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Executive summary
Renaissance a business venture initiated by a group of ten people, the main purpose of this
business is to help the graduates, women and other people of the society intend to become
entrepreneurs. In today’s context it is not that easy to find a good job promptly and sometimes
jobs are not that much enriched. Graduates study and witness several issues throughout their
learning, they are taught in a pragmatic manners so that they can do something unconventional
but it has been deteriorating tendency among many graduates of being entrepreneur. That’s
why Renaissance comes up with the ideas of making entrepreneurs for the nation. It will ensure
a couple of benefits first, people can awake their dormant talents and there will be lots of
business opportunities for the country. The vision of Renaissance is “Making the country one of
the most appealing business states across the globe”.
The second part of the report is the industry analysis where it has been stated some key
aspects, history, economic ups and downs critical success factors etc. regarding this industry. As
it has been found that the key success factors are; efficiency, strong management team, bunch
of prudent consultants, service variety, a field of specialization and partnerships. Consulting
firms have been providing several services in such areas like; finance, management, marketing,
technical and scientific areas. They work as an extended wing of the clients. Firms must be
quite efficient and their service has to be the reliable one and upon depending on their services
clients can overcome their road blocks. This industry has faced several upturns during 1980s
and 190s and due to slump in 2009 it also faced a downturn as well.
Market segments for Renaissance have been the youth society, and other aged people
interested in business of both urban and rural dwellers. These people have the quality of
openness to change and enthusiastic in business. SWOT analysis have also been conducted
where Renaissance’s main strengths are innovative business project with its unconventional
business thought, its expert subject matter experts who are quit knowledgeable in their fields.
Weaknesses have been its newness that questions its reliability and unavailability of the experts
as sometimes it incurred plenty of expenses to hire expert consultants. Opportunities are
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viewed as there are lots of talented graduates who can really initiate their own businesses and
lack of quality jobs that actually encourage customers being entrepreneurs. Threats are such
that poor economic conditions that impede smooth business for the customers and also fears
of many customers to become entrepreneurs because of the perception of being failure.
Marketing plans have been quite transparent, here key promotional tools are advertising on
different social networks, daily newspapers, direct communications, posters and also some
prudent methods such as; seminars, talk shows in different areas. there are four types of
services such as; Arun Tarun (Youths resemble to the sun), Alokito Jibon ( Enlightened life),
Sreshtha (The great one) and Einstein Hawkins and these services will be available respectively
to the youths, females, people intending to business and technical people like engineers,
agriculturists, information technologists and so one. So the pricing strategy has been quite fair.
For any type of small business the consulting fees are BDT: 10,000 to 15,000 for a technical
business the prices will be BDT 20,000 to 30,000 and for large business initiatives prices will be
BDT 100,000 to 200,000.
Renaissance management team comprise with the teams of foundation, management,
advisors, SMEs etc. In the founding team it has got an organogram topping with Chairman, then
vice chairman and eight of directors. Advisors are also there to provide guidelines in legal,
taxation issues. SMEs are those consultants who provide constructive ideas for a business they
are of different fields such as; finance, economics, marketing, engineering, agriculture etc. the
management team contains chief executive officers, other chief officers in different
departments.
At present Renaissance has four types of services for each of them, firm is prepared enough but
it also requires some more developments. Right now services can be conducted at a moderate
manner but later on there will be some additional investments and some local foreign experts
will also be hired to provide best services.
Locations have also been selected considering the convenience in reaching the customers and
its business suitability. Right now there will be a head office at Dhaka at either Banani or
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Dhanmondi or at both because of reaching graduates more easily as there are plenty of
universities located. And regional offices are being planned to establish in both Chittagong and
Sylhet because the two cities are vital points of business and also there lots of private and
public universities.
The venture will start with an amount of BDT 5,000,000 where 100,000 BDT will be acquired
from the creditors. According to the financial projection Renaissance will achieve a net profit of
BDT 546,000 in fiscal year 2014-15 and BDT 828,100 that indicates an increase of 66% increase
in profits. There will also be increased in the balance sheet. Ratio analysis also indicates a sound
condition; current ratio has been 3.32 and 3.76 for the next year, profit margin ration has been
21.84% and 27.60% for the year, asset turnover ratio has been .47 times for the fiscal year
2015-16, return on asset is 13%, return on equity 15.96%, debt to asset ratio is 19.48% for the
fiscal year 2014-15 and for 2015-16 the ratio is 18.46% and the times interest earned ratio is
8.8% for 2014-15 and for 2015-16 10.86%.
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Section: 1
Company Description
1.1 Introduction
The name of the proposed venture is “Renaissance” it’s a consulting firm that aims at
producing well knowledgeable and enthusiast entrepreneurs for the country. The firm will be
based on providing realistic advises so that entrepreneurs may find the best businesses in
accordance to their preferences. The firm has been thought considering some important issues
as the customers (especially graduates) can think beyond the conventionality and innovate the
brand new ideas for ventures. The focal point here the customers will be solicited to attend
seminars, workshops or different symposiums that will be arranged by the company, attendees
will later on will be provided the proper scenario of a particular business. These will be
organized in different parts of the country, especially in campuses, or other places to attract the
graduates.
In today’s context the most important thing has been the more innovation the better prospect
to explore, if it confirms the worthiness. That’s why Renaissance has come up with the idea of
promoting the notion of making entrepreneurs so that the graduates can be self-reliant. It’s
been a trend that many of the graduates actually fantasize about being the incumbent of the
posts in different Multi-National Corporations, Banks or other prestigious organizations. In spite
of the talent they are quite risk averse. According to an article of business week it has revealed
that only 42% among the students want to make entrepreneurs. In another study conducted by
Karen & Klein in business week shows that 5.9% decrease in new ventures in 2011 from 2010
where only 543,000 new businesses has been created in USA. So considering this fact this firm
(Renaissance) is being implanted to make the graduates become self-reliant ones and make
their own bosses.
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2: Vision, Mission and Objectives
In the previous discussion it’s been conspicuous that Renaissance will help make entrepreneurs,
yet there have been some strategic facts that actually speak profusely of the firm. The firm’s
vision, mission and goals are as follows:
Vision:
“Making the country one of the most appealing business states across the globe”
Mission:
“Generating plenty of feasible business ideas that pave business opportunities amongst the
people of the country”
Objectives
To accomplish the mission Renaissance has set some goals which will be corresponding and
time perspective such as:
To set a target market (graduates, youth society or other interested people)
To encourage the customers in a relevant manner
To surface out excellent business ideas that will help create meaningful aspirations
amongst the graduates and the customers.
To build a strong rapport with the target customers and communicate them at regular
intervals.
To make a market irrespective of rural and urban territories.
These are the strategies point of views of Renaissance with some meaningful aspirations.
Nonetheless these are not that easy to achieve, some contingencies will take place that could
impede the pace the firm. But if things are thought in advance it will later help assume things
more preciously.
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1.3 Proposed Services
Services that Renaissance intend to provide to its customers, the services have been named
with respect that best fit the title and that are the means of generalizing the broad customers’
segmentations;
Arun Tarun (Youths resemble to the Sun): both of the terms are Bengali, as Arun means the
sun and Tarun means the youth, these have named considering the youths who are highly
aspirant and most of them aged from 22-26 the fresh graduates. These people usually
belong to generation ‘Y’ the people who are born after the year 1979, these people tend to
be much entrepreneurial, having sound knowledge in technology and most of them are
aware of multiple cultural aspect as they surf internet regularly, watch English and Hindi
movies a lot. They will be encouraged through different promotional means which will be
discussed later of the report. They will be encouraged to launch ventures of different
categories such as; E-commerce business such as; online retailing of different products,
small and medium enterprises such as fast food businesses, fashion house, or other
agricultural businesses that will require less capital to start.
Shreshtha (The greatest): this Bengali term “Sreshtha” used for females, who are actually
the best ones. Here the potential and the greatness of women are being admired. Women
in our country have to sacrifice their hopes and aspirations and must conform to the
expectations of their families in some cases. Nowadays things have started changing and
women are becoming entrepreneurs and initiate splendid ventures. As in our country some
admirable business women have ensured a recognized identity such as; Biwi Rasel, Farzana
Shakil, Kaniz Almas Khan, Tamara Abed etc, both have been quite successful in their areas of
expertise. Women will be counseled by some expert women and they will be assisted to
venture their own businesses in their special areas like: Fashion house, beauty parlor, handy
crafts’ businesses
Alokito Jibon (Enlightened life): under this category a broad number of people will be tried
to include. It will be emphasized for both men and women at different ages. People may or
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may not be the graduates or from both urban and rural dwellers. A huge number of
business ventures will be taken into the account. Subject Matter Experts SME will counsel
them and provide them the best expert opinions to start a business
Einstein-Hawkins: This service is actually named by the two great physics scholar Albert
Einstein and Stephen Hawkins. This scheme is especially for the technical people such as:
Information Technologists, Architects, and Engineers of different disciplines. They will be
assisted venture their own businesses they will be counseled by the SMEs of their fields.
These are some glimpses of the proposed services in the chapter of Service development and
strategies will be discussed in details.
1.4 Legal Status:
The firm is registered under “The Company Act-1994” and it will be initially a private company
as it ranges the member of 10 who are the key business people.
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Section: 2
Industry Analysis
Renaissance is consulting firm and it has to be sated that it’s a unique firm. It rarely resembles
to other types of consulting firms in the country. There are plenty of consulting firms in the
country who provide services of different types. Consulting firms usually do partnership with
many of the large organizations to provide particular activities on behalf of the firms.
2.1 History of the consulting industry
According to the article regarding management consulting in Wikipedia the first firm is Arthur D.
Little Inc. founded in the year 1886 and their field of expertise was in general management by
conducting technical research. However it is also believed that the first consulting procedure
was established in 1893 by Fredrick Winslow Taylor who independently provided consulting
practices in Philadelphia. Booz Allen Hamilton was founded by Edwin G. Booz, a graduate of the
Kellogg School of Management at Northwestern University, initiated management consultancy
in 1914 being the first ever service provider for both government and industry clients.. Later
1926, James O. McKinsey, professor of Managerial Accounting at the University Of Chicago
Booth School Of Business, founded McKinsey
2.2 Major areas of consulting
Consulting firm provides different types of services for smoothing out the business operations.
In many cases firms and individuals depend on consulting firm in order to minimize the costs
and utilize the expert advices. Consulting firms provide such services
o Management
o Technical
o Scientific
o Logistics
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o Security & vigilance
o Human resources
o Information technology
o Marketing
o Finance and Accounting
2.3 Some international consulting firms
US based consulting firms
o Booz Allen
o Deloitte Consulting
o IBM Global Services
o McKinsey & Company
Irish based consulting firm
o Accenture
German based consulting firm
o Roland Berger
Indian based consulting firm
o Tata Consultancy Services
2.4 Some national consulting firms
In Bangladesh there several consulting firms who provide excellent services in different aspects
and they partner with sever national and international organizations. Some of these are
o Pro age associates
o HR kites
o E-zone HR ltd
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o Sirus Marketing and so on
2.5 Key success factors in the industry
Efficiency: The most important factor for this industry and for survival is the efficiency.
Firms in the industry can be outcast if they lack efficiency. Firms must provide best
services to its customers in terms of expertise and money.
Strong management team: Firms must be incorporated with prudent management.
They also need the expert consultants having adequate and updated knowledge of their
respective areas
Particular specialization: Consulting firms usually an area of specialization such as;
technology, production, management, scientific etc. they must ensure it and they have
to be competitive in respective aspects.
Variety in the services: Firm should be versatile enough and must not rely on particular
issues. The more they offer variety of services, the more reliable it can become to its
customers.
Partnerships: To quite an extent the firms must rely on partnerships with large
corporations and distinguished individuals. So promotional has to be defined in such a
way that will enhance the scopes of much partnership with the clients.
This business contains that much rick as in other manufacturing and commercial
establishments. The consulting firms must be aware of the characteristics that mentioned
earlier other it become too difficult to survive.
2.6. Economic states of the industry:
The industry has been facing several ups and downs since its inception. It acquired a growth of
20% in 1980s and 1990s. It has also had a fall in 2001-2003 worldwide because of economic
conditions. It also grew smoothly by 2009’s economic downturn.
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Section: 3:
Market Analysis
In this chapter key market prospects and the target customers’ depiction will be elucidated. As
the firm while intending to explore or make a good business out of it, it must define its market
well to assess its potential buyers and the mode of competition properly. The focal issues are
here; the market segmentation, buyer and the competitor analyses will be discussed in detail to
generalize the market more specifically.
3.1 Market Segmentation
Literally market segmentation is to divide the customers into distinct groups such as;
geographic and demographic.
S.l. Segmentation type Target Markets
1.
Geographic
Urban dwellers
Rural ( Mostly the graduates/people from remote areas)
2. Demographic
The young people mostly aged up to 22-26 years
Male, female ( who are highly expected and tried to
attract the most )
The educated society who have had graduates from
universities or colleges
3. Psychographic
The target market has the youth so it’s obvious to attract
the people who are gregarious in nature and having an
ease to change.
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In the above table it has been discussed about the target market segments. The segments have
been divided into three parts. In the geographic segmentation is has stated about both the
urban and the rural people, as the youths are the key targets so it does not generalize in way of
focusing a distinct part. The rural people who are from remote areas where opportunities are
few and people are of these areas mostly dependent on the urban areas. It will be emphasized
to make a worthy venture in these areas so that employment opportunities of these areas can
be paved.
Demographically it has been focused the people of aged up to 28 but this does not mean that
only the people up to these ages will be targeted. It will expand up to other aged people. Both
male and female are targeted and women who are one of the most key parts of economic
growth of the country so their participation is the most key thing over here.
Psychographic issues have been mentioned as firm focuses the people who are enthusiast and
challenging that’s extrovert people are the targets. As the people who are conservative and
reluctant to change they might find such initiative not that much significant. But if it is done so
firm will lose its universal appeal. That’s why some strategies have to be undertaken to make it
a worthy one to everyone.
3.2 SWOT analysis
One of the most substantial factors that determine the internal and external aspects that
directly and indirectly the business operations is the SWOT analysis, which states
S: Strength
W: Weakness
O: Opportunity
T: Threat
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Now Renaissance SWOT analysis will be discussed as follows
Strength: The key strengths for this venture are
Innovativeness: As this firm has had a different appeal and such venture will attract its
target customers well. It deals with the people who intend to become entrepreneurs
and people do feel quite afraid when they plan a new venture. They think their hard-
earned money will go in vein. So by its distinct mode it will show the proper paths
towards the people to make a worthy venture where profitability is quite assured by
expert opinions
Expert team: Another significant aspect is the SME who are quite knowledgeable and
can guide people fruitfully. The SME includes all types of experts who are highly prudent
and have had a well round of real experiences in their field of expertise. They will be of
both from the firm and also from outside. These people are; real business and financial
analysts, entrepreneurs (male & female), technical people such as; engineers, IT
specialists, agriculturists and researcher in different fields. It will maximize the reliability
to the customers
Financial backups: The venture will start with sound financial backups so that it assures
a sound durability for the firm. At least three years financial backups are ensured by its
owners.
Legal status: As it’s been mentioned earlier that the firm will be registered under ‘The
Company Act: 1994’. So it is a legally recognized venture which enhances the trust to
the customers.
Weakness: Despite having all these factors it also has got some impediments which work as
a stigma for the firm. The basic weaknesses are for the venture as follows;
Nature of the business: As it’s not a manufacturing unit, so the firm does not deal
with a tangible product nor is it that easy to make profit. So all it depends on the
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service that it provides. A lack of expansion in the business may occur if it fails to
attract its potential customers. Service oriented firms must rely on the reputation or
a strong brand name, but it does not come overnight.
Availability of SMEs: It has been stated earlier that the SMEs will be hired outside it
it’s needed, so it is a question how better and the perfect ones are being hired. If it’s
not ensured then all the efforts will go in vein.
Lack of reliability among the customers: Customers are not that easy to attract. As
it’s a new one and has not had that prestige it could cause a sense of not a reliable
one to the customers. Customers may find this business a non-worthy one.
Opportunity: An external aspect but strongly influence the business here Renaissance has got
opportunities in spite of some inevitable weaknesses such as
Increased numbers of graduates in the country as people are much conscious about
education and lots of students get enrolled in universities every year. So the graduates
are a huge market for the firm and most of them intend to launch their own star ups
Lack of quality jobs in the market except a few jobs most of the jobs don’t attract the
graduates in terms of standards and salaries. Graduate often regret for the jobs they
currently hold and that makes them go abroad for a better standard of living.
Private university graduates who can amass a handsome sum for a new start up. The
students of these particular area specially graduates of North South, BRAC or
Independent University Bangladesh are usually affluent ones and they can initiate their
business
Sound knowledge of technology among the youths which can create a lot of business
opportunities for them. Computer based business has ensured a lot of opportunities in
the country
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Threats: Threats can be depicted as follows
Poor or moderate economic status of the customers which can impede them to dare
think of a new venture
Reluctance to the people of being entrepreneurs as they may think of a job where they
can assure themselves of steady income at regular intervals
Political turmoil which affects business and our country has to tolerate a plenty of loses
every year
Bank loans with the impact of usury, venture may definitely needs capital sometimes
loans from the financial institute and the borrowers face the curses of high interest
rates and failure to pay the interest may even cause of termination of the venture or
even bankruptcy which will definitely affect the target customers
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Section: 4
Marketing Plan One of the most important parts for any business to set a well marketing plan to reach the
target customers well, at this point Renaissance’s marketing plan will be depicted in detail
where it will be focusing key marketing plans and how well it will try its target market
segmentations.
Since the business is a different one and also a new venture the inevitability of marketing plan
is much substantiated. If it lacks or contains a poor one to strategize it might cause a sheer
failure for the business. The marketing plans will be depicted in terms prices, and promotions.
4.1 Marketing Strategy at a glance
Previously four types of services have been stated such as: Arun Tarun, Sreshtha, Alokito Jibon
and Einstein-Hawkins. Each of them needs distinct modes of plans to strategize to make these
worthy ones. main focuses are the youth society and as per the segmentation process it has
been depicted about both urban and rural dwellers and the people who are inquisitive in
nature they are targeted so the key things are here to identify the graduates who are of these
nature, quite challenging, skilled communicator outspoken, creative, and confident and capable
of coping up with any situations. So to make aware of this an acute survey will be conducted by
the research assistants at different universities and different locations to assess who are really
capable of doing a business and intend to become entrepreneurs. Things like their personal
lives, belongingness, financial soundness, family backgrounds and most importantly their
interests of being entrepreneurs.
By doing so it will help identify the customers and provide assumptions who are our potential
buyers for the services. They will later be communicated and influenced to take services from
the firm. This is a continuous process that will be conducted in different time perspectives.
Strategies will also be created to make more customers.
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4.2 Promotion means
Promotions require intellect and money to spend. It brings a lot of success for the organization,
this is the way to make aware the customers more about products. This also bridges the gaps
between service introducers and the customers. Here main focuses of the promotions are as
follows;
Advertisement: The initial approach for promoting the services is the advertising.
Advertisements will be made by experienced advertisers to attract the customers more
efficiently. The modes will be of different type. One of these will be online advertising which
has become very popular and for this business as it will appeal the youth society who is
quite active in social networking websites such as: Facebook, Twitter etc. there will be a
Facebook fan page. A website will be created to make aware the target customers more
about the firm. Other means such as Television advertising which can cover a huge portion.
Billboards in different major areas of Dhaka city so that customers can have a glimpse on it,
a toll free customer care number will be shown there so that customers can clear their
quarries. Newspapers will be one of the most effective modes of promotions; here
attractive ads will be published on the pages of newspapers. The most popular newspapers
will be chosen such as; Prothom Alo, Ittefak, The Daily Star, The observer etc.
Seminars, talk shows: Another means will be seminars talk shows at different universities,
areas or convention centers. This is a broad means of promotions seminars or talk shows
will be conducted by the speakers who are expert in particular fields such as; financial
analysts, researchers, technical people like engineers, architects, agriculturists, information
technologist, women entrepreneurs etc. these arrangements will also be telecast on
television channels. These are treated as promotional means because it will approach the
customers about the firm so that they can become eager for the firm’s services. Seminars
will be advertised on posters, social networking sites so that customers know about these
and attend them regularly. Seminars or talk shows will be organized at different times on
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different issues. Different types of seminars will be conducted to attract different types of
customers.
4.2 Pricing Strategy
Pricing should be strategized in such ways so that it ensures the optimality between the quality
and the prices. As the key source for the firm’s revenues is the consulting fee. The fees are
planned in such ways so that it can be easily bought by the customers.
For general business plan (Small or Medium venture) consulting the price is BDT 10,000-
15,000 depending on the nature of business. Where it includes all making the business
plan, its feasibility, how it well fits, profitability, key markets. So at this price level
customers will get all sorts of benefits and be adequate aware the business they intend
to initiate.
For technical business plan (Einstein-Hawkins) charge will be BDT 20,000-30,000 for
small business where expert people will provide the counseling to the entrepreneurs.
Different issues regarding the venture, its markets, points of differentiations will be
focused as well. Some foreign experts might be hired in case of any complicated
business plans.
For a large investment business where the investment amount is relatively higher and it
requires more accurate information the consulting fees will be higher it can be BDT
100,000 -200,000 it can be for both general and technical business plans. There will be
much more research on the business and consulting will be more delicate and accurate
to make the venture a worthy one.
Seminars and talk shows will tried to be conducted at free of cost at different
universities in terms of promotions. But some seminars will be conducted for generating
revenues at different places. In this case a small amount will be charged it can range
from BDT 100-1000
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Section: 5
Management Team Renaissance’s management team includes different types of personnel, owners, advisors and staffs (Salaried) etc.
5.1 The Founding Team
This team includes the people who actually run the firm and key decision makers. They have
significant impact on the organizations the key people are here as follows;
5.4 Management Team
Abovementioned departments are the heads and key controller of the respective functional
departments that will be responsible for their respective departments. Some line managerial
posts will be occupied by talented and experienced people for the departments to carry out the
Chairman
Vice- Chairman
Director Director Director Director Director Director Director Director
Chief Executive Officer (CEO)
Chief Marketing Officer (CMO)
Chief Finance Officer (CFO)
Chief Information Officer (CIO)
Chief Procurement Officer (CPO)
Chief Research & Development Officer (CRO)
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operations for each department. Staffs will be recruited who will report to their immediate
supervisors of the departments. These people are salaried and be hired based on qualifications.
5.2 Advisory Board:
It will also contain an advisory board will be advising the firm on different aspect a chief
advisors will be recruited, some advisors will be appointed or hired in different aspects such as;
legal, accountancy or taxation related affairs.
5.3 Board of SME
A board of subject matter experts will be appointed from both internally and externally. These
subject matter experts will provide the consultancy to the customers. They are expert in their
respective fields. This board contains people form finance, economics, marketing, information
technology, engineering, statistics, agriculture, university faculty members and entrepreneurs
of different fields.
5.5 Strategic Partners
Apart from this a strategic partnerships will be built with some people who will have influences
on the firms, such people can be the University Faculty members, (these people will be of
different disciplines such as; business administration, economics, science, information
technology, engineering, agriculture) and researchers of different fields.
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Section: 6
Operations Plan Renaissance is not a manufacturing unit; it is a service oriented business. Hence it doesn’t have a procedure of production. Throughout this section some operational factor, location planning will be discussed.
6.1 Location
The location for the proposed venture is being tried to be in the commercial areas of Dhaka
especially at Dhanmondi or Banani and some other two major cities of Bangladesh Chittagong
and Sylhet will be made offices later.
6.2 Reasons behind choosing these locations
Dhaka being the capital of Bangladesh and the most preferred city for a business. The
city has been the address of plenty of large and small business organizations. It has also
been stated earlier that Dhanmondi and Banani are going be the offices. Firm’s
management is considering at least one of these two areas and they might make offices
in both of these areas latter. Renaissance’s key customers are the students and in the
city Dhaka there are some major public universities such as; Dhaka University,
Bangladesh University of Engineering and Technology, Sher-E-Bangla Agriculture
University and also lots of Private Universities. Dhanmondi and Bananai these two areas
have got plenty of private universities. So it will be an ease for the firm to reach the
graduates more easily than any other areas.
It has also been mentioned about other two major cities of Bangladesh, Chittagong and
Sylhet. These two areas have also got some reputed universities like, Chittagong
University of Engineering and Technology, Chittagong University and in Sylhet one of the
best science and Technology Universities Shajalal University of Science and Technology
is located with numerous private universities.
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These areas have some business appealing features such as; sophisticated places for
offices with modern amenities, good communications systems and ease of
communicating with the consultants.
6.3 Basic pitfalls of the locations
Despite having a lot of facilities here some disadvantages are about to be faced such as;
Excessive office rent: In the areas of Banani and Dhanmondi the office rents are
skyscraping which will incur a huge expenditure for the firm. Such expenditures such as;
advance office rent that requires a lot of money at a time.
Traffic Jam: Another head burning problem is in the Dhaka city is intolerable traffic jam
which will also impede the business smoothness. It will cause several problems such as;
employees’ late arrival in the office, late arrival of necessary things for the office and
also it might create problems for the customers in rendering the services.
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Section: 7
Service Design and Development Plan There have been four different types of services with distinct features all these are in
developing stage. These services are being planned delicately so that these can be worthy in
terms of necessity and profitability. Now the development phases of the proposed services are
being depicted as follows.
7.1 Services at a glance
SL Services name Target Markets Key promotions’ means
1 Arun Tarun Youths aged from 22-26 Social networking websites
Direct communications
2 Sreshtha Graduate Women
Women of different places
Social networking websites
Direct communications
3 Alokito Jibon
People of different ages of
different places
Direct communications
Seminars/Talk shows
4 Einstein Hawkins Graduates in engineering, IT,
agriculture etc.
Direct communications
Invitations for joint research
work
Social networking sites
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These are the services, target markets and key promotional means, as discussed earlier in
different sections.
7.2 Current development Plans for proposed services
For Arun Tarun firm right now is planning some easy and flexible business plans. Such
plans are of the venture of
o Small restaurant,
o Coffee shop
o Fashion house
o Online shopping
o Music stores
o Small department shop
o Native hand crafts
o Agricultural (Small sized crabs, mushroom or prawn farming)
o Garments’ accessories
o Event management
These businesses are about to be carried out by the fresh graduates these don’t require a lot of
capital. Currently Renaissance’s management team is planning to hire such consultants who
have expertise in these fields. Firm will provide adequate counseling in these issues. A city wide
survey is going to be conducted and an adequate number of research assistants are appointed
to make survey around the city of Dhaka initially on these businesses prospects. The key things
are here; firm has adequate number of business analysts who have had previous experience in
these businesses fields and numerous research assistants.
For Sreshtha which is designed for especially for women, here both graduates and other
types of women who are interested in business will be approached. They are encouraged to
initiate such ventures
o Beauty Parlor
o Boutique Shop
o Online shopping
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o Event management
And also any other businesses they intend to launch. Firm initially has some expert women who
are real life entrepreneurs they will counsel them and provide adequate information of such
business and the remaining things are same that previously discussed.
For Alokito Jibon the business will be a big one. A huge sum is required to start up that’s
why it covers a huge number of people across the nation. The ventures can be ;
o Ready-made garments factory
o Real estate business
o Manufacturing unit of different industries
o Agricultural businesses of large amount
o Shipping corporations
o Printing press
o Broker house
o Large department shop
To counsel the customers of such ventures firm has experts, analysts and technical personnel
with lots of experiences and recognitions. These also require prudent research resources of
industry analyses. Some real life entrepreneurs and foreign experts are also hired to provide
consultancy to the customers.
For Einstein-Hawkins project firm initially plans to help start ventures which are less risky
and capital oriented. The ventures over here can be
o Architect firms
o Software firms
o Constructions firms
o Research firms
o Audit firms
o Manufacturing units of different technical products such as; electric, machineries,
constructions, hardware, power plants, bio gas, agricultural; fertilizers, seeds,
pesticides and so on
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To fulfill the plans of the customers firm has appointed engineers, Information technologists
agriculturists, architects, Chartered accountants, Industrial engineers and also financial and
economic analysts as previously stated
7.3Proposed plans
Firm management team also plans for some business ventures in future. These plans will be
implanted very soon to enrich the quality of the firm such plans are
Hiring more consultants in numbers in different areas. It aims at servicing more
customers and customers will get consultancy from multiple consultants at different
aspects.
Introducing more unique business ideas in different sectors for the customers so that
innovation can be well addressed and by doing so customers can get a strong market
share and a profitable business.
Taking adequate initiatives to reach country wide, since Dhaka, Chittagong and Sylhet
are being tried to localize but in future renaissance will be available in most of the areas
of Bangladesh to ensure regional development to get much closer to our vision.
Partnering with other consulting firms of home and abroad to maximize the value of the
services that will ensure increased number of expert and recognized experts.
Ensuring international alliance by hiring more international consultants so that the
customers can aware of international industry trends of their proposed ventures.
Focusing more in women empowerment and for this numerous business prospects will
be paved for women so that our country’s women can become self-reliant and integral
parts for nation’s economic development.
Providing plans for technical business establishments so that our country can much rely
on its own talented people.
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Section: 8
Financial Projection Renaissance is a consulting firm; it can be referred to a medium size business organization. It does not require plenty of money to start up nor does it require a small sum like other typical small businesses. There are so many areas of expenditures and as the key source of revenue has been the consulting fee. Financial aspects of the Renaissance are as follows
8.1 Source of funds
Since it is a private limited company it cannot source any fund from stock markets like the public limited company. The funds will be amassed from the key people of founding team, who are the real financers of the venture.
8.2 Invested sum for the venture
The assumed invested sum for the venture is BDT 5,000,000 of equivalent to $ 62,500. This sum
will be collected from the founders and a portion from creditors who are acquainted of the
founders and only the investors and they will be provided interest including the principal
amount.
8.3 Detail of the investment by the founders and investors
Chariman Vice Chariman Directors InvestorsSeries1 1,000,000 600,000 2,400,000 1,000,000
0
1
1
2
2
3
3
Amou
nt in
mill
ions
Investments made by the founders
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Here in the above chart the key financers are the chairman and vice chairman who provide 32%
of the total sum and eight directors will provide a sum of BDT 2,400,000 or 48% of the total
investment and the rest BDT1,000,000 will be provided by the creditors that has to be replayed
with 10% simple interest.
8.4 Pro forma Income Statement for the years 2014-2015 & 2015-2016
Renaissance Income Statement
For the year ended June 30, 2015 & 2016 Years
2014-15 2015-16
Revenues
Consulting &Seminars’ revenues BDT: 2,500,000 3,000,000 Direct cost of revenues BDT: 0 0 Other BDT: 0 0 Total cost of sales BDT: 0 0
BDT: 2, 5000,000 3,000,000
Gross margin BDT: 2, 500,000 3,000,000
Expenses
Salary BDT: 1,2000,000 1,250,000 Rentexpense BDT: 250,000 260,000 Depreciation BDT: 10,000 11,000 Utilities BDT: 60,000 66,000 Marketing expense BDT: 100,000 110,000
Total operating expense BDT: 1,620,000 1,697,000
Earnings before interest and taxes BDT: 880,000 1,303,000
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Intei
8.5 Pro forma Balance Sheet
Interest expenses BDT: 100,000 120,000
Earnings before tax BDT: 780,000 1,183,000
Tax (30%) BDT: 234,000 354,900
Net Profit BDT: 546,000 828,100
Renaissance Balance Sheet
June 30, 2015 & 2016 Years
2015 2016
Assets
Cash BDT: 3,656,000 4,959,100 Equipment BDT: 2,000,000 2,200,000
Less: Accumulates Depreciation BDT: 10,000 11,000 BDT: 1,990,000 2,189,000
Total Assets: BDT: 5,646,000 7,148,100
Liabilities and Owner’s Equity
Liabilities:
Accounts payable BDT: 1,000,000 1,200,000 Interest Payable BDT: 100,000 120,000
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8.6: Pro forma Cash Flows
Owners’ Equity:
Owners’ Investments BDT: 4,000,000 5,000,000 Add: Net Income BDT: 546,000 828,100
Owner’s Capital BDT: 4,546,000 5,828,100
Total Liabilities & Owners equity BDT: 5,460,000 7,148,100
Renaissance Pro forma Cash flows
For the month ended June, 30 2015 & 2016 Years
2014-15 2015-16 Cash flows from operating activities
Cash receipts from revenues BDT: 2,500,000 3,000,000 Cash payments for expenses BDT:( 1,844,000) (1,990,900) Net cash provided by operating activities BDT: 656,000 959,100
Cash from investing activities Purchase of equipment BDT: (2,000,000) (2,200,000)
BDT: (1,344,000) (1,240,900) Cash flow from financing activities
Investments by owners BDT: 4,000,000 5,000,000 Loans BDT: 1,000,000 1,200,000
Net cash BDT: 3,656,000 4,959,100
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Through these assumed financial statement is has been conspicuous that there will be an
increase in every aspect of the financial projections in the fiscal year 2015-16. And firm is being
expected to have a growth in its total business.
8.7: Ratio Analysis
Current Ratio:
2014-15: Cash/ Accounts Payable, & Interest Payable = BDT 3,656,000/1,100,000 or 3.32
2015-16: Cash/ Accounts Payable & Interest Payable = BDT: 4,959,100/1,320,000 or 3.76
This actually states that for every BD T 1 liabilities firm has BDT3.32 and 3. 76 current assets to
meet the current liabilities.
Profit Margin Ratio:
2014-15: Net Income/Net Sales: 546,000/2,500,000 or 21.84%
2015-16: Net Income/ Net Sales: 828,100/3,000,000 or 27.60%
It states for that 21.84% and 27.60% of Sales contribute in the net profit.
Asser Turnover Ratio:
2015-16: Net Sales/Average Assets: 3,000,000/ (5,646,000+7,148,100/2) or .47 times
For each BDT sales the invested assets have been BDT.47
Return on Assets:
2015-16: Net Income / Average Assets: 828,100/ 6,397,050 or 12.94%
Assets contribute up to 13% to the net income.
Return on equity
2015-16: Net income/ Average Owner’s equity: 828,100/ (4,546,000+5,828,100/2) 15.96%
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15.96 % of Net income comes from the owner’s investment.
Debt to Asset Ratio
2014-15: Total Debt/Total Asset: 1,100,000/5,646,000 0r 19.48%
2015-16: Total Debt/Total Asset: 1,320,000/7,148,100 or 18.46%
Here only 19.8% & 18.46% of total assets are provided by the creditors.
Times Interest earned
2014-15: Earnings before Interest and Tax/Interest Expense: 880,000/100,000 or 8.8 times
2015-16: Earnings before Interest and Tax/Interest Expense: 1,303,000/120,000 or 10.86 times
To cover up the payments of interest there are 8.8 & 10.86 times earnings.