business entrepreneurship

8/13/2019 business entrepreneurship

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EXECUTIVE SUMMARY

The most important part of business plan is the executive summary. It includes the main business

idea, market potentials, unique selling points, the service we are trying to sell, the profit making

process, the company vision and finally the financial forecast. Our report is mainly concerned

about the planning of online grocery business and Electronic business. Our strategy is to build an

impressive shopping website that not only take the order but also deliver the goods to the

doorstep for people who want to avoid the rush of shopping mall, traffic. The marketing of the

site will be built around the core value that the site will offer. lthough our competition has built

a simple store for ordering the product, this site will be reviewed by !eb award companies as a

great destination for the all needed customer. !e will build our revenue and market share around

this traffic and value added service. Our business model is based on the sales of the productsover the website. "ecause the site is also intended to increase brand equity, awareness and best

available product in cheapest market price, we are building for high traffic. Our model requires

giving users an excellent free experience and to develop trust to increase sell#through. !e may

lose money for at least three to six months while we build the traffic and develop our position for

the long#term future. Our first class design, product quality and user friendly design are critical

to our positioning as a dot#com company # we should be the best reviewed website in our

category, and that will become the key to future sales. $owever, the core experiences for the

every household have always been better, and with a better design team and a round of financing,

our company is ready to grow with the market. The company will distinguish itself from its

competitor as a full capacity center, rather than %ust a store front.

The target customers of our site are all affluent& we have the luxury of using the latest

technologies to impress the visitors with excellent design and animation. !e plan to release the

site entirely in groswave' format as almost ()* of our visitors will already have internet is

connected. !e will carry on the colorful and extremely well branded design of our company

literature and logo # the decisions on basic aesthetics will not get in the way. The site will have a

colorful and intelligent design, taking the ad campaign and product art into an interactive

medium on the !eb. Our e#commerce site will be built on a three#tier structure. +riven by

-T/ servers and an IIT/ !eb server backed with bandwidth, the site will be coded mostly

in 0old1usionT/ and 2T/. !e will be taking our registration databases live to be able to

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email updates on products and the website to customers. !e will offer customers the option to

take themselves out of the list. The information architecture will be based on four fundamental

arenas # the free valuable information arena, the product detail arena, the final purchasing arena,

and the purchase administration arena. The purchase arena will require a 4erisignT/ certificate

and a 0ybercashT/ connection. That will begin immediately because dealing with

0ybercashT/ can sometimes be a lengthy process. The administrative arena will be hosted on

mirror servers that query to the live databases for migration into local databases. This server is

hidden from Internet traffic and kept under high security even within the company. The entire

set#up will be somewhat costly. !e will need five servers, 5 for in#house reasons, and three for

!eb hosting reasons. Two of the !eb host servers will be serving traffic through

0old1usionT/ and 2T/ in cluster, and the third will be a dedicated -T/ server.

MISSION

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Our business plan is created through some motives. $ere we tried to explain our missions and

ob%ectives.

Product Mission:

!e will serve better quality product through a variety of domestic goods.

Economic Mission:

Operate and grow at a profitable rate through sound economic decisions. !e want to capture the

market share and replace a great portion of conventional super shops items. Our goal is a little bit

economical. !e are forwarding to reach our break#even point within one year and if we can

manage to double up our revenue within 6 years we have a plan to extend our business.

VISION

Our visionary view of this business is that we don7t want to see any body7s panic. !e want to

make people having a good likeness in buying. !e would like to make their day#to#day life

easier. /oreover, ensuring customer satisfaction is ultimate goal.

LIMITATIONS

ack of experience about merging

$igh setup cost

$igh maintenance cost

Trying to find the best

Existence of 0omparison

ikeness varies from person to person

INTRODUCTION

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Our business idea is all about web based. !e would like to provide services to people with a

view to making their day#to#day life more comfortable and easier. !e will provide customers

with grocery items as well as electronic goods. nd provision of these goods will be done

through web in the form of e#commerce. Our business will be beneficial for people who want to

avoid the rush of shopping malls, traffic, etc. 2eople can order us through web and thus we8ll be

able to know their demands, wants, etc. Then we8ll be able to act accordingly. 0ustomers can

check samples of the products they want in the web. !e8ll receive orders and then will take

every step to provide them the goods. Our services will save a lot of time of the customers. The

ultimate goal of our business plan is to ensure customer satisfaction.

ORIGIN OF THE REPORT

This report is prepared for Ta9rina 1arah, ecturer, 0ourse teacher of :Entrepreneurship;,

Course # F-306, 1aculty of "usiness tudies at


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ONLINE SHOPPING

+ay by day online shopping concept is developing by region in the world. The idea of online

shopping was found few years ago and statistic show people are doing their shopping more then

@) percent online .E"ay and ma9on has been running successful business in the world. "ut

time is now in "angladesh .ast two or three years few company has lunched online shopping

facility in "angladesh .One can browse product in their website and choose then have to give

order and have to choose one8s payment option .fter making payment they will send the order

product in one8s address .

1ew numbers of reasons behind the necessity of online shopping in "angladesh are the

following,

aA Improved productivityB


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they charge high cost and are not up to date with the price and products of the market. They

rarely modify the products and prices of day to day market.

!e have planned to establish a business of online shopping and modify it with some more

contemporary approaches and privileges. ome of them are the following,

1) Cash on delivery

!e want our customers to en%oy the opportunity of paying cash on delivery. 0ash on delivery

F0O+A is a financial transaction where the payment of products andCor services received is done

at the time of actual delivery rather than paid#for in advance. In some countries this remains a

popular option with internet#based retailers, since it is far easier to set up for small businesses

and does not require the purchaser to have a credit card. /ost small businesses prefer cash

payment over credit card payment.

Ecommerce has changed the way people shop for products and services and the manner in which

a business sells its services to the customers. hopping from an online store is no longer

restricted to a few elites and techno savvy people, as more and more customers are reali9ing the

benefits of online shopping. 1rom books to electronic gadgets, garments to food items, customers

can purchase anything under the sun from the comfort of their homes and offices.

ome of the advantages that our customer will get through 0o+ are,

Trust Factor ome customers have always been wary about paying for a product of

service without actually getting in then and there. The fact that many customers fell

victims to online scams worsened the situation. The 0ash on +elivery concept allows the

customers to make the payment only when the product or the services is delivered to

them. This increases the trust factor between the customers and the businesses resulting

in more sales and revenue for the online store. The entire transaction remains transparent

between both the parties under this model.

Easier Transaction Model In "angladesh most online stores depended on 0redit

0ards and Internet "anking for payments and transitions. erving customers using these

payment methods was easy in the developed countries, but in developing countries, many

customers didn8t have access to any electronic means of payment. This is the case in

"angladesh. 0ash on +elivery has brought this category of customers into the purview of

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Ecommerce. Thus, increasing the market si9e and penetration for the online stores

substantially.

Quality Improvement The customers pay only when they receive the product and are

satisfied with its quality. They have the right to refuse poor quality products. This hasensured that online stores need to sell high quality products to the customers resulting in

better quality and customer satisfaction.

Leal !id


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%) "eisterin a domain name# Then it has to be registered. +omain names are

acquired through authori9ed domain name registrars. ll registrars have access to the

same list of reserve names, but they may have different fee structures.

c) Findin a (e% host# !e have to develop the website. 1or business transactionsinvolving payment by customers, then a hosting package that includes space on a

secured server is usable. ecured servers are servers that contain additional layers of

encryption to protect the identity of the individual and the data that is being transacted

from unauthori9ed access.

d) (e% desin# fter that we have to arrange web developers to design the website.

There are also web designers who design web sites for a fee.

Examples of host and design websites in "angladesh are,

www.web.com.bd

www.websitedesignbangladesh.com

e) Financial transactions on the (e%# In addition to having access to a secured server,

we will need to design a transactions page that collects the customer8s financial

information, transmits it to a service that can verify the transaction, and stores thedata in our files. The unique feature of the website will be a very user friendly search

engine for the visitors along with multiple categorical options. In addition there will

be places for advertisement where we can put other multimedia flash advertisements

with a payment.

) Lin&in the site# !e have to link the site with other, already recogni9ed sites

increases the chances of being found by both our prospects and by the search engines.

0reating a website needs a ystems +evelopment ife 0ycle. 1ive ma%or steps in the ystems

+evelopment ife 0ycle areB

1) *ystems analysis+plannin

#) *ystems desin

,) -uildin the system

H
http://www.web.com.bd/http://www.websitedesignbangladesh.com/http://www.web.com.bd/http://www.websitedesignbangladesh.com/


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.) Testin

/) Implementation

SYSTEMS DEVELOPMENT CYCLE

LOGICAL DESIGN FOR THE ONLINE SHOPPING WEBSITE

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PHYSICAL DESIGN FOR THE ONLINE SHOPPING WEBSITE

COMPONENTS OF A WEBSITE BUDGET

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INDUSTRY ANALYSIS

1) Competition

0ompetition always makes a business more challenging. 0ompetition motivates and sometimes

compels a business to perform better and better. The most important thing is to identify the

competitors and their natures. In our business we do have related competitors but some business

is flourishing now#a#days in this area. Our competitors are some web based online shopping

business in our country.

There are some websites which provide online shopping option in "angladesh but neither

delivers the products ordered nor offer return policy. ather they charge high cost and are not up

to date with the price and products of the market. They rarely modify the products and prices of

day to day market.

The advantages of our competitors are,

They have an earlier market entry.

2eople have more knowledge about them.

They have rather more customers than us.

!e also have some strength in contrast to them,

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Offer benefits such as 0ash on delivery, return policy etc

2rovide a wide range of products and make the search engine very user friendly.

Offer a contemporary website.

To overcome the competitor8s strengths and advantages we need to focus on time as they had an

earlier entry. !e will go for an exposing advertising to ensure the very effective entry in this

entry. If we can attract the customers by massive advertisement through social networking sites

and websites we can be assured of our business increasing.

#) Current mar&et situation

Out of =? districts, Internet services are available only in = ma%or district headquarters. "TT" is

planning to gradually roll out an I2 network up to the=? district headquarters. In anuary 5))5,

the Internet facilities were extended to 35 districts. The pro%ect is running on very fast and today

almost?) plus districts are getting Internet facilities. 1ollowings are the barriers of e#commerce

in "angladeshB

a) 4ery minimum number of users of web sites&

%) 2oor telecommunication infrastructure with limited fixed#line access, unreliable

connectivity and low bandwidth F(JA&

c) ack of technically efficient personnel&

d) imitations of supportive legal system. uch as, exchange controls, protection of

telecommunication monopolies, restrictive trade practice and prohibitions&

e) 2eople7s mindset is not very open to online shopping.

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OPERATIONAL PLAN

1) -usiness oals

*hort term oals

aA 2rovide efficient service with good price

bA atisfy consumer needs with variety of products.

cA /ake sure every transaction is fulfilled successfully from ordering to delivering.

Lon term oals

aA Increase sales by 6) percent in 35 months&

bA Improve profits by 3@ percent within two years.

cA Increase the variety and number of products with every passing year.

dA Expand the business with each increasing year.

#) "esource re0uirements

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a) Capital investments

Preliminary investment' 2reliminary capital of around Tk. =))

thousand shall be contributed.

Loans and %orro$in: mount up to Tk. ?)) thousand can be

borrowed from bank.

Land and -uildin# n office with H)) square feet will be enough for

primary operations. The office building can be either be rented or

bought.

tilities' Electricity and power cost should get emphasis which will be

around Tk. =))) per month.

Miscellaneous !ssets# Other items like office furniture, working

tables in the office, exhaust fans, storage racks and bins etc. are likely

to cost Tk. ?),)))C#.

%) Personnel re0uirement

There should be appointed efficient data entry officers who are expert in technical knowledge of

computers and internet. There should be reliable field workers for delivering the products.

,) E2ternal resource or %usiness e2pansion

In case of business expansion we will have to collect resource from external means.

.) Products

!e will primarily start with two types of products

a) Electronics: Television, computers, mobile phone, air conditioner, laptops,

cameras, watches, water purifiers, kitchen appliances etc.

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%) 3roceries:ice, flour, oil, seasonal fruits etc.

/) Implementation

aA 4rder: !e plan to make contract with the companies with related products for

five years to supply us with the asked products when they are ordered by our

customers. !hen customers will order products through our websites it will be

added in our shopping cart software. If they want to take collect on delivery

system then they will have to give their address, number. They can also pay

through credit cards. fter getting the selling price we will payback the

company with related products.

bA 5elivery: !e plan to deliver in two ways, either by cash on delivery or by

credit card within 6 days. !e will also offer 6 days return policy.

cA -illin: !e will bill the product at their market price and will add minor

commissions for delivering.

dA Customer service: !e plan to provide utmost customer service with our

transactions. Our foremost concern would be the satisfaction of customers.

6) "is& !ssessment

reas of risk are

a) 5emand: !hether the fluctuation of demand of customers be satisfactory or

not.

%) *upply: !hether the supply and delivery of products be in proper time and

please the customer or not.

c) Technoloy: Ket the help from the latest technology and using it in minimum

cost.

d) *ecurity: To address proper security system to protect the website from

unwanted hacking and cyber crime.

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e) Economical: !hether the resources are providing good value or not.

) Implementation: !hether the plan is implemented by right or wrong people.

!ays for addressing risks are

a) "educe ris&:!e can get through the demand risk by ensuring quality and

reduced tariff for the advertisers.

%) *pread the ris&s# isks can be spread among related entrepreneurs

c) Plan -# If risks can not be diminished by multiple attempts rather increases then

we will turn our product shopping website into service related website.

4rani7ation *tructure

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MARKETING PLAN

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Mar&et potential: /arket potentiality means the estimated maximum total sales revenue of

our products in the market during a certain period. 1or determining the market potential of our

service we first need to identify who are our target markets and then future prospect.

!e will serve the people who are from mid income level. !e do not have any geographical

barrier as it is a web based business. "ut we can state it in a different way. Our geographical

expansion will be like that we will be covering areas beyond +haka i.e. other divisions

F0hittagong, "arisal, Jhulna, a%shahi, ylhet, angpurA

Taret mar&ets: !e are targeting two distinct groups of customers, individuals and

corporate customersB

Individuals# The individuals are people who are looking to give a friend, relative a gift or trying

to satisfy his needs. These customers typically do not have the expertise in recogni9ing the

peaches among the mixture of lemons and peaches nor the time to bargain over the products in

the market. Individuals aging 3=#6@ are our main concern for electronic products.

Corporate# The corporate customer typically buys electronic products in a large scale from the

manufacturer or from the direct distributor at a lower rate. !e will provide same product at the

same rate as the direct distributor does. /oreover we can supply the necessary grocery in case of

special event Fe.g. picnicA

Mar&et si7e: The rapid growth of digital technology is fundamentally changing the world as

we know it. Our business is fully web based and so the number of internet users determines the

potential market si9e of our product. The internet subscriber base in "angladesh Fexcluding

mobileA currently stands at %ust over 3.@ million F"T0, 1eb 5)35A. $owever, total desktop

internet users in "angladesh is actually far greater than that number, likely driven by heavy

usage in offices, internet cafes and multiple users accessing the internet from a single household.

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ocal industry estimates suggest that in 5)33 access to the web was closer to H million users,

having grown 6))* since 5)3) and expected grow a further @))* by 5)5) F"0K, 5)3)A.

1actors that will affect the potential market si9e

Culture

Environment

"eulation

Economy

Industry practice

5emoraphy

Trends

Inrastructure

Mar&et *tratey: The marketing strategy will first seek to create customer awareness

regarding the products offered, grow the customer base, and work toward building customer

loyalty and referrals. The long#range goal is to not only dominate the online store business, butto create an icon brand. Initially we willB

Engage in !eb#based marketing for the next year to generate awareness of the website

and product information. "ecause Internet#based advertising has declined in recent

quarters, the prices for advertising have consequently significantly dropped making the

expenditure more cost effective.


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i. Electronic products Flaptops, mobile phones, mp6 players, dvd players etcA

ii. Krocery

bA Pricin policy: 2roduct pricing is based on offering high value to our customers compared

to most price points in the market. The price of our products FgroceryA will considerably be

lower from the market rate as we will collect them directly from the manufacturer. In case of

electronic products we will become business partners or direct distributors of the popular

brands so our price will be slightly lower than that is in the market. !e are intended to attract

customers to our website so the overall pricing policy will be as such that it makes our

website different from those of the prevailing web based selling stores. /oreover we will

offer better quality and selection.

1actors that influence pricing

*upply and demand

Competitive pricin

Cost and proit marin

!orda%ility

cA Product pac&ain:!e will use sophisticated packaging measures to ensure the safety

of the products FgroceryA and in case of electronic products, as the products are already

packed by the manufacturer, we will %ust use a sticker containing the identity of our website.

dA 5istri%ution policy: !e will distribute the products to the customers with our

responsibility. Initially we will only concentrate in distributing the products within the capital

and gradually we will expand our business to other cities.

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*ales Forecast: Our sales will be tracked using the same system that tracks our website visits

and contact requests. !e pro%ect sales of our product will remain roughly equal throughout the

first year, with both categories rising from 6)#@)k per month at the beginning of the year to G@#

3))k per month by the end of the year.

ales growth should be based on

a) Mar&et penetration

%) Mar&et e2pansion

c) E2pansion o product rane

d) 8e$ sources o revenue

Mar&et Promotion: The plans for marketing and promotional strategies areB

2opular websites Fe.g. 1acebook, KoogleLA

IT#based pages of newspaperFe.g. Onno loA

1ront pages of newspapers

Online editions of daily newspapers to reach the D"sFDon esident "angladeshisA

2ress release

1ree registrations in websites Fe.g. !eb "angladesh, KoogleA

eafletsC"anners

tickers

1/ band radio stations of "angladesh

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Mar&etin -udet:

2articulars 5)36 5)3? 5)3@ 5)3= 5)3G

dvertising 3@,@),))) 3?,G@,))) H,G@))) (,)),))) 3G,)),)))

ales 2romotion 6,G@,))) ?,5@,))) @,G@,))) @,5@,))) ?,5@,)))

+irect /arketing G@,))) 3,)),))) @),))) G@,))) G@,)))

Total 5),)),))) 5),)),))) 3@,)),))) 3@,)),))) 55,)),)))

Analysis (SWOT

1) *trenth55


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4ery effective expected advertising channel

Easy payment system

2roviding variety of products

/ain purpose is to provide better customer service rather than making profit only.

#) (ea&nesses

Earlier entry by other few related websites.

ack of technically efficient personnel.

/inimum number of users of web sites.

2oor telecommunication infrastructure with low bandwidth.

,) 4pportunities

The growing trend of using internet

The popularity of online shopping is increasing

The buying process by people without being physically present lowers their

concerns.

The time constraint of people of buying from showrooms is reduced

Do bargain hassles

.) Threats

imitations of supportive legal system.

0ybercrime exB $acking which needs adequate security system.

2eople8s mindset is still not very open towards online shopping.

ANALYSIS OF COMPETITIVENESS

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!e have analy9ed the current market situation by the five factor model of /ichael 2orter. In this

model there are five forces. "y those forces we have identified the competitiveness of the target

market. It is the renowned process all over the world to evaluate the appropriateness to enter into

a business.

Competitive "ivalry $ithin an Industry:

!ithin this market we have some strong existing competitors. uch as gora, /eena "a9ar,

Kmart, 2rince "a9ar etc. "ut as we are going to start with the necessary items we don7t have such

type of competitor. It is a stable business because it is related with day to day life. o it is

appropriate business to enter. Exit barrier is also low, so certainly it is an attractive segment

of market to choose.

Threat o 8e$ Entrants:

Threats of new entrants for a business are always true. o we have always risk of those new

entrants. 1or this business entry barrier is not very high, as a result in that sense it is an

unattractive segment. In grocery business new entrants are always available, but if we can build

ours as a brand name and gain the ma%or portion of the market share we will certainly be able to

avoid the threat of the new entrants.

Threat o *u%stitute Product:

!e are going to compete with super shops. !e have various types of readymade good, in this

field we don7t have real substitute products. Other industry such as our Krocery industry can be

substitute product. "ut as those are not our real substitute product, it is certainly an attractive

market.

Threats o -uyers 3ro$in -arainin Po$er:

Our buyers would not bargain with the price because we are offering in fixed price. s we are

starting from a fixed price it would certainly fulfill the customer demand, because customers are

always price sensitive. It is also avoidable because the switching cost of our goods would be

much high. Our product would be cheaper than that of super shops.

Threats o *uppliers 3ro$in -arainin Po$er:

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!e are going to launch a new trend of the grocery business. o the suppliers of that field are so

much concentrated and organi9ed. !e emphasi9e on collecting items from diversified groups.

!e will collect specific items from specific places. s a result our suppliers are widened in

+haka. o, low bargaining power of the suppliers makes the target market so much attractive.

BUSINESS EXECUTION

The first and foremost task before the commencement of business is licensing the business under

partnership act. !e have to set up the business with the help of capital expenditures. nd then

these will be supported by personnel to continue operation and in case of expansion we will get

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the help from the external resources. !e will continue the research on development of our

website through regular online survey participated by the customers.

!hen an operational space will be collected by means of rent or buying along with the necessary

equipment and personnel it will be right for us to start the operation. ast but not the least wehave to arrange a good web developer who is ready to develop our online shopping website for

us according to our requirements.

Expected number of consumers for a particular financial year will be estimated, after that time

periods we will compare the pro%ected and the actual number of customers. In case of material

deviations we will find out the reasons operating behind the deviations and find out what is to be

done to overcome this.

a) Evaluate whether proper marketing promotions are going on

%) 2erform a survey regarding what more customers want from us

c) !atch whether the staffs are performing their duties properly.

FINANCIAL PLAN

$ere are financial highlights for pro%ected five year

Pro Forma Income *tatement

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The following table presents the pro forma income statement for pro%ected five years.

Pro Forma -alance *heet

$ere presents pro forma balance sheet for pro%ected five years.

Pro Forma Balance Sheet:

2articular 5)36 5)3? 5)3@ 5)3= 5)3G

5G

2articular 5)36 5)3? 5)3@ 5)3= 5)3G

ales 3,)),=@,))) 3,3G,=),))) 3,6?,G@,))) 3,55,5(,))) 3,5=,)),)))

ess# 0OK =)6())) G6G3))) H6H@))) G=6G?)) G6=))))

3ross Proit .9#6999 .,;999 /9;9999 ./;1699 /#.9999

Operating Expense:

dvertising 5),)),))) 5),)),))) 3@,)),))) 3@,)),))) 55,)),)))

alary @,3=,))) @,6?,))) @@5))) =35))) =?H)))

Offices upplies @)))) @5@)) @@))) =)))) =@)))

ent ?,H),))) ?,H),))) ?,H),))) ?,H),))) ?,H),)))


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!ssets

Total 1ixed ssets 3H,5@,))) 3=,)@,))) 3=,5@,))) 3@,)6,))) 3=,?),)))

Total 0urrent ssets ?@,)),))) ?H,)),))) @3,@),))) ?(,5@,))) @),@),)))

Total Other ssets 5,5@,))) 6,5),))) 6,)),))) 6,G@,))) ?,6@,)))

Total !ssets 6/=/9=999 6


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2arameters 4alue

D24 3=,@(,H53,65

I @G.65*

2ayback 2eriod Fin yearsA @.HH

+iscounted 2ayback 2eriod Fin yearsA =.?G

"atio !nalysis:

atio 5)36 5)3? 5)3@ 5)3= 5)3G

0urrent atio @.5( ?.(5 ?.=H @.)@ ?.(6

Det working capital FTk.A 6=,@),))) 6H,5@,))) ?),@),))) 6(,@),))) ?),5@,)))

Kross 2rofit /argin ?)* 6G.)G* 6G.GH* 6G.@@* ?3.@(*

Det 2rofit /argin 3.3?* 5.(6* G.GH* @.G?* @.3)*

+ebt#equity ratio 5.H@ 5.H? 5.@H 5.G5 5.6(

+ebt#sset ratio ).G? ).G? ).G5 ).G6 ).G3

eturn on asset 5.5=* @.33* 3?.H5* 3).65* (.)3*

eturn on Equity H.G)* 3(.==* @6.)G* 6H.6(* 6).@G*

-rea& Even !nalysis:

ccounting breakeven point is the sales level that results in a 9ero pro%ect net income. In the

initial stages of new venture it is helpful for us to know the point where we can avoid loss. This

will provide us the insight into the financial potential for the start#up business. o that we will

calculate break#even by this formula,

ales, P F1ixed 0ost L 4ariable 0ost # +epreciationA N F3 Q Tax ateA

1ollowing table shows the break even sales for pro%ected five years.

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>ear 5)36 5)3? 5)3@ 5)3= 5)3G

Total 1ixed 0ost 65H6=)) 6GG6@)) 66)=))) 66GG))) ?336)))

Total 4ariable 0ost =)6())) G6G3))) H6H@))) G=6G?)) G6=))))

+epreciation 6)))) ?5))) 6G))) ?@))) @G)))

?)*Tax ate ?)* ?)* ?)* ?)* ?)*

"reak Even ales @@G@@=) ===3@)) =((5?)) =@H3=?) =H?(=))

3raphical representation: The graphical representation of the break even sales presents

below

"reak Even ales

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4ariable 0ost

1ixed 0ost

*tress !nalysis:

tress test has been done by increasing the sales by @* and decreasing direct cost by @* for the

best cost scenario and vice versa fro worst case scenario. $ere D24 is still high even in worst

case.

*tress !nalysis -ase Case -est Case (orst Ca

nits *old @* higher than normal @* lower than normal

Aaria%le Cost Per nit @* lower than normal @* higher than norm

8PA 3=,@(,H53.65 53,66,G=3.@( G,56,H@6.

Perormance !nalysis:

ales 3,)),=@,))) 3,3G,=),))) 3,6?,G@,))) 3,55,5(,))) 3,5=,)),)))

Kross 2rofit ?)5=))) ?6H())) @)()))) ?@(3=)) @5?))))

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Det 2rofit 3?H))) 6??3)) 3)?H5)) G)3G=) =?5)))

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

2013 2014 2015 2016 2017

Sales

Gross Profit

Net Profit

Appendices

Pro@ected "avenue rom *ellin:

Revenue

2articulars 5)36 5)3? 5)3@ 5)3= 5)3G

Income rom Electronics Products

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/obile 33,5@,))) 3H,?),))) 3(,?),))) 3@,6?,))) 3G,5),)))

aptop @@,@),))) =),@),))) G5,G@,))) =@,@),))) =@,G@,)))

/onitor @,5@,))) ?,G@,))) G,6@,))) ?,5@,))) @,)),)))

Television 5,5@,))) 6,G@,))) 6,@),))) 6,@),))) 6,H@,)))

Income from Others

Electronics 2roducts

G,5),))) H,@),))) H,G@,))) (,)),))) (,5@,)))

Total Income from

Electronics 2roducts

H3,?@,))) (@,(),))) 3,33,G@,))) (G,@(,))) 3,)3,)@,))

Income rom 3rocery

Products

35,)),))) 3?,@),))) 3@,H),))) 3G,@),))) 3G,G@,)))

Income rom 4ther

*ources

G,5),))) G,5),))) G,5),))) G,5),))) G,5),)))

Total Income 3,)),=@,))) 3,3G,=),))) 3,6?,G@,))) 3,55,5(,))) 3,5=,)),))

3E43"!PBIC!L P4*ITI48 4F T!"3ET M!"ET:

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The target market is +haka 0ity 0orporation area for the first @ years. The firm uses simple

distribution channel with 9one#wise dealers. The +haka city has divided into ( different 9ones

cover 3( areas. The following table shows the ( 9ones and areas under each 9oneB

Dame 0ovring reas

Rone 3 /irpur, 2allabi

Rone 5 0antonment, Jafrul

Rone 6 /ohammadpur, +hanmondi

Rone ? amna, Te%gaon

Rone @ $a9aribag, albag, Jamrangirchor

Rone = Jotowali, hutrapur

Rone G hyampur, +emra

6?


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Rone H /oti%heel, abu%bag

Rone ( Jhilgaon, "adda

I8T"E3"!TE5 M!"ETI83 C4MM8IC!TI48:

The firm uses pull strategy as its promotion mix strategy which is spending a lot on advertising

and consumer promotion to build up consumer demand. It makes the promotion mix efficient

enough to activate customers to ask for the product. $ere is a graphical view of the pull strategyB

5emand

Mar&etin activities

1irm 0ustomer

Documents

business entrepreneurship