ENTREPRENEURSHIP PLAN

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Entrepreneurship Business Plan

Topic:

Conversion of Egg into Powder form.

Submitted To:Sir Khurram Ali Jafri

Submitted By:Ali Ahmad Majoka 006Muhammad Habibullah 084

Sharjeel Arslan 139Zahid Yousaf 166Qaiser Abbas 175

Section:MBA-13C

Submission Date:12th May, 2011

COMSATS Institute of Information Technology, Lahore

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Contents

Contents ...........................................................................................................................................2Executive Summary: ....................................................................................................................... 3

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Business Overview: ............................................................................................. 4

Nature of Business ........................................................................................................................... 4

COMPANY OBJECTIVES ............................................................................................................. 5Target market ...................................................................................................................................5

Purpose of Partnership .....................................................................................................................6

Management team ............................................................................................................................6ORGANIZATIONAL STRUCTURE .............................................................................................7

Roles and Responsibilities ............................................................................................................... 7

INDUSTRY ANALYSIS ................................................................................................................ 8SWOT Analysis ............................................................................................................................... 9

Product Feasibility and Strategy ....................................................................................................10

Distribution channels .....................................................................................................................12

FINANCIAL PLAN .......................................................................................................................13CRITICAL RISK FACTOR ..........................................................................................................15

Marketing risk ............................................................................................................................15

FINANCIAL RISKS ..................................................................................................................15

Conclusion and Recommendations: ...............................................................................................16

Executive Summary:

Quality & style are now the top priorities of the citizens of developed countries. For this purpose

Royal Eggs, has taken advantage of this opportunity by providing an innovative product of

hygienic eggs in powder form. ROYAL EGGs is committed in providing its customers with

nothing but the best quality product. It is the pioneer in the economy of Pakistan. It has great

edge of no competitors and large market for this type of Business. We are new utilizing the

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market opportunities. As this is new business so, we have to face shortage of sales at beginning

of our company Life. This business is on partnership bases so all the partners are equally

sharing in profit or loss. We will target a niche segment of huge market. That segment will be

restaurants and bakers in Lahore only. We will sell our product through different dealers.

ROYAL EGGs is providing all sort of eggs in powder form, new invention, new products which

are rapidly adding up in product mix of this industries all will be adopted by ROYAL EGGs.

ROYAL EGGs has only one unit which is converting five thousand eggs into powder form in

Pakistan. Project is based on new creation of business by utilizing business opportunities. So,

we have started ROYAL EGGs Company. A full marketing analysis of company including

internal factor strength and weakness, external opportunities and threats. PEST analysis, Risk

analysis and financial analysis has been done in the project. We will use China based

Technology Machine which will convert five thousands Eggs into Powder form. We will provide

our product in different attractive packaging sizes. We will market our product on print media as

well as on electronic media. Projection of marketing expenses has been done in the project.

Business Overview:

Name of Business

The business which we are going to start is by the name of the Royal Eggs.

Nature of Business

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We are committed to serve hygienic and quality Egg which is full of vitamens in natural

form. Our business infrastructure consist of its abilities,competencies, skilss,culture,

values, and pure qualified management styles.

Company Mission Statement

The mission statement of Royal Egg is :

To be a pioneer Company in this market, we will continue to serve the Market

with our healthy and hygienic products and services by utilizing our best

capabilities and resources.

COMPANY OBJECTIVES

The company objectives are as follows:

To meet the demand of Bakeries and Restaurants in main cities

To boost up the economy due to innovate trend in the industry.

Business size

The size of the our company Royal Eggs is currently small in size but in future there is

great expectation to expand it.

Target market

Royal Eggs is providing services as B2B. We will operate as niche. Our target

customers will be Bakers & Restaurants.

Code of Conduct for Companys Management.

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

dealings. Our business respects creativity and innovation in routine matters. This is to

motivate everyone in the business to act in an ethical way. We communicate openly,

directly and accurately with the public. We will not give special treatment to any

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individual or institution. Confidential business information must not be shared with

others.

Future out Look and Trends

As people knowledge and awareness going to be increase .and world is going to be

more globalizing the trends, tastes, and fashion is continuously changing. People are

more health conscious now .and they are not ready to compromise on invaluable and

unhealthy foods. Now a days we also see that concept of providing the valuable

products to customers. To attract the customers to make them more loyal, to get more

revenue we specifically focus on this factor.

To make our services more efficient we will make special forums to contact immediately

to customers and suppliers for products. And within passage of time we will convert our

services on the internet to the fast and direct access to customers. As start we are

focusing on some national and more on local shops thats why our resources are

limited.

Form of Ownership

The business is purely on partnership basis.

Purpose of Partnership

The purpose of partnership is to share resources for the business. By this cooperation

the expertise will enhance for the best achievement of goals. And our organization will

be privately owned.

Management team

Our business is on partnership. Our management team will be consisting on 5

members. The duties and responsibilities will be dividing among them.

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Making marketing plan of the product development

Executing the marketing plan

Identifying the segments according to the attributes of the product

Making promotional plan including Advertisement and packaging

Operations Manager

Zahid Yousaf

Designing the manufacturing process

Making sure the proper working of manufacturing process

Plant maintenance and overhauling

Stock maintenance

Achieving the production targets

Finance Manager

Muhammad Habibullah

Costing

Arranging the funds

Maintaining records

Assets handling Making payments

Wages

Relationship manager

Sharjeel Arslan

Relationship with customer & suppliers

Building strong relations between Management and Employees.

Build strong Relationships with Govt.

HR Department

INDUSTRY ANALYSIS

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Pest Analysis

SOCIAL FACTORS

Social factors like people community, events, culture all ill support

our business because the use of eggs is common in our society. We will provide Eggsin hygienic form which will be full of vitamins and energy.

POLITICAL FACTORS

Here the political factor can interfere in our dealings .as government

can increase or decrease the custom duty because we will import Eggs from Brazil.

ECONOMICAL FACTORS

As the economical condition is going to in rescission so the fluctuation

in prices is very simple and common factor in these days. To cover and avoid the

economical loss we are going to produce and deliver our ..according to our

requirement.

TECHNOLOGICAL FACTORS

At start we are going to use advance technology. We will use basic machinery for our

production and also to provide the internet facilities up to some extant.

SWOT Analysis

STRENGTHS

Lower cost and selling price

No direct competitors in the local market

Quality plant

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WEAKNESSES

The absence of certain strengths may be viewed as a weakness.

Lack of awareness

Lack of Capital

OPPORTUNITY

Attractive market and industry

Good profit by good quality

Opportunity to enter into different segments in future.

THREATS

Entry of new Competitors

Energy crises

Poor economic and political conditions in Pakistan

Product Feasibility and Strategy

Product

As we are going to provide the Crystal Eggs which is specifically used by Bakers &

Restaurants. The specialty of our product than others is provision of best Quality to our

potential customers. As according to survey the supplier does not have the concern

about the cleaning process.

Packing

We will provide Crystal Eggs in special jars to maintain the level of quality and

cleanses .as our main targets markets also focusing on providing the best products to

customers. So it will be our specialty. Packaging will be depend on the following

capacity of Jars:

250 gm

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500 gm

1000 gm

Price

Price is the value that customers give up to obtain desired product.

250 gm (350)

500 gm (500)

1000 gm (800)

Pricing Strategy

When company starts they used pricing strategy keeping in a key advantage of

maintaining a strong brand image in a competitive market is a degree of flexibility in the

pricing strategy. It is a common characteristic of imperfectly competitive markets for

producers to concentrate on non-price competition view the competitor price.

This will help him to take the maximum market share.

Place

As we are operating in Lahore for manufacturing of our product. So we re going to makea small ware house . And we will provide our product according to the requirements and

need to our target market. To make any product successful its essential to provide at

right time and according to customer Demand.

Promotion

Promotion is a communication process that takes place between a business and its

various As we want to give knowledge to our customers about our product. We will use

different promotional tools like Print Media, electronic Media etc.

Print Media

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To promote our enterprise we will also used the print media in which we will make our

calnaders different pamphlets to give knowledge and awareness about our product

features, and specialty.

Distribution channels

As we are going to make our warehouse in Lahore and to provide the services to the

customers in Lahore. we will use distribution channel to make arrangement for just in

time delivery of our product to our customers. We will have our own outlet where we

well sell our product directly to the customers.

Production Plan

The method of production of our product is given as:There are some steps involved in production process

The production period of Crystal Eggs will be start from this summer.

Firstly we will buy 5000 Eggs, and place them in our warehouse.

The workers will start work to convert Eggs in powder form.

We will place all the Eggs in production plant where these main steps will be

followed.

1. For conversion of full Egg we will place in its one part of Machine where the

temperature of machine will be 16 to 18 degrees centigrade.

2. For conversion of only yolk we will place it in second part of machine where

the temperature will be 14 to16 degrees centigrade.

3. For conversion of only Egg white we will place it in third part of machine

where the temperature will be from 12 to 14 degrees centigrade.

4. After these steps the powder will be sent to the packaging department where

it will be packed according to the specific capacity.

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FINANCIAL PLAN

Capital requirement of Royal Eggs for 1 year

The required capital for our business plan, named as Royal Eggs, which will be

supplied by our management team. The capital requirement for the first year is given

below in the table marked as initial resources.

Sources of funds

Sources of fund categorized as:

1. The capital provided by our management team

Uses of funds

The funds will be used for acquiring the Rent land, purchase inventory, purchase

of machinery and salary of labor.

Budget Contribution

The followings amounts have been contributed by company partners

The amounts are in Pak rupees.

Muhammad Habibullah 600,000

Ali Ahmad Majoka 600,000

Sharjeel Arslan 600,000

Zahid Yousaf 600,000

Qaiser Abbas 600,000

Total Contribution 3,000,000

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Royal Eggs has five active partners, who are fulfilling capital requirements for setup

the business venture in Lahore, up to some extent but we need investors to meet its

startup cost.

Royal Eggs

Projected income statement ( 500 gm )For the year ended December, 2011

Sales (500*15000) 7,500,000Rent of Land 25,000

Direct expanses 10,000

Cost of sales (15000*350) 52, 50,000 52, 85,000

Gross profit 22, 15,000

Admin Expense

Salary of partners (12000*5*12) 7, 20,000

Salary of employees (8*5000*12) 480, 000

(1*8000*12) 96,000

General expanses

Utility Bills (3000*12) 36,000

Packaging Material 40,000

Total admin & General Expanses 13,72,000

Net income 8,43, 000

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CRITICAL RISK FACTOR

There is no business in the world from which we can eliminate the risk factor. A

business can face the risk from different fronts;

Management risk

Marketing risks

Operating risks

Financial risks

Management risks

There are no any specific suppliers in the market which efficiently supply Royal Eggs.

So, in our computation thats why we are pioneer in our field or you can say first mover.

Solution

There is no problem in the world which cannot be solved.

We have the legal documents that no one of us can start new business with same

name.

Marketing risk

Marketing in now days is a challenge for the companies We will positions our product to

those places where there is huge demand.

Give add in FM radios at suitable timings.

Print & Electronic Media

FINANCIAL RISKS

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Financials are the major risk factor for any business. Same is the case with our

business. There is recession in the economy. Thats why we are not expecting lot of

profit in first years because we focus firstly on low price at same quality.

Conclusion and Recommendations:

As per market analysis, it is sure that our project will be successful because of no

specific Competitors in market, so we have good opportunity to enter this business.

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ENTREPRENEURSHIP PLAN