Business Plan On Bagasse
Business Plan On Bagasse
Business Plan On Bagasse
Business Strategy
A business strategy is the means by which it sets out to achieve its desired ends
(objectives). It can simply be described as a long-term business planning.
Typically a business strategy will cover a period of about 3-5 years (sometimes
even longer).
A business strategy is concerned with major resource issues e.g. raising the
finance to build a new factory or plant. Strategies are also concerned with deciding
on what products to allocate major resources.
Strategies are concerned with the scope of a business' activities i.e. what and
where they produce.
Two main categories of strategies can be identified:
1. Generic (general) strategies, and
2. Competitive strategies.
The main types of generic strategies that organisations can pursue are:
1. Growth i.e. the expansion of the company to purchase new assets, including
new businesses, and to develop new products. The Inland Revenue has
expanded from being just a tax collector, to other functions such as collecting
student loan repayments and paying tax credits.
2. Internationalization/globalization i.e. moving operations into more and more
countries.
3. Retrenchment involves cutting back to focus on your best lines. The Americans
refer to this as 'sticking to the knitting'.
Chapter 2
Description of Venture
The business definition framework by Derek F. Abell proposes that a business can
be defined by using three dimensions: customer groups (who we're going to
serve), customer needs (what customer need we're attempting to meet), and
technology or distinctive competencies (how we're going to meet that need). This
approach strongly stresses understanding customers and not on an industry and
its products or services. Based on these three dimensions, Abell's competitive
strategy classification scheme proposed that a business could be defined by its
competitive scope (broad or narrow) and by the extent of competitive
differentiation of its product/service offerings.
Page | 1
Based on the Abells framework we have defined our business by answering the
three core questions-
We can produce those products at a minimum cost. It can be a relief for those
poor people. As we have the cost leadership, we will be able to reduce the retail
price and make them available and to the reach of the poor people. So it is
feasible and economically sustainable and we will be able to get the traditional
market as well. Our products are environmentally friendly. So there is no risk
factors involved.
Chapter 3
Products Overview:
3.1 Compostable Tableware
Made from 100% sugarcane
100% biodegradable
120 degree oil and 100 degree water proof
Microwave safe
Page | 4
3.6 Boards
It can also be used for making boards resembles like Plywood or
Particle board
It has wide usage for making partitions, furniture etc.
It is eco friendly method as it does not involve any harm to the
timbers in the world, like plywood. It is known as Bagasse Board
It is a good substitute for plywood.
Page | 5
Page | 6
Chapter 4
Office Equipment and Personnel
4.1 Building and Equipments
We will buy a land in Thakurgaon and establish our main industry there. Over
there,, sugar fiber is available at a large scale from local sugar mill. We will
establish a manufacturing unit covering 14 Katha
atha (10,080 square feet, or 0.2314
acre) areas.
4.2 Furniture
Furniture includes objects
ts such as tables, chairs, desks, fire
f proof file
le cabinets etc.
usually kept in a house or other building to make it suitable or comfortable for
Page | 7
living or working in. We are using metal and wooden furniture. In all the office
rooms or cubicles we are putting green plants and other small decorations.
4.3 Generator
In electricity generation, an electric generator is a device that converts mechanical
energy to electrical energy. The reverse conversion of electrical energy into
mechanical energy is done by a motor; motors and generators have many
similarities. We are using electric generator of 400 KVa as a backup service which
will give us 24 hours.
4.4 Transport
We will hire 2 Microbus and 2 vans to transport our employees and carrying raw
materials. These vehicles will also be used to take our office employees and for
other official use. The vans will be used to carry the Bagasse from nearby sugar
mills. All of those transports will be leased.
4.5 Personnel
We will have around 50 workers at the beginning and around 12 officials. Workers
will be appointed considering their merit and skill and local workers will get the
preference. We will try to have at least 10 experienced workers who can train
others for a short period of time. On the other hand we will need some officials to
run the operation starting from the floor supervisor to the managers. We will need
marketing, sales, finance, production, accounting and HR personnel to run the
organization. We will also need 5-6 security guards as well.
Page | 8
Name
Designation
Director Finance
Md Atiqur Rahman
Chapter5
Industry Life Cycle
Industry Life Cycle refers to a concept relating to the different stages an industry
will go through, from the first product entry to its eventual decline. There are
typically four stages in the industry lifecycle. They are defined as:
and cooperation take on a complex form. Some companies may shift some of the
production overseas in order to gain competitive advantage. Growth is no longer
the main focus; market share and cash flow become the primary goals of the
companies left in the space.
Decline is the final stage of the industry lifecycle. Decline is a stage during which a
war of slow destruction between businesses may develop and those with heavy
bureaucracies may fail. In addition, the demand in the market may be fully
satisfied or suppliers may be running out. In the stage of decline, some companies
may leave the industry if there is no demand for the products or services they
provide, or they may develop new products or services that meet the demand in
the market. In such cases, this will create a new industry.
Table 2
Now, analyzing the industry, we have come to conclusion that the industry in is still
in its introduction stage or right at beginning of the growth stage. Currently,
competition is not so high. In Bangladesh there are not any cloths, and tissue
producers in the market who is for social business. As it is a social business we
have not got any competitor though it will increase in near future. Capital intensity
Page | 10
Though all of them are doing business for profit maximization, as a new company
we can consider themselves as our competitors because we are also making
profit. But as time goes by, we can easily establish a monopoly in the social
business market.
Chapter 6
Marketing Strategy
6.1 Market Segmentation:
In our market definition we included all the poor people of Bangladesh who has
the least chance to use our product. Slum people, Village people, rural areas,
Garments workers, are our main target customer. In Bangladesh we can see
different income people. But we have selected 5 income level people from the
bottom of income level
Upper class
Page | 11
To help them to make their living standard better is our main purpose through
providing quality product in cheap price. Slum people are our main customer.
Because their living standard is below the poverty line, they are not conscious
about the modern life. They do not have quality cloths or good sanitation system.
As we are producing tissue we want to make them used to with toilet tissue. We
have also targeted poor businessmen who can buy plastic container from us for
their business purpose like chotpoti seller, biriyani seller etc.
Chapter 7
PESTEL Analysis
P E S T E L analysis is generally referred while evaluating an industry analysis in
any country. It deals with the six factors of the country, where any specific industry
is operating its business. Moreover, it highlights the effects of the four factors on
the industry & its business. The 6 alphabets in the word P E S T E L have 6
meanings according to its abbreviation. They are:
Page | 12
Political Analysis
Economic Analysis
Social Analysis
Technological Analysis
Environmental Analysis
Legal Analysis
Peoples purchasing power is increasing. The number of upper & uppermiddle class families is also increasing. The Household final consumption
expenditure; etc. (annual % growth) in Bangladesh was reported at 5.21 in
2008, according to the World Bank. Annual percentage growth of
household final consumption expenditure is based on constant local
currency. Aggregates are based on constant 2000 U.S. dollars. We are
observing a steady increasing rate in the household and office
expenditure over the past 7-8 years even with presence of inflation. This
indicates the purchasing power of the customers is increasing.
lifestyle trends:
Bangladesh is a country where the social principles are strictly followed and
the entire social structure is driven by norms. But, the Bangladeshi people
are not stubborn in terms of social culture; rather they humbly accept things
which are new and socially accepted. The Bangladeshi people are also
very much social and they have the urge to know what is happening
around. Therefore, there is a potential demand for any business related to
social cause
Demographics:
Bangladesh is ethnically homogeneous. Indeed, its name derives from the
Bengali ethno-linguistic group, which comprises 98% of the population. In
Page | 14
2009 the population was estimated at 156 million. Religiously, about 90% of
Bangladeshis are Muslims and the remainder is mostly Hindus.
Consumer views:
In Bangladesh poor people look for cheap product with highest quality they
can get. Whenever there is product, with their expectation is welcomed by
people.
social business. Bangladesh is a humid country. So the life of the electronics and
other tech devices are quite short here. For networking we have to put the best
quality materials to make it more sustainable. For the environmental issue, our
cost might go a little higher.
Chapter 8
Porter's Five Forces Analysis
Porter's five forces is a framework for the industry analysis and business strategy
development developed by Michael E. Porter of Harvard Business School in 1979.
It draws upon Industrial Organization (IO) economics to derive five forces that
determine the competitive intensity and therefore attractiveness of a market.
Table 3
Page | 16
Chapter 9
Marketing Plan
Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders. It
generates the strategy that underlies sales techniques, business communication,
and business developments.
For effective marketing and sales strategy we have used marketing mix strategy or
the 7P. Which are:
Product
Price
Promotion
Place
Physical condition
Process
People
9.2 Vision:
Within next five years we want to become one of the biggest contributors in
social business market
9.3 Message:
We have developed a message for our customers. Our message to our customers
will be:
Go Green, Go Sweet
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9.4 Products:
1. Compostable Tableware
Made from 100% sugarcane
100% biodegradable
120 degree oil and 100 degree water proof
Microwave safe
2. Biodegradable Tableware
Made from 100% sugarcane
100% biodegradable
120 degree oil and 100 degree water resistant
Can be used in microwave and refrigerator
Variety of sizes, shapes and uses available
Healthy, Nontoxic, Harmless and Sanitary
Can be recycled and protect the resource
From nature and back to nature
4. Disposable Tableware
100% natural fiber pulp, non-toxic, healthy and sanitary to use.
No toxic substance or odor is released even in high temperate or in
acid/alkali condition; 100% food contact safety.
Safe to be used in microware, oven and refrigerator.
100% biodegradable within two months; wastes will decompose into
CO2 and water; waste can be burned, buried, or composted.
Recyclable; renewable; reuse to make paper; reduce the need for
petroleum-based material.
120C hot oil and 100C hot water resistant.
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5. Bagasse Plate
Sizes are available from 6 inch to 10 inch
100% natural fiber pulp, non-toxic, healthy and sanitary to use.
No toxic substance or odor is released even in high temperate or in
acid/alkali condition; 100% food contact safety
Safe to be used in microware, oven and refrigerator
100% biodegradable within two months; wastes will decompose into
CO2 and water; waste can be burned, buried, or composted
Recyclable; renewable; reuse to make paper; reduce the need for
petroleum-based material
120C hot oil and 100C hot water resistant
Stackable ; easy to separate; smooth and strong; leak proof; edge
trimming can be omitted for auto lines
More than 200 items are for your selection; customized moulds are
available per marketing requirements
6. Boards
It can also be used for making boards resembles like Plywood or
Particle board
It has wide usage for making partitions, furniture etc.
It is eco friendly method as it does not involve any harm to the
timbers in the world, like plywood. It is known as Bagasse Board
It is a good substitute for plywood.
Page | 20
produce a selvage denim fabric made from woven cotton yarns and sugar cane
fibers.
3) Relationship Pricing
Although the company norm is to charge 15% as the company commission, the
proposed company, in rare cases, will charge less for the bigger clients based on
the considerations of future potential profit streams over lifetime of clients.
Page | 21
9.8 Promotion:
As we introduced new social business concept, we are having a small number of
potential competitors. The target market of our company is medium and lower
class people. The promotional plan of our company will let the customers know
about its existence, features, quality, service, location, offers and other necessary
information which the customers would like to know. Besides, the promotional
activities would also help them decide why they would choose our products among
the others and
d it might create a latent demand. The p
promotional
romotional mix would consist
of:
Advertising
Direct marketing
Internet marketing
sales promotion
Public Relation
Personal Selling
Table 4
9.10 Advertising:
Advertising is a non personal medium of promotional plan. It will involve mass
media like television, radio, news paper etc. Being a very cost-effective
effective method for
communicating with large audiences, advertising in different media vehicles can
be used to create a brand image and symbolic appeal for our company. Most
people regard advertising as the ads and commer
commercials
cials they read and see every
day. It is the buying, selling and planning of the advertising media that account for
the major portion of the typical advertising budget. With most of the money in an
advertising budget going to media advertising insertions, the agency will need to
continue paying attention to media
media-planning function.
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To prepare itself as a consolidated media planner for its clients, the agency will
need a clear understanding of media tools and the most of efficient way of utilizing
them.
We promote
romote our company by giving advertise on newspaper, magazine and radio.
Radio
News Paper
Magazines
Sponsorship
Managing Events
Table 5
Page | 23
Television:
Television is an important medium to reach a huge amount of customers.
Television ads would attract viewers attention. As our target market is lower
middle class and lower class people. Still we are not using television because of:
Budget constrain
The target market is not focused with TVC
The goal is not attainable with this media.
Pros:
1. Television is an extremely creative and flexible medium. Virtually any product
message can be adapted to TV.
2. Network television is the primary vehicle for reaching mass audiences.
3. Television offers advertisers prestige lacking in most other media.
Cons:
1. The television message is perishable and easily forgotten without expensive
repetition.
2. Advertising costs continue to increase. This had led to more and shorter
messages, which contribute to commercial clutter.
Newspapers:
Printed ads in daily news papers would also enhance customers awareness about
our product. Colorful yet classy ads simply describing our products and its
features, occasionally mentioning the lucrative offers and announcements would
create much awareness. Besides, reviews and features about our product in
newspaper would be a very good idea about customer awareness.
Media Vehicle
Prothom Alo
Sections
For ads: First Page bottom-right
section, Last Page Top section,
Cholti-bisso, Projonmo dot com
second last page, etc.
For Reviews: Naksha (including 2
whole pages).
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Bangladesh
Protidin
Table 6
Pros:
1. Newspapers have wide exposure to a general population.
2. Newspaper advertising is extremely flexible, with opportunities for color, large
and small space ads, timely insertion schedules, and some selectivity through
special sections and targeted editions.
3. Newspapers reach their audiences at the convenience of the reader.
Cons:
1. The average person spends less than 30 minutes reading a newspaper.
Consequently, most ads go unread.
2. Teenagers and young adults do not demonstrate high newspaper readership.
3. Advertising costs have risen much more sharply than circulation in recent
years.
Radio:
Now a days radio is one of the most popular medium of entertainment. When
people are on their way to work or other destinations, they listen to radio. So we
should follow the timings like 8.30-10.30am and 5.00-7.00 pm. It will also follow
the TVC timing
Media Vehicle
Program
Radio Foorti
Radio Today
Bangladesh Betar
Chayachoder Gaan,
Afternoon program,
Night program
Table 7
Page | 25
Pros:
1. Radio can more selectively target an audience segment than virtually any other
medium, especially teens.
2. Radio goes with listeners into the marketplace, giving advertisers proximity to
the sale.
3. Radio, with its relatively low cost for production and immediacy, can react
quickly to changing market conditions.
Cons:
1. Without a visual component, listeners often use radio as background rather
than paying full attention.
2. The low average audience of most radio stations requires high frequency to
achieve acceptable reach and frequency.
3. Adequate audience research is not always available, especially in medium and
smaller radio markets.
Magazines:
A lot of people are regular magazine readers. So placing ads on magazines would
make them exposed to our service. Such popular magazines are
Binodon
Canvas
Charbela Charidik
Mirror etc.
Pros:
1. The number and range of specialized magazines provide advertisers with an
opportunity for narrowly targeting audiences. Both demographic and
geographic selectivity can be achieved.
2. They provide a prestige, quality environment for advertisers.
3. Magazines advertising has a long life, especially since issues are often passed
along to several readers.
Cons:
1. Magazines are more expensive on an audience-reach basis than any other
major medium, with the possible exception of direct mail.
2. Most magazines have relatively long advertising deadlines, which reduce
flexibility and the ability of advertisers to react to fast-changing market
conditions.
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Billboards:
We are planning to set up a very few billboards at prime areas of Dhaka. It would
attract the business people.
Sponsorship:
We will not go for any sponsorship program because we are not higher profit
Maximization Company. Our main purpose is to help people.
Managing Events:
We would arrange various short events in particular occasions like New Years
Eve, Eid, Valentines Day, Halloween in under privileged areas.
Direct Marketing:
Direct marketing involves communicating directly with the target market. It
includes variety of activities like telemarketing, direct selling, direct response
through direct mail etc. Manage service provider will have a well managed direct
marketing division.
Telemarketing division would take care of all the enquiries of
the customers and encourage them to purchase our service.
They will also let them know about the latest offers and
facilities of our company so that the customer gets interested.
Besides, they would also directly call target customers like
corporate companies, big industries etc. Then they will
elaborate about the corporate facilities and offers and so on.
Direct response advertising will also let the customers
communicate directly from internet.
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Public Relations:
Public relations also include advertising, participating in community services,
sponsorship etc which our company would do a few of them in the long run.
Because as a new company, we would have to first make our existence clear in
the market then we will have to build a strong reputation.
Personal Selling:
In case of personal selling, our company would do these activities Send sales persons from door to door at our target people door and tell
about our product and our social cause.
Telephone sales are also a part of personal selling.
9.11Schedule of Campaigning:
For proper advertising & other expense we need a schedule or a chart which are
given below:
Jan
Feb
Mar
Apr
Newspaper
Yes
Magazines
Yes
Radio
Yes
Yes
Bill board
Yes
Yes
Yes
Yes
On line
Yes
Yes
Yes
Yes
May
Jun
Jul
Aug
Sep
Yes
Yes
Oct
Nov
Dec
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Table 8
Page | 28
Year 1
Year 2
Year 3
Year 4
Year 5
Newspaper
150,000
175,000
150,000
120,000
100,000
Magazine
50,000
100,000
150,000
100,000
75,000
Radio
30,000
60,000
50,000
40,000
30,000
Billboard
100,000
100,000
150,000
100,000
100,000
Online
TOTAL
15,000
345,000
20,000
455,000
15,000
515,000
20,000
380,000
15,000
320,000
Table 9
Month
Compostable
Tableware
Biodegradable
Tableware
Paper
Cup
with
Handle
Disposable
Tableware
Boards
Bagasse
Plate
Sugarcane
Denim
Fabric
(sft)
Sep,
(2012)
1500
1500
5000
1300
800
5000
10000
Oct
1600
1700
5500
1500
900
5500
15000
Nov
1700
Dec
2000
1900
5700
1600
1000
6000
18000
2100
5900
1800
1200
6500
22000
Jan,
(2013)
2100
2300
6000
2000
1300
6700
25000
Feb
2200
2500
6200
2100
1400
7000
28000
Mar
2500
2700
7000
2200
1500
7500
32000
Apr
2600
2800
8000
2400
1600
8000
35000
May
2700
3000
9000
2600
1700
9000
38000
Jun
3000
3200
12000
2800
1800
10000
42000
Jul
3300
3300
12500
3300
1900
11000
45000
Aug
3500
3400
13000
3500
2000
12000
50000
9.14People:
An essential ingredient to any service provision is the use of appropriate staff and
people. Recruiting the right staff and training them appropriately in the delivery of
their service is essential if the organization wants to obtain a form of competitive
advantage. Client makes judgments and delivers perceptions of the service based
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on the employees they interact with. Staff should have the appropriate
interpersonal skills, attitude, and service knowledge to provide the service that
clients are paying for. In our Company we will appoint people based on their
product knowledge and those who have good interaction capabilities. We need
people to stay with us for a long time and we have to make a good reputation
among all the social business firms. While selecting people for the company we
will maintain a minimum skill requirement and after selecting the employees we
will train them at least 2 months for a better quality output. We will provide a
personality development training which will help them to build good attitude and
give them an overall service knowledge by which they will be able to convince the
Customer. After doing all these things we can hope to get a good feedback from
our customer as our whole business depends on them.
9.15 Process:
This area of marketing depends on how the company is able to handle the
customers demands and needs properly. Any customer query, confusions and so
on must be met through proper communication by those responsible for the work.
It can be done while presenting the work or before the contract is made. There
maybe times where customers may ask to scale back the efforts since they cannot
handle the volume and have to expand the resources, therefore the agencies job
will be to adjust the campaigns accordingly.
9.17 Controls:
Marketing plan of this firm will be connected with the production and operational
plans. Because all the agreements and deadlines have to be maintained by the
production and operation department otherwise it will largely affect the fame of the
firm. From production to delivery each and every step needs to be supervised with
the discipline, quality and other important concerns. Any error at any step may fail
the firm to satisfy the customers as per demand.
A plan always needs to be flexible so that changes can be made at crucial or
emergency situations. There will be alternative plan for every department along
with the core planning, so that if one plan fails than alternative plan can substitute
that.
Page | 30
Cost control is a vital issue for increasing profitability. If the production cost is low
than it aids to generate more profit. Cost is dependent on different variables like
less production , too much waste, more bargaining power of suppliers, inefficient
employees etc. These independent variables must focused more to cut the cost
respectively.
Supply chain is always important in terms of efficiency. Proper supply of raw
materials and other effective needed materials can play a big role in business
efficiency. If the production and operation process is too long than it will simply
incur more labor cost and time will be wasted as well.
Communication is the crucial point for business success for an ad company.
Company needs to maintain good relationship with the media. A very good
channel in the media is like a prerequisite for a company to attract more and more
customers. A good communication also helps the company to increase the
business fame in the industry.
Page | 31
Chapter 10
Operational plan
10.1 Description of companys operation:
Our aim is to achieve very fast growth and gain very good customer response on
our venture because we are first in Bangladesh for this kind of unique production
process. As our business is manufacture based final product from sugar cane fiber
that provides different type of tangible product to customers, we will emphasize on
our operational plan to make it efficient. An effective plan will help us to implement
the strategies in our day to day operations. We will focus on building up customer
reliability by assuring a better quality product.
We have developed our total operation system in three parts. That is given below:
Each and every wing will be working independently. The purpose of dividing the
whole operations into three parts is to come up with better efficiency and better
manufacturing process. We hope will be able to deliver the best product made
from sugar cane fiber and satisfy them at our level best.
Cash Management:
Page | 32
This is the main purpose of this department. As we are going to have many
products, this will help us to keep track of cash inflows and outflows effectively.
Using the daily, weekly, monthly and annual data, our financial analyst will
forecast and manage the cash resources, including the investment of cash
balances. This information will guide us to take decisions effectively.
Accounts Payables:
The Finance department will keep the record of daily purchase of raw materials for
production and for necessary equipments on credit. It will process, verify and
make payment to the vendors within the time. It will be carefully handled so that
we can maintain a long-term relationship with the suppliers.
Management Information:
Another important responsibility is to communicate the findings with the
management team. After getting all the necessary data, finance department will
present statistical information to operating executives and owners to facilitate
identification of areas for improvement. It will recommend such kinds of things like
to cut one of the operating costs, which is adding less value to the business, or to
control costs of foods services etc.
Financial Reporting:
On the basis of daily reporting, monthly operating statement, balance sheet, cash
flow projections will be made. Experts will calculate the full year forecasts and
other various analytical reports.
Page | 33
All the aspects of the payroll functions are going to be taken into account including
cost segmentation and daily labor productivity tracking, overtime of the employees
will be recorded so that the salary and wages can be managed effectively.
Customized Reporting:
Our team will be able to provide customized financial reports to meet owner's
needs or requirements for the profitability.
Operational plan
Supporting Wings
Primary activates
Finance
Manufacturing operation
Human Resource
Administration
Production and delivery
Information
Technology
Customer feedback
Superior
Profitability
Human resource:
The Manager on Duty is a particularly important and critical role for the success of
our venture. In a manufacturing related business, HR department acts the crucial
activities of recruiting capable persons who will directly serve the customers. .
Information Technology:
Page | 34
There are many businesses, which need different software packages for satisfying
their operational as well as functional needs. To fulfill this requirement, these
companies sign deals with the software manufacturing companies. Information
technology is useful in ensuring the smooth functioning of all the departments in a
company such as the human resource department, finance department,
manufacturing department and also in security related purposes. This kind of
technology in this service sector allows us to work effectively and get rid of errors
that can be made while working manually.
Administration:
The main purpose of this Administration is to plan, direct, or coordinate supportive
services of an organization. Basically, the administrative activities include all the
crucial sections of the business.
Property management:
This administration department such as coordination of marketing, finance will
manage the total plant and HR department will be done. Adding new service or
adding new technology will be fully supported by this sector.
Primary activity:
Our primary activity is divided in to production, sales, marketing, and customers
feedback. These primary activities are very important for executing any order.
Month
Compostable
Tableware
Biodegradable
Tableware
Paper
Cup
with
Handle
Disposable
Tableware
Sep,
(2012)
1500
1500
5000
1300
Boards
Bagasse
Plate
Sugarcane
Denim
Fabric
(sft)
800
5000
10000
Oct
1600
1700
5500
1500
900
5500
15000
Nov
1700
1900
5700
1600
1000
6000
18000
Dec
2000
2100
5900
1800
1200
6500
22000
Jan,
(2013)
2100
2300
6000
2000
1300
6700
25000
Feb
2200
2500
6200
2100
1400
7000
28000
Mar
2500
2700
7000
2200
1500
7500
32000
Apr
2600
2800
8000
2400
1600
8000
35000
May
2700
3000
9000
2600
1700
9000
38000
Jun
3000
3200
12000
2800
1800
10000
42000
Jul
3300
3300
12500
3300
1900
11000
45000
Aug
3500
3400
13000
3500
2000
12000
50000
Table 10
Technology utilization:
We will use different types of technology for maintaining our production process,
maintaining proper inventory, manage order from buyers and for selling our
products. Our most of the machines are automatic that are controlled by centre
controlling unit that maintain maximum productivity. If any fault occurs in any parts
of the production system then manufacturing process will be ceased for moment
until machines are properly repaired. That will prevent us from occurring any major
accident. Our inventory system is maintained by (CBIT) computer based inventory
system. So we reduce inventory holding period that will help us minimizing cost
and speeding the production process. We will use website for receiving orders. So
our investors will not face any hustle for giving orders and we can supply them
products in priority based with great efficiency.
We need machinery that is both efficient and cheap. So china is the best option.
We need different types of machinery for producing of final output because our
product range is diverse. For producing Biodegradable and Disposable tableware
we need almost dame types of machinery with different shaped dice. But for
producing Boards and Sugarcane Denim Fabric from sugar cane fiber we need
more expensive and unique type of machine. For manufacturing fabrics we have
to set up different types of textile machineries. We have to buy chair, fan, trolley,
computer, light, table besides machinery.
Page | 37
Chapter 11
SWOT Analysis
The SWOT analysis is an extremely useful tool for understanding and decisionmaking for all sorts of situations in business and organizations. SWOT is an
acronym for:
A.
B.
C.
D.
Strengths
Weaknesses
Opportunities
Threats
Page | 38
STRENGTHS
WEAKNESSES
SWOT
THREATS
OPPORTUNITIES
1. Bangladesh has a large potential
market for social business.
3. Political instability.
3. Environmental degradation.
4. National economy and price level.
5. Possible negative publicity because
of less marketing experience.
Page | 39
Chapter 12
Human resources plan
12.1 Form of Ownership:
Type of ownership (Type 1 Social Business):
This kind of social business is a non-loss, non-dividend devoted to solving social
problem and owned by investors who reinvest all profits in expanding and
improving the business. The investors can take back their original investment over
a period of time, but cannot take any profit. According to Nobel Peace Prize
laureate Prof. Muhammad Yunus,
A Type 1 is when the social business produces a product or service that is
specifically targeting a social objective.
We will have equal shares in our venture, therefore risk is equal. In case of
bankruptcy and liquidation, the loss will be divided equally among us. No partner
can transfer h share to any other person without the prior consent or willingness of
all other partners. We all will be Active partners which mean the partners who
actively participate in the day-to-day operations of the business are known as
active or working partners.
Post
Responsibility
Assigned to
Director - Finance
Shamiul Haque
Page | 40
Table 11
These are the responsibility we are assigning. These key people will work as
directors of different department. They will work individually with the help of other
employees those will be hired. But at a specific period of time, there will be board
meetings and evaluations of each and every department's performance. Any kinds
of changes in decisions will be evaluated first, and then will be implemented.
Each and every of these members will cooperate, because without cooperative
actions we cannot make sure high quality service to the customers. From
financing to the operations will work as it is one individual department.
Fund Management:
Financial manager has to deal with managing funds of cash and other
disbursements. He has to pay salaries to the employees and the stuffs. He has to
maintain a minimum amount of fund in order to hedge any risk. The key role of
managing funds is given below:
Anticipation of funds(capitalization)
Raising of fund
Allocation of fund(investment decision)
Assessment of fund
In order to promote sales of our services that will most benefit the
customers and to establish creditability through communication in a manner
that will optimize the companys market share and savings, improve the
companys efficiency, help achieve the companys mission and goals, and
result in outstanding customer service.
Major responsibilities involve supervision, marketing, profitability and sales,
reporting, purchasing, resale pricing, inventory, service, maintenance, and
other duties as requested by management.
Maintaining a positive attitude that promotes teamwork, keeps the workers
cooperative and happy and increases their productivity within the firm and
thus maintains a favorable image of our company.
Provide supervision which involves establishing and communicating
division goals and results to employees, staffing the division and delegating
the workload, actively supporting employee growth, and upholding
company policies.
Establish and communicate division goals and results to employees and
establish division goals with assistance from upper management.
Be instrumental in coordinating and assisting the department managers in
developing annual marketing plans. Will also coordinate all advertising for
the company and negotiate with print and other media representatives to
ensure efficient purchasing of advertising.
Another important duty is staff division and delegate work load that is
needed to meet market requirements. That person will also establish and
update job descriptions for all positions within the division and recommend
selection of employees based on job requirements. They will also review
general work assignments for each employee daily. The marketing director
will also staff and adjust work force to fit seasonal needs with a minimum of
unproductive labor costs. The marketing director will also be responsible to
employ seasonal work-sharing arrangements to minimize layoffs and
unemployment compensation costs if so needed.
Should be able to inform all customers of safe service. In addition be
responsible for developing and updating a regular maintenance schedule
for all division facilities and equipment.
Responsible for internal employee growth and will schedule and supervise
orientation for new division employees and update employees regularly on
new service knowledge and also identify in writing annually any training
which is needed for individual employees while discussing performance.
Uphold all company policies and insure that division facilities and
equipment meet all federal and state regulations.
Reviewing marketing activities with all applicable management. These
activities can include: sales call recap, market share report, sales analysis
Page | 44
Page | 46
Chapter 13
Social Responsibility Strategy
Corporate social responsibility (CSR, also called corporate conscience, corporate
citizenship, social performance, or sustainable responsible business/ Responsible Business)
is a form of corporate self-regulation integrated into a business model. CSR policy
functions as a built-in, self-regulating mechanism whereby a business monitors and
ensures its active compliance with the spirit of the law, ethical standards, and
international norms. In some models, a firm's implementation of CSR goes beyond
compliance and engages in "actions that appear to further some social good, beyond the
interests of the firm and that which is required by law."CSR is a process with the aim to
embrace responsibility for the company's actions and encourage a positive impact through
its activities on the environment, consumers, employees, communities, stakeholders and all
other members of the public sphere who may also be considered as stakeholders.
It is defined as the voluntary activities undertaken by a company to operate in an
economic, social and environmentally sustainable manner. Our company recognizes the
value of incorporating CSR practices into operations. Operating responsibly also plays an
important role in promoting local values internationally and contributes to the sustainable
development of communities.
In Bangladesh no legal compulsion is there. A few years back, Bangladesh Bank (BB)
issued circular urging CSR activities for scheduled banks. Now BB publishes a very
comprehensive annual report on CSR activities of the scheduled banks. This has compelled
the banks to be forthcoming about CSR activities because the annual report has been the
instrument of compulsion.
There is no denying that because of the central bank, CSR activities have been virtually
institutionalized in the banking sector. In this connection it may be mentioned that
Bangladesh Bank has adopted a number of pro-poor measures through the banking
channels which have helped accelerate poverty alleviation activities. However, it should be
remembered that decoration work in the VIP road, arrangement of golf tournament,
display of gala fireworks in connection with the opening ceremony of state functions etc.,
are not acceptable under CSR programs. We try to do actual CSR activities of programs.
We try to ensure human rights, labor standards, and environment friendly plant.
Page | 47
Chapter 14
E-business
business Strategy
Facebook Fanpage
Twitter Page
Twitter Page:
Page | 48
Following Twitter page will also benefit the customers and it would be easier for us
to do marketing in such an inexpensive way.
Page | 49
Chapter 15
Financial forecasts and other information
15.1 Assumptions:
Our all assumption about our business are-
Sl.
Description
Year 1
Year 2
Year 3
Year 4
Year 5
sales growth
20%
20%
15%
15%
20,000
30,000
35,000
47,000
60,000
3,480,0
00
4,176,0
00
5,011,2
00
5,762,8
80
6,627,3
12
20,000,
000
30,000,
000
35,000,
000
47,000,
000
60,000,
000
12%
13%
14%
15%
1.0%
1.0%
1.0%
1.0%
1.0%
1.5%
1.5%
1.5%
1.5%
1.5%
480,00
0
480,00
0
480,00
0
600,00
0
600,00
0
Dividend expense
11,700,
195
17,768,
782
20,953,
915
28,066,
651
35,842,
056
10
11
12
13
14
15
Sales revenue will be collected at sales time and at the emding of the
month.
16
17
18
At the end of 5 years Net Income will be generated as same as year 5(considering year 5 profit to calculate
PV of Perpetuity)
Page | 50
19
20
21
Rent Contract will expire after year 3. Thus, 25% growth assumed in Rent
Expense
22
23
80% of Net Income will be disbursed as Dividend among S/Hs and rest 20% wil be kept as R/E
for future.
Table 13
Financing Mode
1
Debt
450,000
30%
Equity
1,050,000
70%
Table 14
We will take 30 % bank loan. And rest of our investment will be done by equity
investment.
Projected Cost:
Project Cost
Sl.
Item
Amount (Tk.)
Details
Advance Rent
240,000
Interior Designing
198,000
Appendix-1
Crusher machine
600,000
Processing Machineries
300,000
150,000
Appendix-1
Miscellaneous
12,000
1,500,000
N/A
Total PC
1,500,000
Page | 51
Our total projected cost will be 1500000 lakh taka. Breakdown of interior design
cost and furniture cost are attached in the appendix
Description
Year 1
Year 2
Year 3
Year 4
Year 5
23,480,
000
3,480,0
00
20,000,
000
34,176,
000
4,176,0
00
30,000,
000
40,011,
200
5,011,2
00
35,000,
000
52,762,
880
5,762,8
80
47,000,
000
66,627,
312
6,627,3
12
60,000,
000
Salaries Expense
2,572,4
00
2,881,0
88
3,255,6
29
3,711,4
18
4,268,1
30
Marketing Expense
110,000
126,500
145,475
162,932
182,484
Maintenance Cost
352,200
512,640
600,168
791,443
999,410
Utilities Expense
234,800
341,760
400,112
527,629
666,273
Rent Expense
480,000
480,000
480,000
600,000
600,000
Depreciation Expense
162,000
162,000
162,000
162,000
162,000
Revenue
Revenue from (compostable tableware, Tissue
paper , Paper cup)
Revenue from ( Boards, Sugercane Fabrics)
Expenses:
Interest Expenses
68,275
57,375
44,624
29,706
12,255
Total Expenses
3,979,6
75
4,561,3
63
5,088,0
08
5,985,1
28
6,890,5
52
19,500,
325
7,312,6
22
12,187,
703
29,614,
637
11,105,
489
18,509,
148
34,923,
192
13,096,
197
21,826,
995
46,777,
752
17,541,
657
29,236,
095
59,736,
760
22,401,
285
37,335,
475
9,750,1
62
2,437,5
41
14,807,
318
3,701,8
30
17,461,
596
4,365,3
99
23,388,
876
5,847,2
19
29,868,
380
7,467,0
95
ROE(%)
6.99%
34.40%
67.04%
79.61%
101.64
%
80%
80%
80%
80%
80%
Dividend expenses
Retained Earnings
20.33%
Table 15
Page | 52
From the income statement we can see that all revenues and expenses are
calculated according to our assumptions. And our sustainable growth rate at the
end of year 5 is 20.33%.
Description
Year 1
Year 2
Year 3
Year 4
Year 5
Cash in hand
2,769,302
6,592,697
11,068,347
17,023,434
24,590,283
252,000
252,000
252,000
252,000
252,000
3,021,302
6,844,697
11,320,347
17,275,434
24,842,283
Interior Designing
198,000
198,000
198,000
198,000
198,000
Crusher machine
600,000
600,000
600,000
600,000
600,000
Processing Machineries
300,000
300,000
300,000
300,000
300,000
150,000
150,000
150,000
150,000
150,000
162,000
324,000
486,000
648,000
810,000
1,086,000
924,000
762,000
600,000
438,000
Total Assets
4,107,302
7,768,697
12,082,347
17,875,434
25,280,283
Salaries Payable
214,367
240,091
271,302
309,285
355,678
Utilities Payable
19,567
28,480
33,343
43,969
55,523
233,933
268,571
304,645
353,254
411,200
ASSETS
Current Assets
Fixed Assets
Page | 53
Long-Term Liabilities
Long term Debt
385,828
310,757
222,933
120,192
Total Liabilities
619,762
579,327
527,578
473,446
411,200
Owners Capital
1,050,000
1,050,000
1,050,000
1,050,000
1,050,000
Retained Earnings
2,437,541
6,139,370
10,504,769
16,351,988
23,819,083
Total Equity
3,487,541
7,189,370
11,554,769
17,401,988
24,869,083
4,107,302
7,768,697
12,082,347
17,875,434
25,280,283
OWNERS EQUITY
Table 16
From our balance sheet we can see that our total liability and assets are
increasing every year. Our retained earnings are also increasing in every year.
Our salaries payable and utilities payable has been crated because at the date
when we create our balance sheet then some of our current month expense
remain payable.
Page | 54
Description
Year 1
Year 2
Year 3
Year 4
Year 5
12,187,70
3
18,509,14
8
21,826,99
5
29,236,09
5
37,335,47
5
162,000
162,000
162,000
162,000
162,000
214,367
25,724
31,212
37,982
46,393
19,567
8,913
4,863
10,626
11,554
12,583,63
6
18,705,78
5
22,025,06
9
29,446,70
4
37,555,42
2
Adjustment for:
Depreciation
Increase/Decrease in Salaries
Payable
Increase/Decrease in Utilities
Payable
Debt Repayment
(64,172)
(75,072)
(87,823)
(102,741)
(120,192)
(9,750,16
2)
(9,814,33
4)
(14,807,31
8)
(14,882,39
0)
(17,461,59
6)
(17,549,41
9)
(23,388,87
6)
(23,491,61
7)
(29,868,38
0)
(29,988,57
2)
2,769,302
3,823,395
4,475,650
5,955,087
7,566,849
2,769,302
6,592,697
2,769,302
6,592,697
11,068,34
7
11,068,34
7
17,023,43
4
17,023,43
4
24,590,28
3
Dividend Payment
Table 17
Page | 55
Sl
.
Description
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Cash Inflow/(Outflow)
(1,500,000
)
452,71
8
549,548
897,872
1,036,57
9
1,276,37
3
452,71
8
1,002,26
7
1,900,13
8
2,936,71
7
4,213,09
0
0.45
Discounting Factor
17.40%
0.85
0.73
0.62
0.53
0.45
(1,500,000
)
385,62
0
398,721
554,894
545,670
572,318
Discounted Payback
1.00
1.00
1.00
0.29
Payback Period
2.45
years
Discounted Payback
Period
3.29
years
NPV at 17.40%
957,223
BDT.
IRR (%)
37.97%
Table 18
From the capital budgeting analysis we can see that our payback period is 2.27
years. Our discounted payback period is 2.45 years. Our NPV at 17.40 % is
957,223 TK. Our internal rate of return is 37.97%.
Page | 56
Interest Paid
Principal Paid
Principal Remaining
TOTAL PAID
Installment Number
1st
2nd
3rd
4th
5th
6th
7th
8th
9th
10th
11th
12th
13th
14th
15th
16th
17th
18th
19th
20th
Yrs
450,000
16%
5
4
20
Y1
68,275
64,172
385,828
132,447
Y-2
57,375
75,072
310,757
132,447
Opening
Balance
450,000
434,888
419,172
402,827
385,828
368,150
349,764
330,643
310,757
290,075
268,566
246,197
222,933
198,739
173,577
147,408
120,192
91,888
62,452
31,838
Installments
Principal Interest
(15,112)
(18,000)
(15,716)
(17,396)
(16,345)
(16,767)
(16,999)
(16,113)
(17,679)
(15,433)
(18,386)
(14,726)
(19,121)
(13,991)
(19,886)
(13,226)
(20,682)
(12,430)
(21,509)
(11,603)
(22,369)
(10,743)
(23,264)
(9,848)
(24,194)
(8,917)
(25,162)
(7,950)
(26,169)
(6,943)
(27,215)
(5,896)
(28,304)
(4,808)
(29,436)
(3,676)
(30,614)
(2,498)
(31,838)
(1,274)
Y-3
44,624
87,823
222,933
132,447
Y-4
29,706
102,741
120,192
132,447
Total
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
(33,112)
Y-5
12,255
120,192
132,447
Closing
Balance
434,888
419,172
402,827
385,828
368,150
349,764
330,643
310,757
290,075
268,566
246,197
222,933
198,739
173,577
147,408
120,192
91,888
62,452
31,838
0
Table 19
Page | 57
Items
Total
cost
Depreciation
Rate (%)
Year 1
Year 2
Year 3
Year 4
Year 5
Interior Designing
198,000
20%
39,600
39,600
39,600
39,600
39,600
Crusher machine
600,000
10%
60,000
60,000
60,000
60,000
60,000
Processing Machineries
300,000
10%
30,000
30,000
30,000
30,000
30,000
150,000
20%
30,000
30,000
30,000
30,000
30,000
Miscellaneous
12,000
20%
2,400
2,400
2,400
2,400
2,400
TOTAL
162,000
162,000
162,000
162,000
162,000
Accumulated Depreciation
162,000
324,000
486,000
648,000
810,000
Table 20
Fixed
Expenses
3,392,676
Variable
Expenses
587,000
Avg.
Revenue/unit
1,174
Variable
Expenses/unit
29
Year 2
3,706,964
854,400
1,139
28
Year 3
4,087,729
1,000,280
1,143
29
Year 4
4,666,056
1,319,072
1,123
28
Year 5
5,224,869
1,193,902
1,110
20
Year 2
Year 3
Year 4
Year 5
2,964
3,337
3,667
4,263
4,791
Present
Value of
Perpetuity
214,571,697
Table 21
Page | 58
Ratio
Current ratio=
current
assets/current
liability
Asset turnover
ratio= Revenue
Total Asset
Net profit margin
ratio= net profit
after tax sales
Return on asset
ratio= Net
Income total
asset
Return on equity=
net income
Shareholders
equity
Dividend payout
ratio= Dividends
net income
Total debt to total
assets ratio=
(short term debt
+long term debt)
(Total assets)
Year 1
Year 2
Year 3
Year 4
Year 5
2.67
3.15
3.68
4.07
4.37
2.14
2.53
2.9
3.15
3.37
2.04
8.4
13.65
14.09
15.65
6.75
21.42
39.63
44.48
52.84
6.89
31.77
55.09
57.85
64.35
80%
80%
80%
80%
80%
36.16
32.78
28.06
23.11
17.89
Table 22
Chapter 16
Exit plan
In this life, nothing is certain. So, in case our business plan does not go according
to our likings and lead towards massive loss, we have developed couple of
solutions as exit plan.
Merger: If we failed in our project then we can merge the company. Merge the
company with a larger company which has a larger market share weak strong
production line. With the merger we can get higher production as well as greater
market share. The brand in this industry really does not matter therefore a merger
will be only the acquisition of assets. The investment of the company can either be
retrieved by the sale of the company or buy keeping share in the merger company.
Page | 59
Often many big companies merge their company by acquiring other company to
less the stiff competition.
Bagasse Toys & Accessories: If the sale of Bagasse product decreases
tremendously, the business could be diverted into a new direction. The company
instead of selling Bagasse in its raw form could sell finished products. These
products would include toys and accessories.
The product than can then be exported as there is reporting a rise in demand for
Bangladeshi Bagasse products. Only a little investment would be required to take
the new route as the company already has the plastic.
Chapter 17
Production Plan
17.1 Manufacturing process:
Our manufacturing process is converting sugar cane fiber to Compostable
Tableware, Biodegradable Tableware, Paper Cup with Handle, Disposable
Tableware, Bagasse Plate, Boards, and Sugarcane Denim Fabric. We have to
combine machine, labor, and management skill to make our output. Our skilled
labor will operate our machine to make final output. In first few months we will face
problem to achieve our optimal output. But we expect to achieve our optimal
output within a very short time. Since it is a production based industry then we
have to use very strong management skill to achieve maximum uses of our
capacity. From the first stage of every manufacturing process we will maintain total
quality management (TQM) for achieving optimal production efficiency and
profitability. We will use flexible manufacturing process that will reduce machine
set up cost and time and help to achieve efficacy a in every level of our
production. We will use just in time operating system for getting order from
customer and delivery to them. So our manufacturing process will be able to
produce maximum unit of output within a very short time.
machines, for producing a value added service is a process which falls under
production system. The process is briefly given below:
Select
Supplies
Issue Tender
Negotiation
Buy Raw
Materials
Assembly or
Production
Chart 1
Physical Production:
After receiving the order from the consumer the process for producing products
goes like this:
Order
Received
Order
Notified
Assemble
products
Installation
Process
Products
Received
by
Customer
Chart 2
Physical plant:
We will establish our industry at Thakurgaon. Where, sugar fiber is available at a
large scale from local sugar mill. We will establish a manufacturing unit covering
Page | 61
14 Katha (10,080 square feet, or 0.2314 acre) areas. We need two 5 ton pickup
vans to supply our product all over the country and collect raw materials. We will
set up diesel run generator for the time of load shedding. In our physical pant
included units are Raw Materials Store, Cutting and matching room, Stitching
room, finishing room, packing room, company office, wash room. We will import
machinery from china for production. We also have to hire big storage house for
maintaining our inventory. We dont need any natural gas connection for our
production. We need only a lot of water and high voltage electricity connection.
Our machineries are not fully automatic. So we need a lot of skilled labor for
operating this equipment.
Pellet Machine
Page | 63
Chapter 18
Bibliography
Page | 64