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Introduction

A business plan is a written document that describes a business, its objectives, its strategies, the

market it is in and its financial forecasts. It is a blueprint and communication tool for our

business. It has many functions, from securing external funding to measuring success within our

business. It is essential to have a realistic, working business plan when we are starting up a

business.

As we are going to start a new business, we have to write a business plan.   It will give us a

chance to figure out all the good and bad ideas about our business idea before we go ahead with

it. Many people who write a business plan realize that their business will not work out or they

will realize more difficulties than they originally thought they would face. if we want to get

financed, we'll need to write a business plan.  No one will loan us money or invest in our

business without a business plan.

Now we are going to start a new business. For our business, we have chosen automobile sector

of Bangladesh. The name of our company is “HAMNZ” automobiles.

HAMNZ automobile will be a partnership business formed by five partners, who are from good

academic background, and are ready to share and invest their knowledge in profitable business,

with a similar aim to serve customers with the best product at the right time.

Origin of the report

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The business plan on HAMNZ automobile has been prepared for Ms. Jesmin Sultalna (Course

instructor of Entrepreneurship Development and Small Business Management, MHR- 303) as a

partial requirement of the course Entrepreneurship Development and Small Business

Management. Real life does not go all the time like the theories and practical world is very

critical and diverse. To understand the theoretical aspects of a subject one must understand the

practical situation, problems, policies and implications of the theories. So the researchers were

asked by the respected Course instructor to prepare a report in the very first class of this

semester. Course instructor assigned this report understand what are the policy, procedure and

steps that is to be taken to establish a new company which will offer a new innovative product or

service. This report emphasizes on preparing a business plan, which is the outcome of an

integrated process of making future plan for managing different organizational functions.

In order to prepare this business plan it was necessary to survey several other companies, service

centers, individuals, customers, and many other which are of relevant field, and to know their

policy and procedure. There are some business personnel, which are very popular in this field.

So, the researchers decided to survey these people to prepare the business plan on the HAMNZ

automobile. Researchers have tried to prepare this business plan in such a way that it reflects the

total procedures of business description, marketing, ownership, management, service, potential

risk, financial analysis etc.

Researchers have tried to prepare a business plan in such a way that it reflects the total process of

establishing a new company that HAMNZ automobile which will offer a new and innovative

service.

OBjectives

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The objective of the business plan is to involve the researchers in practical situation about how a

business is established. This business plan provides a clear view about how to start, select and

run a business successfully. Practical life and practical situation is far different from the textbook

or theory. There can be many unexpected situations. In this situation the textbook is not enough

for gaining a clear idea about the new business establishment process. The Primary objective is

to know the policy, procedure, necessity and activities of establishing a new company.

The primary objective of this business plan is to analyze the real situation and process of

establishing a new business. This business plan will also furnish the opportunity to prepare a real

business report that will help the researchers to make reports in future for other companies. Each

of the segments has been stated in a manner that will be sufficient to have an idea about the

HAMNZ.

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Sources of Information

Our business plan report is based upon both primary and secondary sources of data.

Primary Source

Primary sources are original materials on which other research is based. They are usually the first

formal appearance of results in the print or electronic literature. They present information in its

original form, neither interpreted nor condensed nor evaluated by other writers. We have

collected our information by talking with the owners and workers of different automobiles

companies. We have also conducted some customer surveys. From those surveys, we got some

information that has helped has in preparing this business report. Other than these sources, we

have collected our information from the following primary sources:

technical reports on automobiles

interviews and fieldwork

newspaper articles

government documents

Secondary Source

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Secondary sources are those, which simplify the process of finding and evaluating the primary

literature. They tend to be works, which repackage, reorganize, reinterpret, summarize, index or

otherwise "add value" to the new information, reported in the primary literature. Secondary data

may be available which is entirely appropriate and wholly adequate to draw conclusions and

answer the question or solve the problem.

To know exactly how to prepare the report, we have talked to some bank personnel who are

involved in the decision making of project financing. Secondary sources were consulted for an

understanding of techniques of writing feasibility studies and for other relevant information. Few

publications and web pages were also browsed.

We have also collected our data from the following secondary sources:

dictionaries and encyclopedias

handbooks and data compilations

history

journal articles

newspaper and popular magazine articles

review articles and literature reviews and

textbooks

.

Metholodgy

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The report is mainly based on the primary sources of information. Most of the information was

gathered by interviewing different personnel of automobile industries and also by mail. The basis

of the report are-

Interview of Owner, Manager, and other employees of NAVANA automobile.

Interview of Owner, Manager, and other employees of General motors was taken.

The planning format given by the course instructor was followed by the researchers and

tried to collect all required information.

Researchers have tried to match the information obtained by interview with the

information gathered from the Internet.

After getting all the information, an intensive always has been conducted and the report

has been submitted in presentable form.

Some part of this report is written from the observation, opinion of interviewers. Above all the

report is based on the perception, imagination, and creativity and planning of the researchers.

Website, books and others also contributed in some fields. Some assumptions are taken from the

situational aspects.

Scope of the report

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The business plan of HAMNZ automobile has been prepared for Ms. Jesmin Sultalna (Course

instructor of Entrepreneurship Development and Small Business Management, MHR- 303) as a

partial requirement of the course Entrepreneurship Development and Small Business

Management. So the report mainly provides information about how to start select and run new

business that will provide a service that is innovative. It provides-

Development of new business opportunity.

Evaluating and realizing which business should be chosen.

Researching the market to know about the prospect of the selected business.

Developing a good marketing plan.

Information about business goal, marketing plan, production plan, financial plan.

Sales forecasting of the company.

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Limitations

Every time there is some problems while preparing a report. In this report the researchers also

faced some problems while gathering information. Most of the problems are like as follows:

There was a lack of adequate primary and secondary information.

The companies are not ready to disclose actual information.

The company’s personnel are not able to give enough time in the rush hours.

The market survey we have done is not sufficient to justify the total market

situation of Dhaka city.

We have failed to choose more area for our survey.

For these reasons there are some limitations of the report. In spite of all this limitations the

researchers has tried with our best to prepare the report in a presentable and faithful manner.

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General Description of the Industry

The history of the automobile is very rich and dates back to the 15th century when Leonardo da

Vinci was creating designs and models for transport vehicles. There are many different types of

automobiles - steam, electric, and gasoline - as well as countless styles. Exactly who invented the

automobile is a matter of opinion. If we had to give credit to one inventor, it would probably be

Karl Benz from Germany. Many suggest that he created the first true automobile in 1885/1886.

Below is a table of some automobile firsts, compiled from information in Leonard Bruno's book

Science and Technology Firsts (Detroit, c1997) and About.com's History of the Automobile.

AUTOMOBILE FIRSTS

Inventor Date Type/Description Country

Nicolas-Joseph Cugnot

(1725-1804)

1769 STEAM / Built the first self

propelled road vehicle (military

tractor) for the French army: three

wheeled, 2.5 mph.

France

Robert Anderson 1832-

1839

ELECTRIC / Electric carriage. Scotland

Karl Friedrich Benz

(1844-1929)

1885/86 GASOLINE / First true automobile.

Gasoline automobile powered by an

internal combustion engine: three

wheeled, Four cycle, engine and

chassis form a single unit.

Germany

Patent DRP

No. 37435

Gottlieb Wilhelm

Daimler (1834-1900)

and Wilhelm Maybach

(1846-1929)

1886 GASOLINE / First four wheeled,

four-stroke engine- known as the

"Cannstatt-Daimler."

Germany

George Baldwin Selden

(1846-1922)

1876/95 GASOLINE / Combined internal

combustion engine with a carriage:

United

States

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patent no: 549,160 (1895). Never

manufactured -- Selden collected

royalties.

Charles Edgar Duryea

(1862-1938) and his

brother Frank (1870-

1967)

1893 GASOLINE / First successful gas

powered car: 4hp, two-stroke motor.

The Duryea brothers set up first

American car manufacturing

company.

United

States

 

An early Benz automobile. Photo courtesy of Vintage Web Classic Cars Picture Archive.

Horseless buggy made by Charles and Frank Duryea, 1893. The first practical gasoline

automobile built in the United States. Prints and Photographs Division, Library of Congress.

De Dion motor carriage #2. c1901. Prints and Photographs Division, Library of Congress.

First automobile on Pa. Avenue, 1896. Prints and Photographs Division, Library of Congress.

Early steam automobile presented to Smithsonian / Underwood & Underwood, Washington,

1928. Prints and Photographs Division, Library of Congres

Each automobile manufacturer puts out a new line of vehicles every year. Planning for a new

model usually begins two to three years before it appears in dealer showrooms. At the planning

stage, an auto company's highest officials and product planning experts decide the broad outlines

of the new models. They decide, for example, whether to emphasize sport and luxury models or

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to concentrate on low-priced compacts. They determine general price ranges and make decisions

on safety features, fuel economy, size, weight, and air pollution controls. Highly trained and

talented automotive designers, working within these guidelines, then sketch their ideas for new

cars. After the company's officials have approved one of their drawings, the stylists work with

skilled model makers, who build small-scale and then full-sized models of the new lines using

clay or fiberglass. Again, the company's top officials review the models and may make further

changes. Automotive engineers then take over to develop the designs for every part of a model.

Drafters help them by preparing the necessary blueprints. Physicists and chemists work with the

engineers to develop new parts, new kinds of metals, and new uses for materials such as plastic

or fiberglass. Mock-up builders then make parts by hand for prototypes of the new model. Test

drivers then drive the prototypes and make suggestions for further improvements. Engineers and

automotive technicians conduct tests on new parts. Industrial and plant engineers and production

planners select the manufacturing procedures for the car. They draw up the list of new materials,

tooling, machinery, and plant capacity needed. Only after much planning and testing is the actual

production of parts ready to begin. Some are made in the company's own plants, but many are

subcontracted to independent suppliers who specialize in making parts such as gears or brake

assemblies. Some of the most skilled production workers in the auto industry are found in parts

plants. They include tool and die makers, machine tool operators, machinists, and patternmakers,

who make equipment to form the many different parts of a vehicle—major body parts, frames, or

chassis, and all the other metal parts needed. Workers in machine shops, foundries, and forge

shops produce the metal parts. Sometimes they are pressed out of sheet metal. Production

managers, shop supervisors, inspectors, and skilled machine operators are responsible for turning

out parts as planned. Workers sand, paint, and polish the parts before they assemble them. Metal

finishers, polishers, production painters, and electroplaters do this work. Industrial upholsters

prepare the carpeting, padding, and upholstery covering. Other workers get the windows and

other parts ready. Workers then ship the parts from the parts departments of the auto plant to the

assembly lines where the vehicles are put together. Automobile assemblers make up the largest

group of workers in the industry. First, many parts go to subassembly lines, where various units

of the cars are built up. Then the chassis start moving on conveyor belts down the final assembly

lines. Assembly line workers hoist the major body parts into place. Each assembler does an

assigned task by attaching a part of a subassembly as each unit passes by. The final assembly of

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a car can take as little as ninety minutes. As each car nears the end of the line, workers add the

seats, fittings, dashboard controls, wheels, lights, bumpers, and other chrome parts. They fuel the

gas tank and drive the car off the assembly line on its own power.Besides production workers;

the auto industry employs a number of other workers. Inspectors, production managers, and

supervisors check the progress of the assembly line workers. Skilled, semiskilled, and unskilled

workers are responsible for maintaining the complicated machinery and equipment and the plant

itself. These workers include millwrights, electricians, and industrial machinery repairers.Many

tens of thousands of managers and clerical workers carry on their duties behind the scenes. A

major group of workers is responsible for the marketing of the motor vehicles that their company

produces. They prepare vast amounts of advertising and information material. They also stay in

tune with market trends and work closely with the dealers who sell the cars, trucks, and other

vehicles that the industry produces.

Description of the Firm

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The name of our firm is “HAMNZ”, It’s an automobile industry, factory located at 32/7, gazipur

and main office will located at 72/A, mohakhali, Dhaka.

Company Name : HAMNZ Automobile Industry

Brand Name : HAMNZ

Mission Dialogue : “Performance That You Can Trust”

Product Type : Automobile

Logo of the Firm :

Ownership:

It is a partnership business firm consisting of five dynamic partners, who are willing to share the

capital, profits, and losses of the business equally.

Name of the Partners:

Hasib Al Raj

Nishat hasan

Arman Reza

Mahmudul Hasan

Tuhin Akthar Zakaria

Vision

To create new value, excite and delight our customer through the best automotive product and

services.

Mission

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With passion, pride and speed, we actively communicate with our customer to deliver insightful

automotive products and services that exceed their expectation.

Value

We value integrity, customer focus, creativity, and efficient and nimble action, and respect

highly motivated people and team spirit. We positively support environmental matters, safety

and society. Guided by this value, we will provide superior rewards to all people associated with

HAMNZ.

Description of product

There are various automobile industries already doing their job all over the world. But in

Bangladesh there is no local automobile industry. But a huge number of people want to use cars.

Toyota, Lexus, Honda, Mitsubishi, Hyundai, TATA, SUZUKI, etc is one of the popular

companies. Now are going to open a automobile industry as a local competitor. Ours price will

be minimum level and quality will be outstanding. Our product name is

Our products are:

Car

Pesaro

CARs

HAMNZ’s one of the main product is car. HAMMZ recently introduce attractive new model cars

with higher technology. HAMNZ use hybrid technology and use car trackers. The car trackers

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will find the cars placement. There are two types of cars HAMNZ will introduce. Single drive

and family drive. In single cars there are only two seats for ride. It is a very small and speedy

stylish car. Another is Family drive. It’s a common shape of normal cars. It has 8 seats for ride.

It’s a very weight car. So accident will not come very easily.

Another product is Pesaro. It’s a very stylish attractive executive car. It represents the high image

to the customers. The main feature of this car is it has hybrid technology and car trackers. There

are two gas cylinder and has a oil tank. That means this car can capable to run gas and oil. It has

an extra protection system. For example, if this car will face accident at river. It will be able to

float 20 munities after the accident. It’s a very attractive and relax able car.

Market area

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Automobile industry is staying in an infant situation in Bangladesh. Especially there is no any

loyal automobile industry in our country. So HAMNZ will be the first automobile company in

Bangladesh. As a first time our market area will at mainly Dhaka, Chittagong and others six

divisions in Bangladesh. The main character tics of this automobile market are oligopoly market.

Because in the global world there are many company are doing automobile business. For

example; Toyota, Honda, SUZUKI, Nissan, Hyundai, ford etc. In automobile industry has huge

competitor. That is why competition is raised for taking better business place and make brand.

Market Size

As a first time of automobile industry our market size will be moderate situation. But for test

marketing our helping branch will available in 64 districts. Hope so first year we will take 6%

market share.

Customer

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Customer is one of the main elements of manufacturing business. As we are in an Automobile

assembling business, therefore we have to take good care of customers’ needs and their choices.

Customer needs may be defined as the goods or services a customer requires to achieve specific

goals. Different needs are of varying importance to the customer. Customer expectations are

influenced by cultural values, advertising, marketing, and other communications, both with the

supplier and with other sources. Therefore, we will take care of each of these factors. Now the

most important work to do before undertaking any marketing or selling of a product is to define

the targeted customer of that particular product. Doing business without knowing who our target

customers are will prevent us from reaching our objectives:

Increased sales,

Market share or

Brand awareness.

Therefore, first we have to identify the potential customers for HAMNZ automobiles.

Now there are two types of customer groups that we can target:

Individual consumers &

Other businesses.

Individual consumers are somewhat more difficult to target because they are diverse and

unpredictable, they typically have small individual budgets, Businesses as a target market tend

to be stable over time and have large budgets to spend on various products and services.

However, as we are in automobile business, our main target will be individual customers and

also business sectors. Our products are car and Pesaro which is very much acceptable price. Our

customer will be categorized by the income group level.

Upper Class

Upper Middle Class

Middle Class

Competition

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HAMNZ is a new comer automobile industry, but in position of competition our competitor will

be Toyota, Honda, Mitsubishi, TATA, etc.

Toyota Motor Corporation:

Toyota commonly

known simply as Toyota is

a multinational

corporation head quartered in

Japan and the world's

largest automake r by sales. It is

also the first largest in US

sales. Toyota employs

approximately 320,808 people

worldwide.

The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his

father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still

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a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its

first passenger car, the Toyota AA. Toyota also owns and operates Lexus and Scion brands and

has a majority shareholding stake in Daihatsu and Hino Motors, and minority shareholdings

in Fuji Heavy Industries, Isuzu Motors, Yamaha Motors, and Mitsubishi Aircraft Corporation.

The company includes 522 subsidiaries.

Toyota is headquartered in Toyota City, Aichi and in Tokyo. In addition to manufacturing

automobiles, Toyota provides financial services through its division Services and also builds

robots. Toyota Motor Corporation (including Toyota Financial Services) and Toyota Industries

form the bulk of the Toyota Group, one of the largest conglomerates in the world.

On May 8, 2009, Toyota reported a record annual net loss of US$4.4 billion, making it the latest

automobile maker to be severely affected by the 2007-2009 financial crises.

Mitsubishi

Manufacturer Mitsubishi Motors

Production 2006–present

Assembly Mizushima plant, Kurashiki,

Okayama,Japan

Class Kei car

Body style(s) 5-door hatchback

Layout Mid-engine, rear-/four-wheel drive

Platform Mitsubishi MR platform

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Engine(s) 659 cc DOHC MIVEC 12v I3

Transmission(s) 4-speed automatic

Wheelbase 2,550 mm (100.4 in)

Length 3,395 mm (133.7 in)

Width 1,475 mm (58.1 in)

Height 1,600 mm (63.0 in)

Curb weight 890–900 kg (1,960–1,980 lb)

Fuel capacity 35 l (7.7 imp gal; 9.2 US gal)

Designer Olivier Boulay

It’s a kei car from Japanese automaker Mitsubishi, first released in January 2006, twenty eight

months after its debut at the 2003 Frankfurt Motor Show. It is the first four door automobile

since the 1960s to employ a "rear midship" setup with the engine behind the passengers, in an

attempt to improve safety and interior space without enlarging the overall exterior.

The innovative layout and styling of the i proved an immediate critical and commercial success,

exceeding Mitsubishi's initial sales targets by 20 percent and winning thirteen awards in its first

year. 

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The Power of Dreams

Type Public

(TYO: 7267) & (NYSE: HMC)

Founded 24 September 1948

Founder(s) Soichiro Honda

Takeo Fujisawa

Headquarters Minato, Tokyo, Japan

Area served Worldwide

Key people Satoshi Aoki (Chairman)

Takanobu Ito (CEO)

Industry Automobile

Truck manufacturer

Motorcycle

Products automobiles,

trucks,motorcycles, scooters, ATVs,electrical

generators,robotics, marine equipment,jets, jet

engines, and lawn and garden equipment.

Honda and Acura brands.

Revenue ▲ US$ 120.27 Billion (FY 2009)[1]

Operating

income

▲ US$ 2.34 Billion (FY 2009)[1]

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Net income ▲ US$ 1.39 Billion (FY 2009)[1]

Total assets ▼ US$ 124.98 Billion (FY 2009)[1]

Total equity ▼ US$ 40.6 Billion (FY 2009)

Employees 181876

Website Honda Worldwide

Honda Motor Company, Ltd. 

Honda is the world's largest manufacturer of motorcycles as well as the world's largest

manufacturer of internal combustion engines measured by volume, producing more than 14

million internal combustion engines each year. Honda surpassed Nissan in 2001 to become the

second-largest Japanese automobile manufacturer. As of August 2008, Honda

surpassed Chrysler as the fourth largest automobile manufacturer in the United States. Honda is

the sixth largest automobile manufacturer in the world.

Honda was the first Japanese automobile manufacturer to release a dedicated luxury

brand, Acura in 1986. Aside from their core automobile and motorcycle businesses, Honda also

manufactures garden equipment, marine engines, personal watercraft and power generators,

amongst others. Since 1986, Honda has been involved with artificial intelligence/robotics

research and released their ASIMO robot in 2000. They have also ventured into aerospace with

the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 Honda Jet,

scheduled to be released in 2011. Honda spends about 5% of its revenues into R&D.

Overall Marketing Strategy

Location

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Location is very much important for all business. Every business has to be located somewhere.

For our industry setting up we choose Gazipur. It is the most suitable site to establish the

industry. Here land is available and communication is good. Around the region there are many

industries .That’s why skilled workforce is also available.

Cost of site is important factor for choosing business location. Our place will be Gazipur which

is near by Dhaka city. We will bring the raw materials through ships. The packaging system will

be cartoon Pallets, Wooden Crates. Payment will be T/T remittance or L/C at sight. First the raw

materials will reach in Chittagong port .we will rent some trucks to bring them to the factory.

We take the complexities involved with recording time and attendance transactions, scheduling

diverse workforces, and managing employee. Skilled and cheap labor is available in our country.

Our plan is hire the best people and make smarter decisions. Our place wills gazipur which is

little far from dhaka. So as an employee’s facility we will provide house facility because at the

time of work schedule employees can able to attend the job.

Automobiles have a major impact upon the environment. From automobile industry Oxides of

Nitrogen (NOx), Volatile Organic Compounds (VOC), Carbon Monoxide (CO), Particulate

Matter (PM10) is air pollutant which damages the respiratory system and injures plants. So we

have selected our automobile industry in such a place which is far from the society.

Infrastructure covers the modes of transport for people, materials and information. Businesses

need to ensure there is adequate infrastructure provision or costs can rise, such as extra transport

costs. It is the government that is largely responsible for providing and maintaining local

infrastructure. The key infrastructure considerations are:

Road/rail/sea and air links:

Gazipur is near Dhaka city and has better road facility and it’s near by airport.

Communications network:

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Gazipur has strong mobile network facility that’s why we can easily communicate others.

Access to basic facilities

Basic facility means gas, water, electricity etc. all these basic facility have in gazipur.

In the past few years, Bangladesh has been rapidly developing its highway system. Our show

rooms will be situated at Mohakhali, and Gulshan. The communication is so smooth is

responsible for many of the upgrades that are expected to make highway more automated,

minimizing the loss of goods and time while helping Customs collect more accurate tariffs

Cars require a lot of space. At Gazipur land is available. If we need land to extent our business in

future we will get available land.

IMAGE

Company Name:

Company name is very much important to build the company image. An stylish,

attractive name can strongly make the image. So we are trying to make a stylish

name. so we will introduce our company name is HAMNZ.

The diagram will be –

Logo

The logo (ideogram), is the image embodying an organization. Because logos are meant to

represent companies' brands or corporate identities and foster their immediate customer

recognition, it is counterproductive to frequently redesign logos.

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logo is one of the brand identifier of the product or services. So we makes their stylish logo for

developing image.

Logo: HAMNZ

Slogan

Slogan: an attractive slogan can develop the company image. HAMANZ, our company will

introduce a attractive slogan. The slogan will be

“Performance that you can trust”.

Publicity

Visiting Cards

We will also use visiting card for our publicity for developing our (HAMNZ) image.

Besides, all these we will also create publicity of our business by following ways-

Event sponsorship

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Make an analysis or prediction

Conduct a poll or survey

Celebrate an anniversary

Stage a debate

Organize a tour of our business or projects

Issue a commendation

The advantages of publicity are low cost, and credibility (particularly if the publicity is aired in

between news stories like those that on evening TV news casts). New technologies such as web

logs, web cameras, web affiliates, and convergence (phone-camera posting of pictures and

videos) to websites) are changing the cost-structure. The disadvantages are lack of control over

how our releases will be used, and frustration over the low percentage of releases that are taken

up by the media.

Customer Service

Now a day’s competitive business is coming rapidly. All the service are same but if more

attractive service will offer to the customers, then company image will develop swiftly. So we

(HAMNZ) will try to provide long term warranty, car loan facility, hand free set up,

computerized check up etc.

The actual quality of the service performed

HAMNZ is a new innovate company. So we introduce a newly car which is low oil

efficiency and after accident this car will not crash before fifteen munities. This car

can able to run CNG gas. As a result this car will not provide bad affect of our

environment.

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Advertising and promotion

Advertising

• Advertising will humorously and subtly communicate to urban young adults in the age group of

20-45yrs, single/newly wedded with or without children, equipped with pursuing a college

degree, starting a career/family who are savvy consumers with active lifestyles, in the process of

establishing identity and receptive to new ideas that we (HAMNZ) provides an unbeatable

combination of style and substance. Advertising Theme will reflect the creative corruptions of

language used by young adults today; youthful and attention grabbing slang words specially

coined for the Toyota Matrix will be used to convey product benefits; since the Matrix is like no

car anyone has ever seen before, this campaign will describe it with words no one has ever heard

before.

Media Usage

Print

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Print adverts will be placed in quality newspapers and esp. Additional ads are placed in

car industry magazines and those read by the target group. Titles identified to read by the

target audience: Daily Telegraph, The Times, The Independent, Financial Times, New

Scientist, Auto Express, Car, What Car etc. Quality Daily Newspapers (Times,

Telegraph, Independent, Daily Mail), Stuff, New Scientist, Trade Press, Car Magazines,

Bill board

Outdoor billboards should be placed in urban areas to reach the broad audience of car

drivers at a low cost. Placing these at busy junctions will complement TV and print

advertising and be visible where the Prius is of best use: on the street. One of advantage

of bill board if any one miss the TV ads, they will take the message about their car by the

bill board.

TV

As everybody know that TV is the most common entertaining medium so TV

commercials is one of the most attractive way of doing advertisement so HAMNZ will

give TV commercials on different channels. TV is a favorite medium because of its wide

reach and its high impact that is useful for showcasing a high impact product such as a

car. The volume of TV ads however is limited by its costs but popular target group

programs (consult research) and times should be used as extensively as possible.

Identified TV stations: BCC Three, Discovery Channel, program sponsor.

FM Radio

Radio advertising might be useful. The Prius should be visible to make sure the audience

understands that it is a modern and full car.

Other

Intensive use of the internet, possibly WAP (internet over the mobile), heavy cinema

goer, little radio (has mp3 CD-player in car, or listens to internet radio), direct mail etc.

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Sales Promotion

Samples

A small amount of a product will offer to selected person for trial when launch the product rather

they used advertising specialty tool. For example, we can give car of most popular racing

competition F1 (formula 1).

Coupon

HAMNZ occasionally will use this type of promotional activities whenever they realize their

sales need to be increased. For an instance they arranged a promotional event, which had the

chance to win a free trip to Singapore, Kuala Lumpur and Katmandu. Time to time, we strive to

come up with such kind of promotional campaign.     

Price pack

Reduce the price that will mark by the producer directly on the label or package. HAMNZ most

effective sales promotion will rely particularly on this type of tool. For an example, if any one

buy HAMNZ car at the cash price, he/ she will get a price reduction offer.

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Premium

HAMNZ occasionally will offer some kind of gift for free under the car industry line. For an

instance, in its initial stages we will offer one good-looking key box, totaling bags, car cover,

glass cleaner, engine oil etc.

Point of purchase

Display and demonstration that take place at the point of purchase or sale. HAMNZ will make

some kind of agreement to some of selling pints, popular shopping mall, etc to display its demo

product or demonstration.  

Promotional Activities for Dealers

HAMNZ will offer several promotional activities. These are described as follows:

Opener

HAMNZ will offer this promotional activity to the traders for the goodwill of their company.

Actually they keep this offer all year long.

 

T-shirt

As a beverage company HAMNZ will offer this promotional activity to the traders. Moreover, T-

shirt is also a good advertising media.

 

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Policy of Pricing

Pricing plays a central role in economics. It balances demand and supply, provides an incentive

for new players or products, and distributes income between buyers and sellers. Therefore

pricing has a direct impact on the profit of our company, and on all other elements of the

company. However, it is one of the most overlooked and poorly understood areas of marketing.

From HMANZs’ perspective, price and sales volume of its products are the single most

important decisions. Ultimately, the higher the price can be raised, assuming stable unit costs and

sales volume, the higher the profit. The relationship between these is represented by:

Profits = Prices x Quantities Sold - Total Costs

Price is also important in relationships with customers. Price is the value placed on what is

exchanged, and the value at which a seller is prepared to exchange, and customers participate in

that exchange. Something of value is exchanged for satisfaction or utility.

The major objective of the pricing of products is product leadership in local market.

Some of the factor to be considered before setting up the prices is:

Determine primary and secondary market segments: Determining primary and

secondary market segments help us better understand the offering's value to consumers.

Segments are important for positioning and merchandising the offering to ensure

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maximized sales at the established price point. For this reason, we determined the primary

and secondary market segments before setting the price.

Costs: In order to make a profit, a business should ensure that its products are priced

above their total average cost. In the short-term, it may be acceptable to price below total

cost if this price exceeds the marginal cost of production – so that the sale still produces a

positive contribution to fixed costs. Before setting the final price, we have considered the

cost of raw materials, components and other supplies and cost of operating expenses like

salaries of employees, equipment repair, depreciation, office expenses, insurance,

accountant/ lawyer fees, taxes, etc.

Competitors: If the business is a monopolist, then it can set any price. At the other

extreme, if a firm operates under conditions of perfect competition, it has no choice and

must accept the market price. The reality is usually somewhere in between. In such cases,

the chosen price needs to be very carefully considered relative to those of close

competitors. In addition, the company’s pricing strategy may affect the nature of the

competition it faces. We need to benchmark our costs against our competitors’ costs to

learn whether we are operating at a cost advantage or disadvantage. We also put

emphasize on the price and quality of each competitor’s offer. We are always aware of

competitors’ prices and offers. We can use them as starting point for our own pricing. In

addition, we have to keep in mind that our price is closer to the competitors’ pricing or

lose sales. Therefore, basically, we use price to position its offer relative to the

competition. As we are in perfect competition, so we have considered the competitors

cost, prices and offers to determine the price of our product.

Customers: Consideration of customer expectations about price must be addressed.

Ideally, a business should attempt to quantify its demand curve to estimate what volume

of sales will be achieved at given prices. Demand set a selling on the price that the

company can charge for its product. And company cost set the floor. We want to charge a

price that earns its cost of producing distribution and selling the product including a fair

return for its effort and risk

Pricing Objectives

The feasible pricing objectives of HMANZs’ include:

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To exploit our profits

To achieve a target return on investment

To achieve a target sales figure

To achieve a target market share

To match the competition, rather than lead the market

Price of Products

Product Price

1. Cars

2. pasero

10,00,000

15,00,000

SWOT Analysis

Strength

first local brands

Attractive Reasonable price

Reliable and High Quality Image

Weakness

Understanding of international market/ culture

Distribution network/ car dealer

Prestige/ image when compared with other brands.

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No market share

Opportunity

BD market,

Hybrid technology

Introduction of new models

Online activities, online buying

Threat

Strong competitors in every segment;

Ford, GM, VW, Mercedes, BMW,

Honda

Alternative transportation

Heavy taxation/ fuel prices increase

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Product Life Cycle

The conditions a product is sold under will change over time. The Product Life Cycle refers to

the succession of stages a product goes through. Product Life Cycle Management is the

succession of strategies used by management as a product goes through its life cycle.

A product life cycle is characterized by specific stages of HAMNZ, including research,

development, introduction, maturity, decline, and obsolescence. Each stage in a product's life

cycle is often linked with changes in the flows of raw materials, parts, and distribution to

markets. Conventionally, four main stages compose a product's life cycle:

Fig: Product Life Cycle of Arctic

Introduction

This stage mainly concerns the development of a new product. From the time it was initially

conceptualized to the point it is introduced on the market.

In the introduction stage, a company can take any of the following strategies:

PR

ICE

PROMOTION

Low

Low

High

High

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Marketing Strategies in the Introduction Stage

1. Rapid Skimming Strategy: HAMNZ will follow this strategy for the existing products

as public is aware about that. HAMNZ will need high promotion and will charge high

price for the product that will be new.

2. Slow Skimming Strategy: If public is aware about the product and at the same time

they are not price sensitive about the product a company can follow this strategy.

HAMNZ will follow this strategy for the existing products that are expensive. HAMNZ

will need low promotion and will charge high price for the product.

3. Rapid Penetration Strategy: Public is unaware but price sensitive about the product.

HAMZN will follow this strategy for the new products that are cheaper than others are.

That is why it will need high promotion and will charge low price for the product.

4. Slow Penetration Strategy: Public is aware and at the same time price sensitive.

HAMZN will follow this strategy for the existing products that are cheaper. HAMNZ will

need low promotion and will charge low price for the product.

Method of selling and distribution

1.

Rapid Skimming

Strategy

2.

Slow Skimming

Strategy

3.

Rapid Penetration

Strategy

4.

Slow Penetration

Strategy

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A channel of distribution comprises a set of institutions which perform all of the activities

utilized to move a product and its title from production to consumption. In other words,

distribution includes the entire process of moving the product from the factory to the end user.

The type of distribution network the business chooses will depend upon the industry and the size

of the market.

There are several types of distribution system. One is direct distribution system and another is

indirect distribution system. For HAMNZ, we will use both the systems.

Direct Distribution System

With a direct distribution system, we will reach the intended final user of our product by

distributing the product directly to the customer. That is, there are no other parties involved

in the distribution process that take ownership of the product. 

Indirect Distribution System

With an indirect distribution system, we will reach the intended final user of our product

with the help of others. These resellers will generally take ownership of our product, under

this system; intermediaries may be expected to assume many responsibilities to help sell the

product. By the NAVANA Automobiles Company and RANGS motors, we jointly sell our

product.

Sales and credit terms

Generally, sales will be made for cash. And no discount will be offered except the first year.

Renowned export companies will be allowed to buy in credit but the credit period will be only

for 1 month. Our sales agents are NAVANA and RANGS motors. They will sell our product.

After selling the product they have to pay within 30days.

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Other Marketing Strategy

We can follow another three marketing strategies to grow our business:

(1) Increase the number of customers

(2) Increase the average transaction amount, and

(3) Increase the frequency of repurchase.

Every marketing strategy should be measured by its ability to directly influence and improve

upon each of these three factors.

Increasing only one factor will produce linear business growth. Increasing all three factors will

produce geometric business growth.

1. Increase the number of customers

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There is no denying that customers are very important to any business. Without an adequate

number of people purchasing the goods and services sold by a business, there would not be any

need for the business, and they would soon be out of business.

Increasing the total number of customers is the first step that we are taking to grow their

business. Losses can occur when inexperienced sales personnel are put in charge of designing

and implementing a marketing program - investing corporate resources to find more

customers.

Executed correctly, basic marketing strategies cost efficiently produce new prospects that are

ready, willing, and able to buy products or services. The main purpose of a marketing

strategy is to give sales personnel prospects to convert into paying customers. Rewarding

existing customers for referring new ones is one easy step business owners can take to

increase their total number of customers.

We can use the following methods to increase the number of our customers:

Increase our Conversion

Increase the conversion ratio of prospects into paying customers. We can develop our

sales skills, our word tracks, and our scripts. Moreover, we can even upgrade or

attract a better quality of prospects that would be more likely to buy our products.

Have Reward Programs

We will establish Referral Reward Program for our customers who take the time and

make the effort to tell others about the advantage of buying our products. Simple

things like movie passes, restaurant gift certificates, car washes, manicures, or

samples of some of the additional products or services we provide make good

choices. The reward for a referral should be perceived as high value to our customer,

but low cost to us.

Contact past Customers

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Reactivate former customers. Every company, including ours, has former customers –

those who used to do business with them but for one reason or another have stopped and

are now doing business with a competitor, or maybe not even using our products or

services any longer.

It’s often much easier and less expensive to sell something to someone who has done

business with you in the past – someone who has already experienced the service, quality,

convenience, terms, and relationship we have to offer, than it is to create a completely

new customer and build that trust and credibility from ground zero.

Establish Joint Ventures

Establish joint venture arrangements with centers of influence. Find people or companies

who have already spent considerable time, effort and money establishing and building

relationships with customers who are of the same buying profile as the customers we are

targeting. Then we will work out reciprocal arrangements with those businesses to refer,

endorse or suggest that their customers consider certain products or services offered by

our company.

2. Increase the average transaction amount

Businesspersons spend most of the time operating the business and searching for new

customers. They often overlook the customers they see regularly. These repeat customers are

usually taken for granted and left to conduct entire transactions without ever being asked if

they would like to buy more product or service.

Complacency, expecting customers to buy a minimum amount of product without ever being

asked to buy more, can be the undoing of a business. This attitude can eventually cause

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customers to spend less money. Customers who are not continuously offered compelling

reasons to keep buying more of the same products and services from one business will look for

new reasons to buy from another.

Cross selling and up selling, systematically offering customers more value via additional

products or services at the point of sale, are two simple steps we can take to increase our

average transaction amount.

3. Increase the frequency of repurchase

In an established business, an average customer-purchasing pattern develops and (like the

average transaction amount) is usually taken for granted and rarely improved upon. A

customer’s repeat business is earned by the business that gives the customer what they want.

Without having basic marketing strategies or processes for consistently offering customers

more of what they want, repeat business is earned less frequently.

Frequently communicating news and offers to past and present customers via telephone or mail

generally increases their frequency of repurchase and is one more step owners can take to grow

their business.

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Description of Premises and Facilities

Office building is one of the vital aspects for every organization. HAMNZ factory will be

located at Gazipur. Our office premise will be about 3000 square feet. The building will be of

three stories, with a basement for parking. Our production premise is about 12000 square feet

and from the entrance, we have a strict security system. Thought the allowed persons have their

punch cards for their entrance. Moreover, beside that our production and equipments which helps

to carry out the production smoothly. The ground floor of the factory building will have our

reception on the left hand side and security room on the right hand side. Behind the security

room, there will be our prayer room for both gents and ladies, which is inaccessible inside

consequently. Rest of the floor will be again divided into four main parts: one is for canteen

another, one is for finance and accounting department, and one is for human resource department

and marketing department. Another one is for meeting room and managing director room.

The basement of the building will be only for car parking.

The ground floor of the building will consist of security room, prayer room. This prayer room

will be divided mainly into two parts: one is for gents and another one is for women. There will

be a reception room. And just beside of the security room there will be our production and

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equipments for ice cream, which helps to carry out the production smoothly.

The 1st floor of the building will be kept for our common canteen for all the employs are

working inside.

The 2nd floor of the building will be kept for finance and accounting department. This floor is

divided in mainly two parts finance and accounting department. In this floor there will be three

rooms finance manager, cash accountant, accountant.

The 3rd floor of the building will be kept for human resource and marketing department. In this

floor there will be six rooms. These ten rooms are for human resource manager, human resource

executives, assistant human resource manager, marketing manager, and sales representatives and

media consultant.

The 4th rd floor of the building will be kept for managing director’s room and conference room.

Production Methods and Equipment

HAMNZ will be the first local automobile company. Mainly our product will prepare by the

imported parts from different countries. Our main work is to assembling the car. Our assembling

method is showing below by the graph:

Euipments

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Driver can put the pedal to the metal and go from zero to 60 in about 8 seconds. The car engine

is a piece of engineering genius and one of the most amazing machines we use on a daily basis.

When people talk about race cars, or high-performance sports cars, the topic of turbochargers

almost always comes up. Turbochargers use some very cool technology to make an engine more

powerful, but the concept is really quite simple..

Automatic transmissions take the work out of shifting. A truly amazing mechanical system, the

automatic transmission in a car accomplishes everything a manual transmission does, but it does

it with one set of gears.

In a regular transmission, the gears are literal gears -- interlocking, toothed wheels. Continuously

variable transmissions, on the other hand, don't have interlocking gears. The most common type

operates on a pulley system.

All of the power generated by a car engine is useless if the driver can't control the car. The job of

a car suspension is enormous: maximize the friction between the tires and the road surface,

provide steering stability and ensure the comfort of the passengers.

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Self-inflating tires perform two crucial functions: They automatically maintain ideal tire pressure

for safety and performance in standard conditions, and they allow the driver to alter psi on the fly

to adjust to changing terrain.

After assembling car in blue print

After Assembling Pesaro in Blue Print

Sources of supply

All these equipments will buy from different Countries. Maximum materials will collect from

Japan, Chain, India.

HAMNZ is going to launch high quality car and Pesaro. For this reason we will use modern

equipment & technology. HAMZN wills procure machineries from abroad.

China

Japan

India

Machineries which will be used in production will be used in production will be procured form

America and Japan Designing machines will be procured from China & Japan.

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Ownership

Among the total investment are supplied by its owner. They are equally responsible for good and

bad position of the firm.

Legal Document

Partnership is the relation between persons, who are agreed to share the profits and losses of a

business carried on by all or any of them acting for all. It has three essential elements:

a) There must be an agreement entered into by two or more persons.

b) The agreement must be to share the profits and losses of a business.

c) The business must be carried on by all or any of them acting for all.

Considering all the above elements, we, the five energetic entrepreneurs are taking part to

introduce “HAMNZ automobile. It is an equal partnership business.

Name and Address of the Company:

“HAMNZ Automobile Industry”

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72/A, Mohakali, Dhaka

The Type of the Business

Assembling and Selling automobile.

Investment

The total amount is Tk. 10, 000, 0000. The amount of investment by each partner is Tk. 1000,

0000 each. 60% investment will take from the partners and 40% investment will take from the

bank.

Profit and Loss Sharing

The profit and losses will be shared equally among the partners.

Partners’ Withdrawal

Each partner can draw 70% of their income and remaining 30% will go to retained earnings.

Duties and Responsibilities of Partners

The important duties of the partners are summarized below:

Justice, authenticity: True accounts, Full Information: Partners are bound to carry on

the business of the firm to the greatest common advantages, to be just and faithful to each

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other, and to render true accounts and full information of all things affecting the firm to

any partner or his legal representative. Sec-9

Equality of losses: Subject to any contract to the country, partners are bound to pay the

losses of the firm equally. Sec- 13(B)

No private benefit: A partner cannot use the partnership properties directly or indirectly

for his own benefit.

NO secret profit: If a partner carries on any competing business of the firm, s/he shall

account for and pay to the firm all profits made by him on the business. Sec-16 (B)

Unlimited liability: Every partner is liable for the acts of the firm done while s/he is a

partner. The liability is joint and several. Sec-25

Decision Making and Authority: Decision making for every possibility each partner

contributes to provide opinions without any hesitation and decision will take by the group as a

whole. Every partner has some right to act on behalf of the firm. He/She has express and implied

authority..

Dissolving Process: Each partner has a chance to write down, the name of his authorized

nominee (Wife, children, or third party). If anyone become disabling or incase of death, the

authorized people will get the amount of the invested money. As well as this contract will be

broken down. The third party will not be treated as a partner.

Process for Expelling: If any one become accuse of doing a bad situation, he must be

punished based on the intensity of the impact. If it is high, he should be expelled from the

business and this contract will be isolated.

Others:

Transfer of Ownership: If any partner wants to transfer his/her ownership the ownership must

be transfer to other owners.

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Regulations of the Business:

Business Registration: HAMNZ automobile industry partnership agreement will be

registered by the authorized register.

Licensing Requirement: Before doing this, HAMNZ automobile Industry will complete

the licensing requirement by the concerned authority.

Income Tax: All individuals of this partnership business are liable for payment of income

tax by maintaining government regulations in regarding sector.

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WITNESSES: EXECUTANTS:

1. Signature: Signature:

Name: Name:

2. Signature: Signature:

Name: Name:

3. Signature: Signature:

Name: Name:

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4. Signature: Signature:

Name: Name:

5. Signature: Signature:

Name: Name:

Organizational Structure

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Key Personnel

Responsibility of the personnel

Key Responsibilities of each key personal are stated below:

1. CEO:

The CEO’s first responsibility is to welcome new employees aboard. He must possess all

the responsibilities in orienting the employees about the organizational culture, assigning

the tasks to each employee and from time to time reminding the employees about the target

and mission of HAMNZ. This director’s responsibility will be to plan the total human

resource recruiting, compensating, and promoting.

2. Director, Marketing:

The main duty of this director is to design the total marketing plan. It will include preparing

the promotional plan, taking care of the public relations and also making the sales plan. The

manager will possess the responsibility of designing the total marketing mix and also

planning all the strategies related to securing a greater share of the market.

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3. Director, Finance:

The responsibility of the finance director will be to prepare the total expenditure and also

prepare the financial statements, and plan the projection of all costs and revenues.

4. Director of purchase:

The responsibility of the purchasing director will decide the purchase related decision.

5. Director, Sales:

This director will have to plan the total Sales process. It must be ensured by the director

that the demand of the customers is met at the right time. Therefore, stock must be there at

the right time and in the right order. It must also be checked that wastage does not occur

and quality of materials is mentioned.

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Formulation of Work Policy

We have formulated a written work policy for the employees of our farm. These policies are

related with the betterment of the employees as well as the farm. The elements we should cover

through the work policy are given below in details –

Working Hours:

Every employee has to work 6 to 8 hours. The time of work depends on work requirement.

During the time of production and sales, employees have to work more. But it will not

exceed the work schedule of 8 hours.

Safety:

Some work of automobile industry is very much dangerous. That’s why we have 24 hours

doctors for primary treatment. For advance security we have good fire stopping system

machine.

Benefit:

Free Treatment - Every employee will get the benefit of free treatment up to a specific

level. To provide this benefit, employees will get a fixed amount with the consent of the

management.

Food - Employees get the food facility. Which is totally free of cost.

Vacations:

Every employee will get a vacation. Every employee will get 45 days vacation in a year.

Employees will get government holiday. If any one takes extra work, he/she will get double

bonus.

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Training:

In the top level, most of the employees are skilled and experienced. But for fresher, who do

not have any experience, will get 6 month training. The lower level employees will be trained

by managers, under whom they work. They do not need any special training session like top

level employees.

Personnel Welfare:

Housing - There is a small quarter for the employees. Management provides them this

housing facility in free of cost.

Profit Sharing - When the production level will be good enough, then only labors will get a

special bonus as a part of the profit.

Termination:

If an employee does any unethical activity, then s/he might be terminated depending on the

situation. But, the employee should get the termination notice before 7 to 15 days of the

termination.

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Staffing plan

Staffing is one of the most critical elements of a project’s success. Without staff, there is no

project. Once we have defined the project and are clear about at least some of the project’s initial

tasks, we can define our staffing needs. Staffing is now considered a key element of the business

planning of innovative organizations. Staffing is now being approached in a holistic manner by

progressive organizations. Executives realize that hiring talented people is fruitless unless

employee needs are developed; employees are rewarded for their efforts, and, like all precious

assets, are retained. They also realize the quality of the individual hired and level of “fit”

between the individual and the particular job will determine the difficulty of effort required to

develop, reward, and retain.

By shifting the order and priority of Staffing to the forefront, organizations can ensure they have

staff to make sales, to achieve response time targets, and satisfy customers. In short, to elevate

staffing to a strategic level requires real, concrete action, not just lip service. In some

organizations shifting the priority of staffing to the forefront may require a change in mission,

objectives, personnel and even management structure.

For our automobile company, we will require employees of various qualities and experiences.

However majority of the employees will be with the managerial background and technician to

support various technological services of the company. The list of required number of employees

along with their designation, salary structures, required qualifications and experiences are given.

The designations are listed in descending order in terms of their organizational hierarchy in these

tables.

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List of Required Number of Fulltime Employees & their Compensation

The following table shows the educational background, experience and qualification required by

the employees.

POSITION EDUCATIONAL

BACKGROUND

Experienc

e

OTHER QUALIFICATION

HR Manager MBA

(Major in HR)

7yrs Excellent interpersonal communication

skill, excellent leadership.

HR Executive BBA(Major in HR) 5 yrs Managerial experience.

Marketing Manager MBA(Major

Marketing)

10yrs Innovative and hard working

Sales Executive M Sc / B Sc 4 yrs Good command in English

Sales Representative Graduate in 3 yrs Command over Ms office

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Marketing

Media Consultant Graduate 2 yrs Good Command Over English

Finance Manager MBA, Major in

finance.

8 yrs Experience as a Decision provider,

financial analyst.

Cash

Accountant

FCA, CA From any

renown firm

5 years High expertise.

Accountant BBa or MBA, Major

in Accounting.

3 years Skill in accounting terms.

Sales manager MBA 7 yrs Excellent interpersonal communication

skill, excellent leadership.

Purchasing Manager MBA (science

background)

3 years Science Background

Supervisors Bachelor Degree 3 years Good knowledge about agricultural

business.

Qualification required for full time employees

Recruitment

This is the process of discovering potential candidates for actual or anticipated organizational

vacancies. Employees can be recruited from internal search and/or from external search.

However, HAMNZ will be recruiting through external search. External search can be done

through advertisements in newspapers, employment agencies, colleges and universities and from

other professional organizations.

The recruitment process of HAMNZ will start by giving advertisement in newspapers, where the

applicant will be told to collect application form from the main office in Gulshan. The applicant

will have to fill the application form and submit it along with a cover letter and curriculum vitae.

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The search for employees can also be done through online employment agencies like bdjobs or

in prothom alo jobs.

Circulation can also be done in colleges and universities.

Selection

Selection activities follow a standard pattern, beginning with an initial screening interview and

concluding with the final employment decision. The selection process for HAMNZ will follow

the steps given below:

Preliminary Screening – The first step in the selection process whereby job inquiries are

sorted. This will consist of two steps: screening inquiries, and screening interviews. The

applications will be screened and sorted, and then the selected applicants will be called for an

interview, and the final applicants will be screened and selected from the final interview.

Final Selection – The final candidates selected will be therefore, be assigned their work.

Employment Test – After the employees are selected, they will have to go through an

employment test. This is not applicable for the blue collar workers but mandatory for the

white collared employees and for the sales assistants and the cashiers.

Supporting professional services

Our land is situated beside a government cannel. So we have to very careful about project.

Different laws and government order should be implied on us. So we need to have some good

quality of lawyer who will defend all legal problems related with our project. The names of our

lawyers are –

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MD. Subroto Saha

[Senior lawyer, Supreme Court.]

MD. Farzzad Mahmud

[Lawyer of international court.]

We need bank loan for our project. It is a big project and we need at lest 40% of total investment.

HSBC and Standard Chartered Bank are agreeing to sanction a loan of tk. 200,000 as loan. So

the banks address is:

HSBC Bank

122/12, Foreign Exchange Branch, Dhaka

Standard Chartered Bank

79/B, Motizheel C/A, Dhaka

Management assistance and staff training

Management must have the ability to make the most of a company's opportunities. Our goal is a

management team that is both "great" and "good". Great managers recognize the power of

competitive advantage, and are fanatics in protecting and even improving their advantages. They

understand the importance of effective capital allocation — namely, how they should be

spending the company's money.

A sound management might not run without trained and experienced people. Skillful people are

the key to development. In our company, we will provide the necessary assistance to our

employees as well as the training that they will require to perform their jobs appropriately.

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Training, in the most simplistic definition, is an activity that changes people’s behavior.

Increased productivity is often said to be the most important reason for training. However, it is

only one of the benefits. Training is essential not only to increase productivity but also to

motivate and inspire workers by letting them know how important their jobs are and giving them

all the information they need to perform those jobs.

The employees of the HAMNZ automobile Company will be benefited from the staff training in

the following ways:

Increased job satisfaction and confidence

Increased motivation

Increased efficiencies in processes, resulting in financial gain

Increased capacity to adopt new technologies and methods

Increased innovation in strategies and products

Reduced employee turnover

Staff training development is an essential preliminary strategy to avoid problems through

proactive planning. This may involve formal and informal in-service training, individual

consultations, and teacher support groups. It is designed to assist employees in acquiring better

skills for their current job. Every organization need well adjusted, trained, and experienced

people to perform its activities. As jobs in today’s dynamic organizations have become more

complex, the importance of employee education has increased. Human errors could be prevented

or significantly reduced by better employee training.

Employee training is a learning experience; it seeks a relatively permanent change in employees

that improves job performance. Thus, training involves changing skills, knowledge, attitudes, or

behavior. This may mean changing what employees know, how they work, or their attitudes

toward their jobs, coworkers, managers, and the organization.

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In our company, when employees will be selected for specific positions, they will first of all be

oriented with the organizational culture, motives, mission and long range plans. They will be told

what they have to do and what the organization expects from them. They will be well trained for

giving the best in their job that will be in synchronization with the organization’s mission.

After this, the employees will be well fit for their job. But after every 6 months the employees

will be retrained for many reasons. The first reason is that, organization rules may change, and

even the plans. This might require for the employees to change the way they work. So, they must

be well infested with the new plans, which they would apply in their work. The second reason is

that modern technologies might be adopted. So, employees will have to know how to get along

with the state-of-the-art technology, so that they are not completely exposed to something they

are not adapted with.

Long Range Plan

After we will achieve our break even, then we are going to expand our business. We will try to

reach more customers by expanding our product line. We will also try to achieve large market

share.

Our long range plans can be stated as follows:

Introduce more Feature and design of our product.

Establish our brand name in the international market.

Import some advanced equipments and machinery.

Be leader of the local industry and global world.

Expand geographic distribution.

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Increase the number of employees.

Export our products to foreign markets.

Build customer royalty.

Introduce new distribution channels.

Moving into new market segments that offer improved profits

Critical Risk Segment

HAMNZ is a new company, so we have lots of factor we have to be considering as risks. Risk

could be arising from both internal and external factors.

Factors that will affect the business

Factors can be divided in to two categories-

(1) External factors: External factors include-

-Demand (increase/decrease)

-competitors activities

-strike

-New competitors

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-Supplier problems

-Change in technology

-Weather

-Political situation

Among these factors some are partially controllable but others are uncontrollable. Factors that

can be partially controlled-

Strike

Supplier problems

Change in technology

If there is a work strike takes place management can reach in an agreement with workers & can

settle down the problem. If there is a problem with Suppliers Company can diversify the source

of suppliers. If technology Changes Company will take attempt to adapt such technology.

(2) Internal factors: Internal factors include-

-Decrease in sales

-Products become old/ common

-Quality of products

-Production capability

- Efficiency of workers

-Equipment condition

-Generating new ideas

-Managing employees

-Inventory (level decreases/ increases)

-Purchasing policy (term & condition)

-Increase in production cost

-Methods followed

-Sales activities

-Promotional activities

-Motivational activities

-Labor problems (strike, work, union)

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HAMNZ will have a possibility plan to deal with risks which are most significant.

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Estimated market share

Toyota is a market leader of automobile industry. But HONDA, TATA, Mitsubishi, is grown up

day by day.

Analyzing the market size and characteristics, we have estimated that at the beginning we will be

able to acquire 6% market share. After 5 years, we will be able to acquire 16%-18% market

share.

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Sales Forecasting

A sales forecast is a prediction based on past sales performance and an analysis of expected

market conditions. It is the process of organizing and analyzing information in a way that makes

it possible to estimate what our sales will be. The true value in making a forecast is that it forces

us to look at the future objectively. The company that takes note of the past stays aware of the

present and precisely analyzes that information to see into the future.

Conducting a sales forecast provides our business with an evaluation of past and current sales

levels and annual growth, and allows us to compare your company to industry norms. It also

helps us establish our policies so that we easily can monitor our prices and operating costs to

guarantee profits, and make us aware of minor problems before they become major problems.

Since the forecast is based on our company's previous sales, it is necessary to know our dollar

sales volume for the past several years. To complete a thorough sales forecast, we also need to

take into consideration all of the elements, both internal and external, that can affect sales.

Mathematically, it is possible to forecast sales with some precision. Realistically, however, this

precision can be dulled because of external market and economic factors that are beyond our

control.

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The following are some of the external factors that can affect sales:

Seasonality of the business

Relative state of the economy

Direct and indirect competition

Political events

Styles or fashions

Consumer earnings

Population changes

Weather

Productivity changes

Holidays

Special Event

External labor events

Family formations

Births and deaths

Consumer earnings

Weather

Sales forecasting requires sufficiently detailed analysis of both the external and internal

factors related to the sales function. Internal factors that can affect sales are somewhat

more controllable, such as:

Labor problems

Credit policy changes

Sales motivation plans

Inventory shortages

Working capital shortage

Price changes

Change in distribution method

Production capability shortage

New product lines

Product changes, style, quality

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Service changes, type, quality

Shortages, production capability

Promotional effort changes

Sales Forecasting for a New Business

As we are going to start a new business, so we should follow the following steps:

Step 1

Develop a customer profile and determine the trends in our industry.

We have made some basic assumptions about the customers in our target market. Experienced

business people told us that a good rule of thumb is that 20% of our customers account for 80%

of our sales. If we can identify this 20% we can begin to develop a profile of our principal

markets.

Sample customer profiles:

Male or female?

Young, middle aged or older?

Tradesperson or professional?

From low, middle or upper income group?

Step 2

Establish the approximate size and location of our planned trading area.

We have used available statistics to determine the general characteristics of this area. We also

have used local sources to determine unique characteristics about our trading area. Estimating the

number of individuals or households has been done with little difficulty using Statistics census

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data. Statistics Survey of Family Expenditures can identify what the average household spends

on goods and services.

Neighborhood business owners, the local Chamber of Commerce, the Government Agent and the

community newspaper are some sources that ahs gives us insight into unique characteristics of

our area.

Step 3

List and profile competitors selling in our trading area.

We got out on the street and studied our competitors. We also visited their stores or the locations

where their product is offered. We have Analyzed the location, customer volumes, traffic

patterns, hours of operation, busy periods, prices, quality of their goods and services, product

lines carried, promotional techniques, positioning, product catalogues and other handouts. We

have also talked to customers and sales staff.

Step 4

Use our research to estimate our sales on a monthly basis for our first year.

The basis for our sales forecast can be the average monthly sales of a similar-sized competitor's

operations that are operating in a similar market.

We have considered how well our competition satisfies the needs of potential customers in our

trading area. We determined how we fit in to this picture and what niche we plan to fill. We have

made sure that we well offer a better location, convenience, a better price, later hours, better

quality and better service. We have considered population and economic growth in our trading

area.

Using our research, we made an educated guess at our market share. We expressed this as the

number of customers we can hope to attract.

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Sales Plan for 12 Month

Sales Plan for 12 Months Quantities per Month

Product Price Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

1. CAR 10,00,000

3 3 3 3 4 4 5 5 6 6 8 10

2. Pesaro 15,00,000

1 1 1 2 2 3 4 4 4 5 5 8

Five Years Sales (in Taka)

Products Year-2010

Year-2011

Year-2012

Year-2013

Year-2014

1Car 6,000,0000 6,50,00,000 7,000,0000 8,000,0000 10,000,0000

o Pesaro 6,000,0000 66000000 750,00,000 90000000 10,50,00,000

o

Determining Cash Requirements

Investment

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The projected cost of this business is Tk. 100,000,000. The partners of this project will invest

10000000 tk. and rest of the invest will collected from bank

Cost of this Project

The major cost of the project is the acquisition cost of Land, Building, Machineries, and

Equipments. The land has been purchased for the business.

The amount of cash that would be required to start our business depends on the initial

investment, which comprises of the following items:

Cost of Setting up the Project

ITEM TAKA

Land 7,000,000

Building &

infrastructure

1,20,00,000

Machineries 60,00,000

Equipment 5,50,00,000

Furniture 20,00,000

Inventory 29,70,000

Telephone 30,000

Transportation Vehicle 1000,0000

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Preliminary Costs 15,00,000

Working Capital 15,00,000

Others 20,00,000

Total 100000000

Table: Cost of Setting up the Project

The owners of the business will finance the entire project. It is a partnership business. The

investment by each partner is given:

FINANCING OF THE PROJECT

Partners Taka

Hasib Al Raj 1000,0000

Arman Reza 1000,0000

Mahmudul Hasan 1000,0000

Nishat Hasan 1000,0000

Zakaria Zibon 1000,0000

Total Financing 5,000,0000

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Pro-forma Income Statements

Income StatementYear Ending December 2010

Tk. Tk.Net Sales 120000000Cost of Goods Sold (90000000)Gross Margin 30000000

Selling Expenses

Advertising Expense 10,00,000Total Selling Expenses 1000000

Administrative Expenses

Administrative Payroll 70,00,000Transportation Expense 30,00,000Electricity Expense 2,20,000Utility Bills 80,000Telephone Bills 30,000Production Payroll 40,00,000Insurance Expense 4,70,000License Expense 2,00,000Depreciation Expense 30,00,000Total Administrative Expenses

180,00,000

Total Expenses 19000000

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Earnings before income tax 11000000Income taxes (30%) 3300000Net Profit After Tax 7700000

Income StatementYear Ending December, 2011

Tk. Tk.Net Sales 13,10,00,00

0Cost of Goods Sold (94950000)Gross Margin 36050000

Selling Expenses

Advertising Expense 10,00,000Total Selling Expenses 1000000

Administrative Expenses

Administrative Payroll 70,00,000Transportation Expense 30,00,000Electricity Expense 2,20,000Utility Bills 80,000Telephone Bills 30,000Production Payroll 40,00,000Insurance Expense 4,70,000Depreciation Expense 35,00,000Total Administrative Expenses

18300000

Total Expenses 19300000Earnings before income tax 16750000Income taxes (30%) 5025000Net Profit After Tax 11725000

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Income StatementYear Ending December 2012

Tk. Tk.Net Sales 14,50,00,000Cost of Goods Sold (101000000)Gross Margin 44000000

Selling Expenses

Advertising Expense 10,00,000Total Selling Expenses 10,00,000

Administrative Expenses

Administrative Payroll 70,00,000Transportation Expense 30,00,000Electricity Expense 2,30,000Utility Bills 85,000Telephone Bills 30,000Production Payroll 40,00,000Insurance Expense 4,70,000Depreciation Expense 40,00,000Total Administrative Expenses

18815000

Total Expenses 198153000

Earnings before income tax 24185000

Income taxes (30%) 7255500

Net Profit After Tax 169295

110

00

Income StatementYear Ending December 2013

Tk. Tk.Net Sales

17,000,0000

Cost of Goods Sold 112000000Gross Margin

58000000

Selling Expenses

Advertising Expense 10,00,000Total Selling Expenses 10,00,000

Administrative Expenses

Administrative Payroll 70,00,000Transportation Expense 32,00,000Electricity Expense 2,40,000Utility Bills 90,000Telephone Bills 30,000Production Payroll 40,00,000Insurance Expense 4,70,000Depreciation Expense 50,00,000Total Administrative Expenses

20030000

Total Expenses 21030000Earnings before income tax 36970000Income taxes (30%) 11091000Net Profit After Tax 25879000

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Income StatementYear Ending December 2014

Tk. Tk.Net Sales 20,50,00,000Cost of Goods Sold 1285000000Gross Margin 76500000

Selling Expenses

Advertising Expense 15,00,000Total Selling Expenses 15,00,000

Administrative Expenses

Administrative Payroll 90,00,000Transportation Expense 35,00,000Electricity Expense 2,60,000Utility Bills 1,20,000Telephone Bills 30,000Production Payroll 50,00,000Insurance Expense 4,70,000Depreciation Expense 60,00,000Total Administrative Expenses

24380000

Total Expenses 25880000Earnings before income tax 50620000Income taxes (30%) 15186000Net Profit After Tax 35434000

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Pro-forma Cash Flow Statement

Cash Flow Statement for the year 2010

Cash Receipts(Cash in)

January February March April May JuneCash sells 4500000 4500000 4500000 5000000 6000000 7500000

Cash collects from accounts

receivable

1000000 1000000 1000000

Total cash in 45,00,000 45,00,000 45,00,000 60,00,000 70,00,000 85,00,000Cash

Disbursements (Cash out)

Salary 5,83334 5,83334 5,83334 5,83334 5,83334 5,83334Utility Bills 6666 6666 6666 6666 6666 6666Advertising

Cost83,334 83,334 83,334 83,334 83,334 83,334

Transportation 250000 250000 250000 250000 250000 250000Electricity 18334 18334 18334 18334 18334 18334Telephone 2500 2500 2500 2500 2500 2500Production 1,66,667 1,66,667 1,66,667 200000 200000 300000

License 2,00,000Insurance

TaxTotal Cash Out

FlowNet cash flow

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Cash Flow Statement for the year 2011

Cash Receipts(Cash in)

July August September October November DecemberCash sells 9000000 9000000 9500000 11000000 12500000 17000000

Cash collects from accounts

receivable

2000000 2000000 2500000 2500000 3000000 5000000

Total cash in 1,10,00,000 1,10,00,000 1,20,00,000 1,35,00,000 1,55,00,000 2,20,00,000Cash

Disbursements (Cash out)

Salary 5,83334 5,83334 5,83334 5,83334 5,83334 5,83334Utility Bills 6666 6666 6666 6666 6666 6666Advertising

Cost83,334 83,334 83,334 83,334 83,334 83,334

Transportation 250000 250000 250000 250000 250000 250000Electricity 18334 18334 18334 18334 18334 18334Interest

Telephone 2500 2500 2500 2500 2500 2500production 400000 400000 400000 500000 500000 600000

licanseInsurance 4,70,000

Tax 33,00,000Total Cash Out Flow

Net cash flow

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Statement of Cash Flow

For the Month Ended December 31, 2011

Tk. Tk.Cash ReceiptsCash Sales 11, 00,00,000Accounts Receivable 2,10,00,000Total Cash in 13,10,00,000

Cash Disbursements

Advertising Expense 10,00,000Administrative Payroll 70,00,000Transportation Expense 30,00,000Electricity Expense 2,20,000Utility Bills 80,000Telephone Bills 30,000Production Payroll 40,00,000Insurance Expense 4,70,000Income Taxes 5025000Total Cash Out 20825000

Surplus Cash Balance 110175000

Statement of Cash Flow

110

For the Month Ended December 31, 2012

Tk. Tk.Cash ReceiptsCash Sales 12,000,0000Accounts Receivable 2,50,00,000Total Cash in 14,50,00,000

Cash Disbursements

Advertising Expense 10,00,000Administrative Payroll 70,00,000Transportation Expense 30,00,000Electricity Expense 2,30,000Utility Bills 85,000Telephone Bills 30,000Production Payroll 40,00,000Insurance Expense 4,70,000Income Taxes 7255500Total Cash Out 23070500

Surplus Cash Balance 121929500

Statement of Cash Flow

For the Month Ended December 31, 2013

110

Tk. Tk.Cash ReceiptsCash Sales 14,000,0000Accounts Receivable 3,000,0000Total Cash in 17,000,000

0

Cash Disbursements

Advertising Expense 10,00,000Administrative Payroll 70,00,000Transportation Expense 32,00,000Electricity Expense 2,40,000Utility Bills 90,000Telephone Bills 30,000Production Payroll 40,00,000Insurance Expense 4,70,000Income Taxes 11091000Total Cash Out 27121000

Surplus Cash Balance 142879000

Statement of Cash Flow

For the Month Ended December 31, 2014

110

Tk. Tk.Cash ReceiptsCash Sales 19,000,0000Accounts Receivable 2,50,00,000Total Cash in 20,50,00,0

00

Cash Disbursements

Advertising Expense 15,00,000Administrative Payroll 90,00,000Transportation Expense 35,00,000Electricity Expense 2,60,000Utility Bills 1,20,000Telephone Bills 30,000Production Payroll 50,00,000Insurance Expense 4,70,000Income Taxes 15186000Total Cash Out 35066000

Surplus Cash Balance 169934000

Pro-forma Balance Sheet

For the year ended Dec. 31, 2010

Assets Liabilities & Stockholders Equity

110

Tk. Tk.

Current Asset LiabilitiesCash

10,000,0000 Current liabilities

Accounts receivable 2,000,0000

Accounts Payable 3,000,0000

Inventory 2,97,0000 Notes payable 100,00,000

Prepaid expense 40, 00,000Long-term debt 1000,0000

Tax payable 33,00,000

Total Current Assets

126970000

Salaries Payable 70,00,000

Fixed Assets Others shot terms notes

80,00,000

Land 70,00,000 Acquired Liabilities 1,70,00,000Building 1,20,00,00

0 Advertising Expanse 10,00,000

Accumulated depreciation

(10,00,000)

Total current liabilities

8,63,00,000

Building (net) 110,00,000

Equipment (net) 60,00,000Accumulated depreciation

(10,00,000)

Shareholders Equity

Equipment Net 50,00,000 Share holder equity 2,50,00,000Vehicle 100,00,0

00Accumulated depreciation

(10,00,000)

Vehicle (net) 90,00,000 Total equity 4,76,70,000

Total fixed Assets 3, 20, 00,000

Total Assets 15,89,70,000 Total liabilities andShareholder’s equity

15,89,70,000

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Pro-forma Balance Sheet

For the year ended Dec. 31, 2011Assets Liabilities & Stockholders Equity

Tk TkCurrent Asset LiabilitiesCash 11000000

Current liabilities

Accounts receivable

21000000

Accounts Payable 40000000

Inventory 3000000Notes payable 15000000

Prepaid expense 4500000Long-term debt 10000000

Tax payable 5025000

Total Current Assets

138500000

Salaries Payable 70000000

Others shot terms notes

8500000

Fixed Assets Acquired Liabilities 18000000Land 7000000 Advertising Expanse 1000000Building 11000000 Total current

liabilities97025000

Accumulated depreciation

(1200000) Shareholders Equity 28000000

Building (net) 9800000 Total equity 41975000Equipment 5000000Accumulated depreciation

(1200000)

Equipment (net) 3800000Vehicle 9000000 Accumulated depreciation

(1100000)

Vehicle (net) 7900000

Total fixed Assets

28500000

Total Assets 167000000 Total liabilities and 167000000

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Shareholder’s equity

Pro-forma Balance Sheet

For the year ended Dec. 31, 2012

Assets Liabilities & Stockholders Equity

Tk Tk

Current Asset LiabilitiesCash 12000000

0 Current liabilities

Accounts receivable

25000000 Accounts Payable 45000000

Inventory 3500000 Notes payable 20000000

Prepaid expense 4700000 Long-term debt 10000000

Prepaid insuranceTax payable 7255500

Total Current Assets

153200000

Salaries Payable 70000000

Others shot terms notes

9000000

Fixed Assets Acquired Liabilities 20000000

Land 7000000 Advertising Expanse 1000000Building 9800000 Total current

liabilities119255500

Accumulated depreciation

(1400000) Shareholders Equity

Building (net) 8400000 Shareholder equity 30000000Equipment 3800000Accumulated depreciation

(1300000)

Equipment (net) 2500000 Total equity 28444500 Vehicle 7900000Accumulated depreciation

1300000

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Vehicle (net) 6600000

Total fixed Assets

24500000

Total Assets 177700000 Total liabilities andShareholder’s equity

177700000

Pro-forma Balance Sheet

For the year ended Dec. 31, 2013

Assets Liabilities & Stockholders Equity

Tk Tk

Current Asset LiabilitiesCash 14000000

0 Current liabilities

Accounts receivable

30000000 Accounts Payable 50000000

Inventory 4000000Notes payable 25000000

Prepaid expense 5000000Long-term debt 10000000

Tax payable 11091000

Total Current Assets

179000000

Salaries Payable 7000000

Others shot terms notes

10000000

Fixed Assets Acquired Liabilities 25000000

Land 7000000 Advertising Expanse 1000000Building 8400000 Total current

liabilities139091000

Accumulated depreciation

(1500000) Shareholders Equity

Building (net) 69000000 Shareholder equity 32000000Equipment 2500000Accumulated depreciation

(1000000)

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Equipment (net) 1500000 Total equity 21409000 Vehicle 6600000Accumulated depreciation

(1500000)

Vehicle (net) 5100000

Total fixed Assets

135000000

Total Assets 192500000 Total liabilities andShareholder’s equity

192500000

Pro-forma Balance Sheet

For the year ended Dec. 31,2014

Assets Liabilities & Stockholders Equity

Tk Tk

Current Asset LiabilitiesCash 160000000

Current liabilities

Accounts receivable

45000000

Accounts Payable 60000000

Inventory 4500000Notes payable 35000000

Prepaid expense 5500000Long-term debt 10000000

Tax payable 15186000

Total Current Assets

215000000

Salaries Payable 9000000

Others shot terms notes

15000000

Fixed Assets Acquired Liabilities 30000000

Land 7000000 Advertising Expanse 1500000Building 6900000 Total current

liabilities162186000

Accumulated depreciation

(2000000) Shareholders Equity

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Building (net) 4900000 Shareholder equity 35000000Equipment 1500000 Total equity 33814000Accumulated depreciation

(500000)

Equipment (net) 1000000FurnitureAccumulated depreciationFurniture (net)Vehicle 5100000Accumulated depreciation

(2000000)

Vehicle (net) 3100000

Total fixed Assets

16000000

Total Assets 231000000 Total liabilities andShareholder’s equity

231000000

Break Even Analysis

Break-even analysis is a technique widely used by production management and management

accountants. It is based on categorizing production costs between those which are "variable"

(costs that change when the production output changes) and those that are "fixed" (costs not

directly related to the volume of production).

Total variable and fixed costs are compared with sales revenue in order to determine the level of

sales volume, sales value or production at which the business makes neither a profit nor a loss

(the "break-even point"). For our business, it is very necessary to do break-even analysis. After

knowing our break-even quantity, we will be able to make our business profitable.

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Fixed Costs

Fixed costs are those business costs that are not directly related to the level of production or

output. In other words, even if the business has a zero output or high output, the level of fixed

costs will remain broadly the same. We have determined the fixed cost of our business.

Variable Costs

Variable costs are those costs which vary directly with the level of output. They represent

payment output-related inputs such as raw materials, direct labor, fuel and revenue-related costs

such as commission. A distinction is often made between "Direct" variable costs and "Indirect"

variable costs. We have determined the variable costs of our ice cream business which include

cost of goods sold, production payroll and income tax.

The break- even point is the point at which revenue is exactly equal to costs. At this point, no

profit is made and no losses are incurred. The break- even point can be expressed in terms of unit

sales or dollar sales. That is, the break- even units indicate the level of sales that are required to

cover costs. Sales above that number result in profit and sales below that number result in a loss.

The break- even sales indicates the dollars of gross sales required to break- even.

However, the break- even is an excellent tool to help quantify the level of production needed for

a new business or a new product.

Total Cost = Fixed Cost +Variable cost.

At break even,

Net Income = 0

110

Total Cost = Total Revenue

Fig: Break-even point

HAMNZ Automobile CompanyBreak Even Points

Fixed cost

Break Even Quantity =

-----------------------------------------------------

Selling price –Variable cost per unit

Fixed Expenses Taka.Administrative Payroll 70,00,000Land 70,00,000Building 1,20,00,000Advertising Expense 10,00,000Equipment 5,50,00,000Furniture 20,00,000Insurance Expense 4,70,000License Expense 2,00,000Vehicle 1000000Total 9,26,70,000

Variable Expenses

Transportation Expense 30,00,000Electricity Expense 2,20,000Utility Bills 80000Telephone Bills 30,000Production Payroll 40,00,000 Total 7330000

Total Fixed Costs = Tk. 92670000

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Total Variable Costs = Tk. 7330000

Total Cost = Fixed Costs +Variable costs

= 92670000+7330000

= Tk.100000000

Therefore, the company needs to make a sale of 25000000 taka to have a breakeven zero. That

means, neither to have a loss or any profit.

Average Variable cost per unit = 73300

Where,

F .C. = Fixed Cost S = Selling price per unit V.C. = Variable Cost per unit

Ratio Analysis

One of the ways in which financial statements can be put to work is through ratio analysis.

Ratios are simply one number divided by another; as such they may or not be meaningful.

110

The ratio analysis is used to provide indicators of past performance in terms of critical success

factors of a business. This assistance in decision-making reduces reliance on guesswork and

intuition and establishes a basis for sound judgment.

For our business, we will determine different types of ratios.

Current Ratio

The Current Ratio expresses the relationship between the firm’s current assets and its current

liabilities. The current ratio is calculated as follows:

Total Current Assets Current Ratio = Total Current Liabilities

a) For 2010

126970000 Current Ratio = 86300000 = 1.47

b) For 2011 138500000 Current Ratio = 97025000 = 1.42

c) For2012 ,

153200000 Current Ratio = 119255500

= 1.28

d) For2013 ,

179000000

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Current Ratio =

139091000 = 1.28

e) For 2014 215000000

Current Ratio = 162186000

= 1.32

Acid Test Ratio

Acid Test Ratio measures assets that are quickly converted into cash and they are compared

with current liabilities. This ratio realizes that some of current assets are not easily

convertible to cash e.g. inventories. The acid test ratio is calculated as follows:

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Current Assets - Inventory– Prepaid Expenses

Acid Test Ratio = Current Liabilities

a) For 2010 ,

126970000-2970000-4000000 Acid Test Ratio =

86300000

= 1.39

b) For 2011

138500000-3000000-4500000

Acid Test Ratio = 97025000

= 1.35

c) For 2012 ,

153200000-3500000-4700000 Acid Test Ratio =

119255500

= 1.21

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d) For 2013 ,

179000000-4000000-5000000 Acid Test Ratio =

139091000

= 1.22

e) For 2014 ,

215000000-4500000-5500000 Acid Test Ratio =

162186000 = 1.26

Debt to Equity Ratio

This ratio indicates the extent to which debt is covered by shareholders’ funds. It reflects the

relative position of the equity holders and the lenders and indicates the company’s policy on

the mix of capital funds. The debt to equity ratio is calculated as follows:

Debt

110

Debt to Equity Ratio = Equity

a) For 2008 ,

10000000 Debt to Equity Ratio =

57670000

=0.17

b) For 2009 ,

10000000 Debt to Equity Ratio =

51975000

=0.19

c) For 2010 ,

10000000 Debt to Equity Ratio =

38444500

=0.26

d) For 2011 ,

10000000 Debt to Equity Ratio =

31409000 = 0.31

e) For 2012 , 10000000

Debt to Equity Ratio = =0.22

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Inventory Turnover Ratio

This ratio measures the stock in relation to turnover in order to determine how often the stock

turns over in the business. It indicates the efficiency of the firm in selling its product. It is

calculated by dividing he cost of goods sold by the average inventory.

Cost of Goods Sold Inventory Turnover Ratio = Average Inventory

a) For 2010 ,

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90000000 Inventory Turnover Ratio = 2970000

= 30.30b) For 2011 ,

94950000 Inventory Turnover Ratio = 3000000

=31.65

c) For 2012 ,

101000000 Inventory Turnover Ratio = 3500000

= 28.85

d) For 2013 ,

112000000 Inventory Turnover Ratio = 4000000

= 28

e) For 2014

128500000 Inventory Turnover Ratio = 4500000 = 28.55

365 Average Days to Turnover = Inventory Turnover Ratio

a) For 2010 ,365

Average Days to Turnover = 30.30

110

= 12.04

b) For 2011 , 365

Average Days to Turnover = 31.61

=11.54

c) For 2012 ,

365 Average Days to Turnover = 28.85

=12.65

d) For 2013 , 365

Average Days to Turnover = 28

=13.03

e) For 2014 ,

365 Average Days to Turnover = 28.55 =12.78

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Average Collection Period

The average collection period measures the quality of debtors since it indicates the speed of

their collection. The shorter the average collection period, the better the quality of debtors, as

a short collection period implies the prompt payment by debtors.

Account Receivables Average Collection Period =

* 365 Annual Sales

a) For 2010 ,20000000

110

Average Collection Period = * 365

120000000 =60.83

b) For 2011 ,

21000000 Average Collection Period =

* 365 131000000

= 58.51

c) For 2012 ,

25000000 Average Collection Period =

* 365 145000000 = 62.93

d) For 2013 , 30000000

Average Collection Period = * 365

170000000 =64.41

e) For 2014 ,

45000000 Average Collection Period =

* 365 205000000 =80.12

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Return on Total Assets

The return on total assets ratio measures how well a company's management team is doing its

job. A comparison of net income and total assets, the return on total assets ratio reveals how

much income management has been able to squeeze from company's assets. Investors and

potential investors use this ratio to evaluate a company's leadership.

Operating Income Return on Total Assets =

Total Assets a) For 2010 ,

7700000 Return on Total Assets = 158970000

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=0.04

b) For 2011 ,

11725000 Return on Total Assets = 1467000000

=0.07

c) For 2012 ,

16929500 Return on Total Assets = 177700000

=0.09

d) For 2013 ,

25879000 Return on Total Assets = 192500000

=0.13

e) For 2014 ,

35434000 Return on Total Assets = 231000000

=0.15

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Return on Equity

This ratio shows the profit attributable to the amount invested by the owners of the business.

It also shows potential investors into the business what they might hope to receive as a

return. The stockholders’ equity includes share capital, share premium, distributable and non-

distributable reserves. The ratio is calculated as follows:

Net Income Return on Equity =

Owner’s Equity

a) For 2010 ,

7700000 Return on Equity or Investment = 25000000

=0.30

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b) For 2011 ,

11725000 Return on Equity or Investment = 28000000

= 0.41

c) For 2012 ,

16929500 Return on Equity or Investment = 30000000

=0.56

d) For 2013 , 25879000

Return on Equity or Investment = 32000000

=0.80

e) For 2014 ,

35434000 Return on Equity or Investment = 35000000

=1.01

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Explanations of Projections

All the elements which are contained in the financial statement (like cash flow statements,

Balance sheet, Income statements, ratio analysis) are easy to understand. The results shall be

more or less than the same and may have some minor variations from time to time. The owners

of the company shall decide how much to draw out from the business as per agreement among

them. Certain amounts shall be kept as retained earnings for future growth and expansion of the

business.

In 2010, we will buy land, equipment, Raw materials and delivery van. In 2010, our sale will be

very low. There will be also a lot of expense in the beginning of the 2010. Therefore, cash out

flow in 2010 is higher and Company’s net profit is very low. In income statement, we also

consider tax on our income. In income statement some expenses are fixed (Administrative

Payroll, advertising expense etc). Other expenses are almost same throughout the year.

In 2011, our sale is comparatively increased. Expense is relatively low. In income statement net

income is higher than 2010. Company’s cash inflows and cash outflows are higher than 2010.

The company has a surplus budget. In balance sheet, we consider depreciation in all fixed asset.

Company’s asset liabilities balance is higher than previous year’s balance sheet.

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In 2012, there is a highest sale in among five year. Fairly income is very high. In cash flow, we

have a surplus budget. We are considering tax in income statement. In balance sheet company’s

assets-liabilities, balance is also very high.

In 2013, company’s sales are relatively very low than 2011 and 2012. For decrease in sales our

net profit is also very low. In addition, there are some variations in asset-liability balance, which

is comparatively lower than previous year’s balance sheet.

In 2014, our sale is higher than previous year. Expense is relatively low. In income statement net

income is higher than 2013. Company has a surplus budget. In balance sheet, we consider

depreciation in all fixed asset. Company’s asset liabilities balance is higher than previous year’s

balance sheet.

Conclusion

HAMNZ Automobile Company is a small business, which will assemble automobile and will

sell it throughout the whole country. The company will introduce new model cars and Pesaro

with high tech technology (car tracker). The company’s supervision hopes that the new model of

the cars and Pesaro will be acceptable to all type of buyers (who have a dream of a car). The

company has been benefited from the surveys in determining which model, style, price, features,

to assembling. In this business plan report, every aspects of a business have been portrayed

including marketing, human resource, financial and Purchasing and sales. This business plan has

documented that the establishment of HAMNZ automobile Company is possible. All of the

critical factors such as industry trends, marketing analysis, competitive analysis, management

expertise, and financial analysis support this conclusion. For this reason the management of

HAMNZ automobile industry hopes that it will be the successful business and first best local

automobile company in Bangladesh.