Business plan sample on furniture

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Executive SummeryThe new furniture company is Pacific furniture. It will start in 2013 with quality full furniture in various designs. We take a big plan which is for five year. And we hope we can establish our brand within 3 years and till that time our profit will reach 1.5 crore tk. We hope we can earn 1.5 laks within one year. We produce and sale five types of furniture like bed sheds, sofa, dining table etc. We use a big amount for our establishment in advertisement and promotion. We spent more than 10 lak taka for advertisement. And for that we hope we can establish our brand name within three year. Our advertisement main area is tv and radio channels. We launch new product on 4.5 year later when our company will stay in maturity stage of product life cycle. Our main target area is Dhaka, but after this we will cover our country. We promise that we will provide quality full furniture for our customers.

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Description of Bangladesh Furniture Industry

The Bangladesh furniture industry is one of the most promising growth sectors with high export potential. According to a Household Income and Expenditure Survey of 2005, the domestic consumption growth rate is around 20% and export markets are almost entirely untapped. There are approximately 40,000 furniture SMEs all over the country, employing around 180,000 people, turnover is in excess of BDT 100b (GBP 1b). Currently dominated by thousands of small workshops, the furniture sector is in a transition phase towards industrialization. Simultaneously, there is a small but growing segment of larger firms who are gradually entering the export market. Nevertheless, the furniture sector is struggling to reach its full potential due to various factors in habiting its growth. Inadequate supply of production technology and consultancy services, limited access to quality inputs, absence of skilled workforce and limitations in local and international marketing are some of the main problem areas. The biggest challenges for export include: government recognition as a potential export sector, limited export order processing facilities, lack of credibility in international markets, uncoordinated association activities and absence of effective initiatives for facilitating foreign direct investment.

Leading companies of Furniture Industry

Bangladeshi leading furniture companies are given below-

Akhtar furnisher’s ltd.Aftab furniture’s ltd.Otobi ltd.

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Hatil furniture ltd.

Business DescriptionPacific furniture will launch on year of 2013. Pacific Furniture manufactures basic, durable home and office furnishings. Principal among these is a line of hardwood desks, dressers, bed sheds, dining tables, chairs, and home entertainment centers. The company's typical retail and service customers include upper-middle class residents of the residential area who seek to maximize the purchasing power of the interior decorating budget. These customers are attracted to Pacific Furniture because it provides quality products, and many are second generation clients. These loyal customers have consistently provided Pacific Furniture with annual sales of over 30,00,000tk in each year. Pacific Furniture intends to expand its customer base in the residential area by aggressively promoting the Additional value of consulting services it now provides and by capitalizing on its reputation more extensively. A complete retraining of the sales force coupled with significantly increased advertising expenditures will accomplish this objective.

Pacific Furnitur ltd.NameOffice: 72, Mirpur Dhaka-1208

Factory: Gazipur, DhakaAddresswww.pacificfurniture.comWebsite

PartnershipForm of Business

Wooden FurnitureProduct Type

PacificBrand Name

Attractive Brand Logo, Quality ProtectivePhysique

Corporate ImageCultureTo creat clear brand Image,

demand by ensuring Quality, Availability & Rich Communication

With CustomersMission

COMPANY PROFILE

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Our logo

Our SloganModern Living, “Create your own fashion”.

Company visiting card

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Nature of businessWe form our business as a “partnership” business. The types of our business are Manufacturing Furniture’s, Distributor/ Wholesaler. There will be 7 partners in their respective posts.

Partners Visiting cards:

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Size of BusinessThis business will produce & provide consumer product and

organize medium size business. Initially we will cover the 1

division of the country but our prospect will be whole of the

country.

Statement of startup FinanceInitial financing requested of the company is 2, 00, 00,000 taka loan to be paid off over five years from Dutch Bangla Bank Ltd. This debt will cover office space, office equipment, and for supplies two leased vans, advertising and selling cost. The partners provided 3, 00, 00,000 taka jointly. So, the total cost of the project estimated at 5, 00, 00,000 taka.

ObjectivesObjectives of Pacific furniture’s are given below-

1. Establish relationships with designers of unique, fine furniture

2. Establish relationships with quality wholesale suppliers of lumber and hardware.

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3. Establish our name and image in the community as a specialty manufacturer of custom designed furnishings within the next three years

4. Focus our product in various way like advertising, promotion, fair etc and increase our sales and make profit to 1,50,000tk by year.

5. To increase sales at least 1,40,00,000tk by the third year of operation.

6. To sell some different designs furniture’s.

Keys of successKeys of success are given below-

1. Business will be located on major city shopping malls, residential areas, and college and university hostel areas.

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2. We need to find the quality-conscious customer in the right channels, and we need to make sure that customer can find us.

3. We can't afford to ship fully-assembled desks, but assembly must be so easy and automatic that it makes the customer feel better about the quality, not worse.

4. We committed to quality full wood, quality full workmanship, quality full design for customers.

5. Pacific furniture will employ local craftsmen who have plied their trade for decades.

6. By using only the finest hardwoods available, our craftsmen ensure that our furniture will last for generations to come.

MissionPacific furniture helps to decorate home in a very attractive designs and it helps to create pleasant, productive office environments with well-designed furniture that incorporates new technology into the classic office mode, in which real people can work happily. Also in home decoration pacific furniture help to spent a happy moment with all family persons.

We are sensitive to the look and feel of good wood and fine furniture as well as to high-powered personal computing. We always provide the best possible value to our customers who care about quality office environments, home decorations, and we want you spent with us to be well spent.

Future outlook and trends

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We mainly want to produce furniture. It is a partnership

business. Initially we prepare our business plan for five years.

Next five year we target that we capture 6% of total market

share. When our company will start, only one product available

in five types, we produce at that time. We wish to achieve a so

much customer and consumer response in 1 year. It wills our

betterment of our company. We get best wishes to our target

customer and also the mind of the customer will obviously

great beliefs of our products. Because we mention that, our

product is the best product in Bangladesh. We expect the sales

will be in next year approximately TK 1 corer. Our production

cost is TK 2, 70, 50,000. The return on investment is 20%

expected

GoalsOur main goal is to provide good and best quality furniture to the customers. As “Pacific” is a new company, so our goal is also to raise the brand value of “Pacific” and creating a good number of loyal customers.

FocusWe concentrate on the continuous improvement of the product

according to the customer needs. So we specifically follow the

product concept.

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Our product descriptionOur products list is given below-

Bed shedsAlmiraSofaDining tableDressing table

Bed sheds:

Pacific furniture made Bed Sheds in various types and various design. The Bed Sheds are very much attractive. See some sample of Pacific furniture Bed Sheds in below-

Almira:

Pacific furniture produces Almira by pure wood which is collect from forest. And the Almira’s are very much attractive and nice designed. Some samples are given below-

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Sofa:

The main and most used home decorates furniture is Sofa. There are several designed sofa are also produced by Pacific furniture. This sofa’s are used for office and home decoration. Some designs are given below-

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Dining table:

Another main and most used home decorates furniture is Dining table. There are several designed Dining table are also produced by Pacific furniture. Some designs are given below-

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Dressing table:

Most used other furniture is Dressing Table. There are several designed Dressing Tables are also produced by Pacific furniture. This Table’s are used for home decoration. Some designs are given below-

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Product qualityPacific Furniture brings quality in life. Their products contain

following qualities:

Performance. Will show well performance.

Features. Good features.

The Name. A name that contains quality

Reliability. Each person use will results in the

same satisfaction.

Serviceability. The service system efficient,

competent, convenient.

Market Analysis

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Market segmentation

Geographical Segmentation:

The market is segmented according to geographic criteria like,

Nations: Our customer’s nation will be Bangladeshi.

Regions:

Dhanmondi,

New Market,

Azimpur,

Panthopoth,

Main Market Area

Dhaka

Potential Market Area

All over Bangladesh

Actual Market Size About 70,00,00

Potential Market size About 1,00,000,000

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Green road,

Farmgate,

Mirpur,

Jatrabari,

Motijhil and

Mohammedpur.

Cities: At first we cover only Dhaka city after that we cover other cities which is beside of Dhaka. The other cities are-

Narayanganj

Comilla

Chittagong

Sylhet

Bagherhat

Bogra

Maymensing

Khulna etc

Zip codes: The zip codes are

1205,1209,1000,1206, 1100, 1208 etc.

Demographical Segmentation:

Demographic segmentation consists of dividing the market into groups based on variables such as

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Age: The age range of the customers are

2-5year old,

20-30years old and

40-70years old people.

Gender: The gender of the customers are

Male and

Female.

Family size: In Dhanmondi and its side areas families are maximum small family. Our targeted families are

Small family and

Big family

Income: The customers income level will be

10,000tk to 30,000tk per month



70,000tk to 1,00,000tk per month

Occupation: Occupation is not clearly defined for the target market of our product. But the customers are

Job holder and

Business person

Education: The education level of the target customer is

HSC

Higher graduation like BBA & MBA

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PHD and others.

Religion: The religion of the most customers is Muslim. There is also having some other religion peoples. The religions of our customer are

Muslim

Hindu

Buddhist

Christian

And others

Nationality: Most customers nationality is Bangladeshi but there have also some other nationality people like

American

English

Nigerian etc.

We have targeted for the upper part of the

lower class, middle class, upper middle class,

and lower part of the upper class of the society.

Middle Class

Upper- Middle Class

Some portion Upper class

Psychographic Segmentation:

Psychographics is the science of using psychology and demographics to better understand consumers. By Psychographic segmentation we segment our consumers according to their lifestyle, personality, values. Aliens within the same demographic group can exhibit very different psychographic profiles.

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Target marketAs a manufacturer supplying to distributors, our target market would be furniture distributors of high quality product. The income level of the average client seeking high quality furniture will be in the middle and upper class range. Marital status will not make a difference. Education level will be college graduates, professionals, and some skilled trades. Many of these customers are returning to Dhanmondi area after living elsewhere and yearn for a simpler life for their family. Many others are transferees with large corporations, having come from more expensive living areas of the country. Therefore we feel we can target this niche for our direct sales outlet.

As we expand into the office and industrial furniture markets, we will target corporations, hospitals, and businesses of all sizes. The end user for our product will be those who appreciate fine workmanship, durability, quality craftsmanship and fine wood; the discriminating buyer who is selective and does not want a typical, mass-produced product. Our customers will not hesitate to pay for top quality and workmanship that will last for decades, even centuries that will become heirlooms.

Our initial primary market will be small independent furniture retailers within a 250 mile radius of the Dhanmondi, which will include such major markets as New Market, Azimpur, Panthopoth, Green road, Farmgate, Mirpur, Jatrabari, Motijhil and Mohammedpur. We will target them until we are able to craft enough quality furniture to distribute to larger furniture chains.

Target market by categories:

Age: The age range of the customers are

2-5year old,

20-30years old and

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40-70years old people.

Gender: The gender of the customers are

Male and

Female.

Family size: In Dhanmondi and its side areas families are maximum small family. Our targeted families are

Small family and

Big family

Income: The customers income level will be




70,000tk to 1,00,000tk per month

Occupation: Occupation is not clearly defined for the target market of our product. But the customers are

Job holder and

Business person

Education: The education level of the target customer is

HSC

Higher graduation like BBA & MBA

PHD and others.

Religion: The religion of the most customers is Muslim. There is also having some other religion peoples. The religions of our customer are

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Muslim

Hindu

Buddhist

Christian

And others

Nationality: Most customers nationality is Bangladeshi but there have also some other nationality people like

American

English

Nigerian etc.

We have targeted for the upper part of the

lower class, middle class, upper middle class,

and lower part of the upper class of the society.

Middle Class

Upper- Middle Class

Some portion Upper class

Competitive comparisonWithin our niche we have two significant competitors, Akhter Furniture and Hatil Furniture. Akhter is a bigger company but like us, operating mainly in our same niche, whose marketing is better than its product quality. Akhter and Hatil furniture are the market leader and we are the follower because we are new in this market. But to stay in market we use our quality to attract our consumers.

Competitors profile:

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Our competitors profile are given below-

1. Hatil Complex Ltd. is a leading doors and furniture manufacturer in Bangladesh. Hatil has been established in 1989 following the footsteps of H.A. Timber Industries Ltd. - a company running from 1966 with reputation in timber processing sector.

Strengths: Good marketing, strong advertising budget, relationships with distributors, strong direct sales. Weaknesses: The product is more standardized, and of lesser quality, with less sense of design and materials and workmanship.

2. Akhtar Furnishers Ltd (AFL) started their business in1976. Akhtar Furnishers Ltd (AFL) has been committed to the ideal of creating furniture of such impofessionals who sell and deliver it.

Today, every employee feels it is a brand created by them, and each of us is dedicated to earning your confidence and building on this tradition of excellence.

Strengths: Financial backing, product quality. Weaknesses: AFL has not seemed to understand our niche, where to find the buyers, how to market as a specialty niche instead of the more traditional furniture channels.

Other competitors are Ahmed furnishers, anarkoli furnitures, antara farnishers, anupam furniture, asha furnitures, aver green furniture etc

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Overall Marketing Strategy

We focus on a special kind of customer, the person who wants very high quality office furniture customized to work beautifully with modern technology including personal computers, scanners, internet connections, and other high-tech items. Our customer might be in larger corporations, small or medium business, or in a home office with or without a home-office business. What is important to the customer is elegance, fine workmanship, ease of use, ergonomics, and practicality.

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Our marketing strategy assumes that we need to go into specialty channels to address our target customer's needs. The tie-in with the high-end quality catalogs like Sharper Image is perfect, because these catalogs cater to our kind of customers. We position as the highest quality, offering status and prestige levels of purchase.

The product strategy is also based on quality, in this case the intersection of technical understanding with very high quality woodworking and professional materials, and workmanship.Our most important competitive edge is our assembly strategy, which is based on interlocking wood pieces of such high quality that assembly is not only a pleasure for our customers; it is actually a feature that enhances the sense of quality.

Our marketing objectives

Maximize profit margin

Objective of the Pacific Furniture is to provide high quality

product and satisfy our customer by our product. We will take

premium price to our customer other than our competitors.

Thus we will try to maximize our product.

Quality leadership

The main objective of Pacific Furniture that its responsibility to

provided best quality what we will promise to our customers.

Pacific Furniture sets main objective to provide quality products

that satisfy the customer need and their requirement. So Pacific

Furniture will deliver the quality product.

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Long relationships with customer

We will try to provide superior value to our customer what we

have promised through advertising. So we believe the

customers will be loyal to our brand and build long term

relationships.

Communication objective

We will use different sources to attract their customer. The

objective of Pacific Furniture is to create awareness in our

customer about our new product. Pacific Furniture also tells

their customer that they provide pure wooden furniture to their

customers.

Strategy marketing objective

To build unique distribution system that provides

ubiquity at low cost.

To build high speed, efficient and vertical integrated

manufacturing capabilities to gain low cost advantage.

To increase advertisement activities.

To redesign packaging to a more attractive and familiar.

To make innovation in product so that it become more

portable and in convenience oriented form.

To improve product quality as ever provide

To maintain positive and steady growth each month.

To experience an increase in new customers i.e. we

have to ensure that our products have a high trial rate

which will help us to turn these new customers into long

term customers.

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Generate brand equity at the markets we are catering

to as well as within the supplier and distribution

networks.

PositioningPacific Furniture handcrafts furniture from selected and custom designs. By doing custom design work, we have the ability to meet any special requirements of customers be it design, wood, color or type of construction. Our personalized service provides our customers with their own personal specialist. Our personal specialist will maintain a database of their client’s valuable information such as client name, personal likes and dislikes, wish list information, past purchases including dates, price, and style, serial numbers and any other data which will assist our customer in target their marketing efforts. We also keep a photo inventory for insurance purposes as a part of our customer service. Many of our customers have returned to a smaller community and have purchased expensive homes and wish to furnish them with exquisite furnishings which they can pass on to their children, family and friends. They have a higher education background and are employed by large companies. They use the internet frequently and appreciate the convenience of having access to shopping and personal records online.

Our main retail competitor, Akhtar furnisher’s ltd, is located in New Elephant road, 25 minutes away. We plan to beat this competition by offering more variety and having a personal service. Our other competition is from chain stores, some of which we plan to supply as a wholesaler.

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Risk and OvercomeOur main risks are given below-

Raw material: Some time our supplier will not

capable to supply us raw material and it’s a big risk

for us. And for that we will buy it from our local wood

seller who are sale wood locally.

Strike: The workers will strike from their work. On

that time we will take an emergency action to cool

down them and back them to work.

Advertisement problem: Some time we will face

Advertisement problem and for that problem our

Marketing will slow down. On that time we will make

some campaign for recover that risk.

Poor management: Poor management also a risk for

our business. If we see that we have poor

management then we will recover it and increase our

management strength.

Natural disaster: For uncertainty of Natural disaster

we stock some wood for our future production and

recover this type risk.

Pricing

Our products prices are given below by categorically:-

1. Bed sheds:

Single Bed sheds 9000tk

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Semi double bed sheds 14000tk

Double bed sheds 20000tk

2. Almira :

Small 12000

Medium 20000

Big 25000

3. Sofa:

Single 8000

Long 18000

Set 40000

4. Dining table:

Table with 4 chares 13000

Table with 6 chares 20000

5. Dressing table:

Small 8000

Medium 15000

Large 23000

DistributionIn the next five year we want to increase our sell 25.45%, for this we have to increase our main distributor’s number in the remote area of Bangladesh. We have to evaluate their capacity and then try to sell our product in their distribution network

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more frequently. We have a plan an action program for our distributor’s sales persons.

We are new in this market but still we have already covered Dhaka and some other districts by our strong distribution network. We have divided Dhaka and other districts into some operational zones and each zone has its separate distributor.

Beside this we are trying to cover all the districts and some of the major Thanas by appointing new distributors.

Following is the flowchart of our distribution network:

A distribution strategy defines how you are going to move products from point of creation to points of consumption, in a cost-effective manner. The effectiveness of distribution coverage and practice is of paramount importance in achieving the desired furniture sales.

Location

Factory

Super Shops

Final consumer

Distributors

Final consumer

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Our company’s factory will locate in Gazipur. And our outlets are located in Dhanmondi, New Market, Azimpur, Panthopoth, Green road, Farmgate,Mirpur, Jatrabari, Motijhil and Mohammedpur.

The advantage of this location are given below-

o Raw materials:

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We collect our raw materials like wood from various areas for the easy accessibility and less barriers. The transport facility is good for truck and Lorries. The areas are-

SundarbanKhagrachariChittagongBandorban

o Place of Factory establishment:

Our factory will locate in Gazipur because there have easy and low cost labor accommodation, easy transportation to Dhaka and easy transportation of raw materials from Sundarban.

o Required skills with work force availability:

Gazipur is suitable for getting much labor in low cost. And for that reason we will locate our factory to Gazipur.

o Ecological requirement:

Gazipur is stay beyond the prohibition of ecological disasters like flood, earthquake etc.

o Public utility:

The public utilities like Electricity, Gas, Water and other security service are available here and also for this reason we will locate our factory there.

o Transportation of finish goods:

Gazipur is most popular for availability of delivery vehicles. And for that reason we locate our factory for easy transport of our finish goods.

o Scope for expansion of our factory:

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Our head office will be locate in Mirpur and outlets are locate in Dhanmondi, New Market, Azimpur, Panthopoth, Green road, Farmgate,Mirpur, Jatrabari, Motijhil and Mohammedpur. And we can expand our factory to other area like Narayangonj, Savar etc. because that areas also famous for transportation affordability and customer convenience.

Advertising and promotion

Pacific Furniture will use different sources to communicate their

target marketing. We will use those sources on that the more

customer attract like Local Cable, Newspapers, Billboard and

when they lunch any scheme in Furniture they use pamphlets

to aware their customer. Pacific Furniture will use the channel

to attract the customer and give fully information about

Furniture through these Electronic media. As our target

consumers are middle and old age people, for this reason we

promotion our product to give advertise in television, radio. We

also use vehicle writing method and posturing for our product

advertisement.

We choose some media for our product’s advertising. This are-

1. Internet

2. Television

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3. Radio

4. Newspaper

Internet:

We use internet based advertising like Facebook, Prothom-alo.com, dailykalerkantha.com, bdpratidin.com etc. In facebook and other daily newspapers website there have so much visitor every day. And the total amount of visitor from those website is more than 10,00,000 visitor every day. And this the most effective advertising plot for us.

Television:

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Television is also a most popular media item. Every people of our country use it for entertainment. And it’s our platform to advertise our product. We use Channel I and Ekushey television for our advertising.

Radio:

Radio also a most popular media item in Bangladesh. Many people of our country use it for audio entertainment. And it’s also our platform to advertise our product. We use Radio today, ABC Radio, for our advertising.

Newspapers:Most people of Bangladesh read newspaper in morning after wake up. And for that reason we use most popular newspapers for our advertising. The newspapers are Prothomalo.

CHANNEL IFrequency- Continuous -Alernating BasisCost-100,000

Ekushey TVFrenquency- Intermitted basisCost- 300,000

RADIO TODAYAt Somrame popular ProgCost-30,000ABC RADIOSame policyCost-30,000

PROTHOM ALO5th page- Once aweekCost-30,000

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Sales promotionOffering free samples:

To promote our product we give free samples to our customers to understand our product quality. And it’s a popular promoting policy in Bangladesh.

Coupons

Coupons are also given to our consumers when they are come to buy our product. By that coupon a customer can win an exclusive prize. And for that customer will increase.

Discount on sale:

We give some discount on our sale for getting more customer easily.

Publicity:

Product launches:

On the time of product launches we arrange a meeting or function for our product publicity. By this type action product publicity is increased very much.

We arrange some special events including community involvement with name of our brand. And also for that our popularity will increase.By writing articles on newspapers or magazines we can increase our publicity.By sponsor on local festival fair we can gain publicity.We can also increase publicity by attend on business fair.

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Company website:

By our company website every one can know with us and our products. And they also can buy products from there.

SourcingWe work with three wood suppliers, all local. CTG Wooden Complex supplies most of our oak and a bit of cherry and some other specialty woods. CTG Wooden Complex has been in business for as long as we have, and has given us good service and good prices. This is a good, stable supplier. Golden aero wooden manufacturing is a good second source, particularly for cherry and specialty woods. We've used Dhaka wood for filling in when either of our main two suppliers were short. We also work with a number of specialty manufacturers for furniture fittings, drawer accessories, glass, shelving accessories, and related purchases. Although we aren't a major player compared to the major furniture manufacturers, we are one of the biggest buyers of the custom materials we need.

Product life cycle strategy

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Introduction:

The product life cycle is based use to interpret product and market dynamics. At the introduction stage we launch our product, Furniture. As we are new in the market that’s why our market is small, our sales is low, and our competition is also low. For this reason we need to spend more for our product promotion. For beginning a new business our cost per product will be high. So our prices will also being high. For this reason first year our profit will be low or we will face loss.

Growth: Pacific furniture is serve furniture product but in the growth stage we think our seals will increase than the introduction stage. For our strong marketing strategy people will know about product rapidly and our sales will increase. Here our product market is growing, our sales are high, and our

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competition is on moderate. To compete with our competitors we have to decrease our cost how much we can. At the growth stage our profit will increase day by day. Because in this stage we can decrease all cost of our product. We will expenses more money in advertising and promotion of our product and give much importance in these two sectors. So that more customers will be attract to our product. As our product will move toward maturity stage, the number of competitors will increase day by day. Then it will be challenge for us to stay in the market. In this stage we can create awareness about our product. For this reason we will be able to maximize our product share.

Maturity: In the maturity stage our product will reach top most level of sales. At this time our production cost per unit will be low. Number competitors will be falling in this stage. Here our product market is large, our sales are flattening, and our competition is high. In this stage our profit will me be at top level because in maturity stage (4.6 years) we will reach break event point. In this stage our market share will be increasing and distributors will increase. To hold the market we will launch new product.

Decline: In this stage our product’s sales will decrease day by day. We will expend more for R & D. We will try to extend our product. Different problems will be faced in this stage such as old looks.

SWOT Analysis

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SWOT is the combination of 4 key words, which constitutes the internal and external issues of a company.

Strength:

Strength refers to the competitive advantages and the other distinctive Competencies that a company can exert in the market place.

Weaknesses:

Weakness is constraints that hinder movements in certain directions.

Opportunities:

A marketing opportunity is an area of buyer need in which a company can perform profitable.

Threats:

A threat is challenge posed by an unfavorable tend or development that would lead, in the absence of defensive marketing action, to deterioration in sales or profit.

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A Snapshot of SWOT Analysis:

Strengths Weaknesses

Innovative product

Competitive Pricing

Strong Distribution Channels

Lack of Brand Awareness

Similarity of packaging

Opportunities Threats

Growing number of customers

Creation of Loyal customers

Increasing customer awareness

Cost efficient Technology

Rise of the brand’s value

Increased Competition

Down-ward pricing pressure

Large number of indirect competitor

Economic factor

Copyright threats

Duties and responsibilities of partners

The responsibilities and duties of all partners are given below-

Managing Director

Our companies managing director will be Zia-ur-Rahman Galib. Managing Director (MD) of a company is the leader of an organization. The position of our company will be held by MD. This the highest position in an organization and have the responsibility for the success or failure of that organization. The main duties and responsibility of a MD is-

Welcome new employees in the organization. Making the organization Effective -capable of doing the

right things. Making the organization Innovative for doing new things.

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Managing all forms of incoming and outgoing communication.

Responsibilities of Marketing Manager:

Md. Yeasin Khan is the Marketing manager of our company. The Marketing department’s works are operated by Marketing Manager. Marketing manager’s major duties are-

Determine the eligibility of those wanting to sell at the market based on the rules established by market’s governing body. Actively recruit new producers to expand the variety or products for sale.

Collect rental fees from vendors and maintain accurate records of payment. Many markets charge a flat daily fee, while others collect fees based on a percentage of a vendor’s sales (usually between 5 and 8%)

Assign selling spaces if they are not allocated on a first‐come, first‐served basis. It is recommended to keep vendors in the same space throughout the season to avoid both vendor and shopper confusion.

Advertise and promote the market. Research suggests that freshness is one of the main motivations for buying local produce, and your image should project freshness, quality, and value. Promotions may include special events, banners, signage, radio spots, and free coverage in local newspaper.

Responsibilities of R & D Rafiqul Islam is the R & D manager of our company. The R & D department’s works are operated by R& D manager. R& D manager’s major duties are-

Research for the new product idea or modify the existing one.

Eliminating cost for producing by using different method.

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Design of new product process and type. Focus on improvement, development, modification and

introduction of new product, features, process. Be up to date with new technologies, approach.

Responsibilities of Production ManagerFor this position we have selected Fahima Akter Aurin. She will

also organize the production/operation department of the

organization. The key responsibilities of this position are stated

below –

Control the whole production process. Ensuring raw material is providing timely and made into

finished goods effective. Set standard and targets for each section for production

process. Monitoring the quantity and quality of raw material

used and produced goods of a production line. Strictly monitoring each stage of production.

Human Resource (HR) Manager

Arif Hossain is the HR manager of our company. The human resource (HR) department’s works are operated by HR manager. HR manager’s major duties are-

Recruiting is the main duty of a HR manager. Arrange training programs for those who are newly

selected to join the organization and also or existing employee.

See the performance of the employee. Post advertisement in printed media, Internet or

business magazines to hire new employee. Identification of job, responsibility and duty of the

organization.

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The Responsibility of Finance ManagerSarkar Rajibul Hasan is the Finance manager of our company. The Finance department’s works are operated by Finance Manager. Finance manager’s major duties are-

Finance manager oversees the preparation of financial reports, direct investment activities, and implement cash management strategies.

Develop and implement accounting and internal control systems, standard operating procedures.

To deliver accurate and timely finance transactional processing in finance shared service centre.

A financial manager is responsible for providing financial advice and support to elements.

Formulating strategies and long-term business plan. Developing financial management mechanisms that

minimize financial risk.

Key Responsibilities of AccountantsOmar faruk is the Accounts manager of our company. The Accounts department’s works are operated by Accounts manager. Account manager’s major duties are-

Prepare profit and loss statements and monthly closing

and cost accounting reports.

Compile and analyze financial information to prepare

entries to accounts, such as general ledger accounts,

and document business transactions.

Establish, maintain, and coordinate the implementation

of accounting and accounting control procedures.

Analyze and review budgets and expenditures for local,

state, federal, and private funding, contracts, and

grants.

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Monitor and review accounting and related system

reports for accuracy and completeness.

Partnership AgreementFORM OF OWNERSHIP

The form of the business is “partnership” business and all the partners are responsible for the business. The partners are jointly and severally liable for all debts of the firm.

Partnership Agreement

1. The name of our business will be Pacific Furniture Company. The factory address of the firm will be Gazipur, Dhaka and the office will be in 72, Mirpur, Dhaka-1208

Managing Director

Marketing Manager

R & D Manager

Production Manager

Human Resource Manager

Finance Manager

Accounts Manager

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2. There are 7 Partners of this company. The partners name and address is given below-

Zia-ur-rahman Galib Md. Yeasin Khan

Managing Director Marketing Manager

Phone: 02 8645781 (Ext- 08) Phone: 02 8645781 (Ext- 07)

Mobile: 01558845845 Mobile: 01685485625

Email: [email protected] Email: [email protected]

Web: www.pacificfurniture.com Web: www.pacificfurniture.com

Fahima Akter Aurin Arif Hossain

Production Manager HR manager


Mobile: 01685485625 Mobile: 017215845865



Rafiqul Islam Sarkar Rajibul Hasan

R & D Manager Finance Manager


Mobile: 01925452157 Mobile: 01723512458


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Omar Faruk

Accounts Manager

Phone: 02 8645781 (Ext- 06)

Mobile: 01821454781

Email: [email protected]

Web: www.pacificfurniture.com

3. It’s a furniture business. It will produce furniture and sale them to the local market.

4. The investment amount of the each partner is same. Their total investment is 3 crore tk. And every partner gives 42,85,715tk.

5. The partners will share profit and loss equally.

6. Every partner can withdraw not more than 50,000tk every month.

7. The partners job description and the duties and responsibilities is given below:-

Managing Director

Our companies managing director will be Zia-ur-Rahman Galib. Managing Director (MD) of a company is the leader of an organization. The position of our company will be held by MD. This the highest position in an organization and have the responsibility for the success or failure of that organization. The main duties and responsibility of a MD is Welcome new employees in the organization. Making the organization Effective capable of doing the right things. Making the organization Innovative for doing new things. Managing all forms of incoming and outgoing communication.

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Responsibilities of Marketing Manager:

Md. Yeasin Khan is the Marketing manager of our company. The Marketing department’s works are operated by Marketing Manager. Marketing manager’s major duties are: Determine the eligibility of those wanting to sell at the market based on the rules established by market’s governing body. Actively recruit new producers to expand the variety or products for sale. Collect rental fees from vendors and maintain accurate records of payment. Many markets charge a flat daily fee, while others collect fees based on a percentage of a vendor’s sales (usually between 5 and 8%). Assign selling spaces if they are not allocated on a first‐come, first‐served basis. It is recommended to keep vendors in the same space throughout the season to avoid both vendor and shopper confusion. Advertise and promote the market. Research suggests that freshness is one of the main motivations for buying local produce, and your image should project freshness, quality, and value. Promotions may include special events, banners, signage, radio spots, and free coverage in local newspaper.

Responsibilities of R & D Rafiqul Islam is the R & D manager of our company. The R & D department’s works are operated by R& D manager. R& D manager’s major duties are: Research for the new product idea or modify the existing one. Eliminating cost for producing by using different method. Design of new product process and type. Focus on improvement, development, modification and introduction of new product, features, process. Be up to date with new technologies, approach.

Responsibilities of Production ManagerFor this position we have selected Fahima Akter Aurin. She will

also organize the production/operation department of the

organization. The key responsibilities of this position are stated

below: Control the whole production process. Ensuring raw

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material is providing timely and made into finished goods

effective. Set standard and targets for each section for

production process. Monitoring the quantity and quality of raw

material used and produced goods of a production line. Strictly

monitoring each stage of production.

Human Resource (HR) Manager

Arif Hossain is the HR manager of our company. The human resource (HR) department’s works are operated by HR manager. HR manager’s major duties are: Recruiting is the main duty of a HR manager. Arrange training programs for those who are newly selected to join the organization and also or existing employee. See the performance of the employee. Post advertisement in printed media, Internet or business magazines to hire new employee. Identification of job, responsibility and duty of the organization.

The Responsibility of Finance ManagerSarkar Rajibul Hasan is the Finance manager of our company. The Finance department’s works are operated by Finance Manager. Finance manager’s major duties are: Finance manager oversees the preparation of financial reports, direct investment activities, and implement cash management strategies. Develop and implement accounting and internal control systems, standard operating procedures. To deliver accurate and timely finance transactional processing in finance shared service centre. A financial manager is responsible for providing financial advice and support to elements. Formulating strategies and long-term business plan. Developing financial management mechanisms that minimize financial risk.

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Key Responsibilities of AccountantsOmar faruk is the Accounts manager of our company. The Accounts department’s works are operated by Accounts manager. Account manager’s major duties are: Prepare profit and loss statements and monthly closing and cost accounting reports. Compile and analyze financial information to prepare entries to accounts, such as general ledger accounts, and document business transactions. Establish, maintain, and coordinate the implementation of accounting and accounting control procedures. Analyze and review budgets and expenditures for local, state, federal, and private funding, contracts, and grants. Monitor and review accounting and related system reports for accuracy and completeness.

8. Conforming of all orders by all partners.

9. By board meeting of the partners will resolve the major

and minor problems.

10.When any partner will die or retire or insufficient to stay

with us then the partnership will dissolve. It not mean that

the company is switched off.

11.A partner may, after giving written notice to the other

partners, transfer his/her interest in the partnership to a

revocable living trust of which he/she is the grantor and

sole trustee.

12.When every partners want to disclose the business and if

government will find any unethical work on the business

then the business will closed.

Staffing plan

Strategic Staffing:

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When we are hiring team members, we need to look at them a little differently. Before, we looked for the ability to cover a shift, where now we look for people that can stretch two more levels from where they are today. Delivering our customer experience is not easy. We need to find people who are passionate about Pacific Furniture and our culture Fun, Integrity, Balance, Empower, and Respect."

It's not about getting a group of people to interview; it's about getting the right people. To find these potential employees, we will try new ways to attract and reach the new talent pool of Generation. To support the general managers in the seasonal swing in staffing their stores, the recruitment team had given some stores access to online tools for their hourly team members.

We can get help from many web site, University, Newspaper and Business Magazine to find this more qualified talent pool.

Performance Management:Performance Management including Individual Development Plans (IDP), examines the employee as a whole, measuring skills, behaviors, and results. The mindset will shifted once again; before performance evaluations will be very tactical and activity based, where as today, leaders are asked to dig deeper into the behaviors that drive results.

The focus is more heavily weighed on assessing potential correctly and then developing the plan based on their strengths, weaknesses, or opportunities.

POSITION EDUCATIONAL

BACKGROUND

Experienc

e

OTHER

QUALIFICATION

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53

Managing

Director

MBA

(Major in HR)

7yrs Excellent

interpersonal

communication

skill, excellent

leadership.

HR Executive BBA(Major in

HR)

5 yrs Managerial

experience.

Marketing

Manager

MBA(Major

Marketing)

10yrs Innovative and

hard working

Brand

Executive

M Sc / B Sc 4 yrs Good command in

English

Production

Manager

MBA 4 yrs Command over

Production

Executive Graduate in

Marketing

3 yrs Command over

Ms office

Finance

Manager

MBA, Major in

finance.

8 yrs Experience as a

Decision provider,

financial analyst.

Accountant BBa or MBA,

Major in

Accounting.

3 years Skill in accounting

terms.

National Sales

manager

MBA 7 yrs Excellent

interpersonal

communication

skill, excellent

leadership.

Supervisors Bachelor

Degree

3 years Good knowledge

about Furniture

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54

business.

RecruitmentThis is the process of discovering potential candidates for

actual or anticipated organizational vacancies. Employees can

be recruited from internal search and/or from external search.

However, Pacific Furniture will be recruiting through external

search. External search can be done through advertisements in

newspapers, employment agencies, colleges and universities

and from other professional organizations.

The recruitment process of Pacific Furniture will start by giving

advertisement in newspapers, where the applicant will be told

to collect application form from the main office in Mirpur. The

applicant will have to fill the application form and submit it

along with a cover letter and curriculum vitae.

The search for employees can also be done through online

employment agencies like bdjobs or in prothomalo jobs.

Circulation can also be done in colleges and universities.

Selection Selection activities follow a standard pattern, beginning with

an initial screening interview and concluding with the final

employment decision. The selection process for Pacific

Furniture will follow the steps given below:

Preliminary Screening:The first step in the selection process whereby job inquiries are

sorted. This will consist of two steps: screening inquiries, and

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screening interviews. The applications will be screened and

sorted, and then the selected applicants will be called for an

interview, and the final applicants will be screened and

selected from the final interview.

Final Selection:The final candidates selected will be therefore, be assigned

their work.

Employment Test: After the employees are selected, they will have to go through an employment test. This is not applicable for the blue collar workers but mandatory for the white collared employees and for the sales assistants and the cashiers.

Sales Forecast

For the year 2013

Month/Product name

Bed shed Almira Sofa Dining table

Dressing table

January 50000 60000 120000 20000 20000

February 60000 40000 140000 90000 40000

March 80000 85000 70000 53000 35000

April 150000 65000 150000 85000 25000

May 140000 50000 65000 45000 50000

June 70000 90000 54000 65000 15000

July 90000 80000 65000 75000 5000

August 80000 65000 25000 64000 12000

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September 170000 45000 50000 85000 65000

October 70000 30000 45000 45000 40000

November 75000 70000 65000 150000 38000

December 78000 55000 85000 60000 54000

Total 1113000 735000 934000 837000 399000

Net total 4018000

Sales Forecast - 2013

Total Production : 40,50,000Total Sales : 40,18,000

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57

Explanation of sales forecasting:

By considering several factors we have estimated future sales throughout the year of 2013. We are going to start production and selling from the Jan of 2013. We are launching five products.

Bed shedsAlmiraSofaDining tableDressing table

1) January:Our production and selling will be start from January. As

the market is unaware about the product, so we will produce 25 units.

2) February:

Considering cultural environment and our product capability, we will increase our product 40 and sales will be 35 units.

3) March:We will sustain of production level but the sales will increase 45 units because of increasing awareness.

4) April: As summer started, the factor weather and easy availability of material will increase our production to 75 as well as sales to 60.

5) May:

In this month both production and sales will increase due to middle of the year.

6) June:

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58

We will sustain the production level and sales will be in acceptable level for weather factor the sales will down for some unit.

7) July:As Ramadan will start for end of July, it will affect our sales

positively, it will be 60 units.

8) August:Because of Ramadan and biggest festival Eid-Ul-Fitar, our

sales will be the highest of the year, as we estimated.

9) September:In these months, the sales will be in normal level.

10) October:Two religious festivals will be occurring in this month’s

Eid-Ul-Azha and DurgaPoja. So, the sales will be second highest.

11) November: As because of weather and less material availability, the

sales will decrease.

12) December:For some factors like weather and social forces, the sales

volume will decrease.

Sales Forecast for year 2013-2017

2013 2014 2015 2016 2017

Total Sales 4018000 9854000 14500000

23500000

32000000

Total 4050000 9953000 1500000 2360000 3220000

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production 0 0 0

Bed shed 1113000 2854000 4200000 6500000 10000000

Almira 735000 1900000 3800000 4500000 7000000

Sofa 934000 1500000 2000000 3500000 5500000

Dining table 837000 2500000 3500000 6000000 6500000

Dressing table 399000 2100000 1000000 3000000 3000000

Pacific FurnitureCash flow statement – 2013

Cash in January

February

March April May June July August

September

Cash sales Bed sheds 50000 60000 80000 150000 140000 70000 90000 80000 170000

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Almira 60000 40000 85000 65000 50000 90000 80000 65000 45000

Sofa 120000 140000 70000 150000 65000 54000 65000 25000 50000

Dining table

20000 90000 53000 85000 45000 65000 75000 64000 85000

Dressing table

20000 40000 35000 25000 50000 15000 5000 12000 65000

Total 270000 370000 323000 475000 350000 294000 315000 246000 415000

Collection from A/R

400 300 400 400 80 0 400 400 20

Term loan processed

1000000

1000000

1000000

1000000

1000000

1000000

800000 800000 800000

Sales fired asset

2000000

1000000

Total cash in

1270400

1370300

1323400

1475400

3350080

1294000

2115400

1046400

1215020

Cash out

Rent 300000 300000 300000 3000000

300000 300000 350000 350000 350000

Magi Salaries

732000 732000 732000 732000 732000 732000 732000 800000 800000

Other Salaries wage

192500 192500 192500 192500 192500 192500 192500 193000 193000

Telephone 900 900 900 900 900 900 900 1000 900

Utilities 30000 30000 30000 30000 30000 40000 40000 40000 40000

Repair 1000 1000 1000 2000 2000 2000 3000 3000 3000

License municipal

40000

Insurance 10000 10000 10000 10000 10000 10000 10000 10000 10000

Other Operation

10000 10000 10000 5000 5000 7000 7000 7000 9000

Pay of purchase of

1000000

800000 500000 500000 300000 300000 300000 200000 250000

net asset

Pay of 50000 50000 50000 50000 50000 50000 50000 50000 50000

Income 500000 500000 60000 70000 60000 70000 80000 80000 80000

Pay of A/B 50000 30000 30000 20000 30000 30000 20000 30000 20000

Total cash out

2506400

2206400

1916400

1912400

1722400

1734400

1785400

1764000

1805900

Opining balance

50000000

30000000

30000000

30000000

30000000

25000000

25000000

25000000

20000000

Add : Cash in

1270400

1370300

1323400

1475400

3350080

1294000

2115400

1046400

1215020

(-) Cash out

2506400

2206400

1916400

1912400

1722400

1734400

1785400

1764000

1805900

Surplus 48764000

29163900

29407000

29563000

31627680

24559600

25330000

24282400

19409120

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Pacific FurnitureCash Flow Statement- year 2013

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62

Cash flow statement 5 Years

Pacific Furniture CompanyCash Flow Statement- Year 2013-2017

2013 2014 2015 2016 2017

Cash In

Cash sales 4018000 9854000 14500000 23500000 32000000

Collect from A/R 30,000 50,000 60,000 80,000 2,00,000

Term loan Process 11200000 8800000 10000000 1000000 8000000

Sales of fixed Assets 5,58,000 10,00,000 20,00,000 30,00,000

Other Cash receive 40,50,000 66,00,000

60,00,000 80,00,000 1,00,000

Total Cash in 15351720 18704000

24560000 24580000 40000000

Cash Out

Rent 39,50,000 40,00,000

41,00,000 45,00,000 50,00,000

Mgt Salaries 91,24,000 95,30,000

98,00,000 10,00,000 1,30,00,000

Other Salaried wage 23,12,500 25,00,000

28,00,000 30,00,000 50,00,000

Telephone expense 11,200 20,000 30,000 35,000 50,000

Utilities 4,41,500 6,00,000 7,00,000 8,00,000 10,00,000

Repair and maintenance

License and main. Insurance

1,20,000 1,20,000 1,20,000 2,20,000 4,00,000

Other operating expense

Pay of purchase of fixed assets

45,50,000 50,00,000

60,00,000 70,00,000 1,00,000

Pay of long term loan

6,00,000 6,00,000 6,00,000 12,00,000 1,20,00,000

Income tax payment

Pay of AIP 3,50,000 4,50,000 5,00,000 5,50,000 5,00,000

Total cash out 2,25,32,2000

23,34,000

2,61,80,000

2,88,35,000

3,84,50,000

Opening Balance 325000000

317434520

314094520

315980920

317193920

Ad : Cash In 15351720 20000000

28066400 30048000 36400000

Less: Cash out 22917200 23340000

26180000 28835000 38450000

Sur plus 31743452 3140945 31598092 31719392 31514392

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0 20 0 0 0

Pacific FurnitureCash Flow Statement- year 2013-2017

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Pacific Furniture Income Statement

Pacific FurnitureIncome Statement

For the year 2013-2017

Year 2013 Year 2014 Year 2015 Year 2016

Sales 4018000

9854000

14500000

2350000

Less: Sale return and allowance

-30,000 -50,000 -60,000 -80,000

Net Sales 3,988,000

9,804,000

14,440,000

23,420,0

Cost of goods sold -148500

0

-215000

0

-3250000

3900000

Gross margin 2,503,000

7,654,000

11,190,000

19,520,0

Less: Expenses

Selling Expense 90,000 1,10,000

1,50,000

2,00,000

Administrative Expense

99,000 1,20,000

1,60,000

2,60,000

Depreciation Expense

10,00,000

12,00,000

13,50,000

16,00,000

Utilities Expense 20,000 30,000 50,000 80,000

Miscellaneous Expense

50,000 50,000 80,000 1,50,000

Advertising Expense

10,00,000

10,00,000

15,00,000

15,00,000

-225900

0

-271000

0

-3290000

3760000

Earnings Before Income & Tax

244,000

4,944,000

7,900,000

15,760,0

Income Tax (15%) 36,600 741,600

1,185,000

2,364,00

Net Profit After Tax 207,400

4,202,400

6,715,000

13,396,000

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Pacific FurnitureBalance Sheet

As for year 2013-2017

2013 2014 2015 2016

Asset Current assets :

Cash 4018000 9854000 14500000

23500000

Accounts Receivable

80,000 120000 150000 200000

Total current assets

40,98,000

9,974,000

14,650,000

23,700,

Long term Assets :

Land 7000000 7500000 8000000 9000000

Building 10000000

12000000

13500000

15000000

Machinery 10000000

11000000

12000000

13500000

Less: Accumulate Depreciation

-1096000 -6100000 -6700000 -7500000

Total long term assets

25904000

24400000

26800000

3000000

Total assets 30,002,000

34,374,000

41,450,000

53,700,

Liabilities :

Bank loan 4000000 4000000 4000000 4000000

Net worth 25,862,000

30,374,000

37,450,000

49,700,000

Total liability 30,002,000

34374000

41450000

5370000

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Break even analysis

Break even analysis is a technique widely used by production

management and management accountants. It is based on

categorizing production costs between those which are

"variable" (costs that change when the production output

changes) and those that are "fixed" (costs not directly related

to the volume of production).

Total variable and fixed costs are compared with sales revenue

in order to determine the level of sales volume, sales value or

production at which the business makes neither a profit nor a

loss (the "break-even point"). For our business, it is very

necessary to do break-even analysis. After knowing our break-

even quantity, we will be able to make our business profitable.

Fixed CostsFixed costs are those business costs that are not directly

related to the level of production or output. In other words,

even if the business has a zero output or high

Total Fixed costLand 70,00,000Building 1,00,00,000Equipments 50,00,000Vehicle 60,00,000Machineries 1,00,00,000Furniture 20,00,000Insurance Ex. 5,00,000License Ex. 2,00,000Total Fixed cost 40700000

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Variable CostsVariable costs are those costs which vary directly with the level

of output. They represent payment output-related inputs such

as raw materials, direct labor, fuel and revenue-related costs

such as commission. A distinction is often made between

"Direct" variable costs and "Indirect" variable costs.

Total variable cost :Factory overhead cost

80,000

Transportation Exp 50,000Utility Bill 1,50,000Production payroll 10,00,000Telephone Bill 11,200Advertisement 10,00,000Administration payroll

12,00,000

Total 34,91,200

Total cost = 40700000

Total sales = 4018000

Sales unit = 300 unit

Sales per unit = 4018000/300

= 13393.33

Variable cost per unit = 3491200/300

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= 11637.33

BEQ = 40700000 / (13393.33-11637.33)

= 40700000/ 1756

= 23177.68 unit

Total cost: Fixed cost + Total variable cost

Fixed cost = 40700000

Total variable cost (23177.68*11637.33) = 269726310.8

Total cost = 310426310.8

Total Revenue = 23177.68*13393.33 = 310426316.8

So, TOTAL COST= TOTAL REVENUE

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Figure: Break-even point

Ratio AnalysisRoles 2013 2014 2015

Current ratio Curren Asset/ Current Liabilities

4098000/30002000

9974000/34374000

14650000/41450000

23700000/53700000

0.14% 0.29% 0.35%

Quick or asset Ratio

current asset - inventory - prepaid expense/curent liabilities

(4098000-300000-200000)/30002000

(9974000-700000-200000)/34374000

(14650000-700000-200000)/41450000

(23700000-800000-200000)/53700000

0.12% 0.26% 0.33%

Debt equity ration

debt/equity 2000000/3000000

2000000/3000001

2000000/3000002 2000000/3000003

0.67% 0.67% 0.67%

Operating expense ration

Total operating expense- interest expense

(2259000-200000)/4018000

(1090000-200000)/9854000

(1900000-200000) / 14500000

(2760000-200000)/23500000

0.51% 0.09% 0.12%

Inventory turnover ratio

1. Cost of good sold/ Avg inventory

1485000/660000 2150000 / 660000

3250000/660000 3900000/660000

2.24 3.25 4.92

2. Avg days to turnover

365/2.24 365/3.25 365/4.92 365/5.90

162.22 days 111.96 days 74.04 days

Average collection period

Accounts receivable/Sales

(80000/4018000) * 365

(120000/9854000) * 365

(150000/14500000) * 365

(200000/23500000) * 365

7.29 days 4.46 days 3.79 days

Return on total asset

operating income/total asset

226000/30002000

1090000/34374000

1900000/41450000

2760000/53700000

0.01% 0.03% 0.05%

Return on Equity on investment

Net income/ Share holder equity

192100/7500000 926500/7500000 1520000/7500000 2208000/7500000

0.03% 0.12% 0.20%