Report On Business plan Name-Moon Plastic Introductory Page: Moon plastic 42/2/C Babubzer, Dhaka, 1212  02-8357890 www.moonplastic.com Co-owners are: Md. Jamil Hossain House No.123, Zigatola, Dhaka-1209 Cont- 01913163412 E-mail- jamil.6677@yahoo.com Atanu Chakraborti 13/E myakanon, Dhaka Cont- 01922181929 E-mail- a_ut009@yahoo.com Md. Rezuanul Karim 62/2 Munshi Bari, Zigatola, Dhaka Cont- 01678138595 E-mail-rezuanul98@gmail.com Roksana Afrozea 34/35 M.C Roy lane, Lalbagh, Dhaka Cont-01937248608 E-mail- roksananub@gmail.com Md. Khirul Islam 104/2 Mohammodpur, Katasur Pulpar, Dhaka Cont- 01717866887 E-mail- islam.khirul@yahoo.com Md. Sohal Hossain 156 Modhubazer, Dhanmondi-1209 Cont- 01814253137 E-mail- sohal2273@yahoo.com Md. Ubaidul Haque 62/2 Munshi Bari, Zigatola, Dhaka Cont- 01715884022 E-mail- shawon_nub@yahoo.com Description of Business: Now a day’s plastic is a common using matter. People use most of the plastic product in their day to day life. We are going to produce plastic product that will plastic belt and plastic Cain. Plastic belt will used for packaging, binding, handicraft and so on. And plastic Cain that will use for chair, table, wicker stool, book self and so on. We will provide our product to small and medium sized business. Our 2 partners have already developed moon plastic logos we will apply for incorporation. Statement of confidentiality of business so the use of
Financing: We assume that our business will need near about tk 80, 00,000. We are 7 members and we will able to provide Tk 70, 00,000. After start the business we will apply to bank for rest of money to increase our business. Confidentiality of business: • • • • • •
Our one partner Md. Khirul Islam develop the logo of “Moon Plastics” we have field the trademark registration which meet 4 requirements. Completion of the written form. Drawing of the mark. Five specimens of showing actual use of the mark. The Fee. Now we will apply the PTO (Patent and Trade Office). We will appeal to government to protect our logo from use of other person or organization.
Executive Summary In today’s competitive global market every country is trying to achieve self-reliance industry. In the case of Bangladesh, plastic products play a vital role in our daily life. Bangladesh is an import dependent country. In plastic industries we depend on import machinery, raw materials and technology. Our business objective is to make Bangladesh self dependent in industrialization. This report is very much essential for us as the student of Business Administration. This report will help us to become a good entrepreneur in future. The objectives of this report gather knowledge and experience the corporate working environment with the close approximation to the business firms and the expert who are leading and making strategic decision to enhance the growth of a financial institution. The primary data was collected for this report through personal survey and secondary data from book, paper, magazines and internet. In this report we will try to form a partnership business. It is mainly product oriented business and our product is plastic. Our target markets are basically garments industry and handicraft makers. Main target of the business is to spread our product all over the country and build up a strong position in the market. Entrepreneur technology and finance are the 3 key elements in enterprise and business development. If these three can be tied together the prospect of enterprise development is bright and enormous. Industry Analysis • • • •
Feature outlook and trends Analysis of Competitors Market segmentation Industry forecasting
Feature outlook and trends: An industry a trend is depends on this countries economy, culture and on technology. So in such that matters kept in mind we define our industry outlook as follows:
Analysis of competitors: We believe, we may analyze our competitors strength and weakness and able to compete them. We collect competitor’s information from experience, Trade journal articles and advertisements. Our competitors are:
Sunflowe r Sun power Warsi JB Quality S.B.P
12 12.6 14.3 11 16 27
Market segmentation: Our market consists of some potential buyers and these buyers mainly are garments industry Owner, and handicraft owner. In rural area most of the people may use it for many activities such as preparing home, village woman may make mat, bag and so on. Industry Forecasting: In our country, jute industry is going to extinct. So, the use of jute made product is gone lost. Our business goal is to produce environmental friendly product and fulfill the demand of the product alternatively. Our target is our product will reach in every corner of Bangladesh. We want to create new market in Bangladesh that will help to increase employment opportunity and to make us self dependent. Description of Venture • • •
Products Services Size of Business
• •
Office equipments and personnel’s Backgrounds of entrepreneurs
Products: Products will produce by using plastic chemical, LD, Dice Paper, LDP, Plastic Corn etc. Our product will manufacture by 2 machine, 5 size, and 6 colors (Red, Yellow, black, Blue, Green, white) basically it’s our common color we will also produce more color according consumer choice. Our Products are:
Item-1 (Plastic Belt)
Item-2 (Cain)
Services: We will only manufacture product. So our business will be product orientated business. But in this case we will provide service to our customers if they face any problem in order to accept our product. Such as, we will sale our product to our wholesalers and if there reach any damage product that they will unable for sell to others then we will also replace the product. And thus we will try to serve the service also for our party. Manufacturing Process: Step-1: In terms of manufacturing process first task is arranging of raw materials. For this business raw material is available in “Islambagh” and “Chackbazer”. So we will collect our raw materials from “Islambagh” or “Chackbazer” where we will get cheap rate of our desire materials. Requires raw materials for the business are:
1) Plastic Corn
3) LD
2) Chemical
4) Color
After getting the Raw materials mix these raw materials all together by the mixer machine.
Mixer machine.
After mixing the raw materials total raw materials will be like this.
Step-2: Finally, these mixed raw materials will transfer into the machine and then we will get the finished product. Submachine-1 (Cutter)
Boilar
Submachine-1/2(Mixer) Part-1 (Electric supply)
Nalling
Takeup
Machine-2
Finish side
Boiler
Main Part Name of Supplier: Supplier is another main part of business those are supply raw materials to manufacturer for the production. We already contact with few supplier those will provide us raw materials when we need. These suppliers are: Petrochemical Rong Rosayon Malaysia Plastic. We are selected various supplier to collect all raw materials that we need. All of the suppliers (above) don’t supply all raw materials at a time. So we will collect our necessary raw materials from any of the parties above. Marketing Plan
• • • • •
Pricing Distribution Promotion Product forecast Controls.
Pricing: It is difficult decision of marketing plan is to determine the appropriate for the product or service. Normally, quality full and expensive product requires a high price. But we will able to provide product with reasonable price. It will possible because we will supply best raw materials at lowest price rather than our competitors. As our factory is near to supplier transportation and we will use new technology that will reduce our extra labor cost and that will help us to determine our product price more affordable than our competitors. We determine our product price as follows: Product-1 Sl. No
Our price
01.
Product Name Or Size 18 MM
88
Competitors price 86
02.
1No.
88
85
03.
11
82
81
04.
11
82
80
05.
2No.
78
77
Sl. No
Our price
01.
Product Name Or Size C-1
140
Competitors price 136
02.
C-2.
135
133
03.
C-3
130
129
04.
C-4
125
123
2 flat 2 fat
Product-2
Distribution Distribution is concerned with how products or services are made available to customers. Our distributing channel will be following:
Producer
Wholesaler
Retailer
Consumer
Promotion: The act of communication that provides consumer with Information about a company product, its service or the venture is promotion. We will try to inform our potential customers and educate the consumer, using advertising media like print and billboard and handbill. In developing promotional activities we decide push strategy by which the firms promotes a product to wholesaler, retailer in the market channel, who in turn promote the product to customers. We can use personal selling strategy to push the product to wholesaler and retailer.
Producer Wholesale Retailer Consumer Communication Flows
Product Feature: We have mentioned earlier that we will produce two types product by two separate machines with 6 colors. One product will be “Plastic Belt” that will be as follow:
Size will be for this product that also mentioned earlier 18 MM, 1No, 11
1 2 flat, 1 2 fat & 2No. Another product will be “Plastic Cain” that will be as like follows:
Size will be for this product C-1, C-2, C-3, and C-4. Controls: Control is another important part of an organization. So we divided the Control system into four parts that will help us to control the business more efficiently. Production: Product is a key element for a business that means the goods and services combination that the company offers to the target markets. In terms of production controls we will focus at first this combination that will meet our desire that they expect from us. We can also control our production by the following way: Only production is not enough for an organization. We have to ensure the best quality that will fulfill our target customer demand and build a strong position of our product in the market. In the production we will try to produce required amount of product. Although we have a store facility so we can store our over produces goods for the future use. But we our main intention will be minimize the amount of wastage goods.
We will also control product feature, design, and packaging in production area. Management: Management controls are only one of the tools which managers use in implementing desired strategies. Through Management Control we will gather and use information to evaluate the performance of firm resources like human, physical, financial and also the firm as a whole. Management controls are tools to aid management for steering our firm toward the strategic objectives. Financing & Accounting: Finance is main key elements of a business that ensure proper money circulation of the business and Accounting keeps the all transaction record that occurred in a organization and prepare overall situation of the organization. Md. Khirul Islam is the head of the financial department and Atanu Chakraborti is the chief executive officer (CEO). We will also appoint 2 senior officers who will have 5 years experience. We will forecast sales level and the appropriate expenses for at least the first three years. It will include the forecasted sales, cost of good sold, general and administrative expenses. This department will ensure the proper circulation of money in every department, proper utilization of financial resources. Our target will the potential use of money and ensure sufficient amount of money. By this way financial department help the business to continue more correctly. Marketing: Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objective. Marketing control is another key factor of an organization. Organization can benefited from it by getting various current feedbacks on the basis of customers demand. Our marketing department will maintain by Md. Ubaidul Haque and Md. Sohal Hossain. • • • • • •
It’s very much required for a company to introduce the product with the customers. Competitors are big threat for any organization. So marketer can analyze the competitor’s activity and that will help this organization to develop the product more effectively. As a new company organization should launching their product with discount prices. If they follow competitors price it can create problem for their product. So they should launch their product with discount prices. New idea generate is a way of making the product different from the competitors. Marketing department can develop new idea that will match with our target customer’s demand. Analyze or collect the feedback from the customers after sales the product. So these are the few way by that’s way we our marketing departments will control the market
Organizational Plan Forms of ownership Identification of partners or principle shareholders Authority of principle Management team background Forms of ownership: A business may have a small beginning as a sole proprietorship, later expend into a partnership and finally become a corporation. Whatever, in terms of partnership- Section 6 of the uniforms partnership Act defines partnership as an association of two or more person to carry on as co- owners of a business for profit. A partnership can be based on a written contract or a voluntary and legal oral agreement. We will form our partnership on the basis on written contract that’s why there has no chance for any confusion. Deed of Partnership Agreement
This partnership agreement is entered into on April 1, 2009, between Md. Jamil Hossain of Jigatola, Atanu Chakroborty of Basabo, Md. Rezuanul Karim of Jigatola, Roksana Aforzea of Lalbagh, Md. Khirul Islam of Mohammodpur, Sohal Hossain of Dhanmondi, Md. Ubaidul Haque of Dhanmondi. We Agree that, One:
We will become equal general partners in the Plastic business.
Two: We will use the name Moon Plastic of 42/2/C Babubazer, Dhaka. Three: Each general partner will contribute Tk 10, 00,000 to the partnership on April 1, 2009. Four: This will be the basically a Plastic Product base business and this partnership is formed for 30 (thirty) years. Five: There are seven members available in this business. Each partner will Such as:
handle the particulars task.
Md. Ubaidul Haque and Md. Sohal Hossain will maintain Marketing side, taking order from buyers; Md. Khirul Islam and Atanu Chakroborty will maintain the finance and accounting side; Roksana Afrozea and Md. Rezuanul Karim will be responsible for Managing, handling complains, answering the telephone, and Md. Jamil Hossain will responsible for HRD, production, paying bills. Two partners are selected for each group so when one partner are fall in disease or any serious situation that times other partners will be continue their task. And others partners can help them in order to doing their task properly. Six: All profits earn from selling of the business product (Moon Plastic Product) and this profit will be divided equally by the general partners and all losses incurred by the business will equally shared by them. Seven: Proper accounting books will be kept by the business, a public accounting audit will be conducted each year by a firm mutually agreed upon. Profits, Inventory, and losses will be accurately accounted for each year. Eight: Each partner will earn no more Tk25,000 per month, if earnings permit this amount to be taken out of the business. No more then Tk 8,00,000 per partner per year will be drawn out during the first four years of the partnership. Nine:
No new Partners can be added without the full written consent of each partner.
Ten: If grievances between partners cannot be resolved, and arbitrator will be hired that is acceptable to each partners. The decision reached after arbitration is binding. Eleven: In the event of death or retirement of a partner, the remaining partner will pay the estate or retiring partner the full amount of the original investment (Tk 10,00,000), + 1.5 times the most recent year’s gross sales for all “Moon Plastic” Products. The payment will be made within one year of the death or retirement of the partner. Twelve: At the termination of the partnership, a full inventory and balance sheet will be prepared by an accounting firm. All debts will be paid, and all property will be divided between the partners. Partner: ____________________ Date: _______________________
Witness: ____________________ Date: _______________________
Partner: ____________________ Date: _______________________ Partner: ____________________ Date: _______________________ Partner: ____________________ Date: _______________________ Partner: ____________________ Date: _______________________ Partner: ____________________ Date: _______________________ Partner: ____________________ Date: _______________________ Identification of partners or principle shareholders: We are mentioned earlier that we will form a General partnership business (Include seven members). So, all the partners will be active partner in the business. Authority of Principles: There are seven members available in this business. Each partner will
handle the particulars task. Such as:
Md. Ubaidul Haque and Md. Sohal Hossain will maintain Marketing side, taking order from buyers; Md. Khirul Islam and Atanu Chakroborty will maintain the finance and accounting side; Roksana Afrozea and Md. Rezuanul Karim will be responsible for Managing, handling complains, answering the telephone, and Md. Jamil Hossain will responsible for HRD, production, paying bills. Management Team Background: In this business we are 7 partners are available here. And we already contract with two persons those will works with us for a salary. These are: Md. Sohel Chwodhury will join our firm as an additional general manager. He worked as a product manager Taj Plastic Company in 2004-June2009. Naimur Rahman also has a vast experience in product quality control. Md. Rasel Patwary will join our firm as Accountant. He worked as an accountant in Pubali Bank 2004April2009 (retired). Ha has experience about the control of account and finance. Assessment of Risk A) Evaluation Weakness of Business: • • • •
We try hard and sold to build our business efficiently. But now we are find out few weakness that’s we have to face in order to continue our business. Such as: We are first time entre the market with this business. So we have lack of experience rather then our competitors. We will produce distinctive type of products for that reason our target market area will be limited. We have to purchase raw material from the suppliers but in this business we have very few suppliers.
• •
Limitation of distributors We have chance for use the new technology but we can’t take all the new technology because of our financial limitation.
B) New Technology: New technology can increase the business productivity rapidly. In our business we take a machine that will help us to increase our productivity. The new technology is “Generator” (12,000 volts). Now a days Load shedding is a big problem for our country. For this load shedding our productivity time can be lost. So, in times of load shedding we need long time backup system that will help us to continue the production for a long time. This machine is too much expensive and for that reason all of the competitors can’t use the technology. Moreover it comes in our country few months ago. C) Contingency Plan: Particulars Total Sales (-) Variable Cost
10000 Units 15000 Units Tk 1,50,00,000 Tk 2,50,00,000 (1,00,000) (1,50,000) -------------------------------Marginal Contribution 1,49,00,000 2,48,50,000 Fixed cost (2,20,000) (2,20,000) ----------------------------EBIT 1,46,80,000 2,46,30,000 Interest Expense (20,000) (20,000) ----------------------------EBT 1,46,60,000 2,46,10,000 (-) Taxes (15%) (24,000) (54,000) Net Income or(loss) 1,46,36,000 2,45,56,000 ========= ========= We can also use the machine to produce PVC pipe by changing few parts of the machine. D) Assessment of Risk:
Risk is another concern for an organization. Each organization takes some strategy to protect their risk. To cover risk, our firm will reserve sufficient funds to cover the financial losses. In this situation we will follow a strategy that is risk assumption. Our firm will assume risk by setting abide a portion of the company’s profit to cover future losses. Financial Plan Particulars
2009 December,31
2010 December,31
Asset: Fixed Asset Investments Current Asset Inventories
Tk 74,20,000 30,000 76,60,000 10000 -------------1,56,30,000 =========
Tk 1,54,10,000 80,000 1,51,65,000 5,000 --------------3,06,60,000 ========
53,00,000 2,00,000 1,10,000 20,000 1,00,00,000
1,53,50,000 1,00,000 2,00,000 10,000 1,50,00,000
1,56,30,000 ==========
3,06,60,000 =========
Total Asset Liabilities& Capital Capital of the Partner Accounts Payable Reserve Provision for Doubtful Debt Current Liabilities Total Liabilities
A) Pro forma Income Statement B) Pro forma Balance Sheet C) Cash flow projection-Sources of fund and Application
Pro-forma Income statement: Pro-forma Balance Sheet: Cash flow projection-Sources of fund and Application: Particulars A) Sources of Cash: Cash Inflow From Business Operation Cash Inflow From other Revenues Sales Of Non-current Asset (Machine) Investment Bank Loan Total Sources Of Cash B) Uses of Cash: Salary& Wages Equipment Cost Patents Rent Payment To Current Liabilities Others Expenses Total Uses Of Cost Cash In Hand
Market Research Data:
Amount (Tk) 5,00,00,000 30,000 20,000 30,000 2,00,000 ---------------5,02,80,000 ---------------20,000 75,000 15,000 50,000 10,000 1,000 -------------1,71,000 -------------5,01,09,000 ========
Marketing research is the systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization. After research the market we sea that, our target market is not so expended. So determine two specific market that if we can provide the quality product than these two markets is enough for our business as a customers. Without two markets (Garments, Handicraft) we will also sell our product in retailer market. Various hardware shop, Net shop etc can be another good market. After market research we predict that these are places will be suitable market for us and we can earn profit by sell our product to these market. Price List from Supplier: Sl. No 01.
For product-1 Product Name Supplier price Or Size (kg) 18 MM 72
02. 03.
1No.
04.
11
05.
2No.
68
Product Name Or Size C-1 C-2. C-3 C-4
Supplier price
For Product-2 Sl. No 01. 02. 03. 04.
11
2 flat 2 fat
63 60 67
120 123 118 112
Conclusion: These are all about our report. We aspect that, we will get feedback from our honorable teacher “Mss. Snajida Hossain to correction our lacking, and to know what we have to do and what we have done. Her valuable recommended is most essential for us as a student of “School of Business Administration and this recommendation will also help us to move ahead promptly.