Submitted By: Saiful Islam Chowdhury

ID: 1711038

Submitted to: Iftekhar Mahfuz

Course Title: Strategic Management (MGT 490)

Section - 2

Semester: Spring 2021

 P a g e |2

LETTER OF TRANSMITTAL

17th December, 2017

Iftekhar Mahfuz

School of Business

Independent University, Bangladesh

Subject: Submission of final report on ‘Strategic Management

Dear Sir,

I would gladly like to inform you that I have finally prepared the project assigned
to us for the course MGT490. It is our honor to submit the final report on
“Strategic Management” as a partial fulfillment of the requirements for the
course. As we are just in the learning phase this report really helps us to
understand the main topic clearly and develop our knowledge greatly. Therefore,
this report will surely help us to explore the global technology and Industry
management as well.

I humbly request you to accept this report for your kind evaluation. I’m
immensely thankful for the support we gained from you throughout the course
and we hope that our knowledge and understanding is portrayed via our report.
I’m thanking you for providing us such an option to increase our knowledge
through this report.

Sincerely,

Saiful Islam Chowdhury

 Executive Summery

The pioneer in fruits and vegetable processing is PRAN in Bangladesh. Here in

this document, I have provided work on PRAN food industry. The history,

development and growth of the company are analyzed briefly. The internal and

external environment of the company is totally different. Internally the people

working do their best to make every project successful. PRAN has now become

a giant in this sector. They are not confined within BD anymore. The brand value

and experience are the biggest strength for them. Their mission is to generate

employment and earn dignity and self-respect for their compatriots through

profitable enterprises. With a vision to improve livelihood they are now utilizing

the strengths and opportunities wisely. This company really lack customer care

services and product life cycle. They are now launching products as export

quality in the country but their remains little doubt in the ingredients they use.

They have strong distribution channel which generates huge profit in short time.

Porter’s five forces are analyzed. The financial performance of the company is

provided for consecutive four years. On the contrary the strategic plan for next 5

years is also provided in this document. The reader is going to gain knowledge

about the technological and economic strategies to follow, how to implement

them practically, and recommendation for further approaches.

Table of Contents
LETTER OF TRANSMITTAL................................................................................................................ 2

Executive Summery ......................................................................................................................... 3

Overview of the company ............................................................................................................... 5

Industry Analysis ............................................................................................................................. 6

Competitive Environment and Changes in the Competitive Environment ................................. 7

SWOT Analysis .......................................................................................................................... 9

Most valuable competitive advantage ....................................................................................... 12

External Economic Factors and their Effect on the Industry .................................................... 14

Regulatory, Political, and Legal Concerns ................................................................................ 16

Key Challenges Facing the Industry .............................................................................................. 17

Recommendation based on SWOT ....................................................................................... 18

Company's stops to face or navigate those challenges ................................................................ 19

Recommendation based on financial analysis ...................................................................... 22

Recommendation based on Industry analysis ...................................................................... 24

Conclusion ..................................................................................................................................... 32

Reference: ..................................................................................................................................... 33
Overview of the company
PRAN is the pioneer in Bangladesh to be required in contract developing and
secures rough material clearly from the agriculturists and strategies through best-
in-class contraption at their few preparing plants into neatly stuffed food and
drinks things. The brand has developed itself in each class of sustenance and
refreshment industry and can help a thing keep running from Juices, Carbonated
Drinks, Confectionery, Snacks, and Spices to even Dairy things. PRAN expanded
its activity into PVC classification in 1996 and in plastic part in 2003. PRAN had
a dream of making an immense request all-around of those rural items delivered
by local ranchers. The key was to process the agro items and increment timeframe
of realistic usability along these lines. The creation line goals are association had
present day parks of 500,000 square meters, which is totally equipped with best-
in-class mixture molding machines, ejection with Conversion point of
confinement of in excess of 20,000 tons for consistently. RFL at show utilizes
1600 shape through 500 machines, 04 apparel and 250 removal machines having
own gadget workplaces. There are 12,000 specialists committed to giving revamp
and quality plastics and PVC things.

The growth rate of PRAN is now in high rate. PRAN-RFL Group, the market
pioneer in the handled sustenance and plastic portions, has now set its sights on
turning into an imposing player in the abroad markets as well. To satisfy the
aspiration, the gathering has intended to extend substantially quicker than any
time in recent memory before. Dozens of new items - from solidified
nourishments to desserts, poultry, nuts, toys, long-life cake and plastic - will be
added to the item crate in the following one year. They have an objective to
develop our fare by no less than 30-40 percent consistently.

A company’s internal environment can be understood well by knowing about the

internal resources and internal capabilities of that company. So the internal

resources and capabilities of PRAN Company are described below:

 PRAN competes with foundry, plastic, food and beverage, property industries.

But for this report, we are working on food and beverage of PRAN. So PRAN is

competing in foods and beverage industry. PRAN’s biggest competitors are Akij,

Square, BD food, ACI etc. The competitors are also doing well in the market.

There are needs of the customers for foods and beverages in the market. People

are becoming addicted to buy processed foods to save time. So, the industry of

food and beverages are rising day by day.

Industry Analysis
Since 2000, the food and beverage industry are growing rapidly in Bangladesh.

There is potential and stable for this industry. Around 19%of the industrial

manufacturing productions are done by the food and beverage industry of

Bangladesh. 2.45% labors are working in this industry directly or indirectly. Not

only in Bangladesh, the food and beverage industry is impacting on the global

market as well. Bangladesh is exporting foods and beverages in more than 90

countries around the world.

 Fig: Annual growth of food and beverages industry

We can understand that the food industry is growing in our country every year.

Despite of huge competition and threats in this industry it is growing.

Competitive Environment and Changes in

the Competitive Environment

The Microenvironment incorporates every one of the components near the

organization that impact emphatically or adversely and its capacity to make an

incentive for and association with the shoppers. The Microenvironment of PRAN
sustenance’s incorporate five segments. The first is the associations inside

condition— its few divisions and administration levels as it influences advertising

administration's basic leadership. The second part incorporates the advertising

channel firms that coordinate to make esteem: the providers and showcasing go-

betweens (brokers, physical dispersion firms, promoting administration offices,

budgetary mediators). The third part comprises of the five sorts of business

sectors in which the association can offer: the buyer, maker, affiliate,

government, and global markets. The fourth segment comprises of the contenders

confronting the association like ACME. The fifth part comprises of all the open's

that have a genuine or then again potential enthusiasm for or effect on the

association's capacity to accomplish its targets: money related, media,

government, resident activity, and nearby, general, and inner publics. So, the

microenvironment of PRAN nourishments comprises of six powers near the

organization that influence its capacity to serve its clients

The Company and the greater part of alternate performers work in a bigger large-

scale condition of powers that shape openings and posture dangers to the

organization. The large-scale condition is normally divided for the reasons of

examination. This investigation generally alluded to as a PESTLE examination.

There is fundamental six ecological elements that influencing PRAN

sustenance’s. These elements are political, prudent, innovative, ecological, lawful

and social. Every one of these variables in a roundabout way influence the

organization yet the organization can't control them.

SWOT Analysis

The examination concentrates its light on the four distinct elements of a specific

business firm Strength, Weakness, Opportunity and Threat. These four

components, by the by, predicts the future activity of a business concern.

Strength:

There is a load of quality which are has a place with the Pran nourishments. Those
are –

PRAN is an outstanding and built-up organization. Great bundling and valuing

procedure, they have a decent administration, adroit and prepared worker. Item

quality of nearby item is worldwide standard. Consumer loyalty: Good Quality

Products fitting in with neighborhood tastes, wellbeing and clean guidelines.

Moderate cost inside the compass of target purchasers. What's more, above all

else they have a decent limited time movement. In - house publicizing

organization gives full promoting help. Significant accentuation is on TV

promotions as this is the most prevalent Media accessible. Half of the yearly

spending plan is committed to TV. New advertisements for Mango Juice Bottle,

Aseptic Juice, Tea Radio, Press, Cinema, POS, Outdoor promotions (Billboards,

Wall Painting) additionally utilized as a part of advancement Outdoor scope

(PRAN Branding) all finished Bangladesh.

Weakness:
As PRAN is a neighborhood mark so there are two normal shortcomings affecting

them. Those are - Political peril likewise impacts and Lack of current preparing

offices. Likewise, there is an absence of low maintenance laborer.

Opportunity:

As there is an absence of good nearby brand so they have a chance to have the

capacity to wind up the no-1 mark in Bangladesh. Additionally, extend the

business in different nations of the world, grow the business in other sight and

above all PRAN has a chance to enhance the innovation.

Threat:

Rivalries with other such organizations like ACME, Kazi nourishment businesses

and any sort of organization who create such sustenance’s like PRAN deliver.

Likewise, there are a few

vulnerabilities, for example, social, political, efficient vulnerability dangers.

Defining business includes Who, What and How satisfaction is faced by PRAN

Food Ltd. PRAN has taken initiative to meet the demand of almost all levels of

customer. They have different foods and nutrition of different price group. All-

time is category in which all low budget tong shop items are provided. They
have a tagline “Olpo khide, beshi shomadhan”. They also have beverage items.

And snacks, chips, frozen foods, dairy products etc. they are meeting the

demand of all food and nutrition of consumers.

Different levels of customers have different needs. A segment wants low price

items. On the contrary, another segment wants quality food. So, PRAN meets up

all such needs. They provide quality food with lucrative and protective

packaging. People find their food items safe to have instead of local non brand

items available in shops. As the price of their items is very affordable people are

satisfied with them. I personally chose their product even if I have to pay a little

more.

The taste of their food and beverage items is also very appreciable to consumers.

Their might have some issues or rumors about their beverage items but in the

perspective of our country other competitors are doing the same. So, they are kind

of bound to sustain in the market. Finally, we should realize that PRAN is meeting

up the demand of all categories of food and beverage items in different price

levels. And the consumer needs are met up ensuring a satisfactory level.
 A distinctive competency is a capability or proficiency unique to an organization

which enables the organization to operate somehow superior to its competitors

and provide a unique value proposition in the functional level of the business. In

easy words which makes a company unique or different from its competitor is

distinctive competencies. Indicator of distinctive competencies’ success is better

customer service and brand loyalty. The distinctive competencies of PRAN

which made the organization unique are given below:

• Largest and strongest distribution channel

• Extensive promotion throughout the year

• Well skilled labor force

• Exceptionally professional sales force

• Won national export trophies for 13 consecutive years

Most valuable competitive advantage

The most valuable factor of PRAN Group which is mainly responsible for

PRAN’s competitive advantage is that PRAN Group has the largest and
 strongest distribution channel. This large and strong channel helps PRAN to

maintain the efficiency, quality and customer responsiveness which ultimately

result is superior competitive advantage. Their sales representative and

distributing channel is across every Zila of Bangladesh. In the extreme rural area

where transportation system is not well developed, there consumers could also

find PRAN’s product. This has happened because serving the rural customer and

serving their product to every corner of the country is PRAN’s one of the main

objective from the start of the organization which is reflected by full meaning of

the name PRAN (Programme for Rural Advancement Nationally). Particulars

2016 2015 2014 2013

Turnover 8,796,778,000 7,611,213,000 6,321,274,000

5,483,619,000

Gross Profit 3,317,127,000 2,524,361,000 2,129,242,000

2,087,964,000

Profit Before Tax 1,228,511,000 1,022,343,000 894,799,000

905,555,000

Profit After Tax 860,939,000 752,790,000 721,163,000

704,636,000

Shareholders’ Equity 2,767,153,000 2,323,615,000 1,988,226,000

1,684,464,000

Total Assets 4,282,362,000 3,568,101,000 3,424,689,000

3,055,465,000

Total Current Assets 2,826,670,000 2,291,222,000 2,264,647,000 2,011,724,000

Total Current Liabilities 1,382,275,000 1,146,112,000 1,333,642,000

1,271,816,000
 By looking at the financial situation of past 4 year we can interpret that:

• Turnover rate is growing over the year means revenue is increasing which
is a good sign

for the company.

• Gross profit is growing over the year which is a good sign for the
company.

• Profit before and after tax both are growing over the year which is a good
sign for the

company.

• Shareholders’ equity is growing over the year means retained earnings are
included every

year in form of investment which is a good sign for the company.

• Both Total asset and current asset is growing over the year means business

is getting larger which is a good sign for the company.

• Current liability is growing over the year means the company is taking

more loan over the years which is a good sign for the company if company

has the capability to payout loans in time.

External Economic Factors and their Effect

on the Industry

Financial performance of Pran Company:

Earnings per Net Asset Value Net Profit After Price Earnings % Dividend
Year % Dividend
share Per Share Tax (mn) Ratio Yield
2000 42.20 258.39 33.76 9.87 20 4.80
2001 52.48 284.60 41.99 7.05 20 5.41
2002 54.26 312.82 43.41 6.91 25 6.67
2003 55.48 343.39 44.39 7.67 24 5.64
2004 50.39 362.27 40.31 13.31 24.00 3.87
2005 50.96 386.55 40.77 7.86 26.00 6.49
2006 36.18 396.11 28.95 10.67 26.00 7.00
Now we compare the financial performance of Pran Company with the apex foods company. So we present the
financial performance of apex Foods Company.

Apex Food:

Net Asset Value Net Profit After Price Earnings

Year Earnings per share % Dividend % Dividend Yield
Per Share Tax (mn) Ratio
2000 16.05 632.71 9.15 0 10 2.57
2001 16.58 639.29 9.46 15.82 10 3.81
2002 14.92 634.68 8.51 18.88 12 4.26
2003 22.75 646.48 12.97 15.10 12 3.49
2004 26.29 659.77 14.99 17.41 13.00 2.84
2005 22.77 679.61 12.98 15.21 15.00 4.36
2006 21.76 686.37 12.41 6.00 16.00 4.00

By looking at the ratio analysis of past 4 year we can interpret that:

 • Both current and quick ratio indicates whether the firm has the capability

to pay out short term loan. As it is increasing over the years it is good sign

for the company.

• Both debt to equity and debt to asset ratio indicates the financial structure

of the company that how much asset is financed by debt or equity. Debt

financing is profitable

for the business rather than equity because financing through debt is the

cheaper than financing through equity. But it is only applicable to those

companies which are capable of paying debt in time. Both ratio is

getting down for PRAN means PRAN is recently depending less on debt

and becoming more dependent on equity.

• Inventory turnover ratio indicates how quickly the inventories are being

sold. The ratio is increasing over the years which is a good sign for the

company.

Regulatory, Political, and Legal Concerns

Stability of Government Policies: Although the preferred political climate for a

global firm is stable and friendly, organizations may still profit and succeed in
traditionally unfavorable conditions. The most important idea is that the
government is stable and the set of rules or codes of behavior that affect business
are predictable and adaptable. If the potential for profit exists and is permitted by
government policies, a global firm can still function.

There are 5 main political causes of instability that affect the international
markets:

Some forms of government seem to be inherently unstable

 Changes in ruling political parties
Extreme nationalism
Animosity targeted toward specific countries
Trade disputes

Key Challenges Facing the Industry

At present business is very much complex because of even changing customer
choice, preference, taste etc. and for the technological and high competition. As
globalization is on the competition is spread an over the world. So, every
organization should be international standard. Every company or firm wants to
make their loyal customer group. Each firm would like to gain maximum profit
through consumer’s satisfaction. Today each company has to face so much
competition. To perform all marketing tasks marketer are to faces. Two types of
environment, one is macro or external and another is micro or internal environment.

We know that juice pack is a consume goods. It is classified as shopping goods.

People usually drink juice for the refreshment and to reduce tiredness. In all seasons
juice is widely consumed by the customers. But the demand becomes high in the
summer. Juice is tasty and nutrition’s. There is a wide demand and high prospects
for the juice products. PRAN juice pack is one of the items to meet this demand.

This study tries to focus on marketing problems and prospects of PRAN juice pack.
PRAN juice pack is one of the popular brands in Bangladesh and also in
international market recently. It is manufactured and marketed by Agriculture
Marketing Company Ltd. (AMCL) of PRAN group. PRAN juice pack is selling
mainly local market (all over Bangladesh) already it is exporting in Europe,
America and Middle East also in India. There is much higher demand for locally
produced juice pack in the country than present domestic supply. We see that there
is a shortage of PRAN product in our local market. So Bangladesh imports some
juice from Pakistan, India and other countries. In this situation AMCL has to face
few problems as well as meeting other competing juice company. AMCL has few
problem areas such as distribution system, Government policy, and import system
and wholesale/retailers sector. In the true sense, marketing management concept is
not being implemented in the existing juice marketing system. There is no
combination among product, price place and promotion.

In spite of few problems, there is increasing demand for PRAN juice pack all over
the country. So we can say that PRAN juice pack has a bright prospect in the
country. Undeniably juice pack of AMCL would be considered as the most
potential juice to give our infrastructure greater longevity. So company should take
to proper action for the fulfillment of the target of juice pack products of AMCL.

Recommendation based on SWOT

By analyzing the SWOT in part A we are recommending some suggestion which

will help the company to use their Strength and opportunity to mitigate weakness

and tackle the threats.

The organization will search for serious dissemination the organization needs the

entire retail shop store PRAN FOOD. The firm ought to build up an obvious mix

between channel individuals to dispersion of appropriately PRAN FOOD and for

the agreeable co-task of channel and dealers and wholesalers in conveying and

offering PRAN food effectively. It is prescribed that the firm might want to get

more advantage to benefit share and overall revenue may be expanded. The

appropriation design should be changed the organization need to included couple

of pickup vans for legitimate opportune circulation. A juice pack is an extremely

 fundamental item for the client request situated conveyance ought to be

presented. Right off the bat it is important to assess the quantity of client in a

specific territory and after that to appraise their yearly request. At that point it is

important to delegate a merchant wholesaler for a specific territory. The PRAN

Company needs to make imaginative notices that will make more regard for target

client. The organization can take part in exchange reasonable in better places

where buyers are concentrated. These exercises will make picture and shopper

mindfulness in kind of its

PRAN juice. Additionally, the firm can promote through the print media and

electronic media. The organization will be taken deals advancement program.

Money rebate quality markdown and blessing will be given to the business

powers. Deals limited time spending will be expanded with respect to as could

reasonably be expected. Current adverting topic will be change somewhat the

organization is anxious to make mark publicizing on the first page of day by day

national daily paper.

Company's stops to face or navigate those

challenges
I think the following suggestion and recommendation are seen feasible for the improvement of
the existing PRAN juice pack marketing in Bangladesh. These are given in below:
Suggestion and recommendation related to product:
a) Quality ensures:
The firm should ensure quality of PRAN product according to the consumer’s need and
expectations. Quality of a product is of attributes that the consumer expects in a particular
product. In case of PRAN juice pack these attribute may be design color combination, taste,
etc. So quality should be selected from consumer viewpoint.
b) Target market:
New segments will be added with the existing market. New segment will be for middle lower
and old people.
c) Product positioning:
The Company will make position of juice pack as ‘economic and quality product’ for large
market share.
d) Product differentiation:
Taste, color combination and flavor of juice pack will be improved.
e) Packaging and labeling:
The Company may charge the packing design a little bit and the instruction of safety ness,
contents of vitamin on the level will be introduced very soon open grade labeling will be
introduced.

Suggestion and recommendation related to pricing:

Pricing policy: The Company will follow the penetration pricing policy as they do. To keep the
firm running it must set a low price. Because the consumer in domestic market is high price
sensitive to high price.
Production cost will be reducing: Consumer usually wants to better quality and varied
designed products at a lower price production cost one of the major components of price. To
minimize the production cost, it is recommended that the expert and skilled workers should be
appointed which will reduce the rate wastage and volume of defective production.
Establishing the fixed price: The same price should be fixed all through the county. As a result,
the participants should not have to fall into trouble about price control. Besides, 100%
participants expect establishing the fixed price.
To add high commission system: Dealers, agents, wholesalers and retailers should be given
high commission. According to the participants they want high commission from the authority.
The commission system will reduce the business task of the participants.
Competitive price: Finally, the company will offer competitive price. The company will fix a
reduced price that will be lower than other competitors.

Suggestion and recommendation related to distribution:

The company will look for intensive distribution the company wants all the retail shop store
juice pack. The firm should develop a clear-cut combination between channel members to
distribution of properly PRAN juice pack. For the cordial co-operation of channel and sellers
and wholesalers in distributing and selling PRAN juice pack successfully. It is recommended
that the firm would like to get more benefit to profit share and profit margin might be
increased.
The distribution pattern needs to be changed the company have to added few pickup vans for
proper timely distribution. A juice pack is a very necessary product for the customer; demand-
oriented distribution should be introduced. Firstly, it is necessary to estimate the number of
customers in a certain area. And then to estimate their annual demand. Then it is necessary to
appoint a dealer distributor for a certain area.

Suggestion and recommendation related to promotion:

The PRAN Company has to create creative advertisements that will create more attention to
target customer. The company can participate in trade fair in different places where consumers
are concentrated. These activities will help to create image and consumer awareness in flavor
of its PRAN juice. Besides, the firm can advertise through the print media and electronic
media.
The company will be taken sales promotion program. Cash discount quality discount and gift
will be given to the sales forces. Sales promotional budget will be increased as for as possible.
Current adverting theme will be changing a little bit the company is eager to make brand
advertising on the front page of daily national newspaper.

Suggestion and recommendation related to research and development:

Research and development (R&D) are very essential for every business world. Information is
very necessary for designing effective marketing program. The firm may collect information
regarding consumer’s needs, choices, attitude and exceptions through the R&D.

Other suggestions and recommendations:

We see that the participants in the business have very little knowledge about marketing field.
The participants should be properly trained. The intra-communication system will be
developed if the distributors /wholesalers are trained well. Sometimes workshop and seminars
should be arranged for the participants.
Customer and services are being completely ignored in the existing system. There are no extra
facilities given to the customers. The complains of the customers are considered. Customer
oriented marketing should be established.
Though the existing product life cycle, PRAN juice pack position is rapid group stage. So
there are some additional suggestion has been given to keep this position. During this stage the
firm uses several strategies to sustain rapid market growth as long as possible.
• It improves product quality and adds new product features and improved styling.
• It adds new models and flanker products (i.e. products of different sizes, flavors, and so
forth that protect the main product).
• It enters new market segments.
• It increases its distribution coverage and enters new distribution channels.
• It shifts from product awareness advertising to product preference advertising.
• It lowers prices to attract the next layer of price sensitive buyers.

Recommendation based on financial analysis

As we have seen in the Ratio Analysis in part A that the Net Profit Margin, ROA,

ROE is decreasing over the year which is a very Bad sign for PRAN. So to

improve the condition we are recommending some suggestion.

Pricing policy

The Company will take after the infiltration estimating approach as they

do. To keep the firm running it must set a low cost. Since the customer in

residential market is high value delicate to high cost

Production cost will be reducing

Buyer as a rule needs to better quality and changed planned items at a

lower value generation cost one of the real parts of cost. To limit the

creation cost, it is suggested that the master and gifted specialists ought

to be named which will decrease the rate wastage and volume of deficient

generation.

Establishing the fixed price

A similar cost ought to be settled all through the province. Accordingly,

the members ought not to need to fall into inconvenience about value

control. Furthermore, 100% members expect setting up the settled cost.

To add high commission system

Merchants, operators, wholesalers and retailers ought to be given high

commission. As indicated by the members they need high commission

from the expert. The commission framework will lessen the business

errand of the members.

Competitive price
 At last, the organization will offer aggressive cost. The organization will

settled a lessened value that will be lower than different contenders.

Recommendation based on Industry analysis

Based on the industry analysis done in Part A we think the accompanying

proposal and suggestion are seen achievable for the change of the current PRAN

FOOD improves the company position in Bangladesh.

Quality ensures

The firm ought to guarantee nature of PRAN food item as per the

shopper's need and desires. Nature of an item is of properties that the

shopper expects in a specific item. If there should be an occurrence of

PRAN food this trait might be configuration shading blend, taste, and so

on. So quality ought to be chosen from buyer perspective.

Target Market

New portions will be included with the current market. New section will

be for center lower and old individuals.

Product positioning
 The Company will influence position of food to pack as 'monetary and

quality item' for huge piece of the overall industry.

Product differentiation

Taste, shading mix and kind of juice pack will be progressed.

Packaging and labeling

The Company may charge the pressing outline a smidgen and the

guideline of security ness, substance of vitamin on the level will be

presented soon open review naming will be presented.

PRAN is an expanded organization which has countless lines. So they by one

means or another likewise cover the concentration methodology for aggressive

technique. Be that as it may, they are brief procedures that they execute keeping

in mind the end goal to advertise a specific item which is either new or some way

or another. Yet, their fundamental methodology is to serve the more extensive

number and address their issues by keeping the value reasonable and offer more

in that value extend. Thus, we propose that PRAN should adhere to the Cost

authority Strategy to maintain as a pioneer in the market.

Corporate Level Strategies are concerned with the issues that help a business to

compete in the industry they are operating in. Corporate level strategies are the

important tools of strategic planning process as they affect the entire organization.

The five year plan on corporate levels strategies of PRAN are described below:

Growth Strategy: Growth strategy is a part of corporate level strategy, it

reflects when an organization goes for international market or expansion in the

existing market through increasing sells and after than differentiating the products

they offering to sustain in the market. PRAN as a core supplier of food already

moved to international market currently exporting in India and moving forward

to capture the Market of South Asia. PRAN should implement corporate level

strategies successfully by ensuring achieving a sustainable competitive advantage

which would lead to higher profitability. Internal growth strategy has given

PRAN a lot of success because in Bangladesh they have successfully capitalizing

on internal economics of scale. Apart from growth in the local market PRAN can

also grow externally through mergers, acquisitions and strategic alliances.

1. Concentration Strategy: As PRAN is producing product lines with real

growth potentials, Concentration strategy can bring more success to the company.

By concentration strategy it means giving more resources on the product line so

that it increases as the participation of the value chain of the product increases.

This strategy can be divided into two strategies called Vertical growth strategy

and Horizontal growth strategy.

a) Implementing of Vertical growth Strategy: Through this PRAN can

engage in value chain of the product in the international market through taking

the job of the supplier or distributor in the international market.

b) Implementing of Horizontal growth strategy: Horizontal growth

means moving to the new markets through geographical locations or by

expanding product offerings in the existed market.

2. Diversification Strategy: Diversifying the product offerings, diversifying the

markets that can only possible when the Organization growth rate is at peak. Two

kinds of Diversification can be possible one is related diversification and

Unrelated diversification.

a) Implementing Related Diversification: PRAN can implement related

diversification in the global market like they did on the local market by

diversifying the company into a related industry. It will be successful addition as

they are in cost leadership position and they have firm knowledge about related

industries.

b) Implementing Unrelated Diversification: PRAN can move to another

industry in the Global market as they did on Local Market. PRAN which is core

food and food items producer can move for another industry not related to the

actual industry they operating in the global market. PRAN RFL can be a good

example for this.

3. Stability Strategy: Stability strategy can be adopted in the Indian Market by

PRAN as it is a predictable market and also related with the host country’s

culture. Three basics strategies can be pointed out here.

a) No change Strategy: PRAN will have to continue doing what they are

doing currently because they are capable of generating profit in this industry.

b) Profit strategy: With this strategy PRAN would want to stay profitable

position in the market by increasing sells, innovations, serving new markets, and

new customer segments so on.

PRAN should implement this strategy before implementing a full-fledged

strategy. By nature it is a Temporary strategy but very effective for any business.

Business level strategy is a detailed plan which involves generating values to

customer besides having a sustained competitive advantage over competitors so

that profit is maximized. PRAN as core Company in the industry of food can

implement the following strategies in the next 5 years.

PRAN can implement the cost leadership strategy in the international business
because In BANGLADESH they already are in cost leadership position. Price is
a key factor here; it can be gained through economics of scale by spreading the
fixed cost over the large number of outputs. Which will provide PRAN a great
advantage to compete against the existing international competitors? It is an
internal factor of the organization as it depends on the efficiency but PRAN can
capitalize from the foreign raw materials, labors, management as well.
Differentiation is another tool to sustain in the foreign market after moving in the
market. Because, in the foreign market, there is already well-established ventures
doing the same things as PRAN did in the Bangladesh. So, after moving in the
foreign market, it is a fundamental requirement to differentiate product offerings
according to the foreign culture and people, and through innovations. This
differentiation would provide PRAN a sustainable competitive advantage over
the competitors. So, Differentiation is a must.

It is a combined approach for PRAN to implement both Low-cost strategy and

differentiation strategy. As technology is improving day by day, it has created
huge opportunity to implement Low-cost strategy and differentiation strategy at
the same time. Modern business model now is using consolidated approach to
gain low cost and differentiation. So, PRAN should implement this strategy as
well.

Functional level strategies involve strategies to utilize human resources,

allocating resources, identifying functional area within the organization, and
coordination of those areas for optimal contribution to help achieving success

Human resources are the capital for any businesses. In order to do well in the
foreign market

PRAN human resources department should act accordingly to the global market
conditions.
Hiring foreign employees, hiring foreign management team can benefit the
organization more,

because foreign people know better about the foreign culture and key strategies
to bring success in the organization. Another implication is to experiencing the
existing employees and man an it’s every part is individually successful. PRAN
is successful in the domestic market because of the individual success of all the
part related to the organization. Finance accounting department is the most
important department of an organization. Allocating resources, generating funds,
investing on the prospective projects are the main tasks of the department. So, it
is very critical as well as crucial for the business. As PRAN wants to conquer the
foreign market besides the domestic market it will require effective risk
management, cash control system also identifying the source of funds and usage
of those funds require a best finance team throughout the organization. If
required, foreign finance team can be hired for specific foreign forecasting as
well as investing in the foreign market. R& D stands for Research and
development. A well-organized team can bring huge success for any
organizations. PRAN is domestically successful because of the experience it has
in the industry. But if it wants to move further and bring same success in the
foreign markets it requires a strong R & D department. R& D is an integral part
of PRAN. Without proper research invading into foreign markets would result in
failure. But with a proper research and forecasting, a business can gain enough
data and information to implement its business level strategies and corporate level
strategies in the domestic market is exceptional. That is a key factor in the
domestic success. PRAN also is doing great in INDIA in the marketing and
promotional activities. They sponsored popular shows; their advertisement
contents are mostly funny and creative nature. So, they need to keep this strategy
continued to bring success in India. But when comes to the Africa and Europe
they need to more focus on the strategies used by the existing companies
operating at that country and also be careful about the culture and heritage. And
based on that formulate strategies to continue promotional activities.
Technology is advancing rapidly now a days and the company which will able to
cope up with this technological change swiftly and transform the business will
stay in the long run. Innovation is one of the main key to achieve competitive
advantage. Innovation has major relationship with technology. Day by day with
the advancement of technology more and more innovative product is coming to
the market. The products could be direct competitors or substitution product. To
cope up with this innovation PRAN’s business environment have to be more
dynamic. The higher level managers have to welcome technological change and
should be adapt with the changes as soon as possible. Then they should train the
employees to get used to with new technology as well. They also maintain strong
infrastructure and using E-business, innovative technology as marketing weapon
to promote their products. We believe, their good governance plays important
rule to provide infrastructure to improve the quality of the decisions made by the
managers of the company who manage the business and their ethical decision
making help to build sustainable business and enables them to generate long term
value more successfully. If we change their governance strategy then it will
impact badly in the current organization structure,
PRAN should apply Implementation control and Strategy Surveillance to develop
their strategy control. So that can put their recourse into operation more
effectively and can have clear idea that their strategy is working perfectly or not.

it means to see their plans, programmers and polices are guiding their objective
toward company’s goals. PRAN is a very big local brand and they have different
types of business. They should be more careful about their resource are being
implemented right way in right project. If it is not happing or their utilization of
their rescores does not bring any benefit. Then they should take correct step to
change the plan immediately. PRAN can do implementation control in two ways
1) Monitoring strategic thrust and 2) Milestone reviews

PRAN Company can make a control designed which enables to overreach in a

board range of events inside and outside the company through monitoring. And
 it could be done by any kind of general monitoring, selected information source
to uncover event resource that are likely to affect strategy organization goals.

PRAN has very technical and supportive corporate culture, which allows them
flexible working condition and employee empowerment. So employees of PRAN
willingly accept regular challenges and learn something new each day. Therefore
PRAN organizational culture supports our recommended strategy.

PRAN believes that a practices, belief and ideologies of a company structure

which gives a sense of guidance to employees. A good work culture helps to
create good brand image of the company and making it different from its rivals.
They think the employees of their company are the true asset of their company.
That is why PRAN has reached in its best place where it’s right now. The
employee’s effort and motivation help the organization for its successful
functioning.

Conclusion
We have also created a new product of the Pran Food Company’s product

line that is newly introduced into the market. For that product, we make a

marketing plan including essential marketing strategies.We have faced many

limitations for preparing this report. Time to complete the report is too short.

Information is not available enough in our hand and Internet, and Company

does not provide enough information at the time of survey.

Diary industries are mainly developed and expand its business in the cities

areas. In diary sector, The Pran Company has many competitors in the
 current market.

Pran management wants each business unit to deliver a good financial

performance. The product manager sets the following financial objectives:

Earn an annual rate of return on investment over the next 5 years of 3 percent

after taxes and produce net profits of Tk.50,00,000 in 2009. In plan,

marketing objectives must convert the financial objectives into marketing

objectives. We want to earn Tk.50,00,000 profits and its target margin is 10

percent on sales, then it must set a goal of Tk.5,00,00,000 of sales revenue.

We set an average price tk.15 for 200ml and Tk.35 for 500ml. The company

expects the total sales of Chocolate Milk are 20,00,000 units of 200ml and

5,72,000 units of 500ml pack that include 6,86,000 liters of prepared milk.

For achieving this market share, the will have to set certain goals for

consumer awareness, distribution coverage, and so on.

In finally we can conclude that we will be successful in marketing our new

product “Pran Chocolate Milk” through our marketing strategies and plan.

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