Download - ENTREPRENEURSHIP PLAN
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Entrepreneurship Business Plan
Topic:
Conversion of Egg into Powder form.
Submitted To:Sir Khurram Ali Jafri
Submitted By:Ali Ahmad Majoka 006Muhammad Habibullah 084
Sharjeel Arslan 139Zahid Yousaf 166Qaiser Abbas 175
Section:MBA-13C
Submission Date:12th May, 2011
COMSATS Institute of Information Technology, Lahore
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Contents
Contents ...........................................................................................................................................2Executive Summary: ....................................................................................................................... 3
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Business Overview: ............................................................................................. 4
Nature of Business ........................................................................................................................... 4
COMPANY OBJECTIVES ............................................................................................................. 5Target market ...................................................................................................................................5
Purpose of Partnership .....................................................................................................................6
Management team ............................................................................................................................6ORGANIZATIONAL STRUCTURE .............................................................................................7
Roles and Responsibilities ............................................................................................................... 7
INDUSTRY ANALYSIS ................................................................................................................ 8SWOT Analysis ............................................................................................................................... 9
Product Feasibility and Strategy ....................................................................................................10
Distribution channels .....................................................................................................................12
FINANCIAL PLAN .......................................................................................................................13CRITICAL RISK FACTOR ..........................................................................................................15
Marketing risk ............................................................................................................................15
FINANCIAL RISKS ..................................................................................................................15
Conclusion and Recommendations: ...............................................................................................16
Executive Summary:
Quality & style are now the top priorities of the citizens of developed countries. For this purpose
Royal Eggs, has taken advantage of this opportunity by providing an innovative product of
hygienic eggs in powder form. ROYAL EGGs is committed in providing its customers with
nothing but the best quality product. It is the pioneer in the economy of Pakistan. It has great
edge of no competitors and large market for this type of Business. We are new utilizing the
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market opportunities. As this is new business so, we have to face shortage of sales at beginning
of our company Life. This business is on partnership bases so all the partners are equally
sharing in profit or loss. We will target a niche segment of huge market. That segment will be
restaurants and bakers in Lahore only. We will sell our product through different dealers.
ROYAL EGGs is providing all sort of eggs in powder form, new invention, new products which
are rapidly adding up in product mix of this industries all will be adopted by ROYAL EGGs.
ROYAL EGGs has only one unit which is converting five thousand eggs into powder form in
Pakistan. Project is based on new creation of business by utilizing business opportunities. So,
we have started ROYAL EGGs Company. A full marketing analysis of company including
internal factor strength and weakness, external opportunities and threats. PEST analysis, Risk
analysis and financial analysis has been done in the project. We will use China based
Technology Machine which will convert five thousands Eggs into Powder form. We will provide
our product in different attractive packaging sizes. We will market our product on print media as
well as on electronic media. Projection of marketing expenses has been done in the project.
Business Overview:
Name of Business
The business which we are going to start is by the name of the Royal Eggs.
Nature of Business
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We are committed to serve hygienic and quality Egg which is full of vitamens in natural
form. Our business infrastructure consist of its abilities,competencies, skilss,culture,
values, and pure qualified management styles.
Company Mission Statement
The mission statement of Royal Egg is :
To be a pioneer Company in this market, we will continue to serve the Market
with our healthy and hygienic products and services by utilizing our best
capabilities and resources.
COMPANY OBJECTIVES
The company objectives are as follows:
To meet the demand of Bakeries and Restaurants in main cities
To boost up the economy due to innovate trend in the industry.
Business size
The size of the our company Royal Eggs is currently small in size but in future there is
great expectation to expand it.
Target market
Royal Eggs is providing services as B2B. We will operate as niche. Our target
customers will be Bakers & Restaurants.
Code of Conduct for Companys Management.
We expect honesty, openness and courtesy from all colleagues in their business
dealings. Our business respects creativity and innovation in routine matters. This is to
motivate everyone in the business to act in an ethical way. We communicate openly,
directly and accurately with the public. We will not give special treatment to any
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individual or institution. Confidential business information must not be shared with
others.
Future out Look and Trends
As people knowledge and awareness going to be increase .and world is going to be
more globalizing the trends, tastes, and fashion is continuously changing. People are
more health conscious now .and they are not ready to compromise on invaluable and
unhealthy foods. Now a days we also see that concept of providing the valuable
products to customers. To attract the customers to make them more loyal, to get more
revenue we specifically focus on this factor.
To make our services more efficient we will make special forums to contact immediately
to customers and suppliers for products. And within passage of time we will convert our
services on the internet to the fast and direct access to customers. As start we are
focusing on some national and more on local shops thats why our resources are
limited.
Form of Ownership
The business is purely on partnership basis.
Purpose of Partnership
The purpose of partnership is to share resources for the business. By this cooperation
the expertise will enhance for the best achievement of goals. And our organization will
be privately owned.
Management team
Our business is on partnership. Our management team will be consisting on 5
members. The duties and responsibilities will be dividing among them.
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Making marketing plan of the product development
Executing the marketing plan
Identifying the segments according to the attributes of the product
Making promotional plan including Advertisement and packaging
Operations Manager
Zahid Yousaf
Designing the manufacturing process
Making sure the proper working of manufacturing process
Plant maintenance and overhauling
Stock maintenance
Achieving the production targets
Finance Manager
Muhammad Habibullah
Costing
Arranging the funds
Maintaining records
Assets handling Making payments
Wages
Relationship manager
Sharjeel Arslan
Relationship with customer & suppliers
Building strong relations between Management and Employees.
Build strong Relationships with Govt.
HR Department
INDUSTRY ANALYSIS
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Pest Analysis
SOCIAL FACTORS
Social factors like people community, events, culture all ill support
our business because the use of eggs is common in our society. We will provide Eggsin hygienic form which will be full of vitamins and energy.
POLITICAL FACTORS
Here the political factor can interfere in our dealings .as government
can increase or decrease the custom duty because we will import Eggs from Brazil.
ECONOMICAL FACTORS
As the economical condition is going to in rescission so the fluctuation
in prices is very simple and common factor in these days. To cover and avoid the
economical loss we are going to produce and deliver our ..according to our
requirement.
TECHNOLOGICAL FACTORS
At start we are going to use advance technology. We will use basic machinery for our
production and also to provide the internet facilities up to some extant.
SWOT Analysis
STRENGTHS
Lower cost and selling price
No direct competitors in the local market
Quality plant
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WEAKNESSES
The absence of certain strengths may be viewed as a weakness.
Lack of awareness
Lack of Capital
OPPORTUNITY
Attractive market and industry
Good profit by good quality
Opportunity to enter into different segments in future.
THREATS
Entry of new Competitors
Energy crises
Poor economic and political conditions in Pakistan
Product Feasibility and Strategy
Product
As we are going to provide the Crystal Eggs which is specifically used by Bakers &
Restaurants. The specialty of our product than others is provision of best Quality to our
potential customers. As according to survey the supplier does not have the concern
about the cleaning process.
Packing
We will provide Crystal Eggs in special jars to maintain the level of quality and
cleanses .as our main targets markets also focusing on providing the best products to
customers. So it will be our specialty. Packaging will be depend on the following
capacity of Jars:
250 gm
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500 gm
1000 gm
Price
Price is the value that customers give up to obtain desired product.
250 gm (350)
500 gm (500)
1000 gm (800)
Pricing Strategy
When company starts they used pricing strategy keeping in a key advantage of
maintaining a strong brand image in a competitive market is a degree of flexibility in the
pricing strategy. It is a common characteristic of imperfectly competitive markets for
producers to concentrate on non-price competition view the competitor price.
This will help him to take the maximum market share.
Place
As we are operating in Lahore for manufacturing of our product. So we re going to makea small ware house . And we will provide our product according to the requirements and
need to our target market. To make any product successful its essential to provide at
right time and according to customer Demand.
Promotion
Promotion is a communication process that takes place between a business and its
various As we want to give knowledge to our customers about our product. We will use
different promotional tools like Print Media, electronic Media etc.
Print Media
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To promote our enterprise we will also used the print media in which we will make our
calnaders different pamphlets to give knowledge and awareness about our product
features, and specialty.
Distribution channels
As we are going to make our warehouse in Lahore and to provide the services to the
customers in Lahore. we will use distribution channel to make arrangement for just in
time delivery of our product to our customers. We will have our own outlet where we
well sell our product directly to the customers.
Production Plan
The method of production of our product is given as:There are some steps involved in production process
The production period of Crystal Eggs will be start from this summer.
Firstly we will buy 5000 Eggs, and place them in our warehouse.
The workers will start work to convert Eggs in powder form.
We will place all the Eggs in production plant where these main steps will be
followed.
1. For conversion of full Egg we will place in its one part of Machine where the
temperature of machine will be 16 to 18 degrees centigrade.
2. For conversion of only yolk we will place it in second part of machine where
the temperature will be 14 to16 degrees centigrade.
3. For conversion of only Egg white we will place it in third part of machine
where the temperature will be from 12 to 14 degrees centigrade.
4. After these steps the powder will be sent to the packaging department where
it will be packed according to the specific capacity.
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FINANCIAL PLAN
Capital requirement of Royal Eggs for 1 year
The required capital for our business plan, named as Royal Eggs, which will be
supplied by our management team. The capital requirement for the first year is given
below in the table marked as initial resources.
Sources of funds
Sources of fund categorized as:
1. The capital provided by our management team
Uses of funds
The funds will be used for acquiring the Rent land, purchase inventory, purchase
of machinery and salary of labor.
Budget Contribution
The followings amounts have been contributed by company partners
The amounts are in Pak rupees.
Muhammad Habibullah 600,000
Ali Ahmad Majoka 600,000
Sharjeel Arslan 600,000
Zahid Yousaf 600,000
Qaiser Abbas 600,000
Total Contribution 3,000,000
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Royal Eggs has five active partners, who are fulfilling capital requirements for setup
the business venture in Lahore, up to some extent but we need investors to meet its
startup cost.
Royal Eggs
Projected income statement ( 500 gm )For the year ended December, 2011
Sales (500*15000) 7,500,000Rent of Land 25,000
Direct expanses 10,000
Cost of sales (15000*350) 52, 50,000 52, 85,000
Gross profit 22, 15,000
Admin Expense
Salary of partners (12000*5*12) 7, 20,000
Salary of employees (8*5000*12) 480, 000
(1*8000*12) 96,000
General expanses
Utility Bills (3000*12) 36,000
Packaging Material 40,000
Total admin & General Expanses 13,72,000
Net income 8,43, 000
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CRITICAL RISK FACTOR
There is no business in the world from which we can eliminate the risk factor. A
business can face the risk from different fronts;
Management risk
Marketing risks
Operating risks
Financial risks
Management risks
There are no any specific suppliers in the market which efficiently supply Royal Eggs.
So, in our computation thats why we are pioneer in our field or you can say first mover.
Solution
There is no problem in the world which cannot be solved.
We have the legal documents that no one of us can start new business with same
name.
Marketing risk
Marketing in now days is a challenge for the companies We will positions our product to
those places where there is huge demand.
Give add in FM radios at suitable timings.
Print & Electronic Media
FINANCIAL RISKS
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Financials are the major risk factor for any business. Same is the case with our
business. There is recession in the economy. Thats why we are not expecting lot of
profit in first years because we focus firstly on low price at same quality.
Conclusion and Recommendations:
As per market analysis, it is sure that our project will be successful because of no
specific Competitors in market, so we have good opportunity to enter this business.
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