Legal and Ethical Issues of

PRAN Foods LTD

Group Members

Riffat Al Imam 1510639

All the other group members name req
Introduction

 PRAN started its operation in 1981 as a processors fruit and vegetable in

Bangladesh
 Today PRAN is the largest processors of fruits & vegetables in Bangladesh.
 The usage of PRAN products by over 90% of the people in Bangladesh stands a
testimony to their successful operation.
 Pran started exporting in 1997 with canned pineapple to France. Now, the
group exports to 114 countries -- from India to Middle East and Africa, Europe
to North America
Products of PRAN Foods Ltd

Juice Drink Bakery Carbonated Snacks

Soft Drink

Culinary Confectionary Biscuits Dairy

Food and Beverage companies in
Bangladesh

Akij Food
Transcom Coco-Cola Partex food
Acme food and
Beverage Bangladesh & Beverage
& Beverage Beverage
Ltd Ltd Ltd
Ltd
Objective and Methodology

 Primary objective  Methodology

 To evaluate the legal and Ethical  Primary Resources
issues and corporate social
responsibilities practiced by PRAN
 Interviews and personal
Food Ltd. observations
 Secondary Sources
 Secondary Objective
 Internet
 To assess the accountability of PRAN
to its consumers and employees.  Different websites and published
 To evaluate how far the current
articles
legal, Ethical issues and corporate
social responsibilities practiced by
PRAN passes the test of fairness
Product portfolio of Pran Food and Beverages

Market Share

17.00%

40.00%
15.00%

13.00%
15.00%

Pran juice Acme Juice Starship Juice Slice Juice Danish

SWOT analysis
Strengths
 Economic of scale
 High quality with low price
 Huge food & drinks Varity.
 Product availability is more.
 Brand Image
 Innovative Product
 Strong distribution channel
 Wide variety of drinks
 Own manufacturing factory
Opportunities
 Export Tie up with multinationals
 Strong brand image
 Competitor’s weak distribution channel
 Franchise business all over the world
Weaknesses
 Positioning as a local manufacturing
company
 Price
 Target Market
 Preservation
 Heavy Administrative expense
 Positioning as a local manufacturing
company
Threats
 Aggressive competitors
 changing consumer behavior
 Availability of foreign product
 Ad hock advertisement of competitors.
 Using old technology
Legal and ethical issues considered by PRAN
Customer care
 Complaint for their products
 Price information
 Benefits of products
 Comments for products
 And any other issues
Supplier care
 By providing them good seeds, fertilizers,
insecticides, etc
 By providing financial supports.
 By providing proper information about what
to produce more and what to produce less.
 By collecting their produces in right time
and storing those products.
 By collecting raw materials from them
directly and saving them from middle men.
 By creating a huge demand of their farmers’
produces both in nationally and globally.
 By ensuring proper price for their produces.
Legal and ethical issues considered by PRAN
Employee care
 Integrity, Continuous Innovation,
Involvement and self-respect
 It gives its employees proper training
and development
 No employee is at a risk of unfair
dismissal
 In most of the cases they have to work
more than 8 hours
 very smart package for their Employees
and for performance evaluation they
mostly give priority on performance of
the employees
Trade care
 By giving product in right price, right
quality, at right time and trade benefit.
 By giving them special service like
upcoming demand trends.
 By giving them sample products.
 By giving them promotional sales
competition.
 By giving product replacement
opportunity for any damaged or expired
product
Some example of legal and Ethical
issues broken by PRAN
 On December 2013, a team of officials from Bangladesh food monitoring cell found 3.77
PPM (part per million) formalin in a product of PRAN FOODS and BEVERAGE called
FROOTO. This is very alarming because an able-bodied normal human being can tolerate
only 0.02 PPM of formalin.
 On June 2013, a consumer from Chittagong got sick after consuming a bottle of PRAN
JUICE.
 The most devastating accusation against the PRAN FOODS AND BEVERAGE which directly
affected the corporations and as well as our country reputation was getting a banned
order from the US market
 PRAN is using plastic as packaging material for most of its products. Plastic is very harmful
for the environment. According to World Health Organization (WHO) plastic is one of
martial materials that are causing land and water pollution
Distribution system of PRAN

Whenever PRAN needs to B2C distribution system allows

collect raw materials PRAN for direct selling and
specially for fresh juice, it marketing between it and its
follows B2B distribution consumers.
system.
Corporate social responsibility

Promises to the environment

 Community forestation: In different locations around Bangladesh, PRAN
undertook tree plantation programs to save our GREEN PLANET.
 Effluent Treatment Plant (ETP): To ensure safe disposal of factory wastage
they got ETP’s (Effluent Treatment Plant Design) in all the establishments of
its Group.
 Heat Recovery Boiler: PRAN has the system to recover the heat to save energy
that they produce and utilize in their production facilities in all locations
Promises to the energy preservation
 SKY-Light Roof to utilize daylight during factory operation.
 CFL Bulbs at Factories and Offices to reduce Power Consumption.
 Powered Trucks to reduce Air Pollution and usage fossil fuel for all vehicles
Corporate social responsibility

Promises to the consumer

 PRAN proclaims to care for their consumers’ need and satisfaction.
 They aim at building trust through clear communication
 They proclaim to provide fully support consumers’ right to know what is in their products and
they are transparent in terms of ingredients
 They provide clear price communication
Promises to the employee
 Equal opportunity is given to both male, female candidates irrespective of race, religions,
culture etc.
 Selection is done based on merits and qualifications.
 Employees are rewarded with salary, commission and incentives as per standards.
 Employees’ health and hygiene are taken out most care with full time adequate numbers of
Doctors, nurses and other medical supports
Corporate social responsibility

Promises TO THE COMMUNITY

 Dairy Development:
 Education Development:
 
Other Social Support:
 Helping Mosque, Temple & Churches.
 Working together with Red Crescent.
 Collecting and donating blood.
 Working for the disabled.
 Working with ‘SAVE THE CHILDREN’.
 Helping the community in natural calamities.
 They are providing Airport Support for the Hajj Pilgrims every year from Bangladesh to KSA (Saudi
Arabia).
Grey Area of Ethical dialema

Ethics Gray Law

Area
Findings

PRAN is the largest food beverage company in the country.

PRAN serves its customers like king and try to give them best satisfaction

It cares for its suppliers and helps them by providing them all short of facilities.

Employees are top assets for PRAN and they get every type of benefit from the company they deserve.

It thinks its trade partners a huge support to get in touch with the ultimate consumers.

It is the largest exporter of processed food of Bangladesh

It is capable to achieve target market.

 Conclusion

As a company PRAN takes a big portion on market share through Food & Beverage.
Their target is to reduce poverty through increasing employment and it has become
possible for PRAN by doing the business in legal way. It always tries to give customers
the best item through legal business. Although in recent years some legal issues were
found broken by PRAN but it is trying to improve this situation. PRAN is also aware of
society and is doing the welfare activities all over the country. Company’s first
consideration is the demand of customers, on which they provide products to give
better satisfaction to the customer.
 Recommendation

As being a very successful organization and their flawless management system has
enabled Pran group to enjoy economies of scale through their profit maximization
but as being a part of the culture of Bangladesh through their share of quality
products they should also emphasize more on products that are within the
purchasing power of the general people of Bangladesh and ensure that products
should be of quality that equal in aspects to compete with the international
standards. It must fulfill the promises to all groups. Those examples of breaking
legal issues should not be repeated again.
 Thank you
Please fell free to ask questions