Change & Evolve Private Limited is a Karachi-based employee wellness training startup that aims to improve the health and well-being of corporate employees. It offers a range of wellness programs and services, including fitness programs, healthy eating counseling, education on stress management and mental health, vaccinations, smoking cessation programs, and weight loss counseling. The startup sees opportunities to grow its business by increasing employer awareness of the benefits of employee wellness programs and expanding into new markets. However, it may face threats from competitors offering similar services and economic downturns reducing company spending on wellness initiatives.
The document discusses the major drivers of supply chain performance which include logistical drivers like facilities, inventory, and transportation as well as cross-functional drivers like information, sourcing, and pricing. It then provides details on each of these drivers, including the different types of facilities, approaches to inventory and transportation, how information is used, components of sourcing and pricing decisions. It also mentions some obstacles to achieving strategic fit like increasing product variety, demanding customers, and globalization.
This document discusses global logistics. It defines global logistics as the design and management of the international flow of materials, services, and information into, through, and out of multinational corporations. Globalization has increased the complexity of logistics by enabling businesses to operate across borders. Factors like technological advances and emerging global markets are pushing more companies to adopt global logistics strategies to access new markets and optimize resources on a global scale.
Global supply chain management involves coordinating activities across countries. A global supply chain connects organizations worldwide to source materials and produce goods for customers. Managing such a complex network introduces challenges like long distances, currency fluctuations, and differing business environments. However, companies also benefit from expanded markets, lower costs, and competitive advantages. To operate efficiently, firms must integrate worldwide operations and have the agility to respond to various global factors. For example, a large computer company redesigned its supply chain from 33 plants across many countries to 12 plants within 3 regional zones, reducing costs and improving profits.
This PowerPoint Presentation will be covering the topic SHIPPING ACCOUNTS – THE FRAMEWORKFOR DEC ISIONS
•What company accounts are used for
•The income statement•
The balance sheet•
The cashflow statement
What company accounts are used
The cashflow statement
different methods of computing cashflow
DSV provides freight management services including air freight, ocean freight, intermodal transport, road transport, courier express parcel, and additional services like temperature controlled transport and technical distribution. They manage transportation through planning, execution, administration, transport sourcing, order management, shipment planning, freight execution, and financial settlement. DSV uses a Freight Management System to select suitable distribution solutions based on requirements and provide shipment monitoring, performance reporting, and flexible reporting options.
Role of logistics in competitive strategyArmaan Salik
This document discusses how logistics can provide competitive advantage through lower costs and differentiated value. It identifies two methods - productivity advantage through economies of scale and value advantage by segmenting markets. Firms can gain advantage by performing logistics activities like transportation and inventory management more efficiently than competitors. Strategic logistics planning integrates logistics goals with corporate strategy and considers factors like customers, costs, networks and service levels.
Transportation refers to the movement of products through the supply chain from production to consumption. It is an important part of logistics and supply chain management as products are rarely produced and consumed in the same location. There are various modes of transportation including road, rail, water, air, pipeline, and intermodal, each with their own advantages and costs depending on factors like speed, availability, dependability, cargo capabilities, frequency, and fixed versus variable costs. Transportation plays a crucial role in efficiently and economically distributing goods throughout the supply chain.
The document discusses the major drivers of supply chain performance which include logistical drivers like facilities, inventory, and transportation as well as cross-functional drivers like information, sourcing, and pricing. It then provides details on each of these drivers, including the different types of facilities, approaches to inventory and transportation, how information is used, components of sourcing and pricing decisions. It also mentions some obstacles to achieving strategic fit like increasing product variety, demanding customers, and globalization.
This document discusses global logistics. It defines global logistics as the design and management of the international flow of materials, services, and information into, through, and out of multinational corporations. Globalization has increased the complexity of logistics by enabling businesses to operate across borders. Factors like technological advances and emerging global markets are pushing more companies to adopt global logistics strategies to access new markets and optimize resources on a global scale.
Global supply chain management involves coordinating activities across countries. A global supply chain connects organizations worldwide to source materials and produce goods for customers. Managing such a complex network introduces challenges like long distances, currency fluctuations, and differing business environments. However, companies also benefit from expanded markets, lower costs, and competitive advantages. To operate efficiently, firms must integrate worldwide operations and have the agility to respond to various global factors. For example, a large computer company redesigned its supply chain from 33 plants across many countries to 12 plants within 3 regional zones, reducing costs and improving profits.
This PowerPoint Presentation will be covering the topic SHIPPING ACCOUNTS – THE FRAMEWORKFOR DEC ISIONS
•What company accounts are used for
•The income statement•
The balance sheet•
The cashflow statement
What company accounts are used
The cashflow statement
different methods of computing cashflow
DSV provides freight management services including air freight, ocean freight, intermodal transport, road transport, courier express parcel, and additional services like temperature controlled transport and technical distribution. They manage transportation through planning, execution, administration, transport sourcing, order management, shipment planning, freight execution, and financial settlement. DSV uses a Freight Management System to select suitable distribution solutions based on requirements and provide shipment monitoring, performance reporting, and flexible reporting options.
Role of logistics in competitive strategyArmaan Salik
This document discusses how logistics can provide competitive advantage through lower costs and differentiated value. It identifies two methods - productivity advantage through economies of scale and value advantage by segmenting markets. Firms can gain advantage by performing logistics activities like transportation and inventory management more efficiently than competitors. Strategic logistics planning integrates logistics goals with corporate strategy and considers factors like customers, costs, networks and service levels.
Transportation refers to the movement of products through the supply chain from production to consumption. It is an important part of logistics and supply chain management as products are rarely produced and consumed in the same location. There are various modes of transportation including road, rail, water, air, pipeline, and intermodal, each with their own advantages and costs depending on factors like speed, availability, dependability, cargo capabilities, frequency, and fixed versus variable costs. Transportation plays a crucial role in efficiently and economically distributing goods throughout the supply chain.
Importance of shipping in international business.pptxCINEC Campus
Shipping plays a vital role in international business by enabling the transport of goods between countries cost effectively. The demand for shipping is derived from the demand for international trade as nearly 90% of global trade by volume is carried on ships. Advances in ship size have increased economies of scale, lowering transport costs. Container ships now carry over 23,000 containers. Sri Lanka's strategic location has supported its role as a hub port, though the empty container problem increases costs. New digital solutions aim to better optimize container flows and reduce inefficiencies.
Chapter 1. understanding the supply chainSachin Modgil
This document discusses key concepts in supply chain management. It defines a supply chain as including all stages involved in fulfilling a customer request, from suppliers to end customers. There are three phases of supply chain decision making: strategy/design, planning, and operations. Processes in a supply chain can be viewed through the cycle view, with different cycles at each interface, or the push/pull view, with reactive pull processes and speculative push processes. The overall goal of supply chain management is to maximize total supply chain profitability.
This document discusses key concepts in logistics, including definitions of logistics, the value added roles of logistics in creating utility, and how logistics interfaces with other business functions like operations and marketing. It also examines techniques for analyzing logistics systems and costs, including how transportation costs, inventory levels, and the number of warehouses impact total logistics costs. Spatial relationships within logistics networks are also addressed.
Logistics management is the process of planning, implementing, and controlling the efficient flow of goods, services and information from the point of origin to the point of consumption. An intelligent supply chain creates competitive advantage through seamless integration and efficiency. Key performance indicators define efficiency as on-time delivery with minimal delays and maximum shipment control. Advanced tracking technology and paperless processing are important for supply chain intelligence.
Unit 3 logistics costs lscm (18 pages)logistics management Suzana Vaidya
- The document discusses logistics costs and the principles of logistics costing. It notes that traditional accounting systems do not fully capture customer costs or the impacts of logistics decisions across functions.
- It advocates for total cost analysis and identifying the incremental costs of logistics activities and missions to understand true costs. This involves analyzing costs across the order to collection cycle and identifying which costs are avoidable for specific customers or segments.
- Mission costing is presented as a useful concept, with missions cutting across functions to achieve customer service goals. This allows determining the total system cost of meeting mission objectives.
This document discusses various financial ratios that can be used to analyze the financial performance and health of a company. It provides definitions and formulas for key liquidity ratios like current ratio and quick ratio, leverage ratios like debt-equity ratio, activity ratios like inventory turnover ratio and average collection period, and profitability ratios like gross profit margin ratio. Specific calculations are shown for a company to illustrate how to compute various ratios from the company's financial statements. The document emphasizes the importance of ratio analysis for evaluating a company's performance over time and in comparison to other companies.
Different supply chain strategies exist to meet the varying demands of products and markets. Lean strategies focus on reducing waste and non-value activities to improve efficiency. Agile strategies emphasize flexibility and speed to respond rapidly to changing customer demands. Postponement strategies delay final manufacturing until receipt of a customer order to minimize risks of incorrect inventory. Speculation strategies seek savings through bulk manufacturing and distribution to reduce costs. The key is selecting the strategy best suited to a company's specific product attributes, customer requirements, and market characteristics.
This document summarizes key aspects of logistics and supply chain management discussed in multiple chapters. It defines logistics and supply chain management, compares the two concepts, and discusses their importance. It also outlines different levels of logistics outsourcing, benefits and risks of outsourcing, and factors to consider when selecting an outsourcing partner. Finally, it provides an overview of procurement outsourcing, including its scope, implementation approaches, and future growth drivers.
This document discusses shipping and its role in the global logistics and supply chain system. It provides a brief history of shipping and outlines key facts, such as the variety of vessels and cargoes transported by sea. The document then explains how shipping is derived from demand in the supply chain and discusses different types of shipping trades. It emphasizes that shipping is an important element of the supply chain, ensuring raw materials and finished goods are transported globally. The challenges facing the shipping industry, such as oversupply of vessels, are also summarized.
This document discusses the key features and importance of sea ports. It outlines that ports are historic commercial hubs that require large investments and provide infrastructure to support national economies. The document describes the evolution of ports from basic cargo facilities to modern integrated hubs. It also outlines different types of ports and approaches to port management, noting the goal of efficiently supporting trade and employment.
Supply chain management is the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole
Port management faces new challenges due to changes in the shipping, logistics, and port industries. Ports must adapt to trends like globalization, larger ships, and increased competition. Successful ports have strategic locations, efficient operations, intermodal connections, and support value-added logistics activities. Emerging issues include the growth of transshipment cargo and global terminal operators. Ports play an important economic role but also face pressures to invest in new facilities and maintain competitiveness in a rapidly changing global trade environment.
The document summarizes a study on the future prospects of air freight cargo industry in India. It finds that while air cargo accounts for only 1% of total cargo volume, it carries around 29% of total trade value due to high-value goods. Several issues hamper growth of the industry like inadequate infrastructure at airports, lack of special cargo facilities, and high airport dwell times compared to global standards. The air cargo sector is projected to grow at a CAGR of 11.2% over the next 20 years but growth of airport handling capacity is lagging behind traffic growth, requiring increased investment.
Here are potential answers to the assignment questions:
1. Explain different modes of transportation with their benefits and limitations:
The main modes of transportation are road, rail, water, air and pipeline. Each has its own benefits and limitations in terms of cost, speed, capacity, route limitations etc. For example, road transportation provides door-to-door delivery but has higher costs compared to rail. Water transportation has the lowest cost per ton-km but is slower and limited to routes.
2. What transport decisions should a manager take into consideration while selecting the transportation mode?
A manager should consider factors like nature of goods, urgency of delivery, cost constraints, availability of modes, transportation infrastructure etc. Key decisions include
This document presents an operational network representation and integer linear programming model for container routing in liner shipping networks. The model accounts for voyage arcs, transshipment arcs, time and cost constraints, and constraints related to cabotage rules and maximum transit times/costs. By solving the ILP model, the optimal low-cost container paths can be determined while satisfying all constraints.
Port and Terminal Operations Management PPTzelalemdagne3
This document provides an overview of ports and related concepts. It discusses how ports serve as critical infrastructure for transporting freight and people internationally. Ports connect maritime transport with other modes of transport and enable trading, distribution, and logistics activities. The document then describes different types of ports based on their size, roles, functions, and classifications like network ports, transshipment ports, and feeder ports. It also covers topics like port planning, development, costs, investment, and operations from economic, engineering, and logistics perspectives.
The document discusses various financial management and internal control procedures for districts receiving federal grants, including cash management, inventory, budgeting, procurement, payroll, timekeeping, and accounting practices. Key points addressed include maintaining proper documentation for expenditures and obligations, separating duties for authorizing payments and reviewing cash receipts, identifying federal funds in accounting systems, and ensuring expenditures are allowable and within budget.
Transportation plays a key role in supply chain management by moving products across distances in a timely manner. As logistics has become increasingly important due to cost and customer service pressures, transportation management focuses on optimizing network freight flows and micro-level routing decisions. Analyzing lane densities and consolidation opportunities can produce efficiencies through vehicle sharing, temporal consolidation, and backhaul utilization. The goal is to improve transportation efficiency through techniques like load consolidation, scheduling optimization, and minimizing empty miles.
Management services contracts involve one company providing managerial expertise to another for a specific period of time. They allow a company to exploit an international business opportunity without placing all its physical assets at risk. There are two main types of knowledge transferred - specialized technical management knowledge and general business management skills. While they provide opportunities to develop local skills, they also carry risks like nurturing new competitors or endangering managers in unstable locations. An example given is Heathrow Airport Holdings operating airports in the US under long-term contracts.
The document discusses organizational objectives and how they function to control, motivate, and direct a business. It explains that objectives can be set at different levels and should meet the SMART criteria. The relationship between aims, objectives, strategies, and tactics is explored. Common strategic objectives like profit maximization and growth are outlined. The importance of ethics, corporate social responsibility, and social/environmental auditing are also summarized.
BIZGrowth Strategies - Back to Basics Special EditionCBIZ, Inc.
Amid the increasing complexity of today’s business landscape, it can be of great benefit to shut out the noise and simply get back to the basics. Summer offers the rare opportunity for organizations to slow down and sweat the small stuff.
In this issue, our experts address seven key topics intended to help leaders guide their teams to stability and refocus on the foundational elements of success, including:
- Talent Management 101: How to Attract & Retain Great Employees
- Exploring the What, Why & How Behind the Employee Experience
- The Shifting Normal: 3 Ways Leaders Can Embrace Change & Conquer Challenge
- What is Financial Wellbeing & Why Should Employers Care?
- D&O Insurance Application Basics to Protect Your Leaders
- Your Life Insurance Policy May Be One of Your Biggest Assets
- Understanding Labor Law Poster Compliance
Importance of shipping in international business.pptxCINEC Campus
Shipping plays a vital role in international business by enabling the transport of goods between countries cost effectively. The demand for shipping is derived from the demand for international trade as nearly 90% of global trade by volume is carried on ships. Advances in ship size have increased economies of scale, lowering transport costs. Container ships now carry over 23,000 containers. Sri Lanka's strategic location has supported its role as a hub port, though the empty container problem increases costs. New digital solutions aim to better optimize container flows and reduce inefficiencies.
Chapter 1. understanding the supply chainSachin Modgil
This document discusses key concepts in supply chain management. It defines a supply chain as including all stages involved in fulfilling a customer request, from suppliers to end customers. There are three phases of supply chain decision making: strategy/design, planning, and operations. Processes in a supply chain can be viewed through the cycle view, with different cycles at each interface, or the push/pull view, with reactive pull processes and speculative push processes. The overall goal of supply chain management is to maximize total supply chain profitability.
This document discusses key concepts in logistics, including definitions of logistics, the value added roles of logistics in creating utility, and how logistics interfaces with other business functions like operations and marketing. It also examines techniques for analyzing logistics systems and costs, including how transportation costs, inventory levels, and the number of warehouses impact total logistics costs. Spatial relationships within logistics networks are also addressed.
Logistics management is the process of planning, implementing, and controlling the efficient flow of goods, services and information from the point of origin to the point of consumption. An intelligent supply chain creates competitive advantage through seamless integration and efficiency. Key performance indicators define efficiency as on-time delivery with minimal delays and maximum shipment control. Advanced tracking technology and paperless processing are important for supply chain intelligence.
Unit 3 logistics costs lscm (18 pages)logistics management Suzana Vaidya
- The document discusses logistics costs and the principles of logistics costing. It notes that traditional accounting systems do not fully capture customer costs or the impacts of logistics decisions across functions.
- It advocates for total cost analysis and identifying the incremental costs of logistics activities and missions to understand true costs. This involves analyzing costs across the order to collection cycle and identifying which costs are avoidable for specific customers or segments.
- Mission costing is presented as a useful concept, with missions cutting across functions to achieve customer service goals. This allows determining the total system cost of meeting mission objectives.
This document discusses various financial ratios that can be used to analyze the financial performance and health of a company. It provides definitions and formulas for key liquidity ratios like current ratio and quick ratio, leverage ratios like debt-equity ratio, activity ratios like inventory turnover ratio and average collection period, and profitability ratios like gross profit margin ratio. Specific calculations are shown for a company to illustrate how to compute various ratios from the company's financial statements. The document emphasizes the importance of ratio analysis for evaluating a company's performance over time and in comparison to other companies.
Different supply chain strategies exist to meet the varying demands of products and markets. Lean strategies focus on reducing waste and non-value activities to improve efficiency. Agile strategies emphasize flexibility and speed to respond rapidly to changing customer demands. Postponement strategies delay final manufacturing until receipt of a customer order to minimize risks of incorrect inventory. Speculation strategies seek savings through bulk manufacturing and distribution to reduce costs. The key is selecting the strategy best suited to a company's specific product attributes, customer requirements, and market characteristics.
This document summarizes key aspects of logistics and supply chain management discussed in multiple chapters. It defines logistics and supply chain management, compares the two concepts, and discusses their importance. It also outlines different levels of logistics outsourcing, benefits and risks of outsourcing, and factors to consider when selecting an outsourcing partner. Finally, it provides an overview of procurement outsourcing, including its scope, implementation approaches, and future growth drivers.
This document discusses shipping and its role in the global logistics and supply chain system. It provides a brief history of shipping and outlines key facts, such as the variety of vessels and cargoes transported by sea. The document then explains how shipping is derived from demand in the supply chain and discusses different types of shipping trades. It emphasizes that shipping is an important element of the supply chain, ensuring raw materials and finished goods are transported globally. The challenges facing the shipping industry, such as oversupply of vessels, are also summarized.
This document discusses the key features and importance of sea ports. It outlines that ports are historic commercial hubs that require large investments and provide infrastructure to support national economies. The document describes the evolution of ports from basic cargo facilities to modern integrated hubs. It also outlines different types of ports and approaches to port management, noting the goal of efficiently supporting trade and employment.
Supply chain management is the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole
Port management faces new challenges due to changes in the shipping, logistics, and port industries. Ports must adapt to trends like globalization, larger ships, and increased competition. Successful ports have strategic locations, efficient operations, intermodal connections, and support value-added logistics activities. Emerging issues include the growth of transshipment cargo and global terminal operators. Ports play an important economic role but also face pressures to invest in new facilities and maintain competitiveness in a rapidly changing global trade environment.
The document summarizes a study on the future prospects of air freight cargo industry in India. It finds that while air cargo accounts for only 1% of total cargo volume, it carries around 29% of total trade value due to high-value goods. Several issues hamper growth of the industry like inadequate infrastructure at airports, lack of special cargo facilities, and high airport dwell times compared to global standards. The air cargo sector is projected to grow at a CAGR of 11.2% over the next 20 years but growth of airport handling capacity is lagging behind traffic growth, requiring increased investment.
Here are potential answers to the assignment questions:
1. Explain different modes of transportation with their benefits and limitations:
The main modes of transportation are road, rail, water, air and pipeline. Each has its own benefits and limitations in terms of cost, speed, capacity, route limitations etc. For example, road transportation provides door-to-door delivery but has higher costs compared to rail. Water transportation has the lowest cost per ton-km but is slower and limited to routes.
2. What transport decisions should a manager take into consideration while selecting the transportation mode?
A manager should consider factors like nature of goods, urgency of delivery, cost constraints, availability of modes, transportation infrastructure etc. Key decisions include
This document presents an operational network representation and integer linear programming model for container routing in liner shipping networks. The model accounts for voyage arcs, transshipment arcs, time and cost constraints, and constraints related to cabotage rules and maximum transit times/costs. By solving the ILP model, the optimal low-cost container paths can be determined while satisfying all constraints.
Port and Terminal Operations Management PPTzelalemdagne3
This document provides an overview of ports and related concepts. It discusses how ports serve as critical infrastructure for transporting freight and people internationally. Ports connect maritime transport with other modes of transport and enable trading, distribution, and logistics activities. The document then describes different types of ports based on their size, roles, functions, and classifications like network ports, transshipment ports, and feeder ports. It also covers topics like port planning, development, costs, investment, and operations from economic, engineering, and logistics perspectives.
The document discusses various financial management and internal control procedures for districts receiving federal grants, including cash management, inventory, budgeting, procurement, payroll, timekeeping, and accounting practices. Key points addressed include maintaining proper documentation for expenditures and obligations, separating duties for authorizing payments and reviewing cash receipts, identifying federal funds in accounting systems, and ensuring expenditures are allowable and within budget.
Transportation plays a key role in supply chain management by moving products across distances in a timely manner. As logistics has become increasingly important due to cost and customer service pressures, transportation management focuses on optimizing network freight flows and micro-level routing decisions. Analyzing lane densities and consolidation opportunities can produce efficiencies through vehicle sharing, temporal consolidation, and backhaul utilization. The goal is to improve transportation efficiency through techniques like load consolidation, scheduling optimization, and minimizing empty miles.
Management services contracts involve one company providing managerial expertise to another for a specific period of time. They allow a company to exploit an international business opportunity without placing all its physical assets at risk. There are two main types of knowledge transferred - specialized technical management knowledge and general business management skills. While they provide opportunities to develop local skills, they also carry risks like nurturing new competitors or endangering managers in unstable locations. An example given is Heathrow Airport Holdings operating airports in the US under long-term contracts.
The document discusses organizational objectives and how they function to control, motivate, and direct a business. It explains that objectives can be set at different levels and should meet the SMART criteria. The relationship between aims, objectives, strategies, and tactics is explored. Common strategic objectives like profit maximization and growth are outlined. The importance of ethics, corporate social responsibility, and social/environmental auditing are also summarized.
BIZGrowth Strategies - Back to Basics Special EditionCBIZ, Inc.
Amid the increasing complexity of today’s business landscape, it can be of great benefit to shut out the noise and simply get back to the basics. Summer offers the rare opportunity for organizations to slow down and sweat the small stuff.
In this issue, our experts address seven key topics intended to help leaders guide their teams to stability and refocus on the foundational elements of success, including:
- Talent Management 101: How to Attract & Retain Great Employees
- Exploring the What, Why & How Behind the Employee Experience
- The Shifting Normal: 3 Ways Leaders Can Embrace Change & Conquer Challenge
- What is Financial Wellbeing & Why Should Employers Care?
- D&O Insurance Application Basics to Protect Your Leaders
- Your Life Insurance Policy May Be One of Your Biggest Assets
- Understanding Labor Law Poster Compliance
What if you asked your top four employees to articulate the vision and purpose of your company? Could they do it? What about its business model and strategy? How about explaining their roles and the outcomes for which they have stewardship?
Chances are even your best people would struggle with that exercise. And if they have a hard time, imagine what that implies about the rest of your team.
Those simple questions reveal the level of line of sight you have in your business. And without line of sight, it is virtually impossible to have an engaged workforce.
With that in mind, VisionLink discusses the important role of employee alignment in creating sustained success in all aspects of talent management and performance—and how to create a pay strategy that reinforces the vision and mindset you want your employees to have.
To view a recording of this webinar, visit: http://www.vladvisors.com/compensation-knowledge-center/webinars/how-to-improve-line-of-sight-and-why-it-matters
To learn more about VisionLink, visit: www.vladvisors.com
A health coaching business plan outlines the strategy for establishing and operating a coaching service focused on improving clients' well-being. It typically includes market analysis, target demographics, service offerings, marketing strategies, financial projections, and operational details. The plan serves as a roadmap for the business, guiding its growth and ensuring a structured approach to promoting health and wellness.
Watermark Benefit Consulting Inc. is an employee benefits consulting firm that provides comprehensive solutions for group health plans, retirement savings plans, executive compensation, and corporate governance. They work with clients to design innovative and cost-effective benefit plans, negotiate competitive insurance rates, and ensure regulatory compliance. As independent consultants, they can obtain multiple bids from insurance providers to find the best package for clients' budgets and needs.
Mitchell's Fruit Farms Limited is one of the oldest companies in Pakistan established in 1933. The document provides an analysis of Mitchell's financial statements for 2012-2013 including a balance sheet, income statement, trend analysis, common size analysis, and financial ratios. The trend analysis shows Mitchell's net income decreased in 2013 compared to 2012, creating concern for profitability. However, the balance sheet trend indicates increases in equity and current assets, showing a good financial position. The common size analysis expresses financial statement line items as a percentage of total sales or assets to allow for comparison over time.
Many of my friends from industry have asked for my opinion on the economic crisis and its impact on business. My answer to them is that the real problem is that companies simply do not internalise the proper actions to take in order to respond to such a situation.
And rarely is it more critical than in retail business strategy, and the far-reaching implications surrounding the phenomena often known as ‘wallet share’ or ‘share of wallet’.
‘Share of wallet’ is in essence an holistic term capturing the aspect of a retailer’s desire to understand and manage consumer spending, how much they have, and how frequent and recent this occurs. This clearly introduces the aspects of service, proposition, customer loyalty, and internal & external change as strategy components for serious consideration by the senior management team.
This paper seeks to explore these aspects of a Retail business strategy, giving insight and advice for a stronger business strategy in ‘Changing Times’.
Platinum Fitness is a health service company that provides wellness programs to businesses in Shillong, India to improve employee productivity and lower healthcare costs. It was founded by Lahunmiki Myria and will initially focus on small to medium businesses in Shillong. The company aims to create relationships with 20 companies in its first year and expand across India within two years. Platinum Fitness will offer personalized health and fitness programs and work with companies to develop wellness strategies tailored to their needs.
7. COST MANAGEMENT ACCOUNTING PROJECT BY GAURANG SHARMA.docx0102192528
This document discusses a balanced scorecard framework used by companies for strategic planning and performance measurement. It begins by acknowledging those who supported the author's MBA project. It then provides an introduction to balanced scorecards and their key features. The main body explains the four perspectives of a balanced scorecard: financial, customer, internal business processes, and organizational capacity. It discusses what each perspective measures and how they are related. The conclusion reiterates that the four perspectives provide a framework for describing business strategy and linking objectives across levels of an organization.
This document discusses the internal environment of a boutique chain called Elegant Outfits located in Saudi Arabia. It identifies five key internal factors: customers, shareholders, competitors, employees, and financial institutions. It also examines how these internal factors affect the management processes of planning, organizing, staffing, communicating, and leading. Finally, it concludes that effective management requires rational assessment, goal-setting, resource allocation, and adaptation to changes in the internal and external environment.
This document provides information about insurance and financial services offered by BIG for businesses, executives, and employees. BIG represents over 200 businesses and provides customized benefits and insurance solutions. They offer a wide range of services including group health and employee benefits, property and casualty insurance, HR consulting, corporate retirement plans, employee education, and comprehensive consulting. BIG aims to support clients, offer creative solutions, be innovative, stay informed on changes, and be accessible. They work with clients to understand their goals and realities, evaluate strategies, outline roles and responsibilities, track progress, educate employees, address changes, and ensure compliance. The document includes client testimonials and examples of how BIG has helped businesses through strategies like classifying employee groups, addressing older
The document provides an overview of several strategic planning models and frameworks that can be used in strategic planning, including:
- Strategy map - A diagram that visually communicates an organization's strategy and how objectives align across different levels.
- Balanced scorecard - A framework that translates an organization's strategy into objectives and measures across financial, customer, internal process, and learning/growth perspectives.
- SWOT analysis - An analysis of an organization's strengths, weaknesses, opportunities, and threats to inform strategic planning.
The document discusses the key components and benefits of these models to effectively communicate and implement organizational strategies.
Aligning organizational talent management strategies with operational plans is an imperative to success in the future. Succession planning, talent selection and leadership development are methodologies that are necessary and not just optional.
Training Amigo is a corporate wellness company that provides online and onsite wellness solutions including customizable software, health education resources, and reporting/analytics tools. Their solutions help companies lower healthcare costs by encouraging employee engagement in wellness programs and creating a culture of health. However, many companies struggle with low employee participation in wellness programs and a lack of engagement at work. Training Amigo addresses these challenges through software that tracks employee activity/goals, management tools, and a focus on developing a wellness-conscious culture.
This document outlines three steps to improve a company's competitive advantage by focusing on employee health and well-being. Step one is to gain buy-in from senior management by demonstrating how initiatives to improve workforce resilience can increase productivity and reduce absenteeism and staff turnover. Step two is to continuously reinforce the value of individual health and well-being to everyone in the organization. Step three is to nurture a healthy eating culture within the company. The document provides specific actions under each step and argues that small changes to support employee health can significantly benefit a business.
The document outlines the course outline for a strategic management course taught by Prof. Dr. Lütfiha Alpkan. The course is divided into 4 parts covering topics such as competitive analysis, SWOT analysis, strategy choice, and global competition. It includes 15 class sessions from September to December, covering various chapters and concepts through teaching plans and learning objectives. Key strategic management concepts like vision, mission, strategic goals and performance criteria are also defined in brief summaries.
Fitness Plus will provide health and fitness services in Coral Gables, Miami-Dade County, Florida. The owners have experience in health care services and aim to provide low cost services. The US health club market size was $17.6 billion in 2017 and is expected to reach $69.8 billion by 2012. The Miami market currently has 1.28 million members out of a total population of 2.82 million. Factors such as increasing health care costs, obesity, and income growth are fueling demand and potential for further market expansion.
Successful companies are marked out by the strength of their culture. How can you actively shape your culture and turn it to your competitive advantage?
Similar to Strategic Financial Analysis and Design - Finance Report (20)
1. Engro Powergen Thar Private Limited (EPTL) was established in 2014 as a joint venture to set up a 2x330MW coal power project in Thar, Pakistan to generate electricity from indigenous lignite coal.
2. EPTL faces issues related to the environmental effects of coal power plants and negative publicity. It works to address these concerns through stringent environmental standards and community development initiatives through its Thar Foundation.
3. To overcome negative publicity, EPTL conducts public awareness campaigns and briefings with stakeholders like media to communicate its efforts in sustainable development and addressing environmental and social issues.
Globalization involves the integration of national economies with the global economy through free flows of goods, services, capital, technology and information across borders. It increases connectivity between markets through trade, investment and cultural exchanges. While it leads to a decline in global poverty through more investments and jobs, local adaptation is important to attract consumers in different markets by accommodating local user preferences.
This document discusses the concepts of globalization and glocalization. It provides a historical overview of globalization from prehistoric times through the modern period, noting key technological innovations that increased interactions between groups and regions. These include the invention of the wheel, advances in China, European exploration, and increasing interdependence between nation-states. The document defines glocalization as the adaptation of global products and services to local markets, combining global and local aspects.
This document summarizes a research report on the impact of organizational culture on employee retention at Dubai Islamic Bank Pakistan Limited. The report analyzes and compares the culture at DIBPL to its main competitor, Meezan Bank Ltd. It finds key differences in culture between the two organizations that impact employee retention, job satisfaction, and turnover. The report recommends cultural changes for DIBPL to improve employee motivation and retention while maintaining its competitive position. Potential barriers to implementing cultural changes at DIBPL, such as costs and risks, are also examined.
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Strategic Financial Analysis and Design - Finance Report
1. INSTITUTE OF BUSINESS MANAGEMENT
COURSE
Strategic Financial Analysis and Design
Project on
Change & Evolve Private Limited
Submitted to
Sir. Faisal Dedhi
Submitted by
Shiza Arif 20192-25133
Sana Asim 20181-23830
Kubra Akbar 20181-23531
Abdul Aziz Afzal Siddiqui 20181-23465
2. 2 | P a g e
Contents
INTRODUCTION.............................................................................................................................................3
Need of this business................................................................................................................................3
Vision and Mission Statement ......................................................................................................................3
Goals of Change & Evolve Private Limited....................................................................................................4
What we offer? .............................................................................................................................................4
SWOT ANALYSIS............................................................................................................................................4
Strength ....................................................................................................................................................4
Weakness..................................................................................................................................................5
Opportunities............................................................................................................................................5
Threats ......................................................................................................................................................5
Marketing Strategies.....................................................................................................................................5
Promotional Strategy....................................................................................................................................6
Projected Balance Sheet ...............................................................................................................................7
Projected Profit & Loss Account ...................................................................................................................8
COGS Statement ...........................................................................................................................................9
Forecasted Depreciation Schedule ...............................................................................................................9
Forecasted Marketing Expense Allocation ...................................................................................................9
Revenue Assumption in 2020 .......................................................................................................................9
Revenue ......................................................................................................................................................10
Computation for Financial Cost ..................................................................................................................11
Detail of Cash at Bank.................................................................................................................................12
Projected Key Financial Ratios....................................................................................................................13
Ratio Analysis..............................................................................................................................................14
Stock Portfolio.............................................................................................................................................14
Weighted Average Cost of Capital..............................................................................................................15
Rationale for Investing in Stocks.................................................................................................................15
Conclusion...................................................................................................................................................16
3. 3 | P a g e
INTRODUCTION
Employees are invaluable assets of any company and ensuring their excellent mental and physical health
sets them up to perform well. The health and wellness of their employees usually have a direct effect on
the productivity and profits of a company. Many employers understand this and are ready to spend on
such programs.
Change & Evolve Private Limited is a Karachi based employee wellness training startup, whose objective
is to work for the wellness of employees in the organization so that they can be the fruitful resources for
their respective organization.
Basically Change & Evolve Private Limited offer enough services that may seem to be “one-stop shopping”
for employers where they can get the many services related to wellness for their employees.
Need of this business
The American Psychological Association (2018), proposed five factors that can create a healthy work
environment for employees:
a) Work life balance
b) Health and safety
c) Employee growth and development
d) Employee recognition
e) Employee involvement
Happy employees who are satisfied with their job stay motivated and give productive results. Employee
wellness is any workplace health promotion activity or organizational policy designed to support healthy
behavior in the workplace and to improve health outcomes. Organizations that offered more extensive
bundles of wellness programs has the highest outcomes. Employers who improve wellness programs for
worker are likely to have a competitive advantage in the market. Motivated by these factors we initiated
this startup to provide the wellness training to our clients (Corporate employees).
Companies who ignore their employees' well-being are losing money. The healthcare costs of a 60-year-
old with high well-being are lower than those for a 30-year-old with low well-being. Poor employee health
and wellbeing has an indirect effect on productivity through reduced employee engagement levels. The
target/focus of Change & Evolve Private Limited would be to;
a) Reduce the number of sick leaves an employee takes
b) Reduce the number of accidents & other health expenses
c) Reduce the stress level
d) Attract the employees
e) Retain the employees
Vision and Mission Statement
To support employees in making healthy choices with their work and home lives and Mission Statement
is to encourage Habits of wellness, Increase Awareness of factors and resources contributing to wellbeing,
Inspire Individuals to take responsibility for their own health.
4. 4 | P a g e
Goals of Change & Evolve Private Limited
As a company, our ultimate goals are to achieve the following milestones;
a) Employee’s weight reduction
b) Smoking cessation
c) Manage stress level of employees
d) Lower blood pressure or cholesterol levels
What we offer?
a) Fitness programs
b) Healthy eating counseling
c) Education on mental health
d) Education on stress management
e) Vaccination
f) Smoking cessation
g) Weight loss counseling
SWOT ANALYSIS
Strength
Our strength lies in our unique corporate wellness programs designed to suit our various clients. Our
business structure is well positioned to ensure that only competent employees are assigned by us and
that each understands the roles assigned to him/her.
Strength
•Unique Corporate Wellness programs
•Experienced Trainers & Nutritionist
•Best Customer Care Executives
•Focus on Feedbacks
•Motivational Sessions
•Certifications
Weakness
•Competitive Market
•Networking
Opportunities
•Fewer Restraints
•Employer's Awareness regarding
employees' wellness
•New Markets
Threats
•Donwturn of Economy
•Competitor with same product or services
in the same location
•Recessions & Layoffs
SWOT
5. 5 | P a g e
Our trainers & nutritionist have great experience in this kind of thing and are always ready to pass out this
to employees. Our customer care executives are second to none in providing excellent customer care to
our various clients and ensuring that complaints are promptly resolved before a certain period for a better
customer experience for our various customers. We would also plan Motivational sessions for our
customers, not only the employees but the employers also to keep them engaged and motivated. We
would also focus on the feedbacks provided by our customers and would issue certificate to all the
customers that may complete all our programs successfully.
Weakness
Karachi is a tough place to start a business because the city is bustling with different corporate wellness
businesses, and so it might be a bit difficult breaking into this competitive market. However, we have laid
down strategies that will ensure that our customers are aware of our entrance into the industry, plus our
publicity strategies are effective towards ensuring that we are in the spotlight always.
Opportunities
More and more businesses are coming to see the benefit of investing into a corporate wellness plan for
their employees, and so there are plenty of opportunities available for us in this industry. There are also
people who like to buy a customized corporate wellness plan, this is also another opportunity for us.
Threats
The threats that we would likely face while starting or running this business are a downturn of the
economy, as this would see several companies cutting back their investments into corporate wellness
programs for their employees. Another threat could be the likelihood of a competitor with similar
products and services starting up in the same location that we are operating from. In as much as threats
cannot be avoided in a business, we are confident, that we are going to optimize every opportunity that
comes our way.
Marketing Strategies
Every business needs marketing to be able to survive. Marketing allows a business generate revenue for
sustainability, growth and expansion. Marketing also enables a business to get noticed by those who
require the service and is therefore said to serve a dual purpose.
There are several factors that ensure that a business’ marketing effort pays off and these are location and
the kind of marketing strategies drafted. Any serious business knows that to be able to draft effective
marketing strategies, a research has to take place that will enable those in charge of drafting know and
understand the target market they intend to draft these strategies for.
In making sure that our corporate wellness business is preferred amongst the target market here in
Pakistan, we intend to ensure that our marketing executives are empowered to draft and modify
strategies that they feel will enhance their task of attracting the kinds of clients we seek.
We know and understand the importance of technology, and so we would use technology in deploying
our marketing strategies to be able to achieve our vision. Keep them updated on any news in the industry,
thereby allowing us to win a large percentage of the market.
6. 6 | P a g e
Therefore, the marketing strategies that we at Change & Evolve Private Limited intends to adopt for our
business includes.
a) Introduce our Change & Evolve Private Limited to our target customers by sending our
brochures and business cards and offering to meet with the management of our target
companies.
b) Advertise our corporate wellness business in relevant magazines, local newspapers and
on radio.
c) Throw a grand opening party that will attract the notice of our target customers
d) Ensure that our business is listed in online and offline directories
e) Use our social media platforms such as LinkedIn, Facebook, and Google hangout to
market and advertise our business
f) Advertise our business in popular blogs, forums and websites
g) Engage in direct marketing
h) Encourage referrals from our loyal customers
Promotional Strategy
Promotion is very important for a business as it allows the business to create an identity that will ensure
that the brand is projected in a positive manner. Every business no matter how highly placed needs
publicity that will enable it to be seen by its target customers and favorably compete with other similar
businesses. At Change & Evolve Private Limited, we intend to explore all means of publicity for our brand.
Due to the advent of the internet, publicity for businesses have been made easier and cheaper, and so we
would heavily explore all publicity strategies on the internet and mix these with conventional publicity
methods to achieve our intended vision.
The different platforms we intend to leverage on in promoting and advertising Change & Evolve Private
Limited are:
a. Creating a unique website and advertising our products and services there.
b. Creating a unique and attractive logo that will make us easily recognizable in public.
c. Use social media platforms such as Facebook, LinkedIn, Twitter, Email Marketing,
YouTube Channel, YouTube ads, live webinars, and Google Hangouts to promote our
business.
d. Write engaging and educative articles and send them to forums and blogs.
e. Ensure that our business is listed in online and offline directories.
f. Place our flexi banners in strategic locations so that our customers can see and patronize
us.
g. Pass out fliers and handbills in strategic locations.
h. Attending training & well-being sessions at workplace of potential clients & attract them
to acquire our services.
Now, moving towards Financial Data of Change & Evolve Private Limited.
7. 7 | P a g e
Projected Balance Sheet
% Amount % Amount
Cash at Bank 51% 1,964,200 77% 13,352,177 26%
Account receivables 29% 1,125,000 18% 3,060,000 -12%
Office Supplies 1.6% 60,000 0.9% 156,000 -0.7%
Total Current Assets 82% 3,149,200 96% 16,568,177 14%
Office Equipments 18% 700,000 4% 700,000 -14%
Total Assets 100% 3,849,200 100% 17,268,177
% Amount % Amount
Equity 52% 2,000,000 12% 2,000,000 -40%
Retained Earnings 11% 406,617 55% 9,529,521 45%
Total Equity 63% 2,406,617 67% 11,529,521 4%
Long-term Loan 10% 400,000 2% 300,000 -9%
Accumulated Depreciation 5% 175,000 2% 350,000 -3%
Account payables 23% 867,583 29% 5,088,656 7%
Total Equity And Liabilities 100% 3,849,200 100% 17,268,177
- -
Horizontal & Vertical analysis are also given for better understanding of financial
position of the Company.
2020 2021 Horizontal
Analysis
Equity And Liabilities
2020 2021 Horizontal
Analysis
Assets
CAPEX 2020
Nature Particulars Amount in PKR
One Time Laptops QTY 02 200,000
One Time Office Furniture 500,000
700,000
8. 8 | P a g e
Projected Profit & Loss Account
% Amount % Amount
Revenue 100% 11,250,000 100% 30,600,000
Cost of Revenue 50% 5,575,000 37% 11,224,000 -12.88%
Gross Profit 50% 5,675,000 63% 19,376,000 12.88%
Administrative Expenses
Office Rent 16% 1,800,000 7% 2,160,000 -8.94%
Marketing 13% 1,440,000 8% 2,400,000 -4.96%
Office staff salaries 12% 1,320,000 5% 1,518,000 -6.77%
Utilities 2% 180,000 1% 204,000 -0.93%
Depreciation 2% 175,000 1% 175,000 -0.98%
Company Registration Fee 1% 100,000 0% - -0.89%
45% 5,015,000 21% 6,457,000 -23.48%
EBIT 6% 660,000 42% 12,919,000 36.35%
Financial Cost 0.8% 87,300 0.2% 69,840 -0.55%
Profit Before Tax 5% 572,700 42% 12,849,160 36.90%
Tax @ 29% 1% 166,083 12% 3,726,256 10.70%
Net Income 4% 406,617 30% 9,122,904 26.20%
Horizontal & Vertical analysis are also given for better understanding of
financial statements of the Company.
Horizontal
Analysis
AMOUNT IN PKR
2020 2021Particulars
9. 9 | P a g e
COGS Statement
Forecasted Depreciation Schedule
Forecasted Marketing Expense Allocation
Revenue Assumption in 2020
Nature Particulars Amount in PKR Yearly Cost 2020 Yearly Cost 2021 Details
Yearly cost Cost of work-out accessories 500,000 500,000 550,000 Exercise accessories include small equipment, gear, music devices, dumbbell sets, fitness ball & uniforms etc.
Monthly cost Cost of Instructor 90,000 1,080,000 1,242,000 02 Instructors (12 Months in 2020)
Monthly cost Cost of Instructor 45,000 405,000 621,000 01 Instructor (09 Months in 2020)
Monthly cost Cost of Instructor 90,000 540,000 1,242,000 02 Instructors (06 Months in 2020)
Monthly cost Cost of Assistant Instructor 80,000 960,000 1,104,000 04 Assistant Instructors (12 Months in 2020)
Monthly cost Cost of Assistant Instructor 40,000 360,000 552,000 02 Assistant Instructors (09 Months in 2020)
Monthly cost Cost of Assistant Instructor 80,000 480,000 1,104,000 04 Assistant Instructors (06 Months in 2020)
Yearly cost Cost of Core Consultants 400,000 400,000 440,000 01 Nutritionist & Physician Consultant
Yearly cost Instructors Subscriptions-memberships Fee 350,000 350,000 350,000 Instructors are registered with The Institute of Mind Sciences & Classical Yoga.
Monthly cost Further Cost of Instructor 155,250 - 1,863,000 Further 03 Instructors will be hired in 2021
Monthly cost Cost of Assistant Instructor 138,000 - 1,656,000 Further 06 Assistant Instructors will be hired in 2021
Yearly cost Licenses & permits 500,000 500,000 500,000 As proper licenses and permits are necessary.
Total 2,468,250 5,575,000 11,224,000
2020 2021 2022 2023
Opening Balance 700,000 700,000 700,000 700,000
Accumulated Depreciation - 175,000 350,000 525,000
Add: Depreciation For The Year 175,000 175,000 175,000 175,000
Closing Balance 525,000 350,000 175,000 -
Particulars
Amount In PKR
2020 2021
Social Media (Facebook, LinkedIn, Twitter) 20% 288,000 480,000
Print Media (Magazines & Local newspapers) 15% 216,000 360,000
Webinars & YouTube ads 10% 144,000 240,000
Banners, brochures etc. 10% 144,000 240,000
Email,blogs,forums & websites ads 5% 69,980 120,000
Well-being Sessions 40% 576,000 960,000
1,440,000 2,400,000
Amount In PKR
%Marketing Exp. Allocation
Client
1 to 3 months -
3 to 6 months 5
6 to 12 months 10
Period
10. 10 | P a g e
Revenue
Clients Per Month in PKR Yearly Revenue
Engro Fertilizers Limited 150,000 1,350,000
Citi Bank 150,000 1,350,000
P& G 150,000 1,350,000
Byco Petroleum 150,000 1,350,000
Unilever 150,000 1,350,000
Sanofi-Aventis Pakistan Limited 150,000 900,000
TCS Pvt. Ltd 150,000 900,000
United Energy Pakistan Ltd 150,000 900,000
Shell Pakistan 150,000 900,000
National Foods Limited 150,000 900,000
Total 1,500,000 11,250,000
New clients shall be charged fixed amount per month i.e., 150,000 up to 50 participants.
Clients Per Month in PKR Yearly Revenue
Engro Fertilizers Limited 180,000 2,160,000
Citi Bank 180,000 2,160,000
P& G 180,000 2,160,000
Byco Petroleum 180,000 2,160,000
Unilever 180,000 2,160,000
Sanofi-Aventis Pakistan Limited 180,000 2,160,000
TCS Pvt. Ltd 180,000 2,160,000
United Energy Pakistan Ltd 180,000 2,160,000
Shell Pakistan 180,000 2,160,000
National Foods Limited 180,000 2,160,000
Philips Electrical Industries Limited 150,000 1,800,000
Draz 150,000 1,800,000
Faysal Bank Limited 150,000 1,800,000
Atlas Honda Limited 150,000 1,800,000
EFU General Insurance Limited 150,000 1,800,000
Total 2,550,000 30,600,000
2020
2021
Assumption: Each Client shall be charged fixed amount per month i.e., 150,000 up to 50
participants.
Assumptions: Each previous client has to pay PKR. 150,000 + 20% incremental amount
as per agreement so it would be PKR. 180,000/-
11. 11 | P a g e
Computation for Financial Cost
Amount of Loan 500,000
Interest Rate 17.46% Kibor+4% (13.46%+4)
Assumptions:
1- Loan is acquired for five years at Tenor 1- Year Offer rate.
2- Loan is acquired on 1st January, 2020.
Years
Outstanding
Loan Amount
Yearly Principal
Repayment
Yearly Interest
Expense
Total
repayment
2020 500,000 100,000 87,300 187,300
2021 400,000 100,000 69,840 169,840
2022 300,000 100,000 52,380 152,380
2023 200,000 100,000 34,920 134,920
2024 100,000 100,000 17,460 117,460
500,000 261,900 761,900
3- Each year interest expense would be calculated on the rate of 1st January, 2020 as
January 01 was not available so we took rate of 2nd January, 2020.
12. 12 | P a g e
Detail of Cash at Bank
Assumptions
Tax @ 29% is payable in current year and will be paid in next year.
2020 2021
Receipts
Opening Balance - 1,964,200
Loan 500,000 -
Capital Injection 2,000,000 -
Cash received From Revenue 10,125,000 27,540,000
10% cash received of Last year A/C Rec - 1,125,000
12,625,000 30,629,200
Disbursements
Expenses paid during the year 9,800,800 16,213,440
Expenses paid of last year 867,583
Yearly Principal Repayment 100,000 100,000
CAPEX 700,000 -
CA - Office Supplies 60,000 96,000
10,660,800 17,277,023
1,964,200 13,352,177
2020 2021
A/C Payables
Tax @ 29% 166,083 3,726,256
Vendors of COGS 10% 557,500 1,122,400
Vendors of Marketing Exp 10% 144,000 240,000
Total 867,583 5,088,656
A/C Receivables
10% of Revenue 1,125,000 3,060,000
Particulars
Amount in PKR
Particulars
Amount in PKR
90% of the revenue earned by the company is received in the year in
which it is accrued. The remaining 10% is receivable in the next year.
COGS & Marketing Expenses are paid 90% in cash in the current year &
10% are payable in the next year. Remaining all expense are paid 100% in
the current year.
13. 13 | P a g e
Projected Key Financial Ratios
2020 2021
Income Statement
Revenue 11,250,000 30,600,000
GOGS 5,575,000 11,224,000
Gross Profit 5,675,000 19,376,000
EBIT 660,000 12,919,000
PBT 572,700 12,849,160
NI 406,617 9,122,904
Balance Sheet
Cash & Equivalents 1,964,200 13,352,177
Account receivables 1,125,000 3,060,000
Total Current Assets 3,149,200 16,568,177
Total Fixed Assets 700,000 700,000
Total Assets 3,849,200 17,268,177
Current Liabilities 867,583 5,088,656
Account payables 867,583 5,088,656
LT Debt 400,000 300,000
Total Equity 2,406,617 11,529,521
Net Debt 400,000 300,000
Interest Expense 87,300 69,840
Key Ratios 2020 2021
Ratios
Gross Margin 50% 63%
EBIT Margin 6% 42%
Net Profit Margin 4% 30%
Times Interest Earned-Times 8 185
Current ratio 3.63 3.26
Receivable Turnover in Days 37 37
Payable Turnover in Days 57 165
Return on Assets 17% 75%
Return on Equity 17% 79%
Debt to Total Assets 10% 2%
Debt to Equity 17% 3%
Total Asset Turnover 2.92 1.77
Amount in PKR
Key Financials
14. 14 | P a g e
Ratio Analysis
To gain financial insights in the company, we will perform an analysis of the financial ratios. It is a
quantitative analysis of the profitability, liquidity and efficiency of the company. To analyze the
profitability of Change & Evolve Pvt. Ltd, we will evaluate the three ratios. Gross Profit Margin, EBIT Margin
& Net Profit Margin. The GP Margin has improved by 13% in 2021 which is mainly due to the increase in
revenue, as we project an 50% increase in the number of clients in 2021. The EBIT Margin has also shown
remarkable improvement in 2021. Even though there is an increase in operating expenses, but the high
volumes of revenue have kept us profitable. The NP Margin has also improved by 26% in 2021 as all
expenses are decreasing proportionately as well as loan installment has also decreased. Overall, the
profitability ratios show a very positive picture for our company as we can earn high profits with high
volumes of revenue. For a new company, the results of 2020 are also very encouraging.
For a new company like ours, it is unlikely to start a venture without any loans or borrowing. We have also
taken a 5-year bank loan of Rs. 500,000 at Kibor+4%. We are very fortunate that the loan installments can
be easily paid on time as our interest coverage ratio is 8 times in 2020 and will increase to 185 times in
the following year. This shows our strong capability to pay the loan on time. The current ratio of our
company is not favorable as we have Rs.3 of current assets for Re. 1 of current liability. This is mainly due
to the excessive cash at hand we have. This is always also a positive as we have running cash for our day
to day expenses.
Furthermore, we have a favorable Receivable Turnover of 37 days. This means that we can recover our
payments from our clients within 37 days. However, we expect delays in making payments to our debtors,
i.e. tax authorities and vendors. This has resulted in a Payments Turnover of 57 days. The 20 days gap
between the two helps us in maintaining our cash levels. Our assets are giving us a return of 17% on
operating profit. This shows efficient use of the assets. We expect this to increase to 75% in 2021 in the
ROA ratio. The ROE is also expected to increase by 62% in 2021, which is basically due to the remarkable
increase of 26% in our Net Income. Our debt portfolio is minimal, which is the key reason behind favorable
Debt to Total Assets and Debt to Equity ratios. They are to give a return of 10% and 17%, respectively.
Further, we even expect a fall in them in 2021. Even the TAT is favorable as it is expected to decrease by
1.15 times in 2021. This is mainly due to the high volumes of cash at hand.
Stock Portfolio
Assumption: Amount to be invested: PKR 500,000
Company Market Price (Po) Target Price (P1) DPS (D1) Dividend Yield Rate of Return No. of shares Market Value (eq) Dividend Weights
LUCK 436.98 530 3 0.69% 21.97% 500 218,490 1,500 25%
ENGRO 354.28 373 35 10.00% 15.38% 500 177,140 17,714 25%
FFC 102.35 115 10.8 10.55% 22.91% 1,000 102,350 10,800 50%
2,000 497,980 100%
2,020
(D1+P1-P0)/P0
LUCK - r1 22%
ENGRO - r2 15%
FFC - r3 23%
rB = 20%
wB = 20%
wBrB = 4%
15. 15 | P a g e
Weighted Average Cost of Capital
Rationale for Investing in Stocks
Due to our amateur experience in the stock market, we have decided to invest PKR. 500,000 in stocks of
the Companies. We believe that the current market situation provides us a good opportunity to invest in
the stock market as the share prices are currently low. The interest rates are also falling and are expected
to fall further, therefore, stock market is a viable option for investments. We tend to invest for the long
run and enjoy dividend payouts from this investment. Out of the 3 stocks chosen by us, only Lucky Cement
does not offer favorable dividend payouts, however, the company is Pakistan’s biggest cement producer
and has a debt-free balance sheet as compared to its peers – this gives it a huge advantage over its
competitors and we expect an increase of 21% in its share price by December 2020. This is the only stock
in our portfolio on which we tend to enjoy capital gains in the long run. Fauji Fertilizer and Engro
Corporation are both offering high dividend yields. They are a safe play as the fertilizer sector will be least
affected by the current crisis. Fertilizer is a necessary commodity for an agricultural economy like Pakistan.
The falling prices of crude oil will also be beneficial for our chosen companies and we expect that they will
use it to the best of their advantage. After analyzing our financial ratios, we are hopeful that our venture
will be profitable and a success for the whole team.
Debt 500,000
Equity 2,000,000
Total Captial 2,500,000
% of Debt 20%
% of Equity 80%
Investment in Business 2,000,000
Investment in Stock Market 500,000
Total Investment 2,500,000
% of Investment in Business - wA 80%
% of Investment in Stock Market - wB 20%
Return on Assets 46%
r = wArA + wBrB
wArA = 37%
wBrB = 4%
r = 41%
Total Return of Change & Evolve Private limited
WACC
16. 16 | P a g e
Conclusion
Startups tend to be risky, but it is said the more the risk, higher the profits. As 4 individuals trying to excel
in our respective fields, we decided to start this venture together in which we can use our current
experience and continue our learning curve. Yes, we have invested our savings into this venture, but we
predict that this business is the need of the hour. As the world evolves, companies treat employees not
only as a cost but as capital. To get the best results from them, they invest in their employees. In the
current situation, when the world economies are moving towards a recession, many employees will face
stress and anxiety of job loss and insecurity. We, at Change and Evolve Private Limited will offer products
which will help the employees to get rid of their worries and be more efficient, effective and hence, more
productive. We have also invested in the stock market, even though it’s a small amount now but we tend
to inject more as Change and Evolve Private Limited starts to reap in the profits.