Business plan sample on furniture

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Business plan sample on furniture

  1. 1. Executive SummeryThe new furniture company is Pacific furniture. It will start in 2013 withquality full furniture in various designs. We take a big plan which is for fiveyear. And we hope we can establish our brand within 3 years and till that timeour profit will reach 1.5 crore tk. We hope we can earn 1.5 laks within oneyear. We produce and sale five types of furniture like bed sheds, sofa, diningtable etc. We use a big amount for our establishment in advertisement andpromotion. We spent more than 10 lak taka for advertisement. And for thatwe hope we can establish our brand name within three year. Ouradvertisement main area is tv and radio channels. We launch new product on4.5 year later when our company will stay in maturity stage of product lifecycle. Our main target area is Dhaka, but after this we will cover our country.We promise that we will provide quality full furniture for our customers. 1 Page
  2. 2. Description of Bangladesh Furniture IndustryThe Bangladesh furniture industry is one of the most promising growth sectorswith high export potential. According to a Household Income and ExpenditureSurvey of 2005, the domestic consumption growth rate is around 20% andexport markets are almost entirely untapped. There are approximately 40,000furniture SMEs all over the country, employing around 180,000 people,turnover is in excess of BDT 100b (GBP 1b). Currently dominated bythousands of small workshops, the furniture sector is in a transition phasetowards industrialization. Simultaneously, there is a small but growingsegment of larger firms who are gradually entering the export market.Nevertheless, the furniture sector is struggling to reach its full potential due tovarious factors in habiting its growth. Inadequate supply of productiontechnology and consultancy services, limited access to quality inputs, absenceof skilled workforce and limitations in local and international marketing aresome of the main problem areas. The biggest challenges for export include:government recognition as a potential export sector, limited export orderprocessing facilities, lack of credibility in international markets,uncoordinated association activities and absence of effective initiatives forfacilitating foreign direct investment. Leading companies of Furniture IndustryBangladeshi leading furniture companies are given below- Akhtar furnisher’s ltd. Aftab furniture’s ltd. Otobi ltd. Hatil furniture ltd. Business DescriptionPacific furniture will launch on year of 2013. Pacific Furniture manufacturesbasic, durable home and office furnishings. Principal among these is a line ofhardwood desks, dressers, bed sheds, dining tables, chairs, and homeentertainment centers. The companys typical retail and service customersinclude upper-middle class residents of the residential area who seek tomaximize the purchasing power of the interior decorating budget. Thesecustomers are attracted to Pacific Furniture because it provides qualityproducts, and many are second generation clients. These loyal customers haveconsistently provided Pacific Furniture with annual sales of over 30,00,000tk 2in each year. Pacific Furniture intends to expand its customer base in the Pageresidential area by aggressively promoting the Additional value of consulting
  3. 3. services it now provides and by capitalizing on its reputation moreextensively. A complete retraining of the sales force coupled with significantlyincreased advertising expenditures will accomplish this objective. COMPANY PROFILE Name • Pacific Furnitur ltd. • Office: 72, Mirpur Dhaka-1208 Address • Factory: Gazipur, Dhaka Website • www.pacificfurniture.com Form of • Partnership Business Product Type • Wooden Furniture Brand Name • Pacific • Attractive Brand Logo, Quality Physique Protective Culture • Corporate Image • To creat clear brand Image, demand Mission by ensuring Quality, Availability & Rich Communication With Customers Our logo 3 Page
  4. 4. Our SloganModern Living, “Create your own fashion”. Company visiting card Nature of businessWe form our business as a “partnership” business. The types of ourbusiness are Manufacturing Furniture’s, Distributor/ Wholesaler. Therewill be 7 partners in their respective posts. 4 Page
  5. 5. Partners Visiting cards: 5 Page
  6. 6. Page 6
  7. 7. Size of BusinessThis business will produce & provide consumer product and organize mediumsize business. Initially we will cover the 1 division of the country but ourprospect will be whole of the country. Statement of startup FinanceInitial financing requested of the company is 2, 00, 00,000 taka loan to bepaid off over five years from Dutch Bangla Bank Ltd. This debt will coveroffice space, office equipment, and for supplies two leased vans, advertisingand selling cost. The partners provided 3, 00, 00,000 taka jointly. So, the totalcost of the project estimated at 5, 00, 00,000 taka. ObjectivesObjectives of Pacific furniture’s are given below- 1. Establish relationships with designers of unique, fine furniture 2. Establish relationships with quality wholesale suppliers of lumber and hardware. 3. Establish our name and image in the community as a specialty manufacturer of custom designed furnishings within the next three years 4. Focus our product in various way like advertising, promotion, fair 7 etc and increase our sales and make profit to 1,50,000tk by year. Page
  8. 8. 5. To increase sales at least 1,40,00,000tk by the third year of operation. 6. To sell some different designs furniture’s. Keys of successKeys of success are given below- 1. Business will be located on major city shopping malls, residential areas, and college and university hostel areas. 2. We need to find the quality-conscious customer in the right channels, and we need to make sure that customer can find us. 3. We cant afford to ship fully-assembled desks, but assembly must be so easy and automatic that it makes the customer feel better about the quality, not worse. 4. We committed to quality full wood, quality full workmanship, 8 quality full design for customers. Page
  9. 9. 5. Pacific furniture will employ local craftsmen who have plied their trade for decades. 6. By using only the finest hardwoods available, our craftsmen ensure that our furniture will last for generations to come. MissionPacific furniture helps to decorate home in a very attractive designs and ithelps to create pleasant, productive office environments with well-designedfurniture that incorporates new technology into the classic office mode, inwhich real people can work happily. Also in home decoration pacificfurniture help to spent a happy moment with all family persons.We are sensitive to the look and feel of good wood and fine furniture as wellas to high-powered personal computing. We always provide the best possiblevalue to our customers who care about quality office environments, homedecorations, and we want you spent with us to be well spent. Future outlook and trendsWe mainly want to produce furniture. It is a partnership business. Initially weprepare our business plan for five years. Next five year we target that wecapture 6% of total market share. When our company will start, only oneproduct available in five types, we produce at that time. We wish to achieve aso much customer and consumer response in 1 year. It wills our betterment ofour company. We get best wishes to our target customer and also the mind ofthe customer will obviously great beliefs of our products. Because we mentionthat, our product is the best product in Bangladesh. We expect the sales willbe in next year approximately TK 1 corer. Our production cost is TK 2, 70,50,000. The return on investment is 20% expected 9 Page
  10. 10. GoalsOur main goal is to provide good and best quality furniture to the customers.As “Pacific” is a new company, so our goal is also to raise the brand value of“Pacific” and creating a good number of loyal customers. FocusWe concentrate on the continuous improvement of the product according tothe customer needs. So we specifically follow the product concept. Our product descriptionOur products list is given below- Bed sheds Almira Sofa Dining table Dressing tableBed sheds:Pacific furniture made Bed Sheds in various types and various design. The BedSheds are very much attractive. See some sample of Pacific furniture Bed Shedsin below- 10 Page
  11. 11. Almira:Pacific furniture produces Almira by pure wood which is collect from forest.And the Almira’s are very much attractive and nice designed. Some samplesare given below-Sofa:The main and most used home decorates furniture is Sofa. There are severaldesigned sofa are also produced by Pacific furniture. This sofa’s are used foroffice and home decoration. Some designs are given below- 11 Page
  12. 12. Dining table:Another main and most used home decorates furniture is Dining table. Thereare several designed Dining table are also produced by Pacific furniture. Somedesigns are given below- 12 Page
  13. 13. Dressing table:Most used other furniture is Dressing Table. There are several designedDressing Tables are also produced by Pacific furniture. This Table’s are usedfor home decoration. Some designs are given below- 13 Page
  14. 14. Product qualityPacific Furniture brings quality in life. Their products contain followingqualities:  Performance. Will show well performance.  Features. Good features.  The Name. A name that contains quality  Reliability. Each person use will results in the same satisfaction.  Serviceability. The service system efficient, competent, convenient. Market Analysis 14 Page
  15. 15. Market segmentationGeographical Segmentation:The market is segmented according to geographic criteria like,  Nations: Our customer’s nation will be Bangladeshi.  Regions: Dhanmondi, New Market, Azimpur, Panthopoth, Green road, Farmgate, Mirpur, Jatrabari, Motijhil and Mohammedpur. 15 Page
  16. 16.  Cities: At first we cover only Dhaka city after that we cover other cities which is beside of Dhaka. The other cities are- Narayanganj Comilla Chittagong Sylhet Bagherhat Bogra Maymensing Khulna etc  Zip codes: The zip codes are 1205,1209,1000,1206, 1100, 1208 etc.Demographical Segmentation: Demographic segmentation consists of dividing the market intogroups based on variables such as  Age: The age range of the customers are 2-5year old, 20-30years old and 40-70years old people.  Gender: The gender of the customers are Male and Female.  Family size: In Dhanmondi and its side areas families are maximum small family. Our targeted families are Small family and 16 Page Big family
  17. 17.  Income: The customers income level will be 10,000tk to 30,000tk per month 30,000tk to 50,000tk per month 50,000tk to 70,000tk per month 70,000tk to 1,00,000tk per month Occupation: Occupation is not clearly defined for the target market of our product. But the customers are Job holder and Business person Education: The education level of the target customer is HSC Higher graduation like BBA & MBA PHD and others. Religion: The religion of the most customers is Muslim. There is also having some other religion peoples. The religions of our customer are Muslim Hindu Buddhist Christian And others Nationality: Most customers nationality is Bangladeshi but there have also some other nationality people like American English Nigerian etc. 17 Page
  18. 18.  We have targeted for the upper part of the lower class, middle class, upper middle class, and lower part of the upper class of the society. Middle Class Upper- Middle Class Some portion Upper class Psychographic Segmentation: Psychographics is the science of using psychology and demographics tobetter understand consumers. By Psychographic segmentation we segment ourconsumers according to their lifestyle, personality, values. Aliens within thesame demographic group can exhibit very different psychographic profiles. Target marketAs a manufacturer supplying to distributors, our target market would befurniture distributors of high quality product. The income level of the averageclient seeking high quality furniture will be in the middle and upper classrange. Marital status will not make a difference. Education level will becollege graduates, professionals, and some skilled trades. Many of thesecustomers are returning to Dhanmondi area after living elsewhere and yearnfor a simpler life for their family. Many others are transferees with largecorporations, having come from more expensive living areas of the country.Therefore we feel we can target this niche for our direct sales outlet.As we expand into the office and industrial furniture markets, we will targetcorporations, hospitals, and businesses of all sizes. The end user for ourproduct will be those who appreciate fine workmanship, durability, qualitycraftsmanship and fine wood; the discriminating buyer who is selective anddoes not want a typical, mass-produced product. Our customers will nothesitate to pay for top quality and workmanship that will last for decades,even centuries that will become heirlooms.Our initial primary market will be small independent furniture retailerswithin a 250 mile radius of the Dhanmondi, which will include such major 18markets as New Market, Azimpur, Panthopoth, Green road, Farmgate, Mirpur,Jatrabari, Motijhil and Mohammedpur. We will target them until we are able Pageto craft enough quality furniture to distribute to larger furniture chains.
  19. 19. Target market by categories:  Age: The age range of the customers are 2-5year old, 20-30years old and 40-70years old people.  Gender: The gender of the customers are Male and Female.  Family size: In Dhanmondi and its side areas families are maximum small family. Our targeted families are Small family and Big family  Income: The customers income level will be 10,000tk to 30,000tk per month 30,000tk to 50,000tk per month 50,000tk to 70,000tk per month 70,000tk to 1,00,000tk per month  Occupation: Occupation is not clearly defined for the target market of our product. But the customers are Job holder and Business person  Education: The education level of the target customer is HSC Higher graduation like BBA & MBA PHD and others. 19  Religion: The religion of the most customers is Muslim. There is also having some other religion peoples. The Page religions of our customer are
  20. 20. Muslim Hindu Buddhist Christian And others  Nationality: Most customers nationality is Bangladeshi but there have also some other nationality people like American English Nigerian etc.  We have targeted for the upper part of the lower class, middle class, upper middle class, and lower part of the upper class of the society. Middle Class Upper- Middle Class Some portion Upper class Competitive comparisonWithin our niche we have two significant competitors, Akhter Furniture andHatil Furniture. Akhter is a bigger company but like us, operating mainly inour same niche, whose marketing is better than its product quality. Akhterand Hatil furniture are the market leader and we are the follower because weare new in this market. But to stay in market we use our quality to attract ourconsumers.Competitors profile: Our competitors profile are given below- 1. Hatil Complex Ltd. is a leading doors and furniture 20 manufacturer in Bangladesh. Hatil has been established in 1989 following the footsteps of H.A. Timber Industries Ltd. - a Page
  21. 21. company running from 1966 with reputation in timber processing sector. Strengths: Good marketing, strong advertising budget, relationships with distributors, strong direct sales. Weaknesses: The product is more standardized, and of lesser quality, with less sense of design and materials and workmanship. 2. Akhtar Furnishers Ltd (AFL) started their business in1976. Akhtar Furnishers Ltd (AFL) has been committed to the ideal of creating furniture of such impofessionals who sell and deliver it. Today, every employee feels it is a brand created by them, and each of us is dedicated to earning your confidence and building on this tradition of excellence. Strengths: Financial backing, product quality. Weaknesses: AFL has not seemed to understand our niche, where to find the buyers, how to market as a specialty niche instead of the more traditional furniture channels.Other competitors are Ahmed furnishers, anarkoli furnitures, antarafarnishers, anupam furniture, asha furnitures, aver green furniture etc 21 Page
  22. 22. Overall Marketing StrategyWe focus on a special kind of customer, the person who wants very highquality office furniture customized to work beautifully with moderntechnology including personal computers, scanners, internet connections, andother high-tech items. Our customer might be in larger corporations, small ormedium business, or in a home office with or without a home-office business.What is important to the customer is elegance, fine workmanship, ease of use,ergonomics, and practicality.Our marketing strategy assumes that we need to go into specialty channels toaddress our target customers needs. The tie-in with the high-end qualitycatalogs like Sharper Image is perfect, because these catalogs cater to our kindof customers. We position as the highest quality, offering status and prestigelevels of purchase.The product strategy is also based on quality, in this case the intersection oftechnical understanding with very high quality woodworking andprofessional materials, and workmanship.Our most important competitive edge is our assembly strategy, which is basedon interlocking wood pieces of such high quality that assembly is not only apleasure for our customers; it is actually a feature that enhances the sense ofquality. 22 Page
  23. 23. Our marketing objectives  Maximize profit marginObjective of the Pacific Furniture is to provide high quality product and satisfyour customer by our product. We will take premium price to our customerother than our competitors. Thus we will try to maximize our product.  Quality leadershipThe main objective of Pacific Furniture that its responsibility to provided bestquality what we will promise to our customers. Pacific Furniture sets mainobjective to provide quality products that satisfy the customer need and theirrequirement. So Pacific Furniture will deliver the quality product.  Long relationships with customerWe will try to provide superior value to our customer what we have promisedthrough advertising. So we believe the customers will be loyal to our brandand build long term relationships.  Communication objectiveWe will use different sources to attract their customer. The objective of PacificFurniture is to create awareness in our customer about our new product.Pacific Furniture also tells their customer that they provide pure woodenfurniture to their customers.Strategy marketing objective  To build unique distribution system that provides ubiquity at low cost.  To build high speed, efficient and vertical integrated manufacturing capabilities to gain low cost advantage.  To increase advertisement activities. 23  To redesign packaging to a more attractive and familiar. Page
  24. 24.  To make innovation in product so that it become more portable and in convenience oriented form.  To improve product quality as ever provide  To maintain positive and steady growth each month.  To experience an increase in new customers i.e. we have to ensure that our products have a high trial rate which will help us to turn these new customers into long term customers.  Generate brand equity at the markets we are catering to as well as within the supplier and distribution networks. PositioningPacific Furniture handcrafts furniture from selected and custom designs. Bydoing custom design work, we have the ability to meet any specialrequirements of customers be it design, wood, color or type of construction.Our personalized service provides our customers with their own personalspecialist. Our personal specialist will maintain a database of their client’svaluable information such as client name, personal likes and dislikes, wish listinformation, past purchases including dates, price, and style, serial numbersand any other data which will assist our customer in target their marketingefforts. We also keep a photo inventory for insurance purposes as a part of ourcustomer service. Many of our customers have returned to a smallercommunity and have purchased expensive homes and wish to furnish themwith exquisite furnishings which they can pass on to their children, familyand friends. They have a higher education background and are employed bylarge companies. They use the internet frequently and appreciate theconvenience of having access to shopping and personal records online.Our main retail competitor, Akhtar furnisher’s ltd, is located in New Elephantroad, 25 minutes away. We plan to beat this competition by offering morevariety and having a personal service. Our other competition is from chainstores, some of which we plan to supply as a wholesaler. 24 Page
  25. 25. Risk and OvercomeOur main risks are given below- Raw material: Some time our supplier will not capable to supply us raw material and it’s a big risk for us. And for that we will buy it from our local wood seller who are sale wood locally. Strike: The workers will strike from their work. On that time we will take an emergency action to cool down them and back them to work. Advertisement problem: Some time we will face Advertisement problem and for that problem our Marketing will slow down. On that time we will make some campaign for recover that risk. Poor management: Poor management also a risk for our business. If we see that we have poor management then we will recover it and increase our management strength. Natural disaster: For uncertainty of Natural disaster we stock some wood for our future production and recover this type risk. PricingOur products prices are given below by categorically:- 1. Bed sheds: Single Bed sheds 9000tk Semi double bed sheds 14000tk Double bed sheds 20000tk 2. Almira : Small 12000 Medium 20000 25 Big 25000 Page
  26. 26. 3. Sofa: Single 8000 Long 18000 Set 40000 4. Dining table: Table with 4 chares 13000 Table with 6 chares 20000 5. Dressing table: Small 8000 Medium 15000 Large 23000 DistributionIn the next five year we want to increase our sell 25.45%, for this we have toincrease our main distributor’s number in the remote area of Bangladesh. Wehave to evaluate their capacity and then try to sell our product in theirdistribution network more frequently. We have a plan an action program forour distributor’s sales persons.We are new in this market but still we have already covered Dhaka and someother districts by our strong distribution network. We have divided Dhaka andother districts into some operational zones and each zone has its separatedistributor.Beside this we are trying to cover all the districts and some of the majorThanas by appointing new distributors. 26 Page
  27. 27. Following is the flowchart of our distribution network: Factory Super Shops Distributors Final consumer Final consumerA distribution strategy defines how you are going to move products from pointof creation to points of consumption, in a cost-effective manner. Theeffectiveness of distribution coverage and practice is of paramount importancein achieving the desired furniture sales. LocationOur company’s factory will locate in Gazipur. And our outlets are located inDhanmondi, New Market, Azimpur, Panthopoth, Green road,Farmgate,Mirpur, Jatrabari, Motijhil and Mohammedpur. 27 Page
  28. 28. The advantage of this location are given below- o Raw materials: We collect our raw materials like wood from various areas for the easy accessibility and less barriers. The transport facility is good for truck and Lorries. The areas are- Sundarban Khagrachari Chittagong Bandorban o Place of Factory establishment: Our factory will locate in Gazipur because there have easy and low cost labor accommodation, easy transportation to Dhaka and easy transportation of raw materials from Sundarban. o Required skills with work force availability: Gazipur is suitable for getting much labor in low cost. And for that reason we will locate our factory to Gazipur. o Ecological requirement: 28 Gazipur is stay beyond the prohibition of ecological disasters like flood, earthquake etc. Page
  29. 29. o Public utility: The public utilities like Electricity, Gas, Water and other security service are available here and also for this reason we will locate our factory there. o Transportation of finish goods: Gazipur is most popular for availability of delivery vehicles. And for that reason we locate our factory for easy transport of our finish goods. o Scope for expansion of our factory: Our head office will be locate in Mirpur and outlets are locate in Dhanmondi, New Market, Azimpur, Panthopoth, Green road, Farmgate,Mirpur, Jatrabari, Motijhil and Mohammedpur. And we can expand our factory to other area like Narayangonj, Savar etc. because that areas also famous for transportation affordability and customer convenience. Advertising and promotionPacific Furniture will use different sources to communicate their targetmarketing. We will use those sources on that the more customer attract likeLocal Cable, Newspapers, Billboard and when they lunch any scheme inFurniture they use pamphlets to aware their customer. Pacific Furniture willuse the channel to attract the customer and give fully information aboutFurniture through these Electronic media. As our target consumers are middleand old age people, for this reason we promotion our product to give advertisein television, radio. We also use vehicle writing method and posturing for ourproduct advertisement. 29 Page
  30. 30. We choose some media for our product’s advertising. This are- 1. Internet 2. Television 3. Radio 4. NewspaperInternet:We use internet based advertising like Facebook, Prothom-alo.com,dailykalerkantha.com, bdpratidin.com etc. In facebook and other dailynewspapers website there have so much visitor every day. And the totalamount of visitor from those website is more than 10,00,000 visitor every day.And this the most effective advertising plot for us. 30 Page
  31. 31. Television:Television is also a most popular media item. Every people of our country useit for entertainment. And it’s our platform to advertise our product. We useChannel I and Ekushey television for our advertising. CHANNEL I •Frequency- Continuous -Alernating Basis •Cost-100,000 Ekushey TV •Frenquency- Intermitted basis •Cost- 300,000Radio:Radio also a most popular media item in Bangladesh. Many people of ourcountry use it for audio entertainment. And it’s also our platform to advertiseour product. We use Radio today, ABC Radio, for our advertising. RADIO TODAY • At Somrame popular Prog • Cost-30,000 ABC RADIO • Same policy • Cost-30,000Newspapers:Most people of Bangladesh read newspaper in morning afterwake up. And for that reason we use most popular newspapers for ouradvertising. The newspapers are Prothomalo. PROTHOM ALO • 5th page- Once aweek • Cost-30,000 31 Page
  32. 32. Sales promotionOffering free samples:To promote our product we give free samples to our customers to understandour product quality. And it’s a popular promoting policy in Bangladesh.CouponsCoupons are also given to our consumers when they are come to buy ourproduct. By that coupon a customer can win an exclusive prize. And for thatcustomer will increase.Discount on sale:We give some discount on our sale for getting more customer easily.Publicity:Product launches:On the time of product launches we arrange a meeting or function for ourproduct publicity. By this type action product publicity is increased verymuch. We arrange some special events including community involvement with name of our brand. And also for that our popularity will increase. By writing articles on newspapers or magazines we can increase our publicity. By sponsor on local festival fair we can gain publicity. We can also increase publicity by attend on business fair.Company website:By our company website every one can know with us and our products. Andthey also can buy products from there. 32 Page
  33. 33. SourcingWe work with three wood suppliers, all local. CTG WoodenComplex supplies most of our oak and a bit of cherry and some otherspecialty woods. CTG Wooden Complex has been in business for as long aswe have, and has given us good service and good prices. This is a good, stablesupplier. Golden aero wooden manufacturing is a good second source,particularly for cherry and specialty woods. Weve used Dhaka wood forfilling in when either of our main two suppliers were short. We also workwith a number of specialty manufacturers for furniture fittings, draweraccessories, glass, shelving accessories, and related purchases. Although wearent a major player compared to the major furniture manufacturers, we areone of the biggest buyers of the custom materials we need. Product life cycle strategy 33 Page
  34. 34. Introduction:The product life cycle is based use to interpret product and market dynamics.At the introduction stage we launch our product, Furniture. As we are new inthe market that’s why our market is small, our sales is low, and ourcompetition is also low. For this reason we need to spend more for our productpromotion. For beginning a new business our cost per product will be high. Soour prices will also being high. For this reason first year our profit will be lowor we will face loss.Growth: Pacific furniture is serve furniture product but in the growth stagewe think our seals will increase than the introduction stage. For our strongmarketing strategy people will know about product rapidly and our sales willincrease. Here our product market is growing, our sales are high, and ourcompetition is on moderate. To compete with our competitors we have todecrease our cost how much we can. At the growth stage our profit willincrease day by day. Because in this stage we can decrease all cost of ourproduct. We will expenses more money in advertising and promotion of ourproduct and give much importance in these two sectors. So that morecustomers will be attract to our product. As our product will move towardmaturity stage, the number of competitors will increase day by day. Then itwill be challenge for us to stay in the market. In this stage we can createawareness about our product. For this reason we will be able to maximize ourproduct share.Maturity: In the maturity stage our product will reach top most level of sales.At this time our production cost per unit will be low. Number competitors willbe falling in this stage. Here our product market is large, our sales areflattening, and our competition is high. In this stage our profit will me be attop level because in maturity stage (4.6 years) we will reach break event point.In this stage our market share will be increasing and distributors will increase.To hold the market we will launch new product.Decline: In this stage our product’s sales will decrease day by day. We willexpend more for R & D. We will try to extend our product. Different problemswill be faced in this stage such as old looks. 34 Page
  35. 35. SWOT AnalysisSWOT is the combination of 4 key words, which constitutes the internal andexternal issues of a company.Strength: Strength refers to the competitive advantages and the other distinctiveCompetencies that a company can exert in the market place.Weaknesses: Weakness is constraints that hinder movements in certain directions.Opportunities: A marketing opportunity is an area of buyer need in which a companycan perform profitable.Threats: A threat is challenge posed by an unfavorable tend or development thatwould lead, in the absence of defensive marketing action, to deterioration insales or profit. 35 Page
  36. 36. A Snapshot of SWOT Analysis:Strengths WeaknessesInnovative product Lack of Brand AwarenessCompetitive Pricing Similarity of packagingStrong Distribution ChannelsOpportunities ThreatsGrowing number of customers Increased CompetitionCreation of Loyal customers Down-ward pricing pressureIncreasing customer awareness Large number of indirect competitorCost efficient Technology Economic factorRise of the brand’s value Copyright threats Duties and responsibilities of partners The responsibilities and duties of all partners are given below- Managing Director Our companies managing director will be Zia-ur-Rahman Galib. Managing Director (MD) of a company is the leader of an organization. The position of our company will be held by MD. This the highest position in an organization and have the responsibility for the success or failure of that organization. The main duties and responsibility of a MD is- Welcome new employees in the organization. Making the organization Effective -capable of doing the right things. Making the organization Innovative for doing new things. Managing all forms of incoming and outgoing communication. Responsibilities of Marketing Manager: 36 Page
  37. 37. Md. Yeasin Khan is the Marketing manager of our company. The Marketingdepartment’s works are operated by Marketing Manager. Marketingmanager’s major duties are-  Determine the eligibility of those wanting to sell at the market based on the rules established by market’s governing body. Actively recruit new producers to expand the variety or products for sale.  Collect rental fees from vendors and maintain accurate records of payment. Many markets charge a flat daily fee, while others collect fees based on a percentage of a vendor’s sales (usually between 5 and 8%)  Assign selling spaces if they are not allocated on a first‐come, first‐served basis. It is recommended to keep vendors in the same space throughout the season to avoid both vendor and shopper confusion.  Advertise and promote the market. Research suggests that freshness is one of the main motivations for buying local produce, and your image should project freshness, quality, and value. Promotions may include special events, banners, signage, radio spots, and free coverage in local newspaper.Responsibilities of R & DRafiqul Islam is the R & D manager of our company. The R & D department’sworks are operated by R& D manager. R& D manager’s major duties are-  Research for the new product idea or modify the existing one.  Eliminating cost for producing by using different method.  Design of new product process and type.  Focus on improvement, development, modification and introduction of new product, features, process.  Be up to date with new technologies, approach.Responsibilities of Production ManagerFor this position we have selected Fahima Akter Aurin. She will also organizethe production/operation department of the organization. The keyresponsibilities of this position are stated below – 37  Control the whole production process. Page
  38. 38.  Ensuring raw material is providing timely and made into finished goods effective.  Set standard and targets for each section for production process.  Monitoring the quantity and quality of raw material used and produced goods of a production line.  Strictly monitoring each stage of production.Human Resource (HR) ManagerArif Hossain is the HR manager of our company. The human resource (HR)department’s works are operated by HR manager. HR manager’s major dutiesare-  Recruiting is the main duty of a HR manager.  Arrange training programs for those who are newly selected to join the organization and also or existing employee.  See the performance of the employee.  Post advertisement in printed media, Internet or business magazines to hire new employee.  Identification of job, responsibility and duty of the organization.The Responsibility of Finance ManagerSarkar Rajibul Hasan is the Finance manager of our company. The Financedepartment’s works are operated by Finance Manager. Finance manager’smajor duties are-  Finance manager oversees the preparation of financial reports, direct investment activities, and implement cash management strategies.  Develop and implement accounting and internal control systems, standard operating procedures.  To deliver accurate and timely finance transactional processing in finance shared service centre.  A financial manager is responsible for providing financial advice and support to elements.  Formulating strategies and long-term business plan.  Developing financial management mechanisms that minimize financial risk. 38 Page
  39. 39. Key Responsibilities of AccountantsOmar faruk is the Accounts manager of our company. The Accountsdepartment’s works are operated by Accounts manager. Account manager’smajor duties are-  Prepare profit and loss statements and monthly closing and cost accounting reports.  Compile and analyze financial information to prepare entries to accounts, such as general ledger accounts, and document business transactions.  Establish, maintain, and coordinate the implementation of accounting and accounting control procedures.  Analyze and review budgets and expenditures for local, state, federal, and private funding, contracts, and grants.  Monitor and review accounting and related system reports for accuracy and completeness. Marketing Manager R & D Manager Production Manager Managing Director Human Resource Manager Finance Manager Accounts Manager 39 Page
  40. 40. Partnership AgreementFORM OF OWNERSHIPThe form of the business is “partnership” business and all the partners areresponsible for the business. The partners are jointly and severally liable for alldebts of the firm.Partnership Agreement 1. The name of our business will be Pacific Furniture Company. The factory address of the firm will be Gazipur, Dhaka and the office will be in 72, Mirpur, Dhaka-1208 2. There are 7 Partners of this company. The partners name and address is given below- Zia-ur-rahman Galib Md. Yeasin Khan Managing Director Marketing Manager Phone: 02 8645781 (Ext- 08) Phone: 02 8645781 (Ext- 07) Mobile: 01558845845 Mobile: 01685485625 Email: md@pacificfurniture.com Email: mktg@pacificfurniture.com Web: www.pacificfurniture.com Web: www.pacificfurniture.com Fahima Akter Aurin Arif Hossain Production Manager HR manager Phone: 02 8645781 (Ext- 02) Phone: 02 8645781 (Ext- 03) Mobile: 01685485625 Mobile: 017215845865 Email: production@pacificfurniture.com Email: hr@pacificfurniture.com Web: www.pacificfurniture.com Web: www.pacificfurniture.com 40 Page
  41. 41. Rafiqul Islam Sarkar Rajibul Hasan R & D Manager Finance Manager Phone: 02 8645781 (Ext- 05) Phone: 02 8645781 (Ext- 04) Mobile: 01925452157 Mobile: 01723512458 Email: rd@pacificfurniture.com Email: finanace@pacificfurniture.com Web: www.pacificfurniture.com Web: www.pacificfurniture.com Omar Faruk Accounts Manager Phone: 02 8645781 (Ext- 06) Mobile: 01821454781 Email: accounts@pacificfurniture.com Web: www.pacificfurniture.com 3. It’s a furniture business. It will produce furniture and sale them to the local market. 4. The investment amount of the each partner is same. Their total investment is 3 crore tk. And every partner gives 42,85,715tk. 5. The partners will share profit and loss equally. 6. Every partner can withdraw not more than 50,000tk every month. 7. The partners job description and the duties and responsibilities is given below:-Managing DirectorOur companies managing director will be Zia-ur-Rahman Galib. ManagingDirector (MD) of a company is the leader of an organization. The position ofour company will be held by MD. This the highest position in an organizationand have the responsibility for the success or failure of that organization. Themain duties and responsibility of a MD is Welcome new employees in theorganization. Making the organization Effective capable of doing the right 41things. Making the organization Innovative for doing new things. Managingall forms of incoming and outgoing communication. Page
  42. 42. Responsibilities of Marketing Manager:Md. Yeasin Khan is the Marketing manager of our company. The Marketingdepartment’s works are operated by Marketing Manager. Marketingmanager’s major duties are: Determine the eligibility of those wanting to sellat the market based on the rules established by market’s governing body.Actively recruit new producers to expand the variety or products for sale.Collect rental fees from vendors and maintain accurate records of payment.Many markets charge a flat daily fee, while others collect fees based on apercentage of a vendor’s sales (usually between 5 and 8%). Assign sellingspaces if they are not allocated on a first‐come, first‐served basis. It isrecommended to keep vendors in the same space throughout the season toavoid both vendor and shopper confusion. Advertise and promote the market.Research suggests that freshness is one of the main motivations for buyinglocal produce, and your image should project freshness, quality, and value.Promotions may include special events, banners, signage, radio spots, and freecoverage in local newspaper.Responsibilities of R & DRafiqul Islam is the R & D manager of our company. The R & D department’sworks are operated by R& D manager. R& D manager’s major duties are:Research for the new product idea or modify the existing one. Eliminating costfor producing by using different method. Design of new product process andtype. Focus on improvement, development, modification and introduction ofnew product, features, process. Be up to date with new technologies,approach.Responsibilities of Production ManagerFor this position we have selected Fahima Akter Aurin. She will also organizethe production/operation department of the organization. The keyresponsibilities of this position are stated below: Control the whole productionprocess. Ensuring raw material is providing timely and made into finishedgoods effective. Set standard and targets for each section for productionprocess. Monitoring the quantity and quality of raw material used andproduced goods of a production line. Strictly monitoring each stage ofproduction. 42 Page
  43. 43. Human Resource (HR) ManagerArif Hossain is the HR manager of our company. The human resource (HR)department’s works are operated by HR manager. HR manager’s major dutiesare: Recruiting is the main duty of a HR manager. Arrange training programsfor those who are newly selected to join the organization and also or existingemployee. See the performance of the employee. Post advertisement in printedmedia, Internet or business magazines to hire new employee. Identification ofjob, responsibility and duty of the organization.The Responsibility of Finance ManagerSarkar Rajibul Hasan is the Finance manager of our company. The Financedepartment’s works are operated by Finance Manager. Finance manager’smajor duties are: Finance manager oversees the preparation of financialreports, direct investment activities, and implement cash managementstrategies. Develop and implement accounting and internal control systems,standard operating procedures. To deliver accurate and timely financetransactional processing in finance shared service centre. A financial manageris responsible for providing financial advice and support to elements.Formulating strategies and long-term business plan. Developing financialmanagement mechanisms that minimize financial risk.Key Responsibilities of AccountantsOmar faruk is the Accounts manager of our company. The Accountsdepartment’s works are operated by Accounts manager. Account manager’smajor duties are: Prepare profit and loss statements and monthly closing andcost accounting reports. Compile and analyze financial information to prepareentries to accounts, such as general ledger accounts, and document businesstransactions. Establish, maintain, and coordinate the implementation ofaccounting and accounting control procedures. Analyze and review budgetsand expenditures for local, state, federal, and private funding, contracts, andgrants. Monitor and review accounting and related system reports foraccuracy and completeness. 8. Conforming of all orders by all partners. 9. By board meeting of the partners will resolve the major and minor problems. 10. When any partner will die or retire or insufficient to stay with us then 43 the partnership will dissolve. It not mean that the company is switched Page off.
  44. 44. 11. A partner may, after giving written notice to the other partners, transfer his/her interest in the partnership to a revocable living trust of which he/she is the grantor and sole trustee. 12. When every partners want to disclose the business and if government will find any unethical work on the business then the business will closed. Staffing planStrategic Staffing:When we are hiring team members, we need to look at them a littledifferently. Before, we looked for the ability to cover a shift, where now welook for people that can stretch two more levels from where they are today.Delivering our customer experience is not easy. We need to find people whoare passionate about Pacific Furniture and our culture Fun, Integrity, Balance,Empower, and Respect."Its not about getting a group of people to interview; its about getting the rightpeople. To find these potential employees, we will try new ways to attract andreach the new talent pool of Generation. To support the general managers inthe seasonal swing in staffing their stores, the recruitment team had givensome stores access to online tools for their hourly team members.We can get help from many web site, University, Newspaper and BusinessMagazine to find this more qualified talent pool.Performance Management:Performance Management including Individual Development Plans (IDP),examines the employee as a whole, measuring skills, behaviors, and results.The mindset will shifted once again; before performance evaluations will bevery tactical and activity based, where as today, leaders are asked to digdeeper into the behaviors that drive results. 44The focus is more heavily weighed on assessing potential correctly and thendeveloping the plan based on their strengths, weaknesses, or opportunities. Page
  45. 45. POSITION EDUCATIONAL Experience OTHER QUALIFICATION BACKGROUND MBA 7yrs ExcellentManaging interpersonalDirector (Major in HR) communication skill, excellent leadership.HR Executive BBA(Major in HR) 5 yrs Managerial experience.Marketing MBA(Major 10yrs Innovative and hardManager Marketing) workingBrand Executive M Sc / B Sc 4 yrs Good command in EnglishProduction MBA 4 yrs Command overManager ProductionExecutive Graduate in 3 yrs Command over Ms Marketing officeFinance Manager MBA, Major in 8 yrs Experience as a finance. Decision provider, financial analyst.Accountant BBa or MBA, 3 years Skill in accounting Major in terms. Accounting.National Sales MBA 7 yrs Excellentmanager interpersonal communication skill, excellent leadership.Supervisors Bachelor Degree 3 years Good knowledge about Furniture 45 business. Page
  46. 46. RecruitmentThis is the process of discovering potential candidates for actual or anticipatedorganizational vacancies. Employees can be recruited from internal searchand/or from external search. However, Pacific Furniture will be recruitingthrough external search. External search can be done through advertisementsin newspapers, employment agencies, colleges and universities and from otherprofessional organizations.The recruitment process of Pacific Furniture will start by giving advertisementin newspapers, where the applicant will be told to collect application formfrom the main office in Mirpur. The applicant will have to fill the applicationform and submit it along with a cover letter and curriculum vitae.The search for employees can also be done through online employmentagencies like bdjobs or in prothomalo jobs.Circulation can also be done in colleges and universities.Selection Selection activities follow a standard pattern, beginning with an initialscreening interview and concluding with the final employment decision. Theselection process for Pacific Furniture will follow the steps given below:Preliminary Screening:The first step in the selection process whereby job inquiries are sorted. Thiswill consist of two steps: screening inquiries, and screening interviews. Theapplications will be screened and sorted, and then the selected applicants willbe called for an interview, and the final applicants will be screened andselected from the final interview.Final Selection:The final candidates selected will be therefore, be assigned their work. 46 Page
  47. 47. Employment Test: After the employees are selected, they will have to go through an employmenttest. This is not applicable for the blue collar workers but mandatory for thewhite collared employees and for the sales assistants and the cashiers. Sales Forecast For the year 2013Month/Product Bed shed Almira Sofa Dining table Dressing table name January 50000 60000 120000 20000 20000 February 60000 40000 140000 90000 40000 March 80000 85000 70000 53000 35000 April 150000 65000 150000 85000 25000 May 140000 50000 65000 45000 50000 June 70000 90000 54000 65000 15000 July 90000 80000 65000 75000 5000 August 80000 65000 25000 64000 12000 September 170000 45000 50000 85000 65000 October 70000 30000 45000 45000 40000 November 75000 70000 65000 150000 38000 December 78000 55000 85000 60000 54000 Total 1113000 735000 934000 837000 399000 Net total 4018000 47 Page
  48. 48. Sales Forecast - 2013Total Production : 40,50,000Total Sales : 40,18,000Explanation of sales forecasting:By considering several factors we have estimated future sales throughout theyear of 2013. We are going to start production and selling from the Jan of2013. We are launching five products. Bed sheds Almira Sofa Dining table Dressing table1) January: Our production and selling will be start from January. As the market is 48unaware about the product, so we will produce 25 units. Page
  49. 49. 2) February:Considering cultural environment and our product capability, we willincrease our product 40 and sales will be 35 units.3) March:We will sustain of production level but the sales will increase 45 units becauseof increasing awareness.4) April:As summer started, the factor weather and easy availability of material willincrease our production to 75 as well as sales to 60.5) May:In this month both production and sales will increase due to middle of theyear.6) June:We will sustain the production level and sales will be in acceptable level forweather factor the sales will down for some unit.7) July: As Ramadan will start for end of July, it will affect our sales positively, itwill be 60 units.8) August: Because of Ramadan and biggest festival Eid-Ul-Fitar, our sales will bethe highest of the year, as we estimated.9) September: In these months, the sales will be in normal level.10) October: Two religious festivals will be occurring in this month’s Eid-Ul-Azhaand DurgaPoja. So, the sales will be second highest.11) November: As because of weather and less material availability, the sales willdecrease.12) December: For some factors like weather and social forces, the sales volume willdecrease. 49 Page
  50. 50. Sales Forecast for year 2013-2017 2013 2014 2015 2016 2017 Total Sales 4018000 9854000 14500000 23500000 32000000Total production 4050000 9953000 15000000 23600000 32200000 Bed shed 1113000 2854000 4200000 6500000 10000000 Almira 735000 1900000 3800000 4500000 7000000 Sofa 934000 1500000 2000000 3500000 5500000 Dining table 837000 2500000 3500000 6000000 6500000 Dressing table 399000 2100000 1000000 3000000 3000000 50 Page
  51. 51. Pacific Furniture Cash flow statement – 2013Cash in January February March April May June July AugustCash salesBed sheds 50000 60000 80000 150000 140000 70000 90000 80000Almira 60000 40000 85000 65000 50000 90000 80000 65000Sofa 120000 140000 70000 150000 65000 54000 65000 25000Dining table 20000 90000 53000 85000 45000 65000 75000 64000Dressing table 20000 40000 35000 25000 50000 15000 5000 12000Total 270000 370000 323000 475000 350000 294000 315000 246000Collection from 400 300 400 400 80 0 400 400A/RTerm loan 1000000 1000000 1000000 1000000 1000000 1000000 800000 800000processedSales fired asset 2000000 1000000Total cash in 1270400 1370300 1323400 1475400 3350080 1294000 2115400 1046400Cash outRent 300000 300000 300000 3000000 300000 300000 350000 350000Magi Salaries 732000 732000 732000 732000 732000 732000 732000 800000Other Salaries 192500 192500 192500 192500 192500 192500 192500 193000wageTelephone 900 900 900 900 900 900 900 1000Utilities 30000 30000 30000 30000 30000 40000 40000 40000Repair 1000 1000 1000 2000 2000 2000 3000 3000License municipal 40000Insurance 10000 10000 10000 10000 10000 10000 10000 10000Other Operation 10000 10000 10000 5000 5000 7000 7000 7000Pay of purchase of 1000000 800000 500000 500000 300000 300000 300000 200000net assetPay of 50000 50000 50000 50000 50000 50000 50000 50000Income 500000 500000 60000 70000 60000 70000 80000 80000Pay of A/B 50000 30000 30000 20000 30000 30000 20000 30000Total cash out 2506400 2206400 1916400 1912400 1722400 1734400 1785400 1764000Opining balance 50000000 30000000 30000000 30000000 30000000 25000000 25000000 25000000Add : Cash in 1270400 1370300 1323400 1475400 3350080 1294000 2115400 1046400(-) Cash out 2506400 2206400 1916400 1912400 1722400 1734400 1785400 1764000Surplus 48764000 29163900 29407000 29563000 31627680 24559600 25330000 24282400 51 Page
  52. 52. Pacific FurnitureCash Flow Statement- year 2013 52 Page
  53. 53. Cash flow statement 5 Years Pacific Furniture Company Cash Flow Statement- Year 2013-2017 2013 2014 2015 2016 2017Cash InCash sales 4018000 9854000 14500000 23500000 32000000Collect from A/R 30,000 50,000 60,000 80,000 2,00,000Term loan Process 11200000 8800000 10000000 1000000 8000000Sales of fixed Assets 5,58,000 10,00,000 20,00,000 30,00,000Other Cash receive 40,50,000 66,00,000 60,00,000 80,00,000 1,00,000Total Cash in 15351720 18704000 24560000 24580000 40000000Cash OutRent 39,50,000 40,00,000 41,00,000 45,00,000 50,00,000Mgt Salaries 91,24,000 95,30,000 98,00,000 10,00,000 1,30,00,000Other Salaried wage 23,12,500 25,00,000 28,00,000 30,00,000 50,00,000Telephone expense 11,200 20,000 30,000 35,000 50,000Utilities 4,41,500 6,00,000 7,00,000 8,00,000 10,00,000Repair and maintenanceLicense and main. Insurance 1,20,000 1,20,000 1,20,000 2,20,000 4,00,000Other operating expensePay of purchase of fixed 45,50,000 50,00,000 60,00,000 70,00,000 1,00,000assetsPay of long term loan 6,00,000 6,00,000 6,00,000 12,00,000 1,20,00,000Income tax paymentPay of AIP 3,50,000 4,50,000 5,00,000 5,50,000 5,00,000Total cash out 2,25,32,2000 23,34,000 2,61,80,000 2,88,35,000 3,84,50,000Opening Balance 325000000 317434520 314094520 315980920 317193920Ad : Cash In 15351720 20000000 28066400 30048000 36400000Less: Cash out 22917200 23340000 26180000 28835000 38450000Sur plus 317434520 314094520 315980920 317193920 315143920 53 Page
  54. 54. Pacific FurnitureCash Flow Statement- year 2013-2017 54 Page
  55. 55. Pacific Furniture Income Statement Pacific Furniture Income Statement For the year 2013-2017 Year 2013 Year 2014 Year 2015 Year 20Sales 4018000 9854000 14500000Less: Sale return and -30,000 -50,000 -60,000allowanceNet Sales 3,988,000 9,804,000 14,440,000 2Cost of goods sold -1485000 -2150000 -3250000Gross margin 2,503,000 7,654,000 11,190,000 1Less: ExpensesSelling Expense 90,000 1,10,000 1,50,000 2,00,000Administrative Expense 99,000 1,20,000 1,60,000 2,60,000Depreciation Expense 10,00,000 12,00,000 13,50,000 16,00,000Utilities Expense 20,000 30,000 50,000 80,000Miscellaneous Expense 50,000 50,000 80,000 1,50,000Advertising Expense 10,00,000 10,00,000 15,00,000 15,00,000 -2259000 -2710000 -3290000Earnings Before Income & 244,000 4,944,000 7,900,000 1TaxIncome Tax (15%) 36,600 741,600 1,185,000Net Profit After Tax 207,400 4,202,400 6,715,000 1 55Page
  56. 56. Pacific Furniture Balance Sheet As for year 2013-2017 2013 2014 2015 2016 AssetCurrent assets :Cash 4018000 9854000 14500000 23500000Accounts Receivable 80,000 120000 150000 200000Total current assets 40,98,000 9,974,000 14,650,000 23,7Long term Assets :Land 7000000 7500000 8000000 9000000Building 10000000 12000000 13500000 15000000Machinery 10000000 11000000 12000000 13500000Less: Accumulate -1096000 -6100000 -6700000 -7500000DepreciationTotal long term assets 25904000 24400000 26800000 300Total assets 30,002,000 34,374,000 41,450,000 53,7Liabilities :Bank loan 4000000 4000000 4000000 4000000Net worth 25,862,000 30,374,000 37,450,000 49,700,000Total liability 30,002,000 34374000 41450000 537 Break even analysis Break even analysis is a technique widely used by production management and management accountants. It is based on categorizing production costs between those which are "variable" (costs that change when the production 56Page
  57. 57. output changes) and those that are "fixed" (costs not directly related to thevolume of production).Total variable and fixed costs are compared with sales revenue in order todetermine the level of sales volume, sales value or production at which thebusiness makes neither a profit nor a loss (the "break-even point"). For ourbusiness, it is very necessary to do break-even analysis. After knowing ourbreak-even quantity, we will be able to make our business profitable.Fixed CostsFixed costs are those business costs that are not directly related to the level ofproduction or output. In other words, even if the business has a zero output orhigh  Total Fixed cost Land 70,00,000 Building 1,00,00,000 Equipments 50,00,000 Vehicle 60,00,000 Machineries 1,00,00,000 Furniture 20,00,000 Insurance Ex. 5,00,000 License Ex. 2,00,000 Total Fixed cost 40700000Variable CostsVariable costs are those costs which vary directly with the level of output.They represent payment output-related inputs such as raw materials, directlabor, fuel and revenue-related costs such as commission. A distinction is oftenmade between "Direct" variable costs and "Indirect" variable costs. 57 Page
  58. 58. Total variable cost : Factory overhead cost 80,000 Transportation Exp 50,000 Utility Bill 1,50,000 Production payroll 10,00,000 Telephone Bill 11,200 Advertisement 10,00,000 Administration payroll 12,00,000 Total 34,91,200Total cost = 40700000Total sales = 4018000Sales unit = 300 unitSales per unit = 4018000/300 = 13393.33Variable cost per unit = 3491200/300 = 11637.33BEQ = 40700000 / (13393.33-11637.33) = 40700000/ 1756 = 23177.68 unitTotal cost: Fixed cost + Total variable costFixed cost = 40700000Total variable cost (23177.68*11637.33) = 269726310.8Total cost = 310426310.8Total Revenue = 23177.68*13393.33 = 310426316.8 58 Page
  59. 59. So, TOTAL COST= TOTAL REVENUE Figure: Break-even point Ratio Analysis Roles 2013 2014 2015Current ratio Curren Asset/ Current 4098000/30002000 9974000/34374000 14650000/41450000 237 Liabilities 0.14% 0.29% 0.35%Quick or asset current asset - inventory (4098000-300000- (9974000-700000- (14650000-700000- (23Ratio - prepaid expense/curent 200000)/30002000 200000)/34374000 200000)/41450000 200 liabilities 0.12% 0.26% 0.33%Debt equity ration debt/equity 2000000/3000000 2000000/3000001 2000000/3000002 200 0.67% 0.67% 0.67%Operating expense Total operating expense- (2259000- (1090000- (1900000-200000) / (27ration interest expense 200000)/4018000 200000)/9854000 14500000 200 0.51% 0.09% 0.12%Inventory turnover 1. Cost of good sold/ Avg 1485000/660000 2150000 / 660000 3250000/660000 390ratio inventory 2.24 3.25 4.92 2. Avg days to turnover 365/2.24 365/3.25 365/4.92 365 59 162.22 days 111.96 days 74.04 daysAverage collection Accounts (80000/4018000) * (120000/9854000) (150000/14500000) (20 Pageperiod receivable/Sales 365 * 365 * 365 * 36
  60. 60. 7.29 days 4.46 days 3.79 daysReturn on total operating income/total 226000/30002000 1090000/34374000 1900000/41450000 276asset asset 0.01% 0.03% 0.05%Return on Equity Net income/ Share 192100/7500000 926500/7500000 1520000/7500000 220on investment holder equity 0.03% 0.12% 0.20% 60Page

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