Course: Principals of Management (ALD1103)

Term Paper: Analysis of General & Task Environment of PRAN-RFL Group

Group: 3
Section: B
Submitted To: Lec. Md. Soleman Mollick

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Team Members:
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4. Name:
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5. Name:
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6. Name:
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Table of Content page no:
1. Introduction……………………………………………………………………………4
2. Internal Environment Analysis……………………………………………………….4-6
3. General Environment Analysis………………………………………………………6-7
4. Task Environment Analysis………………………………………………………….7-8
5. Impact of Internal and External Environments on the Consumer Goods Industry….9
6. Actions for Companies to Navigate Internal and External Challenges………………10-12
7. Case Studies or Examples…………………………………………………………….13

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Introduction:
Overview of the consumer goods industry:
The consumer goods sector includes commodities purchased for personal consumption, ranging
from everyday goods like groceries and hygiene products, gadgets and furnishings. Vital
elements encompass logistics management, regulations, sustainability, and varied distribution
channels. Flexibility and ingenuity are essential for thriving in this ever-changing field.
Overview of PRAN-RFL:
Pran-RFL Group is a prominent business holder from Bangladesh that is involved in the food
and beverage, plastic products, and agricultural machinery industries. It is growing throughout
the Middle East, Africa, and India (Osum) (The Business Standard) and sells to more than 145
nations. By 2030, the group hopes to export goods worth $2 billion (The Business Standard).
Importance of understanding internal and external environments:
Understanding both external and internal environments is crucial for organizations due to the
following reasons:
External Environment:
Recognize Opportunities and Dangers: Adjust to the economy, rules, societal changes,
competition, and market trends.
Strategic Planning: Identify objectives and control risks.

Internal Environments:
Optimize Resources: Effectively manage operational, financial, and human resources.
Sync Culture and Structure: Boost employee engagement and productivity.
Assess Performance: Set benchmarks and make constant improvements.

Integrated Approach:
SWOT analysis: combine insights for effective plans.
Balanced Scorecard: Match performance to goals.

Internal Environment Analysis:

 Corporate Culture and Values:

Pran-RFL Group is known for its commitment to excellence, originality, innovation and
satisfaction of its customers. The company’s has principles such as honesty, team spirit
and constant improvement. These values inform their operations and strategic choices
bringing about an environment that encourages employees to take risks and meaningfully
contribute to the success of the enterprise (Kotter 26).

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  Organizational Structure:
Pran-RFL has a hierarchical organizational structure which supports quick decision-
making process as well as operational efficiency. This structure consists of clearly
defined chain of command starting from the Board of Directors on top proceeding to
senior management, middle management and finally operational staff members.
Consequently, this properly outlined structure facilitates open communication between
different levels while maintaining it accountable (Mintzberg 15).

 Resources and Capabilities:

Pran-RFL’s resources include strong manufacturing base, extensive distribution networks
and a skilled workforce. The company has competitive advantage in consumer products
industry due to its ability to develop products better than competitors do; market research
skills; supply chain management capabilities etc.

 Owners:
Ownership of Pran RFL Group has a mixture of family members and many other
stakeholders who are actively involved in the company’s strategic direction, therefore
ensuring the long-term vision of the company is in line with its owners and shareholders’
interests.

 Board of Directors:
Pran-RFL’s Board includes experienced professionals who provide strategic oversight as
well as governance for it. Their various fields such as finance, marketing and operations
enable them to move across complex economic challenges (Tricker, R.B., 2015.
*lCorporate Governance: Principles, Policies, and Practices . Oxford University Press).

 Employees:
Employees are very important to Pran-RFL. In addition to conducting training and
development programs aimed at improving their skills and abilities; there are other
initiatives intended to ensure employee satisfaction and engagement through creating a
conducive working environment (Armstrong, M., 2020. *Armstrong's Handbook of
Human Resource Management Practice*. Kogan Page Publishers).

 Physical Work Environment:

Pran RFL's physical work environment includes manufacturing facilities, modern office
spaces, and logistics infrastructure. These facilities are designed to ensure efficiency,
safety, and sustainability, contributing to the overall productivity and well-being of the

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  Physical work environment:
Pran-RFL’s physical work environment consists of modern office buildings, advanced
production facilities, and comprehensive logistical infrastructure. These structures are
aimed for competency, safety and eco-friendliness thus adding to the work force’s overall
productivity and health (Duffy 1997 p. 20).
General Environment Factors:
The general environment includes 6 factors known as PESTLE to us. They are:
1. Political factors
2. Economical factors
3. Technological factors
4. Socio-cultural factors
5. Environmental factors
6. Legal factors

 Economic factors:
Bangladesh is an agricultural country a large sum of the citizens are involved in
agriculture. But it takes lot more effort when agricultural products are processed and
delivered. Very few of the companies realized the situation that investing more in the
agriculture and technology will be beneficial for every party. However, PRAN foods had
understood the power of agriculture in national economy, local expertise, low labor cost
and many other economic factors.
A. INDUSTRY IMPACT: Currently PRAN foods declares more than 9 thousand
farmers working in dairy with them which make a huge contribution to the
agricultural economy of Bangladesh.
B. COMPANY IMPACT: contributing on the agriculture will not only be fruitful
to the economy but will also increase the SBU of PRAN delivering new and
easy products to the customers

 Political Factors:
PRAN is doing cross border business. Maintaining a positive political impact is important
to keep the business running smoothly.

 Technological Factors:
In any market, technology plays a major role. Performance is very strong in the countries
where technology is sufficiently good. The government still has a high level of technical
assistance. PRAN REF Group adapting new technology to maintain quality of of their
goods and to create a sustainable business.

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  Legal factors:
Regulation and law of one country greatly affect any business. it is convenient for
business to function well if the rules and actions are favorable for corporations. PRAN
RFL Group maintains its quality and business environment law friendly. As they are
doing business both inside and outside the country, they must keep the laws and
regulations of other countries in check to conduct business.

 Societal & Cultural Factors:

Social and cultural changes impact a company. This sector is sometimes quickly
changing, sometimes stays constant for over decades. The businesses try their best of
capture tracks of the change and nurture the age-old cultures that prevail in the society at
the same time. PRAN RFL Group attempts to imitate and they try to keep up with the
changes.

 Environmental Factors:
Environment has a major role to play. To hold the world harmless, companies must obey
various rules and actions considering the environment and surroundings. Many national
and international organizations serve to protect the climate. Companies must comply with
the laws laid down in them. To protect the environment, PRAN RFL Group strictly
complies with the environmental regulations and focuses on the recycling of plastic. They
are planting trees all over the country and made their product package more
environmentally friendly.

Task Environmental factors:

The task environmental factors include:
1. Consumers
2. Competitors
3. Suppliers
4. Regulators
5. Interest groups
6. Strategic allies

 Consumer:
PRAN RFL Group offers a wide range of items like plastic, furniture’s, electronics, food
products and many more. Just like the product range consumers of PRAN RFL covers a
massive portion of market because of offering products for a wide age group. Individuals,
institutions, organizations, companies etc. use PRAN RFL products. Some companies

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 import raw materials from PRAN RFL to produce their own products, mojo is such an
example.

 Competitors:
Companies or brands competing for the same price are called competitors. Competition
in any field can be both positive or negative. PRAN RFL faces competition from various
companies providing similar goods and services such as consumer goods, plastics,
furniture, electronics and food industries. Companies like SQUARE Group, ACI Limited
and Walton Group can be considered competitors of PRAN RFL.

 Suppliers:
Suppliers for companies like PRAN RFL Group include various raw materials,
components, and services needed for their manufacturing processes. They include
suppliers of plastic, furniture materials, raw materials for food products. PRAN RFL
Group works with a diverse network of suppliers both domestically and intentionally to
ensure reliable supply chain.

 Regulators:
The regulatory factors include government ministries related to industry and commerce
and regulatory bodies responsible for standard, quality control, food safety, consumer
protection, environmental regulations and labor laws. Some specific regulatory bodies in
Bangladesh that may have oversight over PRAN RFL could include the Ministry of
Industries, the Bangladesh Standards and Testing Institution (BSTI), the Department of
Environment etc.

 Interest Group:
The interest groups engage with PRAN RFL on various issues such as product quality,
safety standards, environmental sustainability practices, fair labor practices, other than
this industry specific interests groups can also include in the list.

 Strategic partners:
The companies that collaborate with PRAN RFL group to achieve mutual goals and
objectives are strategic allies. These allies may have a vast range starting from providing
raw materials to financial support for business operations.

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The impact of internal and external environments on Pran-RFL Group can be
significant and multifaceted. Let's break down these impacts:
Internal Factors:
1. Organizational Culture: The internal culture of Pran RFL consists of the behavioral
factors, work hours, page system etc.
2. Human Resources: The skills, knowledge, and commitment of Pran-RFL's workforce
play a vital role in their success. Employee training, development, and retention are very
important for maintaining their business.
3. Financial Resources: Pran RFL's financial health including its capital structure,
liquidity, profitability, investment growth opportunities, research and development, and
withstand economic downfalls.
4. Operations and Processes: Efficiency and effectiveness in operations, supply chain
management and production processes are important for meeting customer demand,
controlling costs, and ensuring product quality.
External Factors:
1. Market Conditions: Factors such as consumer preferences, market trends impact Pran
RFL sales volumes, market share, and pricing strategies.
2. Economic Factors: Macroeconomic variables like GDP growth, inflation rates, and
exchange rates affect consumer purchasing power, input costs, and overall business
performance.
3. Regulatory Environment: Compliance with laws and regulations, both domestic and
international, influences Pran-RFL's operations, product development, and market access.
4. Technological Trends: Advancements in technology, including automation, digitization,
and e-commerce are part of technology that shape Pran-RFL's brand image.
5. Social and Cultural Factors: Societal attitudes, cultural norms, and demographic shifts
affects consumer behavior, product preferences, and marketing strategies.

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Actions for Companies to Navigate Internal and External Challenges:

1. Strategies for Adapting to Internal Changes:

 Leadership Initiatives:
Navigating internal changes in consumer-based sectors like PRAN and RFL requires effe
ctive leadership. These businesses compete fiercely in markets that require quick thinking
and smart planning. To achieve organizational goals and preserve a unified corporate cult
ure, leadership actions are crucial.The creation of a compelling vision that is in line with t
he company's strategic goals is one of the most important leadership initiatives. For exam
ple, PRAN, a significant player in the food and beverage industry, prioritizes providing b
oth cost and quality. PRAN's leadership places a strong emphasis on these fundamental pr
inciples via open communication and unwavering behavior, making sure that every work
er is aware of and committed to the organization.
Furthermore, RFL, a company renowned for its wide range of products, which includes c
onsumer durables and plastic goods, employs a decentralized leadership style. This make
s it possible to make decisions quickly and react to developments in the market. RFL can
better serve local market demands by giving regional managers the ability to make decisi
ons.

2. Employee Training and Development:

Maintaining a competitive advantage requires spending on staff training and development
PRAN and RFL agree that innovation and operational effectiveness depend on having a tr
ained and motivated staff.
PRAN uses ongoing programs for professional development to raise the skills of its empl
oyees. This covers workshops on leadership, improvement of soft skills, and technical tra
ining. By offering growth chances to staff members, PRAN increases individual performa
nce while promoting loyalty and lowering attrition.
 RFL emphasizes cross:
functional training heavily. Gaining experience across areas is recommended for staff me
mbers, as this fosters a comprehensive understanding of the company. This strategy ensur
es a strong pipeline of future leaders by enhancing operational flexibility and preparing st
aff for leadership responsibilities.

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3. Innovation and Adaptation:

 Success in consumer:
oriented industries is mostly dependent on innovation. To remain competitive, PRAN and
RFL have both made large investments in research and development (R&D).
PRAN prioritizes product innovation in response to shifting market demands. PRAN refr
eshes its product catalog on a regular basis by utilizing market trends and customer input.
The increased demand for nutrientdense food products, for instance, is in line with the em
ergence of healthier snack optionsIn contrast, RFL places a strong emphasis on process in
novation. To increase productivity and cut expenses, the organization makes investments
in lean production methods and cuttingedge manufacturing technologies. Because of its d
edication to operational excellence, RFL is able to provide premium products at affordabl
e costs.

Strategies for Responding to External Influences:

1. Market Research and Analysis:

Reacting to outside stimuli requires an understanding of market dynamics. In order to rema
in up to date on market trends and customer behavior, PRAN and RFL both make significa
nt investments in thorough market research and analysis.
PRAN employs market research to pinpoint new trends and customer demands. The compa
ny's proactive approach enables it to launch new items and make modifications to current o
nes in order to better satisfy market demands. PRAN sustains a strong market presence by
being ahead of the curve.RFL uses competition analysis to compare its results to those of it
s peers in the industry. This entails keeping an eye on rival tactics, business structures, and
product lines. By using these insights, RFL is able to stay ahead of the competition and ma
ke wise strategic decisions.

2. Strategic Partnerships and Alliances:

Partnerships and alliances are essential for increasing capabilities and reaching new marke
ts. To take use of outside resources and knowledge, PRAN and RFL have both entered int
o strategic alliances.To expand into new markets and improve its product offerings, PRAN
has partnered with foreign food and beverage firms. By these alliances, PRAN is able to ta
ke advantage of cuttingedge techniques and best practices, which raises the caliber of its p
roducts and increases its market share.

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RFL works with distributors and suppliers to optimize its supply chain. Strong ties with importan
t stakeholders help RFL guarantee timely raw material supply and effective product delivery. The
se collaborations also promote innovation and knowledge exchange.

3. Government Relations and Advocacy:

Navigating regulatory frameworks and engaging in lobbying are critical for creating a posi
tive business climate. PRAN and RFL actively engage with government agencies and indu
stry associations to influence policy decisions and obtain support for their projects.
PRAN takes part in policy conversations and industry forums to lobby for favorable rules t
hat promote the expansion of the food and beverage industry. PRAN's activities aim to pro
vide a conducive atmosphere for business operations and innovation.RFL maintains close
ties with governmental entities to guarantee adherence to legal mandates and secures requi
red authorizations for novel goods. Furthermore, RFL supports laws that encourage export
ing and manufacturing, which advances economic growth in general.RFL maintains close
ties with governmental entities to guarantee adherence to legal mandates and secures requi
red authorizations for novel goods. Furthermore, RFL supports laws that encourage export
ing and manufacturing, which advances economic growth in general.
Through collaborations, government relations, employee development, innovation, market
research, and strategic leadership, consumer
based industries can effectively traverse both internal and external problems. Both busines
ses have become leaders in their respective industries and are able to prosper in changing
market conditions as a result of implementing these all-encompassing strategies.

Case Studies or Examples:

1. Success Stories:

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  Product Innovation and Market Expansion:
Pran-RFL successfully developed several new products that catered to emerging
consumer tastes; for example, the introduction of their natural foods range tapped into the
increasing demand for healthy eating habits that has resulted in significant market shares
as well as positive brand awareness (Johnson et al., 2008).

 Strategic Alliances:
Pran-RFL entered into strategic partnerships with international retailers helping it extend
its global reach. Joint ventures with major supermarket chains in Middle East and Africa
have allowed it to open up new markets while boosting international sales (Doz & Hamel
1998 p. 4).

2. Some failures and what was learned from them:

 Disorder in the Order of Supply:

During the COVID-19 pandemic, Pran-RFL faced significant supply chain disruptions.
The company suffered from late delivery and shortage, which had an impact on
production schedules and customer satisfaction. From this experience, it became evident
that more robust and flexible supply chain strategies are necessary.

 Regulatory Issues: In one instance, Pran-RFL experienced regulatory issues with respect
to local packaging standards in one of its key export markets. This led to product recalls
and financial damages among others. Such lessons were learnt by the organization while
dealing with these types of cases that include doing market researches extensively and
adhering to all regulations stipulated in order to avoid such mistakes in future (Hill,
C.W.L., 2014. *International Business: Competing in the Global Marketplace. McGraw-
Hill Education).

By analyzing both successful initiatives and past failures, Pran-RFL has been able to adapt and
refine its strategies, ensuring sustained growth and competitiveness in the consumer goods
industry.

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