Business Purpose Entre

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Background Information ofBackground Information of

the Entrepreneursthe Entrepreneurs Name: Intezar MehboobName: Intezar Mehboob

Degree: Bachelors of Business Administration (BBA)Degree: Bachelors of Business Administration (BBA)

University: East Delta UniversityUniversity: East Delta University

Major: Operations ManagementMajor: Operations Management

CGPA: 3.65CGPA: 3.65

Name: Mahtab UddinName: Mahtab Uddin



Major: Operations ManagementMajor: Operations Management

CGPA: 3.8CGPA: 3.8

Name: Ishita BaruaName: Ishita Barua



Major: Finance and AccountsMajor: Finance and Accounts


Name: Mesbah ul IslamName: Mesbah ul Islam


University: East Delta UniversityUniversity: East Delta UniversityMajor: Human Resource ManagementMajor: Human Resource Management


Name: Imtiaz Ahmed ShirajeeName: Imtiaz Ahmed Shirajee



Major: Human Resource ManagementMajor: Human Resource Management

CGPA: 3.7CGPA: 3.7


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Business PurposeBusiness Purpose

The main purpose ofThe main purpose ofour business will involveour business will involve

fattening and exportingfattening and exportingcrabs to countries withcrabs to countries withhigh demand for mudhigh demand for mudcrabs and major crab-crabs and major crab-importing countriesimporting countries


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ResearchResearch

For theFor theprimary researchprimary research, we have, we have

conducted interviews with people who areconducted interviews with people who are

currently associated with this business forcurrently associated with this business for

a very long period of timea very long period of time

For theFor the secondary researchsecondary research, we have, we have

utilized the World Wide Web to findutilized the World Wide Web to find

relevant information on the growth of therelevant information on the growth of the

crab export business and how much profitcrab export business and how much profit

margin that it can garner.margin that it can garner.


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Scope of the businessScope of the business

Year wise Export values (in thousand dollars) from mud crabs in Bangladesh during 1999 to 2009


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Scope of the businessScope of the business

During 2005-2006, Bangladesh earnedDuring 2005-2006, Bangladesh earnedUS$ 3,66,8000,US$ 3,66,8000,

2006-2007 the country fetched $2006-2007 the country fetched $4,64,9,000 and $ 7,670,0004,64,9,000 and $ 7,670,000

Growth rate stands to be at an average ofGrowth rate stands to be at an average of48% annually.48% annually.

(Figure, source: Export Promotion Bureau(Figure, source: Export Promotion Bureauof Bangladesh).of Bangladesh).


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Our Product: Mud CrabOur Product: Mud Crab


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Our product featuresOur product features

Outer margin of wrist (carpus) of chelipeds are withOuter margin of wrist (carpus) of chelipeds are withone blunt spineone blunt spine

Color of upper surface of body (carapace) is greenishColor of upper surface of body (carapace) is greenish

brown to ferrugenous brown; no polygonal markings isbrown to ferrugenous brown; no polygonal markings isfound on the walking and swimming legsfound on the walking and swimming legs

Lower surface of fixed finger of chelipeds is dark toLower surface of fixed finger of chelipeds is dark topinkish red in colorpinkish red in color

They are graded as "mud crabs" (200 to 400 g) in theThey are graded as "mud crabs" (200 to 400 g) in theexport tradeexport trade


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Crab Size distributionCrab Size distribution

Size distribution of rejected & exported mud crabs


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Market AnalysisMarket Analysis

Singapore:Singapore: The country has anThe country has an

enormous demand for mud crabs.enormous demand for mud crabs.

One of the most famous recipes ofOne of the most famous recipes of

mud crab is chilly crab. Only for thismud crab is chilly crab. Only for thisrecipe the country needs almost 100recipe the country needs almost 100

ton of crabs every day.ton of crabs every day.


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Thailand:Thailand: Every year Thailand earnsEvery year Thailand earnsmore than $50 billion only fromm themore than $50 billion only fromm thefish market. Among these fishes mudfish market. Among these fishes mud

crab is ranked at No.3 from sales.crab is ranked at No.3 from sales.

Horeshoe, Kantan Seafood Co. Ltd,Horeshoe, Kantan Seafood Co. Ltd,Chokguakil Ltd, R&R co Ltd., Al-Chokguakil Ltd, R&R co Ltd., Al-Iklas HalalIklas Halalfood- are some of thefood- are some of themajor mud crab importers of Thailand.major mud crab importers of Thailand.


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Malaysia: also requires huge numberMalaysia: also requires huge numberof crabs every day. The best thingof crabs every day. The best thingabout this place is most of the mudabout this place is most of the mud

crabs imported are from Bangladesh.crabs imported are from Bangladesh.

Some of the big importers areSome of the big importers areZagalchi Malaysia corp., FishZagalchi Malaysia corp., FishInternational sourcing houses,International sourcing houses,Malaysian sea food enterprise etc.Malaysian sea food enterprise etc.


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Taiwan:Taiwan: Today the biggest suppliesToday the biggest supplies

of mud crab goes to Taiwan. Thereof mud crab goes to Taiwan. There

are over 300,000 registeredare over 300,000 registered

importers for crab in Taiwan.importers for crab in Taiwan.

Every day Bangladesh exports up toEvery day Bangladesh exports up to

100 tons of only mud crabs to100 tons of only mud crabs to

Taiwan.Taiwan.


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Hong Kong:Hong Kong: The seafood industry inThe seafood industry inHong Kong is only getting bigger and crabHong Kong is only getting bigger and crabis one of the major players behind this.is one of the major players behind this.

The growing tourist industry along withThe growing tourist industry along withrestaurant businesses booming means werestaurant businesses booming means wecan capture some of their customers thencan capture some of their customers then

Honk Kong can prove to be the biggestHonk Kong can prove to be the biggestCash Cow for our companyCash Cow for our company


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Industry AnalysisIndustry Analysis

The crab fattening and exportingThe crab fattening and exportingbusiness has great potential inbusiness has great potential inBangladesh because of mainly 2Bangladesh because of mainly 2

reasons:reasons:High economic value of theHigh economic value of the

species in near East Asian countriesspecies in near East Asian countrieslike Taiwan, Hong Kong, China,like Taiwan, Hong Kong, China,

Singapore, Korea and Japan.Singapore, Korea and Japan.Takes less time and spaceTakes less time and space

compare to other aquaculturecompare to other aquaculture..


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Crucial Factors toCrucial Factors to

considerconsider Global competitionGlobal competition

Maintaining good quality throughoutMaintaining good quality throughoutthe yearthe year

Meeting buyers demandMeeting buyers demand


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Crucial Factors toCrucial Factors to

considerconsider Low mortality rate while exportingLow mortality rate while exporting

Ease of communicationEase of communication

Indirect competitionIndirect competition

Increasing competitionIncreasing competition


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PEST Analysis (Political)PEST Analysis (Political)

Political instabilityPolitical instability

Environmental issues likeEnvironmental issues likemaintaining biodiversitymaintaining biodiversity

The supportive role of theThe supportive role of thegovernmentgovernment


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PEST AnalysisPEST Analysis

(Economic)(Economic)The inflation rate and exchange rateThe inflation rate and exchange rate

will play an important role in ourwill play an important role in our

business.business.

The economic condition of otherThe economic condition of other

export countriesexport countries


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PEST Analysis (Social)PEST Analysis (Social)

Some people have negative perceptionsSome people have negative perceptions

about eating crabs in Bangladeshabout eating crabs in Bangladesh

We will be managing our waste andWe will be managing our waste and

dumping them in distant places fromdumping them in distant places from

ChittagongChittagong


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PEST AnalysisPEST Analysis

(Technology)(Technology) Communication sourceCommunication source

Transportation facility WellTransportation facility Wellequippedequipped


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Competition AnalysisCompetition Analysis

There are total 70 exporters in BangladeshThere are total 70 exporters in Bangladesh

Mainly 11 direct competitors in the market who are wellMainly 11 direct competitors in the market who are wellestablished in the market and have a good relationshipestablished in the market and have a good relationshipwith their buyerswith their buyers

The seasonal exporters pose great threat during monsoonThe seasonal exporters pose great threat during monsoonseason when supply of crab is ample by selling largeseason when supply of crab is ample by selling largequantity in comparatively low price to gain market sharequantity in comparatively low price to gain market share

The seasonal suppliers like rural people who have pondsThe seasonal suppliers like rural people who have pondsin their houses create problem by selling crabs toin their houses create problem by selling crabs toexporters at a low priceexporters at a low price


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Competition AnalysisCompetition Analysis

Shundarban marine productsShundarban marine products Shuvo InternationalShuvo International Meghna Trade InternationalMeghna Trade International Gazi EnterpriseGazi Enterprise Ahammed indexAhammed index Sharap InternationalSharap International Reshma internationalReshma international OrchidOrchid


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Marketing Plan (Product)Marketing Plan (Product)

During the rainy season (April-July)During the rainy season (April-July)

the catch is relatively high, 3 - 4the catch is relatively high, 3 - 4

times more by weight than in wintertimes more by weight than in winter

(Sept-January).(Sept-January).


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Marketing Plan (Price)Marketing Plan (Price)

Selling prices will vary according to theSelling prices will vary according to theseasonal demand and supply patterns.seasonal demand and supply patterns.

For the 2nd and 3rd quarters, the averageFor the 2nd and 3rd quarters, the average

the average selling price will be Tk.400.the average selling price will be Tk.400.

The average selling price will be Tk.450-500The average selling price will be Tk.450-500for the 4th and 1st quarter (Winter Season)for the 4th and 1st quarter (Winter Season)

Huge demand for crabs in the festive seasonHuge demand for crabs in the festive season(Christmas and New Year).(Christmas and New Year).


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Marketing Plan (Price)Marketing Plan (Price)

Ponds in Khorniya, Khula will bePonds in Khorniya, Khula will be

leased for Tk.10, 000 per quarterleased for Tk.10, 000 per quarter

Office premise in Dhaka will beOffice premise in Dhaka will beleased for Tk.40, 000 per monthleased for Tk.40, 000 per month


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Marketing Plan (Place)Marketing Plan (Place)

Sea ScissorsSea Scissorswill be focusing on twowill be focusing on twoprime places: Khulna and Dhakaprime places: Khulna and Dhaka

In Khulna, the ponds will be locatedIn Khulna, the ponds will be locatedat Khorniya which is situated in theat Khorniya which is situated in theclose vicinity of the Khulna seashoreclose vicinity of the Khulna seashore

The Dhaka facility which will be usedThe Dhaka facility which will be usedfor office and the grading processfor office and the grading process


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Marketing PlanMarketing Plan

(Promotion)(Promotion)Designing a website:Designing a website:

This would give an overview of SeaThis would give an overview of Sea

ScissorsScissors

Its trade activitiesIts trade activities

The prices offered for the mud crabs.The prices offered for the mud crabs.

The website will be a medium forThe website will be a medium forcommunicating with the potentialcommunicating with the potential

buyersbuyers


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Management TeamManagement Team

Finance and AccountsFinance and Accounts (Ishita Barua)(Ishita Barua)

Maintain day-to-day financial control of the service within budgetMaintain day-to-day financial control of the service within budgetheads agreed by the trustee boardheads agreed by the trustee board

Ensure that all finances are properly administered and monitoredEnsure that all finances are properly administered and monitored

Appropriate financial regulations and controls are in place and inAppropriate financial regulations and controls are in place and inuse at all timesuse at all times

Make regular reports to the governing body on income,Make regular reports to the governing body on income,expenditure and any variations from budgetsexpenditure and any variations from budgets

In charge of clearing the pay for the managers and the workers ofIn charge of clearing the pay for the managers and the workers ofthe companythe company


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Operations ManagementOperations Management(Mahtab(Mahtab

Uddin and Intezar)Uddin and Intezar)

Quality ControlQuality Control

The quality control segment of thisThe quality control segment of this

department will include the qualitydepartment will include the qualitytesting and assurance prior deliveringtesting and assurance prior delivering

the final product to the buyersthe final product to the buyers


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CommunicationsCommunications

Bargaining and dealing with the buyersBargaining and dealing with the buyers

Administering and monitoring theAdministering and monitoring thetransport and delivery of the crabstransport and delivery of the crabs

Constructing and updating the companyConstructing and updating the companywebsitewebsite


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Human ResourcesHuman Resources (Mesbah and(Mesbah and

Shirajee)Shirajee)

In charge of hiring the workers forIn charge of hiring the workers for

the fattening process and gradingthe fattening process and grading

Working on increasing LaborWorking on increasing Labor

EfficiencyEfficiency


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WorkersWorkers

Sea Scissors will employ 40 workers, Divided acrossSea Scissors will employ 40 workers, Divided acrossDhaka and KhulnaDhaka and Khulna

The workers working in Khulna will be involved inThe workers working in Khulna will be involved inthe ponds and in the fattening processthe ponds and in the fattening process

Workers working in Dhaka will be the graders whoWorkers working in Dhaka will be the graders whowill grade the crabs and do packagingwill grade the crabs and do packaging


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Sea Scissors- OrganogramSea Scissors- Organogram


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Key Facts to beKey Facts to be

consideredconsidered Selection of a production siteSelection of a production site Selection of water sourceSelection of water source Water quality management and controlWater quality management and control Maintenance of various life stagesMaintenance of various life stages Feed quality and feeding practicesFeed quality and feeding practices Fish health managementFish health management Proper use of chemicals and veterinaryProper use of chemicals and veterinary

drugsdrugs Proper sanitationProper sanitation Harvesting, holding and transportHarvesting, holding and transport Detailed record keepingDetailed record keeping


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Financial AnalysisFinancial Analysis

Initial investmentInitial investmentBDTBDT Digging 20,000Digging 20,000 Purchase of crabs 300,000Purchase of crabs 300,000 Dhaka office 900,000Dhaka office 900,000 Khulna office 300,000Khulna office 300,000 Trade license 2,000Trade license 2,000 Export license 2,000Export license 2,000

Motor cost 45,000Motor cost 45,000 Bamboo (for sixBamboo (for sixmonths) 30,000Others 20,000months) 30,000Others 20,000

TotalTotal1,619,0001,619,000


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a. Licensesa. Licenses

SEA SCISSORS will acquire TradeSEA SCISSORS will acquire TradeLicense from the city corporationLicense from the city corporation

and it will cost Tk. 2,000and it will cost Tk. 2,000

Acquire export license which costsAcquire export license which costs

Tk.Tk. 2,0002,000


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b. Landb. Land

We will take lease of 5 bighas ofWe will take lease of 5 bighas oflandland

Tk. 8000 per bigha per year as aTk. 8000 per bigha per year as aleasing cost.leasing cost.


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c. Diggingc. Digging

10 ponds per bigha10 ponds per bigha

We will hire 20 labors for 10 days andWe will hire 20 labors for 10 days andthey will be paid 100tk each per daythey will be paid 100tk each per day

Tk.Tk. 20,00020,000 for digging pondfor digging pond


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d. Purchase of equipmentd. Purchase of equipment

(motor)(motor)

We will have to buy 3 motors forWe will have to buy 3 motors for

the proper water pumping andthe proper water pumping and

water supply in all the pondswater supply in all the ponds

Each motor will be costing Tk.Each motor will be costing Tk. 1500015000


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e. Khulna warehousee. Khulna warehouse

The whole area will cost aroundThe whole area will cost around300,000 (3lac) to build the whole300,000 (3lac) to build the whole

warehouse including thewarehouse including the

electricity lights and bulbs andelectricity lights and bulbs and

small furnituresmall furniture


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f. Bamboo and Netsf. Bamboo and Nets

To cover the ponds with bambooTo cover the ponds with bambooand nets, we will have to spendand nets, we will have to spend

Tk. 30,000 initially for sixTk. 30,000 initially for six

months in bamboo and nets.months in bamboo and nets.


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g. Dhaka officeg. Dhaka office

The Dhaka office will cost aroundThe Dhaka office will cost around9,00000tk to build with all the9,00000tk to build with all the

amenities including the wateramenities including the water

tanks to store the crabs.tanks to store the crabs.


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h. Furniture and other expensesh. Furniture and other expenses

Tables, chairs, electricity bulbs andTables, chairs, electricity bulbs andlightslights = Tk. 20,000= Tk. 20,000 initially.initially.


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Risk AnalysisRisk Analysis

Natural disastersNatural disasters

Disease outbreaksDisease outbreaks: Reo Virus (Reo-: Reo Virus (Reo-virus diseases are very often found invirus diseases are very often found in

cultured mud crab)cultured mud crab)


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Exit StrategyExit Strategy

Provide the cultivation ponds to otherProvide the cultivation ponds to other

parties on leaseparties on lease

Sell our business to third party. ThereSell our business to third party. There

is demand for crab abroad. Byis demand for crab abroad. By

bringing better management skills, abringing better management skills, a

larger company might be willing tolarger company might be willing totake over our business.take over our business.


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Exit StrategyExit Strategy

Sell out fattening equipments and trySell out fattening equipments and try

to realize cash and recover losses asto realize cash and recover losses as

much as possible (liquidation ofmuch as possible (liquidation of

asset).asset).


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ConclusionConclusion

The five of us have expertise in different sectorsThe five of us have expertise in different sectors

and will be able to manage the company andand will be able to manage the company and

expand it in the future once we establish ourexpand it in the future once we establish our

company as a one that has superior products andcompany as a one that has superior products and

can maintain the quantity of shipment duringcan maintain the quantity of shipment duringseasonal fluctuations. So, we are all hopeful thatseasonal fluctuations. So, we are all hopeful that

Sea Scissors will be a dominating factor in theSea Scissors will be a dominating factor in the

near future in the crab exporting industry.near future in the crab exporting industry.


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THANK YOUTHANK YOU

Documents

Business Purpose Entre