Entrepreneur Profile- Entrepreneurship EPS

8/9/2019 Entrepreneur Profile- Entrepreneurship EPS

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BAHRIA UNIVERSITY

MANAGEMENT SCIENCES

ENTREPRENEURSHIP PROJECT

MR: LODHI

Thanks to:

Maam Ayesha Zaidi

SUBMITTED BY:

Danish Sultan

+92 312 511 00 56

[email protected]

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mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Preface

When starting this project I thought that it would be just like a regular project

but the experience was outstanding. There were many new challenges and

the learning experience was magnificent.

When the project was started there were many options of entrepreneurs who

we can approach easily using our recourses, in fact father of a one of our

group member is a well known entrepreneur in the field of pharmacy but we

were in search of a an entrepreneur who started from nothing and using this

mind and devotion has became famous.

Not only fame but we were looking for something new and innovative that

the entrepreneur has introduced in the market which didnt existed before.

One can say a classic example of guerilla marketing plan (low budget,

unconventional and creative).

At last we found a person with and outstanding business and we prepared

our questioners and prepared for the interview but the only problem was

that we had never seen the entrepreneur and knew a little about the

personality, and we had no contacts with him.

As Maam Ayesha told that I must use layman terms so that if there is any

lack of education or knowledge it could be removed and clear

communication can be made. For that purpose I made the entire

questionnaire in Urdu and re-prepared for the interview. I issued a letter fromthe HOD office addressed to the entrepreneur to cooperate with us in the

interview section.

At last on May 21, 2010 we approached the entrepreneur through the

contact number displayed in the advertisements and presented the letter

and the university cards.

It turned out that Mr.: Lodhi was not only an outstanding entrepreneur but

also a well educated man and a hospitable host. He welcomed us whole

heartedly and gave us his valuable time and gave us a food for thought. The

interview lasted for 45 minutes after that we had more than 2 hours of

discussion on the current business situation in Pakistan, and we became

good associations.

The question were asked according to the questionnaire, and the answers

presented by Mr:Lodhi are presented in this report as they were answered.

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The things which made this business so outstanding are present on next

page.

1. Pakistani Traditional Foods+ Tandor+ Catering

2. Fast Food+ Ice-cream parlor

3. Tea+ green tea+ pink tea

4. Refreshment Center (chat+ somosa+

pakora etc.)

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2 3 4 5

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5. Juice and milkshake centre

6. Family dining hall

7. Hall for parties

8. Offices

9. Mobile boosters

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THE ENTREPRENEUR


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Entrepreneur

Sultan Mehmood Khan Lodhi

Industry

Food

Business

Lodhi Foods

Location

Adyala Road, Rawalpindi

Nature of Business

Sole proprietorship

Education

B.com

Other Qualifications

Diploma in Electronics

Job Experience

Railway Electric Supervisor

Initial Business

General Shopping Store

Year of Commencement of Business

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1986

Initial Financing

Pak Rs: 200,000

Difficulties in Financing

Sources make everything possible.

Source of Financing

Self Financing

Roll model

Father (A big framed Picture is present in the office)

Vision

ap ki kidmadmat, ap ka ahtram, meari ashia, munasib dam

(Urdu for: your service, your respect, quality products at reasonable price)

Change in the Business

Converted from general store to food industry.

Reason for Changing the Business industry

In the departmental store there are countless items

demanded, and it was impossible to provide all the

demanded products in a small store.

Change in the Vision

No (Vision remained the same).

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Preliminary Food Business

Refreshment center

Business locality

Lodhi Tower

Number of Employees

34

Personal Interests

At this stage none other than the Business

Food Business Expansion

Refreshment Center+ Juice and Milkshake Center+

Fast Food Center+ Ice-cream parlor+ (Desi)

Traditional Pakistani Food Restaurant + Catering

Services+ Tandor (under-ground oven to make

traditional Pakistani bread known as Nan/Roti/Kulcha

etc.)

Other incomes from the Business

Rental Party Hall and Rent from Mobile Companies

(for placing the boosters on the roof of the tower)

Customer Demand

Depends upon superior product quality

Budgeting Process

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After such long experience, budgets and allocation of

the resources are done on daily bases.

Monthly expenses

Pak Rs: 150,000 to 200,000

Reason for Choosing the Adyala Road as the Location

Located near the residence of the entrepreneur

and Development of the local area.

Strengths

Employees and Sometimes customers

Weaknesses

Minors, nothing stands as a wall if you are motivated towards success.

Opportunities

None

Threats

There are many government organizations but I dont

like to name them and sometimes Negative

customers.

Marketing

Television commercials +Banners +Broachers

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Any Risk in the Business

As there is a lot of cash in circulation there are

some theft incidence and one armed robbery.

Time period involved (from Good to Great)

24 years

Inventory Management

90% of inventory is directly bought in business

from different suppliers (mostly perishable

goods)

10% of the inventory is brought from whole

sale markets

Promotion Schemes

Many marketing system are implemented time

to time.

Last month, in the Business anniversary

celebration we operated at the Break-even

(zero profit, no profit/ no loss), a scheme of buy

5 and get 1 free is implemented.

Government support

Not at all (making expectations from other in

your business is not acceptable).

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Facing Liabilities

No huge amounts of liabilities are involved,

only in case of shortage in account short term

borrowing is utilized which and are paid on

daily bases. (Bank Al-Falah)

Reason for triumph in the market

Best standards of Quality

Innovation

Availability of all food segments of country, under one roof.

Business Constraints

Parking Area problem

Affiliation with any social/ local organization

PML (political party)

Stood in the elections of 2009 as a candidate

Dislikes about your business/ industry

None

Likes about your business/ industry

Customer satisfaction by demand fulfillment

Future plans

Expansion plans for business by opening new branches

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What is the success story of Mr: Sultan Lodhi? A man who started

from a small general storeand now sitting in an air-conditioned

luxury office in a multi-story building?

This is a long journey of difficulties and perseverance. Along with the

education I also learned different skills and got a government job in the

Pakistan Railway. After realizing that I can achieve more by becoming an

entrepreneur I left the job and enter the business field. Initially I stated with

general store but it was very disappointing for me when a customer

purchased more than 50 items and there were 2 items that were it present in

the store, because there is countless number of products and it is not easy to

fulfill each and every demand. At this time I realized that no matter how

much you would invest in this business of general store still there are going

to be some products that the customer will demand and I will not be able to

supply.

With this feeling I entered into the food industry and gradually converted my

general store business into a refreshment center, I didnt make any further

investment. The concept that made me left the general store business

became my source of inspiration of the new business enterprise. I developed

the food business in such a way that there are all the segments of food that

are popular and demanded in Pakistan and according to my knowledge there

is no other place in the entire region where you can buy a from a somosa

(Pakistani Snack food) of Rs: 5 to a mutton karhai (Pakistan Traditional food)

of Rs: 600 or from a zinger burger to dage (a big vessel use to cook food for

at least 60 people) under one roof, owned by one man. In these so many

years there is not even a single time I have came across such a situation that

I am not able to fulfill the demand of my customers.

Hard work, loyalty and determination are the name of the steps which has

raised me from a small general store to the position where I am sitting now.

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With your initial investment did you ever expected to achieve such

high level of business?

It is human intension to think ahead about the future and success. Im also a

human and have same intentions; I was sure about my success as I worked

hard but not about the time period.

How do you manage multi-segments of your business?

Everything must be planned and executed in the same manner. There are

separate cash counters for each food segment to record each and every

business transaction (income and expenses) in the ledger of the related

segment. I manage the overall business and my sons act as supervisors to

maintain the business.

Any effects of the political and economical instability on your

business?

Indeed there is a lot effect of the present instable situation on the business;

we have to face difficulties in maintaining the running (working) capital,

sales graphs have moved down and as we are in the food industry so there is

a lot of food wasted (as it is perishable).

How do you utilize profits/surplus? Employees Bonuses or Business

expansion?

For me employees have always been the priority as they are the back-bone

of the business, but employees cash bonus is not the only incentive. Thereare other incentives given to the employees, at present business expansion

is more important for the business.

What are the Competitive advantages over the competitors and

what are the corecompetences giving that advantage?

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In my opinion everybody operating in the market thinks of themselves not

just good but the best having some advantage over the competitors but the

ultimate decision is in the hand of the customer to decide who is best.

Do you consider your customer as your capital?

No doubt, customer are the business; in the previous days only cash was

considered as capital but in the present era customers and employees have

become the part of the capital.

How do you utilize the suggestions of customers to develop your

business?

Although I am not physically present all the time but my personal cell

number is displayed to each and every customer and I take direct complains

and suggestions from the customers to utilize in the business development

and make changes accordingly.

Have you ever informed/ educate your employees about your vision?

As I have already told you that I consider my employees as the back bone of

the business so, on 15th of every moth there is a meeting in which all the

employees participate and discuss the issues, I am so open to the employees

that all the earnings and the expenses of the business are overtly put in front

of the employees. This meeting has created a relationship of trust between

the employee and the employer. I also avail this opportunity to discuss my

thinking about the business (including the vision and goals) with the

employees.

In your point of view what will be your primary objective? Profit or

vision?

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That is an interesting question, both are necessary. I would say that my first

obligation and priority would be by business, if following my vision is more

essential for the business than I would follow my vision and if profits are

required than steps must be taken accordingly.

Any suggestion for the new entrepreneurs from your expertise and

experience?

Anybody thinking that he/she could just jump into the food industry and earn

profits than they must reconsider. If you have the ability to bear loss for at

least 6 months than you have chances to enter into the business because it

takes some time to earn your goodwill and to mark your presence in the

market. If you are persistence and loyal to your business only than you can

be at some recognizable place.

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Documents

Entrepreneur Profile- Entrepreneurship EPS