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1.0 Introductory Thoughts
1.1 Background of the report
The business idea of the super shop is to promote the authentic products of Bangladesh.
All the exquisite items that are the inheritance of Bangladesh will be gathered from
different parts of the country and will be sold under one roof. The main idea is to promote
the cottage industry, handicrafts and food products existing in different parts of our
country and to sell them in the cities and export them abroad, which will be a brand new
concept in Bangladesh.
1.2 Objectives of the report
The primary objective of the report is to fulfill the partial requirement of the course.
The secondary objectives of this report are:
Project Planning
Industry Analysis
Operational Plan
Marketing Plan
Organizational Plan
Financial Projection
1.3 Limitations of the report
The major limitations encountered are:
Time constraints on the part of the concerned officials and parties in providing us
with information.
Lack of experience on our part has also acted as constraints in the way of
meticulous exploration on the topic.
Most adequate, exact and updated facts and figures related to costs, pricing,
transportations etc. have not been available due to the secrecy of the concerned
authorities.
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2.0 Business Proposal
2.1 Name and Address of Business:
Mrittika - a super shop will be a place where all the exquisite and traditional items
available in Bangladesh will be sold. Through this super shop, we want to present the
flavor and culture of our country. In one roof, all the authentic products of our country
will be presented to the customers. This shop will be very helpful in preserving our
heritage and the ancient arts of our country which are in the danger of extinction.
The product category will be broad, inclusive of all the authentic and traditional products
of Bangladesh, ranging from handicrafts, food items to other products as well. The
products that will be sold in the shop will be collected from the authentic craftsmen so
that the genuineness of the products stays in tact. This type of a venture will be the first in
Bangladesh, as no other shop has such a diversified product range.
The super shop will be targeted to fulfill the needs of middle class and upper class
citizens who are in constant search of unique items. Mrittika will have branches in the
central business area of Dhaka and Chittagong which are the cosmopolitan cities of
Bangladesh. There will also be a branch in Sylhet. Gradually other cities of the country
will have more branches of this shop.
We also propose to establish three outside branches of the shop in Saudi Arabia, Dubai
and London – all these places have a huge number of Bangladeshi immigrants living
there. Our target customers in abroad will be the Bangladeshis who miss our culture and
heritage. Depending on the success of these branches, two other branches will also be
established in any other country of Europe and United States.
The products that are planned to be sold in Mrittika include jute products, Tangail sarees,
Rajshahi silk sarees and clothing, Khadi clothing from Comilla, ethnic tribal clothing
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from Rangamati and the tribal areas, and handloom clothing from Sylhet. Also included
will be food products such as Bogra’s famous Dahi and sweets, Rashmalai and other
famous sweets from Comilla, dried fish (shutki) from Chittagong and Cox’s Bazar.
The products that will be sold in the shop will be brought directly from the local
producers from different regions of Bangladesh. The production of the items to be sold in
Mrittika will not require any additional production cost as the producers will be using
their original resources. This will lower the cost of production and hence the price of the
products will be low.
Another factor for the low price is the low transportation cost as distribution channels
will be hired to deliver the items from the producers to the stores. This will also eliminate
the existence of middlemen, which will reduce extra costing. We will set the prices of the
products according to the price levels of our competitors. This will make our prices
attractive to the customers and prevent us from charging excessive profit.
2.2 Goals and Objectives:
At the primary stage of the business, we plan to set up branches of ‘Mrittika’ in three
cities of Bangladesh, the capital Dhaka, Chittagong and Sylhet. Because Dhaka is known
to be more cosmopolitan than the other two cities, it will have two branches. The other
two cities will have one branch respectively. Our short term goal will be to establish these
shops by attracting native customers who are tradition and art lovers and are in search of
ethnic items.
We plan to expand our business further by setting up branches of Mrittika in foreign
countries where there are a maximum number of Bangladeshis living as immigrants.
Initially, branches will be set up in U.K and The U.A.E because these countries have a
high ratio of Bangladeshis living as immigrants. Our intention will also be to attract the
natives of these countries who are interested in Bangladeshi cultures and heritage. Other
parts of the world will be covered as will depending on the success of these shops.
3
The main concept of Mrittika is to promote the ethnic products of Bangladesh, which are
produced locally by original artisan. To serve our purpose and to maintain the
authenticity of the products, they will be collected from the original producers a there
already exists the demand for traditional goods, we hope to have a gradually increasing
market for our product.
The idea is to capture the market at a slow rate and gradually increase the demand by
attracting potential customers. There is already an existing market for traditional clothing
and handicrafts, so we will try to capture the market of our competitor and overcome
them by offering a much more diversified product line.
Our priorities are:
Introducing to new generation our tradition, culture, and heritage
Introducing to foreigners our culture
Easy access to traditional products
Nationwide decentralization
Improvement of productive workforce
Favorable implementation of Micro credit Scheme
Promoting the products that are becoming extinct.
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3.0 Industry Analysis
3.1 Future Outlook and trends:
The main concept of Mrittika is to promote the ethnic products of Bangladesh which are
produced locally by original craftsmen. To serve our purpose and to maintain the
authenticity of the products, they will be collected from the original producers. As there
already is an existing demand for traditional goods, we hope to have a gradually
increasing market for our products. The idea is to capture the market at a slow rate and
then gradually increase the demand by attracting potential customers. There is already an
existing market for traditional clothing and handicrafts, so we will try to capture the
market of our competitors and overcome them by offering a much more diversified
product line.
3.2 Analysis of Competitors:
As we are presenting a venture which is completely new in Bangladesh, we do not have
any direct competitors in that sense. No other shop provides the facility of selling all
types of traditional items of our country in one place. We can face indirect competition
from shops which sale traditional products, for example Aarong and Probortona, but they
do not sale any traditional food items. As their product range is not as wide and
diversified as ours, we do not expect any direct competition from them.
One of the potential competitors to our market is Aarong, which has been in this industry
for more than 10 years, and has branches in all the metropolitan cities of our country.
Though the product line of Aarong and ours is exactly not the same, we still would have
to face competition from them as they have existing customers and a huge market that are
already very much used to their products. The uniqueness of our product line will help us
drive their existing customers towards us and create our own market. Other competitors
in this market are Probortona and Kumudini Crafts, who also produce traditional items
and have their own indigenous producers whose products also are very mush liked by
customers. There are also other small traditional good sellers, but their market is very
small and they would not be of any kind of threat to us.
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3.2.1 Distinctive Competency:
In general, an organization's distinctive competency is the set of
strengths, characteristics and qualities including skills, technologies, or resources that
distinguish it from competitors. When the strength provides superior and unique customer
value and is difficult to imitate then the distinctive competence creates a sustainable
competitive advantage. Distinctive competency is such kind of strength that allows a
company to gain competitive advantage by differentiating its producers and/or achieving
lower cost than its rival. It generally arises from resources and capabilities. Some of the
distinctive competencies are given below:
3.2.2 Cost Advantage:
Competitive advantage is created by using resources and
capabilities to achieve either a lower cost structure or a differentiated product. A firm
positions itself in its industry through its choice of low cost or differentiation. This
decision is a central component of the firm's competitive strategy. So we will try to start
our production plan very nearer to our suppliers. Initially we try not to invest all our
money and try to utilize them with all kind of product ional activities. Since we are not
creating our own firm at initial stage and we collect our products from different places,
we will have fewer amounts of investment and secured supply.
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3.2.3 Social and human factors:
We collect all the products from various places of Bangladesh and
all these products and foods are Bangladeshi products and foods. So by differentiating
these products we can maintain the local culture of Bangladesh. And by this we all can
know the cultural differences among the districts. We will have a strong background and
attachment to the society of Bangladesh. By doing all these we can maintain and continue
our culture and heritage as well. This also involves the human factors. By using these
products people of Bangladesh can do their responsibilities that they have to the society.
Cultural assimilation with the people is very important.
3.2.4 Quality and hygienic product:
In Bangladesh people are very aware of quality and hygienist.
So to be in business and to continue selling our products we have to maintain the quality
of our products and foods both. We will promote the hygienic product to our customer
and try to satisfy them. Without doing this means without satisfying customers w cannot
continue our business and cannot remain our brand value. We collect the best products
from different places of Bangladesh and food as well. We have to be very concern during
collecting these products and foods. And we will ensure the preservation of the food.
3.2.5 Brand image: Brand is the most important part of business. Without brand image it is
very difficult to stay in business. With quality product and testy and hygienic food we can
maintain our brand image. We serve products from different places to the people so it
also makes cultural mixing by us, so it will also increase our brand image. So we need to
make sure our product will be the best of the best and it remains our brand image at peak.
This type of resources lead distinctive competency. Without brand value it is little tough
to continue and to stay in business. So we have to aware about this. And at the very
beginning we will work for it. To stay in business and to remain the brand value at a
peak.
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3.2.6 Capabilities:
Capabilities refer to the firm's ability to utilize its resources effectively. An
example of a capability is the ability to bring a product to market faster than competitors.
Such capabilities are embedded in the routines of the organization and are not easily
documented as procedures and thus are difficult for competitors to replicate. We have the
capability of coordinating our skills and also using our resources effectively and
efficiently.
3.3 Market Segmentation:
Our main target market will be the middle and upper class customers who posses a strong
sense of interest for products that have traditional values. We have segmented our target
market on the basis of three factors: income, nature of product and geographical
segmentation. These sectors are broadly discussed below:
Income: Our target market will be from the income level of TK.12, 000 and
above. People from this income level and above will be induced to buy our
products. Our products are such that people will want to buy our products after
they have satisfied their basic needs. So, people belonging to the niche level of
income are expected to be our customers.
Nature of product: Our customers will be those people who are interested in
traditional products and artifacts. Basically our super shop will contain
handicrafts, clothing and food items, so people who admire traditional items
and are, in a sense, art lovers will be attracted to our products.
Geographical segmentation: Primarily we will establish branches in our
capital Dhaka, Chittagong and Sylhet. People living at Dhaka do not get to buy
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traditional products from Chittagong and Sylhet. Our super shop will solve
their problem by presenting products from these cities to them.
We will try to establish branches to other parts of the country, depending
on the demand for the products that we will be selling. We will try to expand
our activity further by opening up branches abroad.
Depending on the success of our super shop and the existing demand for them among the
customers, we will increase our product range. This will be somewhat depended on the
products that customers may seek for which we will not be selling. At the initial stage, we
will start with the traditional items that are much popular among the customers, which are
known and have an existing market. After five years, we will bring the products that are
not much known but are produced locally and can have potential market among the
customers.
3.4 Industry and Market Forecasts:
There is already an existing market for traditional items in our country, which is
expanding day by day. The indigenous crafts of Bangladesh are also attracting a lot of
attention abroad, so these items also have a huge market globally. This industry is in fact
very much suited to our environment and can be enhanced largely just with the help of
the raw materials and manpower of our country. As we are presenting a venture which is
completely new in Bangladesh, we do not have any direct competitors in that sense. No
other shop provides the facility of selling all types of traditional items of our country in
one place. We can face indirect competition from shops which sale traditional products,
but these shops also have a very different product line from us. As their product range is
not as wide and diversified as ours, we do not expect any direct competition from them.
9
4.0 Description of the venture
4.1 Product:
The products that are planned to be sold in Mrittika include jute products, Tangail sarees,
Rajshahi silk sarees and clothing, Khadi clothing from Comilla, ethnic tribal clothing
from Rangamati and the tribal areas, and handloom clothing from Sylhet. Also included
will be food products such as Bogra’s famous Dahi and sweets, Rashmalai and other
famous sweets from Comilla, dried fish (shutki) from Chittagong and Cox’s Bazar.
Generic Building Blocks of Competitive Advantage
Efficiency: Productivity leads to a greater efficiency and lower costs. Productivity can
be 2 types. They are employee productivity and capital productivity. We will reach full
capacity of products as soon as we can create a strong supplier base. Gradually, we will
extend our product line. These activities will help us to achieve higher efficiency through
both employee productivity and capital productivity.
Customer Responsiveness: To respond to customer means doing a better job than
competitors in identifying and satisfying customers need. Superior quality and innovation
are integral to superior responsiveness to customers. Sources of enhanced customer
responsiveness could be customer response time, design, service, after- sales service and
support. It differentiates a company and its products leading to brand loyalty and
premium pricing. We will also respond to our customers’ needs and satisfaction. We will
implement their suggestion in our business practices if we see that it may help us serve
our customers better. If customers feel that their responses matter to us, they will perceive
our brand as their own. This would enable us to create stronger brand loyalty and in
future; we may able to charge additional premium for our differentiated products.
10
Quality: Superior quality is customer perception of greater value in a specific product
attributes, for example form, features, performance, durability, reliability, style, deign
and etc. Customers perceive higher value in quality products that are reliable and
differentiated by attributes. The impact of quality on competitive advantage is that greater
efficiency and lower costs are associated with reliable products. We will ensure that
customers feel comfortable with our product and prefer our product to others due to
higher quality.
People always look for differentiated products; with attributed value. If
quality is our offer to them, we will provide it at any cost.
SuperiorEfficiency
SuperiorEfficiency
SuperiorInnovation
SuperiorInnovation
SuperiorCustomer
Responsibility
SuperiorCustomer
Responsibility
SuperiorQuality
SuperiorQuality
CompetitiveAdvantage:
- Low Cost
CompetitiveAdvantage:
- Low Cost
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FOOD:
Food Origin
Rasmalai Comilla
Dahi Bogra
Sweetmeat Tangail, B’Baria
Bikrampur, Natore
Honey Khulna
Cake Norshingdi
Molasses Madaripur
Tea Sylhet
Fruit Rajshahi
Prawn Bagherhat
Hilsha Chandpur
Crab Cox’s Bazar
Dried Fish Chittagong
Table: 1.1 (Food)
Rasmalai Comilla Dahi Bogra
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Sweetmeat Tangail, B’Baria Sweetmeat Bikrampur, Natore
Molasses Madaripur Sweetmeat
Puli pithaBhapa pitha
13
A variety of pitha Chitui pitha
Mud Crab Scylla serrata Dried Fish Chittagong
Tea Sylhet
14
Honey Khulna
CRAFT:
Craft Origin
Nakshi Kantha Jamalpur
Bed cover Sylhet
Shital Pati Sylhet
Jute Product Mymensing, Comilla
Bamboo product Sylhet
Cane Product Sylhet
Furniture Sylhet
Table:1.2 (Craft)
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Cane products A typical nakshi kantha
CLOTH:
Cloth Origin
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Silk Rajshahi
Khadi panjabi Comilla
Batik Lungi Comilla
Khadi shirt Comilla
Rangamati Fatua Rangamati
Towel Rangamati, Sylhet
Thami Rangamati
Shawl Rangamati , Sylhet
Bed cover Sylhet, Rangamati
Rgmt. Shirt Rangamati
Sylhet Saree Sylhet
Taant (yard) Tangail
Taant (Saree) Tangail
Table:1.3 (Cloth)
Khadi panjabi Comilla Silk Rajshahi
17
Batik Lungi Comilla Khadi shirt Comilla
Rangamati Fatua Rangamati Shawl Rangamati , Sylhet
Bed cover Sylhet, Rangamati Sylhet Saree Sylhet
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Taant (yard) Tangail Taant (Saree) Tangail
4.2 Size of the business:
At the primary stage of the business, we plan to set up branches of ‘Mrittika’ in three
cities of Bangladesh, the capital Dhaka, Chittagong and Sylhet. Because Dhaka is known
to be more cosmopolitan than the other two cities, it will have two branches. The other
two cities will have one branch respectively. Our short term goal will be to establish these
shops by attracting native customers who are tradition and art lovers and are in search of
ethnic items.
We plan to expand our business further by setting up branches of Mrittika in foreign
countries where there are a maximum number of Bangladeshis living as immigrants.
Initially, branches will be set up in U.K and The U.A.E because these countries have a
high ratio of Bangladeshis living as immigrants. Our intention will also be to attract the
natives of these countries who are interested in Bangladeshi cultures and heritage. Other
parts of the world will be covered as will depending on the success of these shops.
19
4.3 Office Equipment:
Licensing cost for starting the business and other initial costs regarding infrastructure
facilities such as electricity and telephone will be required. Capital expenditure will be
needed for building, equipments such as refrigerator, air conditioner, computers, pickup
vans, etc.
4.4 Personnel:
Personnel required to operate the business can be divided into five sectors: Salesmen,
Supervisor, Manager, Storekeeper and Distributor
Table: 1.4 (Personnel)
Dhaka(2 shop) No. of Persons Ctg. & Sylhet No. of Persons
Salesperson 10 Salesperson 4
Supervisor 2 Supervisor 2
Manager 2 Manager 2
Store Keeper 2 Store Keeper 2
Distributor 4 Distributor 2
5.0 Operational Plan
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The product line included in Mrittika will be collected directly from the original regional
producers from each division of Bangladesh. These goods will be brought on daily,
weekly or monthly basis depending on the nature of the product and demand for the
product. Perishable items such as food items will be brought on daily and weekly basis,
and products such as clothing and handicrafts items will be brought in monthly basis.
At the initial stages of our operation we will negotiate with regional producers of
traditional goods to provide their items at low cost. A negotiation contract will be created
to ensure the profit of the producers. To maintain our delivery system, several
distribution channels existing in our country will also be contacted. To start our
operations, all the products will be brought to the shops with the help of courier service
or other distribution channel, such as S.A.Paribahan. The delivery of the goods will be
depended on the demand.
As we plan to set up our branches in three divisions of Bangladesh at the initial stage, we
will design our distribution channel on that basis. For the two branches in Dhaka, two
distributors will be appointed for each branch. As we plan to have one branch in
Chittagong and one in Sylhet, one distributor will be appointed for each of the branches.
The distributors will collect the goods sent by the local producers through the distribution
channel and deliver them to the shops. They will match the products that will be
delivered with the invoice for purchasing the products.
6.0 Marketing Plan
21
6.1 Current Market Situation:
There is already an existing market for traditional food, clothing and handicrafts, so we
will try to capture the market of our competitor and overcome them by offering a much
more diversified product line. The existing market for traditional crafts is much lucrative,
as people have an increasing demand towards products of this kind. Some boutique shops
are already selling traditional items, and they also have an existing market which is
increasing day by day.
6.2 Target Market:
The super shop will be targeted to fulfill the needs of middle class and upper class
citizens who are in constant search of unique items. Mrittika will have branches in the
central business area of Dhaka and Chittagong which are the cosmopolitan cities of
Bangladesh. There will also be a branch in Sylhet. Our target customers in abroad will be
the Bangladeshis who miss our culture and heritage.
6.3 Pricing:
Prior to setting the price, in the majority of the situation we need to consider three
important elements; cost, margin, competition. On the basis of following explanation, we
decide the product price as mentioned in financial projection.
6.3.1 COST:
22
Inbound Logistic
Marketing and Sales
Finance HRM Customer Service
One of important initial considerations in any pricing decision is to ascertain the cost
directly related to the product or service. The major costs of our business are the purchase
cost. The products that will be sold in Mrittika will be collected from local producers at
whole sale rate and will be sold to the customers at retail price. The purchase cost of
projected 1st year for Food item is TK. 946,000 for Cloth item is TK. 2,135,000 and for
craft item is TK. 3,507,000.
Salaries, rent, advertisement and promotion, office supplies, stationary expenses,
telephone expenses, license fee, other operating expenses etc are basic related overhead
costs of our business plan which are approximately TK.3,500,000.
PURCHASE COST (1st Year)
CraftCloth
Food
1
2
3
Chart: 1.1 ( Purchase Cost )
6.3.2 Margin:
23
As the products that will be sold in Mrittika will be collected from local producers at
whole sale rate and will be sold to the customers at retail price, it is expected have a
sound margin corresponding year. As it is also expected that the demand for the
traditional product is growing, the margin will also increase.
Graph: 1.1 ( Net Operating income)
6.3.3 Competition:
As we are presenting a venture which is completely new in Bangladesh, we do not have
any direct competitors in that sense. No other shop provides the facility of selling such
diversified traditional items of our country in one place. We can face indirect competition
from shops which sale traditional products, for example Aarong and Probortona, but they
do not sale any traditional food items. As their product range is not as wide and
diversified as ours, we do not expect any direct competition from them.
6.4 Distribution:
To maintain our distribution system, several distribution channels existing in our country
will also be contacted. To start our operations, all the products will be brought to the
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shops with the help of courier service or other distribution channel, such as
S.A.Paribahan.
For the two branches in Dhaka, two distributors will be appointed for each branch. As we
plan to have one branch in Chittagong and one in Sylhet, one distributor will be
appointed for each of the branches. The distributors will collect the goods sent by the
local producers through the distribution channel and deliver them to the shops. They will
match the products that will be delivered with the invoice for purchasing the products.
6.5 Promotion:
Advertisement :
Advertisement will be given at Newspapers & Billboard. Also Leaflets & Posters will be
festooned at different crowded places. At the beginning advertisement will be given four
times in a month on newspaper. Before starting the shop two billboards will be placed at
Gulshan & Dhanmondi.
Website:
A website will be developed about our tradition, and information about our operation
will also be explicated. In this website existing products & price will also be available.
Special arrangements at various festivals :
There will be special arrangement on various traditional and religious festivals such
as Nobo Borsho, 1st Falgoon, Nobanno, Eid, Pooja etc.
Home Service:
As a special attraction for customers, a home delivery system will be established.
Customers will be benefited by this service through a single phone call.
25
6.6 Sales Strategy:
We will be selling products at Mrittika on the basis of retail system. The products that
will be sold in Mrittika will be collected from local producers at whole sale rate and will
be sold to the customers at retail price.
The items to be sold in the shop will be collected from the producers through different
distribution channels. Our appointed distributors will look through the whole process of
collecting the goods from the producers to sending them to the storage. A total number of
10 salespersons will in charge of all the branches in Dhaka. For the shops in Chittagong
and Sylhet, a total of 4 salespersons will be needed for all the shops outside Dhaka. All
the salespersons will be provided with proper remuneration and other incentives as well.
7.0 Organizational Plan
7.1 Form of Ownership:
The super shop Mrittika is formed as partnership business.
7.2 Identification of Partners and Contribution:
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27
Designation: MD & Director Admin
Name: M. Shahinur Hasan Rupom
Number of positions: 1
Responsibility:
1. The MD/CEO is responsible for day-day management of the
company with all powers, discretions and delegations authorized,
from time to time, by the Board.
2. Responsible for designing, developing and implementing the
strategic plan for the company in the most cost effective and time
efficient manner.
3. Will be responsible for coordinating all four functional areas as
well as supervising them.
4. MD is responsible for leading the company and develops the
corporate culture for the company.
5. MD also responsible for developing business plans for the long
term future of the company.
Designation: Director, Sales, Marketing & Promotion
Name: Sajid Rahman
Number of positions: 1
Responsibilities:
1. Will be responsible for marketing and sales of the product.
2. Plan and implement new advertising campaigns.
3. Coming up with new marketing strategies to attract the clients.
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Designation: Director, Finance & Accounts
Name: Khair M. Golam
Number of position: 1
Responsibilities:
1. Preparing the financial reports, direct investment, activities and
implement cash management strategies.
2. Work closely with the accountant to maintain the accountants.
3. Monitor and control the flow of cash receipts and disbursements to
meet the business and investment needs of the firm.
4. Be aware of tax regulations.
5. Carry out internal company audit.
Designation: Director, Purchase & Delivery
Name: Mehedi Hassan
Number of position: 1
Responsibilities:
1. Responsible to ensure the product quality.
2. Responsible for continuous research and development of the
product.
3. Responsible to ensure the products purchase and delivery on time.
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Designation: Director, HR & Customer Care
Name: Shahida Khanom
Number of position: 1
Responsibilities:
1. To maintain and develop HR policies, ensuring complaisance and
to contribute the development of corporate HR policies.
2. To develop the HR team, to ensure the provision of a professional
HR service to the company.
3. To ensure timely recruitment of required level / quality of
management staff in order to meet business needs, focusing on
employee retention and key employee identification initiatives.
4. Develop, refine and fine-tune effective methods or tolls for
selection.
5. To develop the HR business plan.
6. Ensure appropriate communication at all staff levels.
7. Prepare information and input for the salary budget. Ensure
compliance to the approved salary budget; give focus on pay for
performance and salary benchmarks where available. Ensure
adherence to corporate guideline on salary adjustments and
promotions. Coordinate increments and promotions of all staff.
7.3 Organogram:
30
Director, Customer Care & HR
Partner 5
Director, Customer Care & HR
Partner 5
Director, Sales, Marketing & PromotionPartner 3
Director, Sales, Marketing & PromotionPartner 3
MD & Director AdminPartner 1
Director, Finance & AccountsPartner 2
Director, Finance & AccountsPartner 2
Director, Purchase & DeliveryPartner 4
Director, Purchase & DeliveryPartner 4
Sales Sales ManagerManager Sales Sales ManagerManager
DistributorDistributorDistributorDistributor
Sales Sales ManagerManager
Sales Sales ManagerManager
Sales Sales ManagerManager
Sales Sales ManagerManager
7.4 Employees and Salaries:
haka (2 shop) Person Monthly Salary/person
Salesperson 10 5500
Supervisor 2 7000
Manager 2 8500
Store Keeper 2 2500
Distributor 4 2500
Total 26000
Ctg & Sylhet
Salesperson 4 5000
Supervisor 2 6000
Manager 2 7000
Store Keeper 2 2500
Distributor 2 2500
Total 23000
Table:1.5 ( Employees and Salaries)
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8.0 Risk Assessment
8.1 Assessment of Risk:
The sectors that are relevant to risk assessment in consideration to our business project
are demand and supply projections, security and economical situation. The traditional
products that will be sold through Mrittika are less attractive to the younger generation of
our country. The young people are much more influenced by the western culture and so
do not have much interest in our tradition and culture, which will lessen the chance of
their being our potential customer.
The major portion of our saleable products will be collected from local producers. If their
production rate falls, we will not be able to provide goods to customers in time. In search
of higher profit, they may switch to producing other products, which will expose to the
shortage of suppliers. In a country like Bangladesh, transportation system is not very
reliable and at times it can be very high. This will increase our production cost and as a
result we may have to increase our pricing level.
The total security system of our country is not very strong, so there exists a risk of
storage transportation. Sometimes the lack of proper security of the goods in storage can
be stolen or destroyed by others. The overall political situation of Bangladesh can
sometimes impede the smooth flow of business activity and for that reason we may not
be able to run our business properly.
Our anticipation of profit is entirely based on the rate of GDP growth of Bangladesh. If
the GDP growth of our country falls, our anticipation may be wrong, and we will face
significant amount of risk. However, this type of risk will not affect the profit of our
overseas branches. If we are able to launch shops in all parts of our country, as well as
abroad, the effect of this risk will be lowered to a minimum level.
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8.2 SWOT Analysis:
To analyze the potential competition that we are about to face, we have conducted a
SWOT analysis on the basis of our business plan.
Strength:
Centralization of traditional products: Every type of authentic products,
including handicrafts, clothing and food stuffs of Bangladesh will be sold in
one central location. No other shops that sale traditional items offer this
specific feature.
Nationwide decentralization: Products from one part of the country will be
sold to other parts.
Weaknesses:
Transportation problem: Items from different parts of the country will have
to be collected, so an efficient transportation service is needed.
Limited resources: We will have to work with limited resources.
Perishable agricultural products: Some of the products that will be sold in
the shop are perishable products, such as food items, which need to be
preserved to maintain quality.
Opportunities:
Expansion to abroad: After the initial period of launching this venture in
Bangladesh, our super shop will be established in countries abroad. No
other traditional shops have branches outside Bangladesh, some of which
do not even have branches outside Dhaka.
Low product cost: Traditional items have require a low cost to be produced.
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Threat:
Existing market: There is a potential threat from shops who sale traditional
clothing and have an existing markets for their products. As they are
experienced, they have better strategies of attracting customers.
8.3 Contingency plans:
If we fail in the business, then our contingency plan is that we would like to
join with any renown super shop who has same types of business.
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9.0 Implementation Plan
The products that will be sold in Mrittika will be collected directly from the local
producers. These producers collect their resources for the cause of production from their
own sources. Our objective will be to provide financial help to these producers by giving
them micro credit loans which will help them to run their production process more
smoothly. There are inherently some potential investment sectors related to our business
project where commercial can help us by providing sufficient loans and other financial
help. This will also increase the bankability of our business project. As well as collecting
traditional items from different parts of the country, we will collect textile goods from
Rangamati, which is also a potential sector for investment. If we can provide loans to the
craftsmen of this region, they will be able to produce high quality products at a
convenient cost.
9.1 Related Future Potential Investment Sectors:
Textile:
In spite of having quality products, some textiles cannot exist in market for lack of
capital. An example of this is the Majumder Textile of Rangamati, which has closed its
production due to the lack of proper funding and investment proposal. After carrying out
proper research and investment viability, HSBC can invest for short & long term period
in these sectors, so that, they can continue their production. These productions will
eventually be our products.
Mango & Litchi Orchard:
We have also plans of taking lease of some of the mango orchards situated in Rajshahi
and Dinajpur and the litchi orchards in Dinajpur. The productions in these orchards will
be sold in our shops.
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Micro Credit Loans:
HSBC can implement a Micro Credit Scheme along with our plan for improving the
living standards of the people of Bangladesh. They can select some villages (for example,
Burichong Thana, Comilla District) for Micro Credit investment with low interest rate.
The people of these villages will produce Khadi and Batik, which are the traditional
products of Comilla. These local producers will provide us with goods, and we will create
a negotiation contract with them which will ensure profit from the sale of the products.
Moreover, banks can also implement Micro Credit Scheme in sectors like jute products
and cottage industry. The productions from these sectors are related to our sale of goods
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10.0 Financial Plan
10.1 Proforma Income Statement:
Amount (TK)
Year-1
Amount (TK)
Year-2
Amount (TK)
Year-3
Total sales 8,288,000 10,200,000 12,000,000
Less: Cost of
Goods Sold
6,588,000 7,366,500 8,854,000
Gross Profit 17,00000 2,833,500 3,146,000
Less:
Operating
Expenses
15,19,000 1,723,000 2,045,500
Net
Operating
Income
1,81,000 1,110,500 1,100,500
Income Tax 18,100 111,050 110,050
Total Income 162,900 999,450 990,450
Table: 1.6 ( Income Statement )
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10.2 Balance Sheet:
Amount(TK)
Year-1
Amount(TK)
Year-2
Amount(TK)
Year-3
ASSETS:
Current Asset (Cash) 3,412,000 3,574,900 4,574,350
Fixed Asset 6,588,000 7,366,500 8,854,000
Total 10,000,000 10,941,400 13,428,350
Owners Equity 10,000,000 10,941,400 13,428,350
Table: 1.7 ( Balance Sheet )
10.3 Ratio Analysis:
10.3.1 Profit Margin Ratio :
Table: 1.8 ( PMR )
Comments: Profit Margin Ratio shows the portion of sales that exceeds costs both
variable and fixed. As our Profit Margin Ratio trending up it indicates that our business
condition is becoming strong day by day. The reason is that our product demand as well
as revenue is growing up.
Year 1 Y%ear 2 Year 3
Profit Margin Ratio 2.18% 10.88% 9.17%
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11.0 Concluding Thoughts:
The business plan that we have presented is indeed a fine blend of business concept and
an effort to reserve our heritage and culture with commercial purpose. To justify this
plan, we have presented an economic and industry analysis, along with a proper
description of the business venture including production details, elaboration of the
product line and other related services. The marketing plan has been made keeping in
mind the current market situation of this industry, also considering the demand of the
customers. The organizational layout of the business is that of a partnership, so we have
presented relevant data for it too. The roles and responsibilities of the members of the
organization have been well defined as well. The financial plan portrays a hypothetical
assessment related to the business, which reflects profits and other financial projections
for five years. The financial plan is also supported by ratio analysis, break even analysis,
and NPV and IRR calculations. The business plan is an effort to meet up with the ever
growing business sector of our economy and to explore a new dimension of
entrepreneurial ventures.
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