project finalized

8/8/2019 project finalized

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Declaration:

We hereby declare that the class project Pre-Fab

Houses submitted under the course title Entrepreneurship

(MG-550) is purely original team work done under the

guidance of Mr. Manqoosh-ur-Rehman, lecturer at School of

Business and Economics at University of Management and

Technology.

This project is submitted as the class final project

requirement and has been solely produced and compiled by

group members.

Mr. Mubin Tariq 073605-038

Mr. Faiq Ali 073605-

118

Mr. Usman Khan 073605-

133

Mr. Hasib ur Rehman 073605-156

Mr. Tahir Saeed 073605-164


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Executive Summary

This project has been conducted in order to launch a new business

plan. We are going to launch 2D solar cabinet; this is an innovative product

with unique features.

After having a critical external analysis of the industry, PEST and

Porter, we came to the conclusion that there is a large gap in this industry

and thus there exist a scope for the new product. After identifying the GAPs

we are going to launch our product.

We are going to give 2-D solar cabinet in the market; this is a portable

refrigerator which will cool and warm the food, water, milk etc according to

the desired need.

Our company is a newly launched business; we are five partners and

are going to work as a private limited company. All partners are contributing

equally as an investment in our company and profit and loss will be shared.

The companys rules and regulations are already written and initially we are

going to work as a team.

The growth of our business depends upon the growth of electronic

industry in Pakistan. The past records show that the industry is highly

potential and has a good growth scope.

The project also contains a complete detail about the working of the

product, as well as the company. Complete marketing details are also given

in this project. The report includes HR, Marketing, Finance and Operational

details for the firm.


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Section II:

Business Description:

Form of Business:Our business is based upon Partnership. We are five partners in this

business and we equally share all the benefits and loss of business.

Owners/Principals:

We are going to start a new business and introduce a product which is

very new for Pakistans electronic market. Because the business which we

are going to introduces require very huge amount of capital for this purpose

we decided to start a joint business among five partners. Partners are:

Mr. Tahir Saeed

Mr. Hasib ur Rehman

Mr. Faiq Ali

Mr. Mubeen Tariq

Mr. Muhammad Usman Javaid Khan

Name of Business:

The name of our business/ company is Star Tech.The basic reason

behind this name, we all five having so much trust upon one another and

fully coordinated and joint like the five corners of the star.

Business Description:

Our business is related to 2D solar cabinet (joint form of fridge and

oven) assembling. After analyzing the electronic market of Pakistan we cameup with the conclusion that there is a big opportunity for the new kind of

product which we are going to introduce. The growth of our business

depends upon the growth of fridge and oven industry in Pakistan. The past

record shows that the industry is highly potential and has a good growth

scope. The scale and the need of fridge and ovens are continuously


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increasing day by day and it provides a great opportunity to introduce and

startup a new business.

In our business we come up with a product that is different and unique

and will provide ease to family households, business Personnel and most

importantly passengers who going outside the city or and the people whowant to go somewhere for picnic and spending holidays (within or outside the

city).

Product Description:

Name of Product: 2D solar cabinet.

Company Name: Star tech.

Color, gray, blue

Voltage 12v

Capacity 6.litre (4, 1.5 litre bottles)

Multifunctional, durable, daily used, medical, restaurant, outdoor,fishing cooler

Different size and design available in future

Cooling performance range is 5C to 10 C and warming range is 40Cto 50C.

Quantity 1 piece in a Carton

Weight 6 kg

Solar panel18 inches in length and 12 inch in width

12v Battery

1 Controller its Basic function is to control the solar energy and chargethe battery, after the battery is charged it will give power to the box

2 Buttons are placed to the left of the box from which we can cool andwarm the box according to the requirement

The length of the box is 15 inches, width 12 inches and height is 16inches

Gap Identification:


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As we all know this is the era of globalization and information

technology. Everyone in this world wants to upgrade itself either its a

country or an individual. Almost in every kind of market innovative products

introduced very rapidly and we all know that electronic market is one of the

most inconsistent market of this world. In this kind of market technology can

change on daily basis.

Likewise other countries the electronic market of Pakistan also consist

of very high technological products. After analyzing different markets we find

a great gap and high potential growth in electronic market and finalize our

product which is related with this market.

Another or we can say the most important gap we find in this industry

is energy crisis problem. Almost all the products of electronic industry fully

dependent upon electricity and Pakistan is facing very bad energy crisis

these days. So without or shortage of electricity all such products areuseless.

Then we decided why dont introduce such kind of product in this

industry that is not depend upon the electricity and it also gives so much

convenience and ease to people on different times. Market forces are weak

and in this situation even a little innovation can capture a large market

share. The basic benefit of this industry is a heterogeneous product with very

rapid development. This industry has a great room for such kind of

innovations.

Section III:

Marketing Research & Analysis:

Industry Analysis:

Electronic industry of Pakistan is having so much potential and

acceptance for new businesses, innovative ideas and advanced technology.

Today everyone wants convenience, ease, luxury, up to date technology for

his psychological satisfaction. Most of the products of this industry fulfill their

wants and make them satisfied to some extent. As we mention earlier

likewise other industries this industry is also having so many Gaps. In this

regard the gap which we targeted is, almost all the product of electronic

industry fully dependent upon electricity and Pakistan is facing very bad

energy crisis these days. So without or shortage of electricity all such


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Substitute

Buyers

Suppliers

products are useless. Then we decided why dont introduce such kind of

product in this industry that is not depend upon the electricity and it also

gives so much convenience and ease to people on different times.

Porters Model:

Porter five forces model is an extremely useful model to analyze the

outer environment for any strategic analysis. This model takes into account

all the five major forces of the market and thus suggest a way to analyze thecurrent situation of the industry. Porter five forces model in this scenario is

given as:

Competition


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New Entry

Supplier:

If we analyze the current market situation of Pakistan the suppliers of any market have

very minimum local resources. Most of the suppliers import the end products from China and

sale it here in Pakistan. In case of our product some manufacturers have the resources to

manufacture such kind of products locally like at Hall Road we have found very large number of

vendors who manufacture and supply such product at the same time. There is no concept of

backward integration in this industry so far.

Substitute:

Because this product is very new for Pakistans electronics market so

there is no near of we can say that direct substitute of our product. Another

unique characteristic of this product it is not dependent upon the electricity

which makes it more beneficial in current situation of Pakistan. 2D Solar

Cabinet having the characteristics of both fridge and oven, as we all know

there are numbers of varieties are available in fridge and ovens but each of

them is used for one specified purpose. Fridge is available for cooling

purpose and keeps our food, milk and beverages fresh and nutritionist for the

long period of time and ovens being used to make our food hot within few

minutes.

Buyer:

Due to the beneficial and convenient nature of the product, the buyer

shows subsequent amount of involvement in this product. As we all know

energy crisis is one of the major issue in Pakistan and at the same time we

gives our buyers a product which is not dependable on electricity so this

unique feature capture so much interest of our buyers towards our product.

On the other hand buyers switching cost is very high and most of time sales

have made on the basis of sensitivity of price and little know how about the

product.

New Entry:


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There is no kind of entry barrier in this market and this product follows

all the legal rules and regulations which are imposed by the government. The

market has substantial space for these kinds of innovative and unique ideas.

To enter in market and exit from this market is very easy and no restrictions

are imposed by any governmental department in this regard. This market

has lots of opportunities to grow for new businesses or risk takers within it.

PEST Analysis:

PEST analysis gives us the information about four major dimensions of

any countrys external environment. PEST is the abbreviation of Political,

Economical, Social and Technological factors. PEST analysis gives us very

important information to understand the economical, political, social and

technological structure of any country. It gives very authentic information

regarding business opportunities and growth. It also gives subsequentinformation for all local and foreign investor either they invest in that

particular country or not. Our product is directly related with the

technological structure of Pakistans electronics market.

Political:

In political we have threat of VAT (value added tax). If this VAT is

approved by the government it will negatively impact our business. As we

know, political instability is there in Pakistan now days. Another political

threat that may happen is the policies such as: import quotas, import tariffsand increase in custom duties.

Economical:

The economic situation of Pakistan is not very favorable. Increasing

inflation rate, increasing unemployment, collapsing stock market and other

unfavorable economic issues have made the situation disastrous. Some

findings of economical draw backs are given below:

Inflation rate has raise from 9.31% to 25% in the last year.

Unemployment rate has increased up to 8.5% from its previous rate of

7.5%.

More than 24% of the country population is below poverty line.


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The stock market has badly collapsed in the last few months due to

uncertain political conditions of the country.

The Pakistan rupee has fallen to a record low price.

Industries of the country are at the edge of being shut down, due tovery high cost of production. The intense short fall of electricity has

doubled the cost of production and has made the situation even worst.

Social:

Consumer perception and life style are changing rapidly. The

advancement of technology and the wide spread of media has captured the

mind of the people to a great extent. Man has becoming more and more

social and technology oriented.

Technological:

In Pakistan the technology, which are using in home appliances these

days is very advanced and meet the international standards. Even now the

local companies of Pakistan like Waves, Dawlance, PEL etc produces

products which are advanced technological oriented and gives very strong

competition to international brands products like Phillips, LG, Mitsubishi etc.

To keep in mind this technological advancement we introduced a

product which is also high technological oriented and having so muchpotential to capture the big market share with in very short time.

Now, world moves forward to find out some alternatives of electricity

and used these alternatives in their products. The beneficial and applicable

sources of energy are biogas, coal energy, wind energy and solar energy etc.

In past few years very huge advancement have seen in technological field.

By using the latest trend of technology we introduce such product which is

not dependable upon electricity. We have used solar energy in our product

and this unique feature very suitable with the weather conditions of Pakistan.

As we all know the temperature of Pakistan quite hot for 7 to 8 months and ittemperature ranges between 30 to 45 degree Celsius. This kind of weather

condition also supported our product in a positive way.

SWOT Analysis:

External Threats:


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High interest rates

Unstable Political and Economical situation of Pakistan.

Pathetic law and order situation.

High inflation rate

External Opportunities:

Huge amount of picnic spots in lahore i.e. Changa Manga, Jhallo More,

wild life park, and Safari Park etc.

People are willing to pay more for their convenience.

Expansion in other cities.

Because of rising education rate, people are becoming more

innovators.

In these days Pakistan faces problems regarding energy crisis and our

product not depend upon the electricity. It is very big opportunity for

our product to grow.

Internal Strengths:

Unique product for Pakistans electronic market.

Not dependable upon electricity.

Portable

Using solar energy

o All the parts which being used in making of product easily

available.

Internal Weakness:

High dependence on revenue.

Not so much convenient in rainy season.

Unknown Customer Demand


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Marketing Research Problem

Key Success Factors (KSFs):

The factors which are very important for new businesses like us to get rapid

success in electronic industry are given below:

Marketing is very important factor to get success in this industry.

Especially the companies like us (Star Tech) who first time enters in

this industry and also introduces innovative product so its very

important for such companies to market its product in an efficient way.

If company markets its product properly in order to get complete

attention of its target market so it will very help full to increases the

growth of sales.

Introduce such products that have advanced technology according tothe trend is also very important factor to get success in electronic

industry.

Quickly incorporate with new technologies and optimize operations.

Deliveries of products on time and cost controlled schedules are also

important factors.

Negotiate with big dealers and sell your product through them is

another important factor to increases the sales of the company.

Minimize the inventory handling cost in order to use some efficient

techniques.

Maintain continuous, high-quality manufacturing and serviceoperations.

Purchasing of Raw Material on competitive or low price.

Making good relationship with suppliers.

IFE/ EFE Matrix:

Internal Factor Evaluation:

Internal Factor of Evaluation or IFE matrix is an important strategic tool

to evaluate major strengths and weaknesses in functional areas of a

business. Management of the organizations used these tools to list down all


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the internal strengths and weaknesses of the organization in order to make

useful strategic plans. Management of the organization has given weight to

all these factors according to their importance.

Internal Strengths

Weig

ht

Ratin

g

Weighted

ScoreSole Manufacturer inthe market 12%

30.25

Portability 12% 3 0.38

Economical Price 10% 3 0.43

Uniqueness 12% 4 0.44No ElectricityConsumption 7%

40.57

Trust among Partners 7% 3 0.43Close Proximity toSuppliers 8%

30.30

Internal Weaknesses Highly Dependableupon Sales 7%

20.29

Limited Resources 8% 1 0.13

Limited Suppliers 5% 1 0.20Market ResearchProblem 6%

10.17

Rented Property 6% 1 0.11

Total Weighted Score 100% 3.69

External Factors of Evaluation:

External Factor Evaluation (EFE) matrix method is a strategic-

management tool often used for assessment of current business conditions.

The EFE matrix is a good tool to visualize and prioritize the opportunities and

threats that a business is facing.

OpportunitiesWeig

htRatin

gWeighted

Score

Expansion 12% 3 0.25

Technology 10% 4 0.40

Minimization of cost 6% 3 0.50Optimize Production 9% 3 0.33

Picnic Spot 11% 4 0.36

Energy Crises 10% 3 0.30

Threats

Economic Downfall 5% 1 0.20Unstable PoliticalSituation 6%

10.17


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Entrance of NewCompetitors 8%

10.13

Tax 10%2 0.20

Interest Rate 7% 1 0.14Huge amount of

Substitute 6%1

0.17Total Weighted Score 100% 3.15

Poor (1), below average (2), above average (3), Superior (4)

Market Size and Trends:

The market size which we target for our product is big and also has so

much potential within it. We divided our target market size in different

categories i.e.

Households

Business Personnel

Passengers

Students

Architectures

Engineers

Doctors etc

As we mention earlier our product 2D Solar Cabinet has some features

which are very similar to fridge and ovens. Therefore we consider some

companies both local and multinational who manufacture freezer and ovens

and we consider them as our indirect competitors. To analyze the trend of

this industry we have taken past five years data of these companies. We

conclude the end result on the basis of their per year units of production and

per year units sold.

As our product first time introduced in Pakistans electronic industry for

this reason we havent find any direct competitor regarding our product. But

for analyzing the trend of electronic market we have taken the past 5 years

sales of different electronic companies both local and multinational. We have

taken the sales of PEL, LG, and Philips etc because sales of these companies

tell us about the trend of electronic industry or we can say either people are

really willing to purchase such electronic products or not.


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The table which is given above collectively tells us about the past fiveyear sales of PEL electronics in Pakistans different cities including Lahore

which is our target city. According to the table in year 2005-06 the total sales

of PEL in Pakistans different cities were about Rs. 8075382. Then in year

2006-07 this amount gradually increased up to Rs.11042160. in year 2007-

08 we have seen more growth and the totals sales of PEL reached up to

Rs.13077670. in 2008-09 the total sales of company was slightly increased

up to Rs.13926572 and we have seen in table in 2009-10 this amount

increased more rapidly as compared to past two years. In this year the total

sales of the company was raised up to Rs. 16117524. To understand more

clearly we have seen the trend line of total sales of PEL is continuously grow

up ward which means people of Pakistan are willing to buy different kinds of

electronic instruments for their domestic and for commercial use as well.

PEL

Years Total Sales

2005-06 8075382

2006-07 11042160

2007-08 13077670

2008-09 13926572

2009-10 16117524

LG

Years Total Sales

2005-06 23,774,151

2006-07 23,170,719

2007-08 23,501,935

2008-09 23,901,672

2009-10 30,513,436


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The table which is given above tells us very briefly about the past five

year sales of LG electronics in not even in Pakistan but other countries as

well. In these total sales LG earned a substantial part of its sales from

Pakistan. From year 2005 -2008 the total sales of LG electronics were grow

very consistent in a straight line. Then in 2009-10 they have faced very huge

change and their total sales increased from $23901672 to $30,513,436. This

was the very massive change which they have seen from past five years.

This sudden change tells us about that the trend of purchasing such

electronics goods increasing very rapidly as compared to previous years. This

change in trend will also very helpful in order to grow of our product.

We have also taken total sales of Philips to understand the trend in abetter way. The table which is given above has taken sales of Philips in Asia

in which Pakistan contribute an important part of their total earning. In 2005-

06 the total sales of Philips was Rs. 25445000 then this ratio was increased

in 2006-07 when sales grown upward direction and the total collection of

sales in that year was 26,682,496. In next year the amount of sales were

slightly increased up to Rs. 26,793,000 then in very next year in 2008-09 this

Philips

Years Total Sales

2005-06 25,445,000

2006-07 26,682,496

2007-08 26,793,000

2008-09 21,638,596

2009-10 23,189,236


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ratio fell down up to 21,638,596 due to some economical crisis in Asian

countries especially in Pakistan but last year sales again raised in upward

direction and the collection of last year sales were 23,189,236 which was

quite better then the last year.

Growth Potential:

We have planned to grow our business; in this regard our all partners and

employees align with the mission of our business and develop strategies in

order to expand our business all over the Pakistan.

As we mention earlier we introduced this kind of product 2D Solar

Cabinet for very first time in Pakistans market, and the unique

characteristics of our product it is not dependable upon the electricity but

using the solar energy which directly come from the sun with the help of

solar panel which is placed at the top of 2D Solar Cabinet. Its also veryconvenient and easy to carry this cabinet from one place to another single

handed. Our product also has the ability to keep cool water and beverages

and make the food hot and ready to eat within few minutes according to the

demand of user. All these unique feature of our product have so much

potential to grow in Pakistans electronic market.

We also make some long term strategies (5 years) in order to grow the

products of our company in an effective and efficient way.

We plan to introduce some more unique products in near future.

We also plan to capture 15% - 20% market share of electronic industry.

Expand our business in all the major cities of Pakistan.

Export our product to Bangladesh & Iran.

Registered our business in Lahore Stock exchange (LSE) and Karachi

stock Exchange (KSE).

Barriers to Growth:

The electronic market of Pakistan has so many opportunities within it

for new businesses. This market has very subsequent space to accept new

ideas and technologies, but on the other hand it also carries so many barriers

which create hurdles in the success of business. As we all know from last few


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years the financial system of Pakistan collapse very badly and the worth of

Pakistans currency declined day by day.

Most of the businesses import cheap raw material from countries like

China, India, Iran, Afghanistan, so some time they face import restriction

which are imposed by the government.

Energy crisis create another hurdle for manufacturing businesses in

Pakistan. It might be possible some of our competitors come up with more

advance product and create problem in the way of our companys product

growth.

As we all know electronic product are so much price sensitive, so it

might be possible someone offers same product at very low price as

compared to us in near future. Unstable political situation, bad law and order

situation, infrastructure problems are big hurdles for FDI (foreign directinvestment) in Pakistan.

Competitors Analysis:

There is no direct competitor of our product as we are going to

introduce this product for very first time in Pakistan. In electronic industry

there is very huge number of competitors who made the products which are

highly related with each other. In case of our business we are not facing any

direct competitor but having very huge number of indirect competitors and

substitutes.

Indirect Competitors:

o In Pakistan so much local companies like Dawlance, Waves, PEL

etc and foreign companies like LG, Philips, Haier, Mitsubishi etc

produces good quality and high variety of fridges, ovens and

other home appliances.

Substitutes:

o Thermos, jugs, Bottles, ice box, microwave ovens, room fridgeare very closely substitutes of our product

Market Strategy:

Market strategy is a process that allows company to make such

strategies that are helpful to increase companys sales by using its limited


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resources. Market strategy is also very important in order to achieve a

sustainable competitive advantage.

Market strategy is very important for small businesses like us (Star

Tech) to reach and capture maximum audience with in a very short period of

time and also using limited resources. In our marketing strategy we combinedifferent techniques like Market Segmentation, Target Market Selection and

Description, Product Description (Value Proposition & USP), Pricing Strategy,

Sales & Distribution Strategy and Advertising & Promotions Strategy in order

to capture our target market.

The Key concept of Star Techs Market Strategy is to get the complete attention of

Target Market

Market Segmentation:

When we talks about market segmentation its means divide the market

in terms of its demographic factors, geographic factors, psychographic,

preferences for specific end benefit and media graphics etc.

The Main target of our product 2D Solar Cabinet including family

households most importantly passengers and the people who want to

somewhere for picnic within or outside the city. In households we targetedmarried couples, bachelors, students, business Personnel etc. We havent

targeted any particular age group people but all the people who aged among

25-60 or more.

Demographic Factors:

In Demographic segmentation market of 2D Solar Panel can be

divided in the following categories.

Age Above 20, 21-30, 31-40, 41-50, 51-55 or moreGender Male, Female

Income Above 20,000, 20,000-30,000, 30,000-40,000 or moreOccupat

ion

Households, Business Personnel, Students, Teachers, Doctors,

Engineers etc


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Geographic Factors:

In geographic segmentation, market can be divided into following

categories:

WorldRegion Asia

Country Pakistan

Cities

All major cities of Pakistan (Currently

Lahore)

Psychographic:

As we all know humans life style, their need, and his way of thinking

continuously changed. Due to this rapid change their definition regarding

luxury, convenience and ease are also changed. All these changes directly

related with business strategies and force them to introduce something new

and unique. We targeted the upper middle class, middle class and elite class

households. Majority of people of these groups are so much sensitive about

new trend, innovations and ease. In this regard our product having almost all

these characteristics which influence these people.

Preferences for Specific End Benefits:

As we all know electricity crisis is the major problem that Pakistan has

faced these in these days. Very huge population of Pakistan wants to have

some product which is not dependable on electricity and give them

maximum convenience and ease. Due to this reason we are very much sure

people prefer our product for the following specific end benefits.

Occasion Picnics, Marriages, Parties & others.

User status Regular users, Potential users.

Media graphics:

All famous T.V channels (Initially City 42)

Radio Channels (Fm 103, Fm 91, Fm 106.2)

Best selling Newspapers (The News, Jang)


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Bill boards & Hoardings

Target Market Selection & Description:

We are targeting the people who associated with middle class, upper

middle class and elite class groups and using fridge and ovens on daily basis

like family households, business Personnel, passengers, students (who living

in hostels), people who going somewhere for picnic within or outside the

city. Our target customer is passengers. The basic reason to focusing or

targeting passengers is their usage patterns and requirement because such

kind of product give them so much ease to keep their water, beverages, ice

cubes and food hot and cold as per demand and requirement. We are also

targeted sales man of different multinational companies like Pepsi Co,

Cocacola Company, and Nestle etc.

Today households want to be different; they are fun loving and want to

enjoy every moment of their life. Technology makes our lives very

comfortable and everyone in this world ready to pay for their ease, pleasure

and satisfaction.

Product Description (Value Proposition):

The uniqueness in our product is that we are offering the features of

fridge and ovens together. Another very important feature of our product is,

it is not depending upon the electricity. People (especially women) can carrythis product very easily. Our product offers another unique characteristic to

keep food, water, beverages, ice cubes, milk etc fresh, warm and cold as per

demand and need. The concept of solar panel highly differentiates our

product from traditional fridges and ovens. The essential key success factors

are Innovation and Uniqueness in the product.

Unique Selling Point (USP):

A totally new product

A very unique combination of two different dimensions (Cold and Hot)

No electricity consumption

Using solar energy

Good promotional activities


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Strong Research & Development

Pricing Strategy:

Although our product is very unique and nobody is offering this kind of

unique features in fridge and ovens but still we cant charge as much as we

want to our customers, because we are just starting a new business and at

the moment our brand is no well known furthermore the per capita income is

not that much in Pakistan and people feel a bit reluctant in spending money.

We used Market penetration as our pricing strategy at the beginning.

And will easily Charge a high price later because we will have a substantial

competitive advantage.

Particulars

Rate Per

UnitBox 5000Solar Panel 1500Controller 1000Battery 1000Total 8500Others 500Total Cost 9000SellingPrice 15000

We are selling our product at a very low price because it is the new

product of its kind so in order to enter in the market successfully we are

using penetration strategy for our pricing.

Sales & Distributions Strategy:

Sales are the most important factor in any kind of business because only

sales tell us either the business exists in future or not. Likewise sales, strong

and effective distribution channel is also very important element in business

success. If you have huge number of customers but your distribution channel

is not very effective so you lose both customer and his believe which is

directly associated with its need.

We placed our products banners, posters in very famous electronic

stores of Lahore most busy electronic markets like Abid Market, Hall


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Road and Township Market etc to reach our target customer which is

directly related our sales growth.

To increase our sales we also place our product (2D Solar Cabinet) invery famous retail and whole sale stores and plazas of Lahore like

Makro, Metro, Pace, Siddique Trade Center etc.

Distribution:

The product which we made for the convenience and ease of our target

customers is available by using multiple channels of distribution. We have

planned to distribute 2D solar cabinet through our outlet at Abid Marketand

through the big dealers of electronic appliances of Lahore city.We have used

selective distribution strategy. As we mention earlier our product targetingthe middle class and elite class group it means it is selective for only two

classes. So we only distributed our product in some selective and well known

electronic stores of Lahore.

Distribution Channel:

We have used private channel and deliver our product to our own

outlet in Abid Market and some selective dealers and retail and wholesale

store of Lahore. We have used channel for distribution of 2D Solar Cabinet

which is given below. Since timely distributing of product is the basicrequirement to promote sales and get confidence of retailers. We not only

distribute our product to retailers but also maintaining an effective

communication with our retailers. We also get feedback from our retailers on

monthly basis about the complaints regarding our product, pricing issues,

quality and distribution of our product.

Assembling:

In distribution channel the first step is to assemble the all parts of the

product in companies warehouse.

Assemblers Outlet & Dealers Customers


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Outlets & other Dealers:

Then deliver it to companies own outlet and some other famous

dealers of electronic industry where our product has placed to capture the

target markets attention.

Customers:

After capturing the target markets attention sell the product to the

potential buyers of target market and also getting their feedback to improve

the quality and efficiency of product.

Advertising & Promotions Strategy:

Advertising and promotional strategies are very essential element for

any kind of newly operated business either it is related with manufacturing orservice providing. Advertising and promotional strategy gives complete

introduction and description of product to general public and most

importantly to their target market. Advertising and promotions strategies

help to keep the consumers informed about whatever new products or

services are available in the market. It helps to spread awareness about

products or services that are of some use to consumer and potential buyers.

The main objectives of advertising and promotions strategies are:

To inform, to persuade & to remind customers about your product

Create Repeat Exposure and Continued Sales

Widespread Name Recognition

A single advertising campaign can create awareness, enhance brand

image & to increase sales.

Advertising:

Advertising is one of the most important things present in or societytoday, like an old slogan puts it 'Advertising, your right to choose'.

Advertising consist of two types or we can say that it capture two different

form of mediums.

Above the line advertising


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Below the line advertising

When businesses uses public mediums to advertise their products like

Television, Billboards, Radio, Print media and internet etc so they advertise

their products through above the line advertising. Whereas when business

uses all the private mediums to communicate their target market whichincludes direct calling, Fax and E-mails etc then they are using below the line

advertising.

We do advertisement and promotion to aware the potential customers

about our unique product because we believe that good marketing is

something that helps business to grow.

We also advertise our product by using both form of advertisement

medium like Television commercials; show sponsorships, Radio commercials,

Newspaper Ads, Outdoor billboards etc.

We advertise our product by using different advertisement strategies like

Price Promotion (Discount to the normal selling price of a product).

Point-of-sale displays at different electronics stores.

Constantly moving Vehicles promoting our Product in big cities of

Pakistan especially in Lahore.

Window displays of shops and stores.

Displaying 2D solar cabinets theme on the shops name board.

Promotional Strategies:

Promotional strategies are very important to gives complete

description and unique characteristics of product to target market. We plan

to promote our 2D solar cabinet through:

Brand endorsement through unique features.

Ads on Cable.

Distribute broachers on traffic signals and different electronic stores

having complete information about our product as it is more

effective and cheap way to reach our target market.


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Distribute broachers at homes as well.

To well promote our product we are using different promotional tools

like POS material, Billboards, Broachers/ Leaflets etc. Below we give the

complete descriptions of these tools in term of per unit cost.

POS Material:

POS material mean point of sale material this will include: posters

and stickers display at some eye-catching positions in different famous

electronic stores in Hall Road, Abid Market and Township stores.

Broachers/ Leaflets:

We have had a contract with C-Signs Advertising Company & they

will charge us Rs-1/- for every five brochures. So initially we will order themfor 100,000 brochures and it will cost us almost Rs.20, 000/-.We distributes

these broachers all over the city (Lahore).

Section IV:

Operations:

Operational Details:

We started our operation from Hall Road because this location is

perfect for our business as we can enjoy different benefits here. We have

found almost all the particulars which are necessary for the making of our

product 2D Solar Cabinet like solar panel, controller, battery, box etc.

Because we are the innovators of this product and first time launched

this kind of product in Pakistans electronic market so we havent available

any kind of previous data to measure and forecast the demand and trend of

market. Therefore we have taken the expertise of professionals of this field.


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In our marketing operations we hire two sales people who go to take

orders from the big retailers of Abid Market, Hall Road and Township Market

etc. We have purchased box from Mian Traders, solar panel and controller

from Shaheen Solar Traders and battery from Aftab Electric Traders for

manufacturing of 2D Solar Cabinet.

This product is first time launched in Pakistan so there is no kind of

formal machinery is available to assemble our product therefore all the

assembling process had done with hands. For that purpose we manufactured

our product from Mr. Sultan Akbar. As we mention it earlier our outlet

situated in Abid Market and distance between Hall Road and Abid Market not

too long so it helps us to minimize our transportation cost and also beneficial

for to in order to save our time.

We have two options regarding the availability of parts that are used in

our product. One option is to import all the raw material regarding ourproduct from china or purchased it from the local market (Hall Road) of

Lahore. Import raw material from china is costly due to high import duty

which is imposed by government as compared to purchased all the parts

locally. We have decided to go with the second option and purchased all the

parts locally and also assembled them by using local resources in order to

give customers new and quality product.

Capacity Management:

Capacity Management has contains all that activities which are related

to, the number of units a facility can hold, receive, store or produced in a

specific period of time.

Capacity Management tells us about the design and actual capacity of

the company. Companies can judge the effectiveness of its capacity planning

on the basis of its percentage of utilization and its percentage of efficiency.

Design Capacity:

Design capacity is the maximum output of the system means howmany maximum units can company has produced, hold and store by using its

given resources.

In case of our company Star Tech we have set our design capacity

after analyzing all given resources the maximum units which we store, hold


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and produced is 425 units in a year. Its mean almost 36 units produced in a

month.

Design Capacity = 425 units/year

Effective or Actual Capacity:

Effective or Actual Capacity is the capacity a firm expects to achieve

according to current operating constraints or in other words we can say the

units which company has actually produced by using its given resources.

Effective Capacity is usually lower than the design capacity.

We have the design capacity to produced almost 625 units of 2D Solar

Cabinet in a year but according to the current situation of Pakistan we have

faced lots of problems that create hurdle for us in order to meet our design

capacity. In current situation we have facing the issue of load shading,strikes and Absenteeism etc. therefore we are far away from our design

capacity and actually the units we produced in given situation are 225 in a

year or almost 19 units in a month.

Effective or Actual Capacity = 225 units/ year

Utilization:

The formula which we normally used to calculate the utilization of any

company, factory etc is given below:

Utilization = Effective Capacity/ Design Capacity

Utilization of Star Tech for 1st year is:

Utilization = 225/ 425

Utilization = 53%

Supply Chain Management:

The operations of supply chain starts from supplies of raw material to

delivery of finished product to customer. As the flow chart diagram which is


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Dealers &

OutletsAssemble CustomersSuppliers

given below clearly shows the whole process of supply chain management

very clearly.

Star Tech also follows the same operations of supply chain which is

given above. Suppliers which are selected by the top management of the

company supply the needed parts of the product to the production plant

where the production department assembles the all parts of the product.

After that the final product distributes as per demand to companys own

outlet and to all the dealers outlets which are also selected by the top

management of the Star Tech. Then retailers of the outlets deliver the

finished product to the customer.

Inventory Management:

Inventory Management is very important factor for businesses and

they spends lots of its revenue in order to manage inventory properly.

Businesses stored different types of material or parts which are being used in

the manufacturing or assembling of the product in its inventory. Companies

store Raw Material (Purchased but not processed), Work in Process

(Undergone some change but not processed) and Finished Goods (Completed

product awaiting shipment) etc.

As we know inventory management is an important component of

supply chain management. Companies manage its inventory in order to deal

with push and pull supply chain activities. Push supply chain means

companies have enough or appropriate material in its inventory before

placing the order by customers. Companies also have enough inventories in

their warehouses which can easily handle with pull supply chain means the

activities starts after placing the order by customers.

We also works on both these techniques in our inventory management

so we can easily tackle with all such push and pull supply chain activities. As

we mention earlier we have the effective capacity to produce units in a year

are 225 so we have appropriate stock in our warehouse to produce almost

half of the units.

Suppliers:


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As we all know suppliers are the most important element and play very

important part in the success of any business especially the businesses

which are related with manufacturing like our business. Businesses depend

of Variety of suppliers who provide them different goods and services on

demand.

Businesses that are related with manufacturing mostly depend upon

number of suppliers. In which some of them are supplies raw materials, some

are supplies the whole part which being used in the manufacturing of

product. So its very important for businesses to locate their warehouses and

outlets at those places where supplies availability is easy and convenient

because all these things are directly related with your supply chain activities,

your delivery and distribution plans. It also plays an important role in order to

minimize the transportation cost of businesses.

It is also very important for us to locate our warehouse and productionplant at those places where supplies are easily and economically available. If

we do not focus on this thing so it creates so many hurdles in our production

and distribution operations. All the parts which are needed in the making of

our product not frequently available to us and it also increase our

transportation and shipping cost. All these things disturb our entire budget

very badly and it was very difficult for us to compete with those businesses

that get these things on very economical and cheapest rate.

To keep in mind all these factors we have decided to locate our

warehouse and production plant at that place which is near to Abid Market

and Hall Road because we targeted both these places. Therefore we rented

the place for our warehouse and production plant at Mozang chunggi that is

near to both these places.

Different parts which are used in the making of our product 2D Solar

Cabinet being purchased from different suppliers.

We have purchased Solar Panel and controller Rs. 1,500 and 1,000

respectively from Mr. Imtiaz Ali who is the owner of Shaheen Solar

Company situated in Hall road.

We have purchased the box (China made) Rs. 4,000 per box form Mian

Idress who is the owner of Mian Traders situated at Mintgumni Road.

We have purchased battery Rs. 1,000 per unit from Aftab Electric

Traders situated in Hall Road.


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Location:

We are new in this business so after analyzing the different locations of

Lahore city we find large amount of clusters related to our product in some

big electronics market of Lahore like Abid Market, Hall Road and Township

Market etc.

We decided to open our outlet in Abid Market for this purpose we

rented a shop in 1st floor of Al-Muzammil Plaza situated at the center of Abid

Market. Abid Market is very busy electronic market of Lahore city so its easy

for us to reach large number of audience and also capture our target market

in an efficient and convenient way. For assembling and storing purpose we

rented two warehouses at Mozang Chunggi which is very near to Abid

Market. Rent of outlet, warehouse and production plant are Rs 30,000,

35,000 and Rs 25,000 respectively and we paid security Rs 300,000 for

outlet, warehouse and production plant. We also take an office consisting of

three rooms in Al Tariq Plaza near at Hall Road. The rent of our office is Rs

25,000.

Logistics:

The components that are to be kept in mind while developing a logistics

strategy.

Logistic Network:

The components in logistic network are transportation, outsourcing,

logistic system, competitor and strategy review. As the owners of the

company we are aware of the transportation cost that has a major impact on

the success of our operations. We have established an efficient plan in which

we are reducing maximum cost out of every pickup or delivery. With the

Roadnet Transportation Suite (software) we are sure that our logistics

department creates the most cost-effective routes. Our employees will have

the ability to communicate with drivers and make last minute adjustments tothe plan as needed. Additionally, this suite has shown a significance

reduction in:

Driver overtime and turnover

Mileage and fuel costs


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Employee routing time

This software can help us improve customer service and driver

communication, productivity and operational efficiency. Its applications

include planning, routing, loading, dispatching and tracking systems

designed to make the distribution process more efficient. Software will givethe flexibility to create optimal routes, while balancing customer service

needs and time window commitments. Additionally, we have GPS and

wireless communication between drivers and dispatch, which gives us the

advantage of having up-to-the-minute delivery status.

We can:

Easily maintain customer information

Route and get orders out fast

Add special orders or off-day deliveries efficiently

Respond to customers with accurate delivery information

Provide drivers with directions or route assistance when needed

Manage daily route exceptions

Information:

We will keep our information up-to-date because in business

information is everything until and unless it is important. We will have the

information about the raw-material that whether prices are increasing or

decreasing. Information about the product is very much important, it gives

the data about the numbers of the product that are finished or are in work in

progress. Information about the trends that are shifting e.g. in summer most

people go for picnic or visit northern areas for that demand for our product

increases.

Warehousing, Materials Handling & Packaging:


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First of all we have to set a layout for the warehouse. The selection of

the layout should be in such a way that it accommodates new product line

and gives the greater flexibility to the warehouse operations. When a new

warehouse layout is proposed a detailed planning process should be followed

to ensure the success of the project. After layout we will go for the packaging

material that the carton of the product is designed in such a way that it cover

the product from damages like water, heat and fall as much as it can. Then

the carton is to put in the wooden box and the boxes can be easily placed

one above the other in order to utilize minimum space with maximum units.


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Section V:

Management:

Legal Structure:Legal structure of the business is very important element for long term

existence of the firm. It contains so many things like governments rules and

regulations which businesses should follow. It also clarify is there any activity

which is banned by the government. This structure also gives complete

information either the business is self owned /sole proprietorship, or it follow

the terms of partnership or any other legal aspect.

Our business is based upon the terms of partnership in which five

members have an equal share. All the partners would legally be liable for allthe debts and obligations. All the partners will act as the head in the

company and in future board of directors will be overseeing the company as

well as making decisions of the company with the agreement of all the

partners. All the managers would be directly reporting to them.

Human Resource Management:

Organizational Structure:

Our organizational structure is centrally coordinated and all thepartners of business equally responsible and shared all the benefits and

obstacles. Because we are very new in this field for this purpose we need to

hire some professionals who helped us during different operations of the

business. We have signed one year legal contract with our consultants.

We want that kind of persons who are honest and sincerely associate

with us, for this reason we negotiated with several vendors, retailers and

some of our friends who associated with electronic industry for many years.

After lots of negotiation and discussion among all the partners we decided to

hire Mr. Akbar Ali as the in charge of our production department. He diddiploma in electronics from poly technical college of Lahore and associated

with this field from last 10 years. He also works as an expert consultant,

gives us some helpful suggestions and guides us in other processes of our

business.


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Mr. Faiq Ali who is one of the partner of our business he voluntary

asked for the responsibilities of accounts department. He hired a person

named Mr. Waseem Ahmed with him for proper checks of accounts. Mr.

Waseem Ahmed did B.Com in 2008 from Quaid e Azam College of Commerce

and having a two years accounts officer experience in Pakland Scientific

Productions.

Mr. Tahir Saeed who is another business partner of the firm he asked

for the responsibilities of marketing department of the company. To make his

work more effective and convenient he hired two persons Mr. Abdul Qadir

and Mr. Zain Sabir in marketing department they both work under his

supervision. They helped him in different processes and making strategies of

marketing department. Marketing department is responsible for the

marketing and selling of the companys product.

Mr.Zulqarnain Babar is the official consultant of our company and heworks as a quality inspector in our company. He did MBA professional from

LSE (Lahore Schools of Economics) in 2005 and associated with Pakistan

Institute of Quality from last 4 years.

Mr Usman Javaid Khan is the head of management department and the

partner of our business. He hired Mr. Ubaid ur Rehman with him. The basic

purpose of HR Department is, to communicate the professional information

among all the departments. HR Department is also responsible to make

coordination among all departments and also responsible for employees

satisfaction.

Mr. Mubeen Tariq and Mr. Hasib Ur Rehman are the in charge of supply

chain and Inventory handling Department.

Staffing Plan:

Staffing plan clearly describe about the departments working in the

organization and the people who are working in each of these departments.

Production Department: Mr. Akbar Ali is the Manager ofproduction department and Mr. Sohail

Aslam assists him in that department.

Finance & Accounts Department: Mr. Faiq Ali is the head of thisdepartment and Mr. Waseem Ahmed

assists him.


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Marketing & Sales Department: Mr. Tahir Saeed is the head ofMarketing & Sales Department. Mr. Abdul

Qadir and Mr. Zain Sabir assist him.

Quality Control Department: Mr. Zulqarnain Babar is the incharge of Quality Control Department.

Human Resource Department: Mr. Usman Khan is the head of thisdepartment and Mr. Ubaid ur Rehman

assists him in this department.

IT Department: Mr. Faraz Ahmed is the in charge ofIT Department.

SC & Inventory Department: Mr. Mubin Tariq and Mr. Hasib ur

Rehman fulfill the reponsibilites of SupplyChain & Inventory Handing Department

and Mr. Sayyam Ijaz works in this

department under the supervision of

them.

Service Department: Mr. Muhammad Ayub, Mr. Gulam Abbas,Mr. Usman Zahir, Mr. Muhammad Raza

works in service department.

Salaries:


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The table which is given below gives complete description about the

employees, salaries and their respective departments.

Explanation:

Mr. ABC associated with production department in our firm. He is

responsible all the production process of the firm in which he supervised the

assembling process of 2D Solar Cabinet. He was associated with this industry

from last 10 years. he charged Rs 15,000 in order to gives his services. In

production department another person who helped him named Mr. Sohail

Aslam. He helped him during assembling process he charged Rs 10,000.

Mr. Waseem Ahmed working in accounts department as an accounts

officer. He managed all the accounts of the company under the supervision

of Mr. Faiq Ali, who is the head of accounts department. Salary of Mr

Waseem Ahmed is Rs 10,000.

Departments

Designatio

ns

Employees

Name

Salarie

s

Production Department

(Head of

Dept) Mr. Akbar Ali 15,000

(Employee) Mr. Sohail Aslam 10,000

Finance & Accounts Department

(Accounts

Officer)

Mr. Waseem

Ahmed 10,000

Marketing & Sales Department (Sales Man) Mr. Abdul Qadir 8,000

(Sales Man) Mr. Zain Sabir 8,000

Quality Control Department

Quality

Inspector

Mr. Zulqarnain

Babar 12,000

Human Resource Department (Employee)

Mr. Ubaid ur

Rehman 8,000Supply Chain & Inventory Handing

Department (Employee) Mr. Sayyam Ijaz 8,000

Service Department (Messenger)

Mr. Muhammad

Ayub 6,000

(Peon) Mr. Gulam Abbas 5,000

(Gun Man) Mr. Usman Zahir 6,000

(Loader)

Mr. Muhammad

Raza 5,500

Total salaries 101,500


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Mr.Abdul Qadir and Mr. Zain Sabir both are working in marketing

department. He managed all the advertising and promoting related activities

of firm the company. They are under the supervision of Mr. Tahir Saeed, who

is the head of Marketing Department. Salaries of Mr. Abdul Qadir and Mr.

Zain Sabir are Rs 8,000 each.

Mr Zulqarnain Baber works as an official consultant with us. He is

responsible for the quality of our products and charged Rs 12,000 for his

services.

Mr. Ubaid ur Rehman working in HR department. He managed all the

collaborative activities under the supervision of Mr. Usman Javaid Khan, who

is the head of HR department. Mr. Ubaid ur Rehman charged Rs 8,000.

Mr Sayyam Ijaz working in Supply chain and inventory handing

department under the supervision of Mr. Mubin Tariq and Mr. Hasib urRehman. He charged Rs 8,000 from us.

In service department we hired four employees. Mr. Muhammad Ayub

fulfills the duties of messenger in company; he keeps and manages all the

previous data of company in store room. His salary is Rs 6,000. In very same

department Mr. Gulam Abbas fulfills the duties of peon. Mr. Usman Zahir is

the gun man of company and Mr. Muhammad Raza mostly works in

warehouse of the company and he load and unload the inventory. Salaries of

Gulam Abbas, Usman Zahir and Muhammad Raza are Rs 5,000, 6,000 and

5,500 respectively.


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Job Description & Job Specification (JDs, JSs)

We have seven different departments in our company and each

department has deal with different operations and activities according to therequirement. In these departments includes Production Department, Finance

& Accounting Department, Marketing & Sales Department, HR Department,

Quality Control Department, IT Department, Supply Chain & Inventory

Department and Service Department etc.

Job Description and Specification Production Department:

Job Title: Manager of the DepartmentDepartmen

t: Sales and Marketing LahoreReports To: Production Director

Job Summary:

Responsible to maintain production procedures and to maintain highstandards of manufacturing operations, product quality, reliability, and safety

Duties and Responsibilities:

Maintain a safe and organized work environment.

Lead efficiency improvement within the manufacturing processes.

Responsible for assisting in the raw materials inventory accuracy.

Plan future manufacturing programs to obtain maximum value from

production resources such as equipment, machines and testing as

well as personnel.

Plan, analyze, prioritize, coordinate, and facilitate all lean efforts

within Operations.


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Job Description for the Sales Representative:

Job Summary:

Responsible of all sales activities are to meet both personal and

organizational goals. Develops Marketing plan and insure its implementation.

Work within the sales team for the achievement of customer satisfaction,

revenue generation and long term organizational goals.


Develops annual business plan with sales manager which includes

detailed activities to follow during the fiscal year and set the targets.

Should have excellent presentation and communication skills.

Complete understanding about selling and pricing of the product.

Should have excellent convincing abilities.

Assists in the companys marketing plan.

Responsible for clients dealing and developing relationship.

Maintains accurate records of all sales activities including sales

receipts.

Job Title: Sales RepresentativeDepartment:

Sales and Marketing Lahore

Reports To: Sales Manager


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Participates in the activities related to clients and company employees

such as training.

Job specification:

3 to 5 years of experience in sales and marketing department.

Strong understanding of customers relationship Management and

supplier relationship management.

Willingness to travel and work with different teams within the country.

Job Description of Account Officer:

Job title: Accounts officerDepartment: Accounts

Reports to: Accounts Manager

Job summary:

The basic function of the account officer is to maintain the Accounting

related record and schedules on daily basis. Provide executive summary

report to the senior management. Responsible of all the internal and external

reporting deadlines of loans, tax and third parties


Forecasting sales to optimize scheduling.

Analyze financial statements and manage risks.

Active accounts reporting procedure on daily basis

Participate in the sales and pricing strategies and product expansion

on the basis of accounts.

Job Specification:


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MBA or higher degree preferably in Finance, Accounting, Business or

Economics.

2-5 years experience in the accounts department.

Strong analytical skills.

Strong communication skills to develop relationship with the other

members of the community such as Banks, clients etc.

Ability to manage multiple priorities within given framework.

Strong grip in computer handling softwares.

Ability to learn additional applications as needed.

Job Description for Human Resources

Job Title: Human Resources Manager.Department: Human resources

Reports To: Director Human Resources.

Job summary:

Human resources manager is responsible for all the activities related to

the Human resources of the company which includes Recruitment, Training,

Development, and employee counseling and performance appraisal.


Responsible of conducting interviews and negotiating salaries.

Keep in touch with recruitment agencies, educational institutions etc.

To guide and train the employees of the company.

Motivate employees on their performance.

Teaches the workplace ethics, safety issues, and health.


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Planning, supervising and coordinating the activities related toemployment, labor relations and compensation.

Responsible for terminating the employees.

Job specification for Human Resources:

5-7 years experience in the field of HR management in any homeappliances company with in a country or globally is a plus.

MBA with specialization of HR management (additional diplomasrelated to the field will be preferable).

Good in communication and negotiation skills.

High team work skills.

Expert in employee law and employee relations.


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Section VII:

Critical Risks:

Potential Problems:It is very important for the businesses to keep in mind all the potential

problems and risks that they face in future. Like other businesses we also

keep in view all these potential problems that we might face in near future. It

also very important to keep these things at front because we started a new

business by using our own limited resources and budget constraint is also

there. Early identifications of these problems is important because if we will

face such hurdles in future so at that time we will able to take some action in

order to avoid these problems. So the expected problems which we consider

to undertake are given below:

Financial Problems:

The first and most important problem is financial problem. As we

mention this problem earlier at different places. As we know in these days

Pakistan facing the worst financial crisis of its history. Inflation rate,

unemployment rate are continuously increases which makes the entire

situation more horrible. Due to this financial crisis foreign investors not ready

to invest even a single penny in our country.

Raw Material Problems:

As we know prices of raw material that we use in making of our

product are continuously increases as the result of this inflation we will face

shortage of raw material in future. It will also make our cost of production so

high.

Taxes:

Taxes are another big problem for businesses. As we know the big

portion of raw material that businesses used in their operations imported

from China, India, Bangladesh, Iran etc. Government of Pakistan now

increases the duty of such imports. They also imposed Value Added Tax on

different things that make the entire situation more threatening and

uncertain. In our case different items that we used in our product, in which

mostly are import from china. So it will make our cost of production very high

and that thing will disturb our entire budget very badly.


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Competitors:

Now nobody is manufacturing the product 2D Solar Cabinet which we

first time introduced in Pakistan. But in future there is a possibility that

someone will manufacture the similar product and sell it at competitive price.

Suppliers:

Due to continue rise in inflation, there is also a possibility in future our

suppliers also increase the price of components that we used in

manufacturing of 2D Solar Cabinet.

Distributer Demand:

In future there is a possibility that our distributers could demand more

commission. It will create a problem for us.

Law & Order Situation:

Poor law and order situation also the major problem that Pakistan

businesses have faced in these days. Almost every type of business

irrespective how big or small it is feels very insecure while doing business in

Pakistan. Worst Political, Economical and Law and Order situation of Pakistan

will make the entire environment more crucial in future.

Pricing Problem:

Due to the bad economic condition of Pakistan everyone has pricing

problem. If we increase the price of our product so it will decrease the buying

power of consumer. Continuously increase prices of petrol and CNG more

contributed in pricing problem.

Obstacles & Risks:

As we all know the financial situation of Pakistan is not so good for the

new businesses like us. The value of Pakistans currency continuously falls

down and investors not ready to invest in this situation.

Industries crack down; high inflation and unemployment rate create

more hurdles for businesses. Infrastructure problems and pathetic law and

order situation also cant be neglected.

Unstable political situation also contributed in favor of these crises and

make the entire environment very uncertain.


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As our product is unique so we also faced some sort of demand

problems at start.

We also faced some problems regarding marketing research, because

we are launched this product at very low level only in Lahore, without

knowing the whole market situation of this industry in Pakistan.

Contingency Plans:

A contingency plan is a plan which gives you safest alternatives in order

to deal with specific situation when thing could go wrong. Contingency plan

is being used by government or even businesses who want to be prepared

for anything that could happen doesnt matter how rare that incident will

occur.

There are three phases of contingency plans:

Response Phase

Recovery Phase

Reconstitution or Restoration Phase

We increase the price of our product in such uneven circumstances. Like ifthe price of raw material will increase, our dealers will demand for morecommission or worst economical crack down will occur so under such unevencircumstances we will increase the price of our product to tackle with suchproblem.

If all Workers strike and demand for the wage increase, our company stanceto that issue will be positive we will talk to their leaders and will try tocompensate as much as possible.

On a Partners death we will first search for the new partners for investment

if unfortunately thats doesnt happen then we will manage our investmentwith the remaining partners of the country.

If we discover a Fire in our warehouse, outlet, office or production plant totackle with this problem we placed fire alarm at different places that will helpto immediately evacuate or leave the building or affected place via shortestand safest route in order to safe our most important assets which arehumans. We also placed fire extinguisher in order to handle such disastroussituation.


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Damages Assessment teams will also helpful to deal with such uneven event.Therefore we have given appropriate training to some of our employees.


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Section VIII:

Exit Strategy:

As we mention earlier in our financial projection that we start this

business by using our own resources without taking any loan from banks or

any other financial institution. By analyzing the whole situation we bear the

loss in our business up to 3 years. After that it will very difficult for us to

continue our activities because the reason behind this step is, our outlet,

warehouse, our office and our production plant all are rented. After that time

it will very difficult for us to manage such expenses like administrative

expenses, utilities expenses, salaries of employees etc. To keep in mind

worst come worst scenario if we will not find any sufficient acceptance

from our target audience regarding our product then the exit strategy we will

adopt is Buyout Strategy. By adapting this strategy we will sell our allrights of our company and remaining resources to big venture existing in our

related industry and straight away shutdown all the operations and activities

of our business.

Section IX:

Milestone Schedule:

PERT:

The first task is the proposal of the business which is done by all core

partners of the company. After that planning of research and development is

done by Usman khan because he has a good knowledge in this field.

Form of the business, business description and industry analysis is done by

all partners and this is the initial step taken by partners together. Budget

planning which is the next step is done by Tahir saeed and Mubeen Tariq.

Then comes the responsibility of HR department to hire the people which are

to be handled by Usman khan. Next is the stage of capacity management,procurement and assembling which is done by usman khan, mubeen tariq

and sayyam ijaz. Without advertisement our product is having no market, so

advertisement is taken care by akber ali and all of the five partners are

deciding media.


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We are first time doing an innovative business so in order to survive in

market quality of the product is to be maintaining with the quality standards.

We have a forecast of the demands and also contingency plan if this doesnt

work out, we are going to be handling our inventory voice verse by the

inventory management department. Last stage of the PERT is financial

record keeping which is to be done by Waseem ahmed.

CPM:

Manpower Plans:

The proposal of business plan has been made by the contribution of all

the partners of the business. Then the planning regarding Research &

Development has been done by Usman Khan. The basic purpose of the

planning was to analyze all the technical and physical aspects of the product

which has going to launched first time in Lahore market.

Because our business is based upon the partnership so both tasksincluding form of business and business description have been done by all

the partners of business.

Industry analysis is very important factor to analyze the trend of

industry which we have targeted so this portion has completed by Tahir

Saeed and Mubin Tariq.


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Budget planning has told about how we allocate our resources in order

to get maximum return. So Usman Khan and Faiq Ali both have made very

comprehensive budget plan of the business. Usman Khan also managed the

duties of HR Department in order to hire suitable candidate for each

department that is involved in the different operations of the business and he

also maintain strong coordination among all the departments.

Akbar Ali is the manager of Production Department of the company. He

managed all the activities of production department with the help of three

employees who have working under his supervision.

project finalized

Documents