1.

Merit Pay
✓ Based on performance e.g. best sales representative of the year.
✓ Based on educational qualification e.g. employee with MBA paid more than with only
BBA.
2. Incentives (Short term & Long term): Also known as be known beforehand. DFL always
take care about improving the performance of the employee, motivation of the employees,
so that they go for extra legs, provide extra afford for the organization the amounts are
provides these are incentives.
✓ Short-Term: Less than a year. e.g. Sales incentive on achieving particular target.
✓ Long-Term: Above one year. e.g. Provident fund, Insurance.
B) Benefits
Benefits are such payment or rewards along with basic salary which are provided by the DFL
so that employee can maintain life properly.
✓ Allowances: Transportation facility, Lunch facilities (Partially Subsidize).
✓ Work/Life Balance: Maternity Leave (4 months)
✓ Other Perks: Additional Benefits that did not included within contract such as casual leave,
sick leave.

❖ Compensation package for Danish:

Source: Online Job portal (bdjobs.com)

4.3.1 Purchasing Strategy
Purchasing strategy deals with obtaining the raw materials, parts, and supplies needed to
perform the operations function. FMCG industry of Bangladesh is highly competitive. To compete
with rivals DFL is to sell product with market price which is not easy always.
To reduce the bargaining power of suppliers DFL use multiple sourcing and orders a particular
part from several vendors. For example, for making Danish Premium Ghee DFL collects milk form
various local firms. Since there are numerous milk firm to provide for its need so, competition
among suppliers leads to enhanced quality, delivery, and lower prices of milk.

4.3.2 Research & Development Strategy

DFL usually conduct local market survey by their expert to understand what the end user is looking
for from the company. They usually collect data on what type of products the end user needs, how
many active customers they have, and what kind of products customers want from DFL.

4.3.3 Financial Strategy

This financial model focuses on a Discounted Cash Flow (DCF) valuation of DFL in the Fast-
Moving Consumer Goods (FMCG) industry. The highlights of this financial model are:
✓ Forecast of Income Statement, Balance Sheet, Cash Flow Statement and Financial Ratios
over the next 8 years
✓ 10 years of historic financials
✓ Detailed breakdowns to estimate sales, direct and indirect cost per ton, gross profit and
operating costs
✓ DCF Model
✓ Model key sheet for easy understanding of the model
✓ Sensitivity Analysis for Weighted average cost of capital (WACC)
✓ Executive Summary with a quick glance on the company’s key highlights