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EXPERT
(Organic Anti-aging Health Guard)
Business Plan
MBA (Reg) 4th SEMESTER
2010
DEPARTMENT OF BUSINESS MANAGEMENT SCIENCES
UNIVERSITY OF AGRICULTURE FAISALABAD
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ACKNOWLEDGEMENT
I pay my thanks to Almighty Allah the Most Merciful and Most Beneficent, who is
the entire source of knowledge and wisdom. The creator of this universe who gave
birth to human who gave us knowledge to explore the world that enables us to
complete our project successfully. The words are bound. Knowledge is limited and
time is short to express His dignity. He gives us the opportunity to get the knowledge
and we are not able for this. It is one of infinite blessings of Allah that he bestowed us
with the potential and ability to contribution towards the deep ocean of knowledge
already existing.
We also offer thank from the deeper core our heart to the Holy prophet HazratMuhammad (PBUH) who is forever a torch of guidance and knowledge for humanity
as a whole.
And now we would like to express our heartiest and sincerest words of thanks
to my worthy teacher Mr. Muzzamil Waheed Kamboh for their skillful guidance un
failing patience, inspiring attitude and invaluable suggestion to improve the script of
this report.
At the end it is necessary to pay thanks to our parents for that without their prayers.
We could not make all this possible.
Finally we cannot work without the help of the our department of business
management sciences, University of Agriculture Faisalabad.
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This Business Plan has been submitted in the partial fulfillment of MBA degree
requirement.
SUBMITTED TO,
SIR MUZZAMIL WAHEED
SUBMITTED BY,
NAMES Reg. #
Jamal Rasheed 2009-ag-95
Sohail Tariq 2009-ag-182Mujtaba Subhani 2007-ag-462
Umar Farooq 2009-ag-225
Hafeez Ullah Khan 2009-ag-207
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DEDICATION
This effort by me is dedicated to my beloved Parents who have done
much for me, what I do not even deserve. May God provide me the
opportunity to serve them as much as possible And also dedicated to my
Teachers who always guide me and give the chance to explore my vision
in practical life.
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TABLE OF CONTENTS
SR
#
CONTENTS PAGE #
1 Executive Summary 7
2 Vision, Mission, Statement and Objectives 8
3 Situation Analysis 9
4 Pest Analysis 10
5 Operational Flow Chart 12
6 Marketing Plan 13
6.1 Market Segmentation 14
6.2 Marketing Mix 156.3 Product, Price, Place, Promotion 16-26
7 Organizational Plan 28
7.1 Human Resource Plan 29
7.2 Organo-gram 29
7.3 Job Descriptions 30-32
8 Financial Plan 33
8.1 Start up Summary 34-35
8.2 Break even Analysis 36
8.3 Profit and Lose Statement 37
8.4 Balance Sheet 388.5 Monthly projected sale 40
EXECUTIVE SUMMARY
The Sewil is established at University of Agriculture Faisalabad. The product
which we provide to market is Natural form with the brand name because it is an
innovative idea and there is no competitor in the market. So we are the first to availthe opportunity.
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It is a partnership-oriented firm in which eight partners are involved. The total capital
is required to start the business is 12 million out of which 7 million is contributed by
the partners and the rest of capital is taken as a loan from a bank at 13%, Payable in
five years in equal installments.
Our future planning is to export our product to foreign countries. We are alsoplanning after ten years to make unrelated diversification. Out profits goes on
increasing ever year so we make best use of these cash flows to expand our product
line.
Our marketing goals are harmony with organization goals, customer satisfaction with
Natural products and be a innovative in market. We have segmented our market on
two basis; customer base and business base segmentation. In customer base
segmentation we used the segmentation tools like demographic, geographic,
psychographics, behavioristic. In business base segmentation we select the fast food
industry because they use Mushroom in their foods.
Our target customers are all demographics. Our positioning is to provide high quality,
hygienic product maintaining its features to our customers. In marketing mix we have
used the differentiation strategy.
We will pack our product in Syrups. As our focusing on high quality so we adopt the
premium strategy, which is high quality and high price.
We will use zero level and one level Distribution channel to promote our product we
will use both pull and push strategy. We will spend Rs.20000 to create awareness
about our product and to be successful in market.
VISION STATEMENT
Our aim to be the market leaders of Natural Industry of the Nation
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MISION STATEMENT
SEWILS mission is to provide high quality Antioxidant natural products, focused on
providing effective herbs, In do so SEWIL will meet customer expectation in terms of
leading technology, individual and company accountability, opportunity and growthof our employees and society.
Objectives:
The objectives for SEWIL LABORATRIES OF PAKISTAN are as follows:
Achieve sales goal of Rs.120,000/- during first year of operation.
Achieve a regular customer base of 10 companies.
Increase sales by 30% during the second year of operation.
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SITUATIONAL ANALYSIS
Strengths
First one to initiate this venture
Production cost is very low
Chance of becoming market leader
No Intermediary Available
No Direct Competitor
Strong Liaison with our loyal customers
Weakness:
Small Target Market
No Heavy Investment
Lack of Industry Information
Business Expansion
Opportunities:
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No Strong Competitors Environment.
Growing consumer concern regarding the manufacturing natural products.
Increased segmentation.
Threats:
Substitutes availability.
New Entrant.
No awareness for anti oxidant in our community.
PEST Analysis:
Political:
Political factors consist of laws, Govt. agencies and pressure groups, which
influence limit the company in competitive market. Company adopts all these
policies, which are according to law and trying to serve our customer in a better way.
Tax policies.
Environmental regulations.
Trade restrictions and tariffs.
Political stability.
Licensing issues.
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Economical:
As economic condition of people improves then they become more conscious
about their health. We can say that economy as such has no significant influence on
our business but the study of economy can help us in forecasting.
Social-o-culture
Culture is an important factor in understanding an industry, because for any
organization to operate effectively it must for some extent have a general set of
believe and assumptions on how culture will influence the productivity and the
success or failure of any company Social segment has major influence on our business
due to emerging health care trend. People are very much conscious about their health.
Technological:
The complexities of achieving business success through increased efficiency,
effectiveness and competitiveness, combined with innovative applications of modern
technology, has heightened the awareness of both Technology and business managers
towards more strategically oriented approaches for planning and management of any
industry. We have to develop effective R&D department for improvement of our
organization
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Honey,
Vinegar
Ginger
, Garlic
Lemon
PROCUREMEN
T(Collection of
Items)
PACKAGING
Production
processExtraction ofherbs
We get extracts
from the herbs
products
Sales
(Through
distribution
channel) Feed
BackResponse Center
Receives feedback
from customers
Syrups
Boxes,
cartons,
It Provides Physical
Protection & Labels AreAct As Information
transmission.
Operational Flow Chart
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Marketing Plan
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Marketing Plan:
Marketing goals:
Harmony with organizational goal
Market share up to 30% in next 5 years
Our first and foremost objective is to manage and integrate all the marketing
activities in our venture.
To get market share and enhance organizational revenue.
We want to enhance our business so that it prevail all over the country not
only Faisalabad.
To make our business image and reputation glow in the mind of our target
market as we are new and only in the market.
To create awareness among those who are unaware of our quality of various
kinds of services and products.
We want to get success in our business.
Market Segmentation:
Demographic:
The characteristics of human populations for purposes of social studies
Age: 10-45
Gender: male and female
Family size: 2 to more
Family life cycle: single and married
Income level: Rs. 10000 and above
Occupation: any kind of occupation
Education: educated and uneducated
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Geographic:
Geographic segmentation is about dividing the market into various
geographical units in relation of our customer.
Region: All areas of Faisalabad, Chiniot, Jaranwala, Samundari
and rural areas.
City: Faisalabad
Density: Mostly customer located in Faisalabad
Psychographics
Psychographic segment has demonstrated its use as a practical in
consumer market. Our target customers are health conscious, opinion leaders,
extroverts, opinion leader, and status conscious and early adopter.
Behavioral:
Our customer will be Moderate users of the Antioxidant.
MARKETING MIX:
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Product:
The product, service, or program includes both tangible and intangible
elements. The tangible, of course, are those things that the customer can see, touch,
feel, taste, or smell. The intangible include such things as the image of the offering ...
which includes the image of the organization making the offering, the psychological
aspects of pricing (high price to many customers is equated with high quality - and
vice versa). Product decisions include aspects such as function, appearance,
packaging, service, warranty labeling, etc.
Packaging:
Packaging can be defined as the activities of designing and producing the
whole packaging of your product. It is a means by which you communicate your
positioning statement and product information to the consumer. Many marketing
experts consider packaging to be the fifth P in the product mix of product, price,
place, and promotion. Packaging is your silent salesperson, make it clear, concise,and appealing.
Labeling:
Labels must convey the necessary information and remain visually pleasing.
Labels must be accurate. They should not mislead the customers or fail to include
pertinent information.
Distribution Strategy:
We will use one level distribution strategy.
Manufacturer_______________ Retailer ______________ consumer
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Promotion Strategy:
To sell our offering are we will effectively promote and advertise it. There are two
basic promotion strategies, PUSH and PULL.
BY PUSH STRATEGY: well be able to maximize the use of all available
channels of distribution to "push" the offering into the marketplace. For this we
require providing generous discounts to achieve the objective of giving the
channels incentive to promote the offering, thus minimizing our need for
advertising.
BY PULL STRATEGY: well have direct interface with the end user of the
offering. We are minimizing the use of channels of distribution during the first
stages of promotion and a major commitment to advertising is required. The
objective is to "pull" the prospects into the various channel outlets creating a
demand the channels cannot ignore.
Price:
In initial stages of marketing entrance we will adopt skimming strategy to
maximize our profit margins. As we are offering innovative organic product, which
currently doesnt hold any competitors in this current industry. We hold the existence
on account of expandable and flexible organization that keeps on innovating the
industry with natural advantageous edible products.
Our offering has enough differentiation to justify a high price and desire for quick
cash and have minimal desires for significant market penetration and control, and then
set your prices high. Such pricing strategy which refers to skimming pricing strategy
helps to generate market value with brand recognition of quality oriented products and
an organization with virtues of high quality services and delivery
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ORGANIZATIONAL
PLAN:18
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Human Resource Plan:
Organo-grame
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Employees of the organization:
o CEO
o Vice President
o 1 Finance manager
VICE
PRESIDENT
PRODUCTION
& QUALITY
MANAGER
HR
MANAGER
MARKETIIN
GMANAGER
MANAGER
SALES
Clerical staff-
ACCOUNTANTS,
TYPIST, CLERKS
& ASSISTANTS
R&D
MANAGER
CHIEF
EXECUTIVE
OFFICER
FINANCE
MANAGER
IT
MANAGER
Non-Clerical staff:
GURADS,
MESSENGERS
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o 1 HR manager
o 1 Sales manager
o 1 Marketing manager
o 1 R&D Manager
o 1 Production & Quality Manager
o 1 IT Manager
o 5 Salesmen
o 1 Cost Accountant
o 2 Drivers
o 2 Guards
o 2 Sweepers
o 12 Labors
o 2 Peon
Total Employees= 35
Job Description:-
C.E.O:
MR. Hafeez ullha khan will have the higher authority.
Education:-
M.B.A from University of Agriculture, Faisalabad
Salary:-
As every partner gets
Duties:-
To deal with all kinds of issue
strong connection between the employees of a company and its
board of directors
Use their management team as advisers and to assist in planning
the company's future. It's up to the CEO is make final decisions on
the company and how to keep it profitable
Create an efficient, positive environment for all employees
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Set a budget for the company and investment planning
G.M:-
Mr. Jamal Rashid will have the authority of G.MEducation:-
M.B.A from University of Agriculture, Faisalabad
Salary:-
As every partner gets
Duties:
Develop an annual operating budget
Develop the strategic vision for the Companys Establish the technology platform and tools required for
Employees
Marketing Manager:
Mr. Sohail Tariq will be the manager of Marketing
Education:
M.B.A (Marketing) From University of Agriculture, Faisalabad
Salary:
As every partner gets
Duties:
Responsible for planning and executing marketing initiatives
Build awareness and drive business growth
Working with other sales, marketing and business development
Share knowledge of competitors and their offerings and use it to
develop targeted marketing plans and communications.
C.F.O:
Mr. Faisla Shakor will be working as CFO
Education:
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M.B.A (finance) From University of Agriculture, Faisalabad
Salary:
As every partner gets
Duties:-
Prepares financial reports and presents findings and
recommendations to senior management as requested.
Protects the company's interest in relation to expenditure of
restricted funds,
Prepares and/or reviews the annual tax reports and government
Maintains appropriate licensure for pet care center as needed
H.R.M:-
Mr. Mujtaba Subhani will lead the H.R department of Pet care
Education:
M.B.A (H.R.M) From University of Agriculture, Faisalabad
Salary:
As every partner gets
Duties:-
o Work with all employees issues such as progressive discipline, leaves
of absence
o Recruiting
o Training
o Compensation
o Benefits
I.T MANGER
Mr. Rana Waqas Ahmed will lead the I.T department.
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Education:
M.B.A (IT) From University ofAgriculture, Faisalabad
Salary
As every par
Duties:-
Maintain I.T structure
Preparing reports
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Financial Plan
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Start-up Summary:
The start-up expense for the SEWIL LABORATRIES OF PAKISTAN is
focused primarily on production of Herbal products All share holders will invest
Rs.1,200, 000. In addition, they will get Rs.300, 000 as loan.
Start-up Requirements
Start-up Expenses
Preliminary Expenses Rs.41,600
Start-up Assets
Cash Required Rs.148,400
Start-up Inventory Rs.610,000
Other Current Assets Rs.50,000
Long-term Assets Rs.650,000
Total Assets Rs.1500,000
Total Requirements Rs.1500,000
.
Break-Even Analysis
Break Even Sales = [Fixed Cost / 1 (Variable Cost / Sales)]
Break Even Point = [741,600 / 1 (50 / 100)]
= 741,600 / 1 0.2
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= 741,600 / 0.8
= Rs: 927,000
Profit & Loss Statement
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales Rs.1,200,000 Rs.1,500,000 Rs.2,000,000
Direct Cost of Production &
Sales600,000 750,000 900,000
Total Cost of Sales 600,000 750,000 900,000
Gross Profit 600,000 750,000 1,100,000
Gross Margin % 50.00% 50.00% 55.00%
Expenses
Selling & Distribution
Expenses270,000 344,050 503,550
Others 6,500 8,800 10,100
Total Operating Expenses 276,500 352,850 513,650
Profit Before Interest and
Taxes323,500 397,150 586,350
Interest Expense 14,000 12,050 13,100
Taxes Incurred 9,500 10,100 Rs.13,250
Net Profit 300,000 375,000 560,000
Net Profit/Sales 25% 25% 28%
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Balance Sheet
Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash 148,400 200,300 225,025
Accounts Receivable 355,000 465,000 540,000
Inventory 541,600 302,200 188,525
Other Current Assets 5,000 7,500 7,900
Total Current Assets 1,050,000 975,000 961,450
Total Long-term Assets 750,000 750,000 820,000
Total Assets 1,800,000 1,725,000 1,781,450
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities - 30,000 45,100
Long-term Liabilities 300,000 320,000 350,000
Total Liabilities 300,000 350,000 395,100
Paid-in Capital 1,200,000 1,200,000 1,200,000
Retained Earnings 300,000 175,000 186,350
Capital 1,200,000 1,375,000 1,386,350
Total Liabilities & Capital 1,800,000 1,725,000 1,781,450
Dividends
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In first year, dividend will not be paid and all the profits will be
reinvested.
In preceding year, dividend of Rs: 25,000 to each partner will be paid.
Total of Rs: 400,000 dividend will be paid at the end of third year ofoperations.
Cash Flow Statement
Cash Flow StatementFor the year Ended_________.
Cash Receipts year 1 year 2 year 3Sales Rs.1,200,000 Rs.1,500,000 Rs.2,000,000
Loans Rs.300,000 Rs.320,000 Rs.350,000
Investments - - -
Total Receipts Rs.1,500,000 Rs.1,820,000 Rs.2,350,000
Disbursements
Salaries Rs.180,000 Rs. 188,000 Rs. 205,000
Advertising Rs. 50,000 Rs. 55,000 Rs. 62,000
Insurance Rs. 13,000 Rs. 15,000 Rs. 21,000
Other Rs. 6,000 Rs. 6,200 Rs, 6,550
Total Disbursements Rs. 249,000 Rs. 320,000 Rs. 294,550
Net Receipts (Disbursements)Rs.
1,251,000
Rs.
1,500,000
Rs.
2,055,450
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