Page |1

An Internship Report
On
Company Analysis and Improvement Guideline
of
PRAN FOOD LIMITED

DEPARTMENT OF MANAGEMENT
UNIVERSITY OF CHITTAGONG

Date of submission: 20th May, 2020.

 Page |2

An Internship Report
On
Company Analysis and Improvement Guideline
of
PRAN FOOD LIMITED

Submitted To
Mr. Mohammad Shahab Uddin
Associate Professor
Department of Management
University of Chittagong

Submitted By
Nazmun Nahar
ID No: 13302041
Department of Management
University of Chittagong

Date of submission: 20th May, 2020

 Page |3

LETTER OF SUBMISSION
Date: 20.05.2020
Mr. Mohammad Shahab Uddin
Associate Professor
Department of Management
University of Chittagong

Subject: Submission of Business Project Report

Dear Sir,
I am here by submitting my Business Project Report, which is a part of the MBA
Program. It is a great achievement to work under your active supervision .This report is
based on Pran Food Ltd. I have got the opportunity to work with this firm. This project
gave me both academic and practical exposures. I have learned about the organizational
culture of a prominent firm. Secondly, the project gave me the opportunity to know the
company’s problems and different functional areas to recommend potential solutions.

I shall be highly obliged if you are kind enough to receive this report and
provide your valuable judgment. It would be my immense pleasure if you find
this report useful and informative to have an apparent perspective on the issue.

Sincerely Yours
__________________
Nazmun Nahar
ID No: 13302041
Session: 2016-17
Department of Management
University of Chittagong
 Page |4

ACKNOWLEDGEMENTS

Apart from my efforts, the success of any project depends largely on the encouragement
and guidelines of many individuals. I take this opportunity to express my gratitude to the
people who have been instrumental in the successful completion of this project.

First of all, I wish to express my thanks to Allah for giving me the strength to perform my
responsibilities to complete the report within the stipulated time.

Secondly I would like to thank Professor Dr. Muhammad Abdullah Mamun, the
innovator of the MBA Business Project.

I am deeply indebted to my Faculty Supervisor Mohammad Shahab Uddin, Associate

Professor of Department of Management for whole-hearted supervision. I cannot thank
him enough for all his tremendous support and help. He inspired me greatly to work in
this project.

Without them this project would have been very difficult.

And finally I express my sincere gratitude to all those participated to prepare the
report. Most of them were busy employees of Pran Food Ltd.
 Page |5

SUPERVISOR’S DECLERATION

This is to certify that the Business Project Report on “Pran Food Ltd” is prepared by
Nazmun Nahar for the partial fulfillment of the MBA program from Chittagong
University. This Report is an original work completed under my supervision.

She is permitted to submit the Report.

-------------------------

Supervisor

Mr. Mohammad Shahab Uddin

Associate Professor

Department of Management

University of Chittagong
 Page |6

EXECUTIVE SUMMARY

This report tends to provide information about PRAN FOOD Ltd and its advancement. It
is one of the leading business institutions of Bangladesh. One of the major organizational
goals is to reduce poverty and hunger through large scale employment generation. It is
contributing directly to the economy of Bangladesh through its cooperation with farmers
and export earnings. It focuses on all internal and external environmental factors with
SWOT analysis of PRAN FOOD Ltd. It analyzes the Political, Economical, Social,
Technological, Legal and Environmental forces. It includes VRIO framework and BCG
matrix. It includes the balanced scorecard is a strategic planning and management system
that is used extensively to align business activities to the vision and strategy of the
organization, improve internal and external communications, and monitor organization
performance against strategic goals. It describes the stages a product goes through from
when it was first thought of until it finally is removed from the market through product
life cycle. A value chain is a business model that describes the full range of activities
needed to create a product or services. The purpose of a value-chain analysis is to
increase production efficiency so that PRAN FOOD Ltd can deliver maximum value for
the least possible cost. It measures financial performance through ration analysis for the
previous five years. Moreover PRAN FOOD strengths and competencies developed over
the years, it aims to provide the best working environment, good quality products for its
customers. In addition the major strengths of PRAN in Bangladesh are experience, large
economy, greater source of finance, greater control over sources of raw materials, risk-
pooling, huge distribution network, conforming to standards, economies of scale, creating
potential market in the new world place. Finally, it has a contribution to economic
progress in Bangladesh. In today world, export of food is ultimately an important way of
improving our Bangladesh economy.
 Page |7

CHAPTER ONE

Introduction to the Report

 Page |8

Food and beverage industry in Bangladesh

1.1 Industry Background:
Food industry is a rapidly growing sector in Bangladesh, employing a significant portion
of the labor force in the country. Between 2004 and 2010, the food processing industry in
Bangladesh grew at an average 7.7 percent per annum. Bangladesh Bureau of Statistics,
in its 25006 Economic Census, reported that there were approximately 246 medium-sized
food processing industries employing 19 percent of the industrial manufacturing
workforce in Bangladesh or 8 percent of the total manufacturing labor force. The food
industry employs 2.45 percent of the country’s total labor force and its share in the GDP
was 2.01 percent in 2010. There are also numerous small scale factories and domestic
units engaged in food processing throughout the country. According to some industry
analysts, the food processing sector in Bangladesh is a 4.5 billion US Dollar industry. In
2010, Bangladesh exported over $700 million worth of processed food and beverages,
over 60 percent of them were shrimp and fish products.

Food processing in Bangladesh has traditionally been small scale, with domestic or
family business using common processing knowledge for the conservation and handling
of raw agricultural commodities to make them usable as food and feed. Although
commercial scale of food processing, using modern technology especially for wheat and
rice milling, mustard seed crushing and very limited bread and cookie manufacturing
appeared during the 1960s, the growth of this sector did not gain momentum in terms of
operational scale and quality until the 1980s. Recently the defining characteristics of the
industry has been the processing of increasingly diverse products to meet the changing
demands of the Bangladesh population. The major food processing sub-sectors in
Bangladesh include dairy, edible oil, sugar, rice, wheat, fruit and vegetable, tea,
poultry/beaf, pulses and spices and fish processing industries. Induced by the vigorous
growth of the diverse middle class population of Bangladesh and the growing demands
for additional consumption, the food processing sector is set to witness further hefty
expansion in the coming years.
 Page |9

1.2 Objectives:

 To understand nature of competition of food industry using Michael porter’s Five

Forces Model.
 To develop the five years economic growth rate of Pran Food Ltd.
 To analysis the external environment of the food industry and internal
environment of Pran Food Ltd through SWOT analysis
 To identify problems of Pran Food Ltd
 To recommend solutions of the problems identified.

1.3 Limitations of the report:

 The problems I have faced while gathering information of the report are:
 The collection of necessary information was tough because most of the data are
not directly available.
 Since the staff of the firm was very busy, moreover, they had less knowledge and
time to give me the accurate information.
 The scope of collecting primary data was limited.
 Such a study was carried out by me for the first time. So, inexperience is one of
the main factors.
 P a g e | 10

CHAPTER TWO
Background of the
Company
 P a g e | 11

2.1 An Overview of PRAN FOOD Ltd:

The establishment of PRAN was based on the vision of providing products that enhance
health, nutrition, and well-being of society. Along the way it has contributed to increased
rural livelihood in its domestic country, improvement in the standard of living, a boost of
the national foreign reserve and employment generation. PRAN is keenly aware of its
responsibility for society and this awareness is reflected in its activities.

PRAN Food’s principal source of raw food material is contract farming. It greatly
contributes to an economic improvement of rural livelihood by means of employment
generation and overall improvement of the condition of the rural localities. Growers are
provided with quality inputs (seeds, fertilizers, pesticides), improved and advanced
cultivation techniques, access to finance, crop insurance, advanced storage and collection
system and access to the international market for their products. 

PRAN believes in providing benefits that are sustainable in the long-run. The provision
of tools, knowledge, and finance nurture self-sufficiency. Also, PRAN supports the
farmers working by providing them with financial assistance on every level. 

PRAN’s contributes to government expenditure in education, infrastructure development,

public employment generation and cash transfer under safety nets. It is also one of the
largest corporate taxpayers in its domestic country. 

 PRAN prides itself on being an organization that has performed excellently not only on a
domestic level but on a global level as well. As an environment friendly organization,
PRAN has set an industry-wide benchmark in its home country through its continuous
contributions to the economy. 

The talent management within the corporation has allowed its excellent workforce to
work together in building an organization that believes in providing equal opportunity for
everyone. Also, PRAN acknowledges all the complaints and suggestions given from
every single level of the organization. PRAN’s corporate culture is based on maintaining
 P a g e | 12

professional integrity. PRAN rewards competence and the workflow is deadline

oriented. 

As a company, PRAN has always endorsed environmentalism and understands its

responsibility to advocate and practice ecologically beneficial activities. Furthermore, it
nurtures the belief of taking care of each of its stakeholders as well as the society at large.
And so, PRAN puts its belief into practice by carrying out activities that benefit the
economy and thus, the people operating within that economy. 

Vision

Improving Livelihood

Mission

Poverty & hunger are curses. Their aim is to generate employment and earn dignity
& self-respect for our compatriots through profitable enterprises.

Corporate Values

PRAN prides itself on being an organization that has performed excellently not only on a
domestic level but on a global level as well. As an environment friendly organization,
PRAN has set an industry-wide benchmark in its home country through its continuous
contributions to the economy. 

The talent management within the corporation has allowed its excellent workforce to
work together in building an organization that believes in providing equal opportunity for
everyone. Also, PRAN acknowledges all the complaints and suggestions given from
every single level of the organization. PRAN’s corporate culture is based on maintaining
professional integrity. PRAN rewards competence and the workflow is deadline
oriented. 

As a company, PRAN has always endorsed environmentalism and understands its

responsibility to advocate and practice ecologically beneficial activities. Furthermore, it
nurtures the belief of taking care of each of its stakeholders as well as the society at large.
 P a g e | 13

And so, PRAN puts its belief into practice by carrying out activities that benefit the
economy and thus, the people operating within that economy. 
 P a g e | 14

CHAPTER THREE
Bangladesh Economic
Analysis
 P a g e | 15

3.1 Economic Importance of PRAN FOOD Ltd

The establishment of PRAN was based on the vision of providing products that enhance
health, nutrition, and well-being of society. Along the way it has contributed to increased
rural livelihood in its domestic country, improvement in the standard of living, a boost of
the national foreign reserve and employment generation. PRAN is keenly aware of its
responsibility for society and this awareness is reflected in its activities.

PRAN Food’s principal source of raw food material is contract farming. It greatly
contributes to an economic improvement of rural livelihood by means of employment
generation and overall improvement of the condition of the rural localities. Growers are
provided with quality inputs (seeds, fertilizers, pesticides), improved and advanced
cultivation techniques, access to finance, crop insurance, advanced storage and collection
system and access to the international market for their products. 

PRAN believes in providing benefits that are sustainable in the long-run. The provision
of tools, knowledge, and finance nurture self-sufficiency. Also, PRAN supports the
farmers working by providing them with financial assistance on every level. 

PRAN’s contributes to government expenditure in education, infrastructure development,

public employment generation and cash transfer under safety nets. It is also one of the
largest corporate taxpayers in its domestic country. 

PRAN prides itself on being an organization that has performed excellently not only on a
domestic level but on a global level as well. As an environment friendly organization,
PRAN has set an industry-wide benchmark in its home country through its continuous
contributions to the economy. 

The talent management within the corporation has allowed its excellent workforce to
work together in building an organization that believes in providing equal opportunity for
everyone. Also, PRAN acknowledges all the complaints and suggestions given from
every single level of the organization. PRAN’s corporate culture is based on maintaining
professional integrity. PRAN rewards competence and the workflow is deadline
oriented. 
 P a g e | 16

As a company, PRAN has always endorsed environmentalism and understands its

responsibility to advocate and practice ecologically beneficial activities. Furthermore, it
nurtures the belief of taking care of each of its stakeholders as well as the society at large.
And so, PRAN puts its belief into practice by carrying out activities that benefit the
economy and thus, the people operating within that economy. 

Leading internationally, compliant consumer brand producing 200 agro-food products in

10 food categories deliver over 110 countries. Categories include Juices, Drinks, Mineral
Water, Bakery, Carbonated beverages, Snacks, Culinary, Confectionery, and Biscuits &
Dairy.

Along with catering to the diverse tastes of our global consumer for since 1981, we
contributed in developing rural economy, generate employment, and export earning,
agriculture and consumer health through our shared values and commitment towards the
society and environment.  

(“Company Profile, n.d.)

3.2 Competitive Analysis of Pran Food:

Pran product’s market is in maturity stage, for this reason they have to face tough
competition. In this market there are several companies which are providing goods of the
same category. From the above pie chart we can see that “Pran” company is leading the
market with 43% share. By the following table we can analyze our competitors more
thoroughly:

Company’s name Description

Pran It is the market leader of 43% of
market share. This company is
in this market for several years.
For this reason the brand name
is well established and their
distribution channel is relatively
 P a g e | 17

better than other food and

beverage companies.
ACME It is in the market not for that
long but due to its marketing
strategy and good backup it is in
the second position with 20% of
the market share.
Shezan It is in the 4th position having
13% of market share though it
is in the market for a good
numbers of years its weak
marketing strategy is
responsible.
Danish It is having its 11% market
share because of its weak
distribution channel.

If we analyze the wholesale price and the retail price of our competitor then we can see
that there is a little differences between them and strong competition is in exist. Only
with the product quality, marketing strategy and distribution network they are competing
with each other.
 P a g e | 18

CHAPTER FOUR
Industry Analysis
 P a g e | 19

4.1 Porter’s Five Forces Model of Food & Beverage Industry

Threat of New Entrants:

In Bangladesh the leading food and beverage companies are Pran Food Ltd., ACI Foods
Ltd., Transcom Beverages, Akij Food and Beverage Ltd., Fu-Wang Foods Ltd., Ispahani
Foods Ltd. etc. The threat of new entrants depends on the barriers to entry.

Economies of Scale: New entrants in the food and beverage industry cannot easily take
over the existing firms of Bangladesh as they have low production cost and are enjoying
large economies of scale compared to its neighboring countries.

Brand name: The food and beverage industries of Bangladesh such as Pran Food Ltd.,
ACI Foods Ltd are leading the market from the very beginning which has already created
their brand name and customer loyalty. Thus new entrants have to invest a lot to build
their own brand name. Huge capital is required to enter into the industry.

Access to Distribution Channels: Pran Food Ltd., ACI Foods Ltd has their own secured
distribution channels which are barriers for the new entrants.

Government Subsidies: Bangladesh Government has already declared the food and
beverage industry as the priority sector as it is creating great opportunity and
entrepreneurship, employment and investment of higher value added products. In this
sector Government subsidies may give these industries long lasting advantages.

Government Policy: Entry into industries can be limited with controls such as licensing
requirements and limits on access to raw materials which is already being done by
Bangladeshi Government in this sector. However, the entrants of new firm can still be
observed, which is due to low production cost, high quality, availability of raw materials
from the countries like China, Thailand, India etc.

Threats of Substitute Products:

There are a lot of foreign foods and beverage companies like nestle, pepsico, coca cola,
unilever etc. Bangladeshi companies try their level best to cope with those foreign
 P a g e | 20

companies. As the price of local products is lower than the foreign products, threats of
foreign products are fewer here.
 P a g e | 21

Intensity of Rivalry among existing competitors:

In Bangladesh food and beverage industry, 25 firms are of equal size and power which
increased competition for the same customers and product resources such as Pran Food
Ltd., ACI Foods Ltd, Fu-wang Foods Ltd etc. Industry growth is glowing. For example
Pran Food Ltd. which is leading the market from a very long time. It reached to maturity
stage and now competes to gain market share.

Bargaining Power of Buyers:

Bargaining power of buyers in the food and beverage industry is increasing day by day.
Consumer demand for healthier food and beverage products has been increasing
exponentially. Many restaurants and food outlets have included low-calorie foods and
low-sugar drinks on their menus. Poke bowl restaurants and smoothie outlets are
emerging everywhere.

With increasing consumer demand for healthier foods and drinks, restaurateurs are now
allowing their customers to customize their own food and beverage ingredients according
to their diets, e.g. sugar free, vegan, Paleo, gluten free, and etc.

In Bangladesh Pran and ACI are the main food and beverage producing firms but the
substitute products are many more. The entrance of foreign brands like Nestle, Unilever
does not make the scenario easier. As the number of firms selling foods and beverage
both in local and international market, is growing, the bargaining power of buyers is
being strong.

Those firms are supplying foods to a large number of consumers. The purchasers are
much larger and so can exercise pressure on the suppliers.

The customers can easily switch to an alternative food producing firm at lower switching
costs.
 P a g e | 22

Bargaining Power of Suppliers:

In Bangladesh, the food and beverage industry, the bargaining power of supplier is
moderate as the number of suppliers is huge. The threat of forward integration by the
food suppliers is high as brand identity is not a critical issue in the food and beverage
industry in many cases in Bangladesh.

4.2 External Environment Analysis:

Identifying Industry’s Opportunities and Threats

Factors Relative Weig ht (B) B Score Weighted Opportunit Threats (F)

importan ce = A/51 (C) (1– score (D) (B ies (E)
largest (A–
rating (A) 10) × C)
largest (D) C)
(1–10)

Economic Factor 9 0.18 7 1.26 Opportunit

y
Consumer demand
is increasing
Demographic 9 0.18 7 1.26 Opportunit
Factor y
Markets
Opportunities
increased due to
increase in number
of populations
5 0.098 6 0.59 -1
Highly competitive
Threat
marketplace due to
increase in the
number
of firms
 P a g e | 23

Political Factors 5 0.098 6 0.59 -1

Employment law, Threat
tax law and
political unrest
increase the cost of
raw materials,
wages and
transportation.
5 0.098 6 0.59 -1
High Interest rate
6 0.12 7 Threat
Energy cost rises.
-1
Threat

Technological Factor: 6 0.12 7 0.84 -1

High R&D cost in the Threat
industry.
6 0.12 7 0.84 -1 Threat
Machines are
very expensive
and becomes
Obsolete very fast.

Analysis of the table: Here the positive value indicates opportunity and negative
value indicates threat of the industry.

From the table we see that economic and demographic factors are favorable to the
industry but under the demographic factors, increasing number of firms is creating threat.
Also political and technological factors are creating threat to the industry.
 P a g e | 24

CHAPTER FIVE
Company Analysis
 P a g e | 25

5.1 Internal Environment Analysis

Identifying Company’s Strengths and Weaknesses

Fields Factors Relative Weight Score Weighted Strengths Weaknesse

importa nce (B) (C) score (D) (E) s (F)
rating B=A/7 (B*C)
(1-10) Largest (D) Largest
(A) (1- 10) 5 (A-C)

Managem Management 9 0.12 7 0.84 Strength

ent Team
Knowledge- 9 0.12 7 0.84 Strength
able
Personnel
Advertising 5 0.07 6 0.42 -1
Campaign weakness
Marketing Brand 9 0.12 7 0.84 Strength
awareness
Distribution 8 0.11 6 0.66 Strength
Channel
Product 8 0.11 7 0.77 Strength
Variety
Pricing 7 0.09 6 0.54 Strength
Budget/ cost 5 0.07 6 0.42 -1
weakness
Finance
Financial 8 0.11 7 0.77 Strength
Position
Productio Production 7 0.09 6 0.54 Strength
n Capacity

Analysis of the table: Here more than 0.5 is considered as strength and less than 0.5
is considered as weakness.
 P a g e | 26

From the table management and marketing are in strength position but in marketing,
advertising campaign in weak position. In finance field, budget/cost remains in weak
position. And production field is in strength side.

5.2 Value Chain Analysis of PRAN FOOD Ltd

A value chain is a business model that describes the full range of activities needed to
create a product or service. For companies that produce goods, a value chain comprises
the steps that involve bringing a product from conception to distribution, and everything
in between—such as procuring raw materials, manufacturing functions, and marketing
activities.

A company conducts a value-chain analysis by evaluating the detailed procedures

involved in each step of its business. The purpose of a value-chain analysis is to increase
production efficiency so that a company can deliver maximum value for the least possible
cost.

(Tard, 2020)
 P a g e | 27

Primary Activities of Value Chain

Inbound Logistics:

PRAN FOOD Ltd. encourages contract farmers and help them grow quality crops with
increased yields and to obtain fair prices. They procure raw material directly from the
farmers and processes through the machineries at their several factories into hygienically
packed food and drinks products. The Group comprises of 10 companies. The head
offices are located at Dhaka with production facilities around the country. Their
management is modern adapted to the environment & culture and Prans largest asset is
their competent team of hands-on-mangers & dedicated employees.
 P a g e | 28

Operation:

PRAN FOODS LTD. is located in Dhaka, Bangladesh and is part of the Food
Manufacturing Industry. PRAN FOODS LTD. has 456 total employees across all of its
locations and generates 21.53 million in sales (USD).
PRAN has a wide range of refreshing beverage lines. Beverage brands like PRAN
Frooto, PRAN UP, Power, PRAN Lassi are some of the famous beverage brands from the
company produced in 3 factories situated in different locations and 16 depots to carry out
the production and distribution movements. Future plans for beverages include
introducing Lassi in HDPE line, milk added drinks, drinking water jar & pouch business.
PRAN is also introducing juice in carbonated soft drinks (CSD), and different type of
category extension PRAN has a wide range of refreshing beverage lines.

Outbound logistic:

In packaging, all their machineries and technologies used for production and packaging
are approved and imported from the JC technologies Japan. No direct contracts with hand
and products are happened in the production system.

Transportation entails moving inventory from point to point in the value chain. The goals
of transportation system are:

 To reduce cost

 To increase customer service

Inbound transportation system of pran includes collecting and carrying away raw
materials from different areas to the storage sites or warehouses.

In case of outbound transportation system Pran Foods follow distribution system. Within
domestic regarding distribution system there are 543 dealers of PRAN Foods Ltd all over
the country.

After producing goods at the production plant they are distributed to different sales
location using outbound transportation system. Pran use its own pick up vans to distribute
 P a g e | 29

the products from the warehouse to the different distribution centers located at 64
districts. In Dhaka & Chittagong city distribution carries the products using mini-vans to
retailers. But in another 62 districts the distributors use pickup vans to distribute the
products to wholesalers and retailers

Marketing & Sales:

Sometimes in terms of bringing any changes with the existing product customer
information and their feedback about product is recuired. In that situation pran takes the
help of following:

 Interactive marketing

 Marketing research

As producer consumer goods pran use two types of interactive marketing system: online
and conversation.

Pran has its own website where through a particular form customer can submit his
feedback or suggestions for a particular product. Assigned personnel from marketing
department response to that feedback or any type complain.

Pran has information center or customer service department through which it can
communicate with the customer. If there is any problem with the product the consumer
can directly or through the shoppers communicate with the company. The customer
service department actively works with the customer problem and complains.

In marketing research, it takes the form of survey on customers. The research may be
conducted by themselves or with the help of private consulting firm. They usually follow
“Questionnaire and Research Method”.

Services:

PRAN FOOD Ltd cares for their customer’s need and satisfaction. Through their
communication activities they let their customer know about the benefits of their products
and innovations. Their approach is to do responsible marketing and have four clearly
defined principles that guide their communications to satisfy their customers:
 P a g e | 30

 They aim at building trust through clear communication.

 They fully support their customer’s right to know what is in their products and
they are transparent in their ingredients. They provide clear communication about
their product ingredients, date of expire, nutrition values etc.

 They support their consumers by listening their suggestions, claims or feedback

through use of a combination of channels which includes websites and care line
phone numbers, etc to reduce any kind of misconception.

 They provide clear price communication

Supporting Activities of Value Chain

Technological Development:

PRAN FOOD Ltd is very much updated and technology based. Here world class quality
food is produced.

Human Resource Development:

Activities of human resource department are to ensure the proper section of personnel,
help the employees to grow and develop themselves, maintenance of personnel records,
and maintain cordial and peaceful labor management relationship to ensure discipline
among the employees.

Procurement: PRAN FOOD Ltd uses their own value chain to collect raw materials. All
inputs like equipment machinery are same.

Firm Infrastructure: PRAN FOOD Ltd has finance department, quality assurance, R &
D department, internal audit department, marketing and sales department, human
resource management and administration department, production department etc.

5.3 Balanced Scorecard Model

 P a g e | 31

The balanced scorecard is a strategic planning and management system that is used
extensively in business and industry, government, and nonprofit organizations worldwide
to align business activities to the vision and strategy of the organization, improve internal
and external communications, and monitor organization performance against strategic
goals.

(“What is Balanced Scorecard”, n.d.)

Figure: Balanced Scorecard Model

 P a g e | 32

  Objective Measure Target Initiative

Financial  Increase total  Revenue  Marketing to
revenue from stores  7% increase new target
 Reduction throughout in revenue markets to
Costs the country from the all remote
 Increase net  Financial previous villages of
income Statement year. the country
 Positive Cash Ratios  10% decrease  Buying raw
Flow  Cash flow in total materials at
 Increase in management expenses discount
asset value  Financial  12% increase through bulk
performance in net income purchase
from the  Increase in
previous year receipt from
 Maintain customers
65million
positive cash
flow
Custome  Achieve  Average no.  Increase the  Local
r customer of daily no. by 5% marketing
satisfaction customers than the campaigns
 Retain  No. of repeat previous year  Customer
customer for customers  To hold at loyalty
long term  Ensure least 80% of program
 Increase in quality in the present  Coupon
market share product to customers program
 Strengthen satisfy  Increase the In-store
brand customer product promotions
recognition  Avg. amount amount by & classes
of customer 5% than the
purchase previous year
Process  Add new  Customer  To serve all  Market
products to preferences customer survey
the product segments
line  Increase
customized
products
Learning  Innovation  Total no. of  Implement  Bonus for
& generated the new ideas the
Growth ideas successful
 P a g e | 33

idea
generator
 Motivate,  Employee  Achieve the  Better
recognize performance ascertained environment,
and retain target Training
staff programs

5.4 Resource Based View

Tangible Resources

Physical Financial Technological

Resources Resources Resources
 Furniture  Cash  MIS Control
 Plant and  Inventories System
Machinery  Account  ERP System
 Land Receivable
 Vehicles  Borrowing
 Building Capacity
 Stock  Advance,
 Equipment deposit

 Computers

Intangible Resources

Human Resources Reputation

 Employees  Brand Name
 Skilled and  ISO Certificate 9001
Knowledgeable Team
 Strong Management Team
P a g e | 34
 P a g e | 35

5.5 VRIO Framework:

Resources Value Rare Imitation Organizati Competitive
on Advantage
Brand Yes It is most Can be imitated Yes, the Temporary
Positioning in widely by competitors firm has Competitive
Comparison to known & but it will positioned Advantage
the available require big its brands
Competitors brand that marketing based on
customer budget consumer
can easily behavior
find.
Distribution Yes, as it As there is Can be imitated It take Medium to
and Logistics helps in linear by competitors advantage Long Term
Costs delivering distributio but it is difficult from low Competitive
Competitivenes lower costs nal distribution Advantage
s channel & logistic
that is costs
easily
available.
Marketing No, firms No, as Pricing Yes, firm is Competitive
Expertise are most of strategies are leveraging Parity
competing the often matched its in-house
based on competitor by competitors expertise
cost s have
leadership decent
in the marketing
industry know how
Product Yes, it is Most of Can be imitated The firm Provide short
Portfolio and valuable in the by the has used it term
Synergy the industry competitor competitors to good competitive
among Various given the s are effect, advantage but
Product Lines various trying to details can requires
segmentatio enter the be found in constant
ns & lucrative case exhibit innovation to
consumer segments sustain
preferences.
 P a g e | 36

Resources Value Rare Imitation Organization Competitiv

e
Advantage
Intellectual Yes, they Yes, IPR and Risk of So far the firm Providing
Property are other rights imitation is has not utilized Strong
Rights, extremely are rare and low but the full extent Competitive
Copyrights, valuable competition given the of its IPR & Advantage
and especially can't copy margins in other
Trademarks to thwart the industry properties
competitio disruption
n chances are
high
Successful Yes, No, as most Can be One of the Digital
Implementatio without a of the firms imitated by leading player strategy has
n of Digital comprehen are investing competitors in the industry become
Strategy sive digital into critical in
strategy it digitalizing the industry
is operations but it can't
extremely provide
difficult to sustainable
compete competitive
advantage
Customer Yes, as Yes, the firm It is very Going by the Providing
Community customers has able to difficult to data, there is Strong
are co- build a imitate the still a lot of Competitive
creating special culture and upside Advantage
products relationship community
with its dedication
customers
Brand Yes Yes, PRAN No PRAN FOOD Sustainable
awareness FOOD Ltd is Ltd has utilized Competitive
one of the its leading
leading brand brand position
in the in various
industry segments
 P a g e | 37

5.6 PESTLE Analysis of PRAN FOOD Ltd:

There’s no denying that the food industry is one of the strongest in the world — after all,
everyone needs to eat! Indeed, there are some interesting dynamics at play in this space,
like rising labor costs, which make it unclear just how profitable food businesses will
continue to be.

In this PESTLE analysis, we’ll look at the Political, Economic, Socio cultural,
Technological, Legal, and Environmental factors affecting the food industry; in
particular, we’ll look at how both restaurateurs and food distributors might be affected by
current trends.

PESTLE stands for Political, Economical, Social, Technological, Legal and

Environmental forces. These are discussed below according to PRAN FOOD
Ltd:
Political: Political issues hamper any company very much. Pran also faces the
same problem with it. Different political issues hamper their business. Due to
continuous sticks, riots, the company cannot import its raw materials or export or
distribute its produced goods in time. It helps to damage the reputation of Pran.

Governments across the world have expansive regulatory frameworks for every aspect
of the food companies. This includes the cleanliness of commercial kitchens, the
standards for storing and transporting produce, and even the requirements for laborers
in the food business. Without a doubt, this makes PRAN FOOD one of the most
tightly-regulated companies of all. On the plus side, this ensures that consumers aren’t
exposed to poor quality nutrition, but the complexities of regulation certainly take
away from the margins of the food business.

Economical: Economic condition of any country affects any business badly. The
organization faces problem with the money exchange rate, buying power of the
consumers etc. If these are low, then it is hard to earn good amount of profit. It is
also a hamper to maintain the quality. Pran also faces the same problem.
 P a g e | 38

As a general trend, the world’s population is only getting richer. That means that
individuals in the lower, middle, and upper classes all have more money to spend on
luxuries — including food. As a result, the overall revenue of the food industry is
growing, as individuals cook less and eat out more often. This has a positive effect
on PRAN FOOD.
Disposable incomes are growing for a reason: laborers are earning more money
these days. On the whole, the cost of hiring workers is increasing for the company.
This is caused by not only a growing demand for employees, but also higher and
higher government expectations for minimum wages. The effect of increasing labor
costs is simple low margin for the owner of the business, and thus less profit.

Social: Social changes also affect Pran Food. Society changes rapidly. So the
companies need to follow the changes. The firm tries to follow it and they try or go
with the latest trends.
Nowadays, scientists know more about the relationship between food and our bodies
than ever before. There’s a clear relationship between the food we eat and our personal
health, and consumers are conscious of this. As a result, many individuals are looking
for healthier ways to fuel their bodies. This doesn’t necessarily have a positive or
negative effect on the food industry, but it means that businesses will have to adapt to
stay relevant. For example, PRAN FOOD will likely have to move away from
traditional, high-calorie fried foods towards healthier alternatives.
Aside from having a better grasp of what kinds of food are and aren’t healthy,
consumers are also more knowledgeable about their individual dietary restrictions. For
example, many individuals now understand the negative impact of gluten in those with
Celiac disease. This has led to consumers expecting greater understanding on behalf of
those who work in the food company. Once again, this isn’t necessarily a bad thing,
but it means that the food company will have to make changes to keep clients happy.

Technological: Technology plays a very important role in any business. In the

countries where the Technology is good enough, there, the production is very high.
 P a g e | 39

Also the technological support by the government is very important.

We’re seeing various types of automation more and more in the food companies. As
we find more ways to use technology — including robots — in the food companies,
there will be less need for laborers. Overall, this is a good thing for the company, as
it will allow businesses to improve profitability and reduce the likelihood of human
error.
Legal: One countries law and legal system is very much influencing to any business. If
the law and the acts are company friendly, it is very much easy for the companies to run
well.

As touched upon in the Political section of this PESTLE analysis, the food company
has high standards for safety matters. In particular, there are scores of rules in every
country on how food should be transported, stored, and prepared— including
directions on what temperatures various food types can reach, how they should be
cleaned, and so on. While this is indeed largely a Political issue, it becomes a Legal
matter if any of these regulations are ever breached. As such, those in the PRAN food
business need to be extremely careful to ensure that they stay within the bounds of
these rules to prevent costly lawsuits.
Environmental: Environment plays a very much important role. The Companies need
to follow different laws and acts to keep the environment harmless. There are many
national international organizations working to save the environment. So, the
companies need to follow the rules set by those environmental bodies. PRAN FOODs
Ltd strictly follows the environmental laws to save the environment.
 P a g e | 40

5.7 BCG Matrix

Quadrant of BCG Growth Share Matrix:

A company's business products can fall into any four categories in BCG Matrix in the
form of: Stars, Question mark, Cash cows and Dog.

Position of Pran Foods under BCG Matrix:

STARS QUESTION MARKS

Juice: PET Bottle Drink: HDPE Shape Pack,

?
HDPE Bottle, Instant Powder
Drink: PET Bottle
Carbonated Beverage:
Mineral Water Forzade Plus

Bakery: Cake, Bread Snacks: Mr. Nut, Chira Laddu,

Muri Moa, Chira Bhaja, Tikka
Chanachur, Krako Chips
Carbonated Beverage:
PRAN Up, PRAN Maxx Cola,
Culinary: Cumin Seed Powder,
PRAN Lemon
Premium Tomato Sauce, Green Chili
Sauce, Rice & Allied Products (Biryani
Mix, Tehari Mix, Khichuri Mix), Honey
Snacks: Hot Chanachur, Potato
Cracker, Tom Tom Cracker, Chicken
Bite, Jhal Muri, Chutney
Confectionary:
Chocolate & Toffee, Chewing
Culinary: Chilli Powder, Coriander Gum, Lolli Pop, Cup Pudding
Powder, Mix Spice, Pickle, Tamarind
Sauce, Thai Chili Sauce, Sauce Sachet,
Jam & Jelly, Mustard Oil, Rice Products, Biscuits: Mama Wafer, Salty
Dal, Papadum, Noodles, White Vinegar Biscuit
 P a g e | 41

Confectionary: Dairy: PRAN UHT Milk, Milkman UHT

Milk
Candy, Fruit Bar

Biscuits: Biscuits, Fit Crackers

Dairy: Pasteurized Processed Milk

CASH COWS DOGS

Juice: Glass Bottle, Carbonated Beverage:

Aseptic Pack, Tin Can Energy Drink

Snacks: Chanachur, Dal Bhaja, Culinary: Turmeric Powder, Hard

Badam Bhaja, Fried Peas Molasses

Culinary: Chilli Powder, Hot Confectionary:

Tomato Sauce, Tomato Ketchup,
Edible Jell
Lachcha Semai

Biscuits: Toast

Figure: Evaluation of Pran Food’s Products by BCG Matrix

 P a g e | 42

Using BCG Matrix in Pran Food Ltd:

Without being a participant in the management team, it is difficult to accurately use the
BGC Matrix in Pran Food Ltd. However, after consultation with different level of
employee of the company, we have putted their different product in the BCG Matrix.
This is an assumption, not the exact one.

Products in the Question Marks are mainly the new arrivals and some of the products
which have not yet received wide popularity in the market, but have the potential for high
growth.

Products in the Stars are having high growth and high market share. With proper
management, supervision and marketing they will eventually turn into cash cow.

Products in the Cash Cows are having high market share, but growth is comparatively
less, as because they have already captured high market share. Now they need to hold
them. These are the best products from which the company basically enjoys the 'milk' of
success.

Products in the Dogs are having low growth, low market share. In case of Energy Drink,
they could capture good number of market share initially. But due to the availability of
toxic substance in the drink which were massively announced in the mass media, the
share reduced substantially. In the same way, toxic substance was found in Turmeric
Powder, for which eventually AMCL(PRAN) is planning to close the production.
P a g e | 43
 P a g e | 44

5.8 Product life cycle

The Product Life Cycle is an important concept in marketing. It describes the stages a
product goes through from when it was first thought of until it finally is removed from
the market. Not all products reach this final stage. Some continue to grow and others rise
and fall.
The main stages of the product life cycle are:
 Introduction – researching, developing and then launching the product
 Growth – when sales are increasing at their fastest rate
 Maturity – sales are near their highest, but the rate of growth is slowing down, e.g.
new competitors in market or saturation
 Decline – final stage of the cycle, when sales begin to fall
(“Product Life Cycle”, n.d.)

Every Pran foods have a life cycle. Some Pran foods faced all four cycles and gone to
dog product like Pran Noodles. Some are in Introduction known as Question Mark, some
are in Growth level known as star and some are in Maturity level known as Cash Cow.
Introduction Stage:

Drink: HDPE Shape Pack, HDPE Bottle, Instant Powder

Carbonated Beverage: Forzade Plus

Snacks: Mr. Nut, Chira Laddu, Muri Moa, Chira Bhaja, Tikka Chanachur, Krako, Chips

Culinary: Cumin Seed Powder, Premium Tomato Sauce, Green Chili Sauce, Rice &
Allied Products (Biryani Mix, Tehari Mix, Khichuri Mix), Honey

Confectionary: Chocolate & Toffee, Chewing Gum, Lolli Pop, Cup Pudding

Biscuits: Mama Wafer, Salty Biscuit

Dairy: PRAN UHT Milk, Milkman UHT Milk

Growth Stage:
 P a g e | 45

Juice: PET Bottle

Drink: PET Bottle, Mineral Water

Bakery: Cake, Bread

Carbonated Beverage: PRAN Up, PRAN Maxx Cola, PRAN Lemon

Snacks: Hot Chanachur, Potato Cracker, Tom Tom Cracker, Chicken Bite, Jhal Muri,
Chutney

Culinary: Chilli Powder, Coriander Powder, Mix Spice, Pickle, Tamarind Sauce, Thai
Chili Sauce, Sauce Sachet, Jam & Jelly, Mustard Oil, Rice Products, Dal, Papadum,
Noodles, White Vinegar

Confectionary: Candy, Fruit Bar

Biscuits: Biscuits, Fit Crackers

Dairy: Pasteurized Processed Milk

Maturity Stage

Juice: Glass Bottle, Aseptic Pack, Tin Can

Snacks: Chanachur, Dal Bhaja, Badam Bhaja, Fried Peas

Culinary: Chilli Powder, Hot Tomato Sauce, Tomato Ketchup, Lachcha Semai

Biscuits: Toast

Decline Stage:

Pran Achar
 P a g e | 46

5.9 Ratio Analysis of PRAN FOOD Ltd:

Net Profit Margin:

The net profit margin is equal to how much net income or profit is generated as a
percentage of revenue. Net profit margin is the ratio of net profits to revenues for a
company or business segment. The net profit margin illustrates how much of each dollar
in revenue collected by a company translates into profit.

(Murphy, 2020)

Here the Net Profit Margin of Pran Food Ltd. is shown for the five years:

Year Net Profit Margin

2014 3.22%
2015 2.95%
2016 2.53%
2017 2.31%
2018 2.19%
 P a g e | 47

Net Profit Margin

3.50%

3.00%
Here from the
2.50%
Net Profit Margin
graph we see
2.00%
that the lowest
1.50%
net profit
1.00%
margin is
0.50%
2.19% in 2018
0.00%
2014 2015 2016 2017 2018 and the highest
net profit
margin is in 3.22% in 2014. The net profit margin is decreasing from 2014 to 2018. The
reason behind of this decreasing is net profit after tax of Pran Food Ltd. is decreasing as
its operating expenses are increasing day by day.

Return on Equity:
ROE is considered a measure of how effectively management is using a company’s assets
to create profits.

Whether an ROE is considered satisfactory will depend on what is normal for the
industry or company peers.

As a shortcut, investors can consider an ROE near the long-term average of the S&P 500
(14%) as an acceptable ratio and anything less than 10% as poor.

(Hargrave, 2020)

The ROE of Pran Food Ltd. is given below for the five years:

Year ROE
2014 11.38%
2015 10.75%
2016 9.73%
 P a g e | 48

2017 9.57%
2018 9.21%

ROE
12.00%

10.00%

8.00%
ROE
6.00%

4.00%

2.00%

0.00%
2014 2015 2016 2017 2018

Pran Food Ltd. used its asset more efficiently in 2014 compare to other four years. Here
we see that the lowest ROE is in 2018. So we can say that the company should take some
effective measures to increase its ROE in future.

Return on Asset:
Return on assets (ROA) is an indicator of how profitable a company is relative to its total
assets. ROA gives a manager, investor, or analyst an idea as to how efficient a company's
management is at using its assets to generate earnings. Return on assets is displayed as a
percentage.

Return on Assets (ROA) is an indicator of how well a company utilizes its assets, by
determining how profitable a company is relative to its total assets.

ROA is best used when comparing similar companies or comparing a company to its
previous performance.

ROA takes into account a company’s debt, unlike other metrics, such as Return on Equity
(ROE).

(Hargrave, 2020)
P a g e | 49
 P a g e | 50

ROA of Pran Food Ltd. of five years is shown below:

Year ROA
2014 5.07%
2015 3.69%
2016 3.63%
2017 3.76%
2018 3.88%

6.00% ROA
5.00%

4.00%

3.00%
ROA
2.00%

1.00%

0.00%
2014 2015 2016 2017 2018

From the above graph we see that the highest ROA of Pran Food Ltd. is 5.07 in 2014 and
the lowest is in 2015. Also there is a steady increase in subsequent years. The company
maintains consistency of its ROA.
 P a g e | 51

Total Asset Turnover:

The asset turnover ratio measures the value of a company's sales or revenues relative to
the value of its assets. The asset turnover ratio can be used as an indicator of the
efficiency with which a company is using its assets to generate revenue.

The higher the asset turnover ratio, the more efficient a company is at generating revenue
from its assets. Conversely, if a company has a low asset turnover ratio, it indicates it is
not efficiently using its assets to generate sales.

(Hayes, 2020)

Total asset turnover of Pran Food Ltd. of five years is shown below:

Year Total Asset Turnover

2014 1.58
2015 1.25
2016 1.43
2017 1.63
2018 1.77

Total Asset Turnover

2

1.5
Total Asset Turnover
1

0.5

0
2014 2015 2016 2017 2018

Here from the graph we see that the total asset turnover of Pran Food Ltd. is lower in
2015. But there is a good indication for next three years and total asset turnover is
increasing year after year. So the firm uses its assets efficiently to generate sales/revenue.
 P a g e | 52

Debt to Total Asset:

Total-debt-to-total-assets is a leverage ratio that defines the total amount of debt relative
to assets owned by a company. This information can reflect how financially stable a
company is. The higher the ratio, the higher the degree of leverage and, consequently,
the higher the risk of investing in that company.

The total-debt-to-total-assets ratio shows the degree to which a company has used debt to
finance its assets.

The calculation considers all of the company's debt, not just loans and bonds payable, and
considers all assets, including intangibles.

If a company has a total-debt-to-total-assets ratio of 0.4, 40% of its assets are financed by
creditors, and 60% are financed by owners (shareholders) equity.

(Kenton, 2020)

Debt to total assets of Pran Food Ltd. of five years is shown below:

Year Debt to Total Asset

2014 55%
2015 65%
2016 63%
2017 61%
2018 58%
 P a g e | 53

Debt to Total Asset

0.66
0.64
0.62
0.6
Debt to Total Asset
0.58
0.56
0.54
0.52
0.5
0.48
2014 2015 2016 2017 2018

Pran Food Ltd. used the highest amount of debt against its assets in 2015 but there is a
decreasing rate for subsequent years. So the company is trying to use its equity for its
assets. Financial distress risk is decreasing as there is a lower trend in debt to total assets.

Debt to Equity:
The ratio is used to evaluate a company's financial leverage. The D/E ratio is an
important metric used in corporate finance. It is a measure of the degree to which a
company is financing its operations through debt versus wholly-owned funds. More
specifically, it reflects the ability of shareholder equity to cover all outstanding debts in
the event of a business downturn.

(Hayes, 2020)
 P a g e | 54

Debt to equity of Pran Food Ltd. of five years is shown below:

Year Debt to Equity

2014 1.25
2015 1.91
2016 1.68
2017 1.55
2018 1.37

Debt to Equity
2.5

1.5 Debt to Equity

0.5

0
2014 2015 2016 2017 2018

From the graph, Pran Food Ltd. uses debt more compare to its total equity. In 2015, there
is a higher debt to equity compare to other years. But the debt to equity ratio is decreasing
after 2015. That means the company is trying to use equity.

Current Ratio:

The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations or those due within one year. It tells investors and analysts how a company
 P a g e | 55

can maximize the current assets on its balance sheet to satisfy its current debt and other
payables.

The current ratio compares all of a company’s current assets to its current liabilities.
These are usually defined as assets that are cash or will be turned into cash in a year or
less, and liabilities that will be paid in a year or less.

The current ratio is sometimes referred to as the “working capital” ratio and helps
investors understand more about a company’s ability to cover its short-term debt with its
current assets.

(Kenton, 2020)
 P a g e | 56

Current Ratio of Pran Food Ltd for the five years are given below:

Year Current Ratio

2014 1.39
2015 1.57

2016 1.31

2017 1.37

2018 1.42

Current Ratio
1.6
1.55
1.5
1.45
Current Ratio
1.4
1.35
1.3
1.25
1.2
1.15
2014 2015 2016 2017 2018

For Pran Food Ltd. there are ups and downs in current ratio. The highest is I 2015 and the
lowest is in 2016. But in recent years we see that there is an upward trend in current ratio.
So it can meet up its current obligations.

5.10 FINANCIAL PERFORMANCE

Operating Revenue:
The concept of operating revenue is important, because it reveals the core sales
productivity of a business. If the proportion of these non-operating revenues gradually
increases over time, it is a possible indicator that a business is scrambling to hide a
decline in the revenue generated by its core activities.
 P a g e | 57

Operating Revenue(BDT in
Year Million)
2014 73.88
2015 74.28
2016 69.86
2017 73.94
2018 69.53

Operating Revenue(in million)

75
74
73
72 Operating Revenue(in
million)
71
70
69
68
67
2014 2015 2016 2017 2018

From the graph we see that operating revenue is the highest in 2015 and the lowest in
2016. In 2016 operating cost was higher than revenue. The average operating revenue is
in near to 72.20 million.

Net Profit after Tax (in million):

Net profit can be used as a gauge to measure firm’s operational efficiency and
profitability versus other peer businesses. Financial analysis tools such as profit margin
 P a g e | 58

can be used to compare profitability. Comparing firm’s net profit margin against those of
competitors within the same industry and category allows the firm to know if it is
performing better or worse. Profit margins vary by industry, but all else being equal, the
higher a company's profit margin versus its competitors, the more efficient it is in
generating profits.

Net Profit After Tax(BDT in

Year million)
2014 55.58
2015 55.42
2016 52.99
2017 54.93
2018 55.54

Net Profit After Tax(in million)

56
55.5
55
54.5
Net Profit After Tax(in
54 million)
53.5
53
52.5
52
51.5
2014 2015 2016 2017 2018

From the above graph we can say that net profit after tax of Pran Food Ltd. is
maintaining stability throughout the year. But we see that in 2016 it was lower as
operating revenue also lower in that year.
 P a g e | 59

Total Position of PRAN FOOD

Total asset is financed by debt and equity. If we observe last five years we saw that most
of the asset is financed by debt than equity. Also we see that debt and equity is increasing
day by day as total asset is increasing. But we must say that debt financing is higher than
equity financing for Pran Food Ltd.

Year Total Asset(BDT in Total Liability(BDT in Shareholder's Equity(BDT

Million) Million) in Million)
2014 1095.91 608.84 487.06
2015 1505.71 988.66 517.05
2016 1459.27 914.82 544.45
2017 1463.02 889.24 573.79
2018 1431.44 828.33 603.11

1600

1400

1200

1000

800
Total Assets(in million)
600 Total Liability(in million)
Shareholder's Equity
400

200

0
2014 2015 2016 2017 2018
 P a g e | 60

Market price per share and EPS:

A company’s market value is a good indication of investors’ perceptions about its
business prospects. The range of market values in the marketplace is enormous, ranging
from less than $1 million for the smallest companies to hundreds of billions for the
world’s biggest and most successful companies.

Market price per share is higher than the face value of Pran Food Ltd.. Market price per
share is increasing year after year which is attractive for investors.

Market Price Per Earnings Per

Year Share Share
2014 203.17 6.93
2015 183.75 6.95
2016 185.42 6.62
2017 196.08 6.87
2018 209.25 6.94

250

200

150
Market price per share
Earnings Per Share
100

50

0
2014 2015 2016 2017 2018

Earnings per share as a metric are extremely important to measure company’s

profitability. In fact, in the entire subject of fundamental analysis, EPS is the only metric
 P a g e | 61

that isolates net income to find out what the shareholders are gaining by investing in the
company. We understand that a company is in the market to do business & make profits
and the investors invest in companies to be a part of company’s profitability. A
consistently growing EPS means that the investor is getting a share of company’s
growing profits consistently. Growing EPS also indicates that the company is creating
value for its investors. In contrast, a consistently falling EPS or negative EPS indicates
financial trouble, low profitability or consistent losses, & eroding investor value.

EPS of Pran Food Ltd. maintains stability and it is around 6. So it is good for investors.
Also we see that EPS of the firm is slightly increasing that means it creates value for the
investors. So there is a steady growth in EPS of Pran Food Ltd.
 P a g e | 62

CHAPTER SIX
Problems,
Recommendations &
Conclusion
 P a g e | 63

6.1 Problems:

There are some problems of PRAN FOOD Ltd which are given below:

 PRAN FOOD Ltd has many competitors which are marketing dairy products. It
has strong competitor (Arong) in producing chocolate milk.
 Uprising commodity price is also a problem for the product in newly introducing
into the market.
 Bangladesh government may establish a stringent product safety law, which
would entail product redesign work.
 It mainly produced agro based product and most of the products are perishable. So
it has to be preserved system.
 Current political unstable situation may affect the new product launching
activities.
 It has inadequacy of appropriate technology
 Lack of required capital
 Decreasing market share
 Sometime the PRAN product cannot reach in the definite geographical area
because of lack of communication.
 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
cannot bear it. :
 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.
 The PRAN Company is existing under the rules and regulation of agricultural
marketing company limited. So PRAN cannot take any instant decision to adjust
the sudden market changes.
 P a g e | 64

6.2 Recommendations:

As being a very successful organization and flawless management system enabled PRAN
FOOD Ltd to enjoy economic of scale through their profit maximization but as being a
part of the culture of Bangladesh through their share of quality products they should also
emphasize products that are within in the purchasing power of the General people of
Bangladesh and ensure that products should be of quality that equal in aspects to compete
with the international standards.

 PRAN FOOD Ltd needs to take instant decision to cope up with sudden market
changes.
 They should give price advantage to their customers.
 Upper class, middle class and lower class should give the opportunity to bear
PRAN FOOD Ltd products
 Geographical coverage is very important for any organization. They need to
develop good communication system so that its product can reach any areas.

6.3 Conclusion
PRAN FOOD Ltd is currently the most well known household name among the millions
of people in Bangladesh. By the above discussion we come to know about all the external
and internal environmental factors of Pran foods. The brand name Pran is popular all over
the Bangladesh. Having a good promotional activity Pran products take a suitable market
place in Bangladesh. As Pran is a Bangladeshi brand so we have to support it for our own
development and Pran has to develop their technology to improve their product quality at
a high position that’s why it touch the consumer hearts. As we are Bangladeshi so we
have to support our local products and for this the companies have to develop their
 P a g e | 65

product. If it become success then we have an opportunity to be a develop country in

future by internal transaction

References:

Company Profile. (n.d.). Retrieved January 20, 2020 from https://www.pranfoods.net/

Hargrave, M. (2020, May 13). Return on Equity – ROE. Retrieved May 19, 2020 from
https://www.investopedia.com/terms/r/returnonequity.asp

Hargrave, M. (2020, April 12). Return on Assets—ROA. Retrieved April 21, 2020 from
https://www.investopedia.com/terms/r/returnonassets.asp

Hayes, A. (2020, April 27). Debt-To-Equity Ratio – D/E. Retrieved May 2, 2020 from
https://www.investopedia.com/terms/d/debtequityratio.asp

Hayes, A. (2020, April 28). Asset Turnover Ratio. Retrieved May 2, 2020 from
https://www.investopedia.com/terms/a/assetturnover.asp

Kenton, W. (2020, April 10). Total-Debt-to-Total-Assets Ratio Definition. Retrieved

April 18, 2020 from
https://www.investopedia.com/terms/t/totaldebttototalassets.asp

Kenton, W. (2020, April 28). Current Ratio. Retrieved May 8, 2020 from
https://www.investopedia.com/terms/c/currentratio.asp

Murphy, C.B. (2020, February 18). Net Profit Margin. Retrieved February 26, 2020 from
https://www.investopedia.com/terms/n/net_margin.asp

Product Life Cycle. (n.d.). Retrieved January 25, 2020 from

https://www.tutor2u.net/business/reference/product-life-cycle

Tard, C. (2020, January 11). Value Chain. Retrieved January 25, 2020 from
https://www.investopedia.com/terms/v/valuechain.asp
 P a g e | 66

What is Balanced Scorecard. (n.d.). Retrieved January 20, 2020 from

https://balancedscorecardwa.org/what-we-do/