MGT211 TERM PAPER

Bashundhara Foods
and Beverage

1
 Fatema Zakir Samiha
ID: 19304060
G-suite : fatema.zakir.samiha@g.bracu.ac.bd

Ayesha Afrin Amina Anika

Hasnaeen Shafat
ID: 18209022
G-suite: hasnaeen.shafat.arnab@g.bracu.ac.bd

Section - 03
Date of submission : 19/09/2020

Submitted to
Tanzin Khan (TZK)
Lecturer,
Brac Business School,
Brac University

2
Company Profile 
Bashundhara group is one of the largest conglomerates in Bangladesh which grew rapidly. 
This group is operating many enterprises: - paper sector, energy sector, food and beverage,
services sector, technology, media sector, logistic and so on. Bashundhara Food & Beverage
Industries Ltd. is a part of this conglomerate and also one of the largest food companies in
Bangladesh. The company provides food and beverage products all around the country targeting
different types of consumer while keeping the consumer price choice in mind. The company has
various kinds of products such as Bashundhara flour, Bashundhara noodles, Bashundhara
soybean oil etc.

Company Formation 
One of the largest conglomerates of Bangladesh, Bashundhara group was formed in 1987 by
Ahmed Akbar Sohan as a real estate company venture under the name East West Property
Development Ltd (EWPD). Following by that, day by day grew rapidly and currently the
company owns more than 20 major concerns located throughout the whole country. Bashundhara
food and beverages ltd is a part of Bashundhara group which is widely accepted throughout the
whole country and its consumers.

Mission
To serve the best quality products for acquiring full customers’ satisfaction while doing business and
making profit.

Vision
Bashundhara group desire to see them as the largest business house of the country and the biggest
contributor, from the private sector to the economic and social development.
To achieve the desired future position, the group operates many units and Bashundhara Food &
Beverage Industries Ltd. is a part of the group.

Number of Employees

There are about 201- 500 employees’ work in Bashundhara Food & Beverage Industries Ltd. 

Main Products
i. Retail commodity: atta, maida, suji, soybean oil, palm Klein, ruti

ii. Bulk commodity: atta, maida, suji

3
iii. Snacks: noodles (instant and stick), pasta, Basundhara sauce, semai, macaroni, puffed rice

SWOT Analysis-

The SWOT analysis on Bashundhara Food & Beverage Ltd. is given below -

Strength -
1. Brand value: Since Bashundhara Group is a well renowned and one of the largest industrial
conglomerates not only in Bangladesh but also in global aspects it has a significant brand value which
eventually reflects on Bashundhara Food & Beverage Ltd. as well.
2. Resource: To establish and run an organization, a vast amount of capital, innovation, manpower,
other resources are essential to build up its existence and Bashundhara Food & Beverage Ltd. has it all in
full manner.

Weakness -
1. Amount of Products: In their 11 years of business span Bashundhara Food & Beverage Ltd. had
managed to launch only few food products such as - oil, noodles, pasta, macaroni, chips, atta, maida,
shuji and brown atta. Considering its immense resource and influence it is expected for them to have
more products.
2. Product Varieties: Along with limited number of products, their variation in them is also not much
noticeable except for noodles and pasta, which is an important factor to require.

Opportunities -
1. Expansion: As Bashundhara Group has a huge influence in both the economic field and market of
Bangladesh thus Bashundhara Food & Beverage Ltd. has more expansion opportunities compared to
others.
2. Global Market: In global market only those with major impact, immense resource, influence,
advertisement, marketing strategy etc. can reach and Bashundhara Food & Beverage Ltd. has all of them
well balanced.

Threats -
1. Competence: In the food sector of the market in Bangladesh there are already some great companies
who are dominating the market having good name, marketing strategy and delightful products with
many varieties. Which makes it difficult for Bashundhara Food & Beverage Ltd. to overpass them.
2. Economic and Political Environment: There is always and uncertainty in the economic and political
environment of a country and Bangladesh is no different. It always undermines a business if there is
chaos in these two fields as they are interlinked and because of their drastic impact on any sort of
business.

Porter's Generic Strategy

The Company is following Overall cost leadership strategy. The company follows this strategy to lower

4
their cost of production below thus it helps to gain competitive advantages. The products of
Bashundhara Food & Beverage Industries Ltd. are expanding all over in Bangladesh as well as in South
Asia. For this, the company makes products in huge quantities which lead to the decrease in overall
costing.

Miles and Snow Topology

In our opinion, the company should follow Analyzer strategy. Analyzer strategy is a combination of
prospector and defender strategy where a company emphasizes on innovation as well as protecting
current market position. By following analyzer strategy Basundhara Food & Beverage Industries Ltd. will
be able to maintain current business with the satisfaction of current customers, as well as they will
innovate new products focusing on creativity. 

Product life cycle

According to[CITATION Car20 \l 1033 ]Product life cycle refers to the time period from when a product is
introduced to the consumers in a market to the removal of the product from the market. We can break
the life cycle of product into four stages and they are- introduction, growth, maturity and decline.

In introduction new product is introduced to the consumers. In this time period sales growth is slow and
the company does not have any profit. After that, in growth period there is a rapid market acceptance of
the product and profit of the company increases. Later, in maturity period we can see in the market
sales growth slows down and profit starts to decline. Finally, sales of the product fall off and profit of the
company also drops.

Products of Bashundhara Food & Beverage Ltd. follow this stages of product life cycle. When a product
of this company comes to a market the life cycle of this product starts with the introduction period and
product is introduced before customers for the first time in this stage. After that, in growth period, that
product start to be known and get higher sales and company starts to gain more profit. In maturity
period, that product already has an established market but after some time in this stage sales growth
starts to slow down and because of that the profit also starts to decline. Lastly in decline period, sales of
the product falls and profit of Bashundhara Food & Beverage Ltd. also drops and they launches new
product in the market and same cycle starts to continue.

BCG Matrix

According to [CITATION Ann20 \l 1033 ]BCG matrix refers to a framework which was created by Boston
Consulting Group to help the evaluation of the strategic position of the business brand portfolio and its
potential in a market .The product portfolio matrix is mainly designed to help a company to create long-
term strategic planning and also to help to consider growth opportunities of a product by reviewing its
portfolio and to decide where to invest and where to discontinue or develop a product. The portfolio of
products contains four categories and they are dogs, cash cows, stars and question marks. Star product
refers to the products that has a high market share and it’s growth rate is also significantly high. Cash
cow product refers to those products that have a high repeat purchasers is but the rate of the new

5
purchasers is not high. Question mark product refers to those products that has lack a significant market
share. Dog Products are those products which never reached the stage of a power brand because of low
market share & low market growth rate.

A company reduces investment in star products and try to take out the maximum cash flow from the
cash cow product which increases its overall profitability. Besides, a company puts more effort to
develop those products which fall under question mark product and dog product.

So, according to this portfolio Bashundhara Food & Beverage Ltd. Reduces it’s investment in star
products as these products are already performing well in market and try to take out the maximum cash
flow from the cash cow product which increases its overall profitability because of their high repetition
of purchasing. Besides, a company puts more effort to develop those products which fall under question
mark product and dog product because of their lower position in the market place.

Departmentalization

In order to improve the management and efficiency of an organisation, departmentalisation is used. In

Bashundhara is a huge organisation and Banshundhara foods and beverages is a part of the firm. It is a
huge firm and also they have successfully their products quality and became one of the top firms in
Bangladesh. That was all possible for proper application of functional departmentalisation, where
experts are hired in order to maintain control and efficiency over the entire organisation in various
divided functional departments.

Lastly, customer. As Bashundhara foods and beverages are a huge firm, they have a large amount of
potential customers from various backgrounds. By keeping the customer’s choices and price ranges they
have selected a moderate price point so that they can deal with different types of customers.

Recommendation

There is absolutely no question that Bashundhara Food & Beverage Ltd. has a great name in the food
market of Bangladesh. However, according to our analysis we think there might be some steps and
changes should be made with the purpose of continuing the business more smoothly. They are discussed
below -

1. Bashundhara Food & Beverage Ltd. seems to lack variation in their products which a great
disadvantage in the competitive market of today. They need to add more varieties, flavors, styles etc. after
doing a detailed survey on both the consumer, market and other food companies.

2. Bashundhara Food & Beverage Ltd. also needs to approach their targeted consumer with more
convincing manner and in frequent way.

3. Bashundhara Food & Beverage Ltd. should broaden their limited product line. They needs to introduce
new products in order to keep up with pace of today’s market.

6
4. Bashundhara Food & Beverage Ltd. should use their expansion, opportunities and goodwill in more
prominent and efficient way to cement their position the food market of Bangladesh as well as in the
global market.
Conclusion-
In brief, after researching and collecting relevant researches and data we got to know that Bashundhara
food and beverages has been one of the most successful and innovative company in food history. Also,
they have a better perception about market and their customers. Along with that, we got to know how this
company got to be one of the best companies in Bangladesh.

Reference-

1. http://bashundharagroup.com/
2. http://www.bashundharafood.com/
3. Copp, C. M. (2020, May11). Product life Cycle. Retrieved from Business:
http://www.investopedia.com
4. Henlon, A. (2020, July10). How to use BGC Matrix Model. Retrieved from Marketing
Model:http://www.smartinsights.com
5. Bashundhara Food & Beverage Ltd. official website
Link: http://www.bashundharafood.com/
6. Bashundhara Group official website
Link: http://bashundharagroup.com/