyal toward the company. They also bring some health insurance
facilities for their employer to help them face any health-related difficulties.
5. Marico always targets different segments of the market. For example, they launch a
small sachet pack of their various products so that poor people can buy. They launch
shampoo, oil, hair serum, Vaseline, skincare products in mini packets that cost 5-10
taka. They bring this variation basically for garments workers and the lower-income
people.
6. Marico launches almost three more new products in many sectors, so they have a
diversified product list. Their T&D team continuously works on which product is on-
demand. They launch new products based on their research.
Weaknesses
1. One of their brand parachutes holds almost 50% of their goodwill toward the
customer. So if this product's quality is affected negatively by any chance, the whole
company will face a hard time.
2. Dependency on a single brand Parachute. Though Marico has lots of products, they
cannot make the customer like those products like Parachute. So we can assume that
they cannot do proper value proposition as they claim.
3. Marico invests a lot in creating brand value for the customer, which will cost a lot in
the long run because the customer's demand always increases day by day. So if
Marico wants to meet their increasing expectation, their expenses will also increase.
These expenses will hamper their whole profit margin.
4. For the limitation of the communication system products cannot reach in the village
area. Marico does not have their transportation system for their product delivery. So
as Bangladesh does not have developed roads and highways sometimes, they failed to
deliver the product in the rural area according to market demand.
Opportunities
1. Marico has more significant opportunities in the local market. In the rural market,
people prefer to use Jui hair oil and different retail product for beauty and skincare
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than Marico products. So if Marico focus to grow their market in a rural area, it could
be better for their future investment.
2. Marico can grow an online-based market. Recently they started to sell their products
on Daraz, Evaly, etc., online-based websites. But they do not have their online selling
system. So they can build their online market by developing their e-commerce side.
3. Marico can bring more variation and quality to their product. They can enter different
markets such as food or healthcare. They also can work more with their product
quality.
4. They can open their outlet to sell their products. Marico does not have any physical
store, which I think affects their business. As in this pandemic, we go through
lockdown for a long time, and many shops are closed, so if Marico has their physical
store, people will also be benefited from the company
5. As Marico is a multinational brand, they can attract foreign investors so easily by
their product value. So by proper planning and value proposition, they can catch this
opportunity.
Threats
1. As the FMCG industry has extreme competition, so Marico has vast competition. Jui
hair oil is the biggest competitor for their brand parachute. As Marico has different
types of products, they have different competitors for their various products segment.
So they have to compete with diverse company which is one of their biggest threats
2. The demand for organic products regularly increasing can negatively affect Marico as
most of their product is chemical-based. However, they use coconut for their hair oil
that is also chemical-based. In Bangladesh organic product is getting popularity day
by day.
3. Reduce of the customer because of some of their product quality. Some of their
product was not taken well by their customer so that they had to discontinue that
product. So should have more focus on their existing product quality and also do work
on market research. Because after launching a product, if the quality does not satisfy
the customer needs, that will hamper the company's goodwill.
4. The prices of the product of Marico are slightly higher than other brands. Though they
claim that their product has the best value a customer can ever ask for. But in this
competitive industry where customers have the negotiation power, it would be a more
significant threat for the company.
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6 DEFINING MARICO'S BUSINESS AND DISTINCTIVE

COMPETENCIES
How customer are needs being

satisfied?
By Distinctive Competencies
Business Definition:
FMCG Business
Company Name: Marico BD Ltd.
Who is being satisfied? What is being satisfied?
Customers Customer Daily Needs.
Marico Bangladesh has a more extensive portfolio that differs from other existing FMCG
companies in the market. They have a strong R&D team for specific market research,
upgrading current products, and bringing new products. They have their production plant to
ensure the quality of their product which is the most distinctive competencies factor of
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Marico BD. The main competitors of Marico do not own any production plant, which
decreases their product quality. So by owning a production plant, they already have
uncountable advantages.
7 FINANCIAL ANALYSIS
The table below shows the comparative financial analysis of Marico Bangladesh Limited
from 2015 to 2019 in BDT (Million). (Lankabangla Financial Portal- Live stock data of
Dhaka Stock Exchange (DSE), financial statements, research, chart and level 2 data, n.d.)
Marico Bangladesh Limited

Income Statement
Particulars 2015 2016 2017 2018 2019
Revenue 7,348.63 m 7,065.90 m 6,916.11 m 7,814.66 m 8,768.16 m
Gross Profit 3,306.03 m 3,181.09 m 3,205.82 m 3,585.14 m 4,295.46 m
Operating Profit/Loss 1,726.79 m 1,688.16 m 1,867.22 m 2,145.00 m 2,591.55 m
Profit Before Income Tax 1,828.32 m 1,805.15 m 1,926.97 m 2,243.75 m 2,749.74 m
Profit for the Year 1,344.57 m 1,295.07 m 1,440.19 m 1,642.63 m 2,023.39 m
Balance Sheet
Particulars 2015 2016 2017 2018 2019
Total Non-Current Assets 775.56 m 774.70 m 731.53 m 616.35 m 575.93 m
Total Current Assets 2,578.37 m 2,732.59 m 3,020.53 m 3,842.06 m 4,000.42 m
Total Assets 3,353.93 m 3,507.29 m 3,752.06 m 4,458.41 m 4,576.35 m
Total Shareholders' Equity 1,712.17 m 1,708.72 m 1,580.11 m 1,492.59 m 1,302.14 m

Total Non-current
Liabilities 26.89 m 44.26 m 44.30 m 49.86 m 64.91 m
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Total Current liabilities 1,614.87 m 1,754.31 m 2,127.74 m 2,915.96 m 3,209.30 m
Total Liabilities 1,641.76 m 1,798.57 m 2,172.03 m 2,965.82 m 3,274.21 m
Total Equity & Liabilities 3,353.93 m 3,507.29 m 3,752.14 m 4,458.41 m 4,576.35 m
7.1 Revenue & Gross Profit Trend Analysis
From the graph, we can see that in 2015 the sale was 7,348.63 Million, where gross profits
were 3306.03 Million. In 2016 and 2017, revenue was reduced by 4% and 2.17%,
respectively. But from 2018, radical growth was noticed, and it was maintained. On the other
hand, we see negative growth in gross profit in 2016. However, from 2017 the gross profit
growth has occurred. The overall analysis found that both revenue and gross profit have a
positive relationship and worked very similarly. We believe due to high competition or lack
of innovation Marico Bangladesh had to see negative growth. The highest level of sales was
recorded in 208, which was 11.50%, and the highest level of gross profit was recorded in
2019, which was 16.54%.
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7.2 Net Operating Cash Flow Analysis
In 2015 we can see that the operating profit was 1726.79 million. In 2016 it was decreased by
2.24%, which indicates that Marico incoming money was less than the outgoing money and
can lead to liquidity issues. However, from 2017 the operating cash flow started to increase.
The highest operation cash flow was in 2020, which is 20.82%.
7.3 Net Profit Growth Analysis
The above graph shows that Marico Bangladesh Limited's profit in 2015 was 1344.57
million, and in 2016, it was decreased by 3.68%. The fall in net profit reflects the poor timing
of income and expenses. Also, a lack of proper strategy could be a reason. However, from
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2017 the net profit growth started to increase rapidly. The highest level of development was
noticed in 2019, which is 23.18%.
7.4 Total Assets & Total Liabilities Analysis
From above, we can see that in 2015 Marico Bangladesh's total assets were 3353.93 million,
whereas total liability was 1641.76 million. In 2018 total assets were increased by 18.83%
where the liability was 36.55%, which suggests that the company has obtained a tremendous
amount of debt. Even though the total assets are increasing, this increase in total liability can
lead to liquid issues. In 2019 the real asset was only increased by 2.65%, where the total
liability was increased five times more which is 10.40%.
7.5 Shareholders' Equity Analysis
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From the gram above we can see that the total shareholders equity in 2015 was 1712.17
million and continuously decreased over the years. In 2016 it was decreed by 0.20%, but
from 2017 the shareholder's equity dropped drastically. The highest level of fall in
shareholders' equity was recorded in 2019, decreasing by 12.76%. The reason behind this
continues can be a decrease in net profit. However, we already saw that Marico Bangladesh
only faced negative net profit growth in 2016. So we believe that the reason behind this
decreasing shareholders equity is that Marico Bangladesh is issuing a high level of dividend
to its shareholders.
7.6 Current Ratio
Ideally, there is no perfect ratio. The current ratio and its impact differ based on businesses
and industries. However, a ratio less than one is considered to be a concern for the company.
Here, in 2017 the ratio was 1.42. In 2018 it reduced to 1.32 and later 1.25, which means
Marico Bangladesh isn't in the lowest place, but it should be improved. Otherwise, it won't be
well equipped to pay off its debts such as short-term loans, accounts payable, etc. If it
continues, Marico might have to face some severe consequences. So our recommendation for
this ratio is to decrease their debts by increasing their revenue pay off with cash.
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7.7 Return on Equity
As we mentioned earlier ratios differs due to difference in business type and industry. In the
FMCG industry, 10% to 15% is considered normal, and 15% to 25% felt good ROE. In 2017,
Marico Bangladesh had an ROE of 0.91, and later in 2018, it was increased to 1.10. So first
two years ROE is considered normal and suggests that the company is using more capital to
produce products. Lower ROE means lower efficiency. However, in 2019 the ROE was
increased to 1.55, which is a good ROE, which means Marico Bangladesh has improved its
efficiency. Our recommendation for Marico Bangladesh is to sustain this position in terms of
ROE.
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7.8 Return on Investment
Return on investment measures how much Marico Bangladesh was earning for each dollar
they are spending. In 2017, we can see that the return on investment is 0.38 and later reduced
to 0.37. It's a slight change, but both the figure suggest that Marico Bangladesh didn't have a
good return on investment. The reason can be that over-investing in some products that were
failed produce revenue growth. However, we can see that in 2019 the return on investment
was increased to 0.44, which means Marico Bangladesh has identified theirs over investing
sector and taking care of it. Even though in 2019 it raised a lot, we still recommend that
Marico Bangladesh maintain a return on investment around 0.50 to pay off debt or buy the
asset if necessary.
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7.9 Pro-Forma Projection

Based on the previous five years (2015-2019) data, we have projected the next 3 years pro forma
projected income statement and balance sheet for the Marico Bangladesh Limited
Marico Bangladesh Limited

Pro-Forma Income Statement
Particulars 2020 2021 2022
Revenue 9,553.10 m 10,408.30 m 11,340.07 m
Gross Profit 4,680.00 m 5,098.96 m 5,555.42 m
Operating Profit/Loss 2,649.43 m 2,902.05 m 3,177.29 m
Profit Before Income Tax 2,653.07 m 2,905.69 m 3,180.93 m
Profit for the Year 1,861.69 m 2,043.47 m 2,241.52 m
Average growth rate 0.0895
Pro-Forma Balance Sheet

Particulars 2020 2021 2022
Total Non-Current Assets 520.01 m 566.56 m 617.28 m
Total Current Assets 3,941.15 m 4,293.96 m 4,678.36 m
Total Assets 4,461.16 m 4,860.53 m 5,295.65 m
Total Shareholders' Equity 604.44 m 604.44 m 604.44 m
Total Non-current Liabilities 317.44 m 317.44 m 317.44 m
Total Current liabilities 3,539.29 m 3,938.66 m 4,373.78 m
Total Liabilities 3,856.72 m 4,256.09 m 4,691.21 m
Total Equity & Liabilities 4,461.16 m 4,860.53 m 5,295.65 m
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8 COMPETITIVE ADVANTAGE
From the interview, we have found that Marico Bangladesh's competitive advantage is their
product quality. It might seem very general, but if we consider the side factors, it will be
more effective. Marico Bangladesh has their production plant in Bangladesh where their
competitors don't have their own production plant and use a third party to make their
products. For Example"Jui" brand was mentioned. Marico Bangladesh works directly with
the local suppliers and even provides information on how to produce the quality raw
materials so that their product quality stays top. Since Marico Bangladesh owns most of the
share, it's easier for them to get access to quality raw materials than their competitors. Also,
Marico Bangladesh imports its raw materials from Indonesia. To ensure the quality of raw
materials of the product, they check the supplier's Background to make sure that the raw
materials are reliable for long-term use.
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9 BUSINESS MODEL
Key Partners Key Activities Value Customer Customer
: Local raw :Manufacturing Proposition Relationships Segments
materials :Packaging : Product quality : Direct Feedback :Students
supplier collection through
(Farmer level) :R&D : Competitive phone calls. : Garments
price workers
: International :Distribution : Feedback
Raw materials : Organic product collection through :Income Level
suppliers : Marketing vendors
(Indonesia, : Different :Rural Area
India) variations
products :Urban Area
: Customer
Key Resources focus product Channels
: Own Production production : E-commerce sire
Plant and design. : Vendors
: Modern : Outlets
Technology
: Sophisticated
R&D Laboratory
Cost Structure Revenue Stream

: Fixed Cost (Office operations, Salary, : Revenue through Vendors
Training programs cost, Organization : Fixed Pricing
communication program, maintenance cost, : Direct Selling through the E-commerce site
etc.)
: Variable Cost (Major supplies cost that
includes LC cost for international and credit
for local)
24
PART B
25
10 RECOMMENDATION TO INCREASE PROFITABILITY

As per the International business Marico Bangladesh clocked 20 percent constant currency
growth in recent years. Throughout the domestic sales, Marico's rural markets continued to
lead the way in traditional trade. From our previous part of the analysis, the key portfolios of
Marico have rebounded strongly as the COVID wave subsided. Still, the near-term impact of
the ongoing wave is difficult to forecast on the domestic business. Though Marico holds
strong evidence in the rural and semi-urban regions, Marico's performance should continue to
improve further, focusing on Digital, Analytics, and Automation methods as per following:
Marico should focus on sustained volume growth of their categories, consolidation of market
shares, and nature of its flagship brands. Marico can focus on their sustainable growth in
international business and growing portfolio of new products along higher-margin lines to
ensure their profitability for near future business. Besides these implementing a marketing
strategy needs the support of technology at Marico. As per our analysis, the marketing and
technology work closely to ensure sustainable operation. We found that online platforms
have a massive impact on the FMCG industry. But Marico has a small presence in the
technology sector of their online media. So, in this part, we recommend that Marico
understand the balance of development of products and technologies for a marketing strategy.
Marico has to understand and balance the critical factors in technology as focusing on
consumer engagement, selling with a focus on e-commerce and data analytics to drive agile
business decisions.
As per our analysis, these steps will help improve consumer engagement, drive sales through
e-commerce and build data analytics capabilities for faster and efficient decision-making and
digital technologies that enable automation to improve resource allocation and enhance sales
productivity to grip profitability in the coming years of Marico.(Marico Annual Report 2018-
19, n.d.)
11 CORPORATE LEVEL STRATEGY

Marico Company is known for its steadfast quality. Marico is a quick shopper merchandise
industry. The items incorporate toiletries, cleanser, beautifying agents, tooth cleaning,
shaving items, cleansers, individual consideration items like hair oil, antiperspirant, cooking
oil, breakfast things, etc. They make businesses for millions of individuals and added to the
26
economy of Bangladesh. Marico initially went into the oil market by concurrence with bubble
for utilizing its coconut oil brand parachute and vegetable oil Saffola. After that, Marico
made a few securing.
11.1 Horizontal integration strategy

The most conspicuous among these is the securing of Procter and Gamblers hostile to lice
treatment. In 2001 Marico gained the Parachute and Saffola brands from Boil. Marico
subsidiary Marico Bangladesh Ltd acquired the soap brand 'Aromatic' from Aromatic
Cosmetics Ltd, a Bangladesh-based individual consideration item organization, for an
undisclosed sum.
12 BUSINESS LEVEL STRATEGY

Marico is providing various from their brands; they brought different hair products in the
market. Following that, they got a skincare beauty product. In Bangladesh, they are most
successful with their hair lineup product. Male grooming product is now also popular among
the man. People who are concern with their health are choosing their edible oil for their better
health.
12.1 Segmentation Strategy

Marico follows division procedure and has various contributions for the distinctive fragment.
Marico offers numerous items under the Saffola brand for individuals who continually battle
to remain fit and receive better propensities to make their wellbeing venture agreeable and
straightforward. The brand Parachute advance moves individuals to put resources into a
relationship and step outside of self-question. Set Wet offers antiperspirants, gel for men.
Livon Serum for recent college grad young ladies who are exceptionally aware of their
haircut and appearance. Essentially Marico offers diverse items like hair oil, skin health
management, antiperspirants and food sources, and so forth for various portions.
12.2 Broad differentiation

Marico is acceptable at separating its item from its rivals which is one of its particular
competencies. A portion of its things is the market chief, as Nihar Shanti AmlaBadam,
Parachute Hair oil, and so on as it gives the best quality. It additionally makes them offer
27
premium portions and furthermore offers limited item in the worldwide market. Marico too
guarantees the accessibility of its items in the retail shop, for this they have awesome
dissemination, which is one of its particular competencies too. Even though Marico separates
its objects, however, it can offer ata low cost. Being the market pioneer in many sections and
its fragments are enormous enough, Marico appreciates economies of scale that low charge
cost for quality items. So as Marico enjoys these benefits, it follows a comprehensive
separation technique for doing global business.
12.3 Cost Leadership

Marico is one of the leading companies in Bangladesh with their product and services. Their
company generated a turnover of about 2.02 billion with their product such as Parachute,
Saffola, Nihar, Shanti amla, Livon, Hair code, Medicare, and set wet. Their expansions
possess administrative roles with substantial market shares in many classes, such as Coconut
oil, Hair oils, Post wash hair care, Anti-lice Treatment, Premium refined consumable oils,
specialty texture care, etc. Marico is a minimal expense pioneer in these business sectors
using these marked items. Cost-based rivalry is so severe that it is a major
12.4 Competitive Advantage

Marico focuses on improving individuals' lives through marked items and administrations,
giving the best client experience conceivable. With expanding prominence in skin health
management items and administrations and quality food varieties, Marico sees a chance to set
out new business open doors in skin and medical care markets for possible clients. The
Organization works in two enterprises: Branded Products - the Fast Moving Consumer Goods
(FMCG) industry and Branded Services (Skin Care Services). The FMCG business has
fragments like Personal Care, Detergents and Soaps, Skin Care, Hair Care, Health and
Hygiene Items, Oral Care, Refined Edible Oils, Coconut Oils. The association is banding
along with new organizations, which could empower it to separate data essentially more
satisfactorily. The association has seen that lead buyer examination is irrefutably more
significant than coordinating audits. As shown by the board, dedication projects will be
offered on a significantly greater scale going ahead. Operates in geographic centers
prompting production network and media synergies.
28
13 FUNCTIONAL LEVEL STRATEGY

13.1 Material procurement
Procurement deals with the sourcing activities, game plan, and key assurance of items and
organizations, which are significantly earnest to an association. It is the main activity in each
gathering association. The thing's quality depends upon extraordinary quality unrefined
materials. If the associations ensure the most raised measure of rough materials, the
affiliation can make good quality. Marico Bangladesh source a part of their simple materials
from outside countries like Japan, Chain, India, Vietnam, and Malaysia. At the reason for
import, they are paying higher evaluated commitment, VAT and Taxes which augments our
expenses furthermore, this is similarly a weakness. Marico ensures first-rate rough materials
with the objective that they can give the best quality item to clients.
13.2 Human Resource Management

The Human Resources Department is the one wherein the arranging and movement programs
are finished. Close by other HR capacities, plan and movement have become an essential
segment. Those days passed when the arranging was seen as silly, a trivial exercise, assets,
and cash. These days, the course of action is theory considering how divisions, such as shows
and associations, HR, creation, saves, etc., depending upon their endurance. In like manner,
Marico is sure that the course of action is an awe-inspiring association and weapons against
less profitability. Like this, to complete the productive HR exercises of the authority, the
connection should have an unimaginable availability and advance the course of action to
revive the capacities and information of the specialists as shown by the prerequisites of the
affiliations. This would actuate the specialists to fulfill the destinies of the alliance and, in
this way, augment its component of work consistency. Effectively, the availability and
improvement program focused fundamentally on mechanical creation framework workers or
people working for social affair affiliations. These days, such thorough preparation isn't
adequate. Alliances should change to new mechanical changes, develop new segments, and
givethe chiefs and augmentation capability a common nature to stay strong. Also, delegates
need aptitudes in social occasion improvement, primary drive, correspondence, progression,
PC, etc. In like manner, from time to time, they ought to plunk down with senior
organizations, what's more, see the critical capacities and sorting out some way to achieve the
affiliation's fundamental targets and objections. Occasionally, the chiefs acquire some ground
for what's to come tothe progress of the agents. It is possible that these improvement
29
exercises will not help them in their present work environment; nonetheless, later, these
laborers will become authoritative benefits and will expect a pivotal task to improve
furthermore, grow the use of the association.
13.3 Marketing
To achieve a goal market, Marico uses three sorts of show channels. Marico livelihoods
correspondence channels to send and get messages from target buyers. The association uses a
couple of direct advances, such as singular selling, Catalog Marketing, and telephone
publicizing. Immediate advancing outcomes in dynamically powerful selling and lower cost,
which change into lower cost for the customer, offsetting the customer. This empowers the
association to react quickly with interest. They intertwine chronicles, magazines, programs,
radio, TV, mail, telephones, sees, flyers, and the Internet. Past this, the exchanges are sent
through appearances, attire, the closeness of motivations behind the offer, and different
strategies. Marico joins more exchange channels increasingly to slaughter the most ordinary
monolog channel.
13.4 Research & Development

Marico improved by continued solid customer demand, added creative work to progress new
arrangement, producing explicit Architecture, fashioner, architect, and creating economical
essentialness. Marico's creative work energizes this spirit through the association, ensuring
innovative and inventive new considerations are completed as quickly and capably as could
sensibly be anticipated, serving to offer responses for the essential challenges. The middle
competency of Marico Group has reliably been the inventive development, thing quality, and
transcendent customer organization
13.5 Operation
Marico broadens capability two or three zones of choice tasks with authorities with the help
of crucial improvements that get together as additions in conflict genuinely coming to fruition
of neighborhoods. This work diminishes massive spending by changing assets and
productivity, improving quality with unlimited information and conspicuous data, and
reviving creation by controlling transportation on time and reacting ideally and nimbly.
Marico applies an arrangement of approaches, crucial frameworks appropriate for their
associations, and indisputable markets. Plan of Goods and Administrations, Total Quality
Management, Process and Limit Design, Job Design and Human Resources, Production
30
network the board, Stock Management, Scheduling, and Maintenance are a couple of Marico
Activities Management decision zones.
14 RECOMMENDATION (Corporate Level, Business Level, Functional

Level)
❖ Marico ought to put more in the R&D division for getting the client needs more
unequivocally and make strides as per their needs and requests.
❖ Leverage the brand name parachute to advertise the brand parachute baby care to its
customers by word of mouth.
❖ Participating in the Bangladesh trade fair would attract the customer view, get to
know each product, and get more effective coverage.
❖ Through trade, fair participation parachute can effectively promote their new baby
care product lineup.
❖ Because of the pandemic, the company can showcase its product segment and lineup
on the social platform.
❖ Marico can offer their representatives to purchase the supply of the Organization.
Afterbuying the stocks, the representatives will likewise get a segment of the benefit.
The more gift the Organization makes, the more cash it will get. So they will begin to
work more earnestly and all the more successfully to make more benefit.
❖ The SWOT analysis pointed out that they can capture the digital platform and sell
their product on their online platform.
❖ Threats from the SWOT analysis show that they do not have much product based on
organic material there for their R&D can focus on bringing products based on organic
ingredients.
15 TECHNOLOGICAL STRATEGY
In recent times, the business world is more shifting towards technological advancements. A
multinational company like Marico uses the aid of technology in different sectors of the
business. According to the company, they are trying to implement digital technology and data
31
analysis to predict consumer behavior and computer pattern, and market demand more
effectively. This will help the company innovate its products and help them create new
products and channels of distribution according to market demand. Also, Marico is taking
the initiative to go green shortly.
In Marico's corporate-level strategy, they can aim for better strategic outsourcing and
superior diversification. And in terms of the business-level plan, they can implement focused
differentiation. This can only be achieved with the excellent implementation of technology
and data analytics. By starting these programs in Bangladesh, Marico will better understand
consumer needs at a fundamental level and give them opportunities to create market-oriented
products and personalized products to head towards its goals. Nowadays, we can see that
there is a boom in the e-commerce sector in our country. Consumers are more using e-
commerce sites to buy their necessary products; they are moving away from traditional brick-
and-mortar stores. For this very reason, Marico should focus on getting a collaboration with
local e-commerce sites to deliver their product to consumer's doorsteps. This will further the
corporate-level strategy for strategic outsourcing.
15.1 Recommendations
1. Marico can create a first mover advantage by providing a product or service which is
unique in the market. By doing that, they can make a monopoly in the market. Also,
they can control the market and reduce imitation. Also, being the first mover, Marico
will benefit from technological leadership; they will have control over the market
resources and help by switching costs.
2. In this very competitive market, being speedy and agile in the market can be an
important factor if the company survives. For this reason, Marico should focus on the
technological aspect, which can make the company more flexible and agile.
3. To increase customer satisfaction, Marico can use the technological strategy like
creating an app or service to provide the consumer with various information about the
company's products. It cans a killer app of the company. The app can help the
consumer select a product from the company's catalog to pick and choose a suitable
product for the consumer.
32
16 NEW BUSINESS MODEL
Key Partners Key Activities Value Customer Customer

: Local raw materials :Manufacturing Proposition Relationships Segments
supplier (Farmer level) : Packaging : Product quality : Direct Feedback :Students
collection through
: International Raw : R&D : Competitive price phone calls. : Garments
materials suppliers workers
(Indonesia, India) : Distribution : Organic product : Feedback collection

through vendors : Income Level
:Outsourcing : Marketing : Different :product rating
companies variations products system through apps : Rural Area

and product reviews
: E-commerce sites :Person and and feedbacks : Urban Area

market-
Key Resources Channels
: Local vendors and oriented
: Own Production : E-commerce sire
outlets products
Plant : Vendors
: Modern : Outlets
: Low costs
Technology :Own Website
through
: Sophisticated Mobile App
Horizontal
R&D Laboratory
integration
: Natural green
products : Installation of
app for selling.
Cost Structure Revenue Stream

: Fixed Cost (Office operations, Salary, Training programs cost, : Revenue through Vendors
Organization communication program, maintenance cost, etc.) : Fixed Pricing
: Variable Cost (Major supplies cost that includes LC cost for : Direct Selling through E-commerce site
international and credit for local) : Direct selling through in-house app
33
PART C
34
17 CORPORATE GOVERNANCE
MARICO is expanding, as shown by its international portfolio and strategic alliances
initiatives. Marico holds its offerings to multiple countries like Bangladesh, Vietnam, Middle
East, South Africa, and Egypt. In the international market, the portfolio is like Bangladesh
49%, Vietnam 22%, Middle East 9%, South Africa 7%, and Egypt 3%. Successfully the
company spread its offerings to other parts of the world. They now export to different
countries. As a result, demand is growing. The standard pyramid-shaped organizational
structure and governance are insufficient to meet the anticipated demand. As a result, the
government should be versatile, maybe focused on teams. Getting away from conventional
governance mechanisms is also crucial because it has often resulted in bad policies, litigation,
and, as a result, a negative brand image and credibility. Even though Bangladesh has
corporate governance laws, large taxpayers do not always follow them.
As a consequence, sick politics and disorganized motivation may emerge. All of these can
only be influenced by increased demand. In addition, the newer governance frameworks can
include proper production management and motivating factors for workers, resulting in
healthy competition within the business.
Concentrate on the Organization's problem. In most cases, an organizational issue arises in

Marico. The following methods have been established as possible solutions to the problem.
1. Equity-based compensation: This typically entails providing stock options to

managers. A stock option gives you the right to buy company stock at a specific price.
2. Defining the nature, scope, and boundaries of the non-routine problem: after the
subsidiary has experienced the non-routine case, they must determine its spirit, size,
and limitations. The existence of the issues will make it difficult for subsidiary
managers at first.
3. Produce more financial statements and conduct thorough audits on them. Outsourcing
the audit activity can be beneficial in some cases.
4. Explaining the implications of the purchase constraint. The risk of being purchased by
another corporation is a takeover limitation.
35
Employee benefits are essential for improved organizational productivity. The control
mechanism alone would not align all stockholders', senior management's, and the rest of the
Organization's incentives. Positive incentive programs should be implemented to inspire
employees; for example, Google's employees are often given goals to achieve. Superior
performance, consistency, creativity, and customer responsiveness should also be prioritized.
18 STRATEGIC CONTROL SYSTEM

Marico needs to provide a proper strategic control system to track, monitor, and evaluate the
recommended organizational structure and strategies during their implementation to track,
monitor, and evaluate the effectiveness of the recommended administrative structure and
procedures during their performance. Ensure that their plans are being implemented
effectively and receive the desired return; be ready to make the necessary improvements to
the program, and include employee benefits for motivation.
We propose that Merico implement a strategic control structure that includes the following
elements:
1.Personal Control- Since Marico has a decentralized organizational structure in which

functional level managers can make critical decisions, top-level managers must continue to
monitor the performance of practical level managers to ensure that they are operating to
contribute to the company's expected objectives being achieved. And the choices they make
are consistent with those methods. The supervisor will be able to correct any improper
behavior on the part of the employees, and the employees will share any problems they are
having. Around the same time, it could be impossible for the manager of a large company
like Marico to supervise all of his or her subordinates' activities directly. In this scenario, the
CEO may, for example, manage his or her immediate subordinate, who would then supervise
his or her subordinates, and so on to the lowest level subordinate.
2. Premise Control- It is unrealistic to expect the variables and their influences found in
Porter's Five Forces and PEST analysis to remain unchanged for the next five years. For
example, the political situation could change, such as the government introducing new
regulations for the MNC industry; or new entrants could increase due to the industry's
profitable environment. As a result, the planned strategies must be adjusted to reflect these
adjustments to compete for a larger market share in that situation. Taking such measures as
36
monitoring whether the plans are consistent with the current market climate would be part of
premise management.
3. Implementation Control- This is a form of input control that will be used at each point in
the strategy's implementation to determine whether that step is producing the expected results
and whether the plan should be continued.
4. Control by incentives: Since it will be the employees' responsibility to perform well to

produce the desired outcome by executing the intended plans, they must always be motivated
to put forward their best effort. Rewarding workers can accomplish this by creating new ideas
in a way that they find appealing and inspiring. For example, they may take customer
feedback about store employees and customer reviews about how well the customer
representative assisted them with their problems in their online shop. Based on the ratings,
the employee with the highest performance can be given a bonus for representing the
company to the customers. Employee morale will be boosted, and they will be more
committed to fulfilling the targets allocated to them, resulting in accomplishing the
Organization's objectives.
Marico lab has been briefed on the Organization's structure. It has a pyramid-shaped design
in the corporate office and two divisions in the factories or depots. Functional and support
departments are included in every division. The managing director or the deputy-managing
director is responsible for reporting to all department heads.
19 CULTURE OF THE COMPANY

The first and most important factor in ensuring that the suggested strategies are implemented
is strong engagement and support from Marico Limited's top management. They will be the
ones making strategic decisions about resource allocation for implementing the planned
strategies. They will also be the ones to motivate workers by ensuring that they receive their
due input and incentives. A diverse workforce with high skills, expertise, experience, work
commitment, and a sense of unity is also needed for the strategies to succeed. Implementing
the plans would necessitate a market environment review to determine if customers would
welcome the company's strategy to implement something new in Merico's product or service
offering and if the company will differentiate itself in the industry's competitive environment
by growing into new functional and geographical areas. Since workers may be directly
37
involved in business environment research, the Organization must have ample room for them
to express their thoughts and ideas on these topics. As a result, they'll have a more robust
understanding of what's going on in the industry and what consumers want. Since
cooperation may contribute to increased awareness and learning, the Organization's culture
should allow for an atmosphere where workers can share ideas. Marico Limited hires
educated, skilled, trained, and experienced people to assist the Organization in achieving its
goals. The Organization views its employees as one of its most valuable assets. It consistently
invests in them through various training programs to improve their productivity and prepare
them to contribute their technological, analytical, and innovative abilities in the next giant
leap. Since Merico is purely committed to a performance-oriented culture, workers who meet
or exceed the company's goals are rewarded with additional rewards such as incentives,
vacations, and other perks to encourage them to maintain a high level of consistencyin their
work. However, this does not imply that other workers are not well compensated. Different
groups of workers are managed by the company, each with their approach to getting things
done according to schedule.To summarize, Marico manages its workers straightforwardly and
appropriately. When it comes to the company's working culture, workers are given an
atmosphere in which they are encouraged to participate in team discussions and learn.
Additionally, since they work for the Organization on the ground floor, they are granted the
right to express their ideas and opinions, allowing them to understand business strategies and
consumer needs. Despite this, Merico Limited's current company culture is supportive of our
suggested strategies.
20 GLOBAL STRATEGY OF MARICO BANGLADESH

The global strategies are suggesting to Marico Bangladesh that they should apply a
sustainable growth strategy where they increase sales from existing customers and also, they
can grow their company to get their present clients to do repeat purchase. A sustainable
growth strategy helps maintain a target capital structure without issuing new equity,
maintaining a target dividend payment ratio, and increasing sales as rapidly as the market
condition allows. Also, Marico can expand to a new market, and they can try a new
distribution channel. As one of Marico's main strategic objective is to maintain its product
quality high and also keep the existing market share, this sustainable growth strategy would
38
help Marico Bangladesh to maintained increased their sales from existing customers and also
help them to expand to the new market and can try new distribution channel.
One of Marico Bangladesh real challenges are small Presence in the technology sector of
their online media. Marco should improve this because now online platforms have a massive
impact on the FMCG industry. They can try to enhance their presence in digital technology
by doing run a small Google campaign, Marico can try Facebook Ads, Marico can learn new
reporting tools and methods, also they can talk with experts who can help them to improve
their presence in the digital world, presence in online media would help them to expand new
market fast and also help them to increase their sales. Marico should provide more resources
to develop its production of raw material to decrease proper dependency on supplies. We
would suggest Marico increase distribution network, both foreign and local, and presence in
online platforms that help them expand the new market. Marico has a substantial market
share;thus, Marico overlooks future challenges, which are difficulties in online media. An
online presence is essential for outbound marketing because it reinforces Marico and its
target market. Consumers need to know that they can reach the brand easily. Developing this
information online helps potential consumers get the brand quickly. Marico Bangladesh
needs to keep up with and be aware of and improve its presence in the technology sector.
Marico Bangladesh should get reducing overhead costs by increasing production capacity.
Now they do not have any competitors; in the future, if any competitor came, they face a lot
of difficulties. That's why they should reduce or keep the cost of operation low is to increase
production volume. It is suggested that the Marico industry must utilize its total capacity to
reduce its overhead cost. The cost structure and its proper allocation also help find out which
products are more profitable and which are less beneficial. Therefore, Marico can effectively
allocate its resource to the production and sale of more profitable products. We should
suggest they use a strategic alliance with foreign companies. Marico Bangladesh must find
out suitable partner manages to enter a new market. A strategic partnership is a potential for
faster speed to market.
We would have recommended Marico expand geographical coverage and maintain

international standards. Geographical coverage allows a business with limited budgets to be
more cost-effective. It also helps identify people living in a similar region who mostly have
identical needs and wants. It allowsthe business to focus its marketing efforts. Marico must
39
aggressively increase its geographical coverage with all the products across the countries. We
would suggest another global strategy that Marico ought to seek after expanding in
productive related business. Marico Bangladesh can explore this experience and enhance its
very own business in progressively beneficial related business.
21 ETHICAL VALUE PROPOSITION
Below is a suggested Ethical value proposition statement for the employees of Marico
Bangladesh.
1. Every employee in Marico Bangladesh must receive the exact treatment regardless of
their culture, religion, race, or lifestyle.
2. Employees of Marico Bangladesh must be exercising sound judgment in professional
practice and adherence to ethical practice.
3. Every employee should be cautious enough not to expose confidential information
about their company.
4. Every employee must be faithful to their clients and allegiance to the public trust.
5. Every employee should be loyal to Organization the business by following the set
ethical standers, and violations will lead to taking the appropriate corrective action.
6. Every employee should avoid receiving any gifts or other benefits that will create
biases in the decision-making.
7. Appropriate business records must be maintained timely and with fairness.
8. Information that goes public will be delivered evidently.
9. An employee should do their job with truthfulness, fairness, and sincerity.
10. The company should retain safe standards to protect the environment from pollution
caused by the manufacturing process and a safe workplace environment.
11. Every employee must stop getting involved in activities that will create a clash
between the employee's interest and the company.
12. The authority has full right to amend the code of ethics.
40
22 BIBLIOGRAPHY
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https://www.marico.com/page/DigitalReport2018-2019/strategy-and-enablers.html
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https://marico.com/bangladesh/investors/documentation/annual-reports
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41
23 APPENDIX
MGT489-Section
8-Marcio Bangladesh.xlsx
42
CONTRIBUTION TABLE
Name ID Task
Fairuz Mahjabin Chowdhury 1721790030
Joya Roy 1721080030 Part A

Saidul Alam Rahat 1721598030
Md DelowerHossanDipo 1721126030
Emtiaz Shahriar 1521438630 Part B

Sadman Rahman Rifat 1612490630
Arpita Roy 1721422030

Part C
Sabrina Sadia 1420773030
43

MGT489 Section 8 Marico Bangladesh

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MGT489 Section 8 Marico Bangladesh

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Report on Marico Bangladesh Limited

School of Business & Economics

Course Title : Strategic Management

Date of submission: May 22, 2021

1.2 Development & Growth .......................................................................................................... 6

2 IDENTIFICATION AND ANALYSIS OF COMPANY'S INTERNAL ENVIRONMENT ..... 7

3 IDENTIFICATION AND ANALYSIS OF COMPANY'S EXTERNAL ENVIRONMENT .... 8

3.1 Competitive Forces Analysis: Porter's Five Forces ................................................................ 8

3.2 Industry Life Cycle Analysis .................................................................................................. 9

4 PESTEL ANALYSIS ON MARICO BD LTD. ........................................................................ 10

5 SWOT ANALYSIS .................................................................................................................. 11

6 DEFINING MARICO'S BUSINESS AND DISTINCTIVE COMPETENCIES ..................... 14

7 FINANCIAL ANALYSIS ........................................................................................................ 15

7.1 Revenue & Gross Profit Trend Analysis............................................................................... 16

7.2 Net Operating Cash Flow Analysis ....................................................................................... 17

7.3 Net Profit Growth Analysis................................................................................................... 17

7.4 Total Assets & Total Liabilities Analysis ............................................................................. 18

7.5 Shareholders' Equity Analysis .............................................................................................. 18

7.6 Current Ratio......................................................................................................................... 19

7.7 Return on Equity ................................................................................................................... 20

7.8 Return on Investment ............................................................................................................ 21

7.9 Pro-Forma Projection ............................................................................................................ 22

8 COMPETITIVE ADVANTAGE .............................................................................................. 23

9 BUSINESS MODEL ................................................................................................................ 24

10 RECOMMENDATION TO INCREASE PROFITABILITY ................................................... 26

11 CORPORATE LEVEL STRATEGY ....................................................................................... 26

11.1 Horizontal integration strategy.............................................................................................. 27

12 BUSINESS LEVEL STRATEGY ............................................................................................ 27

12.1 Segmentation Strategy .......................................................................................................... 27

12.2 Broad differentiation ............................................................................................................. 27

12.3 Cost Leadership .................................................................................................................... 28

12.4 Competitive Advantage......................................................................................................... 28

13 FUNCTIONAL LEVEL STRATEGY...................................................................................... 29

13.1 Material procurement ............................................................................................................ 29

13.2 Human resource Management .............................................................................................. 29

13.3 Marketing .............................................................................................................................. 30

13.4 Research & Development ..................................................................................................... 30

14 RECOMMENDATION (Corporate Level, Business Level, Functional Level) ....................... 31

15 TECHNOLOGICAL STRATEGY ........................................................................................... 31

15.1 Recommendations ................................................................................................................. 32

16 NEW BUSINESS MODEL ...................................................................................................... 33

17 CORPORATE GOVERNANCE .............................................................................................. 35

18 STRATEGIC CONTROL SYSTEM ........................................................................................ 36

19 CULTURE OF THE COMPANY ............................................................................................ 37

20 GLOBAL STRATEGY OF MARICO BANGLADESH ......................................................... 38

21 ETHICAL VALUE PROPOSITION ........................................................................................ 40

1. OVERVIEW OF THE COMPANY

1.2 Development & Growth

2 IDENTIFICATION AND ANALYSIS OF THE COMPANY'S

I. Working Environment: Marico believes in their employee empowerment, as they

manufacturing, distribution, and finally, shelf-life monitoring. They have a monthly

3 IDENTIFICATION AND ANALYSIS OF THE COMPANY'S

3.1 Competitive Forces Analysis: Porter's Five Forces

Considering these factors, the threat of new entrants is low.

2. Rivalry among established companies: number of competitors ismoderate. The growth

3.2 Industry Life Cycle Analysis

4 PESTEL ANALYSIS ON MARICO BD LTD.

6 DEFINING MARICO'S BUSINESS AND DISTINCTIVE

How customer are needs being

Who is being satisfied? What is being satisfied?

Customers Customer Daily Needs.

Marico Bangladesh Limited

Revenue 7,348.63 m 7,065.90 m 6,916.11 m 7,814.66 m 8,768.16 m