Project Report

Project Report

On“ Business Policy and Corporate Strategy ”

By:-

YPM Inc. GroupBBA VI Semester

Under the Supervision ofMr. Abdoulie Sallah

Asst. ProfessorSchool of Business Studies, Sharda University

In Partial fulfillment of Award of Bachelor of Business Administration

Session: 2011-2012

SCHOOL OF BUSINESS STUDIESSHARDA UNIVERSITY

KNOWLEDGE PARK- II, UTTAR PRADESH, INDIA

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ACKNOWLEDGEMENT

This project report has been an eye-opener for us as it has opened

new vista of information. We are grateful to Dr.Abdoulie Sallah ; he

has helped us developing a structure of report in our mind. We were well

guided by Dr. Shalini Sharma; in absence of Dr. Abdoulie Sallah. Words

shall never be sufficient to describe our experience while doing this

project. Nor shall they ever be able to express the feeling of our

utmost gratitude towards our faculty guide Dr.Abdoulie Sallah.

This project was a struggle that was made much more difficult due

to numerous reasons mostly beyond our control.

Finally, we are very thankful to one and all who directly and

indirectly helped me in the successful completion of my project.

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D E C L A R A T I ON & CERTIFICATION

We hereby declare that the Project work entitled “Business Policy and

Corporate Strategy” submitted by YPM- Group for the BPCS Continuous

Assesment during the Bachelor of Business Administration to School of

Business Studies, Sharda University, Greater Noida is our own

original work and has not been submitted earlier either to the SBS or to

any other Institution for the fulfilment of the requirement for any course of

study.

NAME OF THE STUDENT SIGNATURE

1.Doucoure Tidiane

2.N.Sharada Prasanna

3.Puja Gupta

4.Rupesh Chandra

5.Sweta Dey

6.Rahul Bhatnagar

NAME OF THE FACULTY SIGNATURE

Mrs.Swati Bansal

Place : Date :

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CONTENTS

S.no TOPIC PAGE NO.

1. Executive Summary 5

2.

3.

4.

Introduction

Vission and Mission

Goal

Environmental Scanning

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7

9

10

5. Action and Planning 13

6. Strategic Formulation 15

7. Strategic Action Programme 17

8. HR Department 20

9.

10.

11.

12.

Marketing Department

Finance Department

Learning

Annexures

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24

30

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EXECUTIVE SUMMARY

Business education market in India is growing at a rapid rate. Currently 1,550 business schools producing over 1, 00,000 management graduates every year which is not enough to meet the growing demand for management education in India.

As a result, opportunities in management education in India are immense. Hence, business education in today’s environment plays a significant role and should prepare the students to face the challenges boldly.

The education service gap can be defined as a discrepancy between what students are taught in the classroom setting and what they experience in the field work.This is why, Prof.Abdoulie gave the Final year students an opportunity to explore their potential individually and as a team.

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INTRODUCTION

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Business Project given by Abdoulie Sir (Entreprenuel Opportunity)

Collection of funds--- 6 Partners (Rs.200/head) & From Abdoulie Sir as an investor (Rs.900). Total:Rs.2100

Idea for Business proposition- by Environmental Scanning = ETOP

Decided to start a food business- evergreen for our campus (Preferred Manufacturing rather than outsourcing)

Products: Maggi, Bread Omlett Idli sambar Bhel puri

Formulating various st rategies to operate the business and use resources optimally

Daily OCP & SWOT analysi s - Value addition to sustain competitive market

Managing and effective performance of various departments

Feedback fr om Faculties

Emerging as the maximum profit making company & gaining lot of appreciation through out the campus.

LONG TERM VISION-MISSION STATEMENT

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• VISIONTo be the most profit gaining and customer satisfying team.

• MISION• To be a respected as a team

fostering practical learning spirit, academic and professional excellence, and innovation.

• Developing a culture that strongly promotes innovation and continued betterment in all facets of project duration.

Vision

The promoters' vision of YAMLA PAGLA MAGGI in one week is:

YPM Inc will be operating infront of SBS between SDS and SET. It will be profitable and have weekly sales of Rs………... ,YPM Inc will employ 6 people mainly engaged in the required daily activities of YPM having knowledge in different department such as marketing, Finance, IB and HR. YPM will offer MAGGI as core products and provide added-value services to its customers i.e Cold drinks. YPMs’ offerings will be advanced with clear goal and offer many clear-cut advantages and improvements over competitors' possible offerings.

Mission Statement

The central purpose and role of YPGInc is defined as:

YPG markets and sale Maggi to its prospective customer such as Students and Faculties in Sharda UniversityCampus. YPMoperations are distinguished from competition by its sophisticated timing and way of targeting its customers.Sales are made directly through major central distributor of YPM located in front of SBS in Sharda University.

Business Objectives

Short term business objectives of YPM Inc are summarized as:

To expand the business aggressively and offer above-average returns to shareholder (Tidiane ,Rupesh, Puja , Sharada, Sweta) and return the investor’s money which is at least 75% of the total fund raised for the Business operation from the investors market (Dr AbdoulieSallah).

To become the leading, innovative systems company in theUniversity premises and among competitors.

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Major Goals

The following key targets will be achieved by YPMInc over the one Week time:

Achieve sales of Rs…………… by the end of the week Report weekly profits of Rs……………….. Secure 80% of the targeted market segment by the end of the week Become largest seller of Maggi and lays in the campus within a Week

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ENVIRONMENTAL SCANNING

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Environmental Scanning

Defined:

Knowing and predicting the trends, events and the relationship in Sharda University’s internal Environment and using the information we got and using them to plan YPM’s operation and future course of action.

Why the Environmental scanning?

In other to Systematically strategies the decision making process and forecast the future of YPM. We had to grasp the interrelated and dynamic environment that impact the pocket of the people within Sharda University.

Objectives : Trend Projections Opportunities Threats

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Environmental Factor: Within Consortium

Strengths: Consortium characteristics that allow it to take advantage of opportunities (or reduce the impact of barriers) regarding this environmental factor.

More than Five thousand (5000) students Large number of eligible and ready to buy

consumers Mixed consumer targeting Average daily money spend by a student or

faculty is more than or equal to Rs 40 First Mover Opportunity More Gen-Y consumers ( they like ready

made ,fast consumer goods such as Maggi, Cold drinks , Facebooking etc…)

Weaknesses: Consortium characteristics that could stand in the way of its members taking advantage of opportunities (or reducing the impact of barriers) regarding this environmental factor.

No specific Area to setup the Business No rules and guidelines as to where the

Business are to be set up Not all targeted customers might buy the

offered product Competitive Environment No safe place to keep the inventories

External to Consortium

Opportunities: Factors external to the consortium/area that allow it to take action regarding this environmental factor.

Access to the Market Hand in Hand with direct suppliers Easy Transportation Cheap commodities Ad on Facebook

Threats: Factors external to the consortium/area that stand in the way of taking action regarding this environmental factor.

Time Gap Hike in transportation Competitors bringing in More skilled

professionals

Environmental Scanning Action Planning

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1. After a thorough brainstorming and discussion among the group memebers ,we have decided to come out with products that are mostly consumed by the all kind of customers daily whether in the streets or restaurants and are cheap to afford.So we came out with MAGGI , COLD DRINKS(PEPSI, MRINDA,LIMCA etc..), IDLI, VADA, these were the initial product we decided to offer.After Making these decision we thought of giving A name to the company were everybody suggested some names and looking at the taste of the consumers that dominate the market size (students) we have decided to come out with a name that is more Gen-Y oriented and funny to say and on the course YAMLA PAGLA DIWANA which is a Bollywood movie liked by many students and faculties and everybody talked about it ,and the name alone makes someone lough ,so we agreed to choose the first two words and add MAGGI as the third as the company’s name (YAMLA PAGLA MAGGI).

2. We had 1 week time to accomplish the Business project

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3. Issues that had to be addresses before we start the activities were to:

Get some Documents signed to get the Location to set up Our Business

To acquire 75% of working capital from the University To assess what other competitors were about to do We Acted as First Movers By capturing the most attractive and

easy accessible location in the campus

4.The internal and external factors that impacted our ability to carry out this activity.

STRATEGIC FORMULATION

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Internal Factors

Strengths

We had a team that believes in each other We believed in our Mission ,Vision ,Objective and Goals Solidarity and focused-minded members Pro-active

Weaknesses

Level of commitment by some members was very less

External Factors

Opportunities

We had members who know many of the key people from who we could easily get the required inputs without spending much.

Threats

We didn’t know what our competitors were planning to do which could hamper our Business

Strengths, Weaknesses, Threats & Opportunities

This strategic plan addresses the following key strengths, weaknesses, threats and opportunities for YamlaPagla Maggi (YPM):

Strengths: Weaknesses:

Strong Organic Team Students and faculties are more

in number Initial product can evolve into

only two ranges of offerings (Maggi, lays)

Located in front of SBS centre of the whole University.

Very focused team

dependent on borrowings - Insufficient cash resources

very little Time boundary (1 week)

Absence of strong sales/marketing expertise

Only two persons operates the company at a time per day except the weekend

Transportation cost of the basic materials/resources used for cooking such as: cooking Gas, kitchen utensils.

Threats: Opportunities: Other students may enter

targeted market segment Diefferent strategies may make

drag our sales down Season (winter) may slowdown

or could reduce demand Variation in the value of the

commodities we will be using may become price sensitive

Market segment is poised for rapid growth (as we pre-informed some faculties and students)

Maggi business offer great potential specially from the students point of view

The geographical location of the distribution center is located at the center of the targeted market

Corporate Values

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The corporate values governing YPM development will include the following:

YamlaPagla Maggi operates in accordance with the standards in all relationships with customers, suppliers and the University Environment by providing them meals such as snacks, Maggi and cold drink.

Business Objectives

Short term business objectives of YPM Inc are summarized as:

To expand the business aggressively and offer above-average returns to shareholder (Tidiane ,Rupesh, Puja , Sharada, Sweta, Akshay) and return the investor’s money which is supposed to be 75% of the total fund raised for the Business operation from the investors market (DrAbdoulieSallah).

To become the leading, innovative systems company in the University premises and among competitors.

Key Strategies

The following critical strategies will be pursued by YPM Inc:

1. Accelerate product launches by strengthening and starting the Business in the first day of the given starting date.

2. Raise additional capital from shareholders3. introduce share options for staff4. Appoint advisers for finance, Marketing, Operation Mnagement.

The following important strategies will also be followed:

1. Develop a flexible Business strategy.2. Merger and Acquisition if possible with other students (competitors

company)3. Ads inside the campus and promotion on the Net such as Facebook4. Seek new market segments/applications for products maybe selling

our products to the building constructors building within Sharda University.

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Major Goals

The following key targets will be achieved by YPM Inc over the one Week time:

Achieve sales of Rs…………… by the end of the week Report weekly profits of Rs……………….. Secure 80% of the targeted market segment by the end of the week Become largest seller of Maggi and lays in the campus within a Week

Strategic Action Programs

The following strategic action programs will be implemented:

We will Work as a team instead of CEO CFO etc, to avoid miss understanding of the task and responsibilities of each and every Team member.

1. Team Leader: Prepare comprehensive business plan and develop contacts to raise customers within 1 to 2 days .

2. Assigned team member: take care of the finance and other financial expenses of the company

3. All: Develop and implement accelerated market entry and development plans.

Total Capital for the Business Operation :

Each member of the Group will contribute:………………………..Rs 200/-Total Group member :…………………………………………………… 6Total : 6 X 200 =…………………………………………………...Rs 1200/-75% of the total fund will be given by the investor, which is…...... Rs 840/-Overall……………………………………………………………..Rs 2040/-

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What Should be Our Growth Objective and Strategies?

Growth objectives can range from drastic retrenchment through aggressive growth.

YPM at some point needed to revise and make decisions about the growth objectives and the fundamental strategies it will use to achieve the goals and objectives . There are forces that tend to push YPM decision-makers toward a growth stance even when a YPM was facing intense competition in the same product range with other competitors and should be trying to grow.For Example :We Didn’t have some products initially in our Menu but later on found them vulnerable and worth being part and we were sure that they will be sold and are highly in demande so we quickly push them into our product range which has led to an increase in our demand curve curve to the right and supply was limited , we did knew how to manage it and were able to do so ,to avoid bubbling attempting to make as much profit as we can with speculation , all our steps were calculated decision making .we needed to resist such temptations and select a growth strategy stance that was appropriate for YPM Inc and its situation.

Our major strategic alternatives for each of the primary growth stances were:

Stability and Growth are summarized in the following three sub-sections.

Stability Strategies

There are a number of circumstances in which the most appropriate growth stance for a company is stability, rather than growth. Often, this may be used for a relatively short period, after which further growth is planned. Such circumstances usually involve a reasonable successful company,

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combined with circumstances that either permit a period of comfortable ,suggest a pause or caution.

Pause and Then Proceed : This stability strategy alternative (essentially a timeout) may be appropriate in either of two situations:

(a) the need for an opportunity to rest, digest, and consolidate after growth or some turbulent events - before continuing a growth strategy, or (b) an uncertain or hostile environment in which it is prudent to stay in a "holding pattern" until there is change in or more clarity about the future in the environment.

Growth Strategies

All growth strategies can be classified into one of two fundamental categories:

concentration within existing industries diversification into other lines of business or industries.

This was made on the assumption that if the business become more attractive and is conducted by other competitors and it has good growth potential, and do not face serious threats diversification tends to have greater risks in short term business such as ours ,we had 1 week. So we chosed concentration strategies.There are two basic concentration strategies, vertical integration and horizontal growth.Thus producing eight major growth strategy categories.

1. Vertical Integration: YPM Inc tried to be vertically integrated since the first day of its operation , it was part of the strategy to add things bought from the suppliers to our product line ,so we avoided MAGGI Walla and cook ourselves, we avoided processed foods and cook everything on our own .

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2. Horizontal Growth: YPM Inc has also adopted this growth strategy by adding they by day new product range to its existing products

Mergers, Acquisitions, and Strategic Alliances:

This was part of our strategy as a back up strategy when the YPM business is seen intense decrease in its profit and daily transaction.

The Human Resource Department deals with management of people within the organisation. It also clarifies and sets day to day goals for the organisation. It is responsible for organisation of people in the entire Company and plans for future ventures and objectives involving people in the Company. Research has shown that the human aspect of resources within an organisation contributes approximately 80% of the organisation’s value. This implies that if people are not managed properly, the organisation faces a serious chance of falling apart. The Human Resource Department’s main objective is to bring out the best in their employees and thus contribute to the success of the Company.

Distribution of Responsibilities

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Marketing Department

Marketing is defined by the AMA as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the customer as the focus of its activities, marketing management is one of the major components of business management.The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions.

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MARKETING TECHNIQUES ADOPTED BY YPM INC.

YPM

Rupesh

Chef

Preparing

Maggi,Bread-omlett

Tidiane

Cash Counter

Billing and

collecting

payments

Puja

Finance

HeadDail

y cash mgt

& generating

financial stateme

nt

Serving

Sharada

Supply

Bringing Idli-sambar,Cold drinks, and othe

r raw material

s

Serving

Sweta

Marketing

Delivery

DeptOrder

taking

and delivering the eatables

POSTERS -Displayed through-out the campus ADVERTIZING ON

SOCIAL NETWORKING SITES(SNS)

-On Facebook,Twitter and Orkut

DIRECT MARKETING

-Informing directly

SMSs & E-MAILS -To all possible students in contact

Poster Ad:

. JUST FOR A WEEK

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NOTE: Additionally Word-of-mouth also was an aid to increase our sales as many people who tasted food at our counter, recommended several others to try.

ATTRACTIVE PRICES & SPECIAL OFFERS

OFFERINGS: MAGGI COMBO SOUTH INDIAN COMBO And Many More

HURRY!!

LOCATION : infront of sbs buildingFor queries contact : RUPESH CHANDRA 8447469036

Ads on Social Network:

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ONLY FOR A WEEK:

30th January(Monday) to

Sponsored by : YPM Inc.

FINANCE DEPARTMENT Financial Management can be defined as:

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The management of the finances of a business / organisation in order to achieve financial objectivesTaking a commercial business as the most common organisational structure, the key objectives of financial management would be to:

• Create wealth for the business• Generate cash, and• Provide an adequate return on investment bearing in mind the risks that the business is taking and the resources invested

The key elements to the process of our financial management are:

(1) Financial PlanningTeam need to ensure that enough funding is available at the right time to meet the needs of the business. In the short term, funding may be needed to invest in raw materials, and fund sales made on credit. In the medium and long term, funding may be required for significant additions to the productive capacity of the business or to make value addition.

(2) Financial ControlFinancial control is a critically important activity to help the business ensure that the business is meeting its objectives. Financial control addresses questions such as:• Are assets being used efficiently?• Are the businesses assets secure?• Does the team act in the best interest of shareholders and in accordance with business rules?

(3) Financial Decision-makingThe key aspects of financial decision-making relate to investment,& financing:• Investments must be financed in some way – however there are always financing alternatives that can be considered. For example it is possible to raise finance from selling new value added products.• A key financing decision is whether profits earned by the business should be retained rather than distributed to shareholders. If distributions are too high, the business may be starved of funding to reinvest in growing revenues and profits further.

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BALANCE SHEET OF YAMLA PAGLA MAGGIE

LiabilitiesAmount

(Rs) AssetsAmount

(Rs)Expenses Incurred By Each Member

Contribution By Each Member (200X6) 1200

SHARDA Abdouli's Investment (75% of 1200) 900

Tomato Ketchup 115 TOTAL 2100

Forks 20 Difference to be contributed (420/6=70) 420

Spoons 30 Tissues 10 Glasses 70 Bowls 80 Plates 120 Dustbin Packets (1 packet) 15 Colddrinks (8 bottles of 2 litres each) 389 Gas Cylinder 390 Centafresh 160 Delivery packets 60 1459

Less : Sharda suppose to give Puja Rs 200 as her contribution -200

TOTAL 1259 RUPESH CNG 600 TIDIANE Petrol 100 Maggie 110 210 SWETA Gas Cylinder 450 Expenses with no cost Printout of Pamphlets 0 Cardboards 0 Vessels 0 Stamps 0 0

GRAND TOTAL (round off figure) 2520 GRAND TOTAL 2520

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30-Jan-12

Labor Cost Total Revenue Earned 2900

Idli (23 plates X 13) 305

less: Rs 350 which was suppose to be contributed (Rahul hasn't given yet) 350

Wada (9 plates X 20 180 485 TOTAL 2550Expenditure Incured in buying raw material SHARDA (inclusing Rs. 200 for bhelpuri) 915 Colddrinks (10 bottles of 2 litres each) 400 Chat Masala 40 Delivery Packets 60 Forks 20 Glasses 70 Plates for bhelpuri 35 Onion, Tomato 50 Stamp pad 30 Bhelpuri material 200 RUPESH 500 Maggie (210) 210 Eggs (220) 220 Breads (30) 30 Mirch dhaniya (10) 10 Refined Oil (20) 30

TOTAL 1900

Balance to be carried forward as on 31 January [2550-(1900)] 650 2550 2550

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31-Jan-12

Labor Cost

Balance brought down as on 31 Jan 650


ADD: Amount given by members back to YPM after buying raw material

Expenditure incured in buying raw material Rupesh 10Rupesh TOTAL 660

Maggie 210

ADD: Revenue earned on 31 January 2012 3500

Sharda 1060 bhelpuri material 250 delivery packets 65 centafresh box 165 Tissue 10 Spoons 25 Colddrinks (12 bottles) 480 Bhelpudi plates 25 Maggie bowls 40

TOTAL 1690

Balance to be carried forward as on 1 Feb [4160-

1690] 2470 4160 4160

1 FEBRAURY 2012

Labor Cost Balance brought

down 2470

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ADD: Revenue earned as on 1 Feb 3645

Expenditure incurred in buying raw material Rupesh Maggie 210 Sharda 840 Bhelpudi material 195 Colddrinks 480 Delivery packets 30 Vegetables 55 Sticks 30 Glasses 50 Other Expenses transportation 100

TOTAL 1605

Balance to be carried forward as on 2 Feb [6115-

1575] 4510 6115 6115

2 FEBRAURY 2012

Labor cost Balance brought

down 4510


ADD: Revenue earned as on 2 Feb 32707

Other Expenses Sharda 23 Sweta 50 Tidiane 60 Rupesh 70 203 580

NET PROFIT 7200 7780 7780

Analyses of Financial Statement

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1 DAY 2 DAY 3 DAY 4 DAY 5 DAY0

500

1000

1500

2000

2500

3000

0

650

18102070

2650

Chart Title

Distribution of Profit among Members of YPM Inc.

Days PARTNERS

Rupesh Puja Sharda Tidiane SwetaRahul (Silent

Partner)MONDAY 360 360 360 360 360 0

TUESDAY 360 360 360 360 360 0

WEDNESDAY 450 450 450 0 450 0

THURSDAY 450 450 450 0 450 0

TOTAL 1620 1620 1620 720 1620 0

LEARNING

We got a taste of imperial business experience.

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Increases at an Increasing Rate

Increase at a Decreasing Rate

We understood the concepts like: Consumer Buying Behaviour; Consumer Mind set; Value addition in products offered; Dynamism; and Gaining competition advantage through strategy formulation;

and Consumer satisfaction.

We learned how to work in a team.

Project allowed us to understand team dynamics.

It has also helped us to learn how o allocate the resources.

It has helped us to understand the concept of optimization.

It helped us to learn the role of evaluation and control in business operation through finding deficiencies and taking a corrective measures.

We understood how porter’s five forces influences the decision making process in a business.

We learned : Segmenting; Positioning; and Targeting

To conclude, the whole business project was an eye opener to understand the differences between theoretical and practical aspects of doing a business with emerging strengths, weaknesses, threats and opportunities.

AnnexuresBusiness Photographs

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FEEDBACK FORMS

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