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Acknowledgement
First word for my Almighty who toughens us to take the challenge to head forward…and then the prayers of the loveliest thing created on the earth-Parents!!! And we are so obliged to our great teachers Mr. Afzal Tarrar, Dr. Nadeem Ahmed Bashir and Mr. Khurram Azizi, who held our fingers throughout the stab and took us on the stage we are right now…!!! And undoubtedly a great effort of our whole team that was there to tie up the exertion… Thanks to Almighty once again who fortified us by providing such serving hands…!!!

Table of Contents:
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Executive Summary ……………………………………………………………. 05 Business Description …………………………………………………………… 06 General Business Description ……………………………………………............ 06 Industry Information …………………………………………………….. ………06 Name of Business ……………………………………………………….. 09 Vision Statement ………………………………………………………… 09 Mission Statement ……………………………………………………….. 09 Goals and Potential of the business ……………………………………… 10 Values of Business ………………………………………………………. 10 Uniqueness of Product or Service ………………………………………...10 SWOT Analysis of Tahzeeb .…………………………………………….. 13 Competitive strategy ……………………………………………………... 14 Positioning Statement ……………………………………………………. 14 Customers Benefits ……………………………………………………..... 14 Future Products ……………………………………………………………15 Market Strategy ………………………………………………………………….15 Target Market (Customers Identified) ...……………………………….… 15 Demographic Features ………………………………………………….... 15 Promotion Mix ……………………………………………………………………16 Advertisement ………………………………………………………………16 Sales Promotion …………………………………………………………….16 Direct Marketing ……………………………………………………………17 Pricing …………………………………………………………………………….. 17 Cost-Based Pricing …………………………………………………………17 Value Based Pricing ………………………………………………………. 18 Competition-Based Pricing ……………………………………………….. 18 Pricing Strategy of Tahzeeb ………………………………………………. 18 Sales and Distribution …………………………………………………………… 19 Place Decision ……………………………………………………………. 19 Design of our outlet ………………………………………………………. 20 Layout of Tahzeeb ……………………………………………………....... 20

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Competitors’ Analysis …………………………………………………………... 21 Porter’s Five Forces Model ……………………………………………………... 22 Management Plan ………………………………………………………………… 24 Operations Plan …………………………………………………………………… 26 Proximity to Suppliers ……………………………………………………… 26 Access to Transportation …………………………………………………… 26 Operations Breakdown ………………………………………………………27 Research Report …………………………………………………………………….28 Financial Plan …………………………………………………………………….... 47 Requirement Sheet ………………………………………………………… 47 Financial Statements of First Year ………………………………………….. 49 Financial Statements of Second Year ……………………………………….. 53 Financial Statements of Third Year ………………………………………… 56 Financial Ratios …………………………………………………………….. 59 Break Even Analysis ……………………………………………………….. 60 Sales Growth Rate ………………………………………………………….. 61 References …………………………………………………………………………..62

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Executive Summary
Feelings don’t need words, but expression is obligation!!! This plan was something imperative for us. The factual reason for the development of this plan was to bring the magnificence of our ancient civilization and culture, back, which not only had a rich heritage but was even artistic. Our aim is not only to provide quality accessories with ceaseless style but to promote our own culture, our tradition our customs and to fill the colors in the way of wearing. The range we aspire to offer encompass hand bags, mobile pouches, khaddi wear and embroidery wear and also traditional jewelry. In shoes collection, we are going to provide a variety of hand made shoes i.e. khussas, kola puri and chapels. In clothes, we are dealing in two types Khaddi wear and embroidery wear. Khaddi clothes will simply purchased from Lahore and Gujranwala wholesale market and sell those directly to our customers. For second category i.e. embroidery, we will be providing the service of customization to our customers, embroidery of different styles from the culture of our four provinces. We will be designing those embroided clothes according to their choice. Bags will be available in both forms i.e. hand made as well as machine made. Bags will be of different sizes. Traditional and modern studded jewelry will also be available in our outlet. We have planned some future products that include cushions, scarfs and children outfits. We will have only one supplier for all our purchasing which is known in marketing terminology as “System Selling”. Our customers won’t have to explore the sphere out of city. We’ve preplanned the promotion campaign and the budget we’ll follow. For promotion and advertising, we will use brochures, radio and cable advertisements. Operations and management plan is also defined. As tahzeeb is on outlet and small scale business, so its management and operation plan are not much complicated. Research is very important before starting any business, so we’ve also conducted a survey through which we came to know the demand level, and some most important variables. The main idea behind our business plan was to provide ease and convenience to female because it is observed that this is considered an important factor and after results of survey it is also proven right that women give much preference to the factor of convenience while shopping. Financial plan is also described in detail. Projected financial statements of three years are given. We have taken very watchful steps to finally ascertain this business plan.

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General Description of Business:
The business we aimed to initiate in Gujranwala is to open a retail outlet. Outlet is going to provide traditional ladies clothes, bags, traditional jewelry and shoes. In Gujranwala, it will be the first retail store where customers will have a variety in traditional clothes, shoes, jewelry and bags. In clothes, we will deal in two kinds i.e. embroidery wear and Khuddi wear which will represent our all province traditional culture; Shoes specifically will also be available in two types i.e. Kola puri chapel and Khusas. Bags will have a large variety and will be hand made as well as machine made keeping current trends in mind. Artificial studded and traditional Jewelry will also be accessible. We want to open our outlet in Satellite Town main market Gujranwala. We will take a shop on rent in Green Center. As this is a very big market and easily accessible for all citizens. This market has also potential for this business, because in satellite town, specifically these items are not available in a single shop. In the existing location, we will develop a themed décor related to the purely Eastern and Pakistani culture. Females of all age groups will definitely feel attraction because outlet will have variety of these three items according to all age groups. All the females whether they are from any background will feel comfort and ease to visit the store due to the presence of sales girls. We are going to give some additional offer for our customers to have interchangeable bags and some specific clothes.

Industry Information:
Fashion involves evaluation of an idea, practice or product or as a form of collective behavior; hence affects many dimensions of human life (Schrank, 1973). In fact the consumer behavior is the main element which leads to changes in fashion industry. Consumer behavior can be defined as ‘the process and activities that people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires” (Belch & Belch, 1993. p. 115). Forecasting the fashion consciousness of the market is difficult as it is erratic and unpredictable (Hayes and Jones, 2006). The study of fashion in dressing is broader than any other field because clothing is highly noticeable. Dressing is a symbol of identity and a basic means of communication among people of commonality (Malcom, 1996). Fashion in general is defined as an expression of the times. This extensive construal fits l 6

well with the current consumer society in which various facets of the people's lifestyles are ways for reflecting social status and success. Fashion trends provide an insight to the style and color choices that the fashion product will take in their ultimate form. Textiles and apparel were the most prominent symbols of early interaction between East and West (Martin & Koda, 1994). Textile and firms tend to focus on market niches (Parrish, Cassill and Oxenham, 2006). The global and competitive era compel apparel manufacturers and vendors to be flexible, well-organized, better off in trend prediction, invention and selling of apparel (Kinkade, Regan & Gibson, 2007) yet many companies in apparel industry still follow primitive production and sale system (Pitimaneeyakul et al., 2004). Anderson, Warfield and Barry (1987) suggested cooperation between textile and fashion industry. Individuals and society both are equally responsible for the change in fashion (Cholachatpinyo et al., 2002). Fashion is an industry covering all walks of life. In the era of modern times, there has been rapid growth and change in the fashion industry. Fashion includes the frequently changing habit not only in the clothes, shoes and sunglasses but also in jewelry and gift items. The fashion industry has been taking too many things into fashion now days apart from men and women cloth, sunglasses, gift items and jewelry. Men and women, young and old are going crazy about their outfits and they want to look smart and up-to-date. There are many factors that help to establish the identity of a nation despite all these influences. Be it the language or the sense of dressing, there are many more things, which speak volumes about the culture of a particular nation. With the effects of globalization; currently, Pakistan also tends to be heavily influenced with cultures from the west. One can even witness a mixture of various cuisines out here. Even then, most families stick to their traditions and customs. This is probably why you can find a blend of the modern cultures and traditions in Pakistan. One feature still common in Pakistan is the traditional clothing seen out here. There are many women and men who prefer to stick to traditional clothing of Pakistan although a majority wears western attire. Youth specifically females have gone passionate about their outfits and style at different occasions of life. They want to adopt modern fashion with old and traditional touch. Embroidery clothes are preferred as they can wear on both casual and formal events. So customers who don’t spend much money on wearing can take advantage from these types of clothes. Shoes industry is also

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showing a great change. Previously, limited and mediocre styles and designs were available because people were not interested in paying more money on a lot shoes. Means clothing was considered important only and two or three pairs of shoes were bought with a variety of dresses but now the trends have changed. With the entry of designers in shoe industry, people have come to know the importance of designs, varieties and styles of shoes according to their clothing. Shoes industry is also growing rapidly with emerging trends. Besides, availability of shoes in variety of designs, importance of traditional shoes has not become low. On certain events, females prefer khussas and kola puri chapels. Khussa is the choice of aged females also because they feel comfort with it. A large number of females who use these slippers and Khusas with casual dresses also. Basically fashion industry includes all these three items extensively important. Overall growth of fashion industry means growth of clothing industry, shoe industry and bags industry also. Bags are now considered an important part of dressing. This industry in Gujranwala has a great potential as well. Because the people of Gujranwala are becoming aware the new and changing trends in fashion. They have also known the importance of modern dressing in one’s life. With modern dressing, they can never forget the beauty of traditional dressing. They want variety in traditional shoes, clothes, jewelry and bags according to current fashion. Besides all these things, purchasing power of customers has also improved and they are now willing to spend more money for good dressing and styles.

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Name of Business:
The name of our business is “Tahzeeb” which will represent that we are going to provide our customers with such products which will be according to our traditional culture.

Logo:

Slogan:
“Revival of Heritage”

Vision Statement:
“To give the variety of traditional wearing for the women of modern era, that is affordable, accessible and reliable”.

Mission Statement:
“To access, advocate and act for the improvement in handicrafts that promote a strong cultural system and work for the preservation of culture heritage and provide the convenient and delightful experience for women”.

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Goals and Potentials of the business:
Like every business, we have definitely certain goals which we want to achieve to make our business successful. • • To earn maximum profit. To provide the customers comfort while shopping like no one will face inconvenience regarding sales persons as sales girls will be there to deal with the customers. • • • To provide ease and variety to the customers so that they can buy according to their choice. To achieve maximum market share. To provide handicrafts with a mixture of traditional and modern styles.

Values of the Business:
Our business is going to be stand on some particular values that include: • • • • We will consider our customer to be always right and our customers are respectable for us. Employees will be paid in time and no discrimination will be made. We will try to provide friendly environment to our customers and also employees. Fair price will be charge.

Uniqueness of Product or Service:
We are mainly dealing in four main products: • • • • Ladies Clothes Ladies Bags Ladies Shoes Jewelry

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Ladies Clothes:
In ladies clothes, we will specifically deal in hand made clothes. Embroidery wear and Khuddi wear are our main focus which will also be customized according to the demand of customers. We are offering various types of embroided kurtas which will be representing culture of our four provinces. Customers’ preference will be considered more.

Ladies Bags:
Bags will be available in both forms i.e. hand made as well as machine made. Bags will be of different sizes. Hand made mobile pouches and wallets will also be there.

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Ladies Shoes:
Shoes will be available in three varieties: • • • Kola puri Chapel Khussas

In Satellite town market, this will be the first outlet which will involve in selling these three items under one roof. Also the sales persons dealing there will be sales girls, which will be for the first time in Gujranwala, involvement of sales girls in this type of business.

Jewelry:
Jewelry will be available in traditional style which we will purchase from different wholesale markets. Artificial Studded jewelry will also be offered, which we will be providing only on the demand of customers.

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SWOT Analysis of Tahzeeb:
In a SWOT analysis you identify strengths, weaknesses, market opportunities for your company, and threats to your business. One way to use the analysis it to then develop marketing strategies that will minimize the affect of weaknesses on your business while maximizing your strengths. Ideally, you will match your strengths against market opportunities that result from your competitors’ weaknesses or voids.

Strengths:
• Our quality and differentiation is our main vigor!!! Our architecture will be another depicter of our essence to create an antique stroke… we’ll not only provide our customers their quality demanded and designing but the atmosphere…we’d be the pacesetters in the city to endorse our culture and art at this extent. • • Convenient shopping facilities for women, as dealers are only females. Availability of clothes, shoes, bags and jewelry with the blend of traditional culture and current fashion.

Weaknesses:
• • • No brand name in the beginning. Tahzeeb is not providing the facility of warranties. General perception about handicrafts is that these are not very much durable.

Opportunities:

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We’ll have certain opportunities in the region we’re focusing. We may increase our products to a long extent. There might be a long range of cushions, patch-worked scarfs, children outfits, and many more things which can be made by the spare material. Hence the demand of handicrafts is so sky-scraping and many striking decorative items might be made with the traditional tinge there is further range of home accessories that might be grappled…!!!

Threat:
There is a great threat of designs, which are our main dynamism, to be copied with a cheap material and stumpy finishing and resulting in a low price. But imaginative intelligence doesn’t fuss…!!! We’re creating something spanking new each moment and our moments might not be worn-out.

Competitive Strategy:
Companies can compete generally on three bases which can be there competitive edge also. Some companies compete on cost bases and become the cost leader in the market. Differentiation is another strategy for competition. Differentiation can be made on the bases of products’ features, or value to the customers. Focus strategy is the third way through which businesses can compete in which firm focus on a selected group or a number of groups having common characteristics. We are going to use differentiation strategy. The image of Tahzeeb will be our main differentiation.

Positioning Statement:
“To females, who want novelty in traditional wearing accessories. Tahzeeb is going to provide an expedient shopping experience by giving a assortment in traditional handmade bags, clothes and shoes with a blend of current trends those are reliable, accessible and affordable than competitors”.

Customer Benefits:
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Customers will have a lot of benefits while shopping from Tahzeeb. They will find a vast range of clothes with different and unique styles, traditional and trendy shoes and bags, and traditional and studded jewelry. The facility of customization will also be available like we will design embroided kurtas on their choice. Online buying facility will also be available.

Uniqueness:
Tahzeeb have some unique features on its end. The products of Tahzeeb are the blend of our traditional and current fashion. Convenient shopping experience is also the important feature. The special embroidery of four provinces will be offered.

Future Products:
Tahzeeb has certain opportunities and can increase its product range. So future products can be: • • • Cushions Scarfs Children outfits

Marketing strategy:
Target Market: Target Market (Customers Identified)
To target any market segment, three points will keep in consideration: • • • Each segment size and growth Segment structural attractiveness Company objectives and resources

These above three mentioned features are inter-related. Like each business will target a segment to which the business will be able serve properly. The largest, fastest growing segments are not always the most attractive ones for every company. Some small businesses may lack the skills and resources needed to serve the larger segments. Or may these segments be too competitive for such business. This type of business may select segments that are smaller and less attractive, in an absolute sense, but they are potentially

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more profitable for them. The business should enter only segments in which it can offer superior value and gain advantages over competitors. Tahzeeb is going to target the segment which is not much growing because our selected target customers are only those who like handicrafts. According to our resources, that segment is suitable for our business.

Demographic Features:
We did segmentation on gender basis. And we are going to target only female irrespective of their age, income level, area of their belonging, profession and anything else. We target the whole female market. Market size is also favorable for our business. As they are fond of shopping and spending money, so the frequency of their visits will also be high.

Promotion Mix:
A company’s total marketing communication mix also called its promotion mix consists of the explicit combination of advertising, sales promotion. Public relations, personal selling, direct marketing tools that the company uses to chase its advertising and marketing objectives. Following are the five promotion tools: • • • • • Advertising Sales Promotion Public Relations Personal Selling Direct Marketing

Advertisement:
“Any paid form of nonpersonal and promotion of ideas, goods, or services by an identified sponsor”. We will use three ways of advertisement i.e.: • • • Our Pamphlets and brochure will be placed on the big departmental stores of the city, i.e. City center, Meer shopping centre, Shopping center & Shehbaz store. Advertising on Radio FM106 on 8:00 Pm to 12:00 Am. Two newspapers will be used for advertising i.e. Nawa-e-waqt and Jang. Ad will be published on top of the last page.

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The medium of cable will also be used for advertisement of Tahzeeb. Star Plus is very famous channel among females that’s why we will prefer this and our ad will be played on Prime time.

Sales Promotion:
“Short term incentives to encourage the purchase or sale of a product or service”. • • • In the beginning, we will offer a short percentage of discounts. If a customer does shopping of Rs. 3000, she will get 5% discount. If someone buys three pieces of attire, will get one mobile pouch free. Exchange facility will also be offer.

Direct Marketing:
“Direct communications with carefully targeted individual consumers, the use of telephone, mail, email, and other tools to communicate directly with specific consumers”. We will collect the specific customers’ data like their telephone numbers and their addresses who will visit our store.

Pricing:
A retailer’s price policy must in shape with its target market and positioning. During the past decade, marketers have noted a basic move in consumer attitudes towards price and quality. Many businesses have changed their pricing approaches to bring them into line with changing economic environment and consumer price acuity. More and more marketers have adopted value pricing strategies which are offering just the right mixture of quality and good service at reasonable price. (Kotler, 2005)

General Pricing Approaches:
The price the company charges will be somewhere between one that is too stumpy to produce a profit and one that is too high to produce any demand. Product costs set a floor to the price; consumer perceptions of the product’s value set the ceiling. Between these two limits, the company must consider competitors’ prices and other external and internal factors to find the best price. General approaches include the following: • l Cost-Based Pricing 17

• •

Value Based Pricing Competition-Based Pricing

Cost-Based Pricing:
Cost plus pricing is adding up a regular markup to the cost of the product. To demonstrate markup pricing, we have to consider following: • • • Variable cost Fixed Cost Expected unit Sales

To calculate unit cost, following formula is used: Variable cost + Fixed cost / unit sales Markup Price is calculated in the following way: Unit cost / 1 – desired return on sales

Value- Based Pricing:
A growing number of companies are basing their prices on the product’s perceived value. Value based price uses buyer’s perceptions of value rather than on the seller are cost, as the key to pricing. Value based pricing is the undo process of cost based pricing. The company set its target price based on customers’ perception of the product value. The targeted value and price then derive decisions about product design and what cost can be incurred. As a consequence, price begins with analyzing consumer needs and value perceptions, and price is set to match consumers’ perceived value.

Competition Based Pricing:
Consumers will base their decision of a product’s value on the prices that rivals charge for parallel products. One form of the competition based pricing is going rate pricing in which a firm bases its price largely on competitors’ prices with less concentration paid to its own cost or a demand. The firm might charge the same as, more than, or less than its key competitors.

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Cost-Based Pricing (Strategy of Tahzeeb):
We will set our prices according to cost based pricing strategy. This will suit to our business. The reason not to choose value based pricing is that consumers’ perception about handicrafts products is not very strong means most of them think that these are very inexpensive and the reason not to choose competitors based pricing is that our competitors are very fragmented and most of them also using cost based pricing which is more beneficial. It is also suitable because it is fair to both buyers and sellers, buyers and sellers will be having equal benefits in this method. We will use 30% markup from above the cost.

Sales and Distribution:
We are opening a retail outlet. Sale will be made through that store. No other distribution channel will be available. Customers will have to visit our store in order to make purchases.

Place Decision:
“Retailers often point to three critical factors in retailing success: location, location, and location” (Philip Kotler). It is very necessary that retailers desire the location which is approachable by the target market in region that are consistent with the retailers positioning. Small retailers may have to mend for whatever locations they can get or pay for. Keeping these things in consideration, we have selected a location or a store in Green Center, Satellite town, which is accessible for a large number of customers from different related areas of Satellite town market. We select it also because of the demand of the customers which we became to know from questionnaires’ result. Satellite town market is now a shopping hub.

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Design of our outlet:
We will design and set our outlet in an artistic way that will definitely depict the theme of our business. Walls would be designed by ordinary clay, Wood will be the most integral component of the design to give more of a natural and raw look- a nice mixture of contemporary and traditional architecture - orange and yellow colors would be brought into the design in relevance with the rich heritage and culture and also it presents the color combination of Tahzeeb’s logo. And this scrupulous effort would be done by the designers them selves to gild the outlet with these time-honored embellishments.

Layout of Tahzeeb:
This is the outlet of Tahzeeb. The location of our outlet is in green centre in satellite town Gujranwala. We select this location because the most famous brands are located there and this is the busiest market of Gujranwala. We design our outlet to keep in mind the convenience of our costumers. The entire items are easily visible. On the very left corner there is our counter from where we take delivery of our items and collect our payments from our customers. And beside the counter we have our handmade bags revolving stand. We have different styles and sizes of bags available there. On the left corner there are shelves on which we shall display our handmade and traditional jewelry. And on the front side and right corner we will display our embrioded clothes and khaddi wear on the

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rods. On the right side we will display our shoes on the racks. Our layout will help our customer in making choices

Competitors’ Analysis: SWOT Analysis of Competitors: Strengths:
• • • • Brand Image. Long time working experience. Availability of heavy budgets. Customers’ loyalty.

Weaknesses:
• • • • High Prices. Limited variety of traditional and hand made products. Short durability. No warranties.

Opportunities:
• • Potential in handicrafts industry. Can offer low price products.

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They can provide clothes, bags and shoes under one roof. Although some are providing but not traditional and handicrafts accessories.

Threats:
• • • Change in fashion trends can down the market of handicrafts. Traditional handicrafts makers are also a threat because they are selling on low prices in main bazaar. Some people have perception that handicrafts are inexpensive and non durable, so they don’t like it.

Evaluation of Industry and business Environment: Porter’s Five Forces Model:
Porter suggested that while evaluating industry and business environment, firstly you have to know the name of the industry in which you compete. If you are competing in more than one industry, you have to list each industry separately. Tahzeeb is dealing in clothes, shoes, bags and jewelry, which mean we can say these are four separate industries. But in today’s modern era, we relate all these items to fashion and fashion industry has become very broad. Keeping in mind this thing, we as Tahzeeb are competing in Fashion Industry. Porter’s five forces model helps to analyze the industry environment and also directs about competition prevailing in that particular industry.

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Porter explains that in any industry there are five forces that influence what happens within the industry:
• • • • • Customers Suppliers Competitors Potential New Entrants Substitute Products

Customers:
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Customers are the buyers who purchase our products. If customers have various choices and have more substitutes of our products, their bargaining power will be high. That’s why Tahzeeb’s customers have high bargaining power.

Suppliers:
Suppliers are an important factor which can influence the business environment. Suppliers of raw materials, components, labor, and services to the firm can be a source of power over the firm. Suppliers’ bargaining power will be maximum, if they are few and concentrated. Tahzeeb will basically have one supplier who will be providing all the accessories we need. Bargaining power of those will be high because there are a large number of firms who are availing their services.

Competitive Rivalry:
Competition prevailing in the market is a very essential factor. If competitors are very aggressive and very large in number, competitive rivalry will be intensive. In fashion industry, we can observe that competition is increasing rapidly but competitors do not compete on price basis. They compete on non-price dimensions like innovation, marketing strategies. Tahzeeb is also going to tackle this stiff competition by bringing something different in the market.

Threat of New Entrants:
If entry and exit barriers are less in an industry, threat of new entrants will be high. In fashion industry, threats of new entrants are also high because new firms normally have not to face legal or any other type of restrictions.

Threat of Substitutes:
If in the market, substitutes of your product are more, threat of substitutes will be high because customers will have a lot of options and can easily switch to the competitors’ products. Incase of Tahzeeb, threat of substitute is more because already there are a lot of existing competitors.

Management Plan:
We’ll provide our employees with a pure friendly atmosphere to let their productivity go upbeat… We don’t intent to build a formal organization just to seize work from the employees it would be a vigorous atmosphere that would in addition boost employee

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expertise they would be provided with a suitable direction to do their line of work, they would have the fulltime opportunity to talk over any issue with the management. Management Supervisor Designer Finance & account manager

Guard

Sweeper

Sales Girls

Driver

Management involves supervisor, designer and finance and account manager. Finance manager would have to be on the outlet to manage the daily account and interpret longterm investment decision and provide final reports to the management. Designer will be hired on contract basis. We will order them to design products and these designs will be send to craftsmen for making clothes, bags and shoes after selection.

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Operations Plan:
We will order our designer to design bags, clothes and shoes according to new trends with the blend of traditional touch. New and trendy designs will be creating from time to time. After designing, we’ll select best designs from those and these designs will be sent to our hired craftsmen. Raw material will be purchased by our suppliers from different sources on reasonable competitive cost and then they will supply that raw material to craftsmen. We will have no direct concern with raw material because we will simply do a trading business. Suppliers will be paid by us for their services which they’ll do like delivery of raw material to craftsmen and delivery of finished goods to our retail outlet. l 26

They will manufacture clothes, bags and shoes according to selected designs. After finishing these products, suppliers will bring them to our retail store in large card board boxes, so that they could not be damaged. Proximity to Suppliers: In our business, we will have to hire one supplier which will supply raw material to craftsmen and bring to us the finished good from these craftsmen. Proximity of supplier to any location is very essential because if supplier is not near to the main location, delays can be occurred in supply and delivery of raw material and goods. We will hire a supplier from near by region and that will purchase material from different areas of Gujranwala and Lahore. Access to Transportation: Access to transportation for suppliers as well as for customers is very important. Supplier will have direct access to our retail outlet and there will no hurdle which can be faced while the delivery of our finished goods to our outlet. Customers will also feel convenience while coming to our shop as it is situated in main market satellite town. Purchase Decision: After the finalization of designs, procurer will purchase the raw material from raw material shops from the sources mentioned. And our supplier will be our fixed dealer to let us get little discounts each time we pay for.

Operations break down: Designing Raw material Purchase

Travel Process Inspection

Supply to Craftsmen

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Inspection Embroidery

Stitching

Inspection Finished Goods Primary packaging Secondary Packaging Travel Outlet

Research Report:
We conducted a research in order to check the interest of females towards handicrafts items. For this purpose, we used a questionnaire and response of female respondents was checked through seventeen important variables. We selected a sample size of 150. Our target respondents were, females of college and university going students, working ladies and also households. 127 questionnaires were returned to us. 23 questionnaires were unusable. Results of this research will help out us to compare our perception that what females think about these items and the actual females’ attitude towards handmade accessories. Results of Questionnaire Survey

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Do you go for shopping to satellite town?
Frequency 112 15 127 Percent 88.2 11.8 100.0 Valid Percent 88.2 11.8 100.0 Cumulative Percent 88.2 100.0

Valid

Yes No Total

From this variable, we have known that 88.2 % females visit satellite town market. So that our decision of opening our outlet in satellite town market is reasonable.

Do you go for shopping to satellite town?
No

Yes

Are you interested to avail the service of customization?
Frequency 78 49 127 Percent 61.4 38.6 100.0 Valid Percent 61.4 38.6 100.0 Cumulative Percent 61.4 100.0

Valid

Yes No Total

We as a point of difference from our competitors, wanted to give our customers an option of customization in clothes. For this purpose we used this variable, and results shows that 61.2 % respondents want to avail the service of customization in clothing. So, we will definitely offer this service on our outlet.

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Are you intersted to avail the service of customization?
No

Yes

Interest of respondents to avail the service of online services
Frequency 78 49 127 Percent 61.4 38.6 100.0 Valid Percent 61.4 38.6 100.0 Cumulative Percent 61.4 100.0

Valid

Yes No Total

Online services for handmade accessories in Gujranwala are very limited and we as Tahzeeb thought that we should offer this here also. Results shows that 61.4 % respondents are ready to avail this service. Now we will design a website and offer our products online also.

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Inrest of respondents to avail the service of online services
No

Yes

Quality of shoes, bags, traditional jewelry and clothes
Frequency Valid Most Important Important Neutral Less Important Total 79 34 12 2 127 Percent 62.2 26.8 9.4 1.6 100.0 Valid Percent 62.2 26.8 9.4 1.6 100.0 Cumulative Percent 62.2 89.0 98.4 100.0

Quality of shoes, bags, traditional jewelry and clothes is considered most important that is also confirmed from the response of respondents that 62.2 % people showed positive attitude. l 31

Quality of shoes, bags, traditional jewelry and clothes
Less Important Neutral Important

Most Imortant

Innovation in shoes, bags, traditional jewelry and clothes
Frequency Valid Most Important Important Neutral Less Important Total 56 45 22 4 127 Percent 44.1 35.4 17.3 3.1 100.0 Valid Percent 44.1 35.4 17.3 3.1 100.0 Cumulative Percent 44.1 79.5 96.9 100.0

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Some people want innovation in these handmade accessories and some take its not as much important like 44 % gave it very much importance and 33.4 % said that it is just important.

Innovation in shoes, bags, traditional jewelry and clothes
Less Important Neutral

Most Important

Important

Design/Look of Clothes and other accessories
Frequency Valid Most Important Important Neutral Less Important Not Important Total 65 49 9 3 1 127 Percent 51.2 38.6 7.1 2.4 .8 100.0 Valid Percent 51.2 38.6 7.1 2.4 .8 100.0 Cumulative Percent 51.2 89.8 96.9 99.2 100.0

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51.2 % respondents think that design and look of handmade items is most important and 38.6 % take it as only important.

Design/Look of Clothes and other accessories
Not Important Less Important Neutral

Most Important Important

Price of Clothes and other handmade items
Frequency Valid Most Important Important Neutral Less Important Not Important Total 46 46 24 8 3 127 Percent 36.2 36.2 18.9 6.3 2.4 100.0 Valid Percent 36.2 36.2 18.9 6.3 2.4 100.0 Cumulative Percent 36.2 72.4 91.3 97.6 100.0

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Price of clothes, bags, shoes and jewelry is not too much important because only 36.2 % respondents’ response show that it is most important and remaining can be buying on whatever price.

Price of Clothes and other handmade items
Not Important Less Important

Neutral

Most Important

Important

Factor of Convenience
Frequency Valid Most Important Important Neutral Less Important Not Important Total 53 42 26 1 5 127 Percent 41.7 33.1 20.5 .8 3.9 100.0 Valid Percent 41.7 33.1 20.5 .8 3.9 100.0 Cumulative Percent 41.7 74.8 95.3 96.1 100.0

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Factor of convenience is most important for 41.7 % respondents while purchasing. 33.1 % consider is only important. Our decision to provide this ease to our customers by appointing there only female sales girls, is very right.

Factor of Convenience
Not Important Less Important

Neutral Most Important

Important

Handmade items are expensive Frequenc y Valid Totally Agree Agree Neutral Disagree totally Disagree Total 35 52 20 15 5 127 Percent 27.6 40.9 15.7 11.8 3.9 100.0 Valid Percent 27.6 40.9 15.7 11.8 3.9 100.0 36 Cumulative Percent 27.6 68.5 84.3 96.1 100.0

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Result of this variable shows that 27.6% totally agree that hand made items are expensive and a major percentage i.e. 40.9 % people just agree that these are expensive. It means more chances are there that they can be purchasing more.

Handmade items are expensive
totally Disagree Disagree Neutral

Totally Agree

Agree

Handicrafts are inexpensive
Frequency Valid Totally Agree Agree Neutral Disagree Totally Disagree Total 33 32 37 18 7 127 Percent 26.0 25.2 29.1 14.2 5.5 100.0 Valid Percent 26.0 25.2 29.1 14.2 5.5 100.0 Cumulative Percent 26.0 51.2 80.3 94.5 100.0

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51.2 % respondents agree that handicrafts are inexpensive, means this also is an indicator of more frequent purchases in future.

Handicrafts are inexpensive
Totally Disagree Disagree Totally Agree

Neutral Agree

Are these accessories enhancing your personality?
Frequency Valid Totally Agree Agree Neutral Disagree Totally Disagree Total 31 50 32 12 2 127 Percent 24.4 39.4 25.2 9.4 1.6 100.0 Valid Percent 24.4 39.4 25.2 9.4 1.6 100.0 Cumulative Percent 24.4 63.8 89.0 98.4 100.0

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63.8 % people agree or totally agree that use of these accessories enhance your personality, so they will definitely be using those.

Are these accessories enhancing your personality
Totally Disagree Disagree Neutral Totally Agree

Agree

Handicrafts have excellent quality
Frequency Valid Totally Agree Agree Neutral Disagree Totally Disagree Total 25 55 37 8 2 127 Percent 19.7 43.3 29.1 6.3 1.6 100.0 Valid Percent 19.7 43.3 29.1 6.3 1.6 100.0 Cumulative Percent 19.7 63.0 92.1 98.4 100.0

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The research shows that 63 % respondents’ perception is handicrafts have excellent quality. Hopefully, they will like to use those.

handicrafts have excellent quality
Totally Disagree Disagree Neutral Totally Agree

Agree

Handicrafts for youth only
Frequency Valid Totally Agree Agree Neutral Disagree Totally Disagree Total 8 24 37 44 14 127 Percent 6.3 18.9 29.1 34.6 11.0 100.0 Valid Percent 6.3 18.9 29.1 34.6 11.0 100.0 Cumulative Percent 6.3 25.2 54.3 89.0 100.0

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We at the beginning were assuming that handmade items are only for youth but it is find wrong because only 6.3 % respondents totally agree with this variable.

Handicrafts for youth only
Totally Agree

Totally Disagree

Agree

Disagree

Neutral

Handicrafts for everyone
Frequency Valid Totally Agree Agree Neutral Disagree Totally Disagree 47 44 28 4 4 Percent 37.0 34.6 22.0 3.1 3.1 Valid Percent 37.0 34.6 22.0 3.1 3.1 Cumulative Percent 37.0 71.7 93.7 96.9 100.0

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Total

127

100.0

100.0

Handicrafts are for everyone, this is right to some extent like 71.7 % people agreed.

Handicrafts for everyone
Totally Disagree Disagree

Neutral

Totally Agree

Agree

Use of handmade items is exciting
Frequency Valid Totally Agree Agree Neutral Disagree Totally Disagree Total 38 55 29 3 2 127 Percent 29.9 43.3 22.8 2.4 1.6 100.0 Valid Percent 29.9 43.3 22.8 2.4 1.6 100.0 Cumulative Percent 29.9 73.2 96.1 98.4 100.0

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73.2% respondents’ perception is that use of these items is exciting.

use of handmade items is exciting
Totally Disagree Disagree

Neutral

Totally Agree

Agree

Age of respondents
Frequency Valid 18 and less 19 to 23 24 to 28 29 and above Total 20 80 18 9 127 Percent 15.7 63.0 14.2 7.1 100.0 Valid Percent 15.7 63.0 14.2 7.1 100.0 Cumulative Percent 15.7 78.7 92.9 100.0

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Variable of age shows the age group of our respondents. 15.5 % were of 18 years and. 63 % is from 19 to 23 years. 14.2 % respondents come under the age group of 24 to 28 and 7.1 % are of 29 and above.

Age of respondents
29 and above 24 to 28 18 and less

19 to 23

Income of respondents
Frequency Valid 15000 and less 15000 to 30000 30000 to 45000 45000 and above Total 50 31 22 24 127 Percent 39.4 24.4 17.3 18.9 100.0 Valid Percent 39.4 24.4 17.3 18.9 100.0 Cumulative Percent 39.4 63.8 81.1 100.0

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We asked income of our respondents because our target customers are those who have 30000 and more income per month. According to this, 36.2 % of respondents are our target customers.

Income of respondents
45000 and above

15000 and less

30000 to 45000

15000 to 30000

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .775 410.186 91 .000

The value of KMO and Bartlett’s Test is .775 and significance level is .000 which shows that our research is reliable. Because reliability of research is possible only when, KMO l 45

is more than .7 or .6 is also sometime considered, and level of significance is less than . 05.

Total Variance Explained Extraction Sums of Squared Loadings Total 3.994 1.578 1.172 1.124 % of Variance 28.530 11.275 8.369 8.027 Cumula tive % 28.530 39.805 48.174 56.201 Rotation Sums of Squared Loadings Total 3.363 1.722 1.554 1.229 % of Variance 24.024 12.300 11.097 8.781 Cumulat ive % 24.024 36.324 47.420 56.201

Initial Eigenvalues Component 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Total 3.994 1.578 1.172 1.124 .997 .929 .737 .666 .635 .517 .485 .448 .430 .286 % of Variance 28.530 11.275 8.369 8.027 7.121 6.639 5.265 4.758 4.537 3.693 3.467 3.199 3.075 2.046 Cumula tive % 28.530 39.805 48.174 56.201 63.322 69.961 75.225 79.983 84.521 88.213 91.681 94.880 97.954 100.00 0

Extraction Method: Principal Component Analysis. We used factor loading technique to extract the most important variables. Four variables are extracted and have total variance explained 56.201. First variable has 24 % of total variance, second has 12.3 %, third has 11.097 % and forth has 8.871 % of total variance. Rotated Component Matrix (a)
Component 1 Are you interested to avail the service of customization? Interest of respondents to avail the service of online services Quality of shoes, bags, traditional jewelry and clothes -.038 2 -.022 3 -.047 4 .824

.092

.667

.173

.059

.577

.182

.114

.452

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Innovation in shoes, bags, traditional jewelry and clothes Design/Look of Clothes and other accessories Price of Clothes and other handmade items Factor of Convenience Handmade items are expensive Handicrafts are inexpensive Are these accessories enhancing your personality handicrafts have excellent quality Handicrafts for youth only Handicrafts for everyone use of handmade items is exciting

.692 .569 .673 .710 .626 .143 .331 -.019 -.008 .654 .558

.037 .098 .153 .033 .304 .252 .595 .821 .087 .025 .125

.242 .020 .073 .304 -.304 .637 .033 .143 .809 -.066 .415

.349 .223 -.175 -.007 -.095 -.020 .105 -.131 .021 -.055 -.314

Rotated component matrix shows the most important variables which were extracted and have 56.201 % of total variance. First variable which is most important is “Factor of Convenience” with .701 values. When we thought for this business idea, our general observation was that females are not comfortable while shopping due to the presence of males in the stores. So our observation has proved right thorough this formal research. Second most important variable is that handicrafts have excellent quality with .821 value. People prefer to purchase those items which have excellent quality so this also confirmed from this research. Third important variables which is extracted, is handicrafts are for youth only with value of .809. Forth variable is that customization service is also important and most our customers can avail this as it has the value of .824.

Financial Plan:
Demand Calculation: We calculate demand for our products on certain assumptions. We consider the total population of Gujranwala, then percentage of females. Then the percentage of female who like handmade bags, clothes and shoes. We also consider the income level of our potential customers and we target the females having more than Rs. 30,000 family income. That was actually the total customers of satellite town market. Leaving 97%, market share with competitors, we assumed 3% market share for “Tahzeeb”. On the basis of above assumptions, we calculate the purchases for first year and then an increase in those purchases for the proceeding two years.

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Requirement Sheet
Description Building: Outlet Rent (30000*12) Security Deposit Furniture: 3 stylish display racks 3 clothes display rods 1Reception table 4 Sofa sets 2 Comfortable Chair 3Floor Sheets Side Accessories Renovation Office Supplies: (5000*3) (2000*3) (5000*1) (15000*4) (2000*2) (1000*3) 360000 200000 15000 6000 5000 60000 4000 3000 15000 200000 15000 5000 60000 20000 6400000 4800000 2400000 500000 560000 Amount Amount

308000

1 computer 1 Printer 2 Air Conditioners & lighting (50000+10000) Stationary expenses Inventory: Clothes Bags Shoes Jewelry Human Resources: Sweeper for Outlet (1*2000*12) Guard (1*3200*12) 4 Sales Persons (6000*4*12) Utilities: Electricity (20000*12) Gas (500*12) Water (500*12) Telephone (4000*12) Other Expenses: Marketing Expenses: l

100000

14100000

24000 38400 288000 240000 6000 6000 48000

350400

300000

48

Brochures Radio advertisement Newspaper (Express: 16000*4) (Nawa-e-waqt: 40000*4) Cable Ad Transportation Expenses Total

20000 20000 64000 160000 22000 200000

486000 16204400

1ST Year’s Income Statement Particulars Sales Revenue Less: CGS Opening Stock Add : Purchases Freight In Cost of Goods available for Sale Less: Closing Stock Amount (Rs.) 14,100,000 200,000 14,300,000 (3836785) Amount (Rs.) 16,337,500

(10463215)

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Gross Profit Less: Operating Expenses Salaries Utilities Marketing Expenses Depreciation (10% by straight line method) Rent Stationery Profit before tax Less: Income tax Net Profit

5874285 3,50,400 3,00,000 2,86,000 38,800 3,60,000 2,000

(13,37,200) 4537085 (839360) 3697725

1ST Year’s Cash Flow Statement Particulars Cash Flow from operating activities: Net Profit Add: Depreciation Less: change in operating working capital Stationery Inventory Security Net Cash Flow from Operating Activities Cash Flow from Investing Activities Furniture Supplies Net Cash Flow from Investing Activities Cash Flow from Financing Activities Total Net Cash Flow Opening Balance of Cash Amount (Rs.) Amount Rs.) 3697725 38,800 3736525 (18,000) (3836785) (200,000) (3,08,000) (80,000) (3,88,000) (706260) 20000000

(4054785) (318260)

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Closing Balance of Cash

19293740

1ST Year’s Balance Sheet Capital + Liabilities Capital Add: Net Profit Liabilities Amount (Rs.) 200,00,00 0 3697725 Assets Current Assets: Cash Inventory Security Stationery Amount (Rs.) 19293740 3836785 200,000 18,000

Total Capital and Liabilities

23697725

Fixed Assets: Furniture 3,08,000 Less: Depreciation 30800 2,77,200 Supplies 80,000 Less: Depreciation 8000 72,000 Total Assets 23697725

Description of Financial Statements: First Year: (2009) In first year, we made purchases on above given certain assumptions in the following way: Purchased units and per unit purchased cost: Clothes = 8000 Shoes = 16000 Per unit cost Per unit cost = Rs. 800 = Rs. 300 Total Cost = Rs.6400000 Total Cost = Rs.4800000

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Bags

= 6000

Per unit cost

= Rs. 400

Total Cost = Rs.2400000

Jewelry Total Cost = Rs. 500,000 Sold Units and per unit sale price: Clothes Shoes Bags Sold Jewelry = 6500 = 12000 = 5500 Per unit price = Rs. 1145 Per unit price = Rs. 430 Per unit price = Rs. 570 Total Price Total Price Total Price = Rs. 7442500 = Rs. 5160000 = Rs. 3135000

Jewelry Sales Price = Rs.714285 = Rs.600000

Sales Revenue = Rs.7442500+Rs.5160000+Rs.3135000+Rs.600000 = Rs.16337500 Stock at the end of the year: Clothes Shoes Bags Note: • • • We used cost plus markup pricing and considered 30 % markup above from the cost. Depreciation on fixed assets (furniture and supplies), applied on the rate of 10 % by using straight line method. According to Income Tax Ordinance 2001, 18.5% tax is charged on income exceeding Rs.3550000 but less than 4550000. = 1500 = 4000 = 500 Per unit price = Rs.1145 Per unit price = Rs. 430 Per unit price = Rs. 570 Total Price Total Price Total Price = Rs. 1717500 = Rs. 1720000 = Rs. 285000

Jewelry’s Stock = Rs.114285

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2nd Year’s Income Statement Particulars Sales Revenue Less: CGS Opening Stock Add : Purchases Freight In Cost of Goods available for Sale Less: Closing Stock Gross Profit Less: Operating Expenses Salaries Utilities Marketing Expenses Depreciation (10% by straight line method) Rent Stationery Profit before tax Less: Income Tax Net Profit Amount (Rs.) 3836785 15750000 2,00,000 19786785 (2302070) 3,50,400 3,00,000 2,00,000 38800 3,60,000 8,000 Amount (Rs.) 20229000

(17484715) 2744285

(1257200) 1487085 (185885) 1301200

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2nd Year’s Cash Flow Statement Particulars Cash Flow from operating activities: Net Profit Add: Depreciation Less: change in operating working capital Net Cash Flow from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities Total Net Cash Flow Opening Balance of Cash Closing Balance of Cash 2nd Year’s Balance Sheet Capital + Liabilities Capital Add: Net Profit Liabilities Amount (Rs.) 23697725 1301200 Assets Current Assets: Cash Inventory Security Stationery Fixed Assets: Furniture 2,77,200 Less: Depreciation 30800 Supplies 72,000 Less: Depreciation 8000 Total Assets Amount (Rs.) 22176455 2302070 200,000 10,000 2,46,400 64,000 24998925 Amount (Rs.) Amount Rs.) 1301200 38,800 1340000 (-1542715) 2882715 2882715 19293740 22176455

Total Capital and Liabilities

24998925

Description of Financial Statements: Second Year: (2010) Purchased units and per unit purchased cost: Clothes Shoes = 8500 = 17000 Per unit cost Per unit cost = Rs. 800 = Rs. 300 Total Cost Total Cost = Rs. 6800000 = Rs. 5100000

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Bags

= 8000

Per unit cost

= Rs.400

Total Cost

= Rs. 3200000

Jewelry’ Cost = Rs.650000 Sold Units and per unit sale price: Clothes Shoes Bags Sold Jewelry = 8000 = 15000 = 6700 Per unit price = Rs. 1145 Per unit price = Rs. 430 Per unit price = Rs. 570 Total Price Total Price Total Price = Rs. 9160000 = Rs.6450000 = Rs.3819000

Jewelry’ Sale Price = Rs.928570 = Rs.800000 Sales Revenue =Rs.9160000+Rs.6450000+Rs.3819000+Rs.800000 = Rs. 20229000 Stock at the end of the year: Clothes Shoes Bags Note: This year our criterion for pricing and depreciation is same like the previous year. • • • We used cost plus markup pricing and considered 30 % markup above from the cost. Depreciation on fixed assets (furniture and supplies), applied on the rate of 10 % by using straight line method. According to Income tax Ordinance 2001, 12.5% tax is charged on income exceeding Rs.1450000. = 500 = 2000 = 1300 Per unit price = Rs. 1145 Per unit price= Rs. 430 Per unit price= Rs. 570 Total Price Total Price Total Price = Rs. 572500 = Rs. 860000 = Rs. 741000

Jewelry’s Stock = Rs.278570

3rd Year’s Income Statement Particulars Sales Revenue Less: CGS Amount (Rs.) Amount (Rs.) 21588000

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Opening Stock Add : Purchases Freight In Cost of Goods available for Sale Less: Closing Stock Gross Profit Less: Operating Expenses Salaries Utilities Marketing Expenses Depreciation (10% by straight line method) Rent Stationery Profit before tax Less: Income Tax Net Profit

2302070 17100000 2,20,000 19622070 (2877000) 3,50,400 3,20,000 180,000 38800 3,60,000 6,000

(16745070) 4842930

(1255200) 3587730 663730 2923999

3rd Year’s Cash Flow Statement Particulars Cash Flow from operating activities: Net Profit Add: Depreciation Less: change in operating working capital Net Cash Flow from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities Total Net Cash Flow Opening Balance of Cash Closing Balance of Cash Amount (Rs.) Amount Rs.) 2923999 38,800 2962799 (568930) 2393869 2393869 22176455 24570325

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3rd Year’s Balance Sheet Capital + Liabilities Capital Add: Net Profit Liabilities Amount (Rs.) 24998925 2923999 Assets Current Assets: Cash Inventory Security Stationery Fixed Assets: Furniture 2,46,400 Less: Depreciation 30800 Supplies 64,000 Less: Depreciation 8000 Total Assets Amount (Rs.) 24570325 2877000 200,000 4,000 2,15,600 56,000 27922925

Total Capital and Liabilities

27922925

Description of Financial Statements: Third Year: (2011) Purchased units and per unit purchased cost: Clothes Shoes Bags = 10000 = 18000 = 7500 Per unit cost Per unit cost Per unit cost = Rs. 800 = Rs. 300 = Rs. 400 Total Cost Total Cost Total Cost = Rs.8000000 = Rs.5400000 = Rs.3000000

Jewelry’s Cost Price = Rs.700000 Sold Units and per unit sale price: Clothes Shoes Bags = 9000 = 15000 = 6900 Per unit price = Rs. 1145 Per unit price = Rs. 430 Per unit price = Rs. 570 Total Price Total Price Total Price = Rs. 10305000 = Rs. 6450000 = Rs. 3933000

Jewelry’s Sale Price = Rs.1000000 Sold Jewelry = Rs.900000 Sales Revenue =Rs.10305000+Rs.6450000+Rs.3933000+RS.900000 =Rs.21588000 Stock at the end of the year: Clothes Shoes Bags l = 1000 = 3000 = 600 Per unit price = Rs.1145 Per unit price = Rs.430 Per unit price = Rs.570 Total Price Total Price Total Price 57 = Rs.1145000 = Rs.1290000 = Rs.342000

Jewelry’s Stock = Rs.100000 Note: This year our criterion for pricing and depreciation is same like the previous year. • We used cost plus markup pricing and considered 30 % markup above from the cost boy cost of purchased per unit has increased that’s why prices has also increased. • • Depreciation on fixed assets (furniture and supplies), applied on the rate of 10 % by using straight line method. According to Income Tax Ordinance 2001, 18.5% tax is charged on income exceeding Rs.3550000 but less than 4550000.

Financial Ratios:
Ratios Gross Profit: Net Profit ROI Return on Assets Sales to Asset Inventory Turnover Inventory Turnover Period First Year (2009) 5874285/16337500 = 0.36 3697725/16337500 = 0.23 3697725/21848862 =0.169 3697725/23697725 Second Year(2010) Third Year (2011) 2744285/20229000 4842930/21588000 = 0.13 1301200/20229000 = 0.064 1301200/24348325 =0.05 1301200/24998925 = 0.22 2923999/21588000 = 0.13 2923999/26460925 =0.11 2923999/27922925

= 0.15 = 0.05 = 0.10 16337500/23697725 20229000/24998925 21588000/27922925 = 0.68 16337500/3836785 = 4.26 360/4.26 = 84 days = 0.81 20229000/3069427 = 6.6 360/6.6 = 55 days = 0.77 21588000/2589535 = 8.3 360/8.3 = 43 days

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Break Even Analysis: (2009)
Sales in units = 24,000 units Sales in Rupees = Rs. 16337500 Variable Cost = Rs. 10463215 Fixed Cost = Rs. 1337200 Break Even in units of sales = Fixed Cost / Contribution Margin per unit = Rs. 1337200 / Rs. 244.76 per unit = 5463.31 units Working: Contribution Margin = Sales Less Variable Cost = Rs. 16337500 Less Rs. 10463215 = Rs. 5874285 Contribution Margin per unit = Contribution Margin / Units Sold = Rs. 5874285 / 24000 units = Rs. 244.76 per unit Break Even Point in Rupee of Sales = Fixed Cost / Contribution to sales ratio = Rs. 1337200 / 0.36 l 59

= Rs. 3714444.44 Working: Contribution to Sales Ratio = Contribution Margin / Sales = Rs. 5874285 / Rs. 16337500 = 0.36

Sales Growth Rate:
Sales Growth Rate = New – Old / Old (Second Year) = Rs. 20229000 – Rs. 16337500 / Rs. 16337500 = 23.82% Third Year: = Rs. 21588000 – Rs. 20229000 / Rs. 20229000 = 6.72% Average Growth Rate = 23.82% + 6.72% / 2 = 15.27%

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Reference:
• A.Cholachatpinyo, I.Padgett, M.Crocker and D.Fletcher, “A Conceptual Model of the Fashion Process-Part 1, The Fashion transformation process model” Cenetral Saint Martins College of Art and Design, London, UK and Hertfordshire University, Hatfield, UK, Journal of Fashion Marketing and Management (Vol 6 No.1, 2002): 11-23 Anderson, L.J., Warfield, C.L., & Barry, M.E. (1987), “A unique marriage: Extension helping a troubled industry”. Journal of Extension, (25):8-10 Barak, B. & Stern, B. (1985), “Fantastic at forty! The new young woman consumer”, Journal of Consumer Marketing, (2):41–54 Belch, G. & Belch, M. (1993) “Introduction to Advertising and Promotion”, An Integrated Marketing Communications Perspective, 2nd edn. Irwin, Homewood, IL. Holly L. Schrank, “Correlates of Fashion Leadership: Implication for Fashion Process Theory”, Michigan State University and D. Lois Gilmore, Ohio State University, The Sociological Quarterly 14(Autumn 1973):534-543 Martin, R. & Koda, H.(1994) Orientalism:Visions of the East in Western Dress.The Metropolitan Museum of Art Pitimaneeyakul, U., LaBat, K.L. and DeLong, M.R. (2004), “Knitwear product development process: a case study”, Clothing and Textiles Research Journal, (Vol. 22 No. 3):113-31 S.G. Hayes and Nicola Jones (2006), “Fast fashion: a financial snapshot”, Manchester Metropolitan University, Manchester, UK, Journal of Fashion Marketing and Management, (Vol. 10 No. 3): 282-300 Erin D. Parrish, Nancy L. Cassill and William Oxenham, (2006), “Niche market strategy in the textile and apparel industry”, The University of Alabama, Tuscaloosa, Alabama, USA, and North Carolina State University, Raleigh, North Carolina, USA, Journal of Fashion Marketing and Management (Vol. 10 No. 4): 420-432

• • • • • • • •

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• •

• • • • •

Doris H. Kincade, Cynthia Regan and Fay Y. Gibson, (2007) “Concurrent engineering for product development in mass customization for the apparel industry”, International Journal of Operations & Production Management, (Vol. 27 No. 6, 2007): 627-649 Anderson, L.J., Warfield, C.L., & Barry, M.E. (1987), “A unique marriage: Extension helping a troubled industry”. Journal of Extension, (25):8-10 A.Cholachatpinyo, I.Padgett, M.Crocker and D.Fletcher, “A Conceptual Model of the Fashion Process-Part 1, The Fashion transformation process model” Cenetral Saint Martins College of Art and Design, London, UK and Hertfordshire University, Hatfield, UK, Journal of Fashion Marketing and Management (Vol 6 No.1, 2002): 11-23 Michael E.Porter, “What is Strategy”, Harvard Business School, 1996 Philip Kotler, Principles of Marketing, 12th edition, 2005 www.google.com www.cbr.gov.pk www.stats.gov.pk

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