Introduction to Business

Final Project:- Business PlanPlanned by:- Corporative Group

Superior University Riawind road Lahore

Member’s ReviewSaad Nasir 10302Salman Shafique 10324

Faisal Shehzad 10330Usman Safdar 10336M Tariq 10337Farhan Maqbool 10342Abu-Sufyan 10351

What is a Business Plan......?

Any plan that works for a business to look ahead, allocate resources, focus on key points, and prepare for problems and opportunities.

Business Plan

Business Introduction

We have planned to manufacture handmade carpets because, now-a-days Carpets are used in many fields of life for example it is used in houses and offices. As our business is totally based on hand craft-man-ship and hard working so that why we consider weavers as our working force.

We planned our business on,

“Hand Made Carpets”

History Of carpets

The carpet is the one of finest and most exquisite form of expression and has more than 2,500 years old history. The Iranians were amongst the first carpet weaver of the ancient civilizations and, through centuries of creativity and ingenuity building upon the talents of the past, achieved a unique degree of excellence.

Objective of the Business In handmade carpets work force matter

more then raw material. By using this Idea, So we want to increase the level of workers life. It's main objective of our business.

Handmade carpet

Handy Carpets industries 

Industry AnalysisPakistan’s world famous carpet trade is

steeped in history and tradition.Pakistani Handmade Carpet Industry

Growing day by dayIt’s Characterized by cottage home

based production (mostly by women).Mostly home-based industries are in

Punjab and Sindh.The tribal areas of Baluchistan are also

famous in manufacturing of carpet.

Market Analysis Handmade carpets are most demanded

in All over the World. We considered USA, European Union or other developed countries as actual market of our business. Because handmade carpet are more appreciated due to high quality and rate of exchange of worker.

At local level we will target Business offices or houses as our market.

Global Exporters of CarpetAverage exports of carpet is 200m /anum

Product Description

Carpet manufacturing today is a mix of old-world crafts-man-ship and 21st century innovation.

Carpet is manufactured in one of two ways - weaving or tufting.

Woven carpets are made primarily with wool and are exceptionally durable (and frequently expensive). Woven carpets can be produced by hand

Economic Review of carpet

It provides jobs to 1.5 million people in the country.

• More than 99 % of Handmade carpets in the country are exported. Local consumption is negligible.

It is an important source of income for the rural population, particularly for women, and has a large potential for employment creation and poverty alleviation.

Marketing Plan Handy Carpets industries

Targeting strategy The company is by nature

independent, which means that is able to work with any trader, carpet production factory, carpet producers association and/or carpet weavers directly. Herewith it differs from other cutting and washing facilities, which are usually owned by a trader.

Marketing Plan Handy Carpets industries

Service StrategyThe company will firstly aim at good

quality services, delivered timely and according to estimated time schedules. The company will do cutting and washing according to the customer’s specifications. Over time, the company will diversify to three different products of cutting and washing, different quality and price levels.

Export Strategies

 Eu-ro-pean Union

USA

Japan

Germany

European Union Import 50%

USA imports 25%

Germany Imports 15%

Japan Imports 10%

Targeted Market Carpet wholesalers in the USA and Germany, the two largest handmade

carpet markets.

USAColor & design are the most important product attributes

in USA

Carpet size matters more in the US

GermanyType of fiber & Price

are the most important product attributes in Germany

Price and quality of weave matter more in Germany.

Advertising Handy Carpets industries

The company will use direct sales contact with potential new clients as a sales promotion tool. The company will use other sales tools, like discounts on larger orders, and/or special price offerings off-season.

We will advertise our business with Electronic media and Print mediaFor example

Financial PlanHandy Carpets industries

 

Capital Requirement 

Owners Equity: 30,00,000 Rs

Care foundation fund: 7,00,000 Rs  

Bank Loan: 8,00,000 Rs

Total: 45,00,000 Rs

SWOT Analysis

Strengths Analysis

Weakness Analysis

Perception/appreciation in the world market for (uniqueness of) traditional handmade Pakistan carpet

Long historical tradition of weaving by hand at home in villages/unique product

Cutting and washing facilities in the north are not sufficient (only meet 10% demand)

Constraints in access to chemicals have to be imported from others, and they are expensive

Strengths Analysis Weakness Analysis

Large number of skilled weavers in Pakistan(~10,000), high level of production 150,000m2 / annum with approximately 12,500 m2 produced per month)

Availability of raw material (wool, but it is unprocessed)

-Availability of the natural dyes

Limited domestic demand for traditional handmade Pakistan carpets

Use of child labour to make costs low

Poor working conditions for weavers

Little quality control with home-based weavers

Not able to adapt to market demands

SWOT AnalysisOpportunities Analysis

Threats Analysis

Export directly To over all world.

Adding value by cut and wash (but environmental unfriendly); as long as quality is guaranteed

Target specific niches in world market

Growing tendency among customers to buy lower quality carpets and change more often (instead of focusing on durability)

The competition of modern style carpets from other countries (India, Afghanistan)

Ability to earn new styles and adopt to market demand

Access to vertical looms for larger carpets (US market)

Plant for washing chemicals

Zero tax tariff with a number of countries

Creating a (socially-conscious) branding

The competition of cheaper machine made carpets from other countries like Iran

- Strong Indian market linkages

Low technical expertise level on processing wool, dyeing, cutting and cleaning of carpets

Demand for Business Handy Carpets industries

The Handy Carpets have some basic needs & demands at the start like, a Proper Infra structure of cutting & washing.

Basic Equipment / materials are available but some extra instruments are also required on emergency basis which are necessary for daily work.

In very start Technical / Business Assistance must required for additional training of work team.

Organizational Chart