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8/11/2019 Creation B.plan
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Mission Statement:
To be very successful by effectively utilizing the philosophies of high quality advanced techniques, and
customer services. To become the premier garment brand offering the highest quality products and
customer service while saving customers money and making positive contributions to our environment.
Vision Statement:
To be respected as an ethical and sustainable company and acknowledged as the leading provider of
garments.
Business objectives:
Profitability
Productivity
Customer Services
Employee retention
Core values
Growth
Maintain financing
Change management Marketing
Business goals:
Innovation
Brand health
Marketing optimization
Revenue generation
Operational efficiency
Customer experience Enhance quality of life
Creating goodwill
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Product and services
Product Name: Shirts
Product type: Specialized goods
Product Specification: Shirts (Export Quality).
Product line: Garments
Services:Repairance / claim
Marketing Plan
Market Research:
We have done market research in order to check the response of our customers in our targeted
market. It is necessary because we dont know much about our customers and their choice.
ECONOMICS
We are introducing our product in market of Lahore and Faisalabad.
Well capture 80% shares in market.
We have opportunity to expand our business into new markets by increasing our outlets.
Barriers while entering the market with new Brand name:
1. Consumer acceptance and brand recognition2. Training and skills3. Tariff barriers and quotas4. High production costs5. High marketing costs
How to overcome these barriers?1. We are new in market having no recognition of our brand. People are not familiar with
our brand name so there is need to create awareness. Well create awareness byadvertisement through print media, electronic media etc.
2. We have new employees and workers. Some of them are semi skilled, some are skilledand some others are non skilled so well train them for working in our organization sothat we can enhance productivity and efficiency. This task will be done by members ofour HR department. Other way is to hire all skilled members to reduce cost and to savetime.
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3. Tariff barriers and quotas can create hurdles so well avoid importing raw material fromother countries so that taxes could be lessened, in this way overall cost will be reduced.
4. In order to overcome high production cost, we can contact with the supplier whoprovide raw material at lowest cost in this way overall production cost will be reducedand there are more chances to earn more profit.
5. While entering in new market we have to bear many costs like cost on advertisementetc so this cost can be reduced by promoting product at just targeted market andadvertisement through ads on face book and wholesalers etc.
Factors that can affect the company
Change in Government regulations:Government can affect the company in several ways;
it can impose more taxes on imports and can also ban the import of raw material. In this way
company will bear loss. So change in regulations has bad impact.
Change in the economy:Change in economy is the most dangerous factor for our company.
If economic conditions change, like taste of people, demand, environmental changes, these canaffect our company badly.
Change in your industry:Due to energy crisis etc or if technology changes occur in industry then
these can affect our company. By adopting new technology we have to bear high costs etc and if we
dont adopt new technology then our company is expected to bear high loss.
Customers
Well sell our product to the consumers of;Age 18-30Gender Both for male and femaleLocation Lahore and FaisalabadSocial class For middle and upper classOccupation any
Education All levels
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SWOT Analysis
Opportunities
Changing customer taste
Technological advances
New distribution channel
Change in population age
Threats
Environmental constrains
Tax increases
Changes in Govt policies
Strengths
Best management
High quality
Good coaching& training
Strong need Strong leadership
CompetitionWe are entering into market with big competition.
Our major competitors are Outfitters, Breakout, etc.
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Promotion
We are promoting our product by
Sponsorship
Through Retailers and wholesalers
Online advertisement
In store advertisement
Advertising on the World Wide Web
Network of friends
Social network advertising
These are not much expensive ways to promote the product. We want to create good image in the mindof customers.
Pricing
We are entering in market with;
Price penetration
I.e. with comparatively low price and high quality. We have perfect competition in market at this time.In this way we can capture more market shares and increase our product line by introducing moreproducts in future.
Proposed Location
Locations of our outlets are:
Pace Lahore
Kohinoor Faisalabad
DISTRIBUTION CHANNEL
We are selling our products through outlets.
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Operational PlanDaily operations of the business:
cutting
Stitching
Designing
Packaging
Delivery
Production:
Organisations will adopt a variety of techniques to produce their goods or services. The techniqueadopted will depend on a number of factors including;
The product or service Quality of the product or service Quantity of the product or service Size of the organization The type of organization The organizations resources Legislation applicable to the organization
The aim of all is to add value. Adding value is the process of converting the input to an output so that its
desirability to the customer increases. The input is the product or service at the start of the production
process. The output is the product or service at the end of the production process.
Line Production:
Line production is producing goods along a line of production. The goods will be passed along a linecontaining different stages. At each stage in the line the goods will be altered. Often a person/group ofpeople will be responsible for just one stage in the process.The production method is financially the mostefficient and effective because there is less of a need for skilled workers.
Batch Production:
Batch production is the methods used to produce or process any product in groups or batches where the
products in the batch go through the whole production process together. This technique is probably the most
commonly used method for organizing manufacture and promotes specialist labor, as very often batchproduction involves a small number of persons.
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How to Reduce Production Cost?
Companies of all sizes have an incentive for cost reduction to remain competitive and to increaseprofits. For companies that offer goods for sale, production costs are a major factor in pricing andoverall performance. Approaching the initial reduction of production costs in a structured way and
putting in place a system that continuously watches for additional savings are effective ways ofachieving reductions and keeping costs down. Such a system identifies the drivers of highproduction costs and develops strategies to deal with them.
Component Costs
One of the main costs of production is the cost of the components that make up the finishedproduct. Reducing these costs even slightly on a percentage basis can have a substantial impact onthe cost of production. Sometimes companies can reduce component costs by buying in bulk orsubstituting less expensive components that satisfy the requirements. Sometimes a design willallow for fewer fasteners or less material without affecting quality. A review of such possibilitiesoften results in a decrease in production costs.
Change Suppliers
If the supplier of components is not willing to consider price reductions and can't offer lessexpensive alternatives, a company can explore sourcing from different suppliers. It can send thecomponent requirements to various possible suppliers and select those that offer the best value interms of meeting the specifications and low pricing. Sourcing from two or three suppliers keepsprices low due to competition.
Change Design
An effective strategy for reducing production costs is to redesign the product. Companies have toidentify the key characteristics of the product that are responsible for its success in themarketplace. Other features may be costly but add little value for customers. Companies canchange the design of the product to reduce costs by eliminating unimportant features whileretaining the characteristics that customers value.
Employee Training
A company evaluating its production costs may find that employees are not working efficiently orlack the awareness of costs that would allow them to help with reductions. Training employees tounderstand how the production cycle works and their role in cost reduction makes them part of thesolution. When a company trains its employees to be aware of how to reduce costs and informs
them of progress, production workers become partners in cost reduction.
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Costing Methods
Accurately applying production costs to products depends heavily on the type of product and theproduction method.
Batch costing:This method is similar to job costing, but is used for large batches of homogeneous
products. Costs are applied to each product in the batch at the same rate; each process the batch goesthrough during production will add costs to the products.
Applying costs to products is an integral part of the production process. Inefficient production methodsor poor cost accounting will lead to unprofitable products that will create financial instability in theproduction company.
Quality Control
Quality control, or QCfor short, is a process by which entities review the quality of all factors involved in
production. This approach places an emphasis on three aspects:
1. Elements such as controls, job management, defined and well managed processes, performance
and integrity criteria, and identification of records
2. Competence, such as knowledge, skills, experience, and qualifications
3. Soft elements, such as personnel,integrity,confidence,organizational culture,motivation,team
spirit,and quality relationships.
Controls include productinspection,where every product is examined visually, and often using astereo
microscope for fine detail before the product is sold into the external market. Inspectors will be
provided with lists and descriptions of unacceptableproduct defects such ascracks or surfaceblemishes
for example:
The quality of the outputs is at risk if any of these three aspects is deficient in any way.
Quality control emphasizes testing of products to uncover defects and reporting to management who
make the decision to allow or deny product release, whereasquality assurance attempts to improve and
stabilize production (and associated processes) to avoid, or at least minimize, issues which led to the
defect(s) in the first place. For contract work, particularly work awarded by government agencies,
quality control issues are among the top reasons for not renewing a contract.
Total Quality Control
"Total quality control", also called total quality management, is an approach that extends beyond
ordinary statistical quality control techniques and quality improvement methods. It implies a complete
overview and re-evaluation of the specification of a product, rather than just considering a more limited
set of changeable features within an existing product. If the original specification does not reflect the
http://en.wikipedia.org/wiki/Integrityhttp://en.wikipedia.org/wiki/Confidencehttp://en.wikipedia.org/wiki/Organizational_culturehttp://en.wikipedia.org/wiki/Motivationhttp://en.wikipedia.org/wiki/Team_spirithttp://en.wikipedia.org/wiki/Team_spirithttp://en.wikipedia.org/wiki/Inspectionhttp://en.wikipedia.org/wiki/Stereo_microscopehttp://en.wikipedia.org/wiki/Stereo_microscopehttp://en.wikipedia.org/wiki/Product_defecthttp://en.wikipedia.org/wiki/Fracturehttp://en.wikipedia.org/wiki/Blemishhttp://en.wikipedia.org/wiki/Quality_assurancehttp://en.wikipedia.org/wiki/Total_quality_managementhttp://en.wikipedia.org/wiki/Total_quality_managementhttp://en.wikipedia.org/wiki/Quality_assurancehttp://en.wikipedia.org/wiki/Blemishhttp://en.wikipedia.org/wiki/Fracturehttp://en.wikipedia.org/wiki/Product_defecthttp://en.wikipedia.org/wiki/Stereo_microscopehttp://en.wikipedia.org/wiki/Stereo_microscopehttp://en.wikipedia.org/wiki/Inspectionhttp://en.wikipedia.org/wiki/Team_spirithttp://en.wikipedia.org/wiki/Team_spirithttp://en.wikipedia.org/wiki/Motivationhttp://en.wikipedia.org/wiki/Organizational_culturehttp://en.wikipedia.org/wiki/Confidencehttp://en.wikipedia.org/wiki/Integrity8/11/2019 Creation B.plan
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correct quality requirements, quality cannot be inspected or manufactured into the product. For
instance, the design of a pressure vessel should include not only the material anddimensions,but also
operating, environmental,safety,reliability andmaintainability requirements, and documentation of
findings about these requirements. Total Quality Management (TQM) refers to management methods
used to enhance quality and productivity in business organizations.
Customer Services
Customers need different types of information or support services from a company. So we are providing our
customers with different services like online ordering, color warranty, and repairance and above all these we
are providing:
High Touch Customer Service
This is a popular style of customer service in high-end stores. Theres a well refined script that involves
approaching customers when they enter and saying something they can agree with ( e.g. isnt it a niceday?). When done correctly this leads to great experiences for customers and companies.People in company personally welcomed each new member.
Human resources:Human resources are the most important asset of a call center. The employees who interact with thecustomers in a contact center are known as agents. These agents should know the different aspects oftheir service and should try to solve the customers queries to satisfaction without any do-away withthe call attitude. To build these human resources, companies should develop a rigorous trainingprogram and should ensure that their employees are updated with the changes or modifications in theservices through regular training sessions. Vendors should also motivate the agents to increase their
satisfaction and optimize their productivity and retention.
Inventory Control Methods
We control inventory by two methods:
Minimum/Maximum (M): The minimum/maximum control specifies the point at which an itemshould be reordered (minimum stocking level) and a reorder quantity ceiling (maximum stockinglevel). The NCAS uses the order point (minimum stocking level), inventory standard (maximumstocking level), and order multiple to determine the order quantity.
o When inventory levels for an item fall below the minimum, as designated by the value inthe ORDER POINT field, the Company will notify the warehouse manager that
replenishment should be initiated.o Theinventory standard is the ceiling or maximum inventory level permitted for that
item at that warehouse. In other words, replenishment should not exceed the inventorystandard.
When the minimum/maximum control is selected, our company does not allow an order that causesinventory to exceed the established inventory standard or maximum quantity. This is known as amaximum exception. In this case, the warehouse manager receives a warning message from the system.
http://en.wikipedia.org/wiki/Dimensionhttp://en.wikipedia.org/wiki/Safetyhttp://en.wikipedia.org/wiki/Reliability_engineeringhttp://en.wikipedia.org/wiki/Maintainabilityhttp://en.wikipedia.org/wiki/Maintainabilityhttp://en.wikipedia.org/wiki/Reliability_engineeringhttp://en.wikipedia.org/wiki/Safetyhttp://en.wikipedia.org/wiki/Dimension8/11/2019 Creation B.plan
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If this message is ignored, the order in question will be rerouted to a special warehouse approver to getapproval to exceed the inventory standard.
In contrast, a minimum exception occurs when the inventory level of an item drops to or below the
order point. When this occurs, the item will appear on the Replenishment Action Report (RRACT). This
report notifies the warehouse manager that it is time to replenish the item.
Order-Cycle System: In this system, every 30, 60 or 90 days you go through your inventory and check
product levels. You order more of products that you suspect will sell out before the following scheduled
inventory checkup. This is the worst of the four inventory control methods. It is fraught with danger. If
you only look at your inventory levels every 30 days or so, you could run into overstock problems or
shortages. You should steer clear of this inventory control method.
Product development techniques
1. Idea Generation
2. Idea Screening
3. Concept Development and Testing
4. Business Analysis
5. Market Testing Technical Implementation
6. Commercialization New Product Pricing
By following these steps we have developed our product.
Here are three core techniques to use:
1. Find the highs and the lows.Rather than asking consumers what they want, ask them about what
they already have. What do they like about current products? What don't they like? They'll be able to
give you much more useful information when they are drawing from personal experience.
2. Be a fly on the wall. Try to see everything they do that relates to the need your product fills. There's a
great story about how the legendary "Got Milk" campaign emerged from a media team observing real
consumers with (and without) milk in their homes.
3. Look at the ecosystem.Few products exist in a vacuum. Chairs and desks are built at heights that
work together. I buy motor oil because they make cars that require it. As the relevant peripheral
products evolve, new opportunities emerge for you to evolve your product.
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Location
Location is very clear, easily accessible with a clean environment.
There is enough space for parking etc.
Facility of generator is available in case of load shading.
Location is convenient to transportation and suppliers.
We are not spending our capital for construction of new building, so we are working in a
building at rent.
Business will be done for whole day from 9:00am to 11:00pm.
Personnel There are 15 employees working on our product.
Skilled labor is hired. Some of them are unskilled and for them we have started training
programs.
How to Find the Right Employees?
Show Them Why They Should Work for You
Recruit the Best of the Best of the Best
Use the Right Hiring Methods
Takeaway
Pay structure:
We have hired 15 employees and each member is earning 10,000 salaries and labor force is also hired at6000 per labor. We have almost 35 labors.
Training methods:
Following training methods are used in our company:
On-The-Job Training:
Jumping right into work from day one can sometimes be the most effective type of training. On-the-jobtraining gives employees motivation to start the job. Some reports indicate that people learn moreefficiently if they learn hands-on, rather than listening to an instructor. However, this method might notbe for everyone, as it could be very stressful.
Coaching/Mentoring
Coaching/mentoring gives employees a chance to receive training one-on-one from an experiencedprofessional. This usually takes place after another more formal process has taken place to expand onwhat trainees have already learned. Coaching/mentoring gives trainees the chance to ask questions andreceive thorough and honest answers - something they might not receive in a classroom with a group ofpeople.
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Group Discussions & Tutorials
These most likely take place in a classroom where a group of people discuss issues. A better form oftraining than lectures, it allows all trainees to discuss issues concerning the new program. It also enablesevery attendee to voice different ideas and bounce them off one another.
Films & Videos
Films and videos can be used on their own or in conjunction with other training methods. To be trulyeffective, training films and videos should be geared towards a specific objective. Only if they areproduced effectively, will they keep the trainees attention. They are also effective in stimulatingdiscussion on specific issues after the film or video is finished.
Case Studies
Case studies provide trainees with a chance to analyze and discuss real workplace issues. They developanalytical and problem-solving skills, and provide practical illustrations of principle or theory. Theycan also build a strong sense of teamwork as teams struggle together to make sense of a case.
Conclusion
Many avenues exist to train employees. The key is to match the training method to the situation. Assesseach training method implemented in the organization and get feedback from trainees to see if theylearned anything. Then take the results from the most popular and most effective methods to design aspecific training program.
CODE OF CONDUCT
We expect that all of our employees, officers and directors will treat each other, our customers,
and our suppliers with goodwill, trust, and respect. As a Company, we value honesty, high ethical
standards and compliance with laws, rules and regulations.
We are committed to:
A standard of excellence in every aspect of our business and in every corner of the world;
Ethical and responsible conduct in all of our operations;
Respect for the rights of all individuals; and
Respect for the environment.
Mandatory Requirements Perform all work in accordance with safe work practices and your supervisors direction. Maintain good housekeeping in your work area. Inspect all tools and equipment prior to use to ensure they are in safe operating condition and
appropriate for the job. All tools determined to be unsafe should be tagged and taken out ofservice.
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Operate all vehicles and mobile equipment in accordance with site rules, regulations andmanufacturers specifications.
Report any near-misses, unsafe conditions, accidents and damage (to property or equipment) toimmediate supervisor.
Prohibitions
The following are prohibited at all times on all company property and all company jobsites. Possession or consumption of alcohol or illegal drugs. Possession of firearms. Engaging in fighting or horseplay. Unlawful harassment or discrimination. Theft, vandalism. Damage, disabling or interfering with safety, fire fighting or first aid equipment. Reckless or negligent use of company equipment or vehicles. Arriving for work or remaining at work when ability to perform the job safely is impaired.
Child Labor
Manufacturers will not use child labor.
The term "child" refers to a person younger than 18Manufacturers employing young persons who do notfall within the definition of "children" will also complywith any laws and regulations applicable to suchpersons.
Coercion and Harassment
Manufacturers will treat each employee with dignityand respect, and will not use corporal punishment,threats of violence or other forms of physical, sexual,
psychological or verbal harassment or abuse.
Nondiscrimination
Manufacturers will not discriminate in hiring andemployment practices, including salary, benefits,advancement, discipline, termination or retirement,on the basis of race, religion, age, nationality, social orethnic origin, sexual orientation, gender etc.
Association
Manufacturers will respect the rights of employees to
associate, organize and bargain collectively in a lawfuland peaceful manner, without penalty orinterference.
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Health and Safety
Manufacturers will provide employees with a safe andhealthy workplace in compliance with all applicablelaws and regulations, ensuring at a minimumreasonable access to potable water and sanitaryfacilities; fire safety; and adequate lighting andventilation.
Compensation
wages are essential to meeting employees' basicneeds. Manufacturers will, at a minimum, complywith all applicable wage and hour laws andregulations, including those relating to minimumwages, overtime, maximum hours, piece rates andother elements of compensation, and provide legallymandated benefits. Manufacturers will compensateemployees for overtime hours. Some othercompensations include Medical care, Dependencyindemnity compensation and some other benefits.
Protection of the Environment
Manufacturers will comply with all applicableenvironmental laws and regulations.
Other Laws
Manufacturers will comply with all applicable laws
and regulations, including those pertaining to themanufacture, pricing, sale and distribution ofmerchandise. All references to "applicable laws andregulations" in this Code of Conduct include local andnational codes, rules and regulations as well asapplicable treaties and voluntary industry standards.
Monitoring and Compliance
To engage in monitoring activities to confirmcompliance with this Code of Conduct, includingunannounced on-site inspections of manufacturing
facilities; reviews of books and records relating toemployment matters. Manufacturers will maintain onsite all documentation that may be needed todemonstrate compliance with this Code of Conduct.
Publication
Manufacturers will take appropriate steps to ensurethat the provisions of this Code of Conduct are
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communicated to employees, including theprominent posting of a copy of this Code of Conduct,in the local language and in a place readily accessibleto employees, at all times.
Disciplinary Actions
Upon breech of the company rules, the following disciplinary actions will be administered:
1st Warning Verbal Warning. 2nd Warning Written Warning. 3rd Warning Suspension or Permanent Dismissal/Termination
All notices shall be explained to any employees, their supervisors, subcontractors, and unionRegarding violations. Copies shall be distributed to all applicable parties and personnel records.
Inventory
We are purchasing raw material (Clothes) and providing Shirts via outlets.
Lead-time for ordering is 3 to 4 working days to complete an order.
There is no turnover in our company.
Suppliers
All the organizations of clothing from Faisalabad are our suppliers.
Whichever one gives us the best quality cloth at low cost will be preferred.
CREDIT POLICIES
No Credit Policies.
Every item is sold on cash.
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FINANCIAL PLAN
STARTUP EXPENSES AND CAPITALIZATION
Investment 4250000
Security 110,000
Furniture 50000
Patent 10,000
Advertising 35000
Utilities 27000
Rent 90000
Starting Inventory 100000
Miscellaneous 5000
Salaries 400000
Stationery 4000
Total 5981000