Organizational Structure of Pran Group

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Organizational Structure of Pran Group


Organization overview

Company Name: Pran Group
Country/Territory: Bangladesh
Address: 12 R. K. Mission Road, Dhaka-1203, Dhaka, Dhaka, Bangladesh
Products/Services We Offer: Glass Jar,Bottles, Lug Caps
Business Type: Manufacturer
Industry Focus: Bottles , Glass Packaging Materials , Glass Dinnerware , Others ,
Geographic Markets: Southeast Asia
No. of Employees: Above 1000 People
Annual Sales Range (USD): US$5 Million – US$10 Million
Certificates: ISO 9001:2000
Year Established: 1980
Legal Representative/CEO: Mr. G. Kannan

PRAN stands for:

Program for Rural Advancement Nationally.

In Bangla “Progoti Rupayone Agrani Noboddom”.

PRAN GROUP was born in 1980. Keeping in view the corporate mission of the group we have over the years diversified our activities. Today we are the largest processors of fruits & vegetables in Bangladesh. We encourage contract farmers and help them grow quality crops with increased yields and to obtain fair prices. The Group comprises of 10 companies. The head offices are located at Dhaka with production facilities around the country. Our management is modern adapted to our environment & culture. Our largest asset is our competent team of hands-on-mangers & dedicated employees.

Corporate mission: “Poverty and hunger are curses”

Aim of the company: “To generate employment and dignity and self respect for their compatriots through profitable enterprises.”

Quality policy: It is the policy of agricultural marketing co. ltd. to market products of consistent quality at home and abroad as per world standards produced hygienically in accordance with good manufacturing1 practices in state- of- the- art plants and processes , packed in appropriate packaging and remain committed to these objectives at all times.

AMCL have adopted ISO –9001 as the model for their quality mgt. system. Accordingly a documented system of procedures and instructions has been established throughout the organization defining business processes, responsibilities and authorities.

Nature of the company : PRAN in Bangladesh are blessed with a climate ideally suited to agriculture , specially fruits and vegetables – rich is taste and flavor , sweet , mellow and juicy.

Consumer benefit:

> International quality Products

> Competitive price

> Wide rage of products that meet the requirement of the consumers of all ages & groups

Quality certification:

Agricultural Marketing Co Ltd- PRAN is the first food processing company in Bangladesh to achieve the prestigious distinction ISO 9001certification for their quality management system. This supreme certification ensures that PRAN Products reach the consumers table maintaining the highest level of quality. I addition to ISO, PRAN has got international certifications like HALAL & HACCP
Sales and distribution network:

To make the Group’s products available at the every knock & corner of the country PRAN has developed the best sales & distribution network all over the country.

To ensure fast & smooth distribution companies has set up 9 distribution depots & have appointed more than 1000 dealers all over the country.

Advertising & Promotion:

Advertising & Promotion is the key to the marketing of any product or brand. To cope up with the rapid & ever changing market situation & to come up with innovative marketing strategy and ideas company has set up a full-fledged In-house advertising agency comprises of the best talents of the country. Company spends a large portion of their promotional budget in brand building exercises at home & abroad.


The total scenario of export has changed in volume and figure from the 20.51 corer to tk 37.73 corers and increase of 84 % over the previous year. The ratio between export and local sales stands at 56.44 % respectively. A strategic decision has been taken to further explore export markets for inclusion of more parties as well as newer destination.


After serving the millions at home successfully, PRAN has focused on exports to serve the billions.

At present PRAN is the largest exporter of agro-processed food items of Bangladesh.
In recognition of the extraordinary performance in export PRAN has achieved the best processed agro food exports trophy for the three last consecutive years.
Currently PRAN products are regularly being exported to 63 countries of the 6 continents all over the globe. Major export markets are Asia, Middle East & Africa.
Major exporting countries :
Angola, Australia, Austria, Bahrain, Belgium, Benin, Brunei, Burkina Faso, Bhutan, Cameroon, Canada, Capo Verde Islands, Chad, Congo, Djibouti, Eritrea, Equatorial Guinea, Ethiopia, France, Gabon, Gambia, Germany, Ghana, Greece, Guinea, India, Italy, Ivory Coast, Japan, Korea, KSA, Kuwait, Lebanon, Malaysia, Mali, Mauritania, Mauritius, Myanmar, Mayotee, Nederland Antilles, Nepal, Niger, Oman, Pakistan, Palestine, Qatar, RCA, Reunion Islands, Senegal, Sierra Leone, Singapore, Somalia, Somaliland, Sri Lanka, Sudan, Sweden, Switzerland, Togo, UAE, UK, USA & Yemen.
Major Exported Products:
Fruit Juices, Fruit Drinks Instant Powdered Drinks, Pickles , Canned Fruits & Vegetables, Extruded & Fried Snacks, Tea, Aromatic Rice, Puffed Rice, Flattened Rice, Jam & Jelly, Plain Spices, Blended Spices, Mustard Oil, Mineral Water, Dehydrated Fruits, Tomato Ketchup / Sauce, Toffees, Candies, Bubble Gum, Biscuits & other confectionery etc.


As the largest food processing company of Bangladesh usually we import the following to meet our requirements:
Raw Materials: Cassava powder, Corn Grits, Orange Concentrate, Potato starch, Potato granules, powder milk, Peanuts, pulses & beans, onion, chili, ginger etc
Chemicals : Ascorbic Acid, Beta Carotene, CMC, Citric Acid, Caustic Soda, Hotmelt, Pectin, Potassium Sorbet, Xanthan Gum, Different Flavors, Confectionery raw material.
Packing Materials : Aluminum Foil, Crown Cork, Flexible Packing material, Glass Bottle, Glass Jars, HDPE, Lug Cap (30, 53 & 63mm), PET, Shrink Labels, Shrink caps, Tin Can, U-Straw.

Products of Pran


From garden to the consumer, PRAN ensures quality processing at all steps to provide a great variety of choices of processed juice.

A great variety of quality packing in eight different flavors; orange, mango, Lemon, litchi, pineapple, mango-pine, guava & fruit cocktail, offers an ever refreshing choice for you.

1) Juice in Aseptic Pack

Using fresh natural Bangladeshi fruits and hygienically produced with the state of art technology, available in eight different flavors as orange, mango, Lemon, litchi, pineapple, mango-pine, guava & fruit cocktail. Very uncommon the fruit cocktail product is a combination of 12 different types of local fruits.


1000 ml x 12 Pack/Ctn

<2050 Ctn/20 ft Container>

250 ml x 24 Pack/Ctn

<3200 Ctn/20 ft Container>

250 ml x 48 Pack/Ctn

<1575 Ctn/20 ft Container

2)Juice in Non Returnable Glass Bottle

Real fruit juices, using pulp by own processed, available in Non-returnable glass bottle.


250 ml x 24 GB/Ctn

<1470 Ctn/20 ft Container>

250 ml x 24 GB/Tray

<1360 Ctn/20 ft Container>

3) Juice in Can

Using fresh natural Bangladeshi fruits and hygienically produced with the state of art technology food grade metal smart can. Available in seven different flavors as orange, mango, pineapple, guava, fruit cocktail, tamarind & banana flavor.


250 ml x 24 Tin Can/Ctn

<3000 Ctn/20 ft Container>

250 ml x 48 Tin Can/Ctn

<1360 Ctn/20 ft Container>

Sprout Juice

Real fruit juices, using pulp by own processed, available in attractive sprout pack.


150 ml x 48 Pack/Ctn

<1120 Ctn/20 ft Container>


From purified natural drink to processed fruit drink, our wide product range gives you many alternatives to quench your thirst

From children to the adults, PRAN offers various drinks with different flavor and taste. Our quality processing ensures healthy refreshment for all age group

1) Ice POP Drinks

Refreshing, non-carbonated flavored drink with added vitamins, best served for age one to 16 years


50 ml x 288 Pcs/Ctn

<604 Ctn/20 ft Container>

2) Powder Drinks

Natural drink powder available in family and single serve packaging in four flavors –mango, orange, lemon and strawberry. Vita plus is really refreshing and quick liquid solution


4 gm x 5000 pcs/Ctn

<350 Ctn/20 ft Container>

8 gm X 500 Sachet/Ctn

<765 Ctn/20 ft Container>

15 gm x 500 Sachet/Ctn

<760 Ctn/20 ft Container>

60 gm x 100 Sachet/Ctn

<1200 Ctn/20 ft Container>

250 gm x 24 Pack/Ctn

<1100 Ctn/20 ft Container>

Jam & Jelly

Pran Jam & Jelly is enormously popular as a breakfast favorite. Also taken with utmost demand with any snacks any time the Pran Jam & Jelly are endowed with all the freshness of nature.


Orange, Apple & Diabetic (Orange) Jelly, Mixed Fruit, Pineapple, Mango Jam.


200 gm x 24 Glass Jar/Ctn

<3025 Ctn/20 ft Container>

300 gm x 12 Glass Jar/Ctn

<3025 Ctn/20 ft Container>

500 gm x 12 Glass Jar/Ctn

<2800 Ctn/20 ft Container>

Lachcha Semai:

200gm x 50 poly pack/Ctn

<380ctn/20ft Container>


1kg x 06 Plastic Jar/Ctn

<1600ctn/20ft Container>

Mustard Oil

Hygienically Produced from best quality Mustard seeds.


250 gm x 24 Glass Bottle/Ctn

<1125 Ctn/20 ft Container>

500 gm x 20 PET Bottle/Ctn

<1125 Ctn/20 ft Container

Rose Water:

180ml x 24 pcs/Ctn

White Vinegar:

650 ml x 12 Glass Bottle/Ctn

300 ml x 24 PET Bottle/Ctn

Rice Products:

Aromatic Rice

Premium quality Aromatic Chinigura Rice is produced through company appointed Contact Farming, processed in scientific hygienically without any blend or chemical mixture and sorted in computerized color sorting and de-stoner to seize taste of your family.


Aromatic Rice (Chinigura):

1 kg x 25 Poly Packs/Gunny Ba

<740 GB/20 ft Container>

5 kg x 05 Poly Packs/ Gunny Bag

Minicat, Pajam, Najirshail:

5 kg x 05 Poly Packs/ Gunny Bag

Sauce and Ketchup:

Tomato sauce and ketchup are produced from the finest variety of tomatoes that preserves the natural freshness and taste of tomato.


Thai Chili Sauce, Hot Tomato Sauce, Tomato Ketchup & Tamarind Sauce


340 gm x 12 GB/Ctn

<2500 Ctn/20 ft Container>

700 gm x 6 GB/Ctn

<2300 Ctn/20 ft Container>

1000 gm x 6 GB/Ctn


All the flairs and flavor of nature –added by the selected natural ingredients – makes Pran chutney incredibly popular craze among all ages. Pran chutney gifted with its sweet and sour taste is made of everything natural and produced naturally.


20 gm x 420 Sachet /Ctn

<1250 Ctn/20 ft Container>


Pran pickle is produced from the selected fresh fruits through hygienic process that further ensures quality and freshness.


Mango, Mixed Pickle, Olive, Chili, Satkora, Lemon, Naga Chili, Boroi Sweet & Garlic Pickle


300gm x 12Glass Jar/Ctn

<3025Ctn/20ft Container>


Pran spice is prepared from the selected varieties of spices (Chili, Turmeric, Coriander, Cumin) through completely automatic process that ensures absolutely free from hand touch. Pran spice is 100% natural, fresh and pure. It ensures natural coloring and taste of the curry, at the same time, is helpful for health and hygiene.

Available Varieties:

Chili, Turmeric, Cumin Seed, Coriander powder


200 gm x 24 Paper Packs/Ctn

<2200 Ctn/20 ft Container>

400 gm x 12 Paper Packs/Ctn

<2200 Ctn/20 ft Container>

10 kg x 01 Gunny Bag/Ctn

<1400 Ctn/20 ft Container>

Available varieties:

Chatpati Mix, Haleem Mix, Fish Mix & Curry Powder


200gm x 24Paper Packs/Ctn

<2200 Ctn/20 ft Container>

400gm x 24Paper Packs/Ctn

<1120 Ctn/20 ft Container>

1 kg x 12 Paper Packs/Ctn

<1120 Ctn/20 ft Container>


PRAN Tea refresh you more than everything; made from 100% natural tea leaves without any additives, preservatives or coloring. Marketed in two different categories – Premium & Non-Premium – to refresh people of different class and tastes


02gm x 100 Paper Packs x 36 Paper Packs Boxes/Ctn

<475 Ctn/20 ft Container>

PRAN Confectionery:

Our confectionery products are various flavored candy, gum, magic cup & fruit bar With every chew, it brings a sweet taste in life.

PRAN Candy:

Milk Candy: This is made of pure milk. It’s a dairy product of PRAN. This is made for kid’s specially.6-12 years children’s are our target customers. It comes from fully automatic deposited machine. In Bangladesh we are market leader.

Butter Scotch Candy: This is fully butter made candy. Good flavor & taste attract consumers very much.

Coffee Candy: Strong coffee energizer with rejuvenating coffee taste made from coffee powder.

Love Candy: PRAN My Love candy having three flavors; Mango, Orange & Strawberry. This is heart shape candy. This comes from our deposited machine.

PRAN Packaging

R Hardboiled Candy: (Flavored candy, Club candy, Love candy)

R Deposited Candy: (Milk, Butter scotch, Coffee, Creamers and Mint plus)

Pack type Weight / Pc Quantity /Pack Pack / Ctn Load in 20? Container
Quantity Unit
Big Jar 3 gm 250 pc 15 jar 480 Ctn
Small Jar 3 gm 100 pc 18 jar 790 Ctn
Medium Jar 3 gm 150 pc 24 jar 430 Ctn
Big Pouch 3 gm 1 kg 10 pouch 1130 Ctn
Medium Pouch 3 gm 100 pc 28 pouch 910 Ctn
Small Pouch 3 gm 50 pc 56 pouch 760 Ctn

R Fruit Magic / Magic Cup

Pack type Weight / Pc Quantity / Pack Pack / Ctn Load in 20? Container
Quantity Unit
Big Jar 17 gm 100 pc 6 jar 765 Ctn
Medium Jar 17 gm 85 pc 12 jar 580 Ctn
Small Jar 17 gm 40 pc 12 jar 1120 Ctn
Pouch 17 gm 24 pc 20 pouch 1340 Ctn
Paper Box 17 gm 10 pc 30 PB 1740 Ctn

R Lolli Pop

Pack type Weight / Pc Quantity / Pack Pack / Ctn Load in 20? Container
Quantity Unit
Jar 8 gm 100 pc 6 jar 1050 Ctn
Pouch 8 gm 25 pc 20 pouch 1810 Ctn

R Bubble Gum

Pack type Weight / Pc Quantity / Pack Pack / Ctn Load in 20? Container
Quantity Unit
Jar 4 gm 180 pc 16 jar 660 Ctn
Paper Box 4 gm 100 pc 20 PB 2100 Ctn
Paper Tray 4 gm 100 pc 25 PT 2100 Ctn

R Mango Bar

Pack type Weight / Pc Quantity / Pack Pack / Ctn Load in 20? Container
Quantity Unit
Pouch 16 gm 10 pc 40 pouch 2100 Ctn
Paper Box 16 gm 30pc 12 PB 2100 Ctn
Paper Box 16 gm 24pc 16 PB 1950 Ctn

Mango Bar:

The mouth-watering delight of fresh mango pulp blends with citric acid and sodium chloride gives a charming taste.

Other products:


Regular milk is put through a process known as UHT (Ultra Heat Treatment) that makes the milk completely germ-free.

PRAN Pasteurized Milk:

PRAN Pasteurized Milk is fresh and pure full cream liquid milk.

PRAN Flavored milk:

PRAN UHT Flavored Milk with mouthwatering taste of rich chocolate and mango…

PRAN Pure Ghee: PRAN Pure Ghee is made from Milk Fat. It has typical rich aroma.


Qualitative Analysis:

A. Industry Analysis:

a. Overall economy analysis or macro economy analysis:


Both urban and rural people use some of PRAN’S product whether it may be a pickle or jelly. But most of it is used in urban area.


We can divide the age group between 5 to 50 or above those who uses product of PRAN.


Prices of PRAN’S products and lifestyle. are reasonable any one can afford it. Due to changes in recent life style and current market trend, in the market there are varieties of products similar to that of PRAN’S. And if we see than, people still prefer PRAN’S product.


With the aim to continuously enhance its product and a turnover for sustaining business growth particularly in the face of increasing competition in the local market mentionable the cola plant and the second fully automated Reverse Osmosis technology.

AOKI technology based PET blowing machines have been installed.

At the same time for developing HDPE drinking water bottles suitable for the export market a HDPE blow molding machine has also been installed during this period .

A new administration building has been constructed together with a well equipped modern laboratory to improve production and product quality management at the factory.

Politics: In every industry there is a trade union. When some demands of the worker are not met they are going through the grievance procedure which sometime turn to strike and lock out situation which adversely effect on company’s overall performance and production.

b. Industry life cycle:

Industry life cycle analysis can vary based on how much detail we want. A five stage model would include-

  1. Pioneering development.
  2. Rapid accelerating growth..
  3. Mature growth.
  4. Stabilization and market maturity.
  5. Declaration of growth and decline.

The figure shows the growth path of sales during each stage. To estimate industry’s sales they much predict the length of time for each stage. This requires answer to such question as –

    1. How long will an industry grow at an accelerating rate?
    2. How long will it be in the mature growth phase before it sales, growth, stabilizes and then declines?

So to determine the sales estimate we briefly describe these stages:

  1. Pioneering development: During this start up stage the industry experiences modest sales growth and very small on negative profit margin and profits. Here time period is small and firms incur major development cost.
  2. Rapid accelerating growth: During this stage a market develops for the product or service and demand become substantial. The profit margins are very high, sales, growth rate are moving at an increasing rate to meet excess demand. During this phase profit can grow at over 100% a year.
  3. Mature growth: In this stage, future sales growth may be above normal but it no longer accelerate. Here the rapid growth of sales and a high profit margin attract competitors to the industry which causes an increasing in supply and lower prices which mean the profit margin begin to decline to normal levels.

4. Stabilization and market maturity: During this stage investor can estimate growth easily because sales correlate highly with an economic series. Here competition produces tight profit margins and the rates of return on capital eventually become equal to or slightly below the competitive level.

5. Declaration of growth and decline: In this stage the industry sales growth decline because of shifts in demand or growth of substitutes. Profit margin continues to be squeezed and some firms experience low profits or even.

PRAN and its position in the industry life cycle:

Analyzing their market situation, sales estimate and future plan this industry are currently stayed in the mature growth stage. In this stage future sales growth may be above normal but it no longer accelerate. Besides, the rapid growth of sales and the high profit margins attracts competitors to the industry which causes an increase in supply and lower prices which means that the profit margins began to decline to normal stage.

C. Competitive strategy analysis:

Porters 5 generic model:

To grab the empty market or keep the current market place the company can take several strategies. The project analysis may informally talk to customer, competitors, middleman or others of the industry or he may look at the competitors of the company to learn about the performance and their purchasing power of the customer action and strategy. Or they may simply go along with the porters five factor model:

1. Threat of new / potential entrants:

A new entrant in an industry represents a competitive threat to the stabilized firm. So managers of the stabilized firms usually go for barriers to entry. So the company may apply the policy include: –

Economize to scale.

Product diversification.

Switching cost.

Access to distribution channel.

Figure: Porters 5 Generic Model

2. Bargaining power of suppliers: In many industries the cost of purchased supplies accounts 60-80% at total production cost. Suppliers have an important effect on industries project potentials.

Considering unfavorable conditions of the supplier company must watch out the factors that make the suppliers group powerful:-

Greater concentration among suppliers than buyers.

Dominance by a few suppliers and lack of substitute product.

High differentiation among suppliers.

High differentiation by suppliers and high switching cost for the buyer.

3. Bargaining power of the customer:

Buyers are the consequential part of the organization. Buyers can exert bargaining over a supplier industry by forcing its prices down by reducing the amount of goods they purchased from the industry or by demanding better quality for the same price. The manager of the organization must watch out the following factors that lead to greater buyer power:-

Credible threat of backward integration by buyers.

Price sensitivity of the buyers.

Relatively large volume purchase.

Greater concentration in the buyers industry than in suppliers industry.

4. Threat of substitute product:

When the availability of substitute product is upper and prices are above the following industry’s product prices, customer tends to switch to substitute. Consequently manager must closely monitor substitute product that are showing improvement in performance or and decline in prices.

5. Rivalry of the existing firms:

In the current free market economy. Company has to face high level of competition. That is usually characterized by in terms of price competition, product differentiation and product innovation. Such rivalry usually results from the following factors:

Equally balanced competitors.

Lack of differentiation.

Lack of switching cost.

Large increasing manufacturing capacity. .

High exist barriers.

Considering the above factors the management of the company should set up their market strategy. On the view to grab the new market place and keep in hand the old one.

d. Industry grows:

Financial performance of Pran Company:

Year Earning per share Net Asset Value Per Share Net Profit After Tax (mn) Price Earning Ratio % Dividend % Dividend 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:

Year Earning per share Net Asset Value Per Share Net Profit After Tax (mn) Price Earning Ratio % Dividend % Dividend Yield
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

Financial Performance

According to the following graphs and financial performance of both of the companies we can anticipate their industry growth of the said companies. Except net asset value per share in 2003 to 2006 of Apex‘s is higher than that of Pran.Other than that overall performance OF Pran is higher than rest of the agro based companies in the industry

e. Company Analysis:

SWOT Analysis:

SWOT analysis involves an examination of a firm’s strength, weakness opportunities, and threats. It helps to evaluate firm’s strategies to exploit its competitive advantages or defend against its weakness. Strength and weakness involve identifying the firm’s internal abilities or lack thereof. Opportunities and threat includes external situation such as competitive forces discovery and development of new technologies, government regulations and domestic and international economic trends.

The strengths of a company give the firm a comparative advantage in the market place. Perceived strength can include good customer service or strong financial resources. To remain strength they must continue to be developed, maintained and defended through prudent capital investment polices.

Weakness result when competitors have potentially exploitable advantages over the firm. Once weaknesses are identified, the firm can select strategies to mitigate or correct the weakness.

Opportunities or environmental factors that favor the firm can include a growing market for the firm’s products, shrinking competition favorable exchange rate shifts a financial community that has confidence in the outlook for the industry or firm or identification of a new market or product segment.

Threats are environmental factors that can hinder the firm in achieving its goals. It would include a slowing domestic economy , additional government regulation an increase in industry competition, threat of entry , buyers or suppliers, seeking to increase their bargaining power or new technology that can absolute the industry’ s product.

Now we discussed the SWOT analysis


· Brand image: Firstly, PRAN has stayed in the local market in Bangladesh for many years. So they are so experienced and stationed in people’s mind deeply. Everyone in Bangladesh is aware of PRAN. PRAN portrays different kinds of products which are already exist in the market and people like it. So there is strong brand preference for PRAN over other substitutes in the mind of a number of consumers.

· Superior quality control measures: PRAN maintain and control the superior quality of the product. It is the policy of agricultural marketing company limited to market products of consistent quality at home and abroad as per would standards produced by in accordance with good manufacturing practices.

· Integrity: PRAN believes success depends upon the quality and value of their products by providing a safe, wholesome economically efficient and a healthy environment for their customers and by providing a fair return to their investors while maintaining the highest standards of integrity.

· Market share: Because of the variety of the product PRAN leads in the share market and increasing the market share.

· Customer satisfaction: Whenever PRAN exist in the market, that time customer consumed their product. They launch different kinds of product and the price of the product is measurable. So the customer satisfied with the PRAN product.


Limited decision taking capacity: The PRAN Company is existing under the rules and regulation of agricultural marketing company limited. So PRAN can not take any instant decision to adjust the sudden market changes.

Price disadvantage: Sometime price of the product may be varying because of raw material. Because the price of the raw material which is also the key ingredient of their product line, is comparatively expensive than that of their competitors in Bangladesh especially the emerging ones. So this makes them sell their products at a higher cost than most of their competitors.

Lowest per capita consumption: Bangladesh has the lowest per capita consumption in the entire world. So upper class and middle class can bear the PRAN product but the lower class people can not bear it.

Lack of geographical coverage: Sometime the PRAN product can not reach in the definite geographical area because of lack of communication.


· The agriculture sector is the largest contributor to GDP. So PRAN produced canned fruit and vegetables, mushrooms etc and it is the part of agriculture. So it’s an opportunity to contribute to GDP.

· The crop production system is highly labor intensive and there is an abundance of labor in the country.

· Through the production of the PRAN product the employment opportunity are increased in Bangladesh.

· Through the production of the good product there is a great opportunity to attract the foreign investors.

· Company can develop the effective distribution system.

· PRAN Company can make survey to make effective product.


· Uncertainty in receiving fair prices

· PRAN mainly produced the agro- based product and most of the products are perishable. So it has to be preserved system.

· Inadequacy of appropriate technology.

· Lack of required capital.

· Decreasing market share.

· Major prolonged economic depression.

· Reduces the customer due to low quality of the product.

Opportunities Threats
Strengths Weaknesses


Generally speaking, at the time to cover the following aspects, we should look into the following matter

Financial Aspects Physical Resources

ü Capital of owner ü Buildings

ü Cash flow ü Plant & machinery

ü Access to additional resources ü Technology / incubator parks

ü Investment requirement ü Location

ü Profitability ü Transport facilities

ü Risk ü Infrastructure & utilities

ü Industrial flats/estates

Management, Supervisory

And Operator Capabilities Market

ü Management competence ü Profile of target market

ü Age/experience ü Competitors’ marketing strategy

ü Skills availability ü Market share

ü Technological know-how ü Product features/quality

ü Management contacts/network ü Expanding/contracting/stagnant market

ü Salesmanship of owner/staff ü Market niche for new/existing product

ü Personnel management ü Demand /supply situations (past, pre sent, future)

The first is measuring a company’s business as an investment portfolio.

The second involves assessing each businesses strength by considering the markets growth rate and the company’s position and fit in the market.

The third is establishing a strategy.

Corporate and division strategic planning: All corporate Headquarters undertake four planning activities:

Defining the corporate mission

Establishing strategic business unit(SBU)

Assigning resource to each

Planning new business, downsizing or terminating older business.

As we know Bangladesh is an industry arena. RAN is also not different from these views. We have already learned about their corporate mission. Mission statement is at their best when they are guided by a vision.

The BCG Matrix Evaluation of PRAN:

Star PRAN ?

Question SQUARE

Cash Cow ACME Dog BD

Factors underlying market attractiveness and competitive position of PRAN:

Market attractiveness:

Overall market size Large
Annual market growth ness Better
Historical profit margin 2006
Technological requirement Modern
Environmental impact friendly

Business strength:

Market share Fairly large
Product quality Best
Brand reputation Very good
Distribution network Strong
Unit costs minimum

Business strategy of PRAN: still now we can generally say that PRAN is holding first position in the agro based industry. Though it have different types of food product. This firm has fairly large market share in the relevant product market and usually leads the other firms in price changes, new product introductions, distribution coverage and promotional intensity

But pran have to be alert on 3 founds to stay n the industry.

The firm must find ways to expand total market demand that is size of the market.

The firm must protect its current market share through good defensive and offensive actions.

Third the firm can try to increase its market share even if the market size remains constant.

Through above discussion we came to know inspite of having different product still it needs to be exercise the leadership strategy because if we considered PRAN to be as number one then ACME, SQUARE food products, BD food the firm’s known as challengers followers soon well catch up the first position.


Quantitative analysis

a. Ratio analysis:

Ratio analysis: Ratio analysis involves methods of calculating and interpreting financial ratios to analyze and monitor the firm’s performance. The basic inputs to ratio analysis are firm’s income statement and balance sheet.

Interested parties: Ratio analysis of a firm’s financial statement is of interest to shareholders, creditors and the firms own management. Both present and prospective shareholders are interested in the firm’s current and future level of risk and return, which directly affects share price. The firm’s creditors are interested primarily in the shirt term liquidity of the company and its ability to make interest and principal payments. A secondary concern of creditors is the firm’s profitability; they want assurance that the business is healthy. Management, like stockholders is concerned with all aspect of the firm’s financial situation, and it attempts to produce financial ratios that will be considered favorable by both owners and creditors. In addition, Management uses ratios to monitor the firm’s performance from period to period.

Liquidity Ratio:

For the year 2003:

Current ratio:

= 1.25098

Quick ratio:




= 1.228

For the year 2004:

Current ratio:

= 1.2365

Quick ratio:

= 1.244

For the year 2005:

Current ratio:

= 1.3221

Quick ratio:

= 1.2955

For the year 2006:

Current ratio:

= 1.3465

Quick ratio:

= 1.321

Interpretation: The standard rate of current ratio is 1.25:1.According to the company in every year (2003-2006) the current ratio is between these values are acceptable. And the standard rate of quick ratio is 1:1.according to the company, the rate is between 1.23 to these are acceptable.

Leverage ratio:

For the year 2003:

Total debt ratio:

= 75%

Debt equity ratio:

= 63.27%

Interest coverage ratio:

= 1.69

For the year 2004:

Total debt ratio:

= 74.68%

Debt equity ratio:

= 50.53%

Interest coverage ratio:

= 17.95

For the year 2005:

Total debt ratio:

= 72.76%

Debt equity ratio:

= 50.27%

Interest coverage ratio:

= 1.74

For the year 2006:

Total debt ratio:

= 71.40%

Debt equity ratio:

= 45.18%

Interest coverage ratio:

= 1.388

Interpretation: In the total debt ratio, we assume that the amount of total debt ratio and debt equity ratio which are identified is equal with 1.

Activity ratio:

On the year 2003:

Inventory turnover:

= 12.61 times

Average collection period:

= 7.38

Total asset turnover:

= .7974

For the year 2004:

Inventory turnover:

= 12.01 times

Average collection period:

= 14.10

Total asset turnover:

= .80045

For the year 2005:

Inventory turnover:

= 13.85 times

Average collection period:

= 19.44

Total asset turnover:

= .80120

For the year 2006:

Inventory turnover:

= 18.93 times

Average collection period:

= 19.15

Total asset turnover:

= .8751


Interpretation: here the standard rate of inventory turnover is 7 times, average collection period is 36 days and total asset turnover is 1.5 times. According to the company the rate of inventory turnover is greater than the standard rate so it is acceptable. Then according to the company, the rate of average collection period is less than the standard rate so it is not acceptable. and the rate of total asset turnover is less than the standard rate so it is not acceptable.

Profitability ratio:

For the year 2003:

Gross profit margin:

= 26.04%

Net profit margin:

= .047024

= 4.7%

For year 2004:

Gross profit margin:

= 25.90%

Net profit margin:

= 4.16%

For the year 2005:

Gross profit margin:

= 5.67%

Net profit margin:

= 4.09

For the year 2006

Gross profit margin:

= 22.97%

Net profit margin:

= 2.92%

Interpretation: the standard rate of gross profit margin is 20%-30% and net profit margin is 5%-10%.according to the company profile the gross profit margin is acceptable but the net profit margin is not acceptable.

b. Dupont analysis: The Dupont system analysis is us