ASSIGNMENT

ON
PRAN-RFL GROUP
STRATEGIC MANAGEMENT
COURSE CODE: MGT-501
SUBMITTED TO:
SIDDIQUR RAHMAN
ASSISTANT PROFESSOR & ASSOCIATE HEAD
DEPARTMENT OF BUSINESS ADMINISTRATION
PROGRAM: MBA
DAFFODIL INTERNATIONAL UNIVERSITY
SUBMITTED BY:

NAME ID

ALI AHASAN 222-14-514

DITI BISWAS 222-14-515

NISHAT TASNIM PROGGA 222-14-526

LAILA BITHEE EMMA 0242220004083058

SHEHAT HASSAN 0242220004083052

SUBMISSION DATE: 02-11-20

Company Profile:
"PRAN" is now the most well-known household name among millions of people in Bangladesh
and around the world. Since its inception in 1980, PRAN Group has grown to become
Bangladesh's largest fruit and vegetable processor. It also holds prestigious certificates such as
ISO 9001:2000 and is Bangladesh's largest exporter of processed agro products with HALAL &
HACCP compliance to more than 70 countries. PRAN was the first company in Bangladesh to
engage in contract farming, acquiring raw materials directly from farmers and processing them
through state-of-the-art machinery at our various factories into hygienically packed food and
beverages.

PRAN has established itself in every category of the food and beverage industry and can boost a
product range ranging from juices, carbonated drinks, confectionery, snacks, and spices to dairy
products. Today, our customers value "PRAN" not only for its authentic refreshing juice drinks,
but also for its delectable confectionery products with high visual appeal and exciting texture.
We intend to expand our global presence and strive to make "PRAN" a truly international brand
that is recognized globally.

RFL Stands for Rangpur Foundry Limited (It is a water pump and plastic pipe industry).It now
has 17 associated companies, which include beverage, property, agro-based, tube wells, plastic
pipes, and so on. These associated industries arelocated inNatore, Rangpur, Ghorashal, and
Dhaka.

External and Internal analysis of PRAN-RFL group

External Analysis: The essential Purpose of the external analysis is to identify the strategic
opportunities and threats in the organization’s operating environment that will affect how it
pursues its mission.

The External Analysis requires an assessment of:

 The industry environment in which the company operates.

 The Competitive structure of the company’s industry.
 The Competitive position of the company.
 The Competitiveness and position of major rivals
 The country or national environments in which the company operates.
  The wider socioeconomic or macroenvironment that may affect the company and its
industry.

Some external factors are given below:

Customer: Customers of the PRAN-RFL product are of various ages. Because PRAN-RFL
offers a wide range of products. People of all ages enjoy PRAN juice, chocolate, sauce, lychees,
soft drinks, and so on. They have a lot of plastic products that we need for our housework. Our
house will require RFL doors, sheets, pipes, a motor, and a tube-well. PRAN- RFL offers
services such as warranty and guarantee after selling products. PRAN-RFL is the most well-
known brand in our country.

Competitors: Every business must compete in the market. Partex as a plastic company, Taz
plastic, Gazi group, Akij Food and Beverage, Monem Group, and others are among PRAN RFL's
competitors. PRAN RFL provides the best quality goods to make a profit and keep customers,
which is why PRAN RFL is the most popular brand in the country.

Economic: PRAN-RFL Group made significant contributions to our national economy. It is

selling their product not only in our country but also abroad, bringing in a lot of foreign
currency. PRAN-RFL expands job sectors. It offers high-quality products at reasonable prices,
making our lives easier and more comfortable.

Political: Every organization has to deal with political issues and factors. Political forces exist
not only in a company's home country, but also in a foreign country. If PRAN RFL is to be
successful in that appealing market, they must be aware of the political pressures in Bangladesh.

Social: Every business or organization has societal responsibilities. It takes part in a variety of
social events.

Laws: Though the service or product becomes highly regulated, country laws can have a direct
impact on PRAN-RFL. Government regulations affecting the environment or communication,
for example, are beyond their control and may have a direct impact on their business.

Internal Analysis: The Purpose is to pinpoint the strengths and weaknesses of the organization.
Strengths lead to superior performance and weaknesses to inferior performance.
 The Internal analysis includes an assessment of:

 Manager must understand the role of rare, valuable and hard-to-imitate resources in
the establishment of competitive advantages.
 Appreciate how much resources lead to superior efficiency, innovation, quality, and
customer responsiveness.

Some internal factors are given below:

Level of Managements: PRAN RFI has three levels of management that are organized
vertically:

i. Operational level: The operational level management of PRAN-RFL is comprised of

the middle level management. It is also known as the Supervisory Level or the First
Line of Management. They devote more time to directing and controlling others.
ii. Technical level: IT advancement has a significant impact on PRAN-RFL. The
Departmental Heads, Branch Managers, and Junior Executives represent the Middle
Level Management.
iii. Strategic level: A company's strategic level is its highest level. The Board of
Directors is the highest level of management. Shareholders are represented by the
Board of Directors. The organization's success or failure is largely determined by its
efficiency and decision making. 

Organizational culture: The PRAN RFL culture is committed to their customers, as well as
responsible and friendly. The organization is democratic in nature. Every employee is free to
explain their comments. The management structure is vertical.

Financial Recourses: PRAN-RFL maintains strict control over operating costs and capital
expenditures in order to improve operational efficiency and productivity.

Competitive Situations: Attempt to express the situation in such a way that everyone can assess
how competition will change in the future and how each company will succeed.

Human Resources: PRAN RFL is concerned with the discipline of motivated employees and
the maintenance of their personalities, emotional and financial needs.
SWOT Analysis Of PRAN-RFL Group

PRAN-RFL is a company that sells a wide range of products in almost every continent and over
110 countries around the world. It serves to people of all ages with varying needs, desires, and
tastes.

Strength:Internal factors of the organization that strength its core competencies and strategic
outlook. Those are:

1. Economies of Scale: The company operates in nearly 110 countries around the world and has
a massive manufacturing land area that allows them to easily achieve economies of scale. It
provides a competitive advantage.

2. Market Share: PRAN-RFL group holds the biggest market share in markets in Bangladesh
among the local companies.

3. Quality Products: Consumers rely and trust in the quality of product because of their belief
in PRAN-RFL brands.

4. Strong distribution channel: PRAN-RFL Group has a strong distribution channel as the
industry's largest local force.

5. Moderate Competition: They create a large image in their native country, so they have a
small chance of losing their position to a competitor.

6. Diversified Products: The company provides a diverse product line with effective and
appealing packaging.

7. Cost-effective: PRAN-RFL has a global supply chain network that allows them to obtain raw
materials at a lower cost.

8. Own factory, dairy and manufacture: They have their own factory, dairy and manufacture.

9. Lower Price: Offers customers products and services at an affordable price.

10. Political support: PRAN-RFL group has strong political support as the largest local force in
industry.
11. Joint Venture: The company has a joint venture in order to achieve long-term success.

Weaknesses:Internal organizational characteristics that are harmful to achieving organizational

goals and objectives. Those are:

1. Competition among rivalry: PRAN-products RFL's face strong competition both locally and
internationally.

2. Substitute Products: In the local market, there are various substitute products. PRAN-RFL
may suffer in the long run due to a lack of substitute products for many of their products.

3. Short Life cycle of Products: The life cycle of various PRAN-RFL group products can be
very short if they fail to extend the maturity stage.

4. Positioning as local manufacturer company: Even though they have expanded their
business into other countries, they are still considered a local manufacturer company.

5. Management Inefficiency: The large size of the business and workforce makes perfect
management more difficult. As a result, it frequently leads to internal conflicts.

Opportunities:External factors that help in the achievement of organizational goals and

objectives. Those are:

1. Strong brand image: They already have a strong brand image not only in Bangladesh but
also in India, and they have the opportunity to expand their brand image globally.

2. Competitor's weak distribution channel: In terms of distribution channel, the PRAN-RFL

group has a stronger position than its competitor. They should take advantage of this opportunity.

3. Demand for health-conscious products: People nowadays prefer eating organic, healthy, and
nutritious food that is low in calories and using products that do not harm the environment. This
provides PRAN-RFL with an excellent opportunity to expand its product line with more
innovative products.
4. Export co-operation with multinational corporations: They can form alliances with various
multinational corporations to export their products to various corporations.

5. Emerging new market: By creating a substitute for each category, PRAN-RFL can expand
their business to cover new emerging markets.

6. Franchise business all over the world: They can franchise their businesses to spread their
brand throughout the world.

Threats:External factors that may have an impact on the performance of the business.

1. Economic downtown: Recession is the most serious threat to the current economy. Most
businesses close or make redundancies, causing people to lose purchasing power. It has a
significant impact on people all over the world. At such circumstances, coming times will be
very crucial for the company.

2. Strong competition: Extremely aggressive competitors may pose a threat to their ability to be
the market leader and maintain that position.

3. Global competition: Global competition is heating up. As a result, trade barriers are gradually
being removed. As a result, foreign products are now more easily entering the domestic market.
New businesses are developing innovative products.

4. Changing consumer behavior: They must monitor shifting consumer behavior and adjust
their product to meet consumer demand in their target market.

5. New local products: New local products are being released to the public. Because local
companies are small in size, they have fewer expenses and can offer products at a lower cost,
allowing them to easily capture the PRAN-RFL market share.

6. Availability of foreign products: The presence of foreign products in our country has always
hampered the operations of our local company.

7. Legal effects: If the government imposes any kind of tax law or imposes new production
limits, it will be extremely difficult to sell the products on the market.
 Strength
 Economies of Scale
 Market Share
 Quality Products
 Strong distribution channel
 Moderate Competition
 Diversified Products
 Cost-effective
 Own factory, dairy and manufacture
 Lower Price
 Political support
 Joint Venture
Weakness
 Competition among rivalry
 Substitute Products
 Short Life cycle of Products
 Positioning as local manufacturer
company
 Management Inefficiency
The planned development for PRAN-RFL for the next 10 years (2022-2031):
Corporate Level:
Opportunities
 Strong brand image
 Competitor's weak distribution channel
 Demand for health-conscious products
 Export co-operation with multinational
corporations
 Emerging new market
 Franchise business all over the world
Threats
 Economic downtown
 Strong competition
 Global competition
 Changing consumer behavior
 New local products
 Availability of foreign products
 Legal effects
Corporate level strategies are concerned with the factors that help a business compete in the
industry in which it operates. Corporate-level strategies drive a company’s business model over
time and determine which types of business and functional-level strategies managers will choose
to maximize long-term profitability. Corporate level strategies are important tools in the
strategic planning process because they affect the entire organization. The ten-year plan on
Corporate Level Strategies of PRAN-RFL is described below:

Growth Strategy: Growth strategy is a part of corporate level strategy, reflected when an
organization goes into international markets or markets for expansion or differentiation in the
products they offer to sustain in the market by increasing sales. As a major supplier of food,
PRAN-RFL has already shifted to the international market exporting to India and moving
forward to capture the South Asian market. PRAN-RFL should successfully implement corporate
level strategies ensuring achieving a sustainable competitive advantage that will lead to higher
profitability. The internal growth strategy has given PRAN-RFL much success as they have
successfully capitalized on internal economies of scale in Bangladesh. Apart from local market
growth, PRAN-RFL can also grow externally through Vertical Integration and Strategic
Outsourcing.

1. Concentration Strategy: As PRAN-RFL is developing product lines with real growth

potential. A concentration strategy can bring more success to the company. By concentration
strategy it means putting more resources into the product line so that it increases as the value
chain participation of the product increases. This strategy can be divided into two strategies
namely vertical growth strategy and horizontal growth strategy.

a) Implementation of vertical growth strategy: PRAN-RFL can expand its operations into an
industry that produces inputs to the company’s products (Backward Vertical Integration). Also
expands into an industry that uses, distributes, or sells the company’s products ( Forward
Vertical Integration). Through this PRAN-RFL can engage in the value chain of products in the
international market by taking the role of supplier or distributor in the international market. They
can pursue vertical integration to strengthen the business model of its original or core business or
to improve its competitive position:
 i. Facilitates investments in efficiency-enhancing specialized assets: Company can
invest in specialized assets because these assets allow them to lower their cost structure
or to better differentiate their products which facilitates them premium pricing.
ii. Enhancing product quality: By entering industries at other stages of the value-added
chain, PRAN-RFL can often enhance the quality of the products in its core business and
strength its differentiation advantage.
iii. Results in improved scheduling: Vertical Integration makes it easier and more cost-
effective to plan, coordinate, and schedule the transfer of product within the value-added
chain.

b) Implementation of Strategic Outsourcing:Strategic Outsourcing allows one or more of a

company’s value-chain activities or functions to be performed by independent specialized
companies that focus all their skills and knowledge on just one kind of activity. The benefits are:

i. Reducing the cost structure:The specialist company cost is less than what it would cost
to perform the activity internally.
ii. Enhanced differentiation: The quality of the activity performed by the specialist is
greater than if the activity were performed by the company.
iii. Focus on the core business: PRAN-RFL can focus attention and resources on activities
important for value creation and competitive advantage.

2. Diversification Strategy: Diversifying product offerings, diversifying markets which is

possible only when the growth rate of the organization is at its peak. Two types of variation can
be possible one is related variation and unrelated variation.

A) Implementation of related diversification:PRAN-RFL can implement related

diversification in the global market as they diversified the company in a related industry in the
local market. This would be a successful addition as they are in a cost leadership position and
have strong knowledge of their respective industries.

b) Implementation of unrelated diversification: PRAN-RFL can move into other industries in

the global market as it did in the local market. PRAN-RFL which can go for other industries
producing staple food and food items which are not related to the actual industry they are in
global market. PRAN can be a good example for RFL.

References:

PRAN-RFL Group, please see at this site:https://www.pranfoods.net/, Accessed on:

26/11/2022.

Term paper on PRAN group (2017), please see at this site:

https://www.scribd.com/document/407814084/Pran, Accessed on: 26/11/2022.

Analytical review of PRAN -RFL group (2014), please see at this

site:https://www.academia.edu/12117166/Analytical_review_of_Pran_Rfl_group, Accessed on:
26/11/2022.

PRAN to enter essentials market with big investment, Please see at this site:
https://www.tbsnews.net/economy/corporates/pran-enter-essentials-market-big-investment,
Accessed on: 26/11/2022.

PRAN-RFL final Project (2016), Please see at this site:

https://www.scribd.com/document/320985452/Pran-Rfl-Project-Final, Accessed on: 26/11/2022.