Business Plan Final (Entrepreneurship

7/31/2019 Business Plan Final (Entrepreneurship

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BUSINESS PLAN

A SHORT RANGE MULTIMEDIA

MUHAMMAD NAEEM AKRAM

MUHAMMAD SAAD ASAD

SYED MOHSIN ALI

BBA – 6 B

Submitted To: Mr. Nadir Ali Colachi



EXECUTIVE SUMMARY

MARVELL MEDIA is basically and electronic based companyWe are planning to start the business by opening the shop in UNI-PLAZA at I.IChundrigar RoadKarachi.

Our main product is “Short Range Multimedia", which is the substitute to computer monitor.Marvell Media will import its finished product (Short Range Multimedia) from China and we willalso hire a professional for legal requirements and paper works related to imports. There is nosuch legal binding on import of finished good from China.

Our main customers will be Multinational Companies, Office users, Educational institutesand Home users.

The competitive edge of our product is that, it is introduced first time in Pakistan. Our maincompetitors will be companies that are selling Personal computers. As Marvell Media will importfinished product so wee will only emphasize on sales and marketing of our product.

Marvell media's management consists of 5 qualified and experienced personnel

including 3 of friends who are founders and owners also and 1 sales person willbe hired, and another person will hired by the owners for purchase who will look after

and check our purchases on port and both the sales person and purchase officer's salary

will be decided by the management team and will be according to current market rate,

and 1 sweeper. We will be planning to increase our employees from 5 to 7 in next3 years.

Our organization structure consists of 3 departments

Finance: MUHAMMAD NAEEM AKRAM

Marketing and sales: MUHAMMAD SAAD ASAD

Purchase: SYED MOHSIN ALI

By creating a new niche in the computer industry MARVELL MEDIA will increase sales by 15%each year

Our initial investment will be Rs 3,300,000 and it will be equally shared by each of the threepartners i.e. (1,100,000) per partner.



We would like to thank ALLAH ALMIGHTY, the most beneficent and merciful for

enabling us to fulfill are duties as a students. May ALLAH always kept HIS blessing on us. We also like to thank our parents and teachers for guiding us.



Table of contents



GENERAL COMPANY DESCRIPTION

NAME & LOCATION:

The name of the company is “MARVELL MEDIA”, and we are planning to start the business by

opening the shop in UNI-PLAZA at I.I Chundrigar Road Karachi.

The Business will start operating from January 2008.

OBJECTIVES:

To achieve sales of Rs 3,000,000 at the of 2008.

To start operating business in Lahore by the end of 2010.

MISSION:

“To became the necessary part of personal computer”.

PRODUCT:

Our main product is “short Range Multimedia”, which is the substitute to computer monitor. Our

main customers will be Multinational Companies, Banks, Office users, Educational institutes and

Home users.

COMPETITVE EDGE:

The competitive edge of our product is that, it is introduced first time in Pakistan. Our Indirect

competitors will be companies that are selling Personal computers.

As Marvell Media will import finished product so wee will only emphasize on sales and marketing

of our product.



01

PRODUCT/SERVICE PLAN:

PRODUCT DESCRIPTION:

As Karachi is the hub of business so Marvell Media is launching an innovative product with

unique feature i.e. (Short Range Multimedia). We initially have only 1 product which is the perfect

replacement of monitors because it will minimize the harmful effects of rays that radiates from

monitors.

The feature of Short Range Multimedia enables users to use it according to their accessibility.

SERVICES:

Free installation service will be provided to all our customers.

A manual is also provided to users to make our product easy to use.

We also provide technical advice at the time of purchase related to durability, quality,

functioning and others technical things.

We provide one year replacement warranty.

Marvell Media will provide equally best display as being provided by others top selling

computer companies.

SOURCING:

Marvell Media will import its finished product (Short Range Multimedia) from China and we will

also hire a professional for legal requirements and paper works related to imports. There is no

such legal binding on import of finished good from China.

PRICE:

The price of Marvell’s Multimedia will be Rs 16000 per unit.

Challenge:

No attention towards transfer of technology.



02

MARKETING PLAN

MARKET ANALYSIS

The computer market is rapidly expending due to increase in the use of personal computers in

daily life and it has become the basic necessity of very business. The competition in the market is

very high and it is very difficult for new entrants to enter into computer industry and capture the

market share until and unless they have strong competition edge and unique features in their

products.

MARKET SEGMENTATION

As Marvell media is introducing the computer based product the short-range multi-media so we

will target those area in which the computer are extensively used.

MULTI-NATIONAL ORGANIZATONS:

Multi-National organizations which have large IT infra-structure so these organizations will be our

potential target market.

OFFICE USERS:

There are many offices in different locations like university road, Share-e-faisal and obviously I.I

chundrigar road and also we are starting our shop from UNI PLAZA which is also at I.I chundrigar

road.

EDUCATIONAL INSITITUTES:

As most of the educational institutes in Karachi are using computers so these institute are also a

very attractive segment for us to promote our product.

HOME USERS:

Computer has become the basic necessity of every house so most of the peoples have computer

at there own homes either for work or for entertainment purposes and also Karachi has a very

high (%) of internet users.

03



TARGET MARKET SEGMENT STRATEGY

As we are introducing a very new product so in order to achieve our objectives (sales of 190 units

in 2008) we must have to make lots of efforts to create awareness of our product through

effective marketing.

Advertisements through print and electronic media

Product presentation will be given to multi-national organizations and big governmental

Organizations.

We will arrange (2-3 days) display centers in different shopping malls and other market

Places for the promotion end demonstration of our product.

COMPETITIVE ANALYSIS

Karachi is the biggest computer and electronic market of Pakistan so we have healthy

competition in computer industry.

Our main competitors are all those computer shops who are selling computers whether at

retail price or at discount also electronic shops who are selling long range multi-media.



04

MANAGEMENT PLAN

MANAGEMENT SUMMARY.

Marvell media's management consists of 5 qualified and experienced personnel/employees

including 3 of friends who are founders and owners also and 1 sales person will be hired, and

another person will hired by the owners for purchase who will look after and check our purchases

on port and both the sales person and purchase officer's salary will be decided by the

management team and will be according to current market rate. We will be planning to increase

our employees from 5 to 7 in 3 to 4 years.

ORGANIZATION STRUCTURE.

Our organization structure consists of 3 departments

Finance

Marketing and sales

Purchase

MANAGEMENT TEAM

All the 3 friends are at the same time founders and owner. Partners will equally share profits and

loss.

SYED MOHSIN ALI: Founder, graduated from Bahria University (MBA Finance). He has a 5

years experience of purchase manager.

MUHAMMAD NAEEM AKRAM: Founder, graduated from Bahria University (MBA Finance). He

has a 3 years experience of finance manager in bank. And his key features are the technical

knowledge and communication skills.

MUHAMMAD SAAD ASAD: Founder, graduated from Bahria University (Mba Marketing). He has

a 2 years experience of marketing manager in multi national companies. And his key features are

the inter-personal and communication skills.

Our sales person and purchase officer should have 2-3 years experience in their respective fields



05

MANAGEMENT TEAM GAPS.

Each of the 5 employees is responsible for managing his are of expertise but there are gaps exits

between management on the following issues.

Lack of knowledge of other departments

Minimal experience of managing the whole business by ourselves

Sole control over all operations.

PERSONNEL PLAN

In personnel plan we indicates employees in each department according to their education and

skills

2008 2009 2010

Purchase officer Rs 8,000/month= Rs 96,000 Rs 8,000/month= Rs 96,000 Rs 9000/month= Rs 108000

Sales person Rs 5,000/month= Rs 60,000 Rs 5,000/month= Rs 60,000 Rs 6000/month= Rs 72000

Sweeper Rs 2,000/month= Rs 24,000 Rs 2,000/month= Rs 24,000 Rs 2500/month= Rs 30000



06

FUTURE PLANS

The company has the following future plans in the upcoming years.

We will introduce various other variety of the short range multi-media in terms of design,

features and many other new and innovative things

We will also give bonuses and salary increments to our employees

We will manufacture our products by ourselves as we will going to buy our own place

We will also hire employees as needed for the company’s development

We will promote our brand every where in the world and made this world addicted for our

products



07

OPERATING PLAN

PRODUCTION FACILITIES:

MARVELL MEDIA will be importing finished good from China, thus there will be no production

activity performed by MARVELL MEDIA in Pakistan.

QUALITY CONTROL:

MARVELL MEDIA’S main emphasis will be on quality. We strongly believe that our main strength

is customer satisfaction and the product that MARVELL MEDIA is importing is quality assured.

Since the target market of MARVELL MEDIA is very sensitive and most of them are

professionals, like multinational organizations, banks and educational institutes. So quality will be

strongly under consideration for these segments.

CUSTOMER SERVICE:

Customer service will be main tool for MARVELL MEDIA for gaining trust among the customers.

Salesman will provide all the services related to product. He will resolved all the problems or

refers to the technical person. There will no communication gap between the customers and the

management team because most of the time management team will be there.

INVENTORY CONTROL:

Purchase manager will be responsible for all the issues related to inventory control. Purchase

officer will be responsible for the collection of import goods from the seaport and for the delivery

to the store. Purchase manager will inspect the delivered items and check all the documentation

related to import of inventory.

LOCATION:

MARELL MEDIA will be operating from UNI-PLAZA, I.I. Chundrigar Road Karachi. The location

has been selected by keeping in view many factors that; there should be easy access for the

customers. Transportation cost for the delivery of imports goods from port to the store should be



least. Business environment is healthy in that area. Customers related to most the electronic

items and computers prefer to go to UNI-PLAZA.

08

RENT:

The rent of the shop will be Rs 30,000 per month for the year 2008. It will be increased

approximately by Rs 2000 per year for the next two years. , i.e., (Rs 32,000 per month for year

2009 and Rs 34,000 per month for 2010).

TIMINGS:

The business timings will from 10:00 AM to 10:00 PM. MARVELL MEDIA will operate 6 days a

week and Friday will be the half day and timings for Friday will be (3:00 PM to 10: PM). Sunday

will be observed as closed day.

SUPPLIERS:

A single supplier will supply the inventory to MARVELL MEDIA from China. The type of inventory

will be of finished product, so there is no further production process is required. The mode of

payment to the supplier will be “cash” as well as “credit”.

(3- Month credit policy will be adopted).



09

FINANCIAL PLAN

The financial statements of MARVELL MEDIA are given below, including the pro-forma income

statement, balance sheet and statement of cash flows for three years.

MARVELL MEDIASTART UP COST

DIRECT COST:

Inventory 200 units @ Rs 10,000 per unit 2,000,000Equipment 50,000

Furniture 100,000

Fixtures 100,000

Office supplies 15,000

EXPENSES:

Shop rent Rs 30,000 per month 360,000

Shipments 7.5% of the cost of inventory 150,000

Transportation 5,000

Payroll:

Purchase Officer (Rs 8,000 per month) = Rs 96,000

Salesman (Rs 5,000 per month) = Rs 60,000

Sweeper (Rs 2,000 per month) = Rs 24,000

Total payroll 180,000

Advertising & Promotion 130,000

Other expenses 12,000

Utilities:

Telephone (Rs 5,000 per month) = Rs 60,000

Electricity (Rs 10,000 per month) = Rs 120,000

Internet (Rs 15000 per month) = Rs 18,000

Total Utilities 198,000

TOTAL STARTUP COST 3,300,000



MARVELL MEDIAPRO-FORMA INCOME STATEMENT

2008 2009 2010

Sales 190 units @ Rs 16,000 per units 3,040,000 3,488,000 4,016,000

Cost of good sold:

Opening inventory - 100,000 220,000

Cost of good purchase 200 units @ Rs 10,000 per unit 2,000,000 2,300,000 2,650,000

Ending inventory (100,000) (220,000) (360,000)

Cost of good sold 1,900,000 2,180,000 2,510,000

Gross profit 1,140,000 1,308,000 1,506,000

Operating Expenses

Rent Rs 30,000 per month 360,000 384,000 408,000

Shipment & Transportation7.5% of the cost of inventory + Rs

5,000 155,000 177,500 203,375

Marketing & other expenses 100,000 115,000 132,250

Payroll 180,000 180,000 210,000

Office supplies 10,000 11,500 13,225

Depreciation:

Equipment 50,000 x 0.2 = 10,000

Furniture 100,000 x 0.1 = 10,000Fixtures 100,000 x 0.1 = 10,000

Total Accumulated

depreciation 30,000 30,000 30,000

Utilities:

Telephone 5,000 x 12 = 60,000

Electricity 10,000 x 12 = 120,000

Internet 1,500 x 12 = 18,000

Total Utility Expense 198,000 198,000 198,000

Total Operating Expense 1,033,000 1,096,000 1,194,850

Income before tax 107,000 212,000 311,150

Tax (15%) 16,050 31,800 46,673

Net Income 90,950 180,200 264,477



11

MARVELL MEDIAPRO FORMA CASH FLOW STATEMENT

2008 2009 2010

Cash (beginning balance) 3,300,000 3,070,950 3,161,150

Cash received from sales 3,040,000 3,488,000 4,016,000

Total cash available 6,340,000 6,558,950 7,177,150

CASH DISBERSMENT

Purchase of inventory 2,000,000 2,300,000 2,650,000

Equipment, Furniture & fixtures 250,000 - -

Office supplies 10,000 11,500 13,225

Rent 360,000 384,000 408,000

shipment & Transportation 155,000 177,500 203,375

Salaries 180,000 180,000 210,000

Utilities 198,000 198,000 198,000

Marketing and other expenses 100,000 115,000 132,250

tax 16,050 31,800 46,673

Total cash disbursement 3,269,050 3,397,800 3,861,523

Ending Cash Balance 3,070,950 3,161,150 3,315,627



12

MARVELL MEDIAPRO FORMA BALANCE SHEET

2008 2009 2010

ASSETS

Current assets:

Cash 3,070,950 3,161,150 3,315,627

Finished goods 100,000 220,000 350,000

Total current assets 3,170,950 3,381,150 3,665,627

Long term assets:

Furniture 100,000 100,000 100,000

Equipment 50,000 50,000 50,000

Fixture 100,000 100,000 100,000

Accumulated dep. (30,000) (60,000) (90,000)

Total long term assets 220,000 190,000 160,000

TOTAL ASSETS 3,390,950 3,571,150 3,825,627

LIABILITIES & EQUITY

Accrued taxes -

Account payable -

Equity 3,300,000 3,390,950 3,571,150

Retained Earnings 90,950 180,200 264,477

TOTAL LIABILITIES & OWNER

EQUITY 3,390,950 3,571,150 3,835,627



13

APPENDIX



14

SALES GROWTH RATE 15% PER YEAR

TAX RATE 15%

INCREASE IN SALARY (YEAR 2010)

PURCHASE MANGER------------ RS 1000SALES PERSON--------------------RS 1000SWEEPER----------------------------RS 500

DEPRECIATION

We will use the straight line method for calculating depreciation for equipment,furniture and fixtures

References for tax rate

www.pakboi.gov.pk

www.pseb.gov.pk

15

Equipment -------------------------------- 50,000 x 0.2 = 10,000 ---------------(estimated life 5 yrs)

Furniture---------------------------------- 100,000 x 0.1 = 10,000---------------(estimated life 10 yrs)

Fixtures------------------------------------ 100,000 x 0.1 = 10,000---------------(estimated life 10 yrs)

http://www.pakboi.gov.pk/


http://www.pseb.gov.pk/




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Business Plan Final (Entrepreneurship