Entrepreneurship Development1.0 Introduction1.1 Origin

Ms. Jafrin Farid, the course Mentor of Entrepreneurship Development (MGT-360), in words

authorized the task of writing this Business Plan as individually. I were independently formed

of the Instructor selected the focus. The submission date of this Business Plan is September

10, 2006.

1.2 Purpose

Immediate purpose of this Business Plan is to practically accomplish the requirements of the

Entrepreneurship Development (MGT-360) course prerequisite and as a consequence to

learn the formal Business Plan for a new business.

Today’s life growing fast. It is full of demand and expectation. For that there are so much

opportunities satisfy the peoples’ demand. This is an overwhelming opportunity for me to

work at a part of a professional business field. In this regard I feel honored to prepare a

formal Business Plan. In addition to serve this purpose it tries to find out-

To determine how to make a proper Business Plan,

To determine consumers need and

To learn how to be successful in business career

1.3 Scope of the Study

There are lots of opportunities to make new businesses. The raw materials are very simple

and available around us. As well as there are demand also. So, I used the scope is to take the

opportunities and do a bakery business by introducing new bakery product with different

flavor for the people. I have tried my level best to gathering the information regarding this

type of business.

1.4 Limitation

It is difficult to include all the information to prepare a proper Business Plan in Bakery food

by providing different flavor in this short time. There for, I have arbitrarily picked some

infamous information and I did not get enough information about that. I have tried to

include all the information about the Bakery business by introducing different flavor in

Dhaka city in order to succeed in bakery food business.

1.5 Sources and Methods of Collecting Data

Most of the relevant data and information taken from market survey of customer demand.

So to find out enough information for Bakery food by providing new product and flavor, I

have analyzed the customer demand and opportunity of making profit. Then I have collect

data from different ways in different bakery house. I also talked with some people to know

about their need and demand. I also collected some information from web area.

1.6 Business Plan Preview

The Business Plan of JAM & JELLY CAKE started with Business Description where General

description of business, Mission statement and Business Objectives explained. After that the

Product description clarified. The Product description refers product feature, product

benefits, proprietary rights and stage of development. The following part of the Business

Plan expresses Industry and market analysis. Industry analysis, opportunity and trends,

competitive environment and competition, Target market, customer analysis and sales

analysis are clarified in this part. Then customer research, target market strategy, market

positioning, product strategy, channel strategy, pricing strategy and advertising & promotion

strategy explained in Marketing Plan. After the marketing plan JAM & JELLY CAKE clarified

Operation and Management Plan which refers location, Supply chain analysis, inventory

management system, stakeholders, physical facilities and factors, building interiors, layout

patterns, manufacturing layouts, equipment, organizational chart and plan the personnel.

The business plan of JAM & JELLY CAKE also explained Financial plan in the last section of

plan. The Business Plan of JAM & JELLY CAKE end with supporting documents which

represents extra relevant information to prepare a formal and fruitful business plan.

2.0 Business Description

2.1 General Description of Business

JAM & JELLY CAKE is a bakery business. It will offer various types of hygiene and quality

bakery food mainly for middle, upper classes and vegetarian people in Dhaka, Bangladesh.

JAM & JELLY CAKE will focus with bakery food like cake, bread and biscuits with different

flavor. JAM & JELLY CAKE will be organized as a sole trader business. The target area of JAM

& JELLY CAKE is Banani, Uttara and Dhanmondi residential area. The main objective of JAM &

JELLY CAKE is to provide hygiene and quality cake, bread and biscuits with chocolate,

vegetable, egg and milk flavor with reasonable price. First time JAM & JELLY CAKE will start

with two skilled cook and three unskilled people. Later on JAM & JELLY CAKE will open a

training center to make bakery food to minimize unemployment problem of Dhaka city.

Brand Name : JAM & JELLY CAKE (Be Enlighten)

Product : Jam & jelly cake, Chicken cake, Fish cake, Egg cake, Chocolate cake, Banana

Cake, Regular bread, Jam & Jelly bread, chicken bread, and biscuits with vegetable, egg and

chicken flavor.

Factory, Head Office and Sales Center: Banani, Dhaka, Bangladesh.

Other Sales Area: Uttara Tower, Uttara and Dhanmondi.

Location: JAM & JELLY CAKE has select its Factory, Head office and Sales centre in TRADE

CENTRE, Banani. Banani is very important place. TRADE CENTRE is located in Kamal Atartuk

Avenue. There are eight private university, ten Bank, one post office, and many private

offices in this road. But Cooper’s and Kings Confectionary are not operating their business in

this road. This is very important road in Banani. And there is a wide public market called

Banani Bazar in this road. Transportation and parking facilities are also a part of great

advantages. On the other hand office rent and other expenses are very high. So, expensive

office and availability of parking area are the part of disadvantages.

2.2 Mission Statements of JAM & JELLY CAKE

Mission Statements of JAM & JELLY CAKE is to provide a range of hygiene and quality bakery

food with different flavor for making a positive impact in bakery foods for middle and upper

classes vegetarian people.

2.3 Business Objectives

JAM & JELLY CAKE want to solve the problem of producing wide range of bakery food with

different flavor. Then JAM & JELLY CAKE will produce chanachur and chips with fruits,

chicken and Jam & Jelly flavor. JAM & JELLY CAKE also want to minimize the unemployment

problem in Dhaka city.

3.0 Product Description

In product description part, JAM & JELLY CAKE has studied about product feature, product

benefits, proprietary rights and stage of new product development.

Cake

3.1 Product Feature and Description: All the product of JAM & JELLY CAKE will be

attractive, compassionate and well packaged.

Product Line Raw Materials Weight Price (Taka)

Chicken Cake Flour, Sugar, Egg, Butter,

Chicken.

200 g.m. 40.00

Chocolate Cake Flour, Sugar, Egg, Butter,

Chocolate.

200 g.m. 30.00

Egg Cake Flour, Butter, Egg, Sugar. 100 g.m. 15.00

JAM & JELLY CAKE

Birthday Cake

Chocolate, Flour, Sugar, Egg,

Butter.

1 k.g. 400.00

JAM & JELLY CAKE

Birthday Vanilla Cake

Vanilla, Egg, Flour, Sugar,

Butter.

1 k.g. 400.00

JAM & JELLY CAKE

Wedding Cake

Flour, Sugar, Egg, Butter,

Chicken, Chocolate, Vanilla

1 k.g. 450.00

JAM & JELLY CAKE Pear

Heart Cake

Flour, Sugar, Egg, Butter,

Vegetable, Chocolate,

Vanilla

1 k.g. 450.00

JAM & JELLY CAKE

Beach Cake

Flour, Sugar, Egg, Butter,

Chocolate, Vanilla

1 k.g. 400.00

Chicken Bread Flour, Egg, Chicken, Sugar,

Butter.

300 g.m. 35.00

Jam & Jelly Bread Flour, Sugar, Egg, Butter,

Potato, Onion, Tomato,

Carrot.

300 g.m. 30.00

Regular Bread Flour, Sugar, Egg, Salt, Yeast. 300 g.m. 25.00

Regular salt Biscuits Flour, Butter, Egg, Salt. 200 g.m. 25.oo

Fig: JAM & JELLY CAKE’s product description

JAM & JELLY

3.2 Product Benefits

JAM & JELLY CAKE is a small house but suitable decorated and simplicity comfort to the

guests. JAM & JELLY CAKE want to provide hygiene & quality food with reliability. Customer

will get greater out put because JAM & JELLY CAKE will never use synthetic harmful color. All

the products color of JAM & JELLY CAKE will be natural. JAM & JELLY CAKE is committed not

to use harmful raw materials to produce cake, bread and biscuits. The entire customer will

get fresh and healthy food from JAM & JELLY CAKE. JAM & JELLY CAKE will provide various

kinds of Birth day and Weeding cake to fulfill the demand of potential customer.

Chicken Cake

3.3 Stage of Development

JAM & JELLY CAKE can include with another new flavor, the shape and style. JAM & JELLY

CAKE will try to find out the demand of new product with original products, products

improvements, products modifications and new brands. JAM & JELLY CAKE will follow in

their new products development which represented as follow—

Idea Generation

Idea Screening Concept Dev. & Testing

Marketing Strategy

Business Analysis

Product Development

Test Marketing

Commercialization

Jam & Jelly New Product Development

Fig: JAM & JELLY CAKE’s new product development

4.0 Industry and Market Analysis

4.1 Industry Analysis

Food industry is continuous to grow. Within the industrial sector, the growth of the food

processing industry is particularly important for Bangladesh as this is one of the major

industries in terms of contribution to total manufacturing production and employment.

Changes in mean capacity realization rates in the food processing industry over the three

periods suggest that enterprises in different sectors within the industry recorded only

moderate increases in efficiency during the post-reform period. The average rate of capacity

realization for this industry increased by only 7 per cent, from 51 per cent in 1981 to 58 per

cent in 1991. There is still a substantial unrealized productive capacity in most of the

enterprises in the food processing industry. On the average, capacity realization increased

most sharply in the fish and seafood sector by 31 per cent from a low mean of 47 per cent in

1981 to 78 per cent in 1991. The reason for this sharp rise may be attributed to the outward

orientation of this sector and the need for competition. All the firms in this sector adopted a

100 per cent export orientation approach. The remaining industries showed little or no

improvement.

The consumers of Dhaka City now spend a whopping 3000 million Taka per year on bakery

food. During the period of 2002 to 2006 the bakery market of Dhaka city grew at 40%. This

has generated a boom in bakery food opening the last five years. People are always wish

different types of food with new and desirable flavor. We can change the section of product

and market by producing a range of hygiene and quality food with different flavor. Our

business is oligopoly organization.

4.2 Opportunity and Trends

Cake, bread and biscuits are minor food in our daily life. But some specific time these are

used as immediate food especially in the morning. JAM & JELLY CAKE will produce Cake,

bread and biscuits with Vegetable, Chocolate, chicken and fruits flavor. The growing number

of health conscious people can be a good market for future Jam & Jelly and chicken cake,

bread and biscuits. As the raw material of the cake, bread and biscuits are available in

Bangladesh. Huge amount and various types of vegetables are growing in Bangladesh and

the Government is also fear about agro based business and others types of business boom to

contribute in national GDP. So, Raw materials and skilled employees are available and JAM &

JELLY CAKE think intense, reoccurring and detailed training is the cornerstone to success.

Technology are also easy to operate and available with reasonable price. JAM & JELLY CAKE

will organize Superior building, good quality show room, excellent sitting arrangement, and

hygienic environment for infrastructure support.

From opportunity analysis JAM & JELLY CAKE think cake, bread and biscuits with vegetable,

chocolate, chicken and fruits flavor will get good support from Bangladeshi market especially

in Dhaka area. Finally the main trends of JAM & JELLY CAKE are to provide a wide range of

bakery food with different flavor and reasonable price.

Jam & Jelly Cake

4.3 Competitive Environment and Competition

Fresh and quality foods are always demandable. There are many bakeries in Dhaka city. All

the bakeries are willing to making more profit. Before starting the operation JAM & JELLY

CAKE tried to gather information about some competitor in food and bakery sector in

Banani, Uttara and Dhanmondi area. The nearest six competitor that JAM & JELLY CAKE

found are as follow-

1. Cooper’s

2. Sadia Hot Cake

3. Ideal Bakery

4. CSD Bread & Biscuit factory

5. Kings Confectionary

6. Yousuf Confectionary

JAM & JELLY CAKE has analyzed about the competitor and divided them two functions as

Direct and Indirect competitor.

Direct Competitor-Kings and Yousuf confectionary.

Indirect Competitor- Cooper’s, Sadia Hot Cake, Ideal Bakery, CSD Bread & Biscuit factory.

Competitive Matrix Chart

Competitor Product

Service

Unique

Feature

Distribution

System

Adverti

sing

Geogra-

Phic

Location

Product

Layout

Packaging

Kings

Confec.

5 5 5 0 4 4 4

Cooper’s 5 5 5 0 3 5 5

Sadia Hot

Cake

3 3 3 0 2 3 2

Ideal Bakery 2 2 2 0 2 2 1

CSD Bread 3 2 2 0 2 3 2

Yousuf

Confec.

4 4 4 0 3 4 3

Agree completely=5, Mostly agree=4, Partially agree=3, Mostly disagree=2, Disagree

completely=0.

From the competitor analysis JAM & JELLY CAKE find out some information of competitor’s

strength and weakness. The strength and weakness are as follows:

Kings Confectionary:

Product services, unique feature, distribution system, packaging and product layout are the

strength of kings confectionary. Advertising is the main weakness of kings confectionary. On

the other hand there is some problem in selecting location.

Cooper’s: Product services, unique feature, distribution system and packaging are the

strength of kings confectionary. Advertising is the main weakness of kings confectionary.

There is some problem in selecting location and product layout.

Sadia Hot Cake:

Distribution system is the main strength of sadia hot cake. Product services, unique feature,

geographic location, advertising, packaging and product layout are the weakness of Sadia

hot cake.

Ideal Bakery:

Product service and selecting location are the strength of Ideal Bakery. Distribution system,

unique feature, geographic location, advertising, packaging and product layout are the

weakness of Ideal Bakery.

Gulshan Bread:

Product feature and product layout are the strength of Gulshan Bread. Distribution system,

unique feature, geographic location, advertising, packaging and product feature are the

weakness of Ideal Bakery.

Yousuf Confectionary:

Product services, unique feature, distribution system, Location and product layout are the

strength of kings confectionary. Advertising and packaging are the weakness of Yousuf

Confectionary.

Finally, Cooper’s, kings confectionary and Yousuf confectionary are main competitor. But in

Banani Kamal Atarturk Avenue, Cooper’s or Kings confectionary are not available. There is a

branch of kings in road no. 11. And Cooper’s are not operating their service in Kamal

Atarturk Avenue. So, there is a great opportunity to start the operation of JAM & JELLY CAKE.

4.4 Target Market and Customer

Jam & Jelly cake, Chicken cake, Fish cake, Egg cake, Milk cake, flouts cake, Jam & Jelly

biscuits, chicken biscuits, regular biscuits and Bread with chicken, fish, milk, and chocolate

flavor are demandable for all classes’ people in the society. In this moment there are not

single bakeries that are producing Jam & Jelly cake or Jam & Jelly bread for vegetarian

people. On the other hand no bakeries are providing outstanding quality, service,

cleanliness, and home service delivery by using internet or phone call. We hope we will

make every customer in every house or area smile. The target customers of JAM & JELLY

CAKE are—

Upper class and Middle class people.

Vegetarians People.

Students.

Tourists who are visiting the city

4.4.1 Market Segment

The maximum middle and upper classes people use bread for their breakfast. In general,

people are fond of various types of bakery food with different flavor. Firstly, our target is

upper and middle market in Dhaka city. JAM & JELLY CAKE think it will get approximately

100,000 customers per year. And the buying condition will be acceptable for all consumers.

4.4.2 Market Size and Growth

JAM & JELLY CAKE targets just about who can eat. The primary customers are middle and

high classes’ people. Market survey of JAM & JELLY CAKE conducted that it will get 20-25%

customer in beginning time. And JAM & JELLY CAKE wish it will capture minimum 10%

growth rate. Total sales volume can be approximately 400000 units per year.

4.5 Customer Analysis

Target Customer analysis

Customer Quality Area/Location Demand

Upper & middle

classes people

Banani, Baridhara,

Gulshan, Uttara,

Dhanmondi

High

Students Banani, Dhanmondi,

Uttara, Gulshan

Medium

Tourists Who are

visiting 6he city

Banani, Baridhara,

Gulshan, Uttara

Medium

All the products of Premier Cake House will be highly specialized and profitable, that would

be capable to fulfill the demand of potential customer.

Jam & Jelly cake

Students

Maximum higher education institution and English medium school in Dhaka city. JAM &

JELLY CAKE have choose Banani, Uttara and Dhanmondi area because of many educational

institution in these places. For example there are eight private universities in Banani kamal

atartuk avenue. So there are more than twenty five thousand students come in this area to

study. Maximum students dislike to eat something in the hotel because of bad environment

or dirty food processing system. They want solution and the survey of JAM & JELLY CAKE

refers they wish to eat chicken cake, Jam & Jelly cake, Chocolate cake or bread for short time

at the lunch period or evening period and breakfast time when they start their class at the

morning.

Tourists who are visiting the city

Banani, Uttara and Dhanmondi are very important palce for private organization in business

sector. There are more than twenty manpower and travel agency in Banani. On the other

hand there are many Embassies and private bank in Banani area. Many people attend

banana for process their VISA and others paper. Many business person come to the bank for

transaction. So every day there are many people comes to Banani in bank, offices and

manpower & travel agency. Sometimes it takes huge time to process their work or many

people come from different district. In the lunch time or evening time they wish to eat

something. If they find fresh and quality cake, biscuits and bread they will be potential

customer of JAM & JELLY CAKE.

4.6 Sales Analysis

The target customer of JAM & JELLY CAKE is middle, upper classes and vegetarian people.

For sales analysis JAM & JELLY CAKE analyzed the Banani residential area. A common way to

estimate total market demand is as follow:

Total number of buyers each year ---------------------------300000

Upper, Middle and Vegetarian People 65% ---------------------------195,000

Total customer purchased by an average buyer per year 55% -----------------107,250

Thus, if there are 107,250 buyers of bakery food each year, the average buyer buys items

bakery food per year. Then the total quantity purchased by an average buyer per year =

107,250*10=1,072,500 units. JAM & JELLY CAKE think, it will be able to capture 20% of total

quantity. So the total quantity is 2,14,500, and the average price of JAM & JELLY CAKE’s

bakery food is Tk. 28.00. Then the total market demand of JAM & JELLY CAKE is

2,14,500*28.00 = Tk.60,06,000.

Revenues Year 1 Year 2 Year 3 Year 4

Units Sold 2,14,500 2,60,000 350,000 450,000

Price/Unit 28.00 27.50 27.00 26.00

Revenues 60,06,000 71,50,000 94,50,000 1,17,00,000

Chart: Unit sold of Sales analysis

Chart: Revenues of Sales analysis

5.0 Marketing Plan

JAM & JELLY CAKE has surveyed in consumer market and gathered some important

information from the market. JAM & JELLY CAKE will provide the necessary product that the

consumers wish to buy. Jam & Jelly cake, bread and biscuits are not providing by any bakery

house. So there is a huge demand in Jam & Jelly items bakery food. Chicken cake and bread

Units Sold

050,000

100,000150,000200,000250,000300,000350,000400,000450,000500,000

Year 1 Year 2 Year 3 Year 4

Units Sold

Revenues

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Year 1 Year 2 Year 3 Year 4

Revenues

are not also available in the market and it has also demand in the market. JAM & JELLY CAKE

has made a marketing plan before launch the product in the market. The parts of the

marketing plan of JAM & JELLY CAKE are customer research, target market strategy, channel

strategy, market positioning, product strategy, pricing strategy and advertising & promotion

strategy.

5.1 Customer Research

JAM & JELLY CAKE think about customer research sincerely and the survey is conducted

properly from the customer market. The 80% of upper classes people use bread, biscuits and

cake for their breakfast and middle classes people are 60%. There are more than 5%

vegetarian people who are wish Jam & Jelly cake, bread and biscuits. But huge numbers of

people wish different kinds of bakery food with different flavor. Only egg cake, vanilla cake,

chocolate cake, regular bread and biscuits are available in the market. On the other hand

many potential customers are willing to buy products by internet or phone call. And JAM &

JELLY CAKE will offer these kinds of facilities. So, JAM & JELLY CAKE think people will be more

interested when JAM & JELLY CAKE will start its operation.

5.2 Target Market Strategy

The target market of JAM & JELLY CAKE is middle, upper classes and vegetarian people.

These types of customer are very serious about their health. All the bakery products of JAM

& JELLY CAKE will be free from harmful chemical. Customer will get different kinds of bakery

food with different flavor easily. JAM & JELLY CAKE will open a Web Site for adverting and

selling products to the customer. JAM & JELLY CAKE will also offer customer to buy products

by phone call. By offering various types of product and marketing variations to segments,

JAM & JELLY CAKE hope for higher sales and a stronger position within each market

segment.

5.3 Market Positioning

JAM & JELLY CAKE will provide different types of bakery food with different flavor. Jam &

Jelly cake, Jam & Jelly bread, Jam & Jelly biscuits, chicken cake, chicken bread, fish cake are

totally new product in the market. Kings confectionary, Cooper’s, Yousuf confectionary is the

main competitor in bakery food sector but they are not producing this types of bakery food.

JAM & JELLY CAKE think the customers are available but products are not available in the

market. JAM & JELLY CAKE will take care about the quality and variety of bakery food with

different flavor. JAM & JELLY CAKE will produce various types of Birthday and Weeding cake

for the potential customer.

5.4 Product Strategy

JAM & JELLY CAKE will provide three promise to the customer. Hygiene, Quality and wide

range of bakery food with different flavor are the promise of JAM & JELLY CAKE to the

customer. JAM & JELLY CAKE will use machinery for packaging the product. The cook of the

JAM & JELLY CAKE will also use mixing machine to mixing the ingredients of different type of

bakery food. For cutting the products JAM & JELLY CAKE will also use cutting machine. JAM &

JELLY CAKE think all the potential customer will get hygiene and quality food with reasonable

price.

5.5 Channel Strategy

JAM & JELLY CAKE has a plan for distribution channel. JAM & JELLY CAKE will provide

products and services in two easy. Direct marketing channel (No intermediary levels) and

Indirect marketing channel (Channel contains one or more intermediary channel).

Direct Marketing

Indirect Marketing

JAM & JELLY CAKE

Potential Customer

JAM & JELLY CAKE

JAM & JELLY CAKE’s

representatives or sales branch

Potential Customer

Fig: Channel Strategy of JAM & JELLY CAKE

5.6 Pricing Strategy

In Pricing strategy, JAM & JELLY CAKE will follow “Market-penetration pricing”. Market

penetration pricing represents setting a reasonable price for a new product in order to

attract a large number of buyers and a large market share. JAM & JELLY CAKE think

production and distribution costs must fall as sales volume increases. The pricing will be

below the photocopy that is markup pricing.

5.7. Advertising and Promotion Strategy

My advertisement is on “Jam & Jelly Cake s”. Jam & Jelly Cake s is a shop of various food

items with special item of birthday cake. It is a new company of existing products of food

industry. Gift & Greetings industry has made advertise in print media and electronic media.

In print media, they mainly choose in newspapers and magazines. And in electronic media,

they choose internet and some time television. As my company is a new in market so the

advertising is to create customer awareness. Jam & Jelly Cake s is a domestic company and it

make quality bakery food items. So, I think my advertisement will be better to publish in

print media and I will also use billboard near any school, college and university to introduce

my new innovation and exclusive collection to my target customer.

Fig: Advertising decisions of JAM & JELLY CAKE

6.0 Operation Plan

Communication and Sales

Objectives of JAM & JELLY

CAKE

Competitive parity and

Task of JAM & JELLY

CAKE

Message strategy of

JAM & JELLY CAKE

Brochures,Bill Board,Posturing

Communication and Sales impact of JAM & JELLY

CAKE

JAM & JELLY CAKE has made a plan to operate the production sector. JAM & JELLY CAKE wish

it will get much benefit from the operation plan. The operation plan of JAM & JELLY CAKE is

started from the purchase raw materials. The operation plan of JAM & JELLY CAKE divided in

eleven stages. The stages are as follow:

Fig: Operation Plan of JAM & JELLY CAKE

6.1 Building Interiors

Purchase Raw Materials

Transportation Storage & Inspection

Deliver to Production Plant

Processing and Washing

Mixing the ingredients

Microwave Woven

Quality Control

Packaging & Distribution

Wait for Sometime and Quality Testing

Dividing the ingredients

The office and sales centre is not harmful for the customer and employee. JAM & JELLY CAKE

will organized proper lighting and sitting arrangement for the valuable customer. Factory

and Sales office will be organized as totally air-conditioned. JAM & JELLY CAKE will provide Z

type of comfortable chair and Sofa for the customer in sales centre.

6.2 Layout Patterns

Layout patterns of JAM & JELLY CAKE will be formal, control and divides store into a series.

And it will be friendly environment and acceptable for everyone.

6.3 Manufacturing Layouts

In manufacturing layout JAM & JELLY CAKE will deals with product layout, process layout,

fixed position layout and functional layout. In product layout sector production will perform

by sequence. Process layout will perform according product process function. Layout

patterns of JAM & JELLY CAKE will be open spaces in production and sells centre.

6.4 Manpower Requirements

JAM & JELLY CAKE is a sole trader business. The managing director is the owner of the

business. Managing director can operate in production sector. Manpower is required for

Marketing, cook and sales person. So, total sales person needed five person in cook sector

who will also operate packaging and leveling. In marketing area JAM & JELLY CAKE need one

experienced marketing officer and two sells person need.

7.0 Management Plan

7.1 Develop an Organization Chart

Managing Director:

Managing Director is the owner and head of the business. The Managing Director of JAM &

JELLY CAKE will also take responsibility of production management. JAM & JELLY CAKE

always wish to increase sales volume by providing hygiene and quality food. The managing

director will serve his qualified working experience to JAM & JELLY CAKE. For this reason

Managing director should be motivated, proficient and truly concern in working area.

Sales and Marketing manager:

Sales and marketing manager is important employee of JAM & JELLY CAKE. Sales and

Marketing manager should be experienced in bakery food sector at least 5 years. The job

responsibility of sales and marketing manager is to increase the sales volume by providing

different ways.

Head of the cook:

Head of the cook is another employee of JAM & JELLY CAKE. The job responsibility of the

head of the cook is to produce hygiene bakery food. Another responsibility will be to modify

other cook to produce hygiene bakery food.

Fig: Organization Chart

7.2 Plan the Personnel

Man, Machine and money are the three basic elements of business. Manpower is the heart

production business for making quality food. For making quality and hygiene food JAM &

Managing Director

Production Manager

Sells and Marketing Manager

Head of the Cook

Cake Cook Bread Cook Biscuits Cook

Sells Person

JELLY CAKE need a small number of employee. One Production Manager, one Sells and

Marketing Manager with two sells person will be administration sector. JAM & JELLY CAKE

will start with two skilled and three inexperienced cook. Small number but qualified people

are more desirable and worthwhile for more production rather than unskilled large number

of people. So, quality should be more preferable than the quantity.

7.3 Principal

JAM & JELLY CAKE is a sole trader business. The owner of the business will be the director

and the director is responsible for operating and production sector. The director will take the

responsible of production sector to control the quality. The director is experienced person in

bakery food production. The director of JAM & JELLY CAKE is also responsible to handling the

marketing manager and the head of the cook. The marketing manager has five years

experience in bakery food marketing sector. The cook is experienced in bakery food

especially cake, bread and biscuits. Others cook are also able to handle the cake production.

So, JAM & JELLY CAKE has qualified strength in management, marketing and production

area.

8.0 Financial Plan

8.1 Capitalization Plan

Financial plan is very important factor in Business Plan. It is impossible for JAM & JELLY CAKE

to start fruitful operation without capital. Capitalization plan is the part of financial plan

which bears three functions. Capital required, Capital sources and Loans required are the

main part of Capitalization plan.

8.2 Uses of fund statement

The owner of the JAM & JELLY CAKE has land property around fifty lacks, Computer thirty

thousand, Furniture fifty thousand and bank balance ten lacks. JAM & JELLY CAKE will

organize fifteen lacks twenty two thousand and fifty thousand by bank balance and selling

land property. JAM & JELLY CAKE will also use land property to take loan from the bank. JAM

& JELLY CAKE has also plan to buy raw materials and inventory on account. JAM & JELLY

CAKE will offer one or two person for sponsorship by offering special profit.

8.3 Pro forma statement

8.3.1 Twelve month income projection statement

JAM & JELLY CAKE has made a twelve month income projection statement. The income

projection statement shown below:

Sales 60,06,000

Cost of Goods Sold (35%) (21,02,100)

Contribution Margin 39,03,900

Fixed Factory Overhead (18,52,500)

Selling and Administration Expenses (7,00,000)

Other selling Factory Expenses (4,00,000)

Interest, advertising and other expenses (2,00,000)

Net income 7,51,400

8.3.2 Three years income projection statement

After finishing the twelve month income projection statement, JAM & JELLY CAKE also

made three years income projection statement. The income projection statement shown

below:

Sales 1,80,18,000

Cost of Goods Sold (35%) (63,06,300)

Contribution Margin 1,17,11,700

Fixed Factory Overhead (55,57,500)

Selling and Administration Expenses (21,00,000)

Other selling Factory Expenses (12,00,000)

Interest, advertising and other expenses (6,00,000)

Net income 22,54,200

8.3.3 Break even analysis

Break even analysis of JAM & JELLY CAKE determines the sales needed to break even. The

approach is a useful complement to sensitivity analysis, because it also sheds light on the

severity of incorrect forecasts. JAM & JELLY CAKE calculate the break-even point in terms of

accounting profit. JAM & JELLY CAKE will follow equation Technique to determine the Break

even analysis.

JAM & JELLY CAKE assume that average contribution margin will be 48 percent. Fixed costs

average Tk. 25,00,000 per year.

48% of sales = 0.48, 52% Variable Cost = 0.52 and Sales = x

So, the Break Even -

Sales = Variable Costs + Fixed Costs + Net Income

Or, x = 0.52x + 25,00000 + 0

Or, 0.48x = 25,00,000

Or, x = 52,08,333.

CARVE wish the break even point around tk. 53,00,000 per year. It is not exact figure. It can

be change.

9.0 Risk Assessment

9.1 Risk Potential Problem

Risk is the part of business. JAM & JELLY CAKE think every business is risky. JAM & JELLY

CAKE has a plan against risk. JAM & JELLY CAKE will save risk purpose 15% from sales

revenue. JAM & JELLY CAKE think it will get much benefit from the risk fund.

9.2 Obstacles and Risks

JAM & JELLY CAKE think it can face some problem. All the products of JAM & JELLY CAKE are

demandable. Jam & Jelly cake, Jam & Jelly bread, Jam & Jelly biscuits, chicken cake, chicken

bread, fish cake, vanilla birth day cake, Jam & Jelly Cake beach cake, Jam & Jelly Cake

weeding cake will get popularity quickly to the middle, upper and vegetarian people. Bakery

business is profitable business. So, there is a chance to copy the products in the market. On

the other hand, every business has some risk. To start the business of JAM & JELLY CAKE, it

needs huge amount of money. To collect the money and interest rate is risky for JAM &

JELLY CAKE. Every business has a probability to get loss. JAM & JELLY CAKE is a sole trader

business, so if any accident or any other financial problem can occurs harmful effect to JAM

& JELLY CAKE.

9.3.0 Plan against the Risk and Obstacles

9.3.1 Contingency Plan

JAM & JELLY CAKE will take the license from the bakery food industry. JAM & JELLY CAKE will

prepare trademark and logo for its products. The entire products will be different shape

from the other bakery product of the market. JAM & JELLY CAKE will take every types of

authority from the relevant sector. Tax identification number and it will be organized with

trade license by the power of Business sector of Dhaka City Corporation. So, JAM & JELLY

CAKE will get the legal authority from the city corporation and other business area.

9.3.2 Insurance Plan

JAM & JELLY CAKE will be organized by Insurance Plan to reduce the risk. JAM & JELLY CAKE

will open an insurance file for Business Purpose in American Life Insurance Company

(ALICO). Firstly, insurance file will be open for ten years.

10.0 Supporting Documents

10.1 Pictures

10.3 Documents for Bank account and L/C

JAM & JELLY CAKE will export machine for credit sales. So, it is necessary to open a Bank

account and L/C in a Bank. For opening a L/C the bank will provide to JAM & JELLY CAKE the

following documents:

1. Bank application form

2. Valid Trade License

3. Import registration Certificate.

4. Income Tax declaration or a TIN.

5. Memorandum of Association.

6. Photograph

7. Insurance Cover Note and receipt of premium payment.

8. A copy of Indent etc.

For opening a L/C the bank will provide to JAM & JELLY CAKE the following documents:

1. L/C Application Form

2. L/C A Form (Letter of Credit authorization Application Form)

3. IMP Form

4. TM Form

5. Agreement Form

6. Charges Documents

7. Guarantee Form

After submitted the documents JAM & JELLY CAKE will have to submit the following

documents:

1. Valid Trade License

2. Income Tax declaration or a TIN.

3. Memorandum of Association.

4. Photograph

5. Insurance Cover Note and receipt of premium payment.

6. A copy of Indent etc.

10.4 Resume(s)-required

JAM & JELLY CAKE will offer proper educated and experienced person in marketing,

operation & production and cook area. Marketing and sells manager will be at least five

years experienced in bakery food area and cook should be seven years experienced in bakery

food sector. JAM & JELLY CAKE will prefer more experienced person in bakery food area.

Experienced certificate, educational certificate, Photocopy of Passport as a confirm memo of

nationality are necessary to include with resume.

10.5 Work Schedule

JAM & JELLY CAKE has made plan for working schedule. Every day office and showroom will

be start its operation at 8.00 a.m. and finished at 10.30 p.m. The production manager does

not attend all time. Before the production and to justify the quality of the product, the

production manager can test the quality of the product. For Factory working schedule cook

will start its operation 9.a.m. to 7.p.m. and they will get two hours break for pray and lunch.

Marketing & sells manager and sales person will works as full time office employees.

11. Conclusion

Food industry is one of the important potential export industries of Bangladesh. Food

industry will generate employment opportunities which in turn will create savings and

investment on consequent flow of capital. Variation in productivity growth is captured by

material consumption, thus obscuring the role of physical and human capital. JAM & JELLY

CAKE is a bakery business and one of the bakeries of food industry. It will offer various types

of hygienic and quality bakery food mainly for middle, upper classes and vegetarian people

in Dhaka, Bangladesh. JAM & JELLY CAKE will focus with bakery food like cake, bread and

biscuits with different flavor. Jam & Jelly cake, Jam & Jelly biscuits, Jam & Jelly bread,

Chocolate cake, chicken cake, chicken bread, vanilla cake, egg cake and regular cake &

biscuits will be product of JAM & JELLY CAKE. JAM & JELLY CAKE will be organized as a sole

trader business. JAM & JELLY CAKE will develop to meet the growing need of the health-

minded consumer who wants a great, healthy bakery food that is both delicious and fresh.

Consumers are seeking healthful traditional bakery food with different new flavors. With our

incredible purchasing power and the increasing need for healthy hygiene and quality bakery

food, JAM & JELLY CAKE created an aggressive, but responsible. The growth plan through the

area developer model to help people eat healthier, smarter and more satisfyingly in Bakery

Food sector across the country.