in the name of allah

PROJECT ON MUMZA LEATHERS

GROUP MEMBERS

NAMES: ROLL NO:

SANA SULEMAN 12137

FATIMA-TU-ZAHRA 12139

MADIHA SIDDIQUE 12117

HIRA YAQOOB 12145

GROUP NO;

(9)

SUBJECT:

ENTREPRENEURSHIP

SUBMITTED TO:

MISS ZOOFISHAN SAHGAL

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UNIVERSITY OF THE PUNJAB GUJRANWALA CAMPUS


PROJECT OUTLINE Acknowledgement Introduction History Vision Mission Product Line Production Process

Tools

Nature of business Location of business Data sources

Questionnaire Organizational plan

Departments Hierarchy

Marketing Plan Product Price Place promotion

Financial Statements Risk Assessments

SWOT Analysis

Future Plans

ACKNOWLEDGEMENT

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All the Acclimations and Appreciation are for Almighty ALLAH, the Compassionate; the Benevolent. That knows the mysteries & secrets of universe.

We would like to show the special gratitude to MISS ZOOFISHAN SAHGAL who provided with us knowledge Vision about the management.

At the end, we would like to thank all who directly or indirectly help us in making the project.

DEDICATION

First of all we would like to thanks ALLAH ALMIGHTY for giving us opportunity to study in such a good institution. We feel pleasure to dedicate this project on MUMZA LEATHERS to our beloved PARENTS, then our subject instructor MISS ZOOFISHAN SAHGAL and at the last to our university that is PUGC.

INTRODUCTION

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We have selected Mumza Leathers for our project. They are the manufacture of leather products at a very small level.

We have introduced some innovations in their business because our preference is to provide quality products to the customers & enhance the profitability of the business.

HISTORY

MUMZA Leathers is the manufacturer of leather gloves and jackets. It was established in 2005 & they are working since 10 years.

It is a family oriented business. They have more than 10 employees, which help them in cutting, stitching, and packing.

There is no middleman involved they directly pass the order of customer to the employee. They are using old techniques for manufacturing and mostly perform their work manually.

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VISION STATEMENT

“To serve and become a business & production model”

MISSION STATEMENT

Promote our Quality products & services.

Ensure customer satisfaction by offering Quality Products and services driven by their needs.

Produce Best Quality of products using best latest techniques and machinery.

NATURE OF BUSINESS

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The nature of business is sole proprietorship. They have started it from their home with small capital and management. It is also a seasonal nature business.

LOCATION OF BUSINESS

Address

Abdullah Palace, opposite Mughal HospitalBabyberi, Pasroor road, Sialkot – Pakistan.

BEFORE OUR INNOVATION THE BUSINESS IS CONSISTS ON A SMALL PLOT, FOR THE PURPOSE OF BUSINESS EXPANSION WE SUGGEST THE FOLLOWINGS…

INNOVATION REQUIRED:

The area of our factory should be increased from a small plot to 2-canals, for the purpose of building various departments and stockroom.

Stock room will be in basement of 1 canal. The packing plant will be situated in ground floor. The production unit will be located in the 2nd floor

within 1.5 canal area. Remaining area will be used for office purposes.

PRODUCT LINE

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PRODUCTION PROCESS

LEATHER GLOVES & JACKETS

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Gloves

Jackets

RAW MATERI

AL

TUNNING

DRYING

DYING SIZE

CUTTING

SEWING


RAW MATERIAL:

Lambskin Sheepskin Goatskin

TUNNING:

It is an important process that converts skin into stable consistent condition that can be used in many ways to produce different leather types.

WASHING:

After tanning the resulting product is washed with help of various chemicals for further processing.

DRYING:

After washing we dry the leather for further processing.

DYEING:

After the material has been dried it is dyed into the required shade. This process start to the impart to the leather some of its final characteristics. Different processes produce different properties in the leather.

SIZE: 8



In this step we take the size of leather gloves and jackets for the purpose of cutting like:

Small size Medium size Standard size

CUTTING:

Leather cut into different sizes and shapes for the purpose of stitching.

SEWING;

MATERIAL REQUIRED

Buttons Zips Threads

First, the back and front parts are sewn together, then sewing proceeds.

.

TOOLS9



They are using old techniques & tools for making products. They are mostly performing their work manually.

INNOVATION;

We have introduced some latest machines for production which might help us for increasing sales volume.

LATEST MACHINES REQUIRED FOR PRODUCTION

MACHINES REQUIRED

cutting 10

sewing 25

Cutting scissors 15

SUPPLIERS We will import these machines from china because

their prices and contract terms are affordable.

CUTTING MACHINE

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SEWING MACHINE

ELECTRIC SCISSOR

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DATA SOURCES

In this step we collect the data for our project which helps us in generating new ideas for products & services.Ideas are generated INTERNALY & EXTERNALY.

Internal source of idea generation for our project.

External source of idea generation for our project.

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QUESTIONNAIRE

Respected respondents:

We, the students of M.COM at University of Punjab Gujranwala campus are struggling on the expansion of our business named as MUMZA LEATHERS . And for the testing of our new ideas we need your opinion about it. This is purely academic testing and all your responses confidential.

1. Gender………………?

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Internal sources

Group Members

Subject Instructor


Male Female ◊ ◊ 2. What’s your age……………?

20orless 31-40 51-60◊ ◊ ◊ 21-30 41-50 Above◊ ◊ ◊

3. Qualification………….? Matriculation or below Bachelors ◊ ◊ Intermediate Masters◊ ◊

4. Do you like leather products………? Yes No ◊ ◊

5. Do you think leather products satisfy your needs……..? Yes No◊ ◊

6. Do you like any other brand products……….? Yes No ◊ ◊

7. Do you like if MUMZA products are introduced in whole Pakistan……..? Yes No◊ ◊

S .No

Indicate how much you agree or disagree with this statements?

Strongly agree

Agree

Undecided

Strongly disagree

Disagree

9. Does leather products

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must introduce in whole Pakistan?

10. Do you think leather products satisfy your needs?

What are your views about Mumza products………..? ……………………………………………………………………………………………..……………………………………………………………………………………………..

RESULTS OF QUESTIONNAIRE

This questionnaire has been filled by almost 50 different people in order to understand the likeness of possible future customers and from replies we are able to conclude it in the following manner.

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RESPONSES

55% who like leather products. 35% who don’t like leather products. 15% who like leather products but some specific

brands.

ORGANIZATIONAL PLAN

As we have already explained that they are doing work with the help of more than 10 employees, business working conditions are not properly defined and organized for this we have make the organizational plan for the business.

INNOVATIONS:

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We want to introduce the business on Province level, for this we have decided to divide the work into various departments to increase the production capacity of the business.

DEPARTMENTS

HIERARCHY

NOW WE ARE GOING TO INTRODUCE A WIDE SPAN OF HIERARCHY TO MANAGE THE WORK OF VARIOUS DEPARTMENTS.

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Production Department

Raw MaterialControl

Packing Department

SellingDepartment

HRMDepartment


MARKETING PLAN

MARKET SEGMENTATION

“Dividing a market into smaller group of buyers, distinct need, characteristics, or behavior who

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DIRECTOR GENERAL Mr.Zahid

PRODUCTIONManager

MIS.Madiha

MARKETING MANAGERMr.Muaaz

INVENTORY INCHARGE

Mr.Hanzala

SELLING MANAGERMr.Safwan

FINANCE MANAGER Mr.Shahan


might require separate products or making mixes”

We have decided to segment our market on the basis of geography. Mumza leather products will be available on all the urban area markets of Punjab and as well as available

on hill stations.

TARGET MARKETS

A set of buyers sharing common needs or characteristics that the company decides to serve.

According to our resources and according to company’s objective we are targeting boys and girls of all ages as main consumers of our product that is jackets and gloves.

MARKETING MIX

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Marketing mix is the combination of 4 P’s.

PRODUCT

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PRODUCT PRICE

PLACE PROMOTION


ANYTHING OR ACTIVITY THAT CAN BE OFFERED TO A MARKET FOR ATTENTION, ACQUISITION, USE, OR CONSUMPTION THAT MIGHT SATISFY THE WANT OR NEED IS CALLED PRODUCT.

INNOVATIONS Designs Colors Packing

DESIGNER SERVICES:We have decided to hire designers who will design our jackets and gloves because it is very much necessary to compete the market. In this way we can make changes in our products according to customers demand.

COLORS:Our products will be available in all beautiful colors according to customers demand and market trends

PACKINGThey are using plain plastic bags which they purchase from ordinary vendors, and also their quality is very poor.

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Good packing is also one of the important marketing tool for this, we have introduced a new packing machine.

SUPPLIER:

We will purchase this machine from Japan.

”Packing is an important marketing tool. Numerous machine are provide packing functions”

PRICE

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The amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefit of having or using the product or service.

GENERAL PRICING APPROACHES

COST BASED PRICING VALUE BASED PRICING

SUGGESTION:

WE WILL CHARGE PRICE ACCORDING TO COST BECAUSE WE HAVE SPEND A LOT OF AMOUNT ON MACHINERIES, ADVERTISEMENT AND OTHER BUSINESS EXPENSES, TO MAKE OUR BUSINESS ESTABLISH IT IS VERY MUCH IMPORTANT FOR US TO COVER COST AS WELL AS PROFIT.

PLACE23



Before our innovation the company is using old method of distribution within a limited area that is:

INNOVATION:

For making our product available in the province we suggest to open our outlets in big

cities of Punjab with the Brand name of the company.

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Manufacturer Retailor custome

r


PROMOTION

Promotion means activities that communicate the merits of the product and

persuade the buyer to buy it.

Advertising

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ADVERTISINGPERSONAL

SELLING

SALES PROMOTION

PUBLIC RELATIONS


The company is making no advertisement of their products they just make the products and sell to the retailer and earn their profits.

Advertisement is very much necessary; as we want to introduce the business on province level, for this purpose we make the following innovations in the business.

INNOVATION:

In order to allure buyers to buy our products we advertise our products through

Signboards Banners Radio Pamphlets Calendars

We make contracts with

Fm 101 Fm 106

These ads will be on-air in timings between 7:30 to9:30 pm.

Sales promotion

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Short term incentives to encourage the purchase of the product.

We give discounts to the retailers. Organized a RED CARPET for 3 days to attract the

customers.

Personal selling

Personal presentation by the firm’s sales force for the purpose of making sales and making

consumer relations.

E-mails Text Messages

Are some of the ways we adopted to boost the sales.

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Public Relations:

Building good relations with the company’s various publics by obtaining favorable publicity, building up good corporate image and handling off unfavorable

events and rumors

HRM DEPARTMENT:

We develop HRM department to fulfill this opportunity moreover our regular surveys to various shops and to visit customers will be

some tactics to build this relation.

FORECASTED

FINANCIAL STATEMENTS28



After introducing our innovations we make the analysis of two years business financial position to check whether our business will be profitable or not

with the help of forecasted financial statements.

Income Statement Balance Sheet

MUMZA & CO.

INCOME STATEMENT

FOR THE YEAR ENDED DEC 31, 2013

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PARTICULARS AMOUNT AMOUNT

Sales 36000000

Less: CGS (1440000)

Gross profit 21600000

Less: Operating Expenses

Admin expenses 760000

Selling expenses 455000 (1215000)

EBIT 9450000Less: Interest (150000)

EBT 795000

Less: Tax (119250)

NPAIT 6757500

MUMZA & CO.

BALANCE SHEET

AS ON DEC 31, 2013

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ASSETS Amount LIA & CAPITAL

Amount

Current assets Current liability

Cash in hand 150000 Capital 2600000

Prepaid insurance

340000 Creditors 560000

Prepaid rent 30000 Loan 300000

Closing stock 4500000

Outstanding interest

12000

5020000

3472000

Fixed assets Fixed liability

Land & building 1100000

Small business loan

2722250

Machinery 1000000

Long term liabilities

400000

Furniture 50000

Storage racks 50000 Net profit 6757500

Packing tables 50000

Total 7270000

7270000

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MUMZA & CO.

INCOME STATEMENT

FOR THE YEAR ENDED DEC 31, 2014

PARTICULARS AMOUNT AMOUNT

Sales 45000000

Less: CGS 36000000

Gross profit 9000000

Less: Operating Expenses

Admin expenses 850000

Selling expenses 550000 1400000

EBIT 7600000Less: Interest

EBT 7400000

Less: Tax 1500000

NPAIT 7250000

MUMZA & CO.32



BALANCE SHEET

AS ON DEC 31, 2014

ASSETS Amount LIA & CAPITAL

Amount

Current assets Current liability

Cash in hand 170000 Capital 2600000

Prepaid insurance

370000 Creditors 400000

Prepaid rent 45000 Loan 150000

Closing stock 5000000 Outstanding interest

120000

Cash at bank 3021000

Fixed assets Fixed liability

Land & building 1200000

Machinery 1000000 Long term liabilities

400000

Furniture 45000

Storage racks 35000 Net profit 7250000

Packing tables

34000

Total 10920000

10920000

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RISK ASSESSMENT

It has always been important for a business to know and understand how it fits in and interacts with the surrounding environment on both an internal (office/factory/shop environment) and external view (how your business operates with the outside world).

For the purpose of risk assessment me make a SWOT Analysis of the business which help us in understanding our position in industry and also will be helpful for us in making long and short run future strategies for the venture.

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SWOT ANALYSIS

It is a common phrase used to abbreviate Strengths, Weaknesses, Opportunities and Threats.

Strengths provide an insight to the business opportunities & weaknesses in the business can cause immediate threats.

Each term is a heading for a separate analysis of the business but they can be related as seen below:

OBJECTIVE:

The objective is to be in a position where you can determine a strategy for the future to improve your company’s overall performance.

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S

Strengths:

The Strengths can be considered as anything that is favorable towards the business.

Easy availability of low cost labor. Tax incentives on machinery by Govt. Jackets are always in fashion product. Currently in a good financial position we

have low debt burden. We are bearing low renting cost.

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W

Weaknesses:

Lack of modern finishing facilities of leather. Low level of labor productivity due to inadequate

training. Environmental problems. No awareness about national standards. Entry of multinational products in domestic

market. Low variation in designs. Less knowledge about modern equipment.

O

OPPORTUNITIES:37



Growing national and domestic markets. Product diversification. We can become a part of growing fashion

industry of Pakistan.

T

THREATS:

Designer products. Stiff competition from large number of

competitors. International standards. Fast changes in fashion trends.

BUSINESS FUTURE PLANS

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FOR 10 YEARS

Leather Business is one of the most growing businesses in Pakistan because people have much awareness about fashion through TV & other Electronic media and also our fashion industry is growing day by day. So we have decided to expand our business with in Pakistan and after its success we will introduce it on international level, for this we have set out:

FUTURE GOALSFUTURE OBJECTIVES

For further expansions of our business.

Our 1st priority to introduce our business on national level.

Increase the area of production for future production purposes.

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Introduce heavy machinery to compete the competitors & increase the production capacity of the business.

Our goal is to increase number of outlets in major big cities of Pakistan.

Recognize our brand name in all over the Pakistan with the help of strong advertisement strategies.

We will increase our product line in leather, so people can avail all the possible items with in one roof.

For this we divide our product line in 2 plans:

1st 5 years plan Next 5 years plan

Product Line for 5 years: Ladies Leather Bags Mobile Leather Covers Laptop Leather Bags Leather Belts

Product line For next 5 years

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Leather Shoes Garments

Open shoes and garments outlets in big cities.Import laser leather cutting machine in future which may increase the business profitability.

We will conduct training programs for the training of employees for increasing production capacity.

Organize a proper department for designing to overcome the designer’s products competition.

Hire models for advertisement of our leather jackets.

Provide quality satisfaction to the customers.

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in the name of allah

Documents

punjabgujranwala campus

history mumza leathers

project onmumza leathers

mumza leathers introductionwe

mumza leatherstools

mumza leatherssize

mumza leathers raw material

punjab gujranwala campus