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Business plan on orange juice (New Business Plan ) 6th Semester

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The size of the Juice Industry in Bangladesh is huge. This sector is also providing 90% of the total Juice requirement of the local market. Local firms manufacture about 150 brands of Juice in different types. One of the major segments of this market is the market of Orange juice. In foreign market this types of juice is available but in our local market the Orange Juice is not wide. We focus on the potential sector of this segment. Our company Warriors Corporation launches a Orange Juice which name is ‘Crash Orange’ on March 10, 2014.
WCLs product strength are--Potential Product Idea (Orange Juice), Good Product Quality, Reasonable Price for all classes of consumer, Attracting Packaging Design, Large Area Coverage within 5 Years, Huge Promotion (use Magazine, Newspaper, television, and so on), Strange Distribution Channel, This kind of products sold quickly at relatively in low price.
Though the absolute profit will make on these products is relatively small, they are sold generally in large quantities. The market of these products is quite priced sensitive.
We form our business as a “partnership” business. The types of our business are Manufacturing Juices, Distributor, / Retailer. There will be 5 partners in WCL respective posts.
In the beginning time WCL will cover maximum district level by distributing their ‘Crush Orange’. WCL will distribute their product through 22 depots. After one year WCL will cover the upazila level.
Initial financing requested of the company is 21, 75, 24,000 taka loan to be paid off over five years from Islami Bank Bangladesh Ltd. This debt will cover office space, office equipment, and for supplies 8 TATA and 2 HINO truck, advertising and selling cost. The partners provided 42727928 taka jointly. So, the total cost of the project estimated at 759050000 taka.
It will promote its product through TVC, print media, Radio, and other promotion strategies.
So CL is wanted to get no. 1 position in Bangladeshi juice market and it will try its best to get its goal.

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Business plan on orange juice (New Business Plan ) 6th Semester

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  2. 2. 3 Md. Noor Imran Director of Production Rasel Ahmed Bappy Director of Marketing Rehnuma Nishat Mahi Director of HR & Admin Abu Hossain Md. Shayed Director of Sales Kallal Kumar Mondal Director of Accounting & Finance
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  7. 7. ≡ Name:Warriors Corporation Limited ≡ Address: Office:ABC Tower, Motijheel, Dhaka- 1209. ≡Plant: Mawna , Gazipur, Bangladesh. ≡ Website: www.warriors.bd.com ≡ Number of owners: 5 member ≡ Product type: Orange Juice ≡ Brand name: Crush Orange Juice 8
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  11. 11.  External Sources  newspapers  employment agencies  colleges and universities • preliminary Screening • Final Selection • Employment Test 12
  12. 12. • Will get 3 Month training 13
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  14. 14. • Product. • Price. • Place. • Promotion. • Others. 15
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  16. 16. ۩ Customer survey. ۩ Competitor survey. 17
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  18. 18.  Product Quality 19
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  20. 20. Distribution Strategy: Distribution Channels 21
  21. 21. Print Media: Name of the newspaper Pa ge Frequency Cost 5th Twice a week 5000 00 5th Twice a week 5000 00 5th Twice a week 5000 00 3rd Twice a week 5000 00 1st Twice a week 5000 00 1st Twice a week 4000 00 1st Twice a week 4000 00 22
  22. 22. Name of channels Frequency Cost 20 times a month 1200000 20 times a month 1000000 20 times a month 1000000 20 times a month 1000000 20 times a month 1000000 20 times a month 1000000 20 times a month 1000000 20 times a month 1000000 20 times a month 1000000 20 times a month 1000000 23
  23. 23. TV Advertisements 24
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  28. 28. Product Types Cost of Production Cost of Sales Gross Profit per unit Retailer price Market price (M.R.P) Crush orange juice(250ml) 10 6.75 8.25 25 28 Crush orange juice(500ml) 16 10.8 13.2 40 44 29
  29. 29. Sales forecasting for 12 month of FCL: Delivery Per shop: 15x 20 (pc)= 300 tk (150ml) 25x20 (pc)= 500 tk (250ml) 40x5 (pc)= 200 tk (350ml) 65x10 (pc)=650 tk (1 litter) 30
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  31. 31. Crush orange Cane Crush Orange Family Pack 32
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  35. 35. ≡ Design Capacity: 10764930 ≡ Effective Capacity: 10050000 ≡ Actual Capacity: 10500500 36
  36. 36. Select a process Study and Documentation Seek ways to improve it Design a improve process Evaluate Documentation 37
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  38. 38. Warriorss Corporation Income Statement As on December 31, 2014 Sales 168,30,00,000 Cost of goods sold: Purchase 71,32,00,000 Goods available for sell 71,32,00,000 Ending inventory 20000000 Total cost of goods sold (69,32,00,000) Gross profit 98,98,00,000 Operation expenses: expense selling expense 29,24,50,000 Administration expense 23,,83,00,000 Depreciation expense 22,83,00,000 Amortization expense Income from operation (75,90,50,000) Interest expense (2,17,52,400) Income before income tax 20,89,97,600 Income tax expense (25,24,50,000) Net Loss (4,34,52,400) Income Statement of WCL 39
  39. 39. Assets Current Asset Cash 10000000 Account Receivable 42,07,50,000 Prepaid Expense 100000 Total Current Asset 43,08,50,000 Fixt Asset Land 5445000 Building (Plant) 6000000 Depots 6400000 Air culler 1760000 Fan 1475000 Delivery van and Truck 37500000 Machine 50000000 Furniture (plant 600000 + Office 1000000) 1600000 Generator 1200000 Deep Machine 220000 Electric Miter 1360000 Total Fixt Assets 112960000 Total Asset 54,38,10,000 Liabilities and Owners Equity Current Liabilities Account Payable 75,00,000 Notes Payable 72,30,500 Taxes Payable 70,14,000 Installment Long term Debt 54,46,000 Total current liabilities 2,71,90,500 Long-term Liabilities Bank Loans 21,75,24,000 Total Liabilities 24,47,14,500 Owners equity Common Shares 29,90,95,500 Total Liabilities and Owners Equity 54,38,10,000 Balance Sheet of Friends Corporation 40
  40. 40. Break Even Analysis Fig: Break-even point Friends Corporation Break Even Points 41
  41. 41. Break Even Analysis Fixed Cost =5648000 Selling Price per Unit =15 Variable Cost per Unit =7.13 Fixed Cost Break Even Quantity = Selling Price per Unit- Variable Cost per Unit 5648000 = 15-7.13 Break Even Quantity =717662.0076 (Break Even Unit) Break Even Sale = Break Even Unit * Selling Price per Unit =10764930 (Break Even Sale) 42
  42. 42. Ratio Analysis 43
  43. 43. Total Current Assets Current Ratio = _______________________ Total Current Liabilities For 2014, Current Ratio = 15.85 For 2015, Current Ratio=7.35 For 2016, Current Ratio= 9.49 For 2017, Current Ratio= 10.434 For 2018, Current Ratio= 5.284 44
  44. 44. Current Assets - Inventory– Prepaid Expenses Acid Test Ratio = Current Liabilities For 2014, Acid Test Ratio = 15.84 For 2015, Acid Test Ratio = 7.034 For 2016 Acid Test Ratio =9.497 For 2017, Acid Test Ratio =10.1643 For 2018, Acid Test Ratio =5.159 45
  45. 45. • Debt to Asset Ratio = .82 • For 2012, Debt to Asset Ratio = 10.67 • For 2013, Debt to Asset Ratio = 0.836 • For 2014, Debt to Asset Ratio = 0.8099 • For 2015, Debt to Asset Ratio = 0.894 Total Debt Total Current Liability =3. Debt equity 46
  46. 46. Cost of Goods Sold Inventory Turnover Ratio = Average Inventory For 2014, Inventory Turnover Ratio= 0 For 2015, Inventory Turnover Ratio= 9.58 For 2016, Inventory Turnover Ratio= 10.63 For 2017, Inventory Turnover Ratio= 9.52 For 2018, Inventory Turnover Ratio= 7 47
  47. 47. Account Receivables *365 Average Collection Period = Annual Sales For 2014, Average Collection Period = 91.25 For 2015, Average Collection Period = 91.25 For 2016, Average Collection Period = 91.25 For 2017, Average Collection Period = 91.25 For 2018, Average Collection Period = 91.25 48
  48. 48. Operating Expense Return on asset = Total Asset For 2011, Return on asset =1.78 For 2012, Return on asset = 1.68 For 2013, Return on asset = 1.2 For 2014, Return on asset = 1.206 For 2015, Return on asset = 1.1106 49
  49. 49. Net Income Return on Equity = Owner’s Equity For 2014, Return on Equity or Investment = 0.145 For 2015, Return on Equity or Investment = 0.1087 For 2016, Return on Equity or Investment = 0.03 For 2017, Return on Equity or Investment = 0.1445 For 2018, Return on Equity or Investment = 0.2845 50
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  51. 51. STRENGTH New Product Idea (Crush Orange juice). Good Product Quality. Attracting Packaging Design. Large Area Coverage within 5 Years. Huge Promotion (use Magazine, Newspaper, television, and so on). Strange Distribution Channel. 52
  52. 52. WEAKNESS  Unavailable transport facility for home service  Insufficient Goodwill  Most of the people are not familiar with ‘Crush Orange’ juice 53
  53. 53. New business concept Changing customer needs Technology advancement we can aware people about our Brand 54
  54. 54. THREAT Cost of technology investment Political Unrest Inflation Natural disaster 55
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