17341902 Business Plan

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Business Plan

(U n Me)

Submitted To:

Mr. Manqoosh-ur-Rehman.

Submitted By:

Date: 27/06/09

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Table of contents:

Acknowledgements .................................................................................................................3

Executive Summery: ..............................................................................................................4

General Company Description .............................................................................................6

Mission Statement: .................................................................................................................6

Form of Ownership: ...............................................................................................................6

Industry History: ....................................................................................................................6

Most important Strength and core Competencies: ............................................................7

Variation in price ...................................................................................................................8

Significant challenges the company Faces now and in the near future: ..........................8

Products and services: ...........................................................................................................9Marketing plan: ....................................................................................................................10

Market research: .................................................................................................................10Features and Benefits: .........................................................................................................13

Products ..............................................................................................................................13Services: ............................................................................................................................13

Competition: .........................................................................................................................16

Porters Five Forces .............................................................................................................16Competitive Analysis: ..........................................................................................................17

For competitor A: ...............................................................................................................17For Competitor B: ..............................................................................................................18

For competitor C: ...............................................................................................................21For U n Me: .......................................................................................................................23

Niche: .....................................................................................................................................25

Marketing Strategy: ...........................................................................................................26

Promotion: ..........................................................................................................................26Advertising: ........................................................................................................................26Promotional Budget: ..........................................................................................................26Pricing strategies: ...............................................................................................................27

Location: ................................................................................................................................27

Distribution Channel: ..........................................................................................................28

Operational Plan ..................................................................................................................28

Daily operation of the business: ........................................................................................28Location: ................................................................................................................................28

Organizational chart ............................................................................................................30

Management & organization: .............................................................................................31

Harvest or Exit Strategy:- ...................................................................................................32

Financial Analysis: ...............................................................................................................32

Balance Sheet ........................................................................................................................33

Internal Rate of Return - IRR ............................................................................................34

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Conclusion: ............................................................................................................................34

Acknowledgements

First of all we are thankful to one and only the Almighty Allah for always guiding us in

the thick and thin and giving us strengths and courage to complete this project without Him

nothing would have been possible. Then we would like to thank our parents whose prayers

and support have always been influential in our lives. Then we would like to thank all the

people who directly or indirectly helped us out in this project we would like to thank all the

organizations whose data we used in this project

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Executive Summery:

The company deals in garments business consisting of readymade and customized

products. Products are cotton shirts and trousers. This business is based on Partnership in

which each partner will get each share. The main focus of the company is to provide

customized products according to customer preferences. The services which our business

is giving are Customization, Home delivery, Membership, Free alteration for members,

Special discount package for members.

U n ME garments is a small venture and on its initial stages. It does not have enough time

and finance for primary market research. Keeping in mind the position of the business at

the moment an appropriate strategy would be to conduct the secondary research as it will

not prove to be a burden on the finances of the company. It also will be convenient option

for the company.

Niche market of U n Me is students of UMT hostel and a small segment of a big industry

is focus of operation i.e. UMT hostel which comprises of 500 600 students.

The products including Dress shirts and formal trousers are source of satisfying needs of

target customers.

The profile of target customer includes from middle class, upper middle class, male gender

of age between 18 30 with income level between 8 15k.

The unique corner of the U n Me Garments is that it is accessible for its target market as it

will be operating in the UMT hostel which is the main point of focus. It can easily interactwith its customers leading to various improvements in its operations, and also better

understand the changing preferences of its target customers.

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U n Me Garments will use print media for creating awareness to its customers, because the

print media is the most appropriate strategy for it to reach to its target customers. Also the

limited marketing budget does not allow it to go on large scale marketing.

U n Me will focus on penetration pricing. This price is deliberately set at low level to gain

customer's interest and establishing a foot-hold in the market. This business will deal only

on cash basis

The location of U n Me is very convenient for its target customers to come and have

shopping there. It is located in the heart of its target market. As parking facilities are there

in the hostel which will fulfill the requirements of customer

Daily operations of the business are Up to date financial statement, Proper placement of the

product, Order management, Stock management, Cleanliness.

U n Me will start its operations with the capital of Rs. 0.696 million which will be total

equity based. The loan facility would not be availed. The two bikes costing Rs. 140000 will

be purchased solely for business purposes. The proposed expenditure for the office and

furniture fixes will be closed to Rs. 50,000.

U n Me will sell their products or services through its retail outlets, and through its own

sales force. If U n Me does not get maximum profit than the business go for Exit or harvest

strategy.

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General Company Description

Mission Statement:

To produce innovation, value intensive products by cultivating the creativity and

maintaining satisfied customers and set the standards, improve each day and have some

fun

Form of Ownership:

This business is based on Partnership in which each partner will get 20% each. Written

contract will be made with the help of legal advisor if any one wants to leave his shares, the

shares will be internally divided among other four.

Industry History:

Readymade garment industry has emerged as one of the important small scale industries in

Pakistan. Its products have large demand both at home and abroad. The local requirements

of readymade garments are almost wholly met by this industry. Its exports in 1999-2000

stood at US $ 772 million or 8.5% of the total exports.

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The readymade garment industry started in 70's in Pakistan. With the passage of time and

industrialization, this industry expanded very rapidly. The majorities of the units making

cotton fashion garments are medium and small-size in terms of machines, workers and

output, with a few notable exceptions and scattered throughout Pakistan. The importance of

this industry lies in the value it adds to indigenous raw material - cotton + blended cloth -

thereby substantially increasing the revenue from its sale in the international market.

Most important Strength and core Competencies:

No Legal Barrier:

As it is a small venture and it does not need to get registered.

No competitors in the vicinity:

This is competitive edge for the company to start a business in UMT hostel as no one has

taken an initiative to start business of this nature.

Customization:

The main focus of the company is to provide customized products according to customer

preferences.

Customer service:

The main factors of customer service in which company is going to serve customers are:

Free home delivery

Membership cards

After sale services

Friendly atmosphere

Customization of products.

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Variation in price

Price will be varied according to the levels of customization. There will be no variance in

the price of ready made products. Whereas price will be varied for customized products

according to the size, quality and design of product

Significant challenges the company Faces now and in the near future:

LessCapital:

It is a small venture and more over shareholders do not have enough capital to invest.

Another reason is that the business is in initial stage.

Marketing:

Due to limited capital and shortages of budgets, it is not possible to advertise our brand at

higher level. Because of this, our product awareness in the market will be minimum.

Inexperienced:

One of the challenges is that all the share holders dont have any kind of business

experience moreover the company has no experience of negotiating with different suppliers

and vendors.

New Brand:

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New brand at its initial stage is itself a challenge. As discussed above that due to shortage

of capital we are unable to promote this new brand for better awareness and desired out

comes.

Long term:

The target of the company is to achieve the breakeven in the first six months. From this

point onward we will strive to grow at a constant rate to open a new outlet each year so that

vision of company can be achieved.

Products and services:

Products

Formal shirts and trousers (cotton) with colors, sizes, variety, styles

Services:

Customization

Home delivery

Membership

Free alteration for members

Special discount package for members

Competitive Advantage Competitive Disadvantage

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Customization No awareness

Low Price Small Venture

High quality Un experienced

Easily reachable for target market

Pricing Fee:

Customized trouser

Ready made trouser

Customized shirts 499

Ready made shirts 399

Marketing plan:

Market research:

Market research is necessary for all kind of businesses but especially before the

commencement of new businesses. It clarifies different aspects regarding customers

demand, their behavior, and their buying power, their attitude towards the product, their

likings and disliking. It also clarifies about the potential customers of the business and alsohelps the company to focus on those customers more efficiently and effectively. It will help

a business to identify right opportunity and the time at which to hit these opportunities.

Market research gives the company very concrete information which is close to the

accurate because right information is very necessary regarding target markets, their

demands, their norms and values, ethics related to the business and it enables the company

to minimize the risks.

U n ME garments is a small venture and on its initial stages. It does not have enough time

and finance for primary market research. Keeping in mind the position of the business at

the moment an appropriate strategy would be to conduct the secondary research as it will

not prove to be a burden on the finances of the company. it also will be convenient option

for the company.

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What barriers to entry keep potential new competitors from flooding into your

market?

High capital cost:

It is not a barrier for the new competitors as any one can start with a low capital.

High production cost:

It can be a barrier and can not be a barrier because it depends on the references of the

business entity.

High marketing cost:

Marketing is not a barrier for this business because a small business does not require

marketing at a bigger level.

Consumer acceptance/Brand recognition:

It can be a barrier because it is always difficult for a new brand to capture the target market

and due to low marketing budget it is almost impossible to create a brand recognition at

initial stage.

Training/skills:

It can be a barrier for new company because if existing company have good marketing

skills, communication skills and technical skills related to garments etc then it will alwaysbe a barrier for new company to compete the existing company.

Unique technology/patents:

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Because it is a small business therefore it doesnt require any unique technology and

patents.

Shipping costs:

Shipping cost is not a barrier. Because it is a small business and usually small businesses

not go for such big segment.

Tariff barriers/Quotas:

It is also not a barrier because at this small level no legal barrier, government intervention,

taxes are involved.

How could the following affect your company?

Change in technology:

There are two ways of technology change

Positive

Negative

If positive change occurs i-e development in technology it will result in increase in

production whereas decrease in production cost less labor force which will decrease labor

cost, increase quality, new innovative style and design occurs, reduced lead time and

increase in flexibility and vice versa for negative change.

Government Regulations:

There is no involvement of government in our business because it is a small business and it

is not opening on a large scale. This business is just for the selected and specific areas.

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Change in your Industry:

It will not affect if there is any change in this industry because our business is based on

customized products as well and due to this new trends and fashion will be adopted

accordingly.

Features and Benefits:

Products

Formal shirts and trousers (cotton) with colors, sizes, variety, styles.

Services:

Customization

Home delivery

Membership

o Free alteration for members

o Special discount package for members

Customization:

Features BenefitsDesign flexibility Any fashion desire of customer can be

fulfilled

Size variation Different demand of sizes can be met

Various color combination Different demand of colors can be met

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Stuff of customer choice Getting stuff of customers choice

All these would lead to the higher customer satisfaction resulting in building customer

loyalty.

Home Delivery:

The important feature of home delivery is that it saves time of the customer, convenient for

them and it is value added service for our business.

Features Benefits

Time saving for customers Customers dont have to go to the shop

convenience

Membership:

Features Benefits

Customer record Customer can order from anywhere with a

simple phone call

Different packages Discounts, money back guarantee

Updates Customer attraction

Products:

Formal shirts

Trousers (cotton)

Formal Shirts:

Features BenefitsPlain design For Official use

Check design For casual and official use

Trousers:

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Features Benefits

plate less For formal and casual use

Wrinkle free No need to iron

Casual trousers comfortable

Customers:

Age:

18-30years

Gender:

Male

Location:

UMT Hostel

Income Level:

8-15k

Social class/occupation:

Upper middle class

Middle class

Education:

Undergraduate and post graduate

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Competition:

Porters Five Forces

Bargaining power of Buyers:

Clothing is one of the three fundamental human needs. Everybody needs to buy clothing.

Clothing includes wearing apparel such as shirt, pants, among others. Buyers usually buy in

smaller quantities and do not purchase regularly. Buyers can also easily switch from one

competitor to another in case of product dissatisfaction or if they just want to try other

brands. The idea of custom-fit pants is still a fresh concept in the garments industry and U

and Me is dealing in customized product too; particularly in our business only few buyers,

particularly those in the upper middle, upper class, avail/can avail these products because

of the products perceived high-end status and high price.

Bargaining power of Suppliers:

U and ME will be dealing in pants and shirts which is made of cotton. Pakistan is likely to

remain the largest supplier of cotton and U n ME will buy cotton locally.

Substitute Products:

Ready-made retail products are considered substitute for custom-made clothing. Moreover,

the trend of many universities and offices which uses trousers and jeans has been replaced

by Formal pants. The fabric could also be replaced by other fabrics such as those used in

khaki pants and pants.

Barriers to entry:

Barriers to entry include local policies implemented in the textiles and clothing industry.

As far as U n Me is concerned there is no as such barrier in entering market.

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Rivalry:

The garment industry is comprised of many players, both operating on a large scale and

small scale basis. Customers are free to change their suppliers thus creating high

uncertainty for competitors. In terms of origin and operating styles, competitors may range

from boutiques, specialty stores, bazaars, direct selling agents, department stores to big

malls. U and ME is a small venture and have the big threat of having new competitor in the

market.

Competitive Analysis:

For competitor A:

Factor Strength Weakness Competitor A

(D for Denim)

Importance to

customer

Products Dress pants &

shirts

Price Shirts: Rs

499-600

Pants: Rs 795

Quality 100% Quality

Checked by

company

Selection Market trend

Customer

demand

Service Alteration

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Shirt fitting

Reputation Good

Customers

come from

different cities

Location Kareem

Market

Appearance Designer

(itself)

Sales Method At spot sale

Credit Policies No credit

policy

Only cash

basis

For Competitor B:

Factor Strength Weakness Competitor B

(Free Edge)

Importance to

customer


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shirts

Price Pants: Rs 550

(normal)

Pants: Rs

1650 (high)

Shirts: Rs

450-650

Quality 100% Quality

Checkedwashing

2-3 washing

& check

Selection Market design

Market trend

Customer

demand

Service After sale,

exchange the

default

product

Shirt fitting

Reputation 2-2.5 years in

launching

their brand

Good

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reputation

Customer

trust on brand

Location In Kareem

Market.

Placement in

Aqsa

garments with

some other

brand like

River Stone,

Radiation etc

Appearance By self design

their products



policy

Only cash

basis

Advertising Through

Magazine

(Teen club)

Catalog

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For competitor C:

Factor Strength Weakness Competitor C

(Brands)

Importance to

customer


shirts

Cotton pants

& trousers

Price Dress Shirts:

Rs 450-650

Dress Pants:

Rs 1050

Quality Import the

products from

China,

Thailand &

Indonesia

Checked by

company

Selection By owner

itself

Market trend

Changing

preference of

people

Service Give six

months

warranty of

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Bubble &

Collar

Reputation Famous

Location Kareem

Market

Launch 1st

shop in

Islamabad &

2nd shop in

Lahore.

Appearance Designer

(itself)

Sales Method Prices are not

fixed.

Bargaining

Normal profit

margin


policy

Only cash

basis

Advertising Through

cables.

Poly bags

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Catalog

Banners

For U n Me:

Factor Strength Weakness U n Me Importance to

customer


shirts

Cotton trousers

Price Shirts: Rs 350-

375

Pants: Rs 550

Trousers: Rs

500-550

Customized

shirts: Rs 425-

450

Customized

trousers: Rs

600-650

Quality

Qualityassurance by

checking our

products by

washing twice

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or thrice

Selection Market trend

Customer

demand

Service Free home

delivery

After sale

service

Warranty (6

months)

Membership

Reputation No

Location UMT Hostel

Sales office/outlet: Room #

44

Storage room:

Room # 242

Appearance Designer (itself)


Home delivery

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Credit Policies No credit policy

Only cash basis

Advertising Through

banners

Leaflets

Pamphlets

Niche:

A niche market is the subset of the market on which a specific product is focusing on;

Therefore the market niche defines the specific product features aimed at satisfying specific

market needs, as well as the price range, production quality and the demographics that is

intending to impact.


is focus of operation i.e. UMT hostel which comprises of 500 600 students. The main

focus from these numbers is the business students and professionals. The products

including Dress shirts and formal trousers are source of satisfying needs of target

customers. The profile of target customer includes from middle class, upper middle class,

male gender of age between 18 30 with income level between 8 15k.

The unique corner of the U n Me Garments is that it is accessible for its target market as it

will be operating in the UMT hostel which is the main point of focus. It can easily interact

with its customers leading to various improvements in its operations, and also better

understand the changing preferences of its target customers.

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Marketing Strategy:

Promotion:

Banners.

Leaflets.

Pamphlets

Word of Mouth.

Advertising:

U n Me Garments will use print media for creating awareness to its customers, because the

print media is the most appropriate strategy for it to reach to its target customers. Also the

limited marketing budget does not allow it to go on large scale marketing. As it is operating

on small scale and the target market can be reached through them, there is no need of using

other media for advertising. And whenever new products will arrive, new packages for

sales promotion U n Me garments will go for advertising using appropriate mediums.

It is an effective strategy because pamphlets will be displayed on the notice boards which

are unavoidable for everyone. It is a business operating on small scale requiring marketing

on small scale. The marketing budget is weak allowing only marketing on small level. The

target market is small so print media is the appropriate medium to create awareness for

small portion of market.

Promotional Budget:

10% of the total capital will be allocated for the above mentioned advertising. More portion

of the marketing budget will be spent on Leaflets, pamphlets with very small proportion for

banners.

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Pricing strategies:

U n Me will focus on penetration pricing. This price is deliberately set at low level to gain

customer's interest and establishing a foot-hold in the market.

This business will deal only on cash basis

Location:

In the world of business, location is extremely important. Most of us have heard the saying

"location, location, location". There is a reason it is a saying and it is important for

everything from the perfect photograph and romantic settings as it is in the world of real

estate and business success. Spend time scouting out locations that you feel would be great

places to open a coffee franchise business and ask yourself the following questions.

Is this is a high traffic location? Most people are rather lazy by nature. You want to find a

location that people will drive by often.

www.linkroll.com



in the hostel which will fulfill the requirements of customer. It also posses a required space

for an effective outlet. It has sufficient display area, shelf space, trial room, and mirrors etc.

This location is also suitable and consistent with the image of this business because it is

emphasizing as indoor business and this location is consistent with the nature of business,

where U n Me can easily connect with the target audience. U n Me providing such a

space which will fulfill the demand of customers as it will be approachable to the customer.

It will provide friendly atmosphere for them as such, U n Me will be the only leading

company dealing in garment industry in the UMT hostel, where there is no such kind of

competition. The nearest competitor to the location of U n Me is Kareem market.

Therefore location will be a better competitive edge for U n Me.

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Distribution Channel:

U n Me will sell their products or services through its retail outlets, and through its own

sales force.

Marketing strategies of U n Me is very effective as it is closely connected to the target

customer. U n Me is using catalogs, brouchers and banners for its advertisement and

promotions. It is also suitable with the nature of the business as it will require fewer

budgets which will reduce the cost of business. distribution strategies are also effective

because garment business deals with direct sale practice. Pricing strategies are also flexible.

U n Me is using penetration method for its pricing as its target market is the middle class

income group.

Operational Plan

Daily operation of the business:

Following will be the daily to daily operations of the business:

Up to date financial statement.

Proper placement of the product.

Order management.

Stock management.

Cleanliness.

Location:

Yes, it is convenient for customers to come and have shopping here. We are located at the

heart/middle of our target market.

As parking facilities are there in the hostel which will fulfill the requirement of customers.

We also possess a required for an effective outlet. We have sufficient display area, shelf

space, trial room, mirror etc. This location is also consistent wit the image of this business

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because we are emphasis it as indoor business. And this location suits with the nature of

business. Where U n Me can easily connect with the target audience. U n Me is providing

such a space which will fulfill the demand of customers as it will be easily approachable to

the customers. It will provide a friendly atmosphere for them. As such U n e will be the

only leading company dealing in garment industry in UMT hostel. Where there is no such

kind of competitor. The nearest competitor to the location of U n Me is Kareem Market.

Therefore location will be better competitors edge for U n Me.

Legal Environment:

There is no legal environment because it is a home based business.

Permit:

Permission from UMT management and administration.

Health, workplace, or environment regulations:

No

Special regulations covering your industry or profession:

No

Zoning or building code requirements:

No

Insurance & Trademark:

With the expansion of our business, we will go for trademarks & copyrights then insurance

will be part of our plans.

Personnel:

Number of employees:

8 (including 2 tailors).

Type of Labor:

Both skilled and professional.

Where do you find new employees?

Quality of existing Staff:

Six are skilled & qualified while two are skilled & professional.

Pay Structure:

Profit will be shared between 6 shareholders after paying all the expenses.

Training methods & requirements:

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Not required.

New hiring:

As we have described in our goal that they will strive to open a new outlet every year for

this purpose, it will definitely require some professionals and skilled person who have

Market experience.

Organizational chart

Who does which tasks?

Marketing & Sales department:

Mr. Ahad Ali will be the head of this department with Mr. Mahed Aamer & Mr. Fazal

Hussain will be accompanying him.

Management Department:Mr. Anees ur Rehman is the head of management department with Mr. Kazim Amjad will

accompanying him.

Finance Department:

Mr. Yasir Naim is the head of finance department with Mr. Ahad Ali will accompany him.

Contract workers:

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For the production department, we will have contract workers for assistance.

Management & organization:

Manages Business on daily basis:

Finance: Mr Yasir.

Operation: Mr. Kazim

HR: Mr. Anees

Marketing : Ahad Ali

Quality Assurance:Mahed Aamer

Experience by person to business:

All the members of each department dont have any practical experience regarding their

respective field but the positive point being the student of Business Administration, they

know the strategies and policies of operating & launching a business & how to make it

successful by utilizing their skills and knowledge.

.

Distinctive competencies:

Way of communication

Customer care

Friendly environment

Customer relationship management

Plan for continuation of Business:

In case, if any shareholder want to withdraw from the business, the other members try to

cover the gap by utilizing their efforts & if the situation arises when U n Me will need a

specialist person then they will go for new hiring.

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Harvest or Exit Strategy:-

If U n Me does not get maximum profit than partners of U n Me will decide for

exit. The time is come when partners will not be able to get more through this

business then the partners will look to harvest it, U n Me will be sell it to anotherentrepreneur who will be interested in this business. Favorable exit strategies are to

sell the business, U n Me sell their assets of the business or merge it with another

business and if there come such situation when there is no one in the Market to

purchase it and dont want to Acquire or merge with our Business then partners will

go for another strategy that will be to sell out the assets to different shops.

Financial Analysis:

U n Me will start its operations with the capital of Rs. 0.696 million which will be total

equity based. The loan facility would not be availed. The two bikes costing Rs. 140000 will

be purchased solely for business purposes. The proposed expenditure for the office and

furniture fixes will be closed to Rs. 50,000.

The proposed capacity utilization for the first year is 80% which would yield sales about

Rs. 3.8 million which could be a perfect start for an organization. The COGs for the first

year calculated are 141,000 and so it would generate a gross profit of Rs. 3,695,000. Theproposed tax provision rate is applied at 15% on the operating profit. And at the end of the

first year the projected net profit for the organization should be Rs. 3,033,000. The ROE

and ROI will be 436.

Return On Equity - ROE

The amount of net income returned as a percentage of shareholders equity. Return on

equity measures a corporation's profitability by revealing how much profit a company

generates with the money shareholders have invested.

Return On Investment - ROI

A performance measure used to evaluate the efficiency of an investment or to compare the

efficiency of a number of different investments. To calculate ROI, the benefit (return) of an

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investment is divided by the cost of the investment; the result is expressed as a percentage

or a ratio.

www.investopedia.com/terms/r/returnoninvestment.asp

Cash flow

A cash flow statement orstatement of cash flows is a financial statement that shows how

changes inbalance sheet and income accounts affect cash and cash equivalents, and breaks

the analysis down to operating, investing, and financing activities.

http://en.wikipedia.org/wiki/Cash_flow_statement

The projected cash flow statement for the first year at 80% capacity utilization states that

company which started at Rs. 0.696 million will have total sources of fund 3.6 million. The

opening cash balance from the start of the business is Rs. 0.5 million which will make the

closing cash balance of the company about Rs. 3.3 million which include the deducted

depreciation value. If at the end of the year the company is able to achieve this target it

would be an ideal situation for the company which started at a very low level. If this

projected target the plan of opening a new outlet after an year could be achieved as the

company would have enough cash resources. This would help build the reputation of the

company.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities and shareholders'

equity at a specific point in time. These three balance sheet segments give investors an idea

as to what the company owns and owes, as well as the amount invested by the shareholders

http://www.investopedia.com/terms/b/balancesheet.asp

The projected balance sheet of the company for the first year at 80% capacity utilization

indicates that it would have assets of Rs. 3.7 million consisting of Rs. 3.5 million of current

assets and close to Rs. 0.2 million of fixed assets. The accumulated depreciation for the

year would be Rs. 38000 which would decrease the value of fixed assets by Rs. 0.15

million. At the end of 9th year the value of fixed assets would be less then the depreciation

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value which indicates the buying of new fixed assets. The equity and liability side indicates

the same value which totally consists of equity as no loan facility or accounts payable

would be utilized. The retained earnings for the year one would add up in the capital

invested at the start of the year which would make it Rs. 3.7 million.

Internal Rate of Return - IRR

The I.F.R.R for the company is 191.707%.

The internal rate of return (IRR) is a rate of return used in capital budgeting to measure

and compare theprofitability ofinvestments. It is also called the discounted cash flow rate

of return (DCFROR) or simply the rate of return (RORThe discount rate often used in

capital budgeting that makes the net present value of all cash flows from a particularproject equal to zero.

http://en.wikipedia.org/wiki/Internal_rate_of_return

The break even analysis of the company shows that if a company covers 16.2% of the total

capacity utilization it would be enough for the company to reach its break even that would

prevent it from the danger of loses. But the company has to perform really well to achieve

this target as it would be not easy in any way. In order to calculate the break even for the

company the total fixed cost is divided by the contribution margin multiplied by 100. This

would generate break even for the company. This break even analysis is based on the 100%

capacity utilization by the company.

Conclusion:

The company deals in garments business consisting of readymade and customized

products. U n ME garments is a small venture and on its initial stages. It does not haveenough time and finance for primary market research. The products including Dress shirts

and formal trousers are source of satisfying needs of target customers.


is focus of operation i.e. UMT hostel which comprises of 500 600 students. Using of

print media is affective for U n Me Garments for creating awareness to its customers,

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because the print media is the most appropriate strategy for it to reach to its target

customers. Also the limited marketing budget does not allow it to go on large scale

marketing. The business deal only on cash basis. Penetration is used for pricing. This price

is deliberately set at low level to gain customer's interest and establishing a foot-hold in the

market.



in the hostel which will fulfill the requirements of customer. The unique corner of the U n

Me Garments is that it is accessible for its target market as it will be operating in the UMT

hostel which is the main point of focus. It can easily interact with its customers leading to

various improvements in its operations, and also better understand the changing

preferences of its target customers.

In case, if any shareholder want to withdraw from the business, the other members try to

cover the gap by utilizing their efforts & if the situation arises when U n Me will need a

specialist person then they will go for new hiring.

There are different department in U n ME .All the members of each department dont have

any practical experience regarding their respective field they know the strategies and

policies of operating & launching a business & how to make it successful by utilizing their

skills and knowledge.

Documents

17341902 Business Plan