INDIVIDUAL ASSIGNMENT

INTERCULTURAL
COMMUNICATION IN
BUSINESS
BM007-3-M-ICB

Submitted By:
Ravi Pokharel
NPB000168

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 ABSTRACT

This report is based on “The multinational PRAN-RFL Group” This report takes a look at
the overall production and the view that how PRAN-RFL maintains the production
procedure and the factors that affecting the production as well. This report is to find out
what is the most important factor behind increasing level of production, the problem
areas for lower production so that PRAN-RFL can improve the current situation of low
productivity hence lower sales and to measure the success or failure of the project on the
basis of improvements in the overall performance of the modules and increased
production due to this project. Secondly to find out the possible solutions that can be
taken into account to rectify the issues. It also includes the various leadership styles that
are included in the PRAN-RFL Group. Here I have analyzed the relationship between
organizational culture and communication practices in the context of leadership and
management in cross cultural environment. On preparing the report there is some
limitations and boundaries. Still it was enjoyable because PRAN-RFL is an excellent
organization where nothing is unstructured and unhygienic. PRAN-RFL believes in its
inflexible dedication to fulfill its customer needs and fulfillment and to become their first
alternative in the market, though it’s a controversial industry. After presenting my study I
rounded up with recommendation and conclusion and I look forward to learn from the
further study of this field

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TABLE OF FIGURES
Fig. Title Page
No. No.
1. Operational Management 4
2. Cultural Elements 9

TABLE OF CONTENTS
1. INTRODUCTION.......................................................................................................................... 1
2. HISTORY OF PRAN .................................................................................................................... 1
3. LEADERSHIP STYLE IN PRAN-RFL....................................................................................... 2
4. MANAGEMENT STYLE ............................................................................................................. 3
5. ORGANIZATIONAL CULTURE ............................................................................................... 5
6. CONCEPTUAL FRAMEWORK ................................................................................................. 6
6.1. FINANCIAL STATE OF PRAN-RFL GROUP ......................................................................... 7
7. ANALYSIS OF THE RELATIONSHIP BETWEEN ORGANIZATIONAL CULTURE
AND COMMUNICATION PRACTICES IN THE CONTEXT OF LEADERSHIP AND
MANAGEMENT IN CROSS CULTURAL ENVIRONMENT ............................................... 8
7.1. ELEMENTS OF CULTURE ........................................................................................................ 8
7.2. IMPACT OF CULTURE .............................................................................................................. 9
7.3. CULTURAL IMPACT ON PRAN AND ADAPTATION PROCESS .................................... 10
7.4. RELIGION ................................................................................................................................... 10
7.5. COMMUNICATION STYLES/ PRACTICES ......................................................................... 10
8. RECOMMENDATION ............................................................................................................... 11
9. CONCLUSION ............................................................................................................................ 12
10. REFERENCES ............................................................................................................................. 12

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 1. INTRODUCTION

PRAN-RFL Group started journey in 1981, this is view Observance in corporate

mission of the Group they contain over the years expand their behavior in several areas. PRAN-
RFL is biggest asset of their expert team management and dedicated workforce. PRAN-RFL
(LTD, 2020) started its operation in 1981 as a fruit and vegetable processors in Bangladesh. Over
the years, the company has not only grown in height but also contributed significantly to the
overall socio-economic development of the country. PRAN-RFL is Bangladesh's major farmer
oriented for fruits and vegetables. Their contract growers cultivate the choicest fruits and
vegetables, which are processed in their modern and hygienic factories to highest quality &
international standards. PRAN-RFL founded 29 years ago by many entrepreneurs with
experience in the product market of Bangladesh. Different types of products progressively more
popular today, forecasts suggest that annual sales of such products will grow at more than 49
percent for the next 3 years. Because the population is increasing day by day and products
needed is also increasing. To gain market share in this environment, PRAN-RFL is carefully
targeting specific segments with features that deliver benefits value by each customer group.

2. HISTORY OF PRAN

PRAN-RFL Group stands for “Programmed for Rural Advancement Nationally” and in Bangla
"ProgotiRupayoneAgraniNoboddom". PRAN GROUP (Ahsan, 2018) was inborn in 1980.
Keeping the view of commercial task of the group they have over the years diversify their
activities. Today they are the biggest processors of fruits & vegetables in Bangladesh. They
encourage contract farmers and help them grow quality crops with augmented 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. Their management is modern personalized to our
atmosphere and culture. Their largest asset is their competent team of hands-on-mangers and
committed employees. Agricultural Marketing Co Ltd-PRAN-RFL is the first food dispensation
company in Bangladesh to achieve the impressive dissimilarity ISO 9001:2000 certification for
their quality management system. This ultimate certification ensures that PRAN-RFL Products
reach the consumers table maintaining the highest level of quality. In addition to ISO, PRAN-
RFL has got worldwide certifications like HALAL and HACCP (Hazard analysis and critical
control points). They have set their goal as; “Be Number One”. It means that they are always
trying to give their customers the best product which will be in the number one position
eventually. For this goal they give their best potential labor in every stage. After serving the
millions at home successfully, PRAN-RFL has focused on exports to serve the billions. At

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present PRAN-RFL is the largest exporter of agro-processed food items of Bangladesh. In
recognition of the extraordinary performance in export PRAN-RFL has achieved the best
processed agro food exports trophy for the three last consecutive years. Currently PRAN-RFL
products are regularly being exported to 142 countries of the 6 continents all over the globe.
Major export markets are Asia, Middle East and Africa.

PRAN is the largest food processing company in Bangladesh started reaching out international
market since 1997 with canned pineapple to France which eventually increased into currently
110 countries from SE Asia, Middle East, and Africa mainly along with Europe and North
Africa. The exponential growth of export earnings for the group hit $150 million in 2016 which
were $51 million in 2011 achieving 183 percent growth in 5 years. Through stronger presence in
the international market, we strive to equal our local and global sales which are at 1:4 ratio
currently with total sales revenue of $500 million. And have a strong market base in India
accounting one-third of our global sales following with the Gulf and African countries as the
biggest buyer of our products. Through capital transfer, we intend to strengthen our base in SE
Asia region further.

3. LEADERSHIP STYLE IN PRAN-RFL

Leadership varies from man to man. Leadership works best when the employee and employer
work with the dedication to achieve the organizational goal. PRAN (Mukit, Ferdous, & Ahmed,
2012) has its clear vision and planning to achieve the target of the organization. As it is the large
company that comprises 10 companies, it is considered to be the tough task to maintain the
activity and the overall working staff of the company. The company largest asset is the
competent team of hands-on-managers and their dedicated staffs. The manager of the
organization treats their sub-ordinates with very friendly way and also plays very important role
in leading them in an effective way. The organization has differentiated the manager power in
various level of leadership power that ultimately result the vision of achieving the organizational
goal.

Democratic Leadership(Mukit, Ferdous, & Ahmed, 2012): The company wants to share the
ideas and views with the worker associated with it, expecting some ideas from the worker with
the decision that are made for any kind of work to be implemented in the future or on the behalf
of the organization. This shows the company is democrat where the worker are also considered
to be the part of an organization for achieving the goals.

Transactional Leadership(Mukit, Ferdous, & Ahmed, 2012): Sometime the company rewards
for the specific task they did, which is considered to be the motivation factor for workers. PRAN

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has such experts who are working for making the strategy for long- term motivating work
environment that are used for workers motivational plan.

Talking about motivating the employee:

Employee Motivation is the process that account for an individual’s willingness to exert high
levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some
individual need. Motivation mostly needed when the workers are low in their effort or
performance. The simplest and most intuitive approach to motivation is to satisfy an employee’s
need. The management leader of the company motivates their employers giving reward, special
offer, promotion and many others ways like:

• They make most workers motivated as they always try to make the best result out of their
employees.
• For motivating the employer they set the right job and well environment for the
employer.
• Sometimes they give employee’s different incentive offer like- performance based
reward, task based reward etc.
• Sometimes they offer outing beyond the job.
• The company shows the employee’s future basing on their job regarding their
achievements and other staffs.
• They set a personal example to follow by their subordinates.

4. MANAGEMENT STYLE

Management (Mukit, Ferdous, & Ahmed, 2012) refers to the administration of business practices
to create the highest level of efficiency possible within an organization. It is concerned with
converting materials and labor into goods and services as efficiently as possible to maximize the
profit of an organization. It is the business function that plans, organizes, coordinates and
controls the resources needed to produce a company’s goods and services. Operation
management is a management function. It starts with managing people, equipment, technology,
information, sales volume, profit maximizing, cost minimizing and many other resources. It is
the central core function of every company. This is true whether the company large or small,
provides a physical good or service and is for profit or not for profit, every company has an
operation management function. The key person of PRAN-RFL Group each business unit is
Chief Operating Officer (COO) who is the head of Operation. Under every COO there are many
operation managers who look after various product businesses. Operation Managers directly look

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after the production, import, procurement, distribution channel, accounts, financing sales & sales
feedback of finish goods or trading items after confirm the sales order. The key responsibilities
of operation managers are-

• Overseeing the production of goods and/or provision of services.

• To make sure an organization is running as well as it possibly can, with a smooth
efficient service that meets the expectations and needs of customers and clients.
• From raw material purchase planning to customer’s feedback of finish good.
• Profits maximize & cost minimize of the business.
• Planning, organizing, coordinating and executing all strategic operation & maintenance
activities.

• Directly participate in supervision to layout, installations of the equipment and machinery

testing and operation in factory.

• Planning and managing procurement of raw materials to ensure minimum inventory.

• To assure product quality, optimum utilization of men, machines & materials.
• To understand the market requirement by intensive work with/in market, customer, sales,
people and then finalize the best product at reasonable price with proper distribution
channel

Fig.1: Operational Management

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 5. ORGANISATIONAL CULTURE

An organizational structure defines how activities such as task allocation, coordination and
supervision are directed toward the achievement of organizational aims. It can also be considered
as the viewing glass or perspective through which individuals see their organization and its
environment. Talking about the PRAN-RFL group the organizational culture are as follows,
which are the best result to be considered for the success of the organization.

Pre-bureaucratic structures (HOSSAIN, AHMED, TASNIM, & ZAMAN, 2017) : Pre-

Bureaucratic Structures are common in small organizations. Such a structure includes centralized
management, where the key decisions lie with the strategic leader. PRAN-RFL is the democratic
leadership follower, so that although the management is centralized the decision are made with
the strategic leader.

Bureaucratic structures (HOSSAIN, AHMED, TASNIM, & ZAMAN, 2017): Unlike the Pre-
Bureaucratic Structures, the Bureaucratic Structures have some level of standardization. Such
structures are usually used in larger organizations. The PRAN-RFL is an multinational company
that pushes the organization to maintain the standard that are required for the competition of the
market.

Functional structure (HOSSAIN, AHMED, TASNIM, & ZAMAN, 2017): In a Functional

Organizational Structure the organization is managed according to delegation of command to
different functional areas; e.g. the chain of command may include a CEO, followed by functional
managers for the sales, marketing and production department, followed by their subordinates.
Making such functional structure in an organization result the organization for making the work
flow in an order that helps to make the work effective and maintain the structure of the company
for decade.

Divisional structure Matrix structure: In such organizations, functional areas are divided in
different divisions. In such a structure, each division has its own resources for independent
functioning. Similarly, the work flow are arranged such that the functional structure are
dependent which is the factor for better functionality of an organization.

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 6. CONCEPTUAL FRAMEWORK

Now the SWOT analysis of PRAN-RFL is given below:

1. Internal Strength: -

The internal strength of the PRAN-RFL are as: Risk pooling factor, Large company and
organization, Experiences, Superior source of finance, Better control over sources and raw
material, Financial support, Vast distribution network, Good reputation.

2. Internal Weakness: -

Unequal promotions strategy, Lack of first mover’s advantages, Lack of good control, A lot of
distance and a huge amount of transport cost, Internal promotion, Internal media planning,
Unpreserved item, Limited product range.

3. External Opportunities:

Demand in global market, large demand in local market, Domestic natural resources, cheap
labor, Ethnocentrism, Government incentives, Cash incentives.

4. External Threats: Huge competition, Competition in market price, Lack of benefits, Strict
health and technical standard, Changing choice of customers, Foreign competitor, Weak
distribution, changing market.

MARKETING STRATEGY OF PRAN-RFL GROUP PRAN-RFL is currently most well known

food and Beverage Company in Bangladesh. They are now the market leader of food & beverage
sector in the market position of Bangladesh .They always try to maintain some product standard
like HACCP, HALAL and ISO. Except that they are very conscious about their consumers,
investors, customers and all about stakeholders. As a market leader they have some market
strategy. PRAN- RFLs strategies are divided into 4 parts-

1. STRETEGIES FOR PRODUCT (Ahsan, 2018):

• Maintaining HALAL and HACCP (USA) standard
• Maintaining the international standard in food, beverage and plastic products.
• High export quality products.
• Quality Management standard of ISO (9001) and Export quality products which
attract both local and international customer.

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 • Long-lasting plastic products. Different foods and beverages for different age of
customers.
• Different flavors for different customer choice.
• Low rate of chemical and food color.
• Attractive colorful package like, bottle, packet etc.
• Changing products with the changing needs.

2. STRATEGIES FOR PRICE (Ahsan, 2018):

• Reasonable price of product for all kinds of customer.
• Cheaper product price than any other international companies of product.
• Maintaining high quality products with comparatively low price and discounts.
• Fix their product price cheaper than other local competitors.
• Discount & offers on their products in various occasion like EID, New Year, etc.

3. STRATEGIES FOR PLACE (Ahsan, 2018):

• Different category of foods & snacks in urban & rural area.
• Specifying market places according to the choice and needs of customers.
• Increasing local and international dealer in different part of the country and
promoting various scheme.
• To achieve a good position in international market.
• To be the market leader of local market.

4. STRATEGIES FOR PROMOTION (Ahsan, 2018):

• By sponsoring the various social media platform.
• Internet advertisement and Radio advertisement.
• Newspaper, magazine advertisement.
• Billboards and Lots of attractive TV Advertisement.
• Activate market with their products.
• National and international events.

6.1. FINANCIAL STATE OF PRAN-RFL GROUP

Currently PRAN-RFL (Ahsan, 2018) is exporting products to more than 70 countries including
neighboring India and Nepal. The demand for PRAN-RFL products in Nepal and India is rising
fast. Their export to India would be at least 10 times the current figure, if the non-tariff barriers

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facing the company are removed. The company has taken a move to construct an agro-
processing plant at Tripura in India to supply the products there at competitive prices. They
invest US$ 20 million there; it would help boost the exports to their country. The PRAN-RFL
group had launched their operation as an agricultural equipment manufacturer back in 1980.It
started producing agro-processing products in early 1990s and now it produces more than 500
farm products apart from plastic goods. The group also wants to boost export of its plastic
products to Japan, USA and Canada. Bangladesh has a great potential to tap the export market of
petroleum by product. The developed nations are importing the products from China and
Vietnam. They are now searching for new sources of the products at competitive prices. They are
more advantageous position than China and Vietnam. Buyers from the developed world are now
rushing to PRAN- RFL group.

7. ANALYSIS OF THE RELATIONSHIP BETWEEN

ORGANIZATIONAL CULTURE AND COMMUNICATION
PRACTICES IN THE CONTEXT OF LEADERSHIP AND
MANAGEMENT IN CROSS CULTURAL ENVIRONMENT

Culture is the collective programming of the mind which distinguishes the members of one
human group from another. Culture is patterned ways of thinking, feeling and reacting, acquired
and transmitted mainly by symbols. Culture is the guider of selection of appropriate responses in
social situations, social interactions, and business interactions. Culture is a learned behavior.
People learn do’s & don’t as they grow up. Thus culture is a system of values and norms that are
shared among a group of people and that when taken together constitute a design for living.”

7.1. Elements of culture (Uddin, 2018)

The elements of culture that affects PRAN in doing business and marketing its products are:-
• Language
• Religion
• Festivals
• Communication Style
• Economic philosophy

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 • Education
• Political philosophy

Language

Political
philosophy Religion

Culture
Norms
Value
System
Economic
philosophy Festivals

Communica
tion Styles

Fig.2: Cultural Elements

7.2. Impact of Culture

Culture affects
• Consumer behavior
• Local demand
• Buying decisions
• Brand Image
• Culture influences managerial styles and management decisions
• Culture affects the nature of business negotiations

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 7.3. Cultural Impact on PRAN and Adaptation Process
Languages in Bangladesh

The official language is Bangla, also known as Bengali. It is the first language of more than 98
percent of the population. It is written in its own script, derived from that of Sanskrit. Many
people in Bangladesh also speak English and Urdu.

Bangla vocabulary shows many influences. These include a strong Islamic influence seen in the
greetings of "Salaam aleykum" (Peace be unto you) and "Khoda hafez" (God Bless you) and
nouns from the Arab world such as "dokan" (shop), "tarikh"(date), "kolom"(pen) and "bonduk"
(gun). In West Bengal the Hindu influence is greater with the use of the Hindu greeting
"Namashkar".

PRAN Company in its all products writes the product name in Bengali. Also in its meeting
or any other types of conversation uses this language.

7.4. Religion
• The majority of Bangladeshis are Muslim. However, most still very much mix this with
pre-Islam folk traditions.
• Bangladeshis identify with the folk traditions of Bengali culture. This includes belief in
shamanism and the powers of fakirs (Muslim holy men who are exorcists and faith
healers), ojhaa (shamins with magical healing powers), and Bauls (religious mendicants
and wandering musicians). There is a strong tradition of music, dance, and literature that
includes classical devotions of Hindu and Muslim music.

PRAN here serves product with no alcohol and in its every products it inscribes the word
‘halal’.

7.5. Communication Styles/practices.

• Bangladeshis are quite implicit/indirect communicators. They tend to communicate
in long, rich and contextualized sentences which only make sense when properly
understood in relation to body language.

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• It is important for people who come from implicit/direct cultures to understand that their
communication styles may be seen as rude and the information provided inadequate.
• Personal space is less of an issue in Bangladesh than many European cultures. Bengalis
stand close when speaking to someone of the same gender and touch is common.
• However, when speaking with a woman the space is often increased.

8. RECOMMENDATION

PRAN-RFL should regularly communicate with other companies as well. They also should
think about the other country’s culture. They should also be active in providing proper
training to the employee so that they can cope with the external culture. The main thing the
multinational company should be aware about is they must knows about the body movements
and positions that are the comfortable with severa countries. The food habit of the different
countries are different so that they must cope with the several foods across the various
countries in the world. Same word may have different name so they should know the Name
of various things that are relevant to the particular society. It is compulsory for every
multinational company to gain much knowledge about different culture and market. Various
promotional strategy must be created for awareness and increase mind share amoug various
people. Conduct seminars and workshop for the marketers and consumer. They should
provide proper training to employees so that they can easily understand the hi-tech
technology. Formulation should be introduced for all level of ages. HR should interact with
labor as well as other staffs. HR should look after the problem of each employee and try to
solve according to his/her own experience.

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 9. CONCLUSION

As the market is growing more and more competitive, all the company especially the
multinational company should be more sensitive about the consumers demand and choices and
must give importance on that process which makes consumer pleasure. Multinational company
should take practices for making an international pr (Ahsan, 2018) (Mukit, Ferdous, & Ahmed,
2012) (HOSSAIN, AHMED, TASNIM, & ZAMAN, 2017) (Azim, 2016) (LTD, 2020) (Uddin,
2018)oduct to keep pace with the competitive marketing world. Making the body movements
and positions perfect is the most that for the particular country and for the particular society.
Giving importance on the global awareness, cross-cultural communication, take views about the
company and its products from the mango people both from the local and international market.
Company must gain knowledge about the color symbol for the difference occasion. Ensuring
employee presence to International conference and seminar is the most important thing. In this
time consumers goods market is very much competitive. PRAN is trying to get competitive
advantage through technology and quality products. So, overcome the weaknesses and make
them as the opportunities for the company.

I have tried my level best to make this report resourceful. The Results of this study will
ultimately assist in understanding about overall business portfolio of PRAN-RFL group.

10. REFERENCE

Ahsan, A. E. (2018). Evaluating Marketing Strategies of PRAN-RFL Group. Bangladesh.

Azim, A. (2016). Process of supply chain management: A Study on PranRFL (Rangpur Foundry
Limited) group in Bangladesh. Bangladesh.

HOSSAIN, A., AHMED, R., TASNIM, A., & ZAMAN, S. (2017). Organizational Structure and
Design of PRAN-RFL GROUP. Bangladesh.

LTD, P.-R. G. (2020). About Us | PRAN FOODS LTD. Retrieved 06 2020, from PRAN FOODS
PVT. LTD.: https://www.pranfoods.net/

Mukit, M. H., Ferdous, A., & Ahmed, M. (2012). Management Function in PRAN-RFL.
Banngladesh.

Uddin, M. (2018). International Marketing: A case study on PRAN. Bangladesh.

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