we would like to thank our faculty ameer yusuf khan for his splendid support and guideline during...

8/6/2019 We Would Like to Thank Our Faculty Ameer Yusuf Khan for His Splendid Support and Guideline During Our Completi

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We would like to thank our faculty Ameer Yusuf Khan for his splendid support and guidelineduring our completion of this report. We are grateful for the patience and the time he gave us tosolve the problems we faced in making the project.

We would also like to express our gratitude to the management and all the individuals of PRAN

Group who have taken part by assisting us with details on their company, especially to Mr.Chowdhry Kamruzzaman Kamal who is the General Manager (PRAN Sales-Marketing) of PRAN Group. He helped us a lot by giving his valuable time and lots of information which wasvery essential for us to make our project a superior one.

We would also like to take the opportunity to thank our families, friends and classmates for being so generous, friendly and helpful and assisting us with both major and minor details.

We in Bangladesh are blessed with a climate ideally suited to agriculture, specially fruits andvegetables-rich in taste and flavor: sweet, mellow and juicy.

Our deltaic plains are among the most fertile in the world created and drained by the mightyrivers-the Padma, Jamuna & Meghna. There is plenty of water.

And farming is a way of life to our people.

Our comparative advantage as an economy lies in agriculture. We believe the way to economic prosperity is through agri and agrobusiness.

PRAN Group was born in 1980. Keeping in view the corporate mission of the Group they haveover the years diversified their activities in several areas. PRANs biggest asset is their competent team of hands-on managers and dedicated employees.

PRAN is Bangladeshs largest grower and processor of fruits and vegetables. Their contractgrowers cultivate the choicest fruits and vegetables, which are processed in their modern andhygienic factories to highest quality & international standards.

Why PRAN?

PRAN is a concept: a way to fight poverty and hunger in Bangladesh in the shortest possibletime through employment generation.

PRAN signifies investment in agro processing: creating demands for farm produce, which create

jobs in rural areas also preventing urban migration. PRANs aim is to add value toagricultural produce.PRAN is in testimony to our convictions. It stands for:

PROGRAMME FOR RURAL ADVANCEMENT NATIONALLY


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We dont see why we should remain poor given the gifts endowed by nature such as fertilesoil, water, year round growing season, a river system for easy and cheap transportation and ahard working people who are farmers by tradition.

Bangladeshs comparative advantage lies in creating a competitive edge in value addedagricultural products. This is what PRAN stands for.

PRANs journey started in 1981. Today they have major investments in several corporates.They are the largest processors of fruits and vegetables in Bangladesh and fast moving into milk,confectionery, tee, aromatic & fine rice, peanuts, pulses, mustard & spices to name a few.

PRAN encourages contract farmers and helps them grow quality crops with increased yields andto obtain fair prices.

In the stock market their performance has been just as rewarding with both PRAN Group publicly listed companies: Agricultural Marketing Co Ltd & Manipur Foundry Ltd achieving

blue chip status.Supporting PRAN is helping the Bangladeshi farmer and indeed Bangladesh economy.

Success of PRAN is your success.

Investing in PRAN is investing in your and Bangladeshs future.

LOCATION:

CORPORATE HEAD QUARTERS:

Property heights, 12 R K Mission road,

GPO Box: 83, DHAKA-1203, BANGLADESH

PRAN GROUP

Organizational type


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i. There are two types of organization. They are:

Mechanistic organization

Organic organization

Mechanistic organizations trend to be right in design and have strong bureaucratic quality. Onthe other hand, organization trend to be quiet flexible in structure and adaptive to change.

PRAN follows a mixed policy though they say that they are organic organization. For instance astheir organization is decentralized their task flexibility is very high which is a clear example of organic organization. In contrast their definition of right, obligation and technique is clear, whichis an example of mechanistic organization.

The thing is discussed precisely below:

Characteristic Mechanistic Organizations Decision Organic

Organizations Decision

Task definition for individual contributors Narrow and precise

Broad and general

Relationship between individual contribution and organization purpose Vague

Clear

Task flexibility Low High

Definition of rights, obligation and techniques Clear Vague

Reliance on hierarchical control High

Low (reliance on self-control)

Primary direction of communication Vertical (top to bottom)

Lateral (between peers)

Reliance on instructions and decisions from superior High


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Low (superior offers information and advice)

Emphasis on loyalty and obedience High Low

Type of knowledge required Narrow, technical and task-specific Broad and professional

Organizational Structure:

ii. Functional departmentalization:

iii. Each department has their own decision making power at the most lower level. So their organization structure is highly decentralized. For instance:

Characteristic Highly

Centralized organization Decision Highly decentralized organization Decision

How many decisions are made at lower levels in the hierarchy? Very few, if any

Many or most

How important are the decisions that are made at lower levels? Not very

Important

Very

Important

How many different functions rely on lower-level decision-making? Very few, if any

All or most

How much does top management monitor or check up on lower-level decision making? A greatdeal

Very little

Or not at all


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The Evaluation of Management Thought

As we know management is an interdisciplinary and international field that has evolved in bitsand pieces over the years. There are six approaches in management theory. But the PRAN Groupfollows the attributes of excellence approach. This approach is a modern unconventionalapproach. PRAN Group believes that they use the attributes of excellence approach because of the following reasons:

Attributes of excellence Key indicators

A bias for action Small-scale, easily managed experiments to build knowledge, interest, andcommitment.

Managers stay visible and personally involved in all areas through active, informalcommunication and spontaneous MBWA

Close to the customer Customer satisfaction is practically an obsession.

Input from customers is sought throughout the design/ production/marketing cycle.

Autonomy and entrepreneurship Risk taking is encouraged; failure is tolerated.

Innovators are encouraged to champion their pet projects to see them through tocompletion.

Flexible structure permits the formation of skunk works

Lots of creative swing are encouraged to ensure some home runs

Productivity through people Individuals are treated with respect and dignity.

Enthusiasm, trust, and a family feeling are fostered.

People are encouraged to have fun while getting something meaningful accomplished.

Work units are kept small and humane.

Hands-on, value driven A clear company philosophy is disseminated and followed.

Personal values are discussed openly, not buried.

The organizations belief system is reinforced through frequently shared storied, myths, andlegends.


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Leaders are positive role models, not Do-as-I-say, not-as-I-do authority figures.

Stick to the knitting Management sticks to the business it knows best.

Emphasis is on internal growth, not mergers.

Simple form, lean staff Authority is decentralized as much as possible.

Headquarters staffs are kept small; talent is pushed out to the field.

Simultaneous loose-tight properties Decentralized authority, and opportunities for creativitycounterbalance tight overall strategic and financial control.

Uncertainty

A company may face some uncertainty because we are in a changing world. Technology isimproving day by day. So a company has to face certain uncertainty. Like all other companyPRAN group also face some uncertainty. They are discussed below:

ECONOMIC

Economic environment is the most important of all that the organization has to deal with. Thecompany has to take major decisions based on the economic forecast. As it is an export typeorganization it has to monitor the economic situation of Bangladesh and the other countries

where it exports its product. Though the economic condition of our country is very poor; theexport of foods and agricultural items are bright hope of light. In order to monitor the economicforecast the company take care some elements like inflation rate, gross domestic product,unemployment rate, value of local currency against foreign currency etc. Measuring theeconomic situation perfectly, the company started its export activities from the very beginning of their business and now it is one of the dominance forces in the food and agricultural industry. Itonly happened because of the companys management efficiency and correct measurementabout the economy. Heating the international market for the fast time was tough but the companyhad its financial health and both the national and the international economic environment wereits side. As a result it succeeded to get the international market.

Political, legal & Regulatory: Numerous laws and a multitude of authorities characterize the political, legal and regulator forces in the environment that has a strong influence on the organization. This company has tomaintain the rules and regulations of Bangladesh government when it pays its import taxes for importing raw materials and export taxes for exporting finished products. The organization has tokeep the rights of employees. Maintaining the international labor law the labors of the companyhas to work eight hours a day. There is provision of overtime work period for the labors.


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Cultural and Social

Organization should monitor social and cultural forces because these external forces areextremely important to there performance. Though situated in Bangladesh PRAN GROUP has tokeep a close look at the social and cultural changes of the European countries. It has to do this

because the products that it produced are for the people of that society. Moreover, the employeesof the organization are from our society. Recent years the effectiveness of women workers has been proved. And our society has responded positively about the matter. Thats why thecompany has a large amount of women workers in its factory. As the society has merged for thesafety of the environment, the company also shows its support to the movement by making

people and the other industrialists innovate to use eco friendly materials and try to save our environment as much as they can. The company has to do all these in order to keep the social andcultural environment by its side.

INTERNATIONAL

As PRAN GROUP exports its products to foreign countries; the importance of the internationalforces really matters here. It has to monitor the consumers preference, price, promotionalstrategies, government policies etc. for an international market. It has to face the hardcompetition of the international market

Planning

Planning Cycle:

The marketing manager makes a plan and submits it to the management department one year before implementation. The management department study and modify the plan and thenapprove it back. Then everything is made set for the implementation. In the mean time if there isany change in the market then the plan is also changed according to the change. When the timecomes the plan is carried out. After a certain time the change is compared with the previoussituation. If there is a negative result a re-plan is made and carried out. If it is in thecompanys side then it will be used to make future plan.Synergy:

PRAN got the facility of management and marketing synergy for their organizational structure.

I. Market Synergy

When one product or service fortifies the sales of one or more other product or service, marketsynergy has been achieved. The brand name PRAN is really famous in Bangladesh. Thecompany is using the same name for all its ten sectors in the market. So a clear market synergy isseen in this area.


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Product:

Company Legal status Line of business

AGRICULTURAL MKT. CO.LTD

Estab: 1985 Public listed

Company Processors of fruit juices, drinks, jam, fruit & vegetables, etc.

RANGPUR FOUNDRY LTD


Company Manufacturers of hand tubewells, PVC pipe, filter, etc.

PROPERTY DEVELOPMENT LTD


Company Builders of apartments, commercial dev, etc.

PRAN FOODS LTD


Company Candy, bubble gum, spices, etc.

PRAN AGRO LTD

Estab: 2001 Private limited

Company Processors of agro-based products.

BANGLADESH LIFT IND. LTD


Company Import, installation, maintenance of lifts.

BANGA AGRO PROCESSING LTD


Company Processing & packaging of quality rice.


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PRAN AGROBUSINESS LTD


Company Growing & procurement of crops through contract farming.

RFL PLASTIC LTD


Company Manufacturers of plastic furniture & allied products.

PRAN DAIRY LTD


Company Processors of fresh milk, milk products, etc.

II. Management Synergy

PRAN GROUP uses the same business and management strategy nationally and internationally.PRAN GROUP exports various types of products by using same brand name. For this reason,they use the same management system.

Countrywide Distribution Network

Company appointed Sales Force all over the Country

Sales Network

70 Executives

486 Sales Representatives ( Selling to retailers all over Bangladesh through Distributors)

Country Divided by Sales Zone

Distribution Network

At this moment total Distributors are 345

Worldwide distribution:

Major Market :

India, KSA, Djibouti & UK


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PRAN has also been exporting to:

USA, Canada, Austria, France, Germany, Belgium, Switzerland, Singapore, Malaysia, Korea,Japan, Australia, Qatar, UAE, Kuwait, Oman, Bahrain, Lebanon, Angola, Congo, Ghana,Senegal, RCA, Gabon, Cameroon, Togo, Benin, Mayotte, Mali, Mauritania, Cabo Verde Islands,

Reunion Islands, Nepal, Bhutan, Sri Lanka, Pakistan & Myanmar

Exported item:

Fruit Juices in Aseptic Pack & Glass Bottle, Fruit Drinks in Plastic Bottle, Pickles in Glass Jar & bulk, Canned Fruits & Vegetables, Extruded & Bangladeshi Snacks, Tea, Rice, Puffed Rice,Flatten Rice, Jam / Jelly in Glass Jar, Cup & bulk, Spices, Mustard Oil, Mineral Water, Spices,Dehydrated Fruits, Tomato Ketchup / sauce in Glass Jar, Candies, Bubble Gum, Ball Gum,Molasses, Lollipop, Cup Jelly, and Vita Plus etc.

Promotion & advertisement:

In-house advertising agency provides full advertising support. Major emphasis is on TVadvertisements as this is the most popular Media available. 50% of the annual budget isdedicated to TV.

New ads for Mango Juice Bottle, Aseptic Juice, Tea Radio, Press, Cinema, POS, Outdoor ads(Billboards, Wall Painting) also used in promotion Outdoor coverage (PRAN Branding) all over Bangladesh

The Human Resource department:

An organization success depends on its human resources. No matter how much an organizationinvests on other assets, if its human resource does not have the competence then the organizationwill be unsuccessful. Even when deciding on which fixed assets to invest, any organization goesthrough many industries. Therefore, when it comes to human resource it has to be even morecareful.

First, an organization conducts a human resource planning to identify their personal needs. Oncethese needs are established a job analysis is conducted, which clarifies the job being done and theindividual qualities necessary to do these jobs successfully? Because of this information a poolof qualified applicants are recruited. The next steps call for thinning this set, which are the major objectives of selection. The purpose of this report is to find out whether the real world companies

follow the theoretical concepts in terms of selecting their employees or not.In perspective of human resource management, we will try to find out in this report how far thereal world companys selection process is based on theoretical concepts. This report ismainly based on the primary research. The HR manager of the previously mentioned companyconducted an interview. This report helped us to learn about the reality by comparing theselection process in terms of the concepts and real world situation. Our access to the renewedcompany PRAN GROUP gave us the opportunity to learn about it and its selection process. It


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also gave us further insight into the subject matter. Moreover, it will help us in the near future tomake ourselves prepare to face any kind of recruitment and selection process.

The objective of selecting process is to choose the individual who can successfully perform the job from a pool of qualified candidates. Job analysis, human resource planning, and recruitment

are prerequisites of the selection process. A breakdown or a simple mistake in any of this processcan make even the best selection system ineffective.

HR OBJECTIVES OF PRAN GROUPS:

PRAN GROUP committed to provide equality of opportunity to all staff on the basis of meritand suitability regardless of sex, race, nationality, age, disability, ethnic origin, religion or status.

Employees satisfaction. Attraction, retention and motivation through good working environment, performance

management system.

Good benefit scheme.

THE RECRUITMENT PROCESS:

Recruitment refers to organizational activities that influence the number and types of applicantswho apply for a job and whether the applicants accept jobs that are offered.

REASONS FOR RECRUITMENT:

An organization recruits people when it needs more people to accomplish its tasks. PRANGROUPS also recruits people. Employers recruits for a variety of reason:The employer anticipates a rise in demand for products and services.

Training is required and employer wishes to ensure there is cover for staff.

Staffs are expected to leave, for example those about to retire, replacements areneeded.

Staffs who have already left to be replaced.

PRAN GROUPS recruits through out the year.

METHODS OF RECRUITING:

Once an organization has decided its needs of additional or replacement employees, it is facedwith the decision of how to generate the necessary applications. PRAN GROUP tried to fill asmany jobs recruiting internally. And if necessary, it goes for sources external to the company.


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Generally organizations use both of the sources to generate a sufficient number of applicants.PRAN GROUP is not different from this process. They mainly do internal recruitment. It alsorecruits from the external sources. In the process of external recruitment, it follows:

Media advertisement

Internet advertisement

Media advertisement:

PRAN GROUP does daily newspapers advertisement. They also prefer financial, business, or commercial type newspapers, to advertise vacancy. The managing authority of PRAN GROUPthinks these policies are profitable for the organization. Because it reduces costs, but attracts theappropriate people.

Internet advertising:

PRAN GROUP very randomly uses Internet for advertising the vacancies for all departments.This helps the organization to attract people from all over the country. Internet helps to get good

person at a lower cost.

Employee selection:

After doing all kinds of selection criteria HR Department of PRAN GROUP takes the interviewof the applicants. But the way they take the interview is very traditional and conventional. It isvery difficult to find out the appropriate applicant for the appropriate job. They only take theVIVA VOCE of the applicants.

SWOT Analysis

The analysis focuses its light on the four different factors of a certain business firm - Strength,Weakness, Opportunity & Threat. These four factors, nevertheless, predicts the future operationof a business concern.

Strength:

Well-known and established company.

Product quality:

AMCL- PRAN is the first and only food processing company in Bangladesh to earn the prestigious distinction ISO 9001 certificate. This supreme certification ensures that PRAN


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products reach the consumer maintaining the height level of quality. Other than this, AMCL-PRAN also has other kinds of quality certification.

Customer satisfaction:

Good Quality Products conforming to local tastes, health & hygienic standards. Affordable pricewithin the reach of target consumers. Available everywhere all the time.

Local product but of international standard

Good management.

Skillful and trained employee.

Good promotional activity

In-house advertising agency provides full advertising support. Major emphasis is on TVadvertisements as this is the most popular Media available. 50% of the annual budget isdedicated to TV.

New ads for Mango Juice Bottle, Aseptic Juice, Tea Radio, Press, Cinema, POS, Outdoor ads(Billboards, Wall Painting) also used in promotion Outdoor coverage (PRAN Branding) all over Bangladesh

Always try to follow McGregors Theory Y (Modern assumption about people). Such as

People are capable of self-direction and self-control, if they are committed to objectives.

We also give the reward for the best performance to the employee.

Weakness:

Lack of part time worker.

Cant be able to give equal effort to our all products. Political hazard & influences

Lack of modern training facilities.

Opportunities:

Will be able to become the no- 1.

Expand the business in other countries of the world.


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Expand the business in other sight.

Improve the technology.

Threats:

Competition with other company.

Some uncertainty, such as: social, political, economical uncertainty.

[

Company Legal status Line of business

AGRICULTURAL MKT. CO.LTD


Company Processors of fruit juices, drinks, jam, fruit & vegetables, etc.

RANGPUR FOUNDRY LTD


Company Manufacturers of hand tubewells, PVC pipe, filter, etc.

PROPERTY DEVELOPMENT LTD


Company Builders of apartments, commercial dev, etc.

PRAN FOODS LTD


Company Candy, bubble gum, spices, etc.

PRAN AGRO LTD


Company Processors of agro-based products.


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BANGLADESH LIFT IND. LTD


Company Import, installation, maintenance of lifts.

BANGA AGRO PROCESSING LTD


Company Processing & packaging of quality rice.

PRAN AGROBUSINESS LTD


Company Growing & procurement of crops through contract farming.

RFL PLASTIC LTD


Company Manufacturers of plastic furniture & allied products.

PRAN DAIRY LTD


Company Processors of fresh milk, milk products, etc.

PRAN FOODS LTD:

PFL was established in 1996 as a Private Ltd Co to explore the immense possibilities and potential, which lie in agriculture sector of Bangladesh. PLF is trying to create wealth by addingvalue to farm produce, and generate employment and income in rural areas.

Presently PLF is buying and processing thousands of tons of Potato, Dal, Corn, etc for themanufacture of quality nontraditional food items like Dal, Powdered Spices, Chips, Chanachur,Candy in a modern, state-of-the-art and hygienic atmosphere.

POWDERED SPICES:


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Powdered Spices falls under PRAN FOODS Ltd. PRAN introduced this product in the beginningof the year 2002. There are several kinds of Powdered Spices, such as Turmeric Powder, ChiliPowder, Coriander Powder and Zeera Powder. Those products have different kinds of packagingand pricing policy.

For the Powdered Spices PRAN FOODS Ltd have two kinds of markets:

1. Local market

2. Foreign market

1. Local market:

For the local market PRAN FOODS Ltd launches three types of

Powdered Spices. They are:

Turmeric Powder

Chili Powder

Coriander Powder

2. Foreign market:

For the foreign market PRAN FOODS Ltd launches four types of Powdered Spices:

Turmeric Powder

Chili Powder

Coriander Powder

Cumin seed Powder

PACKAGING POLICY:

For this Powdered Spices product PRAN FOODS Ltd follows the following packaging

strategies:

Form of packaging: Foil pack/box

Product Code no. Product Content SKU Content/Bag

32203 Turmeric Powder 200gm 24pcs.crt


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31651 Chili Powder 100gm 100pcs.crt

31652 Chili Powder 50gm 100pcs.crt

31661 Coriander Powder 100gm 100pcs.crt

31662 Coriander Powder 50gm 100pcs.crt



PRICING:

Chili Powder Turmeric powder Coriander Powder

50 Grams

Tk. 8 Tk. 6 Tk. 6

100 Grams Tk.16 Tk.12 Tk.12

200 Grams Tk.32 Tk.24 Tk.24

Synergy:

Synergy talks about the concept that the whole is greater than the sun of its part. PRAN Group

enjoys the management and marketing synergy for its internal structure. These are discussed below.

Marketing synergy

A brand name PRAN is used for all the pran products. As the company is in a good position inBangladesh, so it is helping them to sell more in the country.

Management synergy

A single management system is used to run the spice as well as the other sides of the company. It

is a management synergy.

SWOT Analysis:

The analysis focuses its light on the four different factors of a certain business firm - Strength,Weakness, Opportunity & Threat. These four factors, nevertheless, predicts the future operationof a business concern.


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Strength:

Serve small farmers inputs

Own ingredients

Good relationship between farmers and organizations

Good product quality

Good packaging and pricing strategy

Weakness:

Not a good promotional and advertising activities

Budget problem

Cant be able to give the equal effort like other products Dont have standard survey systemOpportunities:

Will be able to hold the local market successfully

Can be able to earn the foreign exchanges by exporting this product to other parts of

the world.

Threat:

Competition with RADHUNI (SQUARE GROUP)

Environmental uncertainties

=

537;

After analyzing all kinds of information and data of PRAN GROUPS we learn something aboutthe group and their business strategies. In this world nobody is perfect; everybody has someweakness. This world is very competitive. And for this reason we always face some sort of competition in the way of our journey. As we know PRAN GROUP is very well established andwell known company but there is also some weakness in that company. We tried to find outthose weaknesses and gave our suggestion to them to overcome those problems:


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1. Organizational model:

Characteristic Mechanistic Organizations decision Organic

Organizations decision

Task definition for individual contributors Narrow and precise Broad and general

Relationship between individual contribution and organization purpose Vague Clear

Task flexibility Low High

Definition of rights, obligation and techniques Clear Vague

Reliance on hierarchical control High Low (reliance on self-control)

Primary direction of communication Vertical (top to bottom) Lateral (between peers)

Reliance on instructions and decisions from superior High Low (superior offers information andadvice)

Emphasis on loyalty and obedience High Low

Type of knowledge required Narrow, technical and task-specific Broad and professional

2. Uncertainty:

All companies must consider some uncertainties in their life cycle. PRAN must consider theseuncertainties whole making decision.

Criteria Low Decision Moderate Decision High Decision

How strong are social, political, and economic pressure on the organization?

Minimal

Moderate

Intense

How frequent are technological breakthrough in the industry?

Infrequent


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Occasional

Frequent

How reliable are resources and supplies?

Reliable

Occasional, predictable shortages

Unreliable

How stable is the demand for the organizations product or service?

Highly stable

Moderately stable

Unstable

3. Pay incentives

According to Taylor What the workmen want from their employers beyond anything else is

high wages . This economic man assumption led Taylor to believe that piece rateswere important to improved productivity. Under traditional piece-rate plans, an individualreceived a fixed amount of money for each unit of output. Thus, the greater the output, thegreater the pay. In his determination to find a better way, Taylor attempted to improve thetraditional piece-rate scheme with his differential piece-rate plan.

A labor in a factory works for 200 hrs in a months. They get tk 20 per hour. The payment is tolow that the labors have to work overtime for their extra income. The company might payovertime such as tk 30 for the extra time. It will increase the output. It will also motivate them towork.

4. Employee selection:

To make the selection program successful, the employee characteristics stated in the jobspecification must accurately summarize what is necessary for effective performance on the job.This is the part where the job analysis in selection becomes most apparent because an accuratelist of characteristics can be generated only after the organization has conducted a through jobanalysis. PRAN GROUP can follow the following criteria for making selection decision; it can


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be summarized in several broad categories: education, experience, activities and interests, skillsand achievements and other personal characteristics.

In general staff level, they can require degree but actually they dont need that degree to dothe job. In managerial level, they dont need to look at the BBA or BSC or BA, they shouldlook at whether the candidate meet the interview selection, whether candidate has interest inworking with the bank, whether they pass the written test. They can follow the following steps tomake the selection decision:

5. Some extra suggestion:

Recruit the part-time employee

Need to give equal effort to all product

Need to do good survey before introducing new product

For the Powdered Spices nee

we would like to thank our faculty ameer yusuf khan for his splendid support and guideline during...

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