Business Plan of
CNC Wood Engraving Machine
Innovative Cutting And Engraving
Offering High Quality Products and Fine Services Innovative Cutting & Engraving is a Manufacturer of modern computed
numerically controlled (CNC) and engraved parts. We have prided ourselves on quality products and timely delivery.
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Company Introduction
Company Name :
NewTech Enterprises
Product Name :
NewTech CNC
Wood Engraving Machine
Mailing Address:
Head Office: 14FF Kohinoor Plaza Main Jaranwala Road Faisalabad.
Warehouse: Small industrial State Sargodha Road Faisalabad
Website Address: www.newtech.com
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Management Team
CEO Name: Mr . Kh .Shehryar Masud Mob : 0321-8666418
Project Director: Mr.Muhammad Sajid Mob :03217696911
Head of Department Marketing: Mr. Muhammad Shahnawaz. Mob: 03217713003
Head of Department Finance Miss Maira Gull
Head of Department HRM Miss Sana Imtiaz
Head of Department Operations Miss Saba Ishaq
Head of Department MIS Miss Shumaila
Head of Department Art & Design work Miss Naila
Head of Department Consumer Relation Miss Samreen
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Confidentiality Agreement
The undersigned reader acknowledges that the information provided by NewTech in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of the CEO NewTech.
It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to NewTech.
Upon request, this document is to be immediately returned to CEO
Kh .Shehryar Masud
___________________Signature___________________
Name ___________________
Date ____/____/______
This is a business plan. It does not imply an offering of securities.
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we at NewTech are committed to provide intelligent products which facilitates the manufactures of wooden products world wide by satisfying their needs in time using state of the art equipment and CNC technologies, Enhance their productivity and profitability by reducing their labor cost.
Nature of Business :
This is a Trading business and the concept is to get new machines from china and distribute it in Pakistan but the major difference is to provide services after sale.
Estimated Finance Required:
The estimated finance for this project is 10 million rupees but one can start it even less than 10 million this decrease of investment depends on the number of machines that one can stock . one have to maintain his stock sufficiently and 5 to 6 machine should be there initially in stock at any time. One Machine cost us at home of about Rs 130000 and can be easily sold Rs 160000. According to our plan we will use 50% Equity and 50% Debt.
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Executive Summery
This is a trading business in which we are importing machines and spare parts of CNC (computer numeric control) Wood Engraver Machines from Ruijie Corporation China and to distribute it into our local Pakistani market. Currently there is no such distributor available in the market so we have to make our distribution network first. And initially the product works on exclusive distribution network. As we are dealing with business products so our target costumer is all the manufactures of wooden products who want Innovative Cutting and Engraving on wood. Such customers are working on large scale and face heavy demand of their wooden products inside as well as out side the country.
Over all the Furniture industry in Pakistan is developing gradually at its own and the idea of setting up showrooms on G.T Road, and Gujarat By-pass is increasing. The estimated overall furniture sale from Gujarat is about Rs. 250 million per annum. This figure is gradually increasing with the increasing demand and quality consciousness of the consumers. Right now this CNC Engraver machine concept is new for the current market and people are not familiar with the product’s efficiency, so they are conscious regarding their investment in such (tools) machines, but they can afford it and can welcome it if they will find a reasonable price by showing them the related benefits.
The estimated finance for this project is 10 million rupees but one can start it even less than 10 million this decrease of investment depends on the number of machines that one can stock . one have to maintain his stock sufficiently and 3 to 4 machine should be there initially in stock at any time. One Machine cost us at home of about Rs 1300,000 and can be easily sold Rs 1600,000. According to our plan we will use 50% Equity and 50% Debt.
We at NewTech provide Ruijie brand which is well-known in quality and the related benefits it provides and offers fewer prices. So the positioning of our product in the minds of our customer will be fewer prices and more benefits which is the main reason for making this business a great success.
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Industry Analyses
Global Environment:
The global trade of furniture is concentrated in selected countries. Four of the largest markets for furniture are USA, Germany, France and Italy - all with a domestic market of over $10 billion. The United States is the world's largest furniture market, where the opening to imports in the last few years has been impressive. There exists huge potential for future growth in trade of furniture as new markets continue to open such as China, India and Russia, which have the capacity to reach up to US $ 10 billion.
Pakistan’s E conomic Development :
Pakistan is basically an agricultural country having 25% of total area under crops. However, forest has quite meager part, which is about 4.8%; whereas, the recommended ratio for balanced economic development, and environmental stability of the country is 20-25% . Due to over population stress, natural forest areas are being withdrawn from production to be placed in reserves. Everything points to a growing imbalance between demand and supply. Pakistan is suffering from acute shortage of timber wood and wood products. Share of forestry in GDP in 1983-84 was 0.35%, whereas in the year 2000, it has been reduced to 0.1% only. Growth rate of firewood during 1988-93 was 8.8% whereas during 1993-98 it was 2.9% only (Anonymous, 2000a).
Presently, public forests of Pakistan contribute only 10% of fuel wood and just 14% of the commercial timber. Farm grown wood provides 90% fuel wood and 65-70% of timber wood requirements (Mohyuddin, 1998). The remaining 15-20% of timber requirement is being fulfilled by the import of wood and wood products (Ahmad, 1991; Khan, 1989) and Rs. 9163.9 million per annum is being spent on the import of wood and wood products. The total demand of wood in the year 2000 was 844600 m3
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Political – Legal Environment:
Pakistan’s export in furniture has remained stagnant due to lack of modern machinery & latest technology. Government of Pakistan is trying its best to improve this rich industry’s potential by emphasizing upon the opportunities for the foreign investors, to develop the industry by the import of modern wood working machines and latest wood processing techniques, working closely with the Pakistan’s furniture industry in near future. The domestic demand for home & office furniture is growing at an annual rate of over 25%. The next decade will see tens of thousands of new apartments and offices coming up every year, requiring to be furnished – a growing opportunity for the furniture manufacturers.
Furniture industry is developing gradually at its own and the idea of setting up showrooms on G.T Road, and Gujrat By-pass is increasing. The estimated overall furniture sale from Gujrat is about Rs. 250 million per annum. This figure is gradually increasing with the increasing demand and quality consciousness of the consumers.
There are around 350 units overall and over 8,000 persons are directly or indirectly involved in this sector. At the moment, a few of the local furniture manufacturers are exporting furniture items to the individual clients in UK, US, Saudi Arabia and Middle East. The total export of Furniture from Gujrat is about US$ 4.5 million. (Directorate of industries), however due to limited production capacity these firms are not able to fulfill the large export orders and hence can not compete vigorously in international markets..
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SWOT Analysis
StrengthsCreative designs and innovating cutting.Multifunctional productsUnique productCompetitive priceProviding support after sale .
Weakness:
Entirely new brandDistribution and supply chain are not developed yet.Dependent on our supplier.
Opportunities:
Can gain the first mover advantage in this fieldTo capture the entire wood market. No such technology available in the market.Expansion in future
Threats
The global economy downtown Easy entry of the competitorMarket are very complicated and diversified.No copyrights protection
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SECTION 1: DESCRIPTION OF VENTURE
We design and supply an exclusive range of Wood Carvings Machines to meet a variety of applications. Our designed Wood Carvings are used by countless customers all over the country, as these are enough to meet their specific requirements. Special designs and advanced features of these Wood Carvings always attract users to prefer us than other ordinary designers serving in the competitive market. Hence, our expert designers don’t compromise with the quality of material and latest technologies required in the designing process. They keep them update with all the market trends and prefer latest methods and techniques to design them.
The machine is designed to offer maximum flexibility and much opportunity of CNC engraving letters on wood, other items like presentation 1) gift articles, 2) pops, 3) Regards, 4)Temple panel, 5) Wall pictures, 6) School boards, 7) Company logo, 8) Artistic carving tiles, 9) Pictures of maps, 10) Drawing pictures. The revolutionary state-of-the-art-Technology engraving cutting of letters, marking and inlay work is carried out on fully automated and computer-controlled machine
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Growth Trends In This Business
Furniture industry in Pakistan is developing gradually at its own and the idea of setting up showrooms on G.T Road, and Gujarat By-pass is increasing. The estimated overall furniture sale from Gujarat is about Rs. 250 million per annum. This figure is gradually increasing with the increasing demand and quality consciousness of the consumers.
Targeted Market and Customers:
As we are dealing with business products so our target costumer is the manufactures of wooden products who want Innovative Cutting And Engraving on wood. Such customers are working on large scale and face heavy demand of their wooden products.
Pricing Power:
Right now this CNC Engraver machine concept is new for the current market and people are not familiar with the product’s efficiency, so they are conscious regarding their investment in such (tools) machines, but they can afford it and can welcome it if they will find a reasonable price by showing them the related benefits.
Suppliers: This is a trading business in which we are importing machines and spare parts of CNC engraver machines from ABC Corporation China and to distribute it into our local market.
Distributor :
Currently there is no such distributor available in the market so we have to make our distribution network . and initially the product works on exclusive distribution network .
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Location of the business :
This business is basically divided in to two parts the one is head office and the other one is its warehouse.
Head office: Head office is a place where our business customers will get interact with us so it should be in a fine location and initially one should go for a rented office or for its own office .we have selected a place for the head office is
14FF Kohinoor Plaza Main Jaranwala Road Faisalabad.
We have get this place on three year agreement against Rs 500000 Advance payment and Rs 50000 monthly rent.
Warehouse: is a place where all the products are used to store before the sale happens it can also serve as workshop and can store all the spare parts of the CNC engraver machines and also it contains the technical department who is there to support out targeted customers. so mostly it is used by the company so there is no need get a very fine location for it. Any place which is wide, good for storage of machines and easily accessible is fine for warehouse. we have selected a place for the warehouse is :
Small industrial State Sargodha Road FaisalabadWe have get 15 marls place on three year agreement against Rs 150000 Advance payment and Rs 15000 monthly rent.
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Office furniture and Equipment:
To meet official requirement of this business the following furniture is to be required
Description No of Units Unite price Total Tables 10 10000 100000Chairs 20 2000 40000Computer 5 20000 100000Carpet 2 15000 30000Stationery 20000water Dispenser 1 7000 7000Over Head Expense 5000Telephones 6 1000 6000Facsimile 1 20000 20000Internet 1 1200 1200 Total 329200
All office equipment and furniture and fixture are purchased on cash and they are company assets and insured by Premier Insurance Company .
Personnel’sHuman Resources CEO-
Project Director- Rs 50000 Marketing Dept: 40000 Finance Dept 40000 HRM Dept 40000 Operations Dept 40000 MIS Dept 40000 Art & Design work Dept 40000 Consumer Relation Dept 40000 Operational; mangers 40000 Offfice Staff 5000 Total HR costs Rs 360000
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Professional Consultants
We have professional consultants in our business like Sir Khurram Ayaaz ( IT Manager AM-Tex Faisalabad) who is a well known personality in the field if Digital processing and embedded software engineering ,who is there to support us and providing there services in trouble shooting and maintain ness of machines,he is there to help us in dealing with after sale services support of such CNC wood Engraving machines
Work Experience Related to My Intended Business:As nature of the product is technical and it required a lot of technical knowledge to understand this machine . Especially As it is controlled by computer (CNC computer Numeric Control) and use both the hardware CAM and software CAD so one should have the basic knowledge of IT.Being the Director of this project My Work Experience in this regard is that I have done BS(Computer Science) and after completing my BS degree I have moved my self towards business education and I chose MBA degree to get familiar with business terminologies and its useful practices. So this project needs all the skill related to business as well as information technology . Also one must have to satisfy the costumer so it also required strong interpersonal skills.
Background of Entrepreneurs: As the CEO of this project what I feel the thing which motivates me in this business is that it is a trading business and because I have the experience of production related business that is yarn manufacturing. And the current situation of Pakistan due to energy crises is not in favor of manufacturing.So I have to go for trading and I believe the Future survival is only in trading business. As the Project Director of this project what I feel the thing which motivates me in this business is that I have seen the embroidery machines and I know how rapid this business is developed in Pakistan. 10 years back it was a new and unique concept to make embroidery through machines and there was only one distributor of such machines in Pakistan but now that business has been penetrated in the Pakistani market and same is the case happen with CNC engraver machines because the product is new and one have to develop its market now so this is the right time to get into this business.
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Order for Machines to Ruijie china
Operational plan
Flow of Orders for Machines .
This is a Trading business and the concept is to get new machines from china and distribute it in Pakistan but the major difference is to provide services after sale
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Import
Clearance
NEWTECHHead office
Price Settlement
Finalizing Order
Execution
Customer Pakistan
NEWTECH Ware hose
Technology Utilized:.
Website Address: www.newtech.com
This is the web address of the company. The company would operate
through Internet technology and through telephonic technology. People can
also place an order by sending written proposals.
Description of Companies Operation:
NewTech will get a jump-start to building its client base primarily because
of its location and the fact that it is the only service provider of its kind in
the area. This will make it very easy for new clients to try Newtech's
Business Centre for the first time. It will then take our total focus on
customer service to ensure that those clients return.
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we will service our direct customers through our head office location on
14FF Kohinoor Plaza Main Jaranwala Road Faisalabad. The customer will
first welcome by our receptionist who is there to help them in their queries
if they want to buy a new machine than the client will move towards our
selling department and if he need some special service regarding there
existing machines than he will move to our service/ customer care
department, customer can also make payments in head office and
customer can enjoy our delivery service which we have offered as well,
depending on demand of the customer.
Credit Terms & Guarantees
Once we have verified their credit history with a credit agency check, our
business clients will be offered 30-day account terms. A 3 percent penalty
will be applied to all overdue accounts. Frequent and high-volume customers
will be eligible for discounts and specials.
Marketing Plan
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Marketing analysis
Market size
The information sources for determining market size is following:
Customer surveys
There are around 350 units overall and over 8,000 persons are directly or indirectly involved in this sector. At the moment, a few of the local furniture manufacturers are exporting furniture items to the individual clients in UK, US, Saudi Arabia and Middle East. The total export of Furniture from Gujrat is about US$ 4.5 million. (Directorate of industries), however due to limited production capacity these firms are not able to fulfill the large export orders and hence can not compete vigorously in international markets..
Market growth rate
currently there is 15% market growth rate annually and this growth is increasing .
Market profitability
This framework, known as Porter's five forces, identifies five factors that influence the market profitability:
Buyer power Supplier power Barriers to entry Threat of substitute products Rivalry among firms in the industry
Low Car manufacturing takes extremely large amount of capital to enter. To compete at GMs level is next to impossible.
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Market trends
Right now this CNC Engraver machine concept is new for the current market and people are not familiar with the product’s efficiency, so they are conscious regarding their investment in such (tools) machines, but they can afford it and can welcome it if they will find a reasonable price by showing them the related benefits.
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5-Strategic alliance
There exist a strategic alliance between NewTech Pakistan and Ruijie china ,the motive behind this strategy is that they have the manufacturing technology and we have the desired market so being manufacture they are producing and we are here to distribute it in to Pakistan
Key Success Factors
The key success factors are those elements that are necessary in order for the firm to achieve its marketing objectives.:
Access to essential unique resources
We are largely dependent on our suppliers so the major key factor is that if we become successful to get proper input from our suppliers (Ruijie) with in proper time.
Ability to achieve economies of scale
Second success factor is, increase in sale and reduced our operational cost.
Access to distribution channels
Easy and timely access of our distribution system
Technological progress
Latest up to date technology in CNC engraver machines
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The Marketing Mix
Marketing decisions generally fall into the following controllable categories:
Product Price Place (distribution) Promotion People
PeopleThe main problem faced by NewTech was the identification of the need and demand of people so that they feel satisfaction .for this purpose a survey was conducted and question were asked .our target market was wood manufacturer.
Market research
NewTech is accompany that have done a grate job in the field of innovative products.we conduct a survey to know that what people want? Special type of Questioner was prepared and the views of people were asked .Research is very important when ever we launch a new product.
For the purpose the research approach we used:
I. Survey researchII. Observational research
III. Behavioral data
Our research instruments used are:
a) Questionnaire b) Telephonec) Face to face survey
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SegmentationNewTech Company divides the market on the basis of different factors.
1) Geographical segmentation
Country urban areas sub urban areas
Pakistan 77 % 23 %
Province
Punjab,
City
Lahore, Gujrat, Chaniout, Multan, faisalabd,
2) Firmographic segmentation
As we are making business products so our target costumer is the manufactures of wooden products who want Innovative Cutting And Engraving on wood. Such customers are working on large scale and face heavy demand of their wooden products.
3) Behavior segmentation
i) Quality sensitive:
The behavior of our target customer is first of all he is quality sensitive and want quality products.
4) Need base segmentation
i) Need of power:
Such target customer feels more power by getting unique and advance machinery into their business.
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PRODUCT:
Model Number: Wood working Machine(RJ2030)-1-1
Country of Origin:
China (mainland)
Brand Name:
Ruijie
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Primary Competitive Advantages:
Experienced Staff Guarantee/Warranty Price Product Features Quality Approvals Reputation Service Small Orders Accepted
Main Export Markets:
Eastern Europe North America Mid East/Africa Central/South America Asia Western Europe Australasia
Supplier Address
Jinan Ruijie Mechanical Equipment Co., Ltd. Daliu, China National Highway 308Daqiao, TianqiaoJinanShandongChina 250000Tel: (86 531) 8808 3666 (86 531) 8809 1666 Fax: (86 531) 8808 2666 / (86 531) 8809 0866
Homepage Addresshttp://www.globalsources.com/jnruijie.coOther Homepage Addresshttp://www.jnruijie.com
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Product Specifications Brand name Functionality Styling Quality Safety Packaging Repairs and Support Warranty Accessories and services
Key Specifications/Special Features :
Specifications: o This machine is widely used in process for single
lines,milling,3D,cutting and engraving. o Lathe bed adopts strong welded steel tube to avoid distortion. o Y axis adopts double motors to keep stable moving. o High accuracy Rack Rail travel method with high speed. o Imported Square Liner Rail,high accuracy,heavy burthen. o Advanced international technology vacuum with double cavity. o Humanization Design of lathe bed vacuum and easy working. o Intelligient protecting working fable.
Application:
Furniture Processing Industry, Home Decoration, Woodworking Decoration, Doors Manufacturing, Wood Art Work
Parameters:
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o Working area: 2,000 x 3,000 x 190mm (80.77 x 120.17 x 7.5 inches)
o Max moving speed: 5,000mm(197inch)/min o Max Engraving speed: 2,000mm(78.8inch)/min o Hold method: Vacuum o Reposition Accuracy: 0.05mm o Working dictate: G code o Spindle: 3.0KW Water Cooling o Spindle speed: 6,000 to 24,000rpm o Collet: ER20 o Transmission:XYHigh Definition Rack Rail Z Imported Ball
Screw. o XYZ Guide: Square Liner o Operation system: DSP controller o Consumption Power: <1900W o Dust collector power: 3KW o Absorption power: 4KW
Payment Details:
Payment Terms:
o Telegraphic Transfer in Advance o LC
Minimum Order:
o 1 to 99 Set
Value-Added Services / Augmented services
• After sale and servicing
• Free delivery Distribution Network
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Distribution -Scope Strategies
Exclusive distribution o Limiting the distribution to only one intermediary in the
territory Intensive distribution
o Distribute from as many outlets as possible to provide location convenience
Selective distribution o Appoint several but not all retailers
Initially we will use Exclusive Distribution Strategies for this business:
A main factor in choosing NewTech was its expertise in “high-quality technical products on the consumer market.”
Exclusive Distribution: Advantages
Maximize control over service level/output Enhance product’s image & allow higher markups Promotes dealers loyalty, better forecasting, better inventory and
merchandising control Restricts resellers from carrying competing brands
Exclusive Distribution: Disadvantages
Betting on one dealer in each market Only suitable for high price, high margin, and low volume products
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Companies Distribution channels
Channels -Selling to the customers: As we sell by our self whether by our
employ or by our sales force, we are in these cases in front of the final customer. There are not intermediaries between our customer and us .
Manufacturer (Jinan Ruijie Mechanical Equipment Co., Ltd)
↓ Distributor ( Importer ) NewTECH Enterprises ↓ Warehouse ↓ Customer
Positioning :
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NewTech provide Ruijie brand which is well-known in quality and the related benefits it provides and offers fewer prices. So the positioning of our product in the minds of our customer will be less price and more benefits.
Product pricing :
The product price is mainly consists of the following factorsFinancial cost + Timing cost +Energy cost + Risk
Pricing strategies
Value pricing ( skimming) It means that we base our prices on the value we deliver to our customers. This practice is also called skimming. It is easy because we are in the introductory phase of the product life cycle.
Consumer price------------- Rs 1,600,000 ($ 18824)
Supermarket selling price----Rs 50,000 ($600)
Shipping to Faisalabad-------Rs 25,000 ($300)
Factory price----------------- Rs 1,200,000 ($ 14118)
Break even Analysis
Our price of a single machine is Rs 1600000 a competitive pricing strategy. And we have a fixed costs Rs 360000 that will remain constant whatever the number of machines sell: To sell this machines we need Rs 100000 variable cost in labor and raw material. To recover your fixed costs without making any profit you have to make a sale in amount:
Fixed costs (360000)/Selling price(1600000)-Variable costs(100000)= Rs 2600000 aprox
So as we have one machine price is Rs 1600000 so we have to sale two machines in one month to survive
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Promotion
Promotion DecisionsIn the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:
Promotional strategy (push.) Personal selling & sales force Public relations & publicity Direct marketing Advertising
Advertising Media:
Electronic Media
I) Radio
FM radio is one of the popular way to introduce such products to our target customers by making special introductory program on the promotion of our products .
Reach radio advertisement covers major cites of Punjab and covers 60% of the target market which is affected by your advertisement.
Frequency: The number of time a person is exposed to your message. In our case a person must be exposed seven times to our message in a month.
Message: special half an hour introductory program on the promotion of our products.
ii) Email
we have try to send maximum emails to our target costumes consisting details of our products .our target customer can also interact with us by sending emails as well. The email address is as fallow [email protected]
iii) website
website is made for highly educated business man who is using internet and keep him/her self up to date by visiting different websites in this regard we have developed a website www.newtech.com . it not only contain all information regarding existing products but also the products that company is going to launch in near future .
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2) Print Media
1) Newtech’s innovations Magazine: A special magazine “Newtech’s innovations” design by the Newtech company to provide information regarding new brands.
2) professional magazines: we can also promote our products in some special industry magazine like architectural magazines ,furniture magazines
Promotional budget
Per month Budget for electronic media
Media Vehicle Title of vehicles Duration Charges
Electronic website www.newtech.com one month 1000 Email comsat’s ISP one month 500 Radio Introductory program 30 minutes 10000
Per month Budget for printed media
Media Vehicle Title of vehicles Duration Charges
Print Magazine Industrial innovations monthly 5000
Total promotional expenses
Per month Budget for electronic media = 11500 Per month Budget for printed media = 500
Total =12000
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Organizational PlanIn this organization only the partners will contribute towards business, nobody outside the organization would be to invest and only the finance will be borrowed from the bank.
Form Of Organization.This is a medium scale organization and it is basically a trading company.
Organogram:
CEO
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BOD’s and G
H R Finance
MarketingOperations Project
Director
M I S Art
& Design
Consumer
Relations
Thus an effective organization is an arrangement of people that successfully achieved their purpose, ie. a large profit of fine product, and have done so in a noteworthy, exemplary, commendable method or fashion.
Organizational structure is defined as ‘the organization’s formal framework by which job tasks are divided, grouped and coordinated’
We use Organic structures in our organization, alternatives to mechanistic structures. The underlying philosophy of the organic model is to provide the “space” for all people to contribute ideas and effort towards the well being of the organization. Organic organizations are characterized as ‘highly adaptive and flexible with little work specialization, minimal formalization and little direct supervision of employees’ .Since organic organizations takes into consideration the ideas of the employees this opens the doors to create teamwork among employees.
Size of the Business:The size of the business is small and initially 25 persons are enough for such an organization, and among CEO will work at the top level management and are responsible to make strategic plans and decision .Than comes middle level management playing a key roll working at the same time with upper and low level management which have 8 to 10 people who are there
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Managers
Asst Managers and Others
to execute the plans and then 16 to 20 persons will work as operational managers who are directly dealing with different corporate clients and with middle level managements.
Size of the Business:
1. Top Level of Management
It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions.
The role of the top management can be summarized as follows –
a. Top management lays down the objectives and broad policies of the enterprise.
b. It issues necessary instructions for preparation of department budgets, procedures, schedules etc.
c. It prepares strategic plans & policies for the enterprise.
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d. It appoints the executive for middle level i.e. departmental managers.
e. It controls & coordinates the activities of all the departments. f. It is also responsible for maintaining a contact with the outside
world. g. It provides guidance and direction.
2. Middle Level of Management
The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management.
Their role can be emphasized as –
a. They execute the plans of the organization in accordance with the policies and directives of the top management.
b. They make plans for the sub-units of the organization. c. They participate in employment & training of lower level
management. d. They interpret and explain policies from top level management
to lower level. e. They are responsible for coordinating the activities within the
division or department. f. It also sends important reports and other important data to top
level management. g. They evaluate performance of junior managers. h. They are also responsible for inspiring lower level managers
towards better performance. i.
3. Lower Level of Management
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Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees”. In other words, they are concerned with direction and controlling function of management. Their activities include –
a. Assigning of jobs and tasks to various workers. b. They guide and instruct workers for day to day activities. c. They are responsible for the quality as well as quantity of
production. d. They are also entrusted with the responsibility of maintaining
good relation in the organization. e. They communicate workers problems, suggestions, and
recommendatory appeals etc to the higher level and higher level goals and objectives to the workers.
f. They help to solve the grievances of the workers. g. They supervise & guide the sub-ordinates. h. They are responsible for providing training to the workers. i. They arrange necessary materials, machines, tools etc for
getting the things done. j. They prepare periodical reports about the performance of the
workers. k. They ensure discipline in the enterprise. l. They motivate workers. m. They are the image builders of the enterprise because they are
in direct contact with the workers.
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Identification of Partners:
The partners are Miss Saba Ishaq, Miss Sana Imtiaz, Miss Maira Gull, Miss Naila, Miss Sumaila, Miss Samreen, Mr. M.Sajid, Mr.Shahnawaz, and Mr.Shehryar.
Recruitment PlanRoles and Responsibilities of members (Job Description and Job Specification)
Job description of CEO; Setting strategy and vision Corporate policies, Controlling activities Capital allocation Profitability and growth Relationship with board of directors Management recruitment and development building culture. Team-building
Job specification of CEO; A minimum of five years of experience in business
management, planning and financial oversight. A minimum of five years of experience in personnel
management. A minimum of three years of experience working with a board
of directors and committees. College graduate or equivalent experience. Proven skills in business and financial management. Demonstrated ability to work in a proactively diverse and
inclusive organization.
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Excellent interpersonal, verbal and written communications skills.
Demonstrated ability to manage and supervise a staff team. Demonstrated ability to multi – task and work in a fast – paced
office setting. Proven ability to cope with conflict, stress and crisis situations. Effective problem – solving and mediation skills. Proficiency with office computer equipment and software.
JOB DESCRIPTION of Finance Manager; providing and interpreting financial information; monitoring and interpreting cash flows and predicting
future trends; analyzing change and advising accordingly; formulating strategic and long-term business plans; researching and reporting on factors influencing business
performance; analyzing competitors and market trends; developing financial management mechanisms that
minimize financial risk; conducting reviews and evaluations for cost-reduction
opportunities; managing a company's financial accounting, monitoring
and reporting systems; liaising with auditors to ensure annual monitoring is carried
out producing accurate financial reports to specific deadlines; managing budgets; arranging new sources of finance for a company's debt
facilities; supervising staff; keeping abreast of changes in financial regulations and
legislation.Job Specification ;
MA in Finance, Accounting or equivalent experience. Extensive financial or cost management experience. 5+ years senior level experience in international
development program operations. In depth knowledge of USAID, CDC and other
international donor agencies. Knowledge of cost accounting methods and practices
applicable to management of private and federal monies.
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Comfortable with a team approach to management and the ability to manage several major activities simultaneously.
Effective communicator with ability to communicate organization’s direction and ability to motivate others with strong, honest leadership.
Excellent general management skills particularly in facilitation, team building and coordination
Posses excellent problem solving skills. Public Accounting or financial reporting experience. Experience in the preparation of financial statements,
budgets and forecast. Firm foundation in accounting principles and financial
reporting standards. Sub-contract and sub-agreement financial management
experience. Experience developing finance and accounting policies,
procedures and systems. Demonstrates a leadership and management style that
works in cooperation with others who represent a wide range of interests and needs.
Experience with international, non-profit organizations (larger than $10M), as well as a multi-office, multi-national environment.
Understanding of the difference between contracts and cooperative agreements and their relevant terms and
Job description of HR manager; Plan, develop and implement strategy for HR management
and development (including recruitment and selection policy/practices, discipline, grievance, counseling, pay and conditions, contracts, training and development, succession planning, moral and motivation, culture and attitude development, performance appraisal and quality management issues)
Establish and maintain appropriate systems for measuring necessary aspects of HR development
Monitor, measure and report on HR issues, opportunities and development plans and achievement within agreed formats and timescales
Manage and develop direct reporting staff. Manage and control departmental expenditure within agreed
budgets.
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Liaise with other functional / departmental head so as to understand all necessary aspects and needs of HR development, and to ensure they are fully informed of HR objectives, purpose and achievements.
Maintain awareness and knowledge of latest HR development theory and methods and provide suitable interpretation to directors, managers and staff within the organization.
Contribute to the evaluation and development of HR strategy and performance in co-operation with the executive team.
Ensure activities meet with and integrate with organizational requirement for quality management, health and safety, legal requirement, environmental policies and general duty of care.
Audit and authenticate all documents related to legal, salary statements and distribution, policies etc.
Develop and Maintain healthy relation with Govt. and Non Govt. Organizations for better and fast functioning of organization.
Plan for employee’s performance appraisal; develop tools for appraisal, job evaluation and development.
Plan and direct for Training of employee including senior managers, maintain contact with outside resources for training.
Job Specification; Minimum of 6 years human resources experience Preferable to have experience in two or more of the
following areas: human resources management, organizational development/change management, process improvement (Six Sigma preferred), compensation, staffing.
Excellence in a client management model: mobilizing the best people and integrating the tools and processes required to meet the needs of the business
Business driven with strong financial acumen. Strategic planning, complex problem resolution and general
management expertise. Outstanding communication and presentation skills. High level of interpersonal skills and integrity; solid team
player. Ability to influence senior management, establish and
maintain collaborative partnerships and provide thought leadership.
Ability to architect and drive change
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Ability to lead in a global, matrixes environment
Critical Risks and Potential impediment
Environmental Risks
New Concept Our product is a new concept for Pakistani market and it may become a potential risk for our company to develop new market because people itself are very much sensitive about new industrial products.
Financial Risks
Capital Arrangement.
As we have elaborated in our Financial planning that our capital budgeting consist of 50% Equity and 50% Debt. So we may have Difficulty in arranging the debts from financial institutions.
Management Risks & Problems
Availability of Technical Human Resource
This machine is a little more complex in nature so to fully understand the working of machine one should have special knowledge regarding Computer added design CAD and Computer added manufacturing CAM So under such condition we need high technical people that may become problem in future for hiring special technical assistance.
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Legal Risks & Hurdles
We will have to involve with some Legal Issues like company registration, import issues , WAPDA stipulation so such following potential hurdles have been anticipated that may become a barrier in our smooth launching this particular entrepreneurial business plan.
FINANCIAL PLANS NEWTECH INTREPRISES
INCOME STATEMENT
For the peiod ended June 30th,2010
2010 2011 2012
Particulars Amount (Rs.)
Sales 64000000 76800000 80000000 720000000
Less: Cost of goods sold 5100000 61200000 63750000 57375000
Gross profit 58900000 15600000 16250000 14625000
Operating Expenses
Marketing Expenses 100000 1200000 1320000 1452000
Administration expenses 360000 4320000 4536000 4762800
Operating Income 10080000 10394000 8410200
Add: other income 20000 240000 264000 303600
Less: Interest Expenses 62500 700000 700000 700000
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EARNING BEFORE TAX 9620000 9958000 8013800
Less: Tax 10% 962000 995800 801380
EARNING AFTER TAX 8658000 8962200 7212420
NEWTECH INTREPRISES
BALANCE SHEETAs on June 30th,2010
2010 2011 2012
LIABILITIES
RS. RS. RS.
Owner’s equity 5000000 5000000 5000000 Long term loans 5000000 5000000 4500000
current liabilities
Short term loan 500000 500000 450000
Bill payables 100000 150000 300000
Provision for taxation
Excise duty 2% 500000 477740 900000
Custom duty 2% 313000 300000 894103
Sales tax 1000000 1800000 1500000
Income tax 10% 1800000 2500000 3500000
TOTAL LIABILITIES 14213000 15727740 17044103
ASSETS
Fixed ASSETS RS. RS. RS.
Vehicles 2000000 2430000 2187000
Office furniture 329200 312740 297103
Intangible
Copy right 7 15000 60000 40000
Long term loans and advances
Preliminary expense 150000 - -
CURRENT ASSETS
Cash 8 1268800 1300000 1320000
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Stock and trade 2550000 3825000 5100000
Stores, spares and tools 9 1100000 1300000 1500000
Accounts receivables 10 6800000 6500000 6600000
TOTAL ASSETS 14213000 15727740 17044103
NEW TECH ENTERPRISES
Cash Flow Statement
2011 2012
Cash Flow from Operation
Cash received from customer 73500000 71800000
Cash paid to suppliers (55000000) (60000000)
Interest paid (750000) (750000)
Tax paid (1135000) (1132000)
Net cash provided(use) by operating activities 16615000 63918000
Cash Flow from Investing Activities
additions in fixed assets ---- ----
Payment for machinery (63750000) (62475000)
net cash generated/used from investing activities (63750000) (62475000)
Cash Flow from Financing Activities
Addition to long term borrowings ---- 500000
Inc/decrease in short terms borrowings ---- (50000)
net cash used/generated from financing activities ----- 450000
net increase/decrease in cash 31200 268000
cash at the beginning of the year 1268800 1300000
cash at the end of year 1300000 1568000
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NEW TECH ENTERPRISES
statement of changes in equity
issued paid up capital
capital reserves
revenue reserves Total
Balances at the end of period 2010 5000000 500000 1300000 6800000 Balances at the end of 2011 5000000 500000 1500000 7000000
NEW TECH ENTERPRISESACCOUNTING RATIOS
2010 2011 2012
Efficiency ratios total asset turnover 6.39 6.00 5.95inventory turnover 7.0 6.8 6.5average collection period 6 8 10days sales in inventory 4 6 9
Profitability ratios Gross margin 10.2 9.90 9.60operating profit margin 8.0 7.80 7.20net profit margin 9.8 9.50 9.00return on assets 6.0 5.60 5.18return on equity 8.0 7.30 7.0
Leverage ratio long term debt ratio 2.9 2.5 2.0long term debt equity ratio 4.55 4.0 3.8total debt ratio 2.51 2.7 2.8times interest earned 4.65 4.0 3.90
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Break even Analysis
Our price of a single machine is Rs 1600000 a competitive pricing
strategy. And we have a fixed costs Rs 360000 that will remain constant
whatever the number of machines sell: To sell this machines we need Rs
100000 variable cost in labor and raw material. To recover your fixed costs
without making any profit you have to make a sale in amount:
Fixed costs (360000)/Selling price(1600000)-Variable costs(100000)= Rs
2600000 aprox
So as we have one machine price is Rs 1600000 so we have to sale two
machines in one month to survive
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Harvesting StrategyHarvest Strategy and Controls
The following will enable us to keep on track. If we fail in any of these areas, we will need to re-evaluate our business model:
Month-to-month annual comparisons indicate an increase of 14.1% or greater.
Do not depend on the credit line to meet cash requirements.
Continue to pay down the credit line at a minimum as possible.
Maintaining Gross profit at least from 80% 90%.
ImplementationWe will manage implementation by having a weekly milestones meeting with the entire staff to make sure that we are on track with our milestones and re-adjust our goals as we gather new data.
Once a quarter, we will review the milestones achieved, financial and estimated expanses to ensure that we stay focused on our business objectives and that we are not distracted by opportunities simply because they are different than what we are currently pursuing.
Contingency Planning
In the event that the business has a slower start-up than anticipated, expenses may be reduced as follows:
We may work up to two years and the directors will have to take only 50% of their share of profit .
We may reduce our profit margins. We may start reducing our extra marketing expenses. We may reduce our human resource to become cost effective.
These quantified savings can reduce operating expenses and more viable position that would pave our ways towards success as soon as possible.
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Appendix
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Following are some of the Creative work done by CNC engraver machines
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Ch Lal Din house# P-91Street# 5 Rabany Colony Faisalabad
House ph: 041 8716089 Date of Birth 25/11/1982 Mob: 0321 7696911 NID# 33100-6374968-9 E-Mail: [email protected]
Muhammad Sajid
Objective To contribute outstanding technical, managerial as well as communicational skills and strong commitment to achieving your company’s goals.
Experience 2008–2009 Pakistan college D-ground FaisalabadVisiting Lecturer
Major IT subjects.
Human Resource Management
Financial Accounting
Business communication
2007–2008 Lingua Home linguistic institute DHA Lahore
Lecturer (6:00 pm to 9:00 pm)
English Spoken classes.
Being teacher I have the ability to use clear communication techniques and to create a happy, caring and stimulating learning environment.
Excellent written and verbal communication skills with the ability to Conway subject material in an accessible and compelling manner.
Strong leadership qualities and the ability to manage challenging behavior calmly and effectively.
The ability to establish positive relationship with fellow professionals and parents.
2006–2008 Raja Jee Associates Y-Block DHA Lahore
IT coordinator and sale Representative (9:00 am to 5:00 pm)
Manage all the data regarding different Land and properties in a uniform way by using real estate data management software tool.
Evaluation of different land and properties.
Being representative dealing with other companies.
Demonstrate company’s current project to the out side world.
Made transactions worth of Rs 80 millions/ year by selling different DHA plots and files.
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2005–2006 AK Exports(Pvt)Ltd. West canal road FaisalabadManager Information system
Manage all computers of the company ,work as a troubleshooter and problem solver and maintain all the local aria network.
2004 – 2005 GC university Faisalabad
Teacher Assistant
Arrange classes and conduct assignments.
Working on university’s current projects
Project demonstrator
Profile
Education
Highly motivated, customer focused performer who is committed to quality in every pressure and thrives on challenge.
Excellent communicator and a good listener. Enthusiastic learner who quickly grasps concepts and technical skills.
Date Degree Institute Grad/Division
2008– May 2010 ( MBA ) University of Agriculture Fsd continue...
2001 - 2005 BS(CS) GC university Faisalabad 3.17
1999 - 2001 ICS Govt. college Faisalabad 2nd division
1998- 1999 Matric(science) Oxford Cadet School 1st division
Technical Skills
Team Work
Interests
Certification Operating System / S.W Applications.
Networking Windows Internet Explorer
98/2000/XP Mozilla
MS Word Open Office , SPSS
FOSSAC 2005 MS Excel C++
Administration MS Office VB.Net
Open source SQL server Java
Software Red Hat 8,9(Linux) DB2
I am equally happy working in a team as to on my own. I have worked individually creating budgets, establishing strategy and analyzing data
Management , Communication , Representation and information technology.
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Samreen khalid
Home Address:176 C GULBERG Colony.
Fathers Name:
Imtiaz Ali
Email: [email protected]
Tel: 041-0000000
Date of birth: 11 Nov 1987
Permanent Address: SAME
Mobile: 0300-6547838
Nationality: Pakistani
EDUCATION AND QUALIFICATIONS
Masters in Business Administration 2008 – to date University of Agriculture, Faisalabad
B.Com 2006 - 2008University of Punjab
Marks obtained1086/1500, 70%
OTHER SKILLS
MS Word
Ms Excel
ACTIVITIES AND INTERESTS Study Current Affairs Reading books Listening music Net browsing
REFEREES Reference will be provided on requests.
NAILA TABASSUM
OBJECTIVE:
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To work in a challenging and growing organization to make full use of capabilities and the professional skills to grow in hierarchy of organization.
PROFILE:Name: Naila TabassumFather’s name: M.AsalmDate of birth: 06-9-1987N.I.C # 33100-015625-2Religion: IslamMarital status: singleDomicile: fsdNationality: PakistanLanguage: Urdu, Punjabi, EnglishContact # 0301-7854565Address house # 57, jranwala road, fsd
PROFESSIONAL QUALIFICATION:
MBA finance (to date)From: agriculture university of, Faisalabad Final semester
B.COM (2008)From: university of PunjabDivision: 1st
FSC (2006)From: B.I.S.EGrade: B
MATRIC (2004)From: B.I.S.EGrade: A+
INTERESTS AND SKILLS:
Browsing cooking
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MUHAMMAD SHAHNAWAZ House # 323 (P-1), Kaleem Shaheed Colony, Near Iqbal Hospital, Faisalabad
Cell # 0300-7900781
OBJECTIVE:
To be responsible member of an Organization’s team where my qualification and
experience can have a measurable & valuable contribution towards and achievement of
ultimate objective and task assigned.
PERSONAL INFORMATION:
Father’s Name : Nazir Ahmad
Date of Birth : 2nd Day of March 1983
N.I.C. # : 33100-4719646-3
Domicile : Faisalabad (Punjab)
Nationality : Pakistani
Marital Status : Single
PROFESSIONAL EXPERIENCE:
24 May 2008 to Date Water and Sanitation Agency, FDA, Faisalabad Working as SUB ENGINEER in Planning & Designing Directorates at WASA, FDA, Faisalabad
01 September 2007 to 22 May 2008Govt. College University, Faisalabad Worked as sub Engineer B/R (Building and Road) at Govt. College University, Faisalabad.
01 January 2007 to 23 August 2007Punjab Rural Support Program (PRSP) Faisalabad Worked as Field Engineer in the School Council Program under the Punjab Rural Support Program (PRSP), Faisalabad
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30 January 2006 to 28 December 2006Agricultural Department (On Farm Water Management) Faisalabad Worked as Sub Engineer in the Agricultural Department (On Farm Water Management, Faisalabad)
PROFESSIONAL TRAINING:
01 July to 15 July 2008Water and Sanitation Agency, FDA, Faisalabad Two weeks Training on “Geographical Information System” (GIS) at Water and Sanitation Agency, FDA, Faisalabad.
30 January 2006 to 11 March 2006Water Management Research center University of Agriculture, Faisalabad Four Weeks Training Course on “Water Course Improvement and Construction” at Water Management Research Center, University of Agriculture, Faisalabad
PROFESSIONAL QUALIFICATION:
Auto CAD (2003) From: Punjab Board of Technical Education, Lahore Grade: A+
Material Technician (2006)From: Punjab Board of Technical Education, Lahore Grade: A+
EDUCATION:
MBA Final Semester (Continued) From : University of Agriculture, Faisalabad
Bachelors of Technology (Civil) 2008From : UET LahoreDivision : 1st
Bachelors of Arts (B.A.) 2007From : Punjab University, LahoreDivision : 2nd
F.A. (2004)From : BISE,Faisalabad Division : 2nd
3-Years Diploma of Associate Engineering (Civil) (2003)From : Punjab Board of Technical Education, Lahore Division : 2nd
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Matriculation (1999)From : BISE,Sargodha Division : 2nd
INTERESTS AND SKILLS: Brief description of my skills in computer field includes;
Management AutoCAD (2D & 3D) Communication Internet
RESUME
CAREER GOAL
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A management position where education and experience combine with positive interpersonal skills initiative and capacity to motivate others can be utilized for mutual benefits.
PROFILE Skilled in applying a logical common sense approach to seek practical solutions A self motivated, possessing a high degree of professional integrity
PERSONAL INFORMATION
NAME Samreen Khalid DATE OF BIRTH 06-01-1989GENDER FemaleADDRESS Colony Sapphire Fibres LTD. No. 3, Ferozewattoan, Distt. SheikhupuraRELEGION IslamNIC NO. 35404-7489590-0
Degree/Qualification Year University/Board Division/grade
Main subjects
MBA(Finance)4th (Last) Semester continue.
2010 Agriculture University Faisalabad
Continue Finance,
B.COM 2008 Punjab University Lahore 1st Division Accounting
FSC 2006 Lahore Board !st Division Pre medicalMatriculation 2004 Lahore Board 1st Division Science
ACADEMIC QUALIFICATIONWORK EXPERIENCE 2 Months Internship program In FAYSAL BANK LIMITED Faisalabad.PROJECTS DONE
Financial statement analysis of Textile Company (Sapphire Fibre Limited)
SKILLS Good communication Skills Good typing Speed MS Word, Excel, Power Point and SPSS
HOBBIES & INTEREST Reading books on different topics Internet surfing REFERENCES
References will be available on request…..
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RESUME
CAREER GOAL A management position where education and experience combine with positive interpersonal skills initiative and capacity to motivate others can be utilized for mutual benefits.
PROFILE Skilled in applying a logical common sense approach to seek practical solutions A self motivated, possessing a high degree of professional integrity
PERSONAL INFORMATION
NAME Samreen Khalid DATE OF BIRTH 06-01-1989GENDER FemaleADDRESS Colony Sapphire Fibres LTD. No. 3, Ferozewattoan, Distt. SheikhupuraRELEGION IslamNIC NO. 35404-7489590-0
Degree/Qualification Year University/Board Division/grade
Main subjects
MBA(Finance)4th (Last) Semester continue.
2010 Agriculture University Faisalabad
Continue Finance,
B.COM 2008 Punjab University Lahore 1st Division Accounting
FSC 2006 Lahore Board !st Division Pre medicalMatriculation 2004 Lahore Board 1st Division Science
ACADEMIC QUALIFICATIONWORK EXPERIENCE 2 Months Internship program In FAYSAL BANK LIMITED Faisalabad.PROJECTS DONE
Financial statement analysis of Textile Company (Sapphire Fibre Limited)
SKILLS Good communication Skills Good typing Speed MS Word, Excel, Power Point and SPSS
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HOBBIES & INTEREST Reading books on different topics Internet surfing
REFERENCES References will be available on request…..
Maira Gull
OBJECTIVE:
To work in a challenging and growing organization to make full use of capabilities and the professional skills to grow in hierarchy of organization.
PROFILE:Name: Maira Gull Father’s name: Khawaja Amjad Gull SikkaDate of birth: 25 jan,1988N.I.C # Religion: IslamMarital status: singleDomicile: fsdNationality: PakistanLanguage: UrduContact # Address: peoples colony no 1,fsd House #32-C
PROFESSIONAL QUALIFICATION:
MBA finance (to date)From: agriculture university of, Faisalabad Final semester
B.COM (2008)From: university of PunjabDivision: 1st
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I.COM (2006)From: B.I.S.EGrade: A
MATRIC (2004)From: B.I.S.EGrade: A
INTERESTS AND SKILLS:
Browsing Reading Web development Microsoft office XP
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