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Chapter 1Business Strategy

A business strategy is the means by which it sets out to achieve its desired ends (objectives). It can simply be described as a long-term business planning. Typically a business strategy will cover a period of about 3-5 years (sometimes even longer).A business strategy is concerned with major resource issues e.g. raising the finance to build a new factory or plant. Strategies are also concerned with deciding on what products to allocate major resources.Strategies are concerned with the scope of a business' activities i.e. what and where they produce.Two main categories of strategies can be identified:1. Generic (general) strategies, and2. Competitive strategies.The main types of generic strategies that organisations can pursue are:1. Growth i.e. the expansion of the company to purchase new assets, including new businesses, and to develop new products. The Inland Revenue has expanded from being just a tax collector, to other functions such as collecting student loan repayments and paying tax credits.2. Internationalization/globalization i.e. moving operations into more and more countries.3. Retrenchment involves cutting back to focus on your best lines. The Americans refer to this as 'sticking to the knitting'.

Chapter 2 Description of Venture

The business definition framework by Derek F. Abell proposes that a business can be defined by using three dimensions: customer groups (who we're going to serve), customer needs (what customer need we're attempting to meet), and technology or distinctive competencies (how we're going to meet that need). This approach strongly stresses understanding customers and not on an industry and its products or services. Based on these three dimensions, Abell's competitive strategy classification scheme proposed that a business could be defined by its competitive scope (broad or narrow) and by the extent of competitive differentiation of its product/service offerings.

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Based on the Abells framework we have defined our business by answering the three core questions-

Question 1: Who are our customers?

Answer:Our prime customers are the poor people who live bottom of the pyramid. In our surveys and observations, we have seen that they have many problems around themselves and clothing is one of them. For their everyday lives they need several things like clothes, papers, tableware, cup, glass, napkins, tissue papers etc. In fact they need all of them in a lower cost. As our customers income level is lower than the average, we will try to provide them their daily products at a reasonable price.Apart from that, we will also serve in the mass market for the common people where we will have fashionable jeans, shirts, jackets, shoes and winter wears. We will charge a premium price for those premium products.

Question 2: What is their need?

Answer:As most of our prime customers live below the poverty line, their major need is cheap and durable products. We have seen that they have many problems around themselves and clothing is one of them. For their everyday lives they need several things like clothes, papers, tableware, cup, glass, napkins, tissue papers etc. In fact they need all of them in a lower cost. As our customers income level is lower than the average, their need is very small. All they want is to save some money from the daily expenses. Our venture will help them to get those products along with some savings.

Question 3: How our organization is going to serve that need? (Our Distinctive Competencies)

Answer:We will create superior customer value providing good quality products. As we use a raw material called Bagasse, the fibrous matter that remains after sugarcane or sorghum stalks are crushed to extract their juice, we will have the cost leadership.

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We can produce those products at a minimum cost. It can be a relief for those poor people. As we have the cost leadership, we will be able to reduce the retail price and make them available and to the reach of the poor people. So it is feasible and economically sustainable and we will be able to get the traditional market as well. Our products are environmentally friendly. So there is no risk factors involved.

Chapter 3Products Overview:

3.1 Compostable Tableware Made from 100% sugarcane 100% biodegradable 120 degree oil and 100 degree water proof Microwave safe

3.2 Biodegradable Tableware Made from 100% sugarcane 100% biodegradable 120 degree oil and 100 degree water resistant Can be used in microwave and refrigerator Variety of sizes, shapes and uses available Healthy, Nontoxic, Harmless and Sanitary Can be recycled and protect the resource From nature and back to nature

3.3 Paper Cup with Handle Heat resistant Different sizes and paper weight are available Can be printed according to customers' requests Good paper quality Mainly exported to Japan, Europe and USA Suitable for hot drinking, such as coffee

3.4 Disposable Tableware 100% natural fiber pulp, non-toxic, healthy and sanitary to use.

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No toxic substance or odor is released even in high temperate or in acid/alkali condition; 100% food contact safety.

Safe to be used in microware, oven and refrigerator. 100% biodegradable within two months; wastes will decompose into

CO2 and water; waste can be burned, buried, or composted. Recyclable; renewable; reuse to make paper; reduce the need for

petroleum-based material. 120C hot oil and 100C hot water resistant. Stackable; easy to separate; smooth and strong; leak proof; edge

trimming can be omitted for auto lines. More than 200 items are for your selection; customized moulds are

available per marketing requirements

3.5 Bagasse Plate Sizes are available from 6 inch to 10 inch 100% natural fiber pulp, non-toxic, healthy and sanitary to use. No toxic substance or odor is released even in high temperate or in

acid/alkali condition; 100% food contact safety Safe to be used in microware, oven and refrigerator 100% biodegradable within two months; wastes will decompose into

CO2 and water; waste can be burned, buried, or composted Recyclable; renewable; reuse to make paper; reduce the need for

petroleum-based material 120C hot oil and 100C hot water resistant Stackable ; easy to separate; smooth and strong; leak proof; edge

trimming can be omitted for auto lines More than 200 items are for your selection; customized moulds are

available per marketing requirements

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3.6 Boards It can also be used for making boards resembles like Plywood or

Particle board It has wide usage for making partitions, furniture etc. It is eco friendly method as it does not involve any harm to the

timbers in the world, like plywood. It is known as Bagasse Board It is a good substitute for plywood.

3.7 Sugarcane Denim FabricSugar Cane Jeans are constructed of fibers derived from the plant Sugar Cane. Sugar is made from sugar cane, which seems simple enough, but not everyone knows that sugar cane and its byproducts contain essential amino acids and enzymes necessary to fuel and rejuvenate our bodies. Likewise, byproducts from sugar cane are used to fuel automobiles in Brazil in order to have a less harmful impact on the environment rather than found in burned fuels of a purely fossil origin. Following these facts in a rather philosophical approach, the textile specialists at Sugar Cane were the first in the world to produce a selvage denim fabric made from woven cotton yarns and sugar cane fibers.

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Chapter 4Office Equipment and Personnel

4.1 Building and Equipments

We will buy a land in Thakurgaon andthere, sugar fiber is available at a large scale from local sugar mill. We will establish a manufacturing unit covering acre) areas.

4.2 Furniture

Furniture includes objects such as tables, chairs, desks, fusually kept in a house or other building to make it suitable or comfortable for

Office Equipment and Personnel

Building and Equipments

in Thakurgaon and establish our main industry , sugar fiber is available at a large scale from local sugar mill. We will

establish a manufacturing unit covering 14 Katha (10,080 square feet, or 0.2314

ts such as tables, chairs, desks, fire proof file cabinetsusually kept in a house or other building to make it suitable or comfortable for

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industry there. Over , sugar fiber is available at a large scale from local sugar mill. We will

atha (10,080 square feet, or 0.2314

le cabinets etc. usually kept in a house or other building to make it suitable or comfortable for

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living or working in. We are using metal and wooden furniture. In all the office rooms or cubicles we are putting green plants and other small decorations.

4.3 Generator

In electricity generation, an electric generator is a device that converts mechanical energy to electrical energy. The reverse conversion of electrical energy into mechanical energy is done by a motor; motors and generators have many similarities. We are using electric generator of 400 KVa as a backup service which will give us 24 hours.

4.4 Transport

We will hire 2 Microbus and 2 vans to transport our employees and carrying raw materials. These vehicles will also be used to take our office employees and for other official use. The vans will be used to carry the Bagasse from nearby sugar mills. All of those transports will be leased.

4.5 Personnel

We will have around 50 workers at the beginning and around 12 officials. Workers will be appointed considering their merit and skill and local workers will get the preference. We will try to have at least 10 experienced workers who can train others for a short period of time. On the other hand we will need some officials to run the operation starting from the floor supervisor to the managers. We will need marketing, sales, finance, production, accounting and HR personnel to run the organization. We will also need 5-6 security guards as well.

4.6 Background of Entrepreneurs:

This is a Type I social business company. The business will be primarily financed by venture capitalists (hypothetical).The name and designation are:

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Name Designation

Farzana Islam & Shamiul Haque Director - Planning & Operation-Production

Md. Golam Ahasan Director - Marketing & Sales

MD. Saiful Islam Sourav Director Finance

Md Atiqur Rahman Director - HRM & ITTable 1

Chapter5Industry Life Cycle

Industry Life Cycle refers to a concept relating to the different stages an industry will go through, from the first product entry to its eventual decline. There are typically four stages in the industry lifecycle. They are defined as:

5.1 Introduction or Fragmentation Stage

Fragmentation is the first stage of the new industry. This is the stage when the new industry develops the business. At this stage, the new industry normally arises when an entrepreneur overcomes the twin problems of innovation and invention, and works out how to bring the new products or services into the market. Product innovation declines, process innovation begins and a "dominant design" will arrive.

5.2 Growth Stage

Growth is the second stage of the industry lifecycle. It is the stage at which a new industry emerges. During this stage, competitors start to realize business opportunities in the emerging industry. The value of the industry also quickly rises. Economies of scale are achieved, forcing smaller players to be acquired or exit altogether. Barriers to entry become very high, as large-scale consolidation occurs.

5.3 Maturity Stage

Maturity is the third stage in the industry lifecycle. Maturity is a stage at which the efficiencies of the dominant business model give these organizations competitive advantage over competition. The competition in the industry is rather aggressive because there are many competitors and product substitutes. Price, competition,

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and cooperation take on a complex form. Some companies may shift some of the production overseas in order to gain competitive advantage. Growth is no longer the main focus; market share and cash flow become the primary goals of the companies left in the space.

5.5 Decline Stage

Decline is the final stage of the industry lifecycle. Decline is a stage during which a war of slow destruction between businesses may develop and those with heavy bureaucracies may fail. In addition, the demand in the market may be fully satisfied or suppliers may be running out. In the stage of decline, some companies may leave the industry if there is no demand for the products or services they provide, or they may develop new products or services that meet the demand in the market. In such cases, this will create a new industry.

Now, analyzing the industry, we have come to conclusion that the industry in is stillin its introduction stage or right at beginning of the growth stage. Currently, competition is not so high. In Bangladesh there are not any cloths, and tissue producers in the market who is for social business. As it is a social business we have not got any competitor though it will increase in near future. Capital intensity

Table 2

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is also moderate as well. Economies of service differentiation can be achieved in this stage. Currently, people are interested to join in social business. They are coming with innovative ideas. More & more companies are trying to come up with something. So, there is an opportunity for grabbing a large share in this market if planned & promoted effectively.

5.6 Analysis of Competitors

In Bangladesh there are no social businesses regarding the sugar fiber can. As we produce cloths, bed cover and tissues and other materials, our main competitor will be the company of every single product. But as we are doing social business, our organizational motive is different. We are not for profit maximization purpose. But while selling the products we have to consider how other profit maximization companies are setting up their prices. We have to set much less price than them.

List of current companies Bashundhara tissue Bangla Tissue Garments industry ( if they are interested in social business )

Though all of them are doing business for profit maximization, as a new company we can consider themselves as our competitors because we are also making profit. But as time goes by, we can easily establish a monopoly in the social business market.

Chapter 6Marketing Strategy

6.1 Market Segmentation:

In our market definition we included all the poor people of Bangladesh who has the least chance to use our product. Slum people, Village people, rural areas, Garments workers, are our main target customer. In Bangladesh we can see different income people. But we have selected 5 income level people from the bottom of income level

Upper class

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Upper Middle class Middle class Lower Middle class Lower class

To help them to make their living standard better is our main purpose through providing quality product in cheap price. Slum people are our main customer.Because their living standard is below the poverty line, they are not conscious about the modern life. They do not have quality cloths or good sanitation system. As we are producing tissue we want to make them used to with toilet tissue. We have also targeted poor businessmen who can buy plastic container from us for their business purpose like chotpoti seller, biriyani seller etc.

6.2 Target location:

There are different people who can take our products. They are: Slum areas Rural areas Village areas

6.3 Size of the organization:

This is one of the most practical and easily identifiable criteria. It can also be good rough indicator of the potential business for a company. However, it needs to be combined with other factors to draw a realistic picture.

Companies with less than 50 employees Companies with 50 200 employees Companies with over 200 employees.

Chapter 7 PESTEL Analysis

P E S T E L analysis is generally referred while evaluating an industry analysis in any country. It deals with the six factors of the country, where any specific industry is operating its business. Moreover, it highlights the effects of the four factors on the industry & its business. The 6 alphabets in the word P E S T E L have 6 meanings according to its abbreviation. They are:

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Political Analysis Economic Analysis Social Analysis Technological Analysis Environmental Analysis Legal Analysis

7.1 Political Analysis

The government has very lengthy policies regarding opening of a new venture. Since our venture is a completely new entrepreneurial effort, the procedures may become even tougher.

So far, according to the context of local market, there is no pressure of political groups for our business plan. The local community groups are also interested about this new venture. But for expansions, we might have to face a lot of pressure.

Political instability, which is not very uncommon in Bangladesh, may restrict new companies to open their business, so the future market potential is quite low.

The government policy regarding the business like IT, software firms are very much relaxed. So we might have the upper hand here.

7.2 Economic Analysis

Bangladesh is considered as a developing economy which has recorded GDP growth above 5% during the last few years. Although three fifths of Bangladeshis are employed in the agriculture sector, three quarters of exports revenues come from garment industry. The biggest obstacles to sustainable development in Bangladesh are overpopulation, poor infrastructure, corruption, political instability and a slow implementation of economic reforms.

So far, its good. Day by day, standard of living is being degraded. Urban people are getting less involved into a high standard living. The GDP growth (annual %) in Bangladesh was reported at 6.19 in 2008, according to the World Bank. Annual percentage growth rate of GDP at market prices based on constant local currency. Local & rural businesses are increasing.

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Peoples buying power in our country is increasing day by day. People are becoming more techno friendly and laid back. So current market trend is very good for this business & this trend will continue at least 5-6 years. After that, with the change of time, market pattern may also change. Services value added (annual % growth) in Bangladesh was reported at 6.49 in 2008, according to the World Bank. Annual growth rate for value added in services based on constant local currency. Aggregates are based on constant 2000 U.S. dollars. Services correspond to ISIC divisions 50-99. They include value added in wholesale and retail trade in hotels and restaurants, transport, and government, financial, professional, and personal services such as education, health care, and real estate services. Also included are imputed bank service charges, import duties, and any statistical discrepancies noted by national compilers as well as discrepancies arising from rescaling. But the IT sector is still pretty much relaxed.

Peoples purchasing power is increasing. The number of upper & upper-middle class families is also increasing. The Household final consumption expenditure; etc. (annual % growth) in Bangladesh was reported at 5.21 in 2008, according to the World Bank. Annual percentage growth of household final consumption expenditure is based on constant local currency. Aggregates are based on constant 2000 U.S. dollars. We are observing a steady increasing rate in the household and office expenditure over the past 7-8 years even with presence of inflation. This indicates the purchasing power of the customers is increasing.

7.3 Social Analysis

lifestyle trends:Bangladesh is a country where the social principles are strictly followed and the entire social structure is driven by norms. But, the Bangladeshi people are not stubborn in terms of social culture; rather they humbly accept things which are new and socially accepted. The Bangladeshi people are also very much social and they have the urge to know what is happening around. Therefore, there is a potential demand for any business related to social cause

Demographics:Bangladesh is ethnically homogeneous. Indeed, its name derives from the Bengali ethno-linguistic group, which comprises 98% of the population. In

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2009 the population was estimated at 156 million. Religiously, about 90% of Bangladeshis are Muslims and the remainder is mostly Hindus.

Consumer attitudes and opinions:Bangladeshi people are always up for anything new. They humbly accept things which are unique and socially accepted. Day by day people in here are becoming more conscious about IT and modern technology. Their standard of living has increased and buying power as well which eventually enables them for more luxury and comfort. So, we have a very good opportunity to all our business.

Consumer views:In Bangladesh poor people look for cheap product with highest quality they can get. Whenever there is product, with their expectation is welcomed by people.

consumer buying patterns:Purchasing power of Bangladeshi people is increasing day by day. Now a days the purchase of modern tools like

Advertising and publicity:Advertising & publicity is now becoming a major part of the corporate world of Bangladesh. So, in this area we have a very good chance for our new venture, as the cost of promotional activities are also decreasing everyday because almost every company is doing some sort of promotions all the time.

7.4 Technological Analysis

Today in the world of business especially media & communications technological change is very drastic. It is both good and bad for us. Good in a sense that in some times by acquiring new technologies we are able to give better quality & service. In this sector of social business, different technological solutions are not available in a very short time. So sometimes it increases the cost of investing.

7.5 Environmental Analysis

Environmental factors include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries like

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social business. Bangladesh is a humid country. So the life of the electronics and other tech devices are quite short here. For networking we have to put the best quality materials to make it more sustainable. For the environmental issue, our cost might go a little higher.

7.6 Legal Analysis In home market, currently, its a bit tougher to get the trade license of a new

venture. Sometimes, the law demands previous connection with this trade. That is a disadvantage for the fresh entrepreneurs.

The consumer laws are not that strict in Bangladesh. Health and safety laws must be followed as we are planning to serve big companies.

Chapter 8Porter's Five Forces Analysis

Porter's five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market.

The five Forces are described here:

8.1 Threat of New Entrants

There are high possibilities of new entrants to enter this service sector as it is an attractive area for investment for corporate people. If any other new social business idea come to the market and do their positioning successfully, then our company may loss its attractiveness. Besides, it is a social service type business, so new competitors have the chance to enter the market quite easily without debt financing. And there are many venture capitalists who are interested in investing in new business. As the establishment and marketing cost are very high, it will take time for the new competitors to break-even.

So we can say that threat of new entrants is moderately high.

Table 3

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8.2 Bargaining power of Customers (Buyers)

If Buyers get the quality product in less than market price, they always look for that product. In that case bargaining power is not there for customers.

Bargaining power of the buyer is moderately low in the industry.

8.3 Bargaining power of suppliers

Suppliers play a vital role in our project. In Bangladesh the market is dominated by a few large suppliers rather than a fragmented source of supply but competition is increasing in this industry as a result suppliers bargaining power is decreasing day by day. Sometimes there are some other problems among suppliers such unfair practices of supplies. But still it is a very good market for suppliers as the demand is increasing day by day, because they have plenty of orders of supplies.

8.4 Threat of substitutes

As the industry is new, the threat of substitute is considerably low. If there is a substitute, they have to compete with us maximum lower price. Other than social business people are not interested in investing money in social cause. But if in future other companies come up with new ideas for social business and if their product becomes our substitute it will create problem in future. But in present time substitute threats are low. Our main focus is on providing provide which gives better quality service. As the switching cost is very high, customers are less likely to go for substitutes. There are no established companies right now. If we can make ourselves able to attract customers and differentiate our product and service from the competitors, then it will create a huge advantage in our project.

It is fairly easy to establish in the market as there is no strong existence of substitutes.

8.5 Competitive rivalry between existing players

This force describes the intensity of competition between existing players (companies) in an industry. There are merely any existing competitors to challenge our business. So the intensity of competitive rivalry is very low presently

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Chapter 9Marketing Plan

Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. It generates the strategy that underlies sales techniques, business communication, and business developments.

For effective marketing and sales strategy we have used marketing mix strategy or the 7P. Which are:

Product Price Promotion Place Physical condition Process People

We tried our best to implement 7p strategy in our whole marketing plan.

9.1 Mission Statement:

Provide best quality products to change the lifestyle

9.2 Vision:

Within next five years we want to become one of the biggest contributors in social business market

9.3 Message:

We have developed a message for our customers. Our message to our customers will be:

Go Green, Go Sweet

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9.4 Products:

1. Compostable Tableware Made from 100% sugarcane 100% biodegradable 120 degree oil and 100 degree water proof Microwave safe

2. Biodegradable Tableware Made from 100% sugarcane 100% biodegradable 120 degree oil and 100 degree water resistant Can be used in microwave and refrigerator Variety of sizes, shapes and uses available Healthy, Nontoxic, Harmless and Sanitary Can be recycled and protect the resource From nature and back to nature

3. Paper Cup with Handle Heat resistant Different sizes and paper weight are available Can be printed according to customers' requests Good paper quality Mainly exported to Japan, Europe and USA Suitable for hot drinking, such as coffee

4. Disposable Tableware 100% natural fiber pulp, non-toxic, healthy and sanitary to use. No toxic substance or odor is released even in high temperate or in

acid/alkali condition; 100% food contact safety. Safe to be used in microware, oven and refrigerator. 100% biodegradable within two months; wastes will decompose into

CO2 and water; waste can be burned, buried, or composted. Recyclable; renewable; reuse to make paper; reduce the need for

petroleum-based material. 120C hot oil and 100C hot water resistant.

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Stackable; easy to separate; smooth and strong; leak proof; edge tri9.mming can be omitted for auto lines.

More than 200 items are for your selection; customized moulds are available per marketing requirements

5. Bagasse Plate Sizes are available from 6 inch to 10 inch 100% natural fiber pulp, non-toxic, healthy and sanitary to use. No toxic substance or odor is released even in high temperate or in

acid/alkali condition; 100% food contact safety Safe to be used in microware, oven and refrigerator 100% biodegradable within two months; wastes will decompose into

CO2 and water; waste can be burned, buried, or composted Recyclable; renewable; reuse to make paper; reduce the need for

petroleum-based material 120C hot oil and 100C hot water resistant Stackable ; easy to separate; smooth and strong; leak proof; edge

trimming can be omitted for auto lines More than 200 items are for your selection; customized moulds are

available per marketing requirements

6. Boards It can also be used for making boards resembles like Plywood or

Particle board It has wide usage for making partitions, furniture etc. It is eco friendly method as it does not involve any harm to the

timbers in the world, like plywood. It is known as Bagasse Board It is a good substitute for plywood.

7. Sugarcane Denim FabricSugar Cane Jeans are constructed of fibers derived from the plant Sugar Cane. Sugar is made from sugar cane, which seems simple enough, but not everyone knows that sugar cane and its byproducts contain essential amino acids and enzymes necessary to fuel and rejuvenate our bodies. Likewise, byproducts from sugar cane are used to fuel automobiles in Brazil in order to have a less harmful impact on the environment rather than found in burned fuels of a purely fossil origin. Following these facts in a rather philosophical approach, the textile specialists at Sugar Cane were the first in the world to

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produce a selvage denim fabric made from woven cotton yarns and sugar cane fibers.

9.5 Pricing method:

9.6 Cost plus Pricing

When an ad is placed in a media and the cost incurred, the company usually adds certain markup (usually 15%, although it may vary according to circumstances) to the cost. Then the resultant figure is presented to the client as Bill. This is a recognized practice in the industry.As a part of cost plus pricing, the company will need to use markup mainly for two reasons:

1. More profit2. Safety net markup (in advertising, extra costs are always incurred, so

markup acts as a guard for the uncertainties and extra costs)

Sometimes it will be feasible to include an added margin to the cost in addition to the usual 15% company commission because many of the clients want a bargain. Sometimes, the clients ask for deduction from the total bill. The managed service provider will need to identify these clients and include "the added margin" in the cost amount of the bill drawn upon them. When they will ask for more reduction, the company will be able to bring their price down to the actual level. This strategy will ensure the profit growth of the company. As mentioned earlier, this is applicable for bills drawn upon some of the clients who have a tendency to bargain. However, some clients will never bargain on pricing so the company will not feel the need to offer an inflated bill to them.

9.7Value-based PricingIn most cases, the company will not compromise on its 15% company commission rate because it knows that do that will not be able to provide the quality of IT service.

3) Relationship Pricing

Although the company norm is to charge 15% as the company commission, the proposed company, in rare cases, will charge less for the bigger clients based on the considerations of future potential profit streams over lifetime of clients.

9.8 Promotion:

As we introduced new social business concept, we are having a small number of potential competitors. The target market of our company is medium and lower class people. The promotional plan of our company will let the customers know about its existence, features, quality, service, location, offers and other necessary information which the customers would like to know. Besides, the promotional activities would also help them decide why they would choose our products among the others and it might create a latent demand. The pof:

9.10 Advertising:

Advertising is a non personal medium of promotional plan. It will involve mass media like television, radio, communicating with large audiences, advertising in different media vehicles can be used to create a brand image and symbolic appeal for our company. Most people regard advertising as the ads and commerday. It is the buying, selling and planning of the advertising media that account for the major portion of the typical advertising budget. With most of the money in an advertising budget going to media advertising insertions, continue paying attention to media

Advertising

Internet marketing

Public Relation

As we introduced new social business concept, we are having a small number of potential competitors. The target market of our company is medium and lower class people. The promotional plan of our company will let the customers know about its existence, features, quality, service, location, offers and other necessary information which the customers would like to know. Besides, the promotional activities would also help them decide why they would choose our products among

d it might create a latent demand. The promotional mix would consist

Table 4

Advertising is a non personal medium of promotional plan. It will involve mass media like television, radio, news paper etc. Being a very cost-effective method for communicating with large audiences, advertising in different media vehicles can be used to create a brand image and symbolic appeal for our company. Most people regard advertising as the ads and commercials they read and see every day. It is the buying, selling and planning of the advertising media that account for the major portion of the typical advertising budget. With most of the money in an advertising budget going to media advertising insertions, the agency will need to continue paying attention to media-planning function.

Advertising

Internet marketing

Public Relation

Direct marketing

sales promotion

Personal Selling

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As we introduced new social business concept, we are having a small number of potential competitors. The target market of our company is medium and lower class people. The promotional plan of our company will let the customers know about its existence, features, quality, service, location, offers and other necessary information which the customers would like to know. Besides, the promotional activities would also help them decide why they would choose our products among

romotional mix would consist

Advertising is a non personal medium of promotional plan. It will involve mass effective method for

communicating with large audiences, advertising in different media vehicles can be used to create a brand image and symbolic appeal for our company. Most

cials they read and see every day. It is the buying, selling and planning of the advertising media that account for the major portion of the typical advertising budget. With most of the money in an

the agency will need to

Direct marketing

sales promotion

Personal Selling

To prepare itself as a consolidated media planner for its clients, the agency will need a clear understanding of media tools and the most of efficient way of utilizing them.We promote our company by giving advertise on newspaper, magazine and radio.

The media mix for Manage service provider would be

To prepare itself as a consolidated media planner for its clients, the agency will need a clear understanding of media tools and the most of efficient way of utilizing

romote our company by giving advertise on newspaper, magazine and radio.

The media mix for Manage service provider would be-

Table 5

Radio

News Paper

Magazines

Out of the Home: Billboards

Sponsorship

Managing Events

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To prepare itself as a consolidated media planner for its clients, the agency will need a clear understanding of media tools and the most of efficient way of utilizing

romote our company by giving advertise on newspaper, magazine and radio.

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Television:

Television is an important medium to reach a huge amount of customers. Television ads would attract viewers attention. As our target market is lower middle class and lower class people. Still we are not using television because of:

Budget constrain The target market is not focused with TVC The goal is not attainable with this media.

Pros:1. Television is an extremely creative and flexible medium. Virtually any product

message can be adapted to TV.2. Network television is the primary vehicle for reaching mass audiences.3. Television offers advertisers prestige lacking in most other media.

Cons:1. The television message is perishable and easily forgotten without expensive

repetition.2. Advertising costs continue to increase. This had led to more and shorter

messages, which contribute to commercial clutter.

Newspapers:

Printed ads in daily news papers would also enhance customers awareness about our product. Colorful yet classy ads simply describing our products and its features, occasionally mentioning the lucrative offers and announcements would create much awareness. Besides, reviews and features about our product in newspaper would be a very good idea about customer awareness.

Media Vehicle Sections

Prothom Alo

For ads: First Page bottom-right section, Last Page Top section, Cholti-bisso, Projonmo dot com second last page, etc.For Reviews: Naksha (including 2 whole pages).

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Bangladesh Protidin

Editorial page, Life style section, first page bottom section, last page etc.

For Review: Binodon Page, Sports page etc.

Table 6

Pros:1. Newspapers have wide exposure to a general population.2. Newspaper advertising is extremely flexible, with opportunities for color, large

and small space ads, timely insertion schedules, and some selectivity through special sections and targeted editions.

3. Newspapers reach their audiences at the convenience of the reader.

Cons:1. The average person spends less than 30 minutes reading a newspaper.

Consequently, most ads go unread.2. Teenagers and young adults do not demonstrate high newspaper readership.3. Advertising costs have risen much more sharply than circulation in recent

years.

Radio:

Now a days radio is one of the most popular medium of entertainment. When people are on their way to work or other destinations, they listen to radio. So we should follow the timings like 8.30-10.30am and 5.00-7.00 pm. It will also follow the TVC timing

Media Vehicle Program

Radio FoortiHello Dhaka, Tea Stall,

Dhaka Calling etc.

Radio TodayMorning and evening

programs.

Bangladesh BetarChayachoder Gaan, Afternoon program,

Night program

Table 7

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Pros:1. Radio can more selectively target an audience segment than virtually any other

medium, especially teens.2. Radio goes with listeners into the marketplace, giving advertisers proximity to

the sale. 3. Radio, with its relatively low cost for production and immediacy, can react

quickly to changing market conditions.

Cons:1. Without a visual component, listeners often use radio as background rather

than paying full attention.2. The low average audience of most radio stations requires high frequency to

achieve acceptable reach and frequency.3. Adequate audience research is not always available, especially in medium and

smaller radio markets.

Magazines:A lot of people are regular magazine readers. So placing ads on magazines would make them exposed to our service. Such popular magazines are

Binodon Canvas Charbela Charidik Mirror etc.

Pros:1. The number and range of specialized magazines provide advertisers with an

opportunity for narrowly targeting audiences. Both demographic and geographic selectivity can be achieved.

2. They provide a prestige, quality environment for advertisers.3. Magazines advertising has a long life, especially since issues are often passed

along to several readers.

Cons:1. Magazines are more expensive on an audience-reach basis than any other

major medium, with the possible exception of direct mail.2. Most magazines have relatively long advertising deadlines, which reduce

flexibility and the ability of advertisers to react to fast-changing market conditions.

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3. A single magazine rarely reaches the majority of a market segment. Therefore, several magazines must be used or alternative media must supplement magazine advertising.

Billboards:

We are planning to set up a very few billboards at prime areas of Dhaka. It would attract the business people.

Sponsorship:

We will not go for any sponsorship program because we are not higher profit Maximization Company. Our main purpose is to help people.

Managing Events:

We would arrange various short events in particular occasions like New Years Eve, Eid, Valentines Day, Halloween in under privileged areas.

Direct Marketing:

Direct marketing involves communicating directly with the target market. It includes variety of activities like telemarketing, direct selling, direct response through direct mail etc. Manage service provider will have a well managed direct marketing division.

Telemarketing division would take care of all the enquiries of the customers and encourage them to purchase our service. They will also let them know about the latest offers and facilities of our company so that the customer gets interested. Besides, they would also directly call target customers like corporate companies, big industries etc. Then they will elaborate about the corporate facilities and offers and so on.

Direct response advertising will also let the customers communicate directly from internet.

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Public Relations:Public relations also include advertising, participating in community services, sponsorship etc which our company would do a few of them in the long run. Because as a new company, we would have to first make our existence clear in the market then we will have to build a strong reputation.

Personal Selling:In case of personal selling, our company would do these activities- Send sales persons from door to door at our target people door and tell

about our product and our social cause. Telephone sales are also a part of personal selling.

9.11Schedule of Campaigning:

For proper advertising & other expense we need a schedule or a chart which are given below:

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Newspaper Yes Yes Yes Yes Yes

Magazines Yes Yes Yes Yes

Radio Yes Yes Yes Yes

Bill board Yes Yes Yes Yes Yes Yes Yes Yes

On line Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Table 8

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9.12 Promotion Budget:

Type Year 1 Year 2 Year 3 Year 4 Year 5

Newspaper 150,000 175,000 150,000 120,000 100,000

Magazine 50,000 100,000 150,000 100,000 75,000

Radio 30,000 60,000 50,000 40,000 30,000

Billboard 100,000 100,000 150,000 100,000 100,000

Online 15,000 20,000 15,000 20,000 15,000TOTAL 345,000 455,000 515,000 380,000 320,000

Table 9

9.13 Product forecasts

Our expected product & production forecast for the first ear is given below:

MonthCompostable

TablewareBiodegradable

Tableware

Paper Cup with

Handle

Disposable Tableware

BoardsBagasse

Plate

Sugarcane Denim Fabric

(sft)

Sep, (2012)

1500 1500 5000 1300 800 5000 10000

Oct 1600 1700 5500 1500 900 5500 15000

Nov 1700 1900 5700 1600 1000 6000 18000

Dec 2000 2100 5900 1800 1200 6500 22000

Jan, (2013)

2100 2300 6000 2000 1300 6700 25000

Feb 2200 2500 6200 2100 1400 7000 28000

Mar 2500 2700 7000 2200 1500 7500 32000

Apr 2600 2800 8000 2400 1600 8000 35000

May 2700 3000 9000 2600 1700 9000 38000

Jun 3000 3200 12000 2800 1800 10000 42000

Jul 3300 3300 12500 3300 1900 11000 45000

Aug 3500 3400 13000 3500 2000 12000 50000

9.14People:An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage. Client makes judgments and delivers perceptions of the service based

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on the employees they interact with. Staff should have the appropriate interpersonal skills, attitude, and service knowledge to provide the service that clients are paying for. In our Company we will appoint people based on their product knowledge and those who have good interaction capabilities. We need people to stay with us for a long time and we have to make a good reputation among all the social business firms. While selecting people for the company we will maintain a minimum skill requirement and after selecting the employees we will train them at least 2 months for a better quality output. We will provide a personality development training which will help them to build good attitude and give them an overall service knowledge by which they will be able to convince the Customer. After doing all these things we can hope to get a good feedback from our customer as our whole business depends on them.

9.15 Process:This area of marketing depends on how the company is able to handle the customers demands and needs properly. Any customer query, confusions and so on must be met through proper communication by those responsible for the work. It can be done while presenting the work or before the contract is made. There maybe times where customers may ask to scale back the efforts since they cannot handle the volume and have to expand the resources, therefore the agencies job will be to adjust the campaigns accordingly.

9.16 Physical condition:Our customers may have a vague idea about the effectiveness of our work being done according to their needs. So it will be necessary to communicate in a way that the customers will feel confident in using our product.

9.17 Controls:Marketing plan of this firm will be connected with the production and operational plans. Because all the agreements and deadlines have to be maintained by theproduction and operation department otherwise it will largely affect the fame of the firm. From production to delivery each and every step needs to be supervised with the discipline, quality and other important concerns. Any error at any step may fail the firm to satisfy the customers as per demand.

A plan always needs to be flexible so that changes can be made at crucial or emergency situations. There will be alternative plan for every department along with the core planning, so that if one plan fails than alternative plan can substitute that.

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Cost control is a vital issue for increasing profitability. If the production cost is low than it aids to generate more profit. Cost is dependent on different variables like less production , too much waste, more bargaining power of suppliers, inefficient employees etc. These independent variables must focused more to cut the cost respectively.

Supply chain is always important in terms of efficiency. Proper supply of raw materials and other effective needed materials can play a big role in business efficiency. If the production and operation process is too long than it will simply incur more labor cost and time will be wasted as well.

Communication is the crucial point for business success for an ad company. Company needs to maintain good relationship with the media. A very good channel in the media is like a prerequisite for a company to attract more and more customers. A good communication also helps the company to increase the business fame in the industry.

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Chapter 10Operational plan

10.1 Description of companys operation:

Our aim is to achieve very fast growth and gain very good customer response on our venture because we are first in Bangladesh for this kind of unique production process. As our business is manufacture based final product from sugar cane fiber that provides different type of tangible product to customers, we will emphasize on our operational plan to make it efficient. An effective plan will help us to implement the strategies in our day to day operations. We will focus on building up customer reliability by assuring a better quality product.

We have developed our total operation system in three parts. That is given below:

Front Office Operations Service Operations(Back Office) Supporting Wings

Each and every wing will be working independently. The purpose of dividing the whole operations into three parts is to come up with better efficiency and better manufacturing process. We hope will be able to deliver the best product made from sugar cane fiber and satisfy them at our level best.

10.2 Supporting Wings

Support Wings helps to assist ongoing operations. Which are described below:

1Finance:

Our finance department for operations will be responsible for keeping track of all the businesses transactions that will occur. We will have one main finance department with two divisions. But at the end of every day all the information will be accumulated in the finance department.

Cash Management:

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This is the main purpose of this department. As we are going to have many products, this will help us to keep track of cash inflows and outflows effectively. Using the daily, weekly, monthly and annual data, our financial analyst will forecast and manage the cash resources, including the investment of cash balances. This information will guide us to take decisions effectively.

Accounts Payables:

The Finance department will keep the record of daily purchase of raw materials for production and for necessary equipments on credit. It will process, verify and make payment to the vendors within the time. It will be carefully handled so that we can maintain a long-term relationship with the suppliers.

Management Information:

Another important responsibility is to communicate the findings with the management team. After getting all the necessary data, finance department will present statistical information to operating executives and owners to facilitate identification of areas for improvement. It will recommend such kinds of things like to cut one of the operating costs, which is adding less value to the business, or to control costs of foods services etc.

Financial Reporting:

On the basis of daily reporting, monthly operating statement, balance sheet, cash flow projections will be made. Experts will calculate the full year forecasts and other various analytical reports.

Detailed Budget Preparation:

For an effective operational plan, preparation of the annual operating budget is important with the capital expenditure budget and cash flow projection. This will guide top-level management to make decision regarding businesses expand or adding value to the business.

Payroll Processing:

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All the aspects of the payroll functions are going to be taken into account including cost segmentation and daily labor productivity tracking, overtime of the employees will be recorded so that the salary and wages can be managed effectively.

Customized Reporting:

Our team will be able to provide customized financial reports to meet owner's needs or requirements for the profitability.

Human resource:

The Manager on Duty is a particularly important and critical role for the success of our venture. In a manufacturing related business, HR department acts the crucial activities of recruiting capable persons who will directly serve the customers. .

Information Technology:

Operational plan

Supporting Wings Primary activates

Manufacturing operationFinance

Human ResourceMKT and sales

Administration

Production and delivery

Information Technology Customer feedback

Superior Profitability

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There are many businesses, which need different software packages for satisfying their operational as well as functional needs. To fulfill this requirement, these companies sign deals with the software manufacturing companies. Information technology is useful in ensuring the smooth functioning of all the departments in a company such as the human resource department, finance department, manufacturing department and also in security related purposes. This kind of technology in this service sector allows us to work effectively and get rid of errors that can be made while working manually.

Administration:

The main purpose of this Administration is to plan, direct, or coordinate supportive services of an organization. Basically, the administrative activities include all the crucial sections of the business.

Property management:

This administration department such as coordination of marketing, finance will manage the total plant and HR department will be done. Adding new service or adding new technology will be fully supported by this sector.

Primary activity:

Our primary activity is divided in to production, sales, marketing, and customers feedback. These primary activities are very important for executing any order.

Flow of orders of goods and services:

Our maximum capacity of production in per months in glass and plate section is 20000 units per month. In our tissue paper section 10000 units per month. And in bad sheet section production capacity is 50000 square feet per month. We are expecting to reach our breakeven by sales within first six months. Since its a new concept in Bangladesh we have to for some months for getting order at a large scale. We are expecting to get order from hotels and restaurants where one time usable glasses and plates demand are very high. We also are expecting order from different corporate and family program where one time usable glasses and plates are also used. Our tissue paper is for all section of people of the society. So we are expecting a large quantity of order from households, offices, hospitals.

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Our expected flow of order for one year (unit):

MonthCompostable

TablewareBiodegradable

Tableware

Paper Cup with

Handle

Disposable Tableware

BoardsBagasse

Plate

Sugarcane Denim Fabric

(sft)

Sep, (2012)

1500 1500 5000 1300 800 5000 10000

Oct 1600 1700 5500 1500 900 5500 15000

Nov 1700 1900 5700 1600 1000 6000 18000

Dec 2000 2100 5900 1800 1200 6500 22000

Jan, (2013)

2100 2300 6000 2000 1300 6700 25000

Feb 2200 2500 6200 2100 1400 7000 28000

Mar 2500 2700 7000 2200 1500 7500 32000

Apr 2600 2800 8000 2400 1600 8000 35000

May 2700 3000 9000 2600 1700 9000 38000

Jun 3000 3200 12000 2800 1800 10000 42000

Jul 3300 3300 12500 3300 1900 11000 45000

Aug 3500 3400 13000 3500 2000 12000 50000

Table 10

Technology utilization:

We will use different types of technology for maintaining our production process, maintaining proper inventory, manage order from buyers and for selling our products. Our most of the machines are automatic that are controlled by centre controlling unit that maintain maximum productivity. If any fault occurs in any parts of the production system then manufacturing process will be ceased for moment until machines are properly repaired. That will prevent us from occurring any major accident. Our inventory system is maintained by (CBIT) computer based inventory system. So we reduce inventory holding period that will help us minimizing cost and speeding the production process. We will use website for receiving orders. So our investors will not face any hustle for giving orders and we can supply them products in priority based with great efficiency.

Machinery and equipment:

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We need machinery that is both efficient and cheap. So china is the best option. We need different types of machinery for producing of final output because our product range is diverse. For producing Biodegradable and Disposable tablewarewe need almost dame types of machinery with different shaped dice. But for producing Boards and Sugarcane Denim Fabric from sugar cane fiber we need more expensive and unique type of machine. For manufacturing fabrics we have to set up different types of textile machineries. We have to buy chair, fan, trolley, computer, light, table besides machinery.

The list of those machineries is given below:

Biodegradable tableware machine. BA-12 Type sugar cane Cup Handle Making Machine. Plate Bending Machine. Battery Plate Pasting Machines. Plate Rolling Machine. Oblique Type Bagasse Corrugation Machine. Automatic Bagasse Corrugated Board Making Plant. Briquette Machine. Straw Fuel Machine. Coal Briquette Press. Briquette Crusher. Briquette Dryer. Mixing equipment Carbonization Furnace Pellet Mill Asbestos Tile Machine Pellet Machine

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Chapter 11SWOT Analysis

The SWOT analysis is an extremely useful tool for understanding and decision-making for all sorts of situations in business and organizations. SWOT is an acronym for:

A. StrengthsB. WeaknessesC. OpportunitiesD. Threats

The analysis is given in the next page:

STRENGTHS1. We are going to provide unique compact packages. 2. Right service, quality and reliability.

3. Low price.4. Smart and proficient management.

5. Competitive price with maximum quality.

6. Management is committed and confident.

OPPORTUNITIES1. Bangladesh has a large potential market for social business.

2. More and more investors are being becoming interested in investing in this particular sector.3. People respond to new ideas.4. Future prospect to expand.

1. We are going to provide unique

2. Right service, quality and reliability.

4. Smart and proficient management.

5. Competitive price with maximum

6. Management is committed and

WEAKNESSES1. No direct marketing experience.

2. Less experience in legal procedures.

3. Limited initial budget.4. Customer service staffs need training.

OPPORTUNITIES1. Bangladesh has a large potential market for social business.

2. More and more investors are being becoming interested in investing in

3. People respond to new ideas.4. Future prospect to expand.

THREATS

1. It is going to be difficult to establish the venture when idea is new.

3. Political instability.3. Environmental degradation.

4. National economy and price level.5. Possible negative publicity because of less marketing experience.

SWOT

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1. No direct marketing experience.

2. Less experience in legal procedures.

4. Customer service staffs need

1. It is going to be difficult to establish

4. National economy and price level.5. Possible negative publicity because

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Chapter 12Human resources plan

12.1 Form of Ownership:

Type of ownership (Type 1 Social Business):

This kind of social business is a non-loss, non-dividend devoted to solving social problem and owned by investors who reinvest all profits in expanding and improving the business. The investors can take back their original investment over a period of time, but cannot take any profit. According to Nobel Peace Prize laureate Prof. Muhammad Yunus,A Type 1 is when the social business produces a product or service that is specifically targeting a social objective.

We will have equal shares in our venture, therefore risk is equal. In case of bankruptcy and liquidation, the loss will be divided equally among us. No partner can transfer h share to any other person without the prior consent or willingness of all other partners. We all will be Active partners which mean the partners who actively participate in the day-to-day operations of the business are known as active or working partners.

12.2 Authority of Principals:

Principal of Authority actually defines who will be assigned what ones responsibility is which are given below:

Post Responsibility Assigned to

Director of Planning & Operation-Production

Taking Care of Daily Operations

Md. Golam Ahasan

Director of Marketing & Sales

Communication & SalesFarzana Islam & Md. Atiqur

Rahman

Director - Finance Taking Care of Daily Cash Shamiul Haque

Director - HRM & IT Total Control over People Saiful Islam Sourav

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Table 11

These are the responsibility we are assigning. These key people will work as directors of different department. They will work individually with the help of other employees those will be hired. But at a specific period of time, there will be board meetings and evaluations of each and every department's performance. Any kinds of changes in decisions will be evaluated first, and then will be implemented. Each and every of these members will cooperate, because without cooperative actions we cannot make sure high quality service to the customers. From financing to the operations will work as it is one individual department.

12.3 Management Team Background & Roles and Responsibilities:

Shamiul Haque and Farzana IslamDirector of Planning and Operation-Production

When it comes to social business it includes all the activities necessary to continue its daily operations. The key responsibility of any social businessoperation is to execute each and every activity in an efficient way that it can reduce overall cost of running the business. Operations managers are responsible for managing activities that are part of the production of goods and services and daily operations. The main responsibilities include managing the operation process, planning, controlling, and designing, improving performance andoperation strategy. They also play a vital role in other functions like marketing sales, finance accounts and other stuffs.Operations managers have to deal with:

Asset Management:Proper use of buildings, facilities, goods and services, balancing effectiveness and efficiency. Overall, managing day to day operations.

Cost Management:Most of the cost of producing goods and service is related to cost of acquiring resources, processing and delivering them to customers. Cost cutting motive is very important for an operations and operation manager should be efficient in this.

Decision Making:Operation manager take decision. Which are:

1. Designing the total operations process

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2. Managing the process3. Improving the system

Roles & Responsibilities: Management of people, equipment, and supplies Cost control Recordkeeping Leadership Communication Strategic planning Departmental management

These are the major duties performed by an Operations Director.

MD. Saiful Islam SouravDirector of Finance

Finance is a major player in the success of a business. The major responsibilities are given below:

Roles & Responsibilities:As a director of the finance department my duty would be to monitor the activities of all other departments with the finance department so that proper and accurate financing can be done. Marketing, Human Resource, Administration and Operational activities need financing and that will be highly evaluated to ensure least amount of unnecessary cash outflows. My key activities will be:

Cash Management:Financing the whole organization is a crucial part specially the managing the cash inflows and outflows for different period. I have to ensure that there is adequate cash for the operating activities (day to day operations). My concern will be to confirm the fact that there is enough liquidity. Since liquidity and return are negatively related, I have to keep an eye on the potential return of our investment. One of my main duties will be to find out strategies to keep the operating expenses as low as possible.

Financial Structural Decision:I have to determine the optimal mix of short term debt, long term debt and equity that will maximize the return. Since we are financing our project with significant amount of equity, initially our tax payment will be higher. So, once we achieve stable growth in terms of sales and income, my focus will be to increase the debt amount for leverage as well as return.

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Fund Management:Financial manager has to deal with managing funds of cash and other disbursements. He has to pay salaries to the employees and the stuffs. He has to maintain a minimum amount of fund in order to hedge any risk. The key role of managing funds is given below:

Anticipation of funds(capitalization) Raising of fund Allocation of fund(investment decision) Assessment of fund

Investment Climate Observing:As a financial manager its my duty to observe the invest climate and make assumptions and decisions based on my observing. Regular observations might result in bringing money to the company which is beneficial for the company in long-term.

Md. Golam AhasanDirector of Marketing Department:

Roles and responsibilities of Marketing and Sales Director:Service oriented organizations need different kinds of promotional activities rather than a product oriented service. We need to assure that our service create anemotional attachment with the present customers. I will be responsible for the tasks of my people who will do marketing works and promotional activities. Our initial promotional activities will be primarily to introduce our products to the market. It is necessary for our initial revenue. We will try to do all the research work when we start our operations, so that any kinds of changes that will be needed can be recognized and we can immediately take necessary actions.

My key responsibilities will be: Must know and research about what our competitors are doing and the

trends they are adapting. Spotting recent trends and acting on them very fast is one of the very

important duties of a Marketing and sales director. As trends change very fast, capturing them and adapting should be fast to otherwise we will lag behind.

Staying up to date with the news, researches and other information that directly affect our services.

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In order to promote sales of our services that will most benefit the customers and to establish creditability through communication in a manner that will optimize the companys market share and savings, improve the companys efficiency, help achieve the companys mission and goals, and result in outstanding customer service.

Major responsibilities involve supervision, marketing, profitability and sales, reporting, purchasing, resale pricing, inventory, service, maintenance, and other duties as requested by management.

Maintaining a positive attitude that promotes teamwork, keeps the workers cooperative and happy and increases their productivity within the firm and thus maintains a favorable image of our company.

Provide supervision which involves establishing and communicating division goals and results to employees, staffing the division and delegating the workload, actively supporting employee growth, and upholding company policies.

Establish and communicate division goals and results to employees and establish division goals with assistance from upper management.

Be instrumental in coordinating and assisting the department managers in developing annual marketing plans. Will also coordinate all advertising for the company and negotiate with print and other media representatives to ensure efficient purchasing of advertising.

Another important duty is staff division and delegate work load that is needed to meet market requirements. That person will also establish and update job descriptions for all positions within the division and recommend selection of employees based on job requirements. They will also review general work assignments for each employee daily. The marketing director will also staff and adjust work force to fit seasonal needs with a minimum of unproductive labor costs. The marketing director will also be responsible to employ seasonal work-sharing arrangements to minimize layoffs and unemployment compensation costs if so needed.

Should be able to inform all customers of safe service. In addition be responsible for developing and updating a regular maintenance schedule for all division facilities and equipment.

Responsible for internal employee growth and will schedule and supervise orientation for new division employees and update employees regularly on new service knowledge and also identify in writing annually any training which is needed for individual employees while discussing performance.

Uphold all company policies and insure that division facilities and equipment meet all federal and state regulations.

Reviewing marketing activities with all applicable management. These activities can include: sales call recap, market share report, sales analysis

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and strategy review reports, sales promotional efforts and upcoming promotional plans.

I will monitor the daily records and trends of the revenues. Results from the review reports will be discussed with all other board members. So that before changing any strategies or actions, all of them get to know and cooperate.

Md. Atiqur RahmanDirector of Human Resource Department

Roles and Responsibilities in Bagasse: I will try to handle and work as effectively as possible to take out best from myteam members to achieve more from our objectives of the whole organization. As our business is production oriented, which needs people who will provide services to the customers directly, it is the most important role to manage the Human Resource. As our business is not very large, we need adequate of people to work and provide services to customers. My focus will be to hire such potential people to work with me and with my members. Managers will be highly monitored so that under their supervision, employee management goes in an organized way. Under my supervision, administration will be done by a different department. Last of all, strategies can be modified and reorganized if needed.

My key responsibilities for the organization: To maintain and develop HR policies, make necessary changes if there is a

need for a change. Develop the HR management team with experienced people from the field

to ensure a high quality service. Manage the team of staffs in the organization according to the need.

To ensure recruitment of required level/quality of Management staff, other business lines staff. Administer and approve employee offer letters salary letters and employment contracts.

To meet the needs of the business, I am going to focus on retention of skilled employees.

Develop and modify effective methods or tools for selecting people through interviews and tests.

Work with the key people to determine the salary budgets and ensure compliance to the approved salary budget by giving focus on incentives for better performance. These will be maintained on the corporate guideline on salary adjustments and promotions.

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Coordinate increments and promotions of all staffs. Ensure appropriate and effective communication at all staff levels from top

management to the employees. To maintain and develop effective management system in order to maintain

competitive advantage. Conduct the staff Induction session with the HR managers. Performance Management will be considered as an important tool to

regularly monitor and modify the performance. To recommend and ensure implementation of Strategic directions for the

people within the organization. Ensure and maintain a motivational climate in the organization, including

adequate opportunities for career growth and development. Monitor all employee benefit programs made by the HR manager with the

Finance and Administration department. Monitor the entire HR Administration and responsible for corporate HR

functions.

I will be responsible for controlling the HR managers for management of payroll issues, maintenance of employee records, safety issues of the employees, records of the insurance and other programs offered to employees and assist employees in understanding and evaluating the participation in these programs.

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Chapter 13Social Responsibility Strategy

Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business/ Responsible Business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. In some models, a firm's implementation of CSR goes beyond compliance and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law."CSR is a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered as stakeholders.

It is defined as the voluntary activities undertaken by a company to operate in an economic, social and environmentally sustainable manner. Our company recognizes the value of incorporating CSR practices into operations. Operating responsibly also plays an important role in promoting local values internationally and contributes to the sustainable development of communities.

In Bangladesh no legal compulsion is there. A few years back, Bangladesh Bank (BB) issued circular urging CSR activities for scheduled banks. Now BB publishes a very comprehensive annual report on CSR activities of the scheduled banks. This has compelled the banks to be forthcoming about CSR activities because the annual report has been the instrument of compulsion.

There is no denying that because of the central bank, CSR activities have been virtually institutionalized in the banking sector. In this connection it may be mentioned that Bangladesh Bank has adopted a number of pro-poor measures through the banking channels which have helped accelerate poverty alleviation activities. However, it should be remembered that decoration work in the VIP road, arrangement of golf tournament, display of gala fireworks in connection with the opening ceremony of state functions etc., are not acceptable under CSR programs. We try to do actual CSR activities of programs. We try to ensure human rights, labor standards, and environment friendly plant.

Chapter 14E-business Strategy

Interactive or Internet Marketing:

Internet marketing is a dynamic and revolutionary idea which has become a very important medium of marketing recently. Interactive flow of information whereby users can participate in and modify the form and the content of the information they receive in real time. So, Our Company will definitely engage in internet marketing. In this way, by putting up an adlot of people will come across the information about our company. In doing so we would have to create-

Face book Fan Page:Face book is a famous social networking site today. So creating a fan page in fabook would help the target customers to know informations about our company and get updates about offers and events automatically.

Twitter Page:

Facebook Fanpage

business Strategy

Interactive or Internet Marketing:

Internet marketing is a dynamic and revolutionary idea which has become a very important medium of marketing recently. Interactive media allow back and forth flow of information whereby users can participate in and modify the form and the content of the information they receive in real time. So, Our Company will definitely engage in internet marketing. In this way, by putting up an adlot of people will come across the information about our company. In doing so we

Table 12

Face book is a famous social networking site today. So creating a fan page in fabook would help the target customers to know informations about our company and get updates about offers and events automatically.

Twitter PagePut up Banner ads

Create own web page

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Internet marketing is a dynamic and revolutionary idea which has become a very media allow back and forth

flow of information whereby users can participate in and modify the form and the content of the information they receive in real time. So, Our Company will definitely engage in internet marketing. In this way, by putting up an ad virtually, a lot of people will come across the information about our company. In doing so we

Face book is a famous social networking site today. So creating a fan page in face book would help the target customers to know informations about our company

Put up Banner ads

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Following Twitter page will also benefit the customers and it would be easier for us to do marketing in such an inexpensive way.

Putting up Banner ads:Putting up banner ads in different sites where our target customers regularly visit, even in face book and twitter is also an important marketing strategy

Creating own Website:Our company will create its own website where it would promote itself and there will be all informations and facilities to.Our website is www.bagasse.com.bd

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Chapter 15Financial forecasts and other information

15.1 Assumptions:

Our all assumption about our business are-

Sl. Description Year 1 Year 2 Year 3 Year 4 Year 5

1 sales growth - 20% 20% 15% 15%

2 Total Quantity supplied 20,000 30,000 35,000 47,000 60,000

3Revenue will be generated from(compostable tableware, Tissue paper , Paper cup)

3,480,000

4,176,000

5,011,200

5,762,880

6,627,312

4Revenue will be generated from ( Boards, Sugercane Fabrics)

20,000,000

30,000,000

35,000,000

47,000,000

60,000,000

5 Salary growth of permanent staff - 12% 13% 14% 15%

6 Utilities Expense (% of Revenues) 1.0% 1.0% 1.0% 1.0% 1.0%

7 Maintenance Expense (% of Revenues) 1.5% 1.5% 1.5% 1.5% 1.5%

8 Rent Expense (Tk. 40,000 monthly)480,000

480,000

480,000

600,000

600,000

9 Dividend expense11,700,195

17,768,782

20,953,915

28,066,651

35,842,056

10 Project cost will be funded by equity investment

11 Minimum Wage of employees Tk. 7,000

12 Cost has been calculated on constant basis.

13 Details of Marketing expense has been attached

14 Salaries will be paid at the end of the month

15Sales revenue will be collected at sales time and at the emding of the month.

16 Debt: Equity = 30%:70%

17 Project life 5 years

18At the end of 5 years Net Income will be generated as same as year 5(considering year 5 profit to calculate PV of Perpetuity)

Page | 51

19 Details of Salaries expense has been attached

20 37.5% Tax applicable for joint venture or social business

21Rent Contract will expire after year 3. Thus, 25% growth assumed in Rent Expense

22Straight line depreciation assumed for calculation of Depreciation expenses

2380% of Net Income will be disbursed as Dividend among S/Hs and rest 20% wil be kept as R/E for future.

Table 13

15. 2 Financing Mode:

Financing Mode

1 Debt 450,000 30%

2 Equity 1,050,000 70%Table 14

We will take 30 % bank loan. And rest of our investment will be done by equity investment.

Projected Cost:

Project Cost

Sl. Item Amount (Tk.) Details

1 Advance Rent 240,000 6 Months rent (Area: 5,000 sft.)

2 Interior Designing 198,000 Appendix-1

3 Crusher machine 600,000 2 machine; Tk. 300,000 each

4 Processing Machineries 300,000 According to market experts

5 Furnitures & Fixtures 150,000 Appendix-1

6 Miscellaneous 12,000 Around 1% of Fixed Cost

Total Fixed Cost 1,500,000

8 Working Cap Req. N/A

Total PC 1,500,000

Page | 52

Our total projected cost will be 1500000 lakh taka. Breakdown of interior design cost and furniture cost are attached in the appendix

15.3 Income Statement:

INCOME STATEMENT

Description Year 1 Year 2 Year 3 Year 4 Year 5

Revenue23,480,

00034,176,

00040,011,

20052,762,

88066,627,

312Revenue from (compostable tableware, Tissue

paper , Paper cup)3,480,0

004,176,0

005,011,2

005,762,8

806,627,3

12

Revenue from ( Boards, Sugercane Fabrics)20,000,

00030,000,

00035,000,

00047,000,

00060,000,

000

Expenses:

Salaries Expense2,572,4

002,881,0

883,255,6

293,711,4

184,268,1

30

Marketing Expense 110,000 126,500 145,475 162,932 182,484

Maintenance Cost 352,200 512,640 600,168 791,443 999,410

Utilities Expense 234,800 341,760 400,112 527,629 666,273

Rent Expense 480,000 480,000 480,000 600,000 600,000

Depreciation Expense 162,000 162,000 162,000 162,000 162,000

Interest Expenses 68,275 57,375 44,624 29,706 12,255

Total Expenses3,979,6

754,561,3

635,088,0

085,985,1

286,890,5

52

Net Income Before Tax19,500,

32529,614,

63734,923,

19246,777,

75259,736,

760

Tax @ 37.50%7,312,6

2211,105,

48913,096,

19717,541,

65722,401,

285

Net Income After Tax12,187,

70318,509,

14821,826,

99529,236,

09537,335,

475

Dividend expenses9,750,1

6214,807,

31817,461,

59623,388,

87629,868,

380

Retained Earnings2,437,5

413,701,8

304,365,3

995,847,2

197,467,0

95

ROE(%) 6.99% 34.40% 67.04% 79.61%101.64

%

Dividend Payout Ratio 80% 80% 80% 80% 80%

Sustainable Growth Rate(%) 20.33%

Table 15

Page | 53

From the income statement we can see that all revenues and expenses are calculated according to our assumptions. And our sustainable growth rate at the end of year 5 is 20.33%.

15.4 Balance sheet:

BALANCE SHEET

Description Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS

Current Assets

Cash in hand 2,769,302 6,592,697 11,068,347 17,023,434 24,590,283

Advance Rent & Miscellaneous 252,000 252,000 252,000 252,000 252,000

Total Current Asset 3,021,302 6,844,697 11,320,347 17,275,434 24,842,283

Fixed Assets

Interior Designing 198,000 198,000 198,000 198,000 198,000

Crusher machine 600,000 600,000 600,000 600,000 600,000

Processing Machineries 300,000 300,000 300,000 300,000 300,000

Furnitures & Fixtures 150,000 150,000 150,000 150,000 150,000

Less: Accumulated Depr. 162,000 324,000 486,000 648,000 810,000

Total Fixed Assets 1,086,000 924,000 762,000 600,000 438,000

Total Assets 4,107,302 7,768,697 12,082,347 17,875,434 25,280,283

LIABILITIES & S-Hs' EQUITY

LIABILITIES

Current Liabilities

Salaries Payable 214,367 240,091 271,302 309,285 355,678

Utilities Payable 19,567 28,480 33,343 43,969 55,523

Total Current Liabilities 233,933 268,571 304,645 353,254 411,200

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Long-Term Liabilities

Long term Debt 385,828 310,757 222,933 120,192 0

Total Liabilities 619,762 579,327 527,578 473,446 411,200

OWNERS EQUITY

Owners Capital 1,050,000 1,050,000 1,050,000 1,050,000 1,050,000

Retained Earnings 2,437,541 6,139,370 10,504,769 16,351,988 23,819,083

Total Equity 3,487,541 7,189,370 11,554,769 17,401,988 24,869,083

Total Liabilities & Equity 4,107,302 7,768,697 12,082,347 17,875,434 25,280,283

Table 16

From our balance sheet we can see that our total liability and assets are increasing every year. Our retained earnings are also increasing in every year. Our salaries payable and utilities payable has been crated because at the date when we create our balance sheet then some of our current month expense remain payable.

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15.5 Cash flow statement:

CASH FLOW STATEMENT

Description Year 1 Year 2 Year 3 Year 4 Year 5

Net Income After Tax12,187,70

318,509,14

821,826,99

529,236,09

537,335,47

5

Adjustment for:

Depreciation 162,000 162,000 162,000 162,000 162,000

Increase/Decrease in Salaries Payable

214,367 25,724 31,212 37,982 46,393

Increase/Decrease in Utilities Payable

19,567 8,913 4,863 10,626 11,554

Net Cash from Operating activities12,583,63

618,705,78

522,025,06

929,446,70

437,555,42

2

Purchase of Fixed Assets - - - - -

Sales of Fixed Assets - - - - -

Cash flow from Investing Activities - - - - -

Debt Repayment (64,172) (75,072) (87,823) (102,741) (120,192)

Dividend Payment(9,750,16

2)(14,807,31

8)(17,461,59

6)(23,388,87

6)(29,868,38

0)Cash Flow from Financing

Activities(9,814,33

4)(14,882,39

0)(17,549,41

9)(23,491,61

7)(29,988,57

2)

Net Increase/(Decrease) in Cash 2,769,302 3,823,395 4,475,650 5,955,087 7,566,849

Add: Opening Cash and Cash Equivalent

- 2,769,302 6,592,69711,068,34

717,023,43

4

Closing Cash and Cash Equivalent 2,769,302 6,592,69711,068,34

717,023,43

424,590,28

3Table 17

Page | 56

15.6 Capital budgeting:

Capital Budgeting

Sl.

Description Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Cash Inflow/(Outflow)(1,500,000

)452,71

8549,548 897,872

1,036,579

1,276,373

Cummulative Cash Flow452,71

81,002,26

71,900,13

82,936,71

74,213,09

0

Payback - 1 1 0.45

Discounting Factor 17.40%

1 0.85 0.73 0.62 0.53 0.45

Discounted Cash Flow(1,500,000

)385,62

0398,721 554,894 545,670 572,318

Discounted Payback - 1.00 1.00 1.00 0.29

1 Payback Period 2.45 years

2Discounted Payback

Period3.29 years

3 NPV at 17.40% 957,223 BDT.

4 IRR (%) 37.97%

Table 18

From the capital budgeting analysis we can see that our payback period is 2.27 years. Our discounted payback period is 2.45 years. Our NPV at 17.40 % is 957,223 TK. Our internal rate of return is 37.97%.

Page | 57

15.7 Loan Amorti