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7/29/2019 Business and Financial Plan
1/20
Small Business and Entrepreneurship
Business Plan Structure
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Table of Contents
1. Business Name & address.......................................... ........................................... Pg 3
2. Proprietors Name &Address............................................................................. Pg 3
3. Business Type ................................................................................. Pg 3
4. Business Activity............................................................................... Pg 3
5. Business Vision and Mission................................................... .......................................... Pg 4
6. PEST Analysis................................................................ Pg 4
7. Government rules and regulations.............................................................. . Pg 5
8. Rationale for business launch................................................ Pg 5
9. Market Size and growth................................................................ . Pg 5
10. Why Delhi has been selected for Business Launch........................................................... Pg 611. Target Audience................................... ............................... Pg 6
12. Competitors Analysis........................................................... Pg 7
13. Self Analysis.......................................................... Pg 8
14. Competitive Advantages.......................................................... Pg 9
15.Advertising & Promotion Strategies .......................................................... Pg 10
16. Pricing Strategy......................................................... Pg 11
17. Source of Finance Available......................................... Pg 11
18. Key People and Job Roles......................................... .. Pg 12
19. Financial plan....................................................................... Pg 13
20. Sensitivity Analysis............................................................................................................. Pg 18
21. Long Term Strategy.................................................................. Pg 1922. References............................................................................................................... Pg 20
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BUSINESS PLAN STRUCTURE
Business Name : Snackerz
Address : Block C, Okhla Industrial area Phase II, New Delhi, India, 110020.
Proprietors Name : Mr Mateen Ahamed Pasha
Address : N3, N Block, Greater Noida Secotor 18, Noida, UP, India, 201301.
Business Form : Fast Moving Consumer Goods (Food Sector).
Business Activity
Snackerz is an Indian based food industry manufacturing snack foods and is located in the Okhla
Industrial Area of New Delhi. The company is owned by Mr Mateen Ahamed Pasha and was initiated in
2012. The company Snackerz desires to be amongst the top snack food manufacturing companies. The
company is also making its best possible effort in improving the quality of the snacks that it produces to
increase the market share of the product and building the decent image of the brand in the Indian
market. Consequently the quality of the products that the company manufactures has been used to
highlight the brand image of the company in marketing and future business strategies. The company
uses the cutting edge technology machines foot the manufacturing of the food products in the industry
as to reach the high quality standards and long lasting freshness in the products. The availability of the
product ofSnackerz is aimed to be in all leading retail outlets and supermarkets across India.
Snackerz has planned to expand its business in whole of the Indian region but initially it focus to build a
strong brand image in the local Delhi and the neighbouring regions to set up its market and get the hold
of target audience. In the preliminary stage the marketing of the products would be through the leading
supermarkets and big retail outlets in the region and then steadily increase the stock availability in the
local retail outlets of the city. The range of the products in the company comprises of initiating with the
salted and flavoured potato crisps blended in the Indian spices as the people of India like the hot
seasonings in taste. Along with the potato crisps as its primary food item the company also produces
Indian snacks such as Baltic mixtures made up of gram flour, regional snacks of the Indian territories as
such in all there is a range of 16 different food items in the product range of the company. The company
at this stage plans to set up its business in the Delhi and NCR around state but it in the future it desires
to get the hold of complete Indian market, the availability of its product in every state of the country
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and then successively export the products to foreign countries where there is a habitat of the Indians in
the world as they would be more successful over there.
Business Vision and Mission
Vision
As the company is most focused on the quality of its products, thereafter the motto of the
company could not be irrelevant to quality as it says, International quality with Indian Taste.
The company desires to provide its customers with best of the quality and health from its
products.
The company uses the cutting edge technologies and manufacturing machinery for the best
production of food items.
The company also focus of the buying behaviour of the people as thus follows the stint of the
traditional taste in all of its products.
Mission
The mission of the company is to provide healthy and past time food in the form of tea time
snacks to the people.
The mission of the company is spread its products globally and set as an icon in the name of
Indian snack foods.
The company also desires to expand its operations in within most of the parts of India within the
next two years.
The company aims to build Snackerz as the leading brand name and the peoples choice in the
field of tea time snacks.
PEST Analysis
Political: Delhi is the capital of India, and is amongst the top standardized territories of Indian region,
and the government in the Delhi comprises of the Central which the UPAs government party named
Indian National Congress, with the major political people including the members of parliament living inDelhi, it is most important to focus on the standards of any manufacturing products as it is the question
of standard of the country showcased from the capital.
Economical: Delhi is economically well equipped being the capital of the country, as the most of the
higher class and business class families living in this place the standard of living of people is much higher
than the other regions of India and also from other some parts of the world.
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Social: Delhi is the Second most populated city in India, as according to the world bank report conducted
in 2011 census and thus the number of target audience would also be more as compared to any other
city therefore increasing the sales of the product which could instead be launched in any other industrial
region of the country and remaining limited to the surroundings of the product manufactory.
Technological: The capital of the country has many industrial areas surrounding the region as thegorgon industrial area, Okhla industrial area, and other surrounding areas therefore the area is well
equipped with the latest technologies and industrial tools used in todays era either for industrialization
or for corporate.
Government Rules and Regulations
As per the new rules in the Delhi State Industrial and infrastructure development corporation (DSIIDC)
there has been some policies implemented for the industrial sectors and manufacturing companies
amongst which some are as follows:
Mr Cretan Singh, the lead of the Bureau of Energy focus on the all round energy savings in the
industrial sectors in Delhi.
The foreign direct investment is permitted up to 100% in the Delhi and NCR regions.
The policy for the distillation of alcohol has also been announced recently and the FDI of 100% is
permitted under direct route by the licensing authority.
No particular license is further required by most of the food companies other than some
exceptions in the liquor and heavy and bulk food processing companies.
Also the custom duty rates have also been reduced by the government on food processing units,
intermediates and the products to be exported.
Rationale for Business Launch
The owner of the company Mr Mateen Ahamed Pasha has been a successful entrepreneur in setting up
some other forms of business as well which are running at a great pace today, similarly as some of the
factors which inspired him to launch the business are as the lack of the single operational brands to have
a large product range in Tasty and traditional snacks. Also there are very less number of know brands in
the India which are common in the different states as we move from the north to south the taste and
choice of the people changes accordingly, Mr Pasha saw the requirement of a brand which could satisfy
all the needs of the people loin g in a snack which is at the same time healthier, fresh, tasty and
traditional.
Market size and Growth
The size of the market for the company is very huge as Delhi is one of the most populated cities in the
world which being the capital of the country is considered as a state. Furthermore it is the second most
populated place in the country, with the massive number of people belonging to the surrounding areas
and the national capital region. There are millions of local workers or immigrants visiting Delhi everyday
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for different purposes like business, work, education and tourism. As far the industries and business
models are concerned these are increasing everyday in the Delhi region and so the competition between
the different companies per day. More and more companies are coming into operations each day and
the existing companies are changing their marketing strategies to get the best possible output from
them and generate heavy revenues overtaking the market share and to improve their brand image.
The size of the market in Delhi could be estimated through the fact of the continuous rivalries between
the same business model owners implementing new market strategies and approaches to get the better
output and sales of their products. Also there has been a tremendous growth in the food and retail
market of the country and that as well in Delhi is massive being the capital of the country attracts lots of
opportunities and scope to the business investors from the different parts of the country and thus
increasing the ratio of the industries and food processing companies in the same business model.
Why Delhi has been selected for initiating the company
There have been several reasons for the selection of Delhi in setting up of the industry such as being the
capital of the country it is the hope of opportunities and also the scope of the company is huge as after
building a good brand image in this region means the through acceptance of the company as a reputed
and peoples choice brand in snacks. Also the industrial market of Delhi are very good for settling up of
an industry also being a national capital it does not rely on the limited supply of electricity, water and
other resources required. Also Delhi is globally well connected to other countries therefore the import
and export of the goods is easier and the custom and duty tax are less if compared to the other parts the
country the reason being this being the rule of the central government and the habitat of the most of
the members of parliament of the nation.
Target Audience
The prospective customers of the company would be initially the local residents of Delhi, and once
successful the company will focus on national expansion and global expansion respectively. Therefore
the local residents of Delhi are used to see many of the companies launching one day and closing some
days after. Therefore there would be certain rules and policies applied by the Snackerz to prevent the
image of the company to be outlawed from the market and overshadowed by any other powerful and
economically well sufficient company to take over our companys strategy and ride in the market withease.
Initially the target audience is the local Delhi people but in future as the company expands its operations
the customers identity would be changing as the company move from the north region of India to the
southern region. Beyond this domestic expansion when the company plans to make a international
debut it would be initiating its first steps in the gulf countries as the people of these regions like to have
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the same type taste as Indians and other south east Asian countries like. Therefore the company should
focus on the traditional taste of the Indian snacks and seasonings according to different regions in the
country.
Competitors Analysis
There are a huge number of competitors which are available in the market and they could be classified
on the basis of different criterion such as their brand image, stability in the country since a long time,
pricing strategies, marketing campaigns, etc. Some of the most famous brands which are the biggest
competitors to the company are as follows:
Name Strengths Weaknesses
Haldirams Strong hold in the national and
international market, only company to
be popular in the world and is known
widely for its Indian traditional snacks.
Has taken up a long time
serving people with the same
taste and the people now are
demanding for the new taste
in the same items and needs to
be more spicy and traditional
rather and standardized.
Bikaner Second most popular snack brand in
India after haldirams and had been
existing since more than a century yet.
Gives the taste of the Gujarat
region, whose people prefer
sweetness in the snacks
inspire of being salty and
spicy.
Unites foods Put Ltd The company produces handmade
snacks which consists even of dairy
products therefore they could be over a
longer duration and needs to be
consumed within two three days of
manufacturing or would be damaged.
The time limited lasting of the
products is the main concern
of the products as they cannot
be exported to surrounding
areas, rather they could only
be supplied to limited
distributors in the
surrounding.
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Crusty International The company was established in the
year 1995 and has been practicing the
production from ayurvedic products so
as to attract people in the verse of
health and quality. Crusty international
also produces health drinks and other
food additives and edibles rather than
just the snacks and has its operations
overseas as in Canada.
The company has a vast
product line up which makes
it a jack of all but it has failed
to make a commandment in
any particular product known
by its brand name or is most
popular than the other
company products.
Evergreen Carbohydrates Put Ltd The company is known for its selling of
the ready to eat snacks in loose format
to be used by any other company withits brand name as in wholesale. The
company also exports a large quantity
of its production to overseas.
The production that the
company does of the food
products is utilized by othersuccessful business models
and they sell the products for
less enjoying a good profit,
instead if the company uses its
own manufactures in its own
name, than it could be better
for the company to build
better brand image.
Self Analysis
Strengths Weaknesses
The main strength of the company is the quality
empowerment and its mission to provide its
customers with the best product available in the
market
Providing the better quality product
requires the involvement of new
technologies and tools for fast and speedy
production rate along with the quality
product thus obtained.
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The company carries forward the concept of the
traditional taste of the Indian sub regions and its
values in the snacks naming it after the name of the
region such as Punjabi Mix, Guajarati Mix, etc.
Snackerz uses the latest and cutting edge
technology in respect of providing propel with the
best of the quality and freshness regarding the state
of the product.
The regional or the local brands of the
particular state has its own favourites
which is difficult to compete with because
the people always prefer the locals ratherthan the one produced at other placed and
stored for a longer duration instead of the
freshly produced.
Being located at the industrial area of
National capital region the cost of
production of the products increases
automatically as being located in the prime
location of Delhi
Competitive Advantages
The advantages to the company is that being a Delhi based company and amongst the very few of other
companies other the big brand names like Haldirams and Bikaner which do have the high price ranges
even Snackerz will provide its customers with the same product in the less price. There are also the
technological advantages to the company such as follows:
As the company uses the latest tools and manufacturing machineries in the production of the
snacks it gives a specific standard to the different products of the company as far as the shape
and size is concerned.
Using of the latest technology tools can also provide the company to reduce the emissions of
toxic gases in the atmosphere and reducing the wastes causing degradation, therefore more
supportive from the government.
More quantity can be produced per minute and less human capital is required to maintain the
production thus reducing labour costs.
Following of national and international standards and health and safety as conveyed by world
health organisation.
The freshness and the lasting of the product could be increased as there are most of the work
done by the machines and no physical contact of the labours on the food directly.
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Advertising and Promotion Strategy
Advertising Strategies
The advertising strategies of Snackerz is not based on any television or any sort of advertisement in the
print media rather it focuses on advertising the product in the retail markets and supermarkets. The
company has planned to promote the product through in house promotions and other similar offers to
the customers also the company has planned to promote the product on the cashing point and the
entrance of the super markets so as to increase the visibility of the company in the first sight of the
customers letting them to try out the product. Furthermore there have been some strategies that the
company has planned to follow to promote the products which includes follows:
The advertisements of the new company launched and the concerned product in the entrances
and the bill points of the supermarkets which the first and last contact of vision of the
customers and are considered to be the most strong points of sales.
The advertisements could be made on the carry bags and the trellis used by the customers. Focussing on the health and nutrition factors of the product as customers are most concerned
about these factors nowadays.
The carry vans or the vehicles used by the supermarkets for delivery could show the
advertisement of the Snackerz.
Introducing the prize money offers such as on purchasing the product and sending a text
message of the code found inside the wrapper of the snack.
Leaflets to be made available to the customers outside big retail stores displaying the latest
offers.
Promotional Strategy
For making a respective place and holding a share in the market in the relevant business model it is
necessary for the company to introduce promotional offers for the customers to increase the sales and
make the people aware about the product. Some of the offers which could be used for the promotion of
the company as well as the product may be following:
Snackerz combo: Such an offer may available to the customer allowing him to either choose the
any of the two different or same snack at the discounted price attracting customers to buy two
packs at a time such as if a pack of snack cost Rs 15 each then the combo pack is available at Rs
25 for two of any of the customers choice, therefore a saving of Rs 5.
Snackerz multi pack: Similarly the customers who show loyalty towards the brand should be
awarded as by giving a free pack of snacks. Such as if a customer buys 5 packs of snacks at a
time then he could be given one pack for free.
Snackerz weekly draw: There should also be a prize scheme runner by the company which
attracts the customers to buy the snacks such as it could be a weekly or a monthly draw for the
customers with which they can get prizes by sending the codes inside the wrapper of the snacks
through text and if selected randomly by the computer should be given prizes.
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Pricing Strategy
Snackerz is marketed with the tagline of International quality with Indian taste which describes as it is
providing superior quality. Certain factors such the base of the company in Delhi industrial area and the
use of the latest food manufacturing tools and machineries in the production of the snacks which also
produces the very good quality snacks which are speedier in production and long lasting fresh and
consists the taste of Indian blend. Therefore the prices of the Snackerz products is liable to be
competitive with the other major competitors such as Haldirams and Bikaner but not more than them,
furthermore at the initial stage the company should provide promotions to the retail stores and give
offers to the customers to increase the sales of the product and let it be popularize amongst the local
residents of Delhi. Some of the strategies which could help the decision makers of the company to
decide the pricing of the products are as follows:
The cost of the certain product would be depending on the price of the raw material used, cost
of transportation, the cost of labour, advertising and other expenses.
In the initial stages it would be difficult for the company to meet the budget guidelines of the
business plan because there would be a lot of expenditure on advertising and above that the
company also needs to run the promotions for the customers and as the company has decided
that it would not undergo any media advertising in the initial stages and focus more on the in
house or in store advertisement.
The price range of the products will also vary such as the smallest packet of snacks that the
company will do would be of 100 grams which will cost Rs 15 for most of the items in this
category but it may vary as per item to item.
Revenue generation would be difficult for the company in the initial stages as there would be a
lot of focus on the advertising and promotions of the products, also the offers availed on the
products would bring loss to the company. The store will demand more money from the
company as it being new and making a debut its prices would be extremely high, but as the
business progresses and makes profit it would automatically come down.
Sources of Finance Available
A major part of the source of finance for the company will come from the loan from the bank as the
owner has other business as well, therefore on security of them the national banks could provide about
60% of the load of total budget of the business plan and rest of the finance would be coming from theown funds of the company and releasing the market shares.
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Key People and Job Functions
1. Founder/ Owner: Mr Mateen Ahamed Pasha is the owner and founder of the company so thus
he is also the chairperson of the company who takes the most important decisions and sign the
agreements to the major proposals.
Name : Mr Mateen Ahamed Pasha
Qualification : MBA, LLM, And Entrepreneur, India.
Experience : 5+ years experience in business management, owner of other business models.
Roles : Chairperson of the company.
2. Business Manager
Name : Mr Robert Vardar
Qualification : MBA, IBM, India
Experience : 10+ years experience in Business management and empowerment.
Roles : Responsible for implementing action plans, new strategies and other decisions.
3. Marketing Manager
Name : Mr Ravishankar Ayer
Qualification : PGDM, LLM, Entrepreneur, And HRM India.
Experience : 12+ years experience in marketing strategies in improving the brand image.
Roles : Responsible for marketing and advertisement of products to increase sales.
4. Accounts Office Head
Name : Ms Neha Sharma
Qualification : MBA finance, Accounts
Experience : 6+ Years experience in leading accounts department.
Roles : Responsible for managing the team of finance and accounts department.
5. Administration Office Head
Name : Mr P. R Singh
Qualification : PGDM, MBA (HRM), Business Intelligence (SAP).
Experience : 5+ Years experience in the administration management department.
Roles : Responsible for leading the working team, risk management and development.
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FINANCIAL PLAN
1. Source of Funds
Loan : 20,000,000
Self : 10,000,000
Assets : 5,000,000
2. Funding Requirements/ Applications
Fixed Assets : 8,000,000
Formation Expenses : 5,000,000
Working Capital : 3,000,000
Stock : 2,000,000
3. Fixed Assets
A. Machinery and Equipments
No. Machinery/Equipment Price + Taxes Qty.Required
Total Value
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Pastry Mixing System
High Speed Slicer
Line Weigh, fill, seal pots
Dicer
Cutter
Shredder
Granulator
Conveyors
Fort lift trucks
Sealing and Packingmachines
25,00,000
3,00,000
12,00,000
4,00,000
3,00,000
6,00,000
7,00,000
15,00,000
6,00,000
16,00,000
1
3
1
23
3
2
1
5
2
25,00,000
9,00,000
12,00,000
8,00,000
9,00,000
18,00,000
14,00,000
15,00,000
30,00,000
32,00,000
Total 1,72,00,000
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B. Premises: the premises of the industrial sector would be the most expensive investment in
this business, as to set up a industry in Okla. Industrial area which is the home to many multinational
companies and is located at a very prime location
The premises will cost about 18,000,000 for the infrastructural development and the rest of the would
be invested in the machinery and fixed assets and movable assets.
Furthermore, the company will also needs to spend huge sum of money in building the premises
because its first headquarter will also reflect its brand image. Therefore from whole of the business
project the major percentage would be covered in building the industrial premises.
C. Raw Material: The raw material that would be used in the manufacturing of the snacks would
mostly from the wheat and rice flour along with the milk and artificial products. Also the seasonings that
would be used to give the Indian blend would be used in as the raw materials. The cost of purchase of
raw material wood be dependent on the stock availability and would be ordered in regular intervalssuch as in weeks or in months. The cost of the raw materials could also not be fixed as there are regular
changes in the due to the change in the government policies and regulations, due to which the industrial
sector and thus the common man has to suffer.
D. Formation Expenses: The expenses on the formation and production stage would be less as
compared to other stages of the production or selling such as the setting up of the industry, the money
spent in purchasing the machineries and after the production the money to be invested in
advertisement and promotion of the new product or the company. Therefore the formation process
only involve the cost of the raw materials used, the resources used such as water and electricity and the
cost of the labour, which is still comparatively less than the other stages as explained earlier. Therefore
roughly estimating the initial formation costs would be around 5,000,000, in which the cost of the raw
materials is not included because the raw stock is ordered in the regular interval and also would be very
less as compared to the other expenses. The formation cost shown above would be valid for the one
consecutive session.
E. Working capital for expenses: The expenses that would be taking place during the initial
stages would be from the own cash assets and the money landed from the Bank as a form of a loan
would be used in building the infrastructure and industry. The working capital as stated before should
be around 3,000,000 in the initial stages as there would be the cost of raw materials, lossmanagement, electricity and the labour would be included in this working capital, other than this
everything else has been already deployed or have been used in other stage or process. Therefore the
budget for the working process should be around as stated.
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4. Key people, Job Functions and Salary: The main people of the company who are responsible for
making most of the decisions and are the head of the departments and the office workers salary
statics have been stated as follows:
4.1. Business manager: The business manager is the chief head of the company after the owner and
takes all the major decisions in favour of the company to take it to the new heights. The salary
range of the business manager is about 20,00,000 per annum.
4.2. Marketing Manager: the marketing manager is the person who is responsible for building
companys brand name and image through applying new marketing strategies to improve the
state of the business. The salary package of the marketing manager is about 15,00,000 or
more depending on the company and seniority.
4.3. Accounts Head: The accounts head is the one responsible for managing all the transactions
based on money and finances from the companies. This is the head of the department whos
keeps on checking that how much is the current assets and liabilities of the company is this
department. The salary package of the finance manager is around 10,00,000.
4.4. Finance Head: the Finance head is the one responsible for the company asset declaration to be
free or under any hold of a liability and gets the strategies to increase sales and production. The
salary package of a finance head is similar to the accounts heaps as
10,00,000.
4.5. Administration Head: This is the person who is responsible for doing and maintaining all the
things in order in the company and loads the task of administrating the works in the company.
The salary package of these people are around 8,00,000.
4.6. Production In charge: This person is the lead for the manufacturing unit and verifies whether
the work is going properly or not, such as for the labours and cross checking the work after it
has been done.
5. Key Financial Assumptions:
The company will face certain financial issues regarding the budget because of less margin money
available to it instead.
There would also be survey conducted in future by the company and the annual turnover would be
decided by taking this in the consideration.
The policies of the government has also been same in the consecutive next yard which is a breath of
relief to the country otherwise the recommendations of the people in blocking the company to be
endowed under the tax laws and implications of the government.
The economy of the company will start to increase once it has got a decent market hold and a
respectable share in the market.
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Financial Highlights
(for the first two years)
Year 1 Year 2
Turnover 60,000,000 80,000,000
profit 10,000,000 30,000,000
break over 50,000,000 50,000,000
GP% 20% 35%
NP% 10% 10%
ROE%
ROCE%
Project
Growth ofTurn over
Growth of 10,000,000 Growth of 30,000,000
Project growth of NP
Gearing
Interest coverage
Forecast Income Statement
(Business: Fast moving consumer Goods, Period: Five Years)
Year 1 Year 2 Year 3 Year 4 Year 5Sales:
60,000,000 80,000,000 140,000,000 190,000,000 300,000,000Less direct(variable) costsMaterialsDirect wagesother
50,000,00060,000,000 70,000,000 130,000,000 180,000,000
Total direct
costs20,000,000 30,000,000 50,000,000 50,000,000 100,000,000
OperatingprofitFixed costs(Overheads):
5,000,000 2,000,000 3,000,000 6,000,000
10,000,000Profit before
60,000,000 80,000,000 140,000,000 190,000,000 300,000,000
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interest andtaxTaxation 20% 20% 20% 20% 20%Profit after tax
40,800,000 60,400,000 110,800,000 140,200,000 260,000,000
Forecast cash flow statement
Year 1 Year 2 Year 3 Year 4 Year 5
CashReceipts 60,000,000 80,000,000 140,000,000 190,0000,000 300,000,000
Cash salescollectionfrom debtors
capital loanothers
500,000 700,000 1,100,000 1,800,000 2,300,000
Cashpayments 60,500,000 80,700,000 141,100,000 191,800,000 302,300,000
CashpurchasesPayment tocreditorscapitalexpenses:
Revenueexpenses:
20,000,000
5,000,000
30,000,000
2,000,000
50,000,000
3,000,000
50,000,000
6,000,000
100,000,000
10,000,000
Net cashflow
25,000,000 32,000,000 53,000,00056,000,000
110,000,000
Openingcash 60,500,000 80,700,000 141,100,000 191,800,000 302,300,000
Over drafting
or shortterm.
5,000,000 60,000,000 131,000,000 137,000,000 202,000,000
Closing cash 50,000,000 20,000,000
30,000,000
60,000,000 100,000,000
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Forecast Balance Sheet
Year 1 Year 2 Year 3 Year 4 Year 5
Non CurrentAssets
50,000,000 20,000,000
30,000,000 60,000,000
100,000,000
CurrentAssets 60,500,000 80,700,000 141,100,000 191,800,000 302,300,000
Total Assets5,000,000 60,000,000 131,000,000 137,000,000 202,000,000
Capital:60,000,000 80,000,000 140,000,000 190,000,000 300,000,000
Noncurrentliabilities 25,000,000 32,000,000 53,000,000 56,000,000 110,000,000
Currentliabilities 20,00,000 30,00,000
30,00,000 50,00,000110,00,000
Total: capital+Liabilities 60,500,000 80,700,000 141,100,000 191,800,000 302,300,000
Sensitivity Analysis
1. Based on Sales: Based on the sales trend in the future the company will have reassess its
marketing strategy and bring some new changes in its offers, marketing or promotional
strategies, pricing strategies etc. Also the company will need to ask the people that what
actually the problem with their products is directly through either conducting a product
survey which involves participation of the target audience in spending some time filling the
survey or to draw an prize offer in which the people have to fill a feedback form and send it
to the company through which they can win a lottery.
2. Based on Direct cost: Based on Direct cost, as the company initiated with the slogan ofInternational quality with Indian taste which means there would be a lot concern on the
quality and freshness of the snacks but because of maintaining of the quality the prices of
the snacks have risen up. Therefore either the prices needs to be brought down or the
quality of the products needs to be lowered down so as to level up with the prices of the
other companies.
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Based on Indirect/fixed cost: Based On fixed cost, if the product still manages to meet the
price range of the products then the company needs to revise its policies and rules in detail
and try to find out the loophole in its strategy which is under the marketing promotionsstrategy, pricing strategies or under the manufacturing unit increasing the cost of the
product.
Long Term Strategy
The long term strategy that could be applied to the company should be not the only and only
focus on quality because as we stated earlier that the local snacks are more in flow everyday by
the customers, therefore making the snacks as per the requirements and demands of the
customers would give it better value and market respect, tough the companys strategy of
packing the snacks in the nitrogen gas with the air sealed wrappers is much expensive than the
normal packaging, therefore one such point is that the cost of the snack is increasing
irrelevantly therefore deducting such values becoming the reason for price hike of the company
products could give a long term benefit and profits.
As far as the question of making huge profits is concerned the desire of the company to expand
into a foreign country could be only made possible through building a strong brand image in
India first, which the company seemed to be failing in the initial stages, but no sooner thereasons for the negligence was found and has been operated by the marketing and business
managers of the company it was again on its way. Therefore the only long term strategy for the
company to build image as well as gain profit is to improve the brand image of the company in
India, even if had to face some loss but the resultant of this will bring the popularity of the
snacks in foreign countries which will certainly increase its revenue generation.
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References
Paul Burns (2011), Entrepreneurship and Small Business, Palgrave Macmillan.
Anil Kumar (2009), Small Business and Entrepreneurship, International Publishing house, New
Delhi.
Talloo (2007), Business organization and management, Tata McGraw-Hill Companies, New
Delhi.
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