shahzad final project

8/7/2019 shahzad final project

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0300-7289707 [email protected]

Submitted to:

Sir.Haroon Rashid

Submitted by:

Shahzad Azeem (G.L) 042

Bilal Ibrahim 068

M. Waqas 050

Shahzad Younis 060

Wajahat Hussain 096

Hafiz Zafar 099

MBA (B4)-B

COMSATS Institute of Information Technology Sahiwal.

Comsats Road, off GT road Sahiwal

Table of Contents

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1. Statement of Confidentiality............................................................................................3

2. Executive Summary.........................................................................................................4

3. History of embroidery......................................................................................................5

4. Introduction .....................................................................................................................6

4.1 Vision Statement:.......................................................................................................6

4.2 Mission Statement......................................................................................................6

4.3 Companys Slogan:....................................................................................................65. Company Profile .........................................................................................................7

6. Brief Profile of Entrepreneurs ........................................................................................7

7. Marketing Plan.................................................................................................................8

7.1 Competitive Analysis.................................................................................................9

7.2 Marketing Mix.........................................................................................................10

7.3 Market Segmentation...............................................................................................11

7.4 Controls...................................................................................................................138. Organizational Plan.......................................................................................................13

8.1 Form of ownership..................................................................................................13

8.2 Identification of partners.........................................................................................13

8.3 Management Team...................................................................................................14

8.4 Human Resource Required......................................................................................148.5 Contingency Plan.....................................................................................................15

9. Operational plan.............................................................................................................15

9.1 Description of companies operation........................................................................15

9.2 Flow of orders for goods and services.....................................................................16

9.3 Technological utilization.........................................................................................1610. Financial plan...............................................................................................................17

10.1 Land and Building requirement.............................................................................17

10.2 Machines Required................................................................................................1710.3 Office Equipment...................................................................................................18

10.4 Raw Material..........................................................................................................19

10.5 Assumptions..........................................................................................................19

10.6 Pro forma Income statement..................................................................................2010.7 Pro forma balance sheet.........................................................................................20

10.8 Cash flow projection..............................................................................................21

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1. Statement of Confidentiality

We expect honesty, openness and courtesy from all colleagues in their business

dealings. This means everyone must act in an ethical way to protect the

company and its reputation. We communicate openly, directly and accurately

with the public. We will not give special treatment to any individual or institution.

Customer product and packaging information remains confidential. Confidential

business information must not be shared with others. Colleagues of the company

activates. The use of company assets must be appropriate. We expect

Colleagues to use our resources in a responsible and ethical manner.

Colleagues must not take advantage of personal opportunities that may arise

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through the use of corporate property, information or position. And at the end we

are committed to free and open competition.

If you know or have doubts of any legal violation in work-related issues of these

principles, you should report to manager so that we can take action. We will

make all proper efforts to protect the confidentiality. All members are fully agreed

on this project.

2. Executive Summary

A market exists with in Faisalabad city that we have found the opportunity of

Embroidery business. We found this opportunity through proper visits and

research of different business ventures. Our objective of embroidery business is

our growth by diversifying into unique embroideries product with fabric designing

offerings in Faisalabad and its surrounding cities markets. Our embroidery

products for the target market that includes textile firms and boutique as well.

We use different local Medias for advertising at the initial stage to create

awareness of our business and product for B2B businesses. We will manage the

administrative tasks himself and hire supervisor for checking purpose and also

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machine operators and labors. A portion of our initial startup costs will be used to

purchase inventory, office equipment, and embroidery machinery. The balance

will be used for catalog costs and initial advertising expenses. Additionally, we

project the need for additional financial commitment to finance receivables and

payroll expenses for the first 12 months of operation.

In this report we mentioned the team members and their working. We also write

about the place where we start our business and also mention our estimated

fixed cost is Rs.4800000 and some other expenses. And total variable cost is

Rs.210000 that includes different raw material and wages to be paid to labors.

3. History of embroidery

The use of embroidery to decorate clothes has been around since man began to

wear clothes. A method of decorating and embellishing clothing, embroidered

designs came about as a result of hard work and care. Embroidery as an art form

has origins that can be traced far back to the Iron Age.

This journey began when primitive man discovered that he could use thread tojoin pieces of fur to make clothes. As a natural progression, he also discovered

that the same thread could be used to make decorative patterns on the clothes.

He also used colourful beads, stones and bones to add to these decorations.

Several excellent examples of beautiful embroidery work are still surviving till

date. Samples can be found from Ancient Egypt, China, Persia, India and

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England. Each country has its own distinctive style of embroidery, which

incorporates the culture and imagery from their history and tradition.

Embroidered clothing was also considered to be a symbol of wealth. Many

scenes from history are often found embroidered onto fabric.

4. Introduction

Nirwana Embroidery (Pvt) Ltd has started its operations on first week of Feb,

2011. We deal in all fields of embroidery especially in textile work.

4.1 Vision Statement:

One that becomes the standard for others

4.2 Mission Statement

To provide uniqueness, assortment and quality standards and therefore to

establish a mark within and outside the country

4.3 Companys Slogan:

Style with Comfort

Objectives and Goals

The major outcome of strategic road-mapping and strategic planning, after

gathering all necessary information, is the setting of goals for the organization

based on its vision and mission statement.

Goals and objectives of our organization are:

Achieve maximum customers satisfaction and customers loyalty.

Provide uniqueness and style with comfort.

Capture big share in handicrafts market.

Earn revenue.

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5. Company Profile

Company Name: Nirwana Embroidey (pvt) Ltd.

Business Type: Manufacturers/ Distributor

Main Markets: Pakistan (Punjab)

Number of Employees:

Year Established: 2011

Address: Manufacturing Unit: Sahianwala interchange road 266 RB

Khurrianwala, Faisalabad.

Contact (Unit): UAN: 111-333-444

FAX: 0414-361401

URL: www. nirwana.com

6. Brief Profile of Entrepreneurs

Our management consists of six members and we are going to take initiative of

starting a new venture of Embroidery. We have distributed the management

responsibilities among the group members. The management responsibilities are

assigned to the group members according to the following structure:

Name: Mr. Shahzad Azeem

Designation: CEO

Area of Interest/Skills: 1 year experience as a Quality

Auditor in Bismillah textile (pvt)

Ltd.

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Name: Mr. Bilal Ibrahim

Designation: Production/Opertional Manager

Area of Interest/Skills: Fresh

Name: Mr. Waqas

Designation: Marketing Manager


Name: Mr. Wajahat Hussain

Designation: Finance Manager


Name: Mr. Shahzad Younus

Designation: H.R Manager


Name: Mr. Hafiz Zafar

Designation: Unit ManagerArea of Interest/Skills: Fresh

7. Marketing Plan

Product Description

The nature of our business is to manufacturing of embroidery items such as

home textile Embroidery, Knitting, Ribbon embroidery and shell adornment etc

and takes order from different organizations. Currently we are manufacturing only

home textile items and boutiques as well.

The proposed product range includes only home textile and boutique clothes

work items manufactured locally dominates the sales in the local markets as well

as very large quantities are being exported. As regards the imported embroidery

items, they have a small share in the local market, the reason being availability of

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cheap embroiders in the market. The proposed unit is capable of producing

quality products, which can be sold in the local as well as foreign markets.

Our Comparative Advantage

By the grace of ALLAH we are making difference for our valued customers by

giving them new innovations, quality satisfaction, in time delivery, competitive

prices, fair commitment, honest dealing and absolutely world class products. No

quantity restrictions for big or small orders you can order goods as per your

convenience. Favorable payment terms as per your convenience and choice.

Very competitive prices for each article 100% in time delivery assurance at your

given destinations. Our Products quality is guaranteed and 100% comparable

with other high brand names. Our Products are 100% free of child labor under

strict monitoring of ILO teams. For good quality orders more attractive discounted

rated for almost all articles.

7.1 Competitive Analysis

7.1.1 The Core of Our Business

The core of our business is to open a unit to trap the market of that area because

it is very profitable business. This unit is a starting point towards the achievement

of our organizational goals.

7.1.2 Players/competition

At the present situation we find the following players at the local level which are

operating in the market.

Needle craft

Madani

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The reason of opening our unit in this area is that we are currently focusing on

those organizations which have no embroidery units in that market.

7.2.4 Promotion/ Promotional tools

The promotion strategies would be:

Word of mouth strategy

Features of our product

Advertisement through electronic and print media

Commission to the selling agent

Within the city, we offer the free home delivery

For our special customers who purchase bulk quantity, we offer discount

of some % on sale

7.3 Market Segmentation

7.3.1 Target Customers

Following are the target customers for a commercial embroidery unit:

Small & medium scale garments manufacturers who dont have their own

embroidery

units and are dependent on commercial embroidery units for their

garments.

Commercial exporters of embroidered garments who outsource their

embroidery requirements to commercial embroidery units.

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7.3.2 Value Proposition

Our products shall satisfy the need of customers to be prominent in company

other. We want to position our product in such a way that along with our name

style and color should come in the mind of customers. Coming with different and

unique styles shall do all this. Not only regular style shall be the focus but also

out of routine designs shall be introduced to attract the mind of the customers.

7.3.3 Development Status

Types of both designs style shall be kept on changing. So that not only existing

and potential customer shall be attract. As for as the conversion of business

ideas is concerned in our view it should be revised over time. Especially in

manufacturing you need to come with change to compete in market. If any

organization fails to do all this then even its tangible form can be converted in

intangible form.

So the development status of our product shall be in the following steps

Developing a good range of designs

Developing an image in customers mind Developing a good atmosphere of work.

7.3.4 Plan to Keep Customers

Customers loyalty is only because of the reason that weather or not our product

satisfies him/ her. If our product is fulfilling the desires of customers then they will

automatically becomes loyal. As soon as our product loses slandered of

customers mind his loyalty level shall go down.

To make the customers loyal we are making following point needs to be focused

especially:

Surveys shall be committed to know desires of customers.

Quality shall be provided as best as possible

Design should be according to wishes of customers

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7.4 Controls

We are six members, these will work together. Finance, Marketing and Human

Resource will be under our own control. We will also control over our

management team. One unit manager will be control over the subordinates. His

subordinates have to make control over the deals on designs, fabric problem and

office work etc. They have to report to their unit manager and unit manager will

be answerable to us. Unit manager will consult with one of us according to the

issue.

8. Organizational Plan

8.1 Form of ownership

Mainly this business will be run under partnership and all the authorities, duties

and responsibilities will be mentioned under the partnership deed. Moreover this

will be registered partnership and people will have the trust on the business on

the behalf of registration.

8.2 Identification of partners

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Shahzad Azeem

CEO

Muhammad WaqasMarketing Manager

Wajahat Hussain

Finance Manager

Shahzad Younis

HR Manager

Hafiz Zafar

Unit Manager

Bilal Ibrahim

Operations

Manager


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8.3 Management Team

Management team will be consisting of 6 members. The top authority will be

CEO who will manage all the functions of the business and overlook the day to

day authority and all the other members will repot to CEO. CEO will have the

authority to conduct the meeting at any point of time by giving a notice to other

members and he will conduct meetings with outside people. The main task of the

business will be conducted by marketing manager. As this business is depend on

the marketing efforts. Moreover the marketing manager will overlook the

marketing personnel and day to day deals. Finance manager will overlook the

cash flow and he will manage the commission ratio. Moreover on at the time of

expansion he will be the key person to provide the company with finance and

maintain the books of accounts. As far as the Human Resource Manager is

concerned, currently the role of HR manager will be not a key but at the time of

expansion he will be the key. He will provide the company with valuable HR

strategies such as planning, recruiting, compensation and appraisal. Operation

manager will operate all the activities. He will perform all the activities in a

manner that the cost will incur to operation will be minimum. And finally the unit

manager check and balance on the employees during the working hours.

8.4 Human Resource Required

The under employees are required for start the business:

Position Required Monthly

salary

Annual salary

Designer/Tracer 2 12000 288000

Computer

Operator

2 9000 216000

Supervisor 2 10000 240000

Machine Operator 2 8000 192000

Helper 2 8000 192000

Guard 2 8000 192000

Total 16 58000 1320000

Working Time

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Working time estimates are given in the following table:

Description Time

Per day working 22 hours (in 2 shifts)

Per month working 25 days (excluding holidays) (550hours)

Per annum

working

300 days (6600 hours)

8.5 Contingency Plan

For every business there are risks of loss involved. For this business there are

certain risks are involved. For sustainability in the market businesses try to use

proactive approach and they make some contingency plans. For our business

risks are involved and for contingency plan we have decided to change our

business model and operation style in order to cut down operating cost and do

business in other manners. As far as the theme of the business is concerned that

will be remain the same the only change that will be bring about, we will put more

deals in a day in place of previous style of business that caters only one deal a

day. And in contingency plan multiple deals will be placed for more than one day.

9. Operational plan

9.1 Description of companies operation

A method for using an embroidery production system in a factory having a

plurality of 21-head embroidery sewing machines, comprising the steps of: using

a number and layout determining device to determine the number and layout of

21-head embroidery sewing machines to be used in producing an item based on

the type of item, the production volume for the item, the size of the factory floor;

determining the more profitable production pattern between a pattern of

operating each 21-head embroidery sewing machine by repeatedly embroidering

an 21 type of item and a pattern of operating each 21-head embroidery sewing

machine by embroidering different types of items, said step of determining the

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more profitable production pattern taking into account a necessary production

volume for said 21 type of item and a due date for completion of said necessary

production volume; using a production planning device to make a production plan

for operating each 21-head embroidery sewing machine based on the

determined more profitable pattern.

9.2 Flow of orders for goods and services

Raw material will be provided by the customer on his choice. We will produce our

product according to the customers demand and after completing the product this

customize product will be given to the customers.

9.3 Technological utilization

Our company will use 21-head computerize machine to produce our products.

This 21- head computerize machine. Company will use 21-head commercial

embroidery machines built to highest construction standards and designed with

the small to medium sized embroidery business in mind. Get the best value from

a wide range of machines with the best 5 year limited warranty in the industry.

The specialty embroidery machine line gives any business an opportunity to

expand with machines that allow the opportunity to embroider on larger surfaces

as well as specialty items such as quilts and pillows.

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10. Financial plan

10.1 Land and Building requirement

Covered area

Type Description Covered area (sq.

feet)

Large hall For installation of machinery 1000

Store For storing raw material 500

Designing room For designing and other related

issues

200

Office Official work 200

Wash room 50

Total covered

area

1950

10.2 Machines Required

Commercial embroidery unit can be started by using any number of machines

but combinations of two machines will be more economical and viable for the

business.

Machines Available in the Market

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Different kinds of machines are available in the market of different countries like

Japan, Korea and China. The difference of these countries machines is quality

and price which matters a lot. For this business we will import embroidery

machines from Japan which cost is Rs.2 million. The Japanese and Korean

machines are more expensive relative to Chinese machine. The names of

machines and their countries are as follows.

Tajima (Japanese)

Happy HMF (Japanese)

SWF (Korean)

Eagle Wheel (Chinese)

Diamond (Chinese)

Technical details of Japanese machine (Tajima)

The technical details of Japanese machines are following:

Estimated price per machine Rs. 2,000,000

Electricity phase 3 phase

Temperature required 25-28 c

Note: The depreciation will be charged 5% per annum and we will use the

straight line method. The estimated life of machine will be 20 years.

ProductionThe production details of embroidery machine as follows:

Average stitches per head 5,000 stitches in per minute

Average stitches per head per hour 30,000 per hour

Total stitches per hour 600,000

10.3 Office Equipment

Office equipment required as following:

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Note: Depreciation will be charged on Equipments @ 20% under straight line

method.

10.4 Raw Material

Raw materials provide us by following suppliers:

Accessories such as buttons, laces, zippers, elastics, threads, needles,

embroidery threads, glasses, etc. will be procured from the local market at

competitive rates.

Required raw material and their approximate costs as follows:

Cost of thread per 1000 stitches Rs.0.20

Cost of fusing paper per 1000 stitches Rs.0.07

Total cost per 1000 stitches Rs.0.27

Utilities Requirements

Electricity

Telephone

Fax

10.5 Assumptions

The amount of required capital which will be contributed by the partners is

Rs.5000,000. approximately Rs. 400,0000 is required for the purchasing of

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Item Required Cost (Rs.)

Computer 3 60,000

Printer 1 10,000

Designing software 1 6,000

Electrical appliance 10,000

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machines and the remaining amount will be used for purchasing of raw material

and for the purpose of day to day operations.

The rent of office and manufacturing plant will be increased 10% per annum.

Administrative cost will be increased 7% per annum.

Depreciation will be charged 5% on machines.

Depreciation will be charged 20% on equipments

All partners will bring Rs.800,000 capital in business.

There will be no borrowing from any relative or friend because we have to pay

interest on it.

The amount of rent will be paid in advance for whole year.

50% of the net profit will be distributed among five partners and the remaining

amount for the purpose of reinvesting in business to expand it.

10.6 Pro forma Income statement

This income statement is for the month in which the profit is generated. That

means this is the anticipated income statement after breakeven point.

Nirwana Embroidery (pvt) Ltd.

IncomeStatement

For the month of June 30, 2011

Revenue Rs. 450,000

Less: Cost Rs. 170,000

Gross profit Rs. 280,000

Less: Operating cost Rs. 75,000

Net profit Rs. 205,000

10.7 Pro forma balance sheet

Nirwana Embroidery (pvt) Ltd.

Balance Sheet

January 1, 2011 to May 1, 2011

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Assets

Cash 430,000

Furniture 40,000

Machinery and equipment 4000,000

Accounts Receivable 160000

Total Assets 4630,000

Liabilities

Accounts Payable 300,000

Payroll 100,000

Capital 4500,000

Total Liabilities & Equities 4630,000

10.8 Cash flow projection

Month Opening balance Cash flow Closing balance

January 430,000 -70,000 360,000February 360,000 -60,000 300,000

March 300,000 -40000 240,000

April 240,000 20,000 260,000

May 260,000 40,000 300,000

June 300,000 14,000 314,000

Sources and uses of funds

The major source of funds is the owners of the business that will investRs.750000 each. There will be no borrowing from any financial institutions, family

members or friends. So sources of funds will generate by the partners.

After generating the funds we will use these funds on the purchasing of machines

and for daily operations.

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Return on Investment

Return on EquityNet Profit

Total Assets

20,5000/463000= 4.42%

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Documents

shahzad final project