North South University

Spring-2021

MGT212-Organizational Management
Section: 19
Group no-5
Group Project
Assigned to-
Shabab Absarul Islam (SAI2)
Lecturer, Department of Management
School of Business and Economics (SBE)
North South University

Assigned by -
Afsara Akter Simran: 2111065630
Ayesha Akter Navina: 2011951630
Maisha Nayeem: 2013956630
Mehjabin Nahid Monal: 1922062030

Date of Submission: 18th May, 2021.

 Acknowledgement

To begin with, we are very grateful to GOD ALMIGHTY, for without his grace and
blessings, this study would not have been possible.

We would also like to express our deepest gratitude to our project supervisor Shabab Absarul
Islam. He truly has been a great inspiration and a beacon of knowledge for all of us,
motivating us in these tough times and making his classes more engaging for each and every
one of his students. It was a privilege to get to work and learn under his guidance.

Extending a heartfelt gratitude to all our friends and family who have helped us and
supported us, without whom this study wouldn't have been possible; and a big thank you to
the Management Department of North South University.

Last but not the least, we would like to take a moment in memory, and offer a special
thankyou to Farin Zahan Moon, one of our group members who isn’t with us anymore. Moon
was a beautiful soul who had initiated this paper in the beginning, without whom we would
have been lost. She was one of the strongest and confident human beings we had come
across, with a long list of attributes and talents. May her soul rest in peace, and our deepest
condolences to her family.
 Letter of Transmittal

May 18, 2021

Shabab Absarul Islam [SAI2]
Lecturer, School of business and economics
North South University
Dhaka-1229, Bangladesh

Subject: Submission of final report on Aarong Dairy.

Dear Sir,
We firstly would like to extend our deepest gratitude for helping us throughout the semester.
It is our utmost honour to be able to submit to you our final report for MGT212.
We had initially decided to go for another company, however as you know, we had to change
at the last minute. When working on this report, we have come across a lot of information,
internal and external, about how the company runs which we think you will find quite
interesting.
We would like to thank you again for helping us and guiding us, both in and out of course
during this semester when times were bleak.

Best regards,
Afsara Akter Simran: 2111065630
Ayesha Akter Navina: 2011951630
Maisha Nayeem: 2013956630
Mehjabin Nahid Monal: 1922062030
 Purpose of our research

 To determine SWOT analysis of Aarong dairy.

 To have a lineament on present administration grid of Aarong dairy as one of the most
exceptional dairy firm industries in Bangladesh.
 To acknowledge the HRM of Aarong dairy.
 To know about every sight of the organogram of Aarong dairy.
 To know the management concerns of Aarong dairy.
 Effect of PESTEL on progress of Aarong dairy.
 To concede communication foundation with group administration of Aarong dairy.
 To uncover Hofstede’s social estimation of Aarong dairy.
 To know the employee's attainment pointers on ingenuity and result.
Contents
Introduction; ........................................................................................................................8
Mission Statement: ..............................................................................................................8
Vision Statement: .................................................................................................................8

Executive summary: ….........................................................................................9

Corporate Social Responsibility (CSR): ...........................................................................10
Agriculture and food security: .......................................................................................10

Support farmers: ............................................................................................................10

Microfinance: ..................................................................................................................10
Health, nutrition and population: .................................................................................11
Covid-19 responsibilities: ...............................................................................................11
Gender justice and diversity: .........................................................................................12
Community Empowerment: ...........................................................................................12
Organogram ..........................................................................................................................13
Hofstede’s Cultural dimension ............................................................................................14
Power Distance: ...............................................................................................................14
Individualism Collectivism -: .........................................................................................14
Masculinity-Femininity: ................................................................................................15
Uncertainty Avoidance: ..................................................................................................15
Long-term and short-term orientation: …................... ...............................................15
PESTEL analysis.................................................................................................................16
Political: ...........................................................................................................................16
Economic: ........................................................................................................................16
Social: ...............................................................................................................................17
Technological: .................................................................................................................17
Environmental: ...............................................................................................................17
Legal: ...............................................................................................................................17
SWOT analysis......................................................................................................................18
Strength: ..........................................................................................................................19
Weakness: ........................................................................................................................19
Opportunities: .................................................................................................................20
Threats: ...........................................................................................................................20
BCG-Matrix analysis model...............................................................................................20
Stars: ................................................................................................................................21
Questions Mark: .............................................................................................................21
Cash Cow: ........................................................................................................................21
Dog: ..................................................................................................................................22
Porter’s five forces model: ......................................................................................18
Competitive Rivalry: .................................................................................................18
Supplier Power: ................................................................................................19
Buyer power: .....................................................................................19
Threat of substitution: ........................................ .........................................

Threat of new entry: ..............................................................................................20

Management Issues: ...........................................................................................
Leadership .....................................................................................................................24
Management.........................................................................................................
Motivation...........................................................................................................................22
FARMER’S SUPPORT CENTRE: ............................................................................22

Financial Sustainability: ...............................................................................22

USE of ICT: ....................................................................................22

Aarong Dairy art competition: ..................................................................23

Polli shomaj:................................................................................................23
Psychosocial support: ..................................................................................................23
Capacity development of farmers: .............................................................................23
Team and communication...............................................................................................20

Transparency and authentic leadership: ........................................................21

Building community institutions: ................................................................................21

Bridging management and field: ................................................................21

Controlling........................................................................................................................29
Conclusion ....................................................................................................................29
References.........................................................................................................................30
Appendix.................................................................................................................................32
 Introduction
Aarong Dairy is a renowned organization was launched in 1998 by the BRAC Dairy social
project to support the growth and advancement of dairy farmers in rural milk. The primary
reason why Aarong Dairy was established was only for empowering rural people and
particularly farmers and women to get the right price of their products. Aarong Dairy
nowadays not only guarantees reasonable prices for its rural farmers, but has also provided
cattle production and skills training, vaccinations and feed agricultural facilities. Upwards of
50,000 dairy farmers participate directly in the 100 chilling centres of Aarong Dairy, with 64
percent women. Each 2 seconds there are more than 2 packets of Aarong milk made. Today
the only Bangladeshi dairy company with ISO 22,000 certification, is Aarong Dairy, which is
a case in point at each and every level of dairy production, manufacturing and distribution
which contributes to the record in safety of dairy products. The overall Aarong dairy
production is approximately 2,59 lakh litres of milk per day. The dairy's market share is also
steadily growing. Aarong Dairy has acquired consumer trust and is now the country's number
one brand. (Aarong Dairy gains customers’ trust, becomes No. 1 brand | daily sun, 2021)

Mission Statement
Aarong Dairy, a BRAC Enterprises social company has mission to reach its goal. The
original mission of BDFP was to gain access to the milk farmers market and eventually to
support them generate revenue. The objective of BDFP has been extended over time to
include supplying its customer's high-quality milk. Milky goods are usually not commonly
available in Bangladesh with intermittent energy and consequently cooling. The informal
dairy sector still supplies 80 per cent of Bangladesh with bulk raw milk supplies to
consumers. BDFP provides 30% of Bangladeshis people who depend on the formal market in
milk, which sells milk processed and packaged. In essence, while transferring revenues to
rural areas, BDFP channels milk from rural regions to urban areas. (Aarong Dairy, 2021)

Vision Statement
In terms of vison statement, Aarong Dairy wants a society free of all kinds of violence and
racism, in which all are able to realize their ability. (BRAC: Page not found, 2021

Executive Summery
Aarong dairy is one of the established dairy brands now in Bangladesh. To serve the dairy
farmers in rural part, Aarong Dairy started its journey. It’s a food and dairy project under
world’s largest NGO BRAC. In the rural part of Bangladesh almost three out of two houses
have cows to produce milk. And the remaining milk can be sold to the next door and in the
local market. But they couldn’t store their unsold milk as not having proper preservation.
Mainly to help them and solve this problem BRAC came up with an idea to set up a milk
refined plant on those area so that they can gather milk from village at a good rate from the
local farmers. Which helps the farmers to make a profit-making section. Aarong dairy offers
microfinance loans to buy cattle’s and land for more milk production. It ensures all scale of
market favours contains refining, sterilization of milk, transporting to dispensation. Today
Aarong Dairy are not only providing modest rate for milk to their country side merchant.
Now they are also providing training offers for the cattle’s, vaccination program in village.
They product quality full milk products and the present condition of Aarong dairy in market
is good. They are increasing their product line day by day. Some of their products which are
doing really good in market is liquid milk, yoghurt, ghee, butter, different kinds of cheese,
flavoured milk. They have launched a new product line of sweets like gulab jamun,
roshgollah ,bundia . (BRAC Dairy & Food Project, 2021)

Aarong Dairy is the first dairy company in Bangladesh that have gained ISO 22000
accreditation for doing all processing to production work of dairy products by maintaining
safety record. (BRAC Dairy & Food Project, 2021) Their market sale during lockdown
increased in the year of 2020, March. During the lockdown to still now they are offering their
own home delivery service from door to door. They set up this product availability to keep
people home by ensuring all safety precautions. (Aarong Dairy all the time, 2021)
To do more better in the dairy sector of Bangladesh they should work for their advertisement
sector and should upgrade their online web site because people find it not working properly.
And all their product list is not available in their website. By keeping their mind about the
people of a developing country like ours they should produce more products with reasonable
pricing. Already they are well known for their product if they work properly by analysing
their competitor and stay focused, they will reach their desire goal one day.

Corporate Social Responsibility (CSR)

Social responsibilities are a part of any effective business culture. Corporate social
responsibilities are determined by their financial and cultural responsibilities in order to do
the right things for society. Here we are including some corporate social responsibilities of
Aarong Dairy which operates under Brac.

Agriculture and food security: Increasingly unstable climatic conditions pose

problems for farmers who are attempting to meet increasing food demands. Construct
manufacturing and distribution networks that deliver quality seeds at reasonable prices and
improve crop varieties and practices. Developing and promoting environmentally intelligent
farming techniques and developing markets using an approach that fosters enterprise and
enables the country to become autonomous in food production.

Support Farmers: As far as helping farmers are concerned, Aarong Dairy is a social
statement on its own. Dairy farmers did not receive fare rates and the cow crop would yield
small amounts of milk in their fields. BRAC Dairy was then formed in 1998 to assist dairy
farmers in solving this issue. Aarong Dairy noticed that, while a lot of locals were interested,
a stable market could not be found. Often, though, they found little demand or the demand
was too unreasonable to be profitable. Low milk provided by their cows also resulted in an
expensive method to produce milk. Some of the other problems facing milk farmers were low
breeding, inadequate veterinary facilities and limitations in cow feeding. BRAC now wanted
to guarantee market access for its farmers at reasonable prices, since they had contributed to
the output of milk. Aarong Dairy suits into it. The organization was starting to purchase milk
produced by farmers at very affordable prices. With the involvement of Aarong Dairy, local
farmers could have finally ensured payments based on their own level and output quality. It
was a tremendous encouragement. Aarong Dairy thus eliminated big problems for farmers,
such as where milk can be stored as well as how the milk can be transported. The main goal
is not inherently becoming a leading company, but rather to help build market access for and
guarantee fair prices to our dairy farmers. Not only does a consumer buy an Aarong Milk
packet, but they are directly liable for maintaining and providing over 50,000 farmers with a
nutritional content, as well. (Flash, 2021)

Microfinance: Brac's customized and varied pricing strategy helps families access
financial services, maintain and build properties, invest in small businesses, access jobs and
cope with emergency situations. In addition, financial literacy and a number of customer
security programs have been developed to make them stand out for their dedication to
customer-centric services. While Aarong Dairy was founded itself in 1998, its roots are far
back in the early 1980s, when the BRAC micro-financing program aimed at financing ultra-
poor farmers for the procurement and investment in cows was implemented. The BRAC
fertility treatment program has subsequently come into play and has supported farmers
effectively rear races of cows which have greatly increased their dairy supplies.

Health, Nutrition and Population: Brac hires a broad network of community health
workers to ensure people living in poverty have access to good quality, accessible services.
Social entrepreneurs are community workers who guarantee medical continuity, bridging the
gap between traditional health services and populations. In response to the latest coronavirus
outbreak, the aim is to target 80 million of Bangladesh's most vulnerable families. Their
response to COVID-19 focuses on the places most at risk: city slums, refugee settlements and
ultra-poverty citizens. BRAC is regarded as one of the most important political parties
concerned and since the onset of the pandemic has participated in nationwide forums for
discussion. In addition to the ongoing provision of its regular health services, the 50.000
community medical staff in BRAC work actively to educate the public of vaccines, myth-
busting and vaccine services. The government also provides direct assistance to our 700
community health workers for vaccinations. In their communities, BRAC Community health
care professionals are confident and play a vital role in alleviating concerns and frustrations
about vaccinations, especially with women in rural areas. Their work provides an important
understanding of the vital role of public health workers around the world. It is a key
infrastructure that is not accessible in the more developed nations at the same level. (COVID-
19: Let’s spread awareness, not fear, 2021)

Covid 19 responsibilities: Aarong Dairy, a BRAC social company, not only provides a
wide variety of high-quality dairy products, but also contributes to social activities. The core
business objective of the BRAC company is to build a social effect of progressive and
humanistic interests. Nothing is distinct from the Aarong Dairy e- commerce platform. When
COVID-19 locked everybody indoor in March 2020, it unveiled the e-commerce website,
with safer steps to ensure the delivery of dairy products. The platform has been designed to
offer clients an easier shopping experience with Aarong Dairy in the interest of day-to-day
nutrition, and needs of the people. The increasing platform includes the Dhaka, Sylhet and
Chattogram regions for domestic deliveries. Aarong Dairy suppliers would never reduce their
hygiene, sanitation and wearing of masks to safeguard all safety procedures if they guarantee
delivery for 48 hours. Payment is facilitated also by cash payment methods and contactless
cards by debit and credit card and digital payments. Aarong Dairy provides a broad array of
dairy products to meet every day nutritional and personal requirements while ensuring
product quality and service, efficiency of time and the maintenance of all security measures
on its website. Aarong Dairy is the ideal e-commerce site for caring for the body and health
of its own and at the same time making an impact on the environment, with humanitarian
aspirations and objectives. (Aarong Dairy all the time, 2021)

Gender Justice and diversity: Female violence is an extremely entrenched pattern of

gender inequality and remains among the most prominent abuses of human rights in all
societies. Collaborating with men and boys is part of a solution to reform our culture as a
whole. The BRAC Interconnected transformative leadership method for gender enhances
women and girls' voice, choice and space to fight violence and eradicate all types of gender
discrimination through men and boys' active commitment. BRAC aims to change social-
cultural gender standards; develop capacity of employees and stakeholders; create a
supportive workplace; advocate equity between women and the sexes at all levels through
gender inclusion.

Community Empowerment: The provision of the tools for claiming rights, leadership,
and political action through community-level organisations, for people, particularly women,
are provided. At the same time, local government responsiveness and accountability are
enhanced, and women's climate is created without abuse through their possible realization,
and access to knowledge and services is increased.
 Hofstede’s Cultural Dimension

Power Distance:
In Aarong Dairy, the decision-making power is given by top-to-low managers who are under
high power distance. The operators of Aarong Dairy rely upon the decision of the Senior
Director. Without the approval of head operators, managers and distributors cannot take any
actions. Thus, the relationship is formed by organizers at the top to low stage.

Individualism-Collectivism:
Aarong dairy follows for them collectivism. Cultures of collectivism focus the needs and
objectives of the entire community on the wants and requirements of each individual. Since
they don't do well for themselves but for society as well. They offer consumers the best
quality and they support farmers as well. Collectivism has shown that Aarong Dairy has
strong links with other members of the community often and that they attempt to link people
together.

Masculinity-Femininity:
In terms of masculinity vs femininity, Aarong Dairy is more focus on femininity term.
Femininity represents a society that overlaps the social position of gender: men and women
are expected to be humble, delicate, and considered an essential part of life. Basically, it
helps both male and female farmers in rural areas by giving them the right price and
encouraging them to move forward. In addition, women farmers are constantly invited to
move forward and improve their skills. Many women are now encouraged to interact with
Aarong Dairy and to make money for their livelihood.(Aarong Dairy all the time, 2021)
Uncertainty Avoidance:
Aarong dairy continues their work with high uncertainty avoidance. If they did not control
their uncertainty, they would lose the profitable margin of the firm, as they deal with the
contracting farmers. But in the pandemic situation, they took the risk to deal with the external
farmers who were not connected with Aarong Dairy. Because the other farmers were facing
crisis in selling their milk as many stores were closed for the pandemic. Aarong Dairy also
facing many problems to stock the dairy products but they did not care for the profit. With
low uncertainty avoidance, they tried to help other needy farmers as their contracted farmers.
They have managed to help about 5,000 farmers regardless of their actual revenues. (Future
of food security: How social enterprises are keeping up during Covid-19, 2021)
Long-term and short-term orientation:
In Bangladesh, BRAC is one of the world-renowned companies. Aarong Dairy is part and
parcel of an international company and expects to succeed in the long-term orientation. This
dairy firm is scheduled for the long-term target of BRAC.
 Pestel Analysis

Politics:
Every Bangladeshi dairy firm must comply with government policies. In Bangladesh, we
have Bangladesh Standards and Testing Institution’s (BSTI) who detects the quality of the
milk and also the structure of the firm. According BSTI every dairy firm must have licence,
otherwise they can’t produce and supply milk. With the BSTI action in mind, the quality of
milk products is always maintained by Aarong Dairy.

Economy:
One of the biggest factors of an organization is the economic factor. Economic growth,
interest rates, currency, inflation, consumer and business disposable income, and so forth,
have a key role to play in the economy. The food industry interest rates are very low in
Bangladesh. The government provides lending through specialist banks like the Krishi Bank
of Bangladesh. The government has agreed that banks will borrow through Bangladesh
Bank's Tk 200 crore repayment fund at 5 per cent of the dairy farmers' interest. The system
will enable farmers to obtain loans from banks, which they will be rewarded in four and a
half years between Tk 50,000 and Tk 2 lakh. It will greatly boost dairy farmers' economic
conditions by taking loans and producing their goods. Poverty is also a major issue in
Bangladesh. Regarding Bangladesh's unemployment, Aarong Dairy gives the farmers the
equal value and encourages them to participate in the enterprise. (Low-cost loans for dairy
farmers, 2021)

Social:
Socio-cultural variables include common beliefs and demographic perceptions. Such
considerations include population development, distribution of age, health awareness and
career attitudes, etc. According to social factor, Aarong Dairy always conscious about health
awareness and also career attributes. They started delivering their goods through the e-
commerce platform in this pandemic situation concerning people's health. In order to meet
daily food requirements and personal desires, Aarong Dairy offers a broad variety of milk
products, protecting the consistency of the product and service, productivity of time and the
maintenance of all security procedures. Aarong Dairy has an influence on social services.
They also offer a platform for creating a farmers' career. (Aarong Dairy all the time, 2021)

Technology:
In modern days, technology is very essential and a key driver of globalization. Farmers also
benefit from technology to provide digital finance services. Microfinance customers can now
deposit their saving via our BRAC Bank's bKash mobile monetary network. It provides
borrowers with a versatile, easy and elevated option, allows them to deposit directly and also
increases their trust in mobile payments and familiarizes them with other mobile money
services. In this disease outbreak scenario, technology also plays a major role. The planet is
suffering from a pandemic situation where people are becoming more technologically
dependent. By using technology, we can shop from online platform. In this case, Aarong
Dairy is also offering their official online platform to connect with their customers.

Environment:
Recent times the environmental factor is rather powerless for any organization's survival.
The environment factor is considered as one of the major factors by Aarong Dairy. The
increasing shortage of raw materials and emission targets have made Aarong Dairy relevant
as an ethical and sustainable industry. Furthermore, Aarong Dairy does not market any
unhealthy goods to its customers.

Legal:
Legal requirements include - safety and security, fair opportunities, publicity requirements,
consumer protection and legislation, branding of products and quality of products. Aarong
Dairy effectively trades according to legal factors from the beginning. Aarong dairy
manufacture their goods according to people’s health protection with quality products. With
regard to trade, they are aware of government legal actions.

SWOT Analysis
Strength Weakness

1.Presently aarong dairy is one of 1.Tropical climate can hamper required

the leading companies of dairy
sector in Bangladesh.
2.Provides home delivery all over Bangladesh in
a lower delivery charge.
3.They have a vast factory in
Gazipur where works all
liters of fresh milk.
2.They charge higher product price and
for this good numbers of lower middle-
class family avoid buying from them.
3.Aarong dairy products like butter,
cheese is difficult to find all over
 experienced and talented Bangladesh.
Workers.
4.They are trying to become 4.Incongruity in milk supply structure
from rural area.
ecofriendly by producing more
less life line-based product
by using less chemicals.

Opportunities Threat

1.They can enter largest portion of the dairy 1.Dependency on dairy products from
market by providing and distributing all their abroad.
products all over Bangladesh.
2.They are producing new dairy products and
2.All products quality are not up to the
making their product line so adequate to run as
mark.
lead dairy company in near future.

Strength:
1.Have both male and female inexpensive labor.
2. Large numbers cows for producing more fresh milk.
3.Developed transportation system to carry litters of milk easily everywhere in Bangladesh.
4.Convenient weather and lands are best for dairy project.
5.Have plans for improving dairy sectors in market place.
6.Upgrade researching for polishing up their dairy sector more.

Weakness:
1.Weakness for aarong dairy would be indigent training grade for the progress of business
expertise, scarcity of opportunities for development, poor overseas market, oscillating rate
for milk etc.
2.Unpredictibility of milk supply from village market.
3.Low production of milk in our country because of having insufficient land and
environment.
4.Importing dairy products like cheese, butter etc.
Opportunities:
1.Expanding and opulent population of Bangladesh.
2.Worldwide expansion of dairy product consumption.
3.Dairy project farm need comparatively low marketing and advertisement.
4.Can start exporting dairy products by upgrading their milk processing system and
increasing milk production using modern technology.

Threat:
1.Using imported dairy products from abroad for most of their production.
2.Intensifying the use of chemicals to store milk.
3.Shortage of observation and estimating process in farm.
4.The farming land is lessening day by day and as a result most of the products are got
imported from foreign countries.

BCG Matrix

Relative market share

High Low

Ghee
Flavoured Drinks
High Cheese
Yogurt Drinks
Sweets
(Star)

(Question Mark)
Market Growth Rate
Low
Liquid milk
Milk Powder
Yogurt
Low fat products
Butter
 (Cash Cow) (Dog)

Stars:

Stars are the products that have the highest market share and highest growth rate. For Aarong
Dairy, their stars are their flavored drinks and yogurt drinks. These products already have a
large chunk of the market to themselves as they are cheap and have more of a traditional
flavor to them, and they are constantly growing with new products out now and again.

Cash Cow:
Cash cows are those products that have an enormous market share but very minimal growth
rate. Here, these products are their liquid milk, butter and yogurt. These items are probably
the most sought-after items when people think to buy liquid milk, butter or yogurt; however,
they don’t really innovate or change or market their products and hence, their growth rate is
barely there.

Question Mark:
Question marks are those products for a brand that don’t have a high market share but have
high growth rate. For Aarong dairy, these products are ghee, cheese and sweets. These
products don’t have a high market share; however, they do have new products that have the
ability to grow and are growing.

Dogs:
Last but not the least, dogs are those products for a brand that have low market share and low
growth rate. These are their milk powder and low-fat products. With so many powdered
milks in the market, their ones didn’t really find the chance to break out and hence never
growled or got the market, and their non-fat products are barely known in the market as of
yet.

Porter’s 5 forces model

Porter’s 5 forces are a statistic that helps us understand the competitiveness of the market for
a particular product and helps us analyze the profit a certain strategy we take might bring in.
Based on these statistics, Aarong Dairy can come up with a business plan and map out their
products competitiveness, where it stands on the market currently, who are their competitors,
etcetera. From here they set out to either improve a product, market a new product more,
introduce a new product or anything that might help them meet the goal they have with their
brand. (2021)

The following are Porter’s 5 forces:

1. Competitive Rivalry
Competitive rivalry looks at the competition, who our competitors are, what their prices are,
what their quality is like.
Aarong Dairy has a high market share for some of their products such as milk and yogurt.
Their Liquid milk sells more than any other company in the market and so does their yogurt
and they have 10% of the current market share. However, that’s not to say that they don’t
have competitors.
Brands such as Milk Vita and Pran are very high up there as well. Knowing all these, Aarong
Dairy can attract customers with aggressive price cuts and high impact marketing campaigns.

2. Supplier Power
Supplier power sees how many suppliers one has, how easy it is for their suppliers to increase
their prices and how much would it benefit a company to switch from one supplier to another.
Aarong Dairy is under BRAC, their Dairy and food projects. Most of their raw materials
come from their own in house, however Aarong Dairy does have good supplier power as they
one has multiples suppliers to choose from and two, they have in house production hence if
push comes to shove, Aarong Dairy has the capability to do all their raw material productions
in house.

3. Buyer Power
Buyer power is a customer's ability to change prices of a product and the ability for
customers to change the quality of a product. Aarong Dairy has some products that aren’t as
popular and widespread as their other products. In order to know what is wrong with what
power, Aarong Dairy can see what their customers are buying and what they aren't, and what
are the differences between those products and change them accordingly.

4. Threat of Substitution
Threat of substitution arises when a product which is similar to another comes in the market
that offers ALMOST the same advantages but is marketed differently. Examples for these are
most commonly butter and margarine or coffee and tea.
Aarong dairy does have quite a lot of substitutes, mainly with liquid milk to powdered milk.
Therefore, Aarong dairy tried to always keep their products to the best price possible and
have the highest quality. Their main marketing point is that they have all their products made
by people in rural areas and are not factory produced, and therefore they try to maintain that.
However, there are things such as almond milk or ricotta or margarine that have already
started to replace these items abroad. Therefore, Aarong dairy has to be on their feet and
ready with products when such a change is seen in the country.

5. Threat of New Entry

Threat of a new entry is just as the name suggests, it’s the threat of a new company entering
the market. Here it’s seen how easy it is for a new company to get into the market and take
over.
The dairy industry in the country is already pretty big, with a demand for milk 152.02 lakh
tons annually. However, the dairy industry is not that difficult to get into. Most of the
products made by big companies such as Aftab Milk and Milk Producer Ltd (Aftab Milk),
Akij Food and Beverage Ltd (Farm Fresh Milk), American Dairy Limited (MOO),
Bangladesh Milk Producers’ Cooperative Limited (Milk Vita), etc. arde products that can be
gotten and made at home. However, with how high the demand is in the markets and the
growth rate being as high as it is, it will be easy for a new company to get into this market but
continuing and surviving may become difficult. (Local milk industry: A revolution in white,
2021)

MANAGEMENT ISSUES

Aarong dairy confers on a regular basis to perform one step ahead of schedule, exceed
program goals, and grow the business. They intend to run this project not only to become a
pioneer, but also to ensure that the highest quality goods are produced in accordance with
customer demand.

But as we all know a company always got some drawbacks as well hence in a survey it is said
that 69% people know about all products of Aarong Dairy but another 31% portion does not
know about few products like sweet curd, Strawberry yoghurt drink, tamarind juice etc. To
enlarge the sale, they should make more of an effort to publicize their goods, which are
relatively unknown in the industry. It is also said that 28% daily consumers know Aarong by
signboard advertisements, 14% knows by newspaper but a vast number of people, almost 58-
60% knows the dairy products of Aarong through online. (BRAC Enterprises, 2021)
Therefore, they should emphasize more on online, for creating a better consumer
engagement. They should also swell their engagement with local super shops, minute stores
and departmental stores beside any other general stores and market place. Because of their
product's lack of availability in stores, Aarong dairy's sale proportion is lower than their
rivals. They should increase the number of distributors to ensure on-time and prominent
distribution of the goods. They need to look after their local workers to the market place from
time to time in order to get a better outcome. They should pay more attention to user
expectations and demands, regarding their credibility for product quality.

LEADERSHIP
Leadership is the art of empowering a group of people to work together toward a common
goal. More specifically, it entails directing staff and employees in accordance with a plan to
meet the needs of the company. Aarong Dairy is known extensively as BRAC Dairy. Having
milk from all over the world, on the other hand, presented its own set of problems. Each
region's milk has its own unique characteristics and flavor. Aarong Dairy established a multi
test to maintain compliance in all of their milk products. These tests aid in determining
product similarity, ensuring that all goods are manufactured in the same way. Aarong Milk's
powder milk is also made entirely from locally sourced ingredients. (Flash, 2021)

In 2006 Tamara Hasan Abed was in charge of Aarong Dairy which is particularly known as
BRAC Dairy as well and what an incredible lady she was. As soon as she joined the
department, she created a capable group and took the dairy business to new altitudes. Aarong
has grown from strength to strength under her leadership. (Tamara Hasan Abed redesignated
as the Managing Director of BRAC Enterprises, 2021)
At the end of the day Leadership is important, a leader motivates people to work at the same
time and in the same manner, guiding their actions. A leader must be accommodating enough
for others to give in to their demands, and they must be able to make informed decisions in
order to ascertain the best use of an organization's resources. To be a profitable business
leader, you must provide an analysis that go beyond administrative duties.

MANAGEMENT
Human resource management is the method of making decisions,
 preparing, coordinating, motivating, and managing employees. It also requires an
organization's human, physical, and information capital in order to achieve its goals
succinctly and conveniently. (What is Management? Definition, Features (Explained), 2021)

Due to various poverty-stricken procreation, a depletion of cow feed, and a lack of market
access, a large number of clients were looking into cattle. As a result, they were putting
themselves at risk. BRAC artificial insemination, for instance, is a social enterprise and
BRAC Feed Mills, have noticed these problems and improvements. Dairy farmers in the
countryside were able to enter broad metropolitan markets due to the fresh quality of their
goods, Furthermore, a need for milk in a single village was critical to providing a feasible
profit. Dairy farmers lacked a refrigerator in which to store their unsold milk. Sir Fazle
Hasan Abed the founder of BRAC, recognizing this precarious situation, devised a proposal
to demonstrate a milk processing plant that would receive milk from local farmers for a
reasonable price. As a result, in 1998, BRAC launched the BRAC Dairy and Food Project
(BDFP) to provide a market for dairy farmers in rural Bangladesh Aarong Dairy collects milk
from 50,000 registered farmers and sells it to the general public through the Aarong dairy.
With operations covering the entire dairy value chain, BRAC Dairy is the country's third
largest milk processor. (BRAC Enterprises, 2021).
Management focuses on a specific category of people whose obligation it is to integrate the
strengths and manage of the others in accomplishing a common goal. An organization's
factors of production, such as labor, investments, assets, and equipment, are used efficiently
and effectively by management in order to achieve strategic goals.

MOTIVATION
BRAC Dairy not only provides rational price for its countryside farmers who produces milk
but also provide vaccination to the cows and also extended to purpose cultivation facilities.
Aarong Dairy, which is a subsidiary of BRAC Dairy, a BRAC social enterprise, is committed
to developing dairy products that can help people live healthier and more satisfying lives.
Aarong Dairy has also committed to assisting Bangladesh's 54,000 dairy farmers in earning a
fair price and establishing a healthy livelihood. (RocketReach - Find email, phone, social
media for 450M+ professionals, 2021). BRAC is right now number one non-governmental
development organization in the world that includes innovation of new ideas, impact and
most importantly governance.

Aarong Dairy have always played a big part in terms of motivation other companies as well
as their own employees. For say, they have

FARMER’S SUPPORT CENTRE: Which basically provides agricultural

information service, more precisely the employees can visit there for instant suggestion
regarding any kind of difficulties they face during work.

Financial Sustainability: Development of lifetime and scale consistent economic goods.

It helps the dairy farmers to grow their income.

USE of ICT: Technological platform is being created for the farmers to get access and
spread information on good and better practices.

Aarong Dairy art competition: they organized a nationwide art competition for school
students to identify their artistic talents as well as prize-giving ceremony was held at
Bangladesh Shilpakala Academy in Dhaka and the champions were rewarded with
scholarships.

Polli shomaj: Social gatherings where low-income people can voice their opinions and
assert their rights.

Psychosocial support: Psychosocial emergency treatment and counseling assistance for

violence-sensitive people and mothers.

Capacity development of farmers: Distribution of farming and aquaculture

innovations, professional advice, preparation and the implementation of new varieties

If we look more into it then we can measure that almost 110 million people received health
and nutrition consciousness assistance through them. About 3 million children and young
people as well as adults got the opportunity to study. 1.5 million motherhoods have been
ensured and lot more responsibilities were fulfilled by BRAC. (Partnership, 2021).

TEAM AND COMMUNICATION

A team is a group of individuals who must collaborate to achieve a shared purpose or
performance. They successfully set an example of diligence at all levels of dairy production,
manufacturing, and distribution, contributing to dairy products' safety record. They basically
work as a catalyst. They are more into creating opportunities and taking initiatives as well as
a lot of risks for the people living is rural areas and are suffering from poverty to realize their
potential. Their only motive is to ease the lives of unprivileged peoples and saving them from
abandonment. BRAC has been providing a vast range of employment in Bangladesh. Almost
37,410 full time staffs, 53230 BEP teachers, 2439 project staffs as well as 789 service staffs.
(HR Policy System Implementation for all Employees of BRAC - Assignment Point, 2021)
In addition, BRAC supervises and emerges a massive pool of various human resources
throughout the country. BRAC is quite concern about all their employees and staffs working
in their organization, they are much more concerned about their rules, regulations and strictly
determined procedures.

Transparency and authentic leadership: BRAC developed a group for the chief
executive to exchange messages and to receive input on key developments and strategies.
Such a post clarified misunderstandings about a particular tax rule.

Building community institutions: Enhance the preservation of voices and the

realization of women's rights by community leaders.

Bridging management and field: For program teams, like a response team, BRAC
uses groups to coordinate in the areas affected by the floods in the districts of Bangladesh.
District officials share reports in real time and post photographs, which enable senior
managers to implement the situation and give field personnel instructions quickly.

CONTROLLING
When BRAC Dairy and food production (BDFP) was first initiated, it produced 140,000
litres of milk per day but now it has increased a lot and produces almost 250,000 litres of
milk per day. Approximately 1500 employees work behind these dairy productions thus
leading to make it one of the largest BRAC enterprises. The management believes that
controls are necessary to achieve the objectives and to communicate its vision to employees
at all circumstances. Determined policies, procedures, paperwork process, table of authority
and separation of staff duties made the organization transparent and clear.

CONCLUSION
In addition to dairy products and existing international brands, Aarong Dairy provides a
variety of dairy products for the supported dairy market in Bangladesh. Aarong Dairy is
Bangladesh's third-largest dairy producer, offering a diverse range of products. The best
accomplishment would be to win the customer's reliability in a short time. The dedication of
Aarong Dairy to develop Bangladesh's good lifestyle is two-fold. It focuses on determining
the value of milk for its customers as an essential part of a balanced diet. Aarong Dairy is
also dedicated to ensuring the health and well-being of local farmers and their families by
increasing their income through trade and encouraging dairy consumption in their own
homes. Aarong Dairy helps farmers and provides consumers with better goods. It's indeed
Bangladesh's large and rising industry. It can be Bangladesh's biggest dairy company with a
good quality development and higher supply chain. They currently have a good passion, but
in order to become a better version of themselves and a leader upon market, they must
concentrate on a various key consideration, as an illustration the marketing section. As a
result, they must examine retailer sales commissions in comparison to competitors in order to
achieve a higher rate of sales. Aarong Dairy will inevitably be able to achieve their desired
target if they begin to prepare for all of the important results and follow up on a regular basis.

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Appendix