Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
UNIVERSITY OF SARGODHA
Department of Commerce
Entrepreneurship
Business Proposal of
BANANA CRAZEE
By
A Business Proposal by “Falcon Group” – Entrepreneurship
BANANA CRAZEE = A Product by “Frito’ Enterprisez” I
C
o
n
f
i
d
e...
A Business Proposal by “Falcon Group” – Entrepreneurship
BANANA CRAZEE = A Product by “Frito’ Enterprisez” II
C
o
n
f
i
d
...
A Business Proposal by “Falcon Group” – Entrepreneurship
BANANA CRAZEE = A Product by “Frito’ Enterprisez” III
C
o
n
f
i
d...
A Business Proposal by “Falcon Group” – Entrepreneurship
BANANA CRAZEE = A Product by “Frito’ Enterprisez” IV
C
o
n
f
i
d
...
Section – 01: Executive Summary
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 1 ~
C
o
n
f
i
d
e
n
t
i
a
l
Section – ...
Section – 01: Executive Summary
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 2 ~
C
o
n
f
i
d
e
n
t
i
a
l
All of the...
Section – 01: Executive Summary
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 3 ~
C
o
n
f
i
d
e
n
t
i
a
l
This will ...
Section – 02: The Business (Description)
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 4 ~
C
o
n
f
i
d
e
n
t
i
a
l
S...
Section – 02: The Business (Description)
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 5 ~
C
o
n
f
i
d
e
n
t
i
a
l
W...
Section – 02: The Business (Description)
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 6 ~
C
o
n
f
i
d
e
n
t
i
a
l
...
Section – 02: The Business (Description)
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 7 ~
C
o
n
f
i
d
e
n
t
i
a
l
C...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 8 ~
C
o
n
f
i
d
e
n
t
i
a
l
Section – 03...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 9 ~
C
o
n
f
i
d
e
n
t
i
a
l
CEO/Chairman...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 10 ~
C
o
n
f
i
d
e
n
t
i
a
l
Board of Di...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 11 ~
C
o
n
f
i
d
e
n
t
i
a
l
Finance Man...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 12 ~
C
o
n
f
i
d
e
n
t
i
a
l
Accountant
...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 13 ~
C
o
n
f
i
d
e
n
t
i
a
l
Marketing M...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 14 ~
C
o
n
f
i
d
e
n
t
i
a
l
Production ...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 15 ~
C
o
n
f
i
d
e
n
t
i
a
l
Quality Ins...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 16 ~
C
o
n
f
i
d
e
n
t
i
a
l
Coordinator...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 17 ~
C
o
n
f
i
d
e
n
t
i
a
l
 To coordi...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 18 ~
C
o
n
f
i
d
e
n
t
i
a
l
Responsibil...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 19 ~
C
o
n
f
i
d
e
n
t
i
a
l
Responsibil...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 20 ~
C
o
n
f
i
d
e
n
t
i
a
l
Responsibil...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 21 ~
C
o
n
f
i
d
e
n
t
i
a
l
Responsibil...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 22 ~
C
o
n
f
i
d
e
n
t
i
a
l
 One Membe...
Section – 03: Management Team
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 23 ~
C
o
n
f
i
d
e
n
t
i
a
l
Organizatio...
Section – 04: Legal Company Structure
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 24 ~
C
o
n
f
i
d
e
n
t
i
a
l
Sec...
Section – 04: Legal Company Structure
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 25 ~
C
o
n
f
i
d
e
n
t
i
a
l
In ...
Section – 05: Ownership & Intellectual Property
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 26 ~
C
o
n
f
i
d
e
n
t...
Section – 05: Ownership & Intellectual Property
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 27 ~
C
o
n
f
i
d
e
n
t...
Section – 05: Ownership & Intellectual Property
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 28 ~
C
o
n
f
i
d
e
n
t...
Section – 06: Industry Analysis
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 29 ~
C
o
n
f
i
d
e
n
t
i
a
l
Section –...
Section – 06: Industry Analysis
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 30 ~
C
o
n
f
i
d
e
n
t
i
a
l
The deman...
Section – 06: Industry Analysis
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 31 ~
C
o
n
f
i
d
e
n
t
i
a
l
Target Ma...
Section – 06: Industry Analysis
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 32 ~
C
o
n
f
i
d
e
n
t
i
a
l
Chips Man...
Section – 07: Marketing Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 33 ~
C
o
n
f
i
d
e
n
t
i
a
l
Section – 07...
Section – 07: Marketing Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 34 ~
C
o
n
f
i
d
e
n
t
i
a
l
Banana Craze...
Section – 07: Marketing Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 35 ~
C
o
n
f
i
d
e
n
t
i
a
l
* Mini Maste...
Section – 07: Marketing Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 36 ~
C
o
n
f
i
d
e
n
t
i
a
l
Initial Laun...
Section – 07: Marketing Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 37 ~
C
o
n
f
i
d
e
n
t
i
a
l
Phase Market...
Section – 07: Marketing Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 38 ~
C
o
n
f
i
d
e
n
t
i
a
l
Under this D...
Section – 07: Marketing Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 39 ~
C
o
n
f
i
d
e
n
t
i
a
l
Pricing Stra...
Section – 07: Marketing Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 40 ~
C
o
n
f
i
d
e
n
t
i
a
l
Promotional ...
Section – 08: Operational Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 41 ~
C
o
n
f
i
d
e
n
t
i
a
l
Section – ...
Section – 08: Operational Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 42 ~
C
o
n
f
i
d
e
n
t
i
a
l
For the op...
Section – 08: Operational Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 43 ~
C
o
n
f
i
d
e
n
t
i
a
l
For the Fr...
Section – 08: Operational Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 44 ~
C
o
n
f
i
d
e
n
t
i
a
l
Production...
Section – 08: Operational Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 45 ~
C
o
n
f
i
d
e
n
t
i
a
l
Quality Co...
Section – 09: Financial Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 46 ~
C
o
n
f
i
d
e
n
t
i
a
l
Section – 09...
Section – 09: Financial Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 47 ~
C
o
n
f
i
d
e
n
t
i
a
l
Initial Capi...
Section – 09: Financial Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 48 ~
C
o
n
f
i
d
e
n
t
i
a
l
Return on In...
Section – 09: Financial Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 49 ~
C
o
n
f
i
d
e
n
t
i
a
l
CVP Analysis...
Section – 09: Financial Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 50 ~
C
o
n
f
i
d
e
n
t
i
a
l
For the achi...
Section – 09: Financial Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 51 ~
C
o
n
f
i
d
e
n
t
i
a
l
Projected In...
Section – 09: Financial Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 52 ~
C
o
n
f
i
d
e
n
t
i
a
l
Projected Ba...
Section – 09: Financial Plan
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 53 ~
C
o
n
f
i
d
e
n
t
i
a
l
Exit Strateg...
Section – 10: Critical Risks Factors
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 54 ~
C
o
n
f
i
d
e
n
t
i
a
l
Sect...
Section – 10: Critical Risks Factors
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 55 ~
C
o
n
f
i
d
e
n
t
i
a
l
 Fi...
Section – 11: AppendiX
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 56 ~
C
o
n
f
i
d
e
n
t
i
a
l
Section – 11:
Appe...
Section – 11: AppendiX
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 57 ~
C
o
n
f
i
d
e
n
t
i
a
l
 Firm will alloca...
Section – 11: AppendiX
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 58 ~
C
o
n
f
i
d
e
n
t
i
a
l
Capital Requiremen...
Section – 11: AppendiX
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 59 ~
C
o
n
f
i
d
e
n
t
i
a
l
Fourth Year Requir...
Section – 11: AppendiX
BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 60 ~
C
o
n
f
i
d
e
n
t
i
a
l
Seventh Year Requi...
Business-Proposal-Banana-Chips
Business-Proposal-Banana-Chips
Business-Proposal-Banana-Chips
Business-Proposal-Banana-Chips
Business-Proposal-Banana-Chips
Business-Proposal-Banana-Chips
Business-Proposal-Banana-Chips
Business-Proposal-Banana-Chips
Business-Proposal-Banana-Chips
Business-Proposal-Banana-Chips
Business-Proposal-Banana-Chips
Upcoming SlideShare
Loading in …5
×

Business-Proposal-Banana-Chips

29,914 views

Published on

  • Get access to 16,000 woodworking plans, Download 50 FREE Plans... ➤➤ http://t.cn/Aididas0
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • CRUSH FOOD CRAVINGS WITH "ODD" 5-SEC WATER HACK ▲▲▲ http://t.cn/AirVsfPx
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Free Healing Soundscape - Just click "Play" to immerse yourself in a beautiful "Sound Bath" that clears negativity, awakens abundance, and brings miracles into your life! Listen for yourself right now. ●●● https://tinyurl.com/y6pnne55
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Your wife will never find out! .. Just send me a message and ask to F.U.C.K. ♥♥♥ http://t.cn/AiuW9zn5
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THAT BOOKS INTO AVAILABLE FORMAT (2019 Update) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { http://bit.ly/2m77EgH } ......................................................................................................................... Download Full EPUB Ebook here { http://bit.ly/2m77EgH } ......................................................................................................................... Download Full doc Ebook here { http://bit.ly/2m77EgH } ......................................................................................................................... Download PDF EBOOK here { http://bit.ly/2m77EgH } ......................................................................................................................... Download EPUB Ebook here { http://bit.ly/2m77EgH } ......................................................................................................................... Download doc Ebook here { http://bit.ly/2m77EgH } ......................................................................................................................... ......................................................................................................................... ................................................................................................................................... eBook is an electronic version of a traditional print book that can be read by using a personal computer or by using an eBook reader. (An eBook reader can be a software application for use on a computer such as Microsoft's free Reader application, or a book-sized computer that is used solely as a reading device such as Nuvomedia's Rocket eBook.) Users can purchase an eBook on diskette or CD, but the most popular method of getting an eBook is to purchase a downloadable file of the eBook (or other reading material) from a Web site (such as Barnes and Noble) to be read from the user's computer or reading device. Generally, an eBook can be downloaded in five minutes or less ......................................................................................................................... .............. Browse by Genre Available eBooks .............................................................................................................................. Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, ......................................................................................................................... ......................................................................................................................... .....BEST SELLER FOR EBOOK RECOMMEND............................................................. ......................................................................................................................... Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth,-- The Ride of a Lifetime: Lessons Learned from 15 Years as CEO of the Walt Disney Company,-- Call Sign Chaos: Learning to Lead,-- StrengthsFinder 2.0,-- Stillness Is the Key,-- She Said: Breaking the Sexual Harassment Story That Helped Ignite a Movement,-- Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones,-- Everything Is Figureoutable,-- What It Takes: Lessons in the Pursuit of Excellence,-- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!,-- The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,-- Shut Up and Listen!: Hard Business Truths that Will Help You Succeed, ......................................................................................................................... .........................................................................................................................
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Business-Proposal-Banana-Chips

  1. 1. UNIVERSITY OF SARGODHA Department of Commerce Entrepreneurship Business Proposal of BANANA CRAZEE By
  2. 2. A Business Proposal by “Falcon Group” – Entrepreneurship BANANA CRAZEE = A Product by “Frito’ Enterprisez” I C o n f i d e n t i a l Subject: Entrepreneurship Course Instructor: Sir. Mohsin Altaf Subject Credit Hours: 3 Hours Following Students are the participants to prepare & finalize this Feasibility Analysis…! Ali Raza Sahni B.Com (HONS) VIth Semester / REGULAR
  3. 3. A Business Proposal by “Falcon Group” – Entrepreneurship BANANA CRAZEE = A Product by “Frito’ Enterprisez” II C o n f i d e n t i a l BEST REGARDS TO OUR PARENTS WHO LOVE, AFFECTION & PRAYERS HAVE BEEN A SOURCE OF INSPIRATION AND ENCOURAGEMENT FOR US…!
  4. 4. A Business Proposal by “Falcon Group” – Entrepreneurship BANANA CRAZEE = A Product by “Frito’ Enterprisez” III C o n f i d e n t i a l Table of Contents Section No: Section Page No: 01 Executive Summary 01 02 The Business 04 03 Management Team 08 04 Legal Company Structure 24 05 Ownership & Intellectual Property 26 06 Industry Analysis 29 07 Marketing Plan 33 08 Operational Plan 41 09 Financial Plan 46 10 Critical Risks Factors 54 11 Appendix 56
  5. 5. A Business Proposal by “Falcon Group” – Entrepreneurship BANANA CRAZEE = A Product by “Frito’ Enterprisez” IV C o n f i d e n t i a l Acknowledgment With the name of ALLAH who is the most beneficial & merciful and He enable us to complete this business proposal to overcome our semester requirement. Then we thanks to our Entrepreneur Mr. Mohsin Altaf who guide us in very beautiful & nice way. The supervision of Sir Mohsin has provided us a lot of experience to get the view of actual market. We are very thankful to Sir Mutee, Sir Haroon, Ma’m Imrana Asad, Sir Mubashar & all other honorable teachers who share their experience & knowledge with us to complete this project in very efficient manner. In last, we are much respected for those students who provide us encouragement to complete this business feasibility report. Ali Raza Sahni Group Incharge May 27th / 2011
  6. 6. Section – 01: Executive Summary BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 1 ~ C o n f i d e n t i a l Section – 01: Executive Summary Our company “Frito‟ Enterprisez” will produce a unique and different product for the market to change the trend of the people from vegetable snakes to fruit snakes. We will provide specific unique products to our targeted customers for their maximum level of satisfaction. There is no any firm who produce “Fruit Snacks” till now in our national market. We will offer these new trended products at moderate prices for the customer benefit. The Opportunity Pakistani Market exports & demands fruits in huge quantity, but there is no any firm is present at here for the manufacturing of „Fruit Snacks”. We will provide to him fruits in various tastes, like apple, banana, orange, etc in roasted, snakes & chips form. If we will proper launch this business, then we may be in condition to change the market trends within the 10 years. If we will change the trend of the market then we will consider as “Trend – Maker” for the Snacks Industry. Competitive Advantage There is huge gap is present in the market for the fruit snacks. We have no any direct competitor at local & national competition till now. Our product will be unique in the market; we will easily achieve economies of scale with the next 12 years who provide us least cost with maximum profit. Following are our major indirect competitors in the snacks industry but all of them producing vegetable snakes as:  Lays  Golden Chips  Smiths  Kolson  Super Crisps  Krincles  Pringles
  7. 7. Section – 01: Executive Summary BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 2 ~ C o n f i d e n t i a l All of these firms are the heavy weights of the market and have the great influence on the behavior of the market. All of these are our indirect or may be future competitor for us. Most of these firms have a great market share, but not like Lays who is the leader in the Snacks Industry. Target Market If we offer this product in the market then our basic target market will be youngsters of colleges & universities who enjoy these kinds of product. When we will get a successful response then we launch this product of specific city where college or university exists. In our first attempt, we will target three cities within the 7 months to the first launching. In general sense, we have comprehensive market because every aged person has a reasonable demand of the chips. If we will target maximum colleges & universities of the Punjab within our first three years of launching then we will achieve a reasonable & stable place in the Snacks Market. Management Team For the managerial affairs of Frito‟ Enterprisez, we have to choose best one management personalities from the market who will supervise us. For the effective management, we have following managerial posts as:  CEO/Chairman  Board of Directors  Finance Manager  Accountant  Marketing Manager  Production Manager  Quality Inspector  Coordinator  HR Manager  Asst. Cost Manager  Other Staff Members
  8. 8. Section – 01: Executive Summary BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 3 ~ C o n f i d e n t i a l This will be our best try to choose well – experienced & well – qualified management team in the larger interest of the business success. But our major focus is finance & marketing heads that provide value & brand equity in the market. We will provide sufficient benefits to our employees because we believe that firm‟s employees are our assets. Financial Projections According to the Snacks Industry, we are unable to demand a huge capital from the market. But for the proper launching of business, the total required capital of business is Rs. 100 Millions. According to our analysis we have to require 7 investors which will act as the owner of the “Frito‟ Enterprisez”. For the operations of firm, we will demand Rs. 50 Million as initial investment to startup the business and Rs. 25 Million in IInd year & also Rs. 25 Million in IIIrd year. For the return on investment, we plan a strategy as ROI Policy; we will provide maximum return to our investor. We will distribute 3% to 14% return on the net profit to our 7 investors who will act as the owner of our business. We will distribute return on investment in 2nd year to the establishment of business. According to the ROI Policy, we will divide “Net Profit” of the firm after taxation & other expenses among the whole investors. After the achievement of the breakeven within 2.64 years (32 months), we will make huge profit for our investors. The profit generation in this business is not difficult due to less cost on all inputs of the production, especially raw material. We have 45% ratio of Gross Profit on the sale of each unit with respect to their Sales Price. Exit Strategy Success is not always the fate of any business. For the exit strategy to our stakeholders, we will apply following strategies as:  Sale of Business to any Heavy Weight of Snacks Industry with Product Formula  To merge “Frito‟ Enterprisez” with any other Industry related Firm  Bank – Raptly Slip to our all stakeholders
  9. 9. Section – 02: The Business (Description) BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 4 ~ C o n f i d e n t i a l Section – 02: The Business - Description Our Opportunity Business is the name of profit earning through legal activities. The most important parameter towards profit making is the presence of an opportunity gap in the market because homogenous products have a great sense of competition as compared to heterogeneous. For the Fruit Snakes, we have a great opportunity in the national market because there is no any producer is present here who provide this trend to the people & earn sufficient revenue. The international brand “Pringles” is present who provide caned banana chips at the limited level with very high price. Description of Business We “Frito‟ Enterprisez” will facilitate to people by fruit snakes in packets at the reasonable prices and obtain sufficient value from them. Now, people enjoy their life with potato chips, snakes, popcorns, chocolates, etc. but we will provide them a concept of “Fruit Chips” or “Fruit Snakes” which will be better for their health. Our initial product will be “Banana Crazee – A Taste of Nature” (banana chips) in the market to get an overall response of people towards Fruit Snakes. There is no any direct competitor is present in the market but a lot of indirect competitors are also present who are the price makers & trend changers. The first mover advantage in the Snakes Industry goes to “Super Crisp” who was the king of this industry for 25 – 30 years. Then 10 years ago, “Lays – A Product of Pepsi Co.” entered into the market and replaced the “Super Crisp” into “Lays – French Cheese”. Due to huge network, extensive promotional activities & international brand equity Super Crisp lost their market share to Lays.
  10. 10. Section – 02: The Business (Description) BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 5 ~ C o n f i d e n t i a l We have a great threat of take over & market crash from Lays as multinational brand. If the Lays want to tackle our product then 2 years time period minimum will be required due to their policy matters. For any multinational brand, it is not easy to launch a new product in the specific market within the few days or months because their strategies & policies recommended by their higher authorities which is time consuming task. Pakistan is a consumer market and our consumer is price conscious not quality or product conscious. Frito‟ Enterprisez will provide our products at reasonable prices to capture the sufficient value from our customers. We will consider as “First Mover Advantage” in the snakes industry relevant to fruit snakes. There are so many broad chances towards the success of this product. Vision Statement “We want to satisfy our customers by the taste of nature” Mission Statement “We want to offer our dedicated and innovated products to customers for their maximum satisfaction as our ultimate goal. We want the growth along with our customers, staff, employees, suppliers and all other business associates by greater value” Major Objectives For the 15 – 20 years in the future, our firm “Frito‟ Enterprisez” will achieve following major objectives from the target market as:  To known their brand as “Frito‟ Enterprisez” within the next 6 years at national level  To provide a quality product to consumer at reasonable price  To loyal the customers towards brand & capture brand equity from them  To consider that employees are our assets who provide us their services in honest way  To change the mind of people from vegetable snakes towards fruity snakes in the snakes industry with in next 10 years  To attain at least 30% market share of snakes industry within the next 10 years  To compete in the market on quality behaviors, not on price strategies
  11. 11. Section – 02: The Business (Description) BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 6 ~ C o n f i d e n t i a l  To earn minimum 30% profit on each unit from the day first  To establish their own national distribution network within next 12 – 15 years  To nationalize our firm at least 20 years to their existence  To maintain the harmonic relationships with their suppliers for the quality concerns  To provide a sufficient return to investor from our net profit Competitive Advantage We are offering a unique product to market with good quality, excellent taste & at reasonable price which will attract to consumer. We are fully free in this segment of the snakes industry till next two years minimum. And two years is enough time to grasp the huge market value. The major threat to our product is take over from Lays, but it will be not easy for Lays. Because multinational brands never want to lose their reputation in the host market through negative propaganda towards other home product. In the case of Lays threat, we have national slogan of “Be Pakistani, Buy Pakistani”, which will provide us way to capture the market share. And, we are offering “Halaal Food” to market under the Islamic Values. It is in our common observation that some years before, Lays had a blame of “Pig Fatty Oil” in their chips, and Lays faced huge financial crises due to this unethical activity in the Pakistan‟s Market. These will be ours strong bases to walk in the snakes industry. Another competition strategy is also present that we will merge themselves into Super Crisps. This merger will provide us low fixed cost, national distribution network, brand name of Super Crisp, etc. due to this merger Super Crisp may will be again attain the huge market share like in past.
  12. 12. Section – 02: The Business (Description) BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 7 ~ C o n f i d e n t i a l Current Status Now, if we launch our product to 3 – 4 major cities of Pakistan which provide us the actual behavior of our product towards people. Due to this limited launching strategy, we will prevent ourselves from the huge loss which may occur in big launching. As the first mover in the fruity snakes industry, may we will face various initial costs but all of these costs will be cover within very small next period because our profitability on each unit is so much for the investor. For the marketing concerns with respect to our competitors, we will promote our brand and products by various promotional activities and extra benefits to distributors, retailers and also to ultimate consumers. But it will be necessary for us to establish strong & solid distribution network for the consumption of our product on each & every level.
  13. 13. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 8 ~ C o n f i d e n t i a l Section – 03: Management Team For any organization, management is a first and last pyramid to handle the various operations & matters of the organization. We, Frito‟ Enterprisez is familiar with this important aspect of the business. For the managerial affairs we will choose best one management personalities from the market who will supervise to our business. The well – trained & well – qualified staff of the organization is the responsible for their success. On the other hand, loser‟s persons of the management staff may responsible for the failure of the organization. For the effective management, we have following managerial posts as:  CEO/Chairman  Board of Directors  Finance Manager  Accountant  Marketing Manager  Production Manager  Quality Inspector  Coordinator  HR Manager  Asst. Cost Manager  Salesperson  Other Staff Members
  14. 14. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 9 ~ C o n f i d e n t i a l CEO/Chairman The CEO/Chairman of the organization is the top executive body who is the legal head of the business. The CEO is the most powerful person in the organization by their powers & authorities. Eligibility Criteria: We have to require:  A Male or Female, everyone is eligible without any kind of discrimination  Age of candidate must be minimum 37 years  A person with experience of 5 – 7 years in the Public Listed Company as Executive Head  His qualification should be minimum M. Phil or PhD in the field of Economics, Business & Commerce, Management, Marketing, & Finance  He should have NOC (Non – Objection Certificate) from previous organization where he get experiences  He will be a appointed as CEO/Chairman by mutual concern of all members to board of director  He will be work with us on skill – based partnership  His rate of return will be 10% when the firm will achieve their breakeven stage  From the day one to till breakeven achievement, his allowance will be Rs. 15,000 monthly Responsibilities: He will be responsible in organization to:  He will be the official head of the whole organization  Will be responsible for each & every affair of the business  Have a control on all employees of the business except all board of directors but not Coordinator included in it, he will be under the order of CEO/Chairmen  He will entertain with full protocol from the entire workforce of the organization
  15. 15. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 10 ~ C o n f i d e n t i a l Board of Directors There are total five members as Executive Bodies of the “Frito‟ Enterprisez” which called Board of Directors and these members will consists of:  CEO/Chairman  One Investor  One Banker  Coordinator  Advisor All of the members to Board of Directors will entertain with specific amount from firm in the sense of “Allowance” for their personal involvement in the firm‟s affairs.  CEO/Chairman: The head of the whole organization and work on skill – based partnership from the business as neutral body for the organization. He will be the official head of the whole organization & responsible for each & every activity of the firm.  Investor: A person except Banker who has at least 22% to the total investment will be eligible for the member to board of directors.  Banker: A representative of Bank not Investor who has at least 12% to the total investment will be eligible for the member to board of directors. This person will be act as the representative of the specific bank.  Coordinator: The inside person from the organization who will be responsible for the instructions & information‟s distribution towards the entire workforce of the organization.  Advisor: A person rather than investor or banker who has technical, legal & analytical skills towards the business affairs with at least 3% to the total investment. This person will be act as advisor for our organization in every activity of the business.
  16. 16. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 11 ~ C o n f i d e n t i a l Finance Manager The post of “Finance Manager: or “Chief Financial Officer (CFO)” is the most important in any organization because finance is the blood of the business and without it business never exists. Eligibility Criteria: We have to require:  A Male or Female, everyone is eligible without any kind of discrimination  Age of candidate must be minimum 30 years  A person with experience of 3 – 5 years in the Public Listed Company  His qualification should be minimum M.Com or MBA (Finance)  His subject of specialization must be Finance with at least 80% marks  He should have strong grip on Finance & Accounting principles  He should have NOC (Non – Objection Certificate) from previous organization where he get experiences  Various kinds of appreciation certificates will also be preferable towards the job  The basic salary for this post will be Rs. 35,000 Responsibilities: He will be responsible in organization to:  Manage all the financial matters  Act as the head of Finance Department  Provide us projected & forecasted data for future concerns  Provide us helps in investment plans  Tackle the investors & bankers  Have no any concern with other department  Provide briefing to board of directors regarding the financial position of the firm  Directly work under the instructions of coordinator
  17. 17. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 12 ~ C o n f i d e n t i a l Accountant The “Accountant” or “Accounts Manager” is a person in the business who maintains all the accounts (real & nominal) with the specific evidences as mentioned in the laws & regulations. Eligibility Criteria: We have to require:  A Male or Female, everyone is eligible without any kind of discrimination  A person with no experience or fresh candidate is eligible  His qualification should be minimum 16 years in the field of commerce  His subject of specialization must be Accounting (not Finance) with at least 75% marks  He should have grip of handling the Accounting matters  He should have NOC (Non – Objection Certificate) o For Experienced Candidate – from the organization where he get experiences o For Fresh candidate – from their educational institute  Various kinds of appreciation certificates will also be preferable towards the job  He should have grip to utilize Quick Book, Peach Tree, etc  The basic salary for this post will be Rs. 20,000 Responsibilities: He will be responsible in organization to:  Manage all the accounts of the whole business which will specified in Frito‟z Newsletter ( a monthly published document by firm)  Act as the head of Accounts Department  Maintain all the records with specific evidence  Have no any concern with other department  Petty Cash Affairs will be present under this post  Directly work under the instructions of coordinator
  18. 18. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 13 ~ C o n f i d e n t i a l Marketing Manager The “Marketing Manager” of “Marketer” is another most important post in the organization to plan & implement various strategies according to the market situation. Eligibility Criteria: We have to require:  A Male with the age of minimum 35 years  A person with the minimum experience of 5 – 7 years in Marketing Department of any prominent firm of Food Industry  He should have repute certification from three marketing weights  His qualification should be at least MBA (Marketing) with at least 65% marks  He should have strong grip on marketing & sales allocation  He should have NOC (Non – Objection Certificate) from previous organization where he get experiences  Various kinds of appreciation certificates will also be preferable towards the job  The basic salary for this post will be Rs. 30,000  His commission of Rs. 0.25 on the sale of each unit will also be allocated Responsibilities: He will be responsible in organization to:  Act as the head of Marketing Department  Supervise to their salesman force & also responsible for their behavior  Fully free & isolate in making & implementing the marketing strategies under the specific instructions from the board of directors & coordinator  Manage & achieve various sales target for profit generation towards the firm  The repeat sales or change in trends (fad) marketing behavior also under their shadow  Have no any concern with other department except Production at limited extent  Provide briefing to board of directors regarding the sales pattern in the market
  19. 19. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 14 ~ C o n f i d e n t i a l Production Manager The “Production Manager” or “Manufacturing Supervisor” is a person in the business who responsible for all the manufacturing or production concerns of the basic product or service. He manage whole assembly line for efficient production process. Eligibility Criteria: We have to require:  A Male with the age of minimum 30 years  A person with no experience or fresh candidate is eligible  His qualification should be minimum 14 years in the field of commerce & business  He should have grip to handle various production affairs  He should have NOC (Non – Objection Certificate)  For Experienced Candidate – from the organization where he get experiences  For Fresh candidate – from their educational institute  Various kinds of appreciation certificates will also be preferable towards the job  He should have ability to tackle the human resource  The basic salary for this post will be Rs. 25,000 Responsibilities: He will be responsible in organization to:  Act as the head of Production Department also Production Assembly Line  Maintain all the records of raw material & finish goods  Have no any concern with other department  Directly work under the instructions of coordinator  Responsible for the labor affairs except their salaries/wages  Responsible for the raw material usage, finish stock warehousing & wastage during the production process
  20. 20. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 15 ~ C o n f i d e n t i a l Quality Inspector The “Quality Incharge” or “Quality Inspector” is the most important person in the production process to verify the quality of the product or their design. We are quality conscious for the customer satisfaction that why we have well – qualified quality inspector for the betterment of our product. Eligibility Criteria: We have to require:  A Male with the age of minimum 27 years  A person with minimum experience of 2 – 3 years in any quality conscious food industry  His qualification should be minimum MBA or M.Com with 70% marks at all  His subject of specialization must be TQM or OPM with at least 80% marks  He should have NOC (Non – Objection Certificate) form previous organization where he get experiences  Various kinds of appreciation certificates will also be preferable towards the job  He should have grip to utilize various quality techniques  The basic salary for this post will be Rs. 20,000 Responsibilities: He will be responsible in organization to:  Act as the head of Quality Department  Inspects the quality pattern during the production process  Have no any concern with other department except Production will full extent  Choose suppliers under the specific instruction from top level management & also responsible for the behavior of these suppliers  Responsible for any kind of defect in the product regarding the quality concern  Directly work under the instructions of coordinator
  21. 21. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 16 ~ C o n f i d e n t i a l Coordinator The “Coordinator” or “Vice Chairman” of the organization is the executive body who controls all the affairs of the business & provides coordination among the various departments & staff members in the larger interest of the firm. Eligibility Criteria: We have to require:  A Male or Female, everyone is eligible without any kind of discrimination  Age of candidate must be minimum 32 years  A person with experience of 4 – 5 years in the Public Listed Organization as the coordinator or acting coordinator  His qualification should be minimum MBA (HR), not any other is required  He should have NOC (Non – Objection Certificate) from previous organization where he get experiences  Various kinds of appreciation certificates will also be preferable towards the job  His behavior towards the organization should be multi – dimensional  The basic salary for this post will be Rs. 50,000  He will be a appointed as Coordinator by mutual concern of all members to board of director  He will be work with us on skill – based partnership  His rate of return will be 7% when the firm will achieve their breakeven stage  From the day one to till breakeven achievement, his allowance will be Rs. 12,000 monthly Responsibilities: He will be responsible in organization to:  Responsible to monitor all the internal & external affairs of the organization  His behavior towards departments should be linen ant & positive
  22. 22. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 17 ~ C o n f i d e n t i a l  To coordinate all the affairs of the business to each & every level with specific limitations  Act as a “Supervisor” towards all the departments  Responsible to provide briefing to board of directors regarding the overall situation of the business  Responsible to convey each & every information to their related person in written way  Directly work under the instructions of Chairman & Board of Directors Legal Advisor The “Legal Advisor” or “Attorney” of the business should be well – experienced & well – capable person who tackle all the legal procedures which are mention by Govt. of Pakistan in their various laws regarding the corporations & their affairs. Eligibility Criteria: We have to require:  A Male or Female, everyone is eligible without any kind of discrimination  Age of candidate must be minimum 27 years  A person with experience of 3 – 5 years in the any law firm  His qualification should be minimum L.L.B. (HONS), not any other is required  He should have NOC (Non – Objection Certificate) from previous organization where he get experiences  Various kinds of appreciation certificates will also be preferable towards the job  He should have technical skills to manage the legal proceedings  He will be a appointed as Legal Advisor by mutual concern of all members to board of director  He will invest in our business minimum 3% of the total investment  He will be work with us on skill – based partnership as well as invest – based partnership  His rate of return will be 3% when the firm will achieve their breakeven stage  From the day one to till breakeven achievement, his allowance will be Rs. 10,000 monthly
  23. 23. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 18 ~ C o n f i d e n t i a l Responsibilities: He will be responsible in organization to:  Responsible to monitor all internal & external legal affairs of the organization  He will hire the law firm to help us to fulfilling various formalities of the business organization  He will be responsible to convey each & every legal or lawful information to their related person in written way  Directly work under the instructions of Chairman & Board of Directors HR Manager The “HR Manager” or “Human Resource Supervisor” is a person who will manage bottom level management in all departments of the firm. For Example: Engineering Affairs, Warehousing, Safe & Secure Storage of Stock, Production Line Errors, etc. Eligibility Criteria: We have to require:  A Male with the age of minimum 36 years  A person with experience of 5 – 7 years in any organization  His qualification should be minimum Intermediate with 75% marks  He should have NOC (Non – Objection Certificate) from previous organization where he get experiences  Various kinds of appreciation certificates will also be preferable towards the job  His ability of handle small matters of the business must be sharp & confidential  Person will be selected by the mutual concentration of Heads & Board of Directors  The basic salary for this post will be Rs. 30,000
  24. 24. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 19 ~ C o n f i d e n t i a l Responsibilities: He will be responsible in organization to:  Responsible to monitor & handle to tackle all the minor problems in the organization  He should maintain all the team work to work out in the organization  Directly work under the instructions of Coordinator & Board of Directors  He should have access to each & every department according to their work  Will be the supervisor of the bottom level management  Directly work under the instructions of coordinator Asst. Cost Manager The “Assistant Cost Manager” or “Finance Coordinator” is a person in our organization who will personally assist the Finance & Accounts Department. Eligibility Criteria: We have to require:  A Male or Female, everyone is eligible without any kind of discrimination  A person with no experience or fresh candidate is eligible  His qualification should be minimum 16 years in the field of commerce  His subject of specialization must be Accounting or Finance with at least 60% marks  He should have grip of handling the Accounting & Financial Matters  He should have NOC (Non – Objection Certificate)  For Experienced Candidate – from the organization where he get experiences  For Fresh candidate – from their educational institute  Various kinds of appreciation certificates will also be preferable towards the job  He should have grip to utilize Quick Book, Peach Tree, etc  Person will be selected by the mutual concentration of Heads & Board of Directors  The basic salary for this post will be Rs. 17,000
  25. 25. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 20 ~ C o n f i d e n t i a l Responsibilities: He will be responsible in organization to:  Manage & Assist to Finance & Accounts Departments  Have concerns with all other department  Responsible to lose down the per unit cost with maximize profit for business  Directly work under the instructions of coordinator Salesperson The asset of the organization is “Salesperson” or “Sales Promoter” who sale down the product or service of the business in the market. This is most important person in the organization who maintains the goodwill of organization in the market. Eligibility Criteria: We have to require:  A Male with the age of minimum 25 years  A person with the minimum experience of 3 – 5 years in Market of the Food Industry  He should have repute certification from one marketing weight  His qualification should be at least 14 years of commerce or business education  His subject of specialization must be Marketing with at least 75% marks  He should have strong grip on marketing & sales promotion activities  He should have NOC (Non – Objection Certificate) from previous organization where he get experiences  Various kinds of appreciation certificates will also be preferable towards the job  He should be the resident of the specific area where our product will be launch  The basic salary for this post will be Rs. 17,000  His commission of Rs. 0.25 on the sale of each unit will also be allocated
  26. 26. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 21 ~ C o n f i d e n t i a l Responsibilities: He will be responsible in organization to:  He should be responsible for the allocated tasks by the Marketing Department  He must be responsible for the goodwill of the firm in the market  He will directly work under the instructions of Marketing Manager  He have no any special permission to work with another organization of any kind  He should be the trail able for any fraudulent behavior in the market on the behalf of organization Key Professional Service Providers We will allocate various firms & consultants to manage & monitor our business activities with the concern of specific fees.  Business Consultant Agency: Any firm who will provide help to us in every activity of the business according to our requirement. We will pay him on monthly basis and get their suggestions & consultancy for the betterment of our business.  Audit Firm: Any firm who will conduct the audit on bi–annually basis and submit their report to board of director as twice time in the year. This audit will be helpful for the taxation department formalities & also provide an internal picture of our business regarding the utilization of resources.  Law Firm: Any firm who act as “Attorney” for our business in each & every aspect in the legal matters. All the legal procedures of the business will be the responsibility of this firm. Whenever, our organization will face any kind of legal problem from any side this firm will tackle this case. Rules & Regulation for the Organization Structure  The official head of the organization will be CEO/Chairman  All the members of board of directors will under the CEO/Chairman  Any decision by board of directors will be base on majority except CEO/Chairman‟s vote  Any majority decision by board of directors must have one vote by investor or banker
  27. 27. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 22 ~ C o n f i d e n t i a l  One Member  One Vote, policy will be implemented in the whole organization at each & every level  CEO have special authority to remove any head & other staff member anytime without any mutual concentration with any other official on the behalf of some reason  For the meeting to board of directors, minimum three members should be present except CEO/Chairman  For the meeting to heads of departments, minimum three members should be present except Coordinator  The HR Manager will be appointed by the mutual concentration of all heads & board of directors  The Business Consultant Agency, Law Firm & Audit Firm will be appointed by the majority decision of the board of directors  The returns of investors & bankers will be determine by the Finance Department with the concern of CEO/Chairman & Coordinator  The Coordinator will be the supervisor of all the departments & all heads will be under their instructions directly or indirectly  All of the orders & information in the organization will circulate in the written & confidential way for the record of each & every activity  The HR Manager & Production Manager will be responsible for the appointment of labor & skills men for the manufacturing process  The bottom level staff of the entire organization will be under the shadow of HR Manager  Any kind of changes in organizational structure will be implemented by all the members to board of directors & heads of departments  Any kind of special authorities & powers will be delegated to any staff member will be valid by the instructions of board of directors  Any increment in the salaries & wages for the entire organization will be passed by the board of directors & Finance Manager  Each & every person will be responsible towards their duties within the organization without any kind of relaxation & nepotism
  28. 28. Section – 03: Management Team BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 23 ~ C o n f i d e n t i a l Organizational Structure Frito’ Enterprisez – Organizational Structure CEO / Chairman Investor Banker CoordinatorAdvisor Business Consultant HR Manager Law Firm Audit Firm Finance Manager Marketing Manager Production Manager Accountant Quality Inspector Asst. Cost Manager Complainant Officer Salesperson Labor + Skillman
  29. 29. Section – 04: Legal Company Structure BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 24 ~ C o n f i d e n t i a l Section – 04: Legal Company Structure Our Firm – Frito’ Enterprisez Our firm “Frito‟ Enterprisez” will be a “Private Limited Company” under the Companies Ordinance, 1984. According to the law, a private limited company is an association of at least 2 but may not exceed 50 members. This form of firm is restricted from the right of its members to transfer their invested part within the company. It also prohibits to any invitation to the public to subscribe their shares or debentures. It will be registered under the Companies Ordinance, 1984 and corporate taxation law. All the members will entertain with the limited liability. All the members especially investor & bankers join this organization under the Partnership Act, 1932. Under this law, partnership is a voluntary association of two or more persons, who contribute their money, property, time, skills knowledge, energy, ability & experience to carry on business for the profit/loss sharing among each other. The partnership itself have no any legal separate entity, all of members will partners under the head of some specific voluntary kind of firm, which is registered by any law. Legal Status of Frito’ Enterprisez The legal structure of our firm “Frito‟ Enterprisez” will be a company as private business of various investors, bankers & skilled based persons who invested their money, time, experience & abilities on risk basis & demand high rate of returns against them. The investor with 35% to the total investment & banker with 25% of the total investment will be the members to board of directors without any kind of eligibility criteria. And, CEO/Chairman, Coordinator & Legal Advisor will invest their skills & experiences with the specific selection criteria. Our firm has skilled based investment & money investment portfolio at the time with the different rate of returns on the total invested money & abilities.
  30. 30. Section – 04: Legal Company Structure BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 25 ~ C o n f i d e n t i a l In our partnership relationship, we have a lot of partnership deeds. All the partnership deeds (agreements) should be disclosed in the first or statutory meeting of the board of directors. The partnership deeds regarding CEO/Chairman, Coordinator & Legal Advisor will be discussed in this meeting. At the 5th of each month, firm will issue a special kind of document “Frito‟z Newsletter” – a letter which will describes the firm news, policies, rules, regulations, strategies, plans, goals, objectives & achievements of the whole organization. The duties & responsibilities of each staff member will be mention in it which may increase or decrease on monthly basis. The confidential matters will never to be disclosing in this document. This is a public document for our inner structure of Frito‟ Enterprisez. Frito’ Enterprisez Head Office Address: Frito‟ Enterprisez, 73 / A, Century Plaza, Near Centre Point (Mini Golf), Lahore, Punjab – 35000 Assembly Line: Frito‟ Production Unit, Near Falcon Motor, Lahore Road, Sargodha
  31. 31. Section – 05: Ownership & Intellectual Property BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 26 ~ C o n f i d e n t i a l Section – 05: Ownership / Intellectual Property Total Capital Requirement Our firm “Frito‟ Enterprisez” will be work under the status of “Private Limited Company” who has various partners which may invest their money and skills. The ownership title of this organization will be goes to various personalities who invested their money & experiences with us. But the general partners & owner of our business will be our investors & bankers who provide us huge money to startup this business. Following are the investors & bankers are willing to invest their money in our business as:  Investor # A – Rs. 26 Million – 26% to the total investment  Investor # B – Rs. 20 Million – 20% to the total investment  Investor # C – Rs. 15 Million – 15% to the total investment  Banker # A – Rs. 13 Million – 13% to the total investment  Banker # B – Rs. 11 Million – 11% to the total investment  Banker # C – Rs. 7 Million – 7% to the total investment  Legal Advisor – Rs. 4 Million – 4% to the total investment  Total Investment Rs. 100 Million 100% to the total investment For the investment requirement, we will prefer to get total amount investments from our kind investors within the time period of 2 – 3 years to launching a business. At initially, we will demand a lame – some amount to fulfill our initial costs & other heavy expenses which are consider as basic requirement for any startup unit. The amount of Rs. 100 Million is not enough for 7 investors to contribute in any business when the 95% chances of success are present with heavy profit generation after the achievement of breakeven stage of the business.
  32. 32. Section – 05: Ownership & Intellectual Property BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 27 ~ C o n f i d e n t i a l Owners of the Business According to the Investment Portfolio, the Investor A & Banker A will be included in the members to Board of Directors due to their highest investment. All other owners of the Frito‟ Enterprisez will be categorized according to their part of investment in the total invested amount. Any owner has no any legal role to operate the business except members to Board of Directors. When any kind of special decision will take in the interest of the business, then “Owner‟s Conference” – (all specified above owners) will call & get their point of views about specific matter. In routine matters, no any owner has their influence on management & board of directors. In the case of liquidation of firm, each & every owner will be responsible for their invested amount in the Frito‟ Enterprisez according to their share in the total investment, as mentioned above. The return on investments is applicable on the “Net Profit” of the firm, not another margin. Owner Preference %age Investment Return on Investment (%) Investor # A 26% 14% Investor # B 20% 12% Banker # A 15% 14% Investor # C 13% 08% Banker # B 11% 12% Banker # C 7% 10% Legal Advisor 4% 3% CEO/Chairman Skilled Base 10% Coordinator Skilled Base 7% Company Savings (for future concerns) 10% Total 100% + Skills 100%
  33. 33. Section – 05: Ownership & Intellectual Property BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 28 ~ C o n f i d e n t i a l Intellectual Property Our firm, Frito‟ Enterprisez have no legal status till now, but we will register themselves as soon as possible in the first aspect of the business. When we will register ourselves, then we will use this monogram as the identification logo of the firm. On each & every product or service offer by us will have the mono. This monogram is the “Trade Mark” for us as the legal status of the firm. It will be our first preference that we will show this trade mark on every offer product in the market. After the launching of product, we will give legal status to our production process as patent. In general sense, we will register our assembly line with the name of “Frito‟ Assembly Line”. The purpose to get legal status for our production process is to eliminate the competitor role towards the copy us. Our production process is the basic secret for our firm.
  34. 34. Section – 06: Industry Analysis BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 29 ~ C o n f i d e n t i a l Section – 06: Industry Analysis Industry Description People demand the product according to their intuitions & preferences. We know that the 3rd World Countries are very habitual to adopt the Western Culture. Likewise, Pakistan is also in line with those countries which have big potential do exist for investment in the Snacks Industry in Pakistan as the Demand or Growth rate is very high. Annual Growth Rate of Snacks Industry is estimated at the rate of 20 % - 30 % per annum. Most of the children, teenagers and young people are the target market of the product and we have the experience that the eating habits of the target market is rapidly changing and they like to have snacks all the time. Further potato and corn snacks are labeled as a meal replacement and being a light fast food is becoming popular. The life style is improving and going to be changed and also because of satellite invasion the demand is bound to register a considerable boost. Now, people are enjoying with the potatoes & corn chips in so many flavor but we want to change the trend of nation from vegetable to fruit chips which are better for health. The opportunity for our new trend product is present in the market. We want to get benefit from this gap and make a profit. Industry Size In common practice, there are four phases present in the market regarding the Product Life Cycle, Introduction, Growth, Maturity & Decline. Every sector of the economy is based on this principle. The size of our industry is so large because each kind of person likes snacks. There are few firms who fulfill this demand ay national level. We have a golden opportunity to enter in this market with some heavy investment & take over the trend.
  35. 35. Section – 06: Industry Analysis BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 30 ~ C o n f i d e n t i a l The demand of the present market is met by the mix of Branded and Unbranded Chips available in the Market. There is 60% of the population which is Brand Loyal. However remaining 40% of the Un-branded Market can be attracted through heavy Advertisement Campaign. On the basis of data collected and present survey of the market, current total market is estimated at 2,000 Tons of Chips which is segregated as follows: Industry Attraction The Snacks Industry of Pakistan is on growing phase and has a lot of potential to absorb firms easily. The window of opportunity is open for us with the high growth rate. The Annual Growth Rate of Snacks Industry is estimated at the rate of 20 % - 30 % per annum. Under the export prospects for the next decade are very promising given the sustained and continued expansion of the Fast Food Industry abroad. Further Tariff cuts under Trade Agreements are anticipated. Low per Capita consumption of Fries in the overseas market is a strong indication of future demand. These upcoming symptoms have a great potential to make huge profit. Profit Potential Profit generation is the basic parameter to execute the business. The sales trend of crisps and snacks is increased by 10% between 2000 and 2005 to at their peak at £ 2,386 million. A decline of 3.5% in 2004, however, took retail sales to £ 2,303 million due to the implementation of taxation structure of retailers. According to our analysis, we are producing unique product which will provide us a huge profit after the achievement of our breakeven with in maximum 4 years to their execution. The behavior of Pakistan‟s Market towards the unique products is so attractive. So, there are so many chances to the generation of profit from this sector. Segments Share % Quantity (Tons) Branded 60 1,200 Unbranded 40 800 Total 100 2,000
  36. 36. Section – 06: Industry Analysis BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 31 ~ C o n f i d e n t i a l Target Market Targeting a market is a critical factor in the marketing strategy of a company. The target market should be in accordance with the company‟s goals and objectives. The target market for Snacks Industry is comprehensive by nature because the children, teenagers and young people are the target for our industry. Home, rather than school, is the most popular destination for eating crisps and savory snacks, with seven in ten children (70%) consuming them at home, against around half (48%) who eat such snacks at school. According to our marketing strategy, we will target first of all to colleges & universities of major three cities. After the possible response from these cities we will take next step towards other cities. After one to spot launching, we will start our work for the establishment of national distribution network. We will establish this network within next 10 – 12 years, which include each & every street of the Pakistan. Competitive Position The competitor analysis for Snacks Industry of Pakistan regarding marketing affairs is easily understandable by this table, which provide segmented percentages as, Super Crisp – Super Crisp is the market leader with maximum market share of almost near 40%. Now they are in big threat due to lays. The age segment for Super Crisp ranges from 5 – 20. Golden Chips – The sale price of golden chips is Rs. 5. They are targeting to Sec B & C. Kolson Chips – Kolson successful products include Slanty. They have chips but they are not successful and usually not regularly available. Pringles – Pringles is imported from other countries by P&G. They are hygienic, best quality crisps and they are quite expensive. Pringles are targeting to Sec A1 & Sec A2.
  37. 37. Section – 06: Industry Analysis BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 32 ~ C o n f i d e n t i a l Chips Manufacturing Plants Currently in Operation Following are the major and leading Producers of Potato Chips (Crisps) in Pakistan. The Crisps are being produced by direct Potato Cuts/slices and also by Extrusion Process. However, there is not a single Frozen French-Fries Producing Company / facility in Pakistan. We know that all of these firms are operating in the vegetables snacks not in fruit snacks like us. It will be a competitive advantage for us to produced a unique product for the market and generate heavy profits. All of our competitors are strong but in condition to change the trend of the market due to their brand reorganization at the national or international level. Sr. No: COMPANY NAME BRAND NAME 1- Standard Foods (Pvt.) Limited Golden Chips 2- Tripple EM (Pvt.) Limited Super Crisps 3- Kohinoor Smith (Pvt.) Limited Smiths 4- Consolidate Kolson 5- Trading Enterprises Krincles
  38. 38. Section – 07: Marketing Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 33 ~ C o n f i d e n t i a l Section – 07: Marketing Plan We are producing “Consumer Goods” which are purchased by ultimate user from retailer outlets for their own personal usage. Within the head of consumer goods, we are producing “Convenience Goods” – most of the time these goods are purchased in small quantities and have a low unit value. The profit margin on convenience goods is not so much as like other kinds of goods. According to the term Marketing Research – the systematic design, collection, analysis & reporting of data relevant to a specific marketing situation facing an organization. We have conducted marketing research through questionnaires in our target market. Survey Research – the most widely used method for primary data collection, is the approach best suited for gathering descriptive information. A company that wants to know about people‟s knowledge, attitudes, preferences or buying behavior can often find out by asking them directly. The questionnaire of our marketing research is attached in the Appendix. Product Feasibility & Strategy Our product “Banana Crazee”, the modified form of “Banana Chips” in the national market of Snacks Industry will may change the trend of people from vegetable snacks towards the fruit snacks. That‟s why the slogan of our product is “Banana Crazee – the taste of nature”. In our initial launching, we are introducing two products of “Banana Crazee” with different tastes to understand the behavior of the market & customer towards the fruit snacks as,  BANANA CRAZEE – Saltiest  BANANA CRAZEE – Chill Up Banana Crazee – Saltiest: The salty flavor of snacks especially for kids & health conscious people who avoid from the high fats & sugar. The neutralized iodized (0.025%) salt will be added in this product for the taste & ultimate flavor.
  39. 39. Section – 07: Marketing Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 34 ~ C o n f i d e n t i a l Banana Crazee – Chill Up: The chilly flavors of snacks for young people especially for girls who demand something chill in their food. Various kinds of masala‟s and magnesium salts will be added in this product for the taste. We are introducing two packing for both flavors as,  Mini – Pack Banana Crazee = 30 Grams with Rs. 20/= for consumer  Midi – Pack Banana Crazee = 65 Grams with Rs. 35/= for consumer * RP = Retail Price – price for ultimate consumer * The Firm‟sProfit + Distribution Channels Profit = Retail Price (RP) The product analysis regarding their ingredients will be shown on the product design (prototype) which is attached in the Appendix. The analysis of ingredients is determined by the Forensic Department of Pakistan. The report of Forensic Department provides a satisfaction to our product regarding the reverse engineering matters of our product, which are impossible due to their unique kinds of tastes & items in it. According to our price analysis, which is shown on next pages, we are in condition to generate a great profit from each unit sold down in the market. The Trade Price (firm‟s price for their customers) is shown in this table as: * TP = TradePrice – firm‟s price for their customers * MasterPacking = Cartons Product Taste Weight RP (For Mini – Pack) RP (For Midi – Pack) Banana Crazee Saltiest 30 Grams Rs. 20/= Rs. 35/= Banana Crazee Chill Up 65 Grams Rs. 20/= Rs. 35/= Product Weights / Quantity TP of Each Unit Master Packing TP for Master Pack Banana Crazee – Saltiest 30 Grams / Mini – Pack Rs. 17/= 48 pieces Rs. 816/= Banana Crazee – Chill Up 30 Grams / Mini – Pack Rs. 17/= 48 pieces Rs. 816/= Banana Crazee – Saltiest 65 Grams / Midi – Pack Rs. 29/= 24 pieces Rs. 696/= Banana Crazee – Chill Up 65 Grams / Midi – Pack Rs. 29/= 24 pieces Rs. 696/=
  40. 40. Section – 07: Marketing Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 35 ~ C o n f i d e n t i a l * Mini Master Packing = (Rs. 17 × 48 pieces) = Rs. 816/= * Midi Master Packing = (Rs. 29 × 24 pieces) = Rs. 696/= Marketing Strategies We are discussing four marketing strategies which will may valid for next 15 years of the business life. All of these strategies are based on the time period to launching the product in any city or part of the Pakistan.  Initial Launching Marketing Strategy  Phase Marketing Strategy  General Marketing Strategy  National Marketing Strategy (Appendix) All of these strategies have following terms which are used by “Frito‟ Enterprisez” for their marketing plans & promotions as:  Discount Package  Free Scheme  Extra – Benefits Allowance Discount Package – under this sales promotional package, we are giving various kinds of discounts to distributors, retailers & also consumers for attract their attention towards us. The discount range in this package is 2% - 15% according to time & situation. Free Scheme – under this sales promotional package, we are giving free units (in master packing) on the master packing sales of cartons in big quantity. This scheme is valid only for distributors & retailers. The range of master packing is varies from 1 carton – 7 cartons. Extra – Benefits Allowance – under this promotional package, we are offering so many kinds of various things which will provide benefits to retailers & consumers not to distributors. Following things are giving under this package as:  Product Display Stands  Publicity & Advertisement Material  Display Allowances  Discount Cards to Loyal Customers  Extra – Discount to Anyone (0.5% - 3.0%)
  41. 41. Section – 07: Marketing Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 36 ~ C o n f i d e n t i a l Initial Launching Marketing Strategy When we want to launch our product in any area of the Pakistan, then this initial strategy for marketing & promotion will be implement for the penetration into the market as soon as possible. Before 10 days to launching the product in any area, we will start our promotional activity which includes, pamphlets, Banners, FM Adz, Cable Adz and Sign Boards Flexes. The quantity for this promotional budget will vary with respect to the specific area & our promotional budget. All of this promotional campaign will manage by Marketing Manager. When we launch our product into the market, then we will never target to the distribution network of this specific area, we will directly target to retailers & consumers who provide us value. This penetration strategy wills breakdown the monopoly of distributor regarding our product. We will introduce our product at initial level to colleges & universities of the specific area. The canteens of these institutions will provide us demand in students & also in local market. Under the Discount Package, we will provide 15% discount to our retailer or canteen owner on retail price (RP) of each master packing for either (Mini- or Midi Pack). Under the Free Scheme, we will offer him 2 Free Carton with 10 Mini – Pack Cartons & 1 Free Carton with 10 Midi – Pack Cartons. It is the fully choice of retailer or canteen owner either he select Discount Package or Free Scheme but not both. Under the Extra – Benefits Allowance, we will provide him 1 stand on the net purchase of 3 cartons of anyone master packing. If he wants to purchase more than 3 cartons, then we will provide him 2 stands on the net purchase of 5 cartons. At least one stands is compulsory for each retailer or canteen owner. We will provide one banner to each retailer and 100 pamphlets without any kind of cost for their counter display on each delivery. If we conduct any “Spot Activity” for consumers then we will provide him 40% discount on the retail price. This spot activity must be sponsor by Frito‟ Enterprisez may on the behalf of some retailer or any other entity. For the conduction of spot activity, our Marketing Manager will manage whole campaign. This strategy will be valid till after 30 days to the introduction of the product in the market. After 30 days, we will move towards the next scheme.
  42. 42. Section – 07: Marketing Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 37 ~ C o n f i d e n t i a l Phase Marketing Strategy After the 30 days to the launching of product, we will implement the “Phase Marketing Strategy”. Under this strategy, we will provide 10% discount to each retailer on retail price (RP) under the activity of Discount Package. If he want to enjoy with the Free Scheme, then 2 Free Cartoons with 10 Mini – Pack Cartons & 1 Free Carton with 10 Midi – Pack Cartoons. This scheme is same as like in previous strategy. Like previous strategy, it will be the fully choice of retailer or canteen owner either he select Discount Package or Free Scheme but not both. Under the Extra – Benefits Allowance, we will provide him 1 stand on the net or credit purchase of 3 cartons of anyone master packing. If he wants to purchase more than 5 cartons, then we will provide him their demanded number of stands. At least one stands is compulsory for each retailer or canteen owner. We will provide one banner to each retailer and 100 pamphlets as promotional activity to their counter display on each & every delivery. If we conduct any “Spot Activity” under the Phase Marketing Strategy for consumers then we will provide him 40% discount on the retail price. This spot activity must be sponsor by Frito‟ Enterprisez may on the behalf of some retailer or any other entity. For the conduction of spot activity, our Marketing Manager will manage whole campaign. This strategy will be valid till the allocation & deal of any distributor in the specific area. Under our projection analysis, we will get no more time to the allocation of any distributor for our product. According to Market Analysis, we demand just maximum 5 months for the execution of any distribution in specific area, where we already has launched our product. General Marketing Strategy When we have our own distributor in the specific area where we have already launched our product, then we will implement our “General marketing Strategy”. This strategy is just valid for Distribution Network, if in any case the distribution network will may not establish in the specific area within 5 months to launching of our product. Then we will continue the previous strategy till we establish our sole in this area.
  43. 43. Section – 07: Marketing Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 38 ~ C o n f i d e n t i a l Under this Discount Package, we will provide Rs. 1.5/= on Mini – Pack & Rs. 3/= on Midi – Pack, on each unit without any kind of carriage expenses. And, distributor will provide Rs. 1.5/= on Mini – Pack & Rs. 3/= on Midi – Pack, on each unit to retailer, all carriage expenses of distributor will less from this profit margin of retailer. Except from this profit margin on each unit, we will provide 1 Free Cartoons with 10 Mini – Pack Cartons & 1 Free Carton with 15 Midi – Pack Cartoons under Free Scheme. Under the Extra – Benefits Allowance, we will offer following this to each distributor as our authorized dealer in the specific area, which jurisdiction is allocated by our Marketing Manager.  All the expenses of carriage till the delivery in the hands of the distributor  He have ability to demand sufficient stands according to their requirement  He have ability to demand enough promotional material as their requirement  All the advertisement expenses will be bear by the firm  Firm will allocate a sufficient balance for the retailers as their Display Allowance which given on the behalf of the distributor  The Usage of Display Allowance is in the hands of distributor with specific evidence  The Marketing Manager have ability to give 0.5% to 3.0% extra discount to any distributor on the behalf of their huge delivery & repeat sales behavior If we conduct any “Spot Activity” under the General Marketing Strategy for consumers then we will provide him 35% discount on the retail price. This spot activity must be sponsor by Frito‟ Enterprisez just on the behalf of our distributor who gain the profit 5% of the total sales in this spot activity as their profit margin. For the conduction of spot activity, our Marketing Manager will manage whole campaign. This strategy will be valid for the implementation of new strategy for any distributor.
  44. 44. Section – 07: Marketing Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 39 ~ C o n f i d e n t i a l Pricing Strategies We knew that price competition is the core element in the free economy. For setting prices of products various kinds of supply & demand forces shows their behavior in the general market. The companies are not freely independent to charge their prices from customers according to their demand. We allocate our prices or customers & consumers on the following basis according to this given below pattern as: * Total Variable Cost = representsthe cost of product which firm bear to produce a product which will be discussed in the Appendix * Carriage Expenses = allthe expenses which firm will beartotransport the product in the hands of distributor or retailer * Selling Commission = Rs. 0.50 or each unit will be equally divided into the Marketing Manager & specific Salesperson who so ld this unit * Fixed Reserve Cost = a reserve which may used for any affair of the firm may be for the recovery of Fixed Cost by the instructions of CEO/Chairman * FirmProfit = This is the Gross Profit Margin of the firm which will used to pay various kinds of expenses & fixed costs to the operations of the Frito‟ Enterprisez * Trade Price = a firm price fortheir customers but not fortheir retailers * Distributor Margin = a gross profit forthe distributorto operatetheir business * Retailer Margin = a gross profit forthe retailer which may includes the carriage expenses from distributor * Retail Price = a price for the ultimate consumer who purchase our product fromthe retailer elsewhere inthe Pakistan Price / Cost For Mini – Pack (in rupees) For Midi – Pack (in rupees) Total Variable Cost 7.35 14.15 Carriage Expenses 0.50 0.50 Selling Commission 0.50 0.50 Total Cost Per Unit 8.35 15.15 Fixed Cost Reserve 1.00 1.00 Firm Profit 7.65 12.85 Trade Price (TP) 17/= 29/= Distributor Margin 1.50 3.00 Retailer Margin 1.50 3.00 Retail Price (RP) Rs. 20/= Rs. 35/= Weights (in grams) 30 Grams 65 Grams
  45. 45. Section – 07: Marketing Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 40 ~ C o n f i d e n t i a l Promotional Strategies Most of the promotional strategies are discussed in the product feasibility & strategy but for more common practice, we also discuss various modes of promotional activities which choose by our firm for themselves under the limitations of their budget. We will start our various promotional activities since 10 days before to the initial launching of our product in the specific area market. In our first 3 years, we will use following promotional modes to convey our message towards the general public as:  Pamphlets  Banners  Voucher Billing Pads  Sign Board Flexes  FM Band Advertisement  Local Cable Advertisement After the 3 years to the launching of our product, when we feel we are in better condition to handle our brand value then we will target National Media for our promotional advertisements. We will target PTV, Geo Network, Express Network and Duniya Network in possible time. Our first preference for the national advertisement will be the prime time. For the day first to next 5 years, we will provide following promotional activities & customers behaviors activities for the loyalty of our brands as:  Toll Free Number on backside to product – design  E – Mail ID + Web link on the product – design  Complaint Officer in the Head Office, Lahore  Garments with labeled promotional adz (as t – shirts, bands, etc)  Shopping Bags  Calendars  Key Chains, etc.
  46. 46. Section – 08: Operational Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 41 ~ C o n f i d e n t i a l Section – 08: Operational Plan The concept of production refers to the transformation of inputs or resources into outputs of goods & services. The Inputs are the resources which used in the production of goods & services. There are two kinds of inputs as Fixed Inputs & Variable Inputs. The term Fixed Inputs refers that inputs or resources which cannot change be readily changed during the time period under consideration, except perhaps at very great expenses. And, the Variable Inputs refers that inputs or resources which can easily varied and on very short notice. The concept of Short – Rum Time Period & Long – Run Time period is mostly used in the production concept. For the Short – Rum Time Period, we refers the time period during which at least one input act as fixed. And for the Long – Run Time Period, we refers the time period when all the inputs are variables. Method of Production We have proper Assembly Line (A/L) for our production setup with the name of “Frito‟ Assembly Line” (A/L) which has control on each & every operation of the production. Our Assembly Line has following characteristics as:  This Line provide 1250,000 units production per year  Daily 9 Hours working time  This Production Capacity will may be enhance by the induction of more plants  Quality Output  Efficient use of inputs or resources  Low or no wastage  Minimum ratio of Natural Variation in the Final Output  Labor & Machinery Oriented Assembly Line  Have complete control on cost behavior of product cost  No Extra – Qualified & Experienced Labor is required
  47. 47. Section – 08: Operational Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 42 ~ C o n f i d e n t i a l For the operational practice of the Frito‟ Assembly Line, we required a huge capital & manpower but all of these costs will be no more when we get huge production with very low cost from this production process with minimum ratio of variation. Production Capacity The Production Analysis for first 5 years with relevant plant & machinery as shown in Appendix, our Frito‟ A/L has the following production capacity to fulfill the demand of the market in very easy & convenient way. Availability of Labor In the “Frito‟ Assembly Line” (A/L) for the Production Capacity of 1250,000 units annually, we have to require just 4 skilled persons without any kind of skilled labor who manage the whole Assembly Line, our production process is so simple. There is no any need to get experienced & extra – skilled labor for the production operations. We required most skilled people for the plant operations in following departments as:  Sterilizing Department  Frying Department  Masala‟s Containers  Packing to Packets Department Production Capacity Analysis Particulars Produced Units Per Hour Production - 440 Daily Production (440 × 9 hrs) 3,960 Monthly Production (3,960 × 26 days) 102,960 Bi - Annually Production (102,960 × 6 months) 617,760 Annually Production (102,960 × 12 months) 1,235,520 (with limitations) Annually Production (Estimated) 1,250,000
  48. 48. Section – 08: Operational Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 43 ~ C o n f i d e n t i a l For the Frito‟ Assembly Line, we are offering wages on daily basis for the labor and salary + wages for the four Skillman. We are providing sufficient pays to our labor for their benefits on daily basis to raise their living standards. Labor Wages & Salaries Portfolio We are providing some extra ratio wages on daily basis to or labor. It is just because we want to get work from them at their maximum level. The working hours are 9 for our production day. The A/L working timing will be fixed for each & every worker & employee as:  From 8:00 am to 1:00 pm  1 Hour Breakdown  From 2:00 pm to 6:00 pm All kind of labor affairs will be discussed in the “Frito‟s Newsletter” according to the specific time & situation. The Incharge for the Assembly Line (A/L) will be Production Manager & HR Manager who also responsible for each & every aspect of the A/L. For the proper working on the Assembly Line (A/L) following staff will be present on this deck in the working timing as: Labor Salary (monthly) Wage (daily) Working Hours Worker - N/A - Rs. 250/= 9 Hours Skillman Rs. 5000/= Rs. 150/= 9 Hours Labor Quantity Work Arena Production Manager 1 Incharge of A/L Quality Inspector 1 Quaintly Checker HR Manager 1 Incharge for Human Resource Asst. HR Manager 1 Assistant for Hr Manager Clerical Staff 1 For A/C basedmatters Skillman 4 Skill – Person for A/L Worker 15 Labor for A/L Worker 5 Helper for A/L Bottom Line Management 2 (Day & Night) Watch Man Bottom Line Management 1 Sweeper Bottom Line Management 1 Helper
  49. 49. Section – 08: Operational Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 44 ~ C o n f i d e n t i a l Production Assembly Line Raw Material Stock Banana Cutting Deptt. Sterilizing Deptt. Drying Deptt. Frying Deptt. Evaporating Deptt. Stock Outside to Firm Masala’s Containers - Saltiest - Chill Up Packing to Packets Company Stock Warehouse Master Packing All the plants in this Assembly Line have the Production Capacity of 1250,000 units per year
  50. 50. Section – 08: Operational Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 45 ~ C o n f i d e n t i a l Quality Control Frito‟ Enterprisez is “Quality Conscious” organization, for the proper allocation of quality affairs in our production process we are hiring a Food Quality Inspector for our own organizational quality affairs. He will be responsible for the quality techniques which may implement on the production operations. It is our first preference to produce minimum variation output for our customer. For the quality enhancement program, we follow those techniques which are less costly & greater beneficial for us. Quality Statement “The quality is an integral part of our commitment to world – class products. Our aim is to provide zero defected and zero variation products to our consumers” For the Quality Enhancement Program in the Frito‟ Enterprisez, we will use the Statistical Process Control (SPC). According to SPC, we will use a statistical method for separating variations from the special cause to natural cause, for the elimination of the special cause variations and minimizing the natural cause variations on the continual basis improvements in the production process.
  51. 51. Section – 09: Financial Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 46 ~ C o n f i d e n t i a l Section – 09: Financial Plan & Analysis Finance is the most important aspect of the business regardless to their qualified product or service. Without it the startup & survival of the business is impossible. The invention, discovery & execution of idea into practical are not as so much important as the Finance is important to commercialize anything. According to the Howard & Upton, “Finance may be defined as that administrative area or set of administrative functions in an organization which relate to the objectives as satisfactory as possible” For the proper execution of Frito‟ Enterprisez, Finance is the most important aspect to startup the firm and also has working capital for next 3 – 4 years to operate various matters of the business. Our total capital requirement is Rs. 225 Million with 90% return on Net Profit of the Firm to all Stakeholders. And the remaining 10% will be act as the “Saving Reserve” for the Frito‟ Enterprisez. Total Capital Requirement Our firm “Frito‟ Enterprisez” will be work under the status of “Private Limited Company” who has various partners which may invest their money and skills. The ownership title of this organization will be goes to various personalities who invested their money & experiences with us. But the general partners & owner of our business will be our investors & bankers who provide us huge money to startup this business. Following are the investors & bankers are willing to invest their money in our business as: - Investor # A – Rs. 26 Million – 26% to the total investment - Investor # B – Rs. 20 Million – 20% to the total investment - Investor # C – Rs. 15 Million – 15% to the total investment - Banker # A – Rs. 13 Million – 13% to the total investment - Banker # B – Rs. 11 Million – 11% to the total investment - Banker # C – Rs. 7 Million – 7% to the total investment - Legal Advisor – Rs. 4 Million – 4% to the total investment Total Investment Rs. 100 Million 100% to the total investment
  52. 52. Section – 09: Financial Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 47 ~ C o n f i d e n t i a l Initial Capital Requirement For the proper operations of the Frito‟ Enterprisez, we will demand capital in various 5 stages, means we will tackle the capital from all investors & bankers within 5 years to startup the business. And, within these 5 years we will also achieve our breakeven point and provide some return to our investors. All the details for the utilization of this funding is given below here, but also see the Appendix for the proper understanding each & every transaction. First Year Requirement (Initial Costs) Particulars Amt (in Rupees) Plant & Equipments 2,030,000 Office Equipments + Furniture 1,163,000 Other Fixed Costs 3,445,000 Annual Salaries Reserves 7,872,000 Wages Reserve (Rs. 146,000 × 12) 1,752,000 Promotional Budget 5,000,000 Operating Expenses Reserves 5,532,000 Raw Material Reserve 18,000,000 Working Capital 4,000,000 Preliminary Expenses 1,206,000 Total Ist Year Capital Requirement 50,000,000
  53. 53. Section – 09: Financial Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 48 ~ C o n f i d e n t i a l Return on Investment (ROI) Policy According to our Return on Investment (ROI) Policy, we will give following returns to all investors on the “Net Profit” of the firm, by deducting all the expenses & costs of the business. These returns are calculated on the investment basis of each investor/banker. According to our project data, we will give possible returns to our investors in the following manner as: Projected Rate of Returns to Investors (figures in “000”) Particular Rate of Return Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Year - 6 Year - 7 Year - 8 Year - 9 Year - 10 Investor # A 14% - 200 608 913 1,578 1,847 3,054 4,136 5,924 6,064 Investor # B 12% - 200 522 782 1,352 1,583 2,617 3,545 5,078 5,198 Investor # C 8% - 200 313 521 902 1,056 1,745 2,363 3,385 3,465 Banker # A 14% - 200 608 913 1,578 1,847 3,054 4,136 5,924 6,064 Banker # B 12% - 200 522 782 1,352 1,583 2,617 3,545 5,078 5,198 Banker # C 10% - 200 435 652 1,127 1,320 2,181 2,954 4,232 4,332 Legal Advisor 3% - 200 130 196 338 396 654 886 1,269 1,299 CEO/Chairman 10% - 200 435 652 1,127 1,320 2,181 2,954 4,232 4,332 Coordinator 7% - 200 304 456 789 924 1,527 2,068 2,962 3,032 Savings 10% - 200 435 652 1,127 1,320 2,181 2,954 4,232 4,332 Owner Preference %age Investment Return on Investment (%) Investor # A 26% 14% Investor # B 20% 12% Banker # A 15% 14% Investor # C 13% 08% Banker # B 11% 12% Banker # C 7% 10% Legal Advisor 4% 3% CEO/Chairman Skilled Base 10% Coordinator Skilled Base 7% Company Savings (for future concerns) 10% Total 100% + Skills 100%
  54. 54. Section – 09: Financial Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 49 ~ C o n f i d e n t i a l CVP Analysis According to the Cost, Volume & Profit (CVP) Analysis, we will achieve our breakeven point within the time period of 3 – 4 years. After the achievement of breakeven point, our each unit has the profitability margin of 45%. When we will exclude all expenses from this ratio then may we will have 30% for the distribution of return to investors. And we also has 5% as “Saving Reserve” for the Frito‟ Enterprisez as “Ploughing – Back Profit” which refers the use of business profit for its development. This is the best one strategy to expand the business without any kind of debt or external financing. Product Variable Cost Schedule Particular For Mini - Pack For Midi - Pack Weight 30 Grams 65 Grams Basic Raw Material 1.75 3.70 Banana Cutter Deptt. 0.00 0.00 Sterilizing Deptt. 0.70 1.90 Drying Deptt. 0.00 0.00 Frying Deptt. 1.00 1.70 Evaporating Deptt. 0.15 0.50 Masala's Deptt. 0.75 1.60 Packingto Packets 2.50 3.75 MasterPacking 0.50 1.00 Total Variable Cost 7.35 14.15 Carriage Expenses 0.50 0.50 Selling Commission 0.50 0.50 Fixed Cost Reserve - FCR 1.00 1.00 Total Cost / per unit 9.35 16.15 Firm'sProfit 7.65 12.85 Trade Price (TP) 17.00 29.00 Distributor Margin 1.50 3.00 Retailer Margin 1.50 3.00 Retail Price (RP) 20.00 35.00 (All the given belowratios are calculated according to the (TP) Total Cost Ratio 43.24% 48.79% Contribution Margin Ratio 56.76% 51.21% Profitability Ratio 45.00% 44.31%
  55. 55. Section – 09: Financial Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 50 ~ C o n f i d e n t i a l For the achievement of breakeven, we have, Break – Even Units = 3,265,307 units Break – Even Units = 3,300,000 units (EST.) According to Frito‟ Assembly Line (A/L), the breakeven point will be achieve very soon due to our high production capacity with low per unit cost as: Break – Even Time Period = 2.64 years (32 months) According to our CVP Analysis, we will achieve our breakeven after 32 months from the sale of first unit, if we sale 1,250,000 units each year estimated. In our common practice, we will achieve the breakeven easily maximum in 3 years because we have unique trend product for the market with reasonable price which have high profitability margin for us. In our common observation, we have 45% average profit on each unit which sale down in the market after the achievement of the breakeven stage of the business. This is investor attracting calculations which are easily possible in the Food Industry.
  56. 56. Section – 09: Financial Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 51 ~ C o n f i d e n t i a l Projected Income Statement (Figures in “000”) Particular Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Year - 6 Year - 7 Year - 8 Year - 9 Year - 10 Sales 25,900 33,300 42,550 48,100 57,350 74,800 94,600 113,300 143,264 145,596 CGS 7,525 9,675 12,363 13,975 16,663 25,840 32,680 39,140 49,491 50,297 Gross Profit Margin 18,375 23,625 30,188 34,125 40,688 48,960 61,920 74,160 93,773 95,299 Selling Commission 350 450 575 650 775 850 1,075 1,288 1,628 1,655 Selling Expenses 350 450 575 650 775 850 1,075 1,288 1,628 1,655 FCR 800 1,200 1,500 1,400 1,300 1,600 1,800 2,575 3,256 3,300 Net Operating Income 16,875 21,525 27,538 31,425 37,838 45,660 57,970 69,010 87,261 88,690 Salaries 7,872 7,872 7,872 7,872 7,872 16,404 16,404 16,404 16,404 16,404 Operating Expenses 5,532 5,532 5,532 5,532 5,532 7,236 7,236 7,236 7,236 7,236 Promotional Expenses 5,000 2,500 2,500 1,700 2,061 8,000 8,000 8,000 8,000 8,000 Depreciation 332 315 300 285 270 1,045 1,045 1,045 1,045 1,045 Financial Charges 10,125 12,125 10,125 10,125 10,125 10,125 10,125 10,125 10,125 10,125 Net Profit (before Tax) (1,986) (1,819) 6,209 9,311 16,099 18,850 31,160 42,200 60,451 61,880 Excise Duty (298) (273) 931 1,397 2,415 2,828 4,674 6,330 9,068 9,282 Sales Tax (298) (273) 931 1,397 2,415 2,828 4,674 6,330 9,068 9,282 Net Profit (1,390) (1,274) 4,346 6,518 11,269 13,195 21,812 29,540 42,316 43,316 Investor Returns (1,251) (1,146) 3,912 5,866 10,142 11,876 19,631 26,586 38,084 38,985 Saving Reserve (139) (127) 435 652 1,127 1,320 2,181 2,954 4,232 4,332
  57. 57. Section – 09: Financial Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 52 ~ C o n f i d e n t i a l Projected Balance Sheet (Figures in “000”) Particular Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Year - 6 Year - 7 Year - 8 Year - 9 Year - 10 Fixed Assets Total Fixed Assets 6,638 6,306 5,991 5,691 5,406 14,595 13,550 12,505 11,460 10,415 Less - Deprecation (5%) 332 315 300 285 270 1,045 1,045 1,045 1,045 1,045 Total Fixed Assets Value 6,306 5,991 5,691 5,406 5,136 13,550 12,505 11,460 10,415 9,370 Current Assets Operating Expenses 5,532 5,532 5,532 5,532 5,532 7,236 7,236 7,236 7,236 7,236 Promotional Budget Reserve 5,000 2,500 2,500 1,700 2,061 8,000 8,000 8,000 8,000 8,000 Salaries Reserve 7,872 7,872 7,872 7,872 7,872 16,404 16,404 16,404 16,404 16,404 Wages Reserve 1,752 1,752 1,752 1,752 1,752 5,340 5,340 5,340 5,340 5,340 Working Capital 4,000 344 844 144 783 1,561 200 200 200 200 Raw Material Reserve 18,000 18,000 18,000 18,000 18,000 40,000 40,000 40,000 40,000 40,000 Stock & Spares 9,913 12,675 15,750 10,213 6,988 22,952 29,184 28,956 18,377 6,992 A/C Receivables 16,835 21,645 27,658 36,265 47,278 57,620 71,490 83,645 93,122 94,638 Banked Cash 20,938 35,109 63,511 143,095 185,009 157,548 233,627 299,213 391,117 470,775 Goodwill 852 580 890 1,021 1,589 1,789 2,014 2,546 2,789 3,045 Total Assets 97,000 112,000 150,000 231,000 282,000 332,000 426,000 503,000 593,000 662,000 Capital Equity: Induced Capital 60,000 96,000 132,000 167,000 203,000 291,000 368,000 445,000 522,000 599,000 Profit for the Year (1,390) (1,274) 4,346 6,518 11,269 13,195 21,812 29,540 42,316 43,316 Business Draws - (2,000) (2,100) (2,500) (2,400) (2,300) (2,100) (2,400) (2,500) (2,100) Current Liabilities Long -Term Loans 35,000 15,000 10,000 50,000 62,000 18,000 24,000 13,000 10,000 16,000 A/C Payables 2,634 3,386 4,327 7,891 5,832 9,044 11,438 13,699 17,322 1,764 Various Provisions 756 888 1,427 2,091 2,299 3,061 2,850 4,161 3,862 4,020 Total Owner's Equity 97,000 112,000 150,000 231,000 282,000 332,000 426,000 503,000 593,000 662,000
  58. 58. Section – 09: Financial Plan BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 53 ~ C o n f i d e n t i a l Exit Strategy If our business will never proceed towards the profit generation then we will provide an exit way to our all stakeholders to leave the organization in reasonable & respected way in the better interest of the business community. Following some strategies are shown which we will provide in case of loss in the business as:  Sale of Business to any Heavy Weight of Snacks Industry with Product Formula  To merge “Frito‟ Enterprisez” with any other Industry related Firm  Bank – Raptly Slip to our all stakeholders
  59. 59. Section – 10: Critical Risks Factors BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 54 ~ C o n f i d e n t i a l Section – 10: Critical Risks Factors  Management Risks  Production Wastage  Labor Conflicts  Low Coordination  Leg Pooling Environment  Conflicts in Board of Directors  Conflicts in Directors & Investor/Banker  Low Level Management Problems  Marketing Risks  The Market – Breakdown  Any Market Crash  Lays – As Competitor  Conflicts with Distributors  Decline in the Industry  Sudden Change in Trend  Operating Risks  Wastage During the Production  Low Quality of Banana‟s  Conflicts with Suppliers  Less Coordination in A/L  Less Working Environment in A/L  Conflicts b/w A/L Staff
  60. 60. Section – 10: Critical Risks Factors BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 55 ~ C o n f i d e n t i a l  Financial Risks  Less Capacity for Fulfill the Demand in first 5 years  Financial Crack Down in Market  Political Instability  Law & Order Instability  Extra Money Utilize for Quality Enhancement  High Wastage Dumping Cost  Energy Crisis  Lays – Financial Take Over  Intellectual Property  Govt. Banned Policies  Decline in Goodwill by Competitor  Stolen of Trade Secrets  Legal Copy of Copyrights  Public Rules & Regulations  Other Risks  High Taxation  Inflation Trends in the Market  Decline in the Value of Money  Rising Prices of Raw Material  Govt. Food Department Conflicts  Appendix  10 Years Capital Requirements
  61. 61. Section – 11: AppendiX BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 56 ~ C o n f i d e n t i a l Section – 11: AppendiX Consumer Segmentation We get many advantages from this survey research as its flexibility – which we can use our research & their results in producing so many other products which will may provide us much value in the future. The market segmentation in our market is like this: National Marketing Strategy This strategy will be implemented by the mutual concerns of all the members to board of directors & other heads of various departments, according to the larger interest of the Frito‟ Enterprisez. This strategy will be valid for the national – level not for any specific area like others. The implementation time for this marketing plan will be minimum 8 years to the proper initial launching of our product in any specific area. Before to the time period of 8 years, this strategy will never be implementable. Under this strategy, we will target to our distributors not retailers because the profit margin for retailers will be same as like in previous “General Marketing Strategy”. According to the Discount Package, we will provide Rs. 1.5/= on Mini – Pack & Rs. 3/= on Midi – Pack, on each unit without any kind of carriage expenses. And, distributor will provide Rs. 1.5/= on Mini – Pack & Rs. 3/= on Midi – Pack, on each unit to retailer without any kind of carriage expenses. All the distributors & retailers carriage expenses will be bear by Frito‟ Enterprisez. Under the Free Scheme, we will provide 2 Free Cartons with 20 Mini – Pack Cartons & 2 Free Cartoons with 25 Midi – Pack Cartoons to distributor except from the benefit of Discount Package. Under the Extra – Benefits Allowance, we will offer following this to each distributor as our authorized dealer in the specific area, which re – jurisdiction is allocated by our Marketing Manager.  All the expenses of carriage till the delivery in the hands of the distributor & retailer  He have ability to demand sufficient stands according to their requirement  He have ability to demand enough promotional material as their requirement  All the advertisement expenses will be bear by the firm Geographic Launched in all main cities of Pakistan Demographics Age Gender Family Life- Cycle Income Occupation Education 5 – 25 as core target market Male, Female. Young, Single, Children, New couples. Pak Rs. 25000 College and School going students. Prep – Masters Psychographics Social Class Life-Style Personality Middle, Middle Upper, Upper class. Social, Food Lover , Sporty Extrovert, Complaint Behavioral Benefits User Rates Loyalty Status Readiness Stage. More material, Instant gratification, Good taste Light, Mediumand heavy users. None, medium and strong as well. Unaware, informed, present user.
  62. 62. Section – 11: AppendiX BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 57 ~ C o n f i d e n t i a l  Firm will allocate a sufficient balance for the retailers as their Display Allowance which given on the behalf of the distributor  The Usage of Display Allowance is in the hands of distributor with specific evidence  The Firm will provide 2% extra discount to those distributor who will continue their working relations with us since from first day to the establishment of distribution network in the specific jurisdictions.  The Marketing Manager have ability to give 0.5% to 1.5% extra discount to any distributor on the behalf of their huge delivery & repeat sales behavior If we conduct any “Spot Activity” under the National Marketing Strategy for consumers then we will provide him 25% discount on the retail price. This spot activity must be sponsor by Frito‟ Enterprisez just on the behalf of our distributor who gain the profit 5% of the total sales in this spot activity as their profit margin. For the conduction of spot activity, our Marketing Manager will manage whole campaign. This strategy will be valid for minimum 10 years after their first day to implementation, and after this time period, Firm‟s officials have ability to change this strategy according to the new trends of the market. Future Prospects For the future concerns, we are very familiar that our production capacity should enhance to capture the market under “Twice Production Strategy”. For this purpose, we will enhance our production capacity till double after 5 years to launching a product. Our plant & machinery equipments are not costly as like other firms, so due to this benefit we will easily double our production within next 6 years. Now we will in condition to produce 1250,000 units annually, but with the twice enhancement in production capacity, we will produce 2500,000 units annually under the program of “Twice Production Strategy”. This figure will also generate our profit margin at high level without any kind of high fixed cost on the firms‟ profitability because for this purpose, we have the reserve of “Fixed Cost Reserve” (FCR). By Twice Production Strategy, our resources & labor cost will also raise up. For this production concern, we have high profitability margin and also the reserve of expenses / operations of factory. We are very hopeful that our finance will never create any problem in our business. Production Capacity Analysis Particulars Produced Units Per Hour Production - 900 Daily Production (900 × 9 hrs) 8,100 Monthly Production (8,100 × 26 days) 210,600 Bi - Annually Production (210,600 × 6 months) 1,263,600 Annually Production (210,600 × 12 months) 25,527,200 (with limitations) Annually Production (Estimated) 2,560,000
  63. 63. Section – 11: AppendiX BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 58 ~ C o n f i d e n t i a l Capital Requirement / Capital Flow of Ten Years First Year Requirement (Initial Costs) Particulars Amt (in Rupees) Plant & Equipments 2,030,000 Office Equipments + Furniture 1,163,000 Other Fixed Costs 3,445,000 Annual Salaries Reserves 7,872,000 Wages Reserve (Rs. 146,000 × 12) 1,752,000 Promotional Budget 5,000,000 Operating Expenses Reserves 5,532,000 Raw Material Reserve 18,000,000 Working Capital 4,000,000 Preliminary Expenses 1,206,000 Total Ist Year Capital Requirement 50,000,000 Second Year Requirement Particulars Amt (in Rupees) Annual Salaries Reserves 7,872,000 Wages Reserve (Rs. 146,000 × 12) 1,752,000 Promotional Budget 2,500,000 Operating Expenses Reserves 5,532,000 Raw Material Reserve 18,000,000 Working Capital 344,000 Total Ist Year Capital Requirement 36,000,000 Third Year Requirement Particulars Amt (in Rupees) Annual Salaries Reserves 7,872,000 Wages Reserve (Rs. 146,000 × 12) 1,752,000 Promotional Budget 2,000,000 Operating Expenses Reserves 5,532,000 Raw Material Reserve 18,000,000 Working Capital 844,000 Total Ist Year Capital Requirement 36,000,000
  64. 64. Section – 11: AppendiX BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 59 ~ C o n f i d e n t i a l Fourth Year Requirement Particulars Amt (in Rupees) Annual Salaries Reserves 7,872,000 Wages Reserve (Rs. 146,000 × 12) 1,752,000 Promotional Budget 1,700,000 Operating Expenses Reserves 5,532,000 Raw Material Reserve 18,000,000 Working Capital 144,000 Total Ist Year Capital Requirement 35,000,000 Fifth Year Requirement Particulars Amt (in Rupees) Annual Salaries Reserves 7,872,000 Wages Reserve (Rs. 146,000 × 12) 1,752,000 Promotional Budget 2,061,000 Operating Expenses Reserves 5,532,000 Raw Material Reserve 18,000,000 Working Capital 783,000 Total Ist Year Capital Requirement 36,000,000 Sixth Year Requirement (New - Initial Costs) Particulars Amt (in Rupees) Plant & Equipments 3,190,000 Office Equipments + Furniture 1,229,500 Other Fixed Costs 5,040,000 Annual Salaries Reserves 16,404,000 Wages Reserve (Rs. 445,000 × 12) 5,340,000 Promotional Budget 8,000,000 Operating Expenses Reserves 7,236,000 Raw Material Reserve 40,000,000 Working Capital 1,560,500 Total Ist Year Capital Requirement 88,000,000
  65. 65. Section – 11: AppendiX BANANA CRAZEE = A Product by “Frito’ Enterprisez” ~ 60 ~ C o n f i d e n t i a l Seventh Year Requirement Particulars Amt (in Rupees) Annual Salaries Reserves 16,404,000 Wages Reserve (Rs. 445,000 × 12) 5,340,000 Promotional Budget 8,000,000 Operating Expenses Reserves 7,236,000 Raw Material Reserve 40,000,000 Working Capital 20,000 Total Ist Year Capital Requirement 77,000,000 Eight Year Requirement Particulars Amt (in Rupees) Annual Salaries Reserves 16,404,000 Wages Reserve (Rs. 445,000 × 12) 5,340,000 Promotional Budget 8,000,000 Operating Expenses Reserves 7,236,000 Raw Material Reserve 40,000,000 Working Capital 20,000 Total Ist Year Capital Requirement 77,000,000 Ninth Year Requirement Particulars Amt (in Rupees) Annual Salaries Reserves 16,404,000 Wages Reserve (Rs. 445,000 × 12) 5,340,000 Promotional Budget 8,000,000 Operating Expenses Reserves 7,236,000 Raw Material Reserve 40,000,000 Working Capital 20,000 Total Ist Year Capital Requirement 77,000,000 Tenth Year Requirement Particulars Amt (in Rupees) Annual Salaries Reserves 16,404,000 Wages Reserve (Rs. 445,000 × 12) 5,340,000 Promotional Budget 8,000,000 Operating Expenses Reserves 7,236,000 Raw Material Reserve 40,000,000 Working Capital 20,000 Total Ist Year Capital Requirement 77,000,000

×