A BUSINESS PROJECT (CODE: MGT-410) Manufacturing of Water Mist Electric Fan

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A Business Project submitted to the Faculty of Management and Administrative Sciences, University of Gujrat in partial fulfillment of the requirement for

The Degree of

Master in Commerce
By

Name M.com

Roll Number

University of Gujrat
2009 to 2011

Evening Program City Campus

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Approved By

---------------------------Supervisor

----------------------------Head of the Department

----------------------------External Examiner

Certification

It is certified that this business project entitled as “Water Mist Electric Fan” prepared by
     Ali Ahmad Fazal Mehamod Tahir Tufail Ahmed Usman Ejaz Yasir Arfat

In M.Com (Evening) Program, has been approved for submission to University of Gujrat, Gujrat.

-----------------------------------Supervisor

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Table of Contents Chap # Dedication Executive Summary Introduction to project The Opportunity Market Research business model Target Market Management Team Description of what business needs Amount of Capital The Business Company History Vision & Mission Objectives Competitive advantage Current status and requirements Management Team Management experience Technical expertise Board of Directors Key Professional service providers Law firm Accounting firm Business Consultants Company Structure & Ownership Organizational Structure Particulars Acknowledgement Page No. Page 4 .

structure Legal Structure Legal form of organization Intellectual property Industry Analysis Industry trend Industry size Industry attractiveness Description of target market Competitor Analysis Marketing Plan BCG matrix SWOT analysis PEST analysis Segmentation Concept testing Usability testing Channels of distribution Promotion & Advertising Operation Plan Method of Production Availability of qualified labor Financial Plan Sources of fund Income statement Balance Sheet Critical Risk factor Marketing risk Management risk Financial risk Operational risk Page 5 .Organizational chart Description of org.

We would also like to extend our gratitude to all other persons. who kindly consented to supervise this project and provided valuable help and guidance in every stage of the project. Especially our group members. who gave us the strength and abilities to complete this project. who helped and encouraged us. Page 6 . We are highly thankful to Mr. either directly or indirectly contributed to the completion of this project. who. This project is the result of full commitment and hard work of the group members who tried in their best to show the true picture of a newly formed soap and detergent manufacturing company in Gujrat. Waseem Ullah (University of Gujrat). We are satisfied with our work.Business Project Mgt-410 In the name of Allah the most Beneficent & Merciful ACKNOWLEDGEMENT All praise is to Allah.

DEDICATION First of all we are grateful to ALLAH the Almighty for giving us the courage to complete this project in a short span of time. Page 7 . Evening program. We dedicate this business plan to the department of ―Commerce & Accountancy‖. This project is also dedicated to the group members & our supporters who have devoted their precious time for its preparation. University of Gujrat. they have helped us a lot in making this project. Waseem Ullah for his selfless efforts towards the completion of this business plan. especially to Prof.

especially in the summer season as u know in hot summer season electric fan flow hot air due to high temperature so by keeping in this view we develop a new type of electric fan which include a water mist through which fan can flow cool air. it also cover high degree of air flow with less energy consumption. We start our business with the estimated cost of the venture is Rs 80000000. We are able to get the first mover advantage in the market as there is no other competitor present in the all over Pakistan. This applies to our venture as well so the management team in our business comprises of very able. so we initially target the market of Gujranwala division. these companies are providing quality electric fans at very expensive rates. In exit strategy we windup that part of the business in which we are bearing loss and if the whole business is failure then we will dissolve the business and return will be distributed among partners according to the proportion of investment. So we are entering to solve this problem by providing best quality of electric fan with a new innovation of water mist that is a very economical and provide the cool air which is a cheap substitute of water cooler and air conditioner.EXECUTIVE SUMMARY: Fan is a daily use item. In Pakistan many companies working in the domestic and international market. The finance for the said cost of venture is 60% debt & 40% equity. There are lots of opportunities available in the Fan Industry because the growth rate is high due to increase in Global warming in Climate and increase in Population. efficient and talented people who have expertise in their related fields. The management team of any organization is of extreme importance and is crucial to the success and development of any organization. The name of lender is Faysal Bank Limited that the required loan @ 14. Its utility increases.5% Bank Spread) per annum against the securities pledged & the personal assets of the partners. Finance is the backbone of any organization. Page 8 .50% (12% KIBOR + 2.

It is forecasted the demand of electric fan is going to high day by day with the changes in environment and global warming is also a signal of electric fan demand. Picken Executive Director The Institute for Innovation & Entrepreneurship at UTD URL: http://innovation. Three central characteristics of a viable opportunity: 1. Potential economic value (the capacity to generate profit) 2..e. profit) that previously has not been exploited and is not currently being exploited by others.edu/documents/OpportunityEvaluation. Newness (something that did not exist previously) 3. Our results also supports that electric fan is economical to purchase then the Page 9 . Joseph C. The result of Our market research shows that 90% respondent are strongly agree there should be water mist Electric fan in home and office and human life is unsustainable without the use of electric fan in a summer season and its help to reduce many diseases that caused by the mosquito bites. Pakistani manufactured fan have high air flow than Chinese manufactured fans so that with the new innovation of water mist with fan air make it a exceptional product for consumers. Perceived desirability (moral and legal acceptability in society) Opportunities emerge from a complex pattern of changing conditions (RF1 Dr. our results also support our product is life time product and have competitive advantage then other electric products. 1 The Business The Opportunity: A perceived means of generating economic value (i.Chapter no.utdallas.pdf) There is great opportunity to invest in this type of business and gain a huge amount of profit through the domestic sale and as well as Export.

so that as overall results of our survey shows this business of water mist electric fan manufacturing is highly prospective sector and we select it for our business. MARKET RESEARCH RESEARCH OBJECTIVES In order to conduct the market research for this project the team members identified following research objectives:       To find that is there any demand exists for the water mist electric fan in market? To check the customer’s preference for the new innovation in electric fan? To find the customer satisfaction level from the existing electric fan? Customer attitude & feeling toward the new technology in electric fan? To identify potential segment to be targeted To get the information about the customer preferences regarding mist fan? Page 10 . we also ask about overall business of electric fan manufacturing which shows the positive response and fan manufacturing is profitable business industry.other products like Air Conditioner.

Our sampling technique is random sampling design. cool wavier) 100% respondent Shows that electric fan manufacturing is the profitable sector in Pakistani electric industry RESEARCH METHODOLGY: On the basis of inquiry mode our research is quantitative and the study design is cross-sectional or one–shot studies. Page 11 . customers’ characteristics we focused upon the primary data from the target market and to serve this purpose a closed ended questionnaire has been used. To collect the data regarding the customer interests.Our results in Statistical Percentage shows followings: Do you think there should be water mist Electric fan in home or office? 60% respondent shows that human life do not sustain without electric fan in a hot summer season? 70% respondent Shows that electric fan reduce mosquito bites at night and u feel safe from many diseases or illness 60% respondent Shows that it is economical to purchase 90% respondent Shows that Pakistani manufactured electric fan provide better air flow than Chinese manufactured electric fan 80% respondent Shows that electric fan is a life time product 90% respondent Shows that water mist electric fan is the substitute of other cooling products 75% respondent Shows that electric fan is the basic need in hot summer season regions like Pakistan 50% respondent Shows that there should be hi-tech electric fans 10% respondent Shows that there is any Risk of Electric fan for consumer 36% respondent Shows that electric fan helps to reduce the temperature of other devices (refrigerator compressor temperature) 65% respondent Shows that water mister fan economical as Compare to Air Conditioner 100% respondent Shows that the electric fan business reduces the unemployment rate 60% respondent Shows that electric fan is affordable for all classes of our society 95% respondent Shows that electric fan have a competitive advantage over other electric devices (room cooler. consisting of 17 questions. about the market trends and frequency of uses of electric fan’s we also conducted interviews. And at the end to draw the inferences the data was processed through the statistical percentage. To have the awareness about the competitors.

Description of Target Market We divide the whole market on geographically basis in six areas.towns. so that we could rely on survey findings Marketing Strategies The decision of targeting should be thoroughly based on the best fit of product/service features and the attitude. and acceptance level. real state builders. we drew out some conclusions. perceptions. Sialkot.. interest. to have a concrete assessment about the preferences. Gujrat. The places were assumed to be having people belonging to the demographics of our target market. contractors . because that area is more populated and congested. construction agencies. and furniture market. Hafizabad. characteristics of the customers. Mandibahawaldin. The methodology adopted was random sampling from selective places like housing colonies. Target Market Our target market is limited to national boundary.Results: Based on the survey that we conducted having a sample size of 100 local respondents. and Narowal.       Gujranwala Gujrat Sialkot Narowal Mandibahawaldin Hafizabad Page 12 . our main focus will be on Gujranwala division which is consist of Gujranwala. expectations. A list of these conclusions is described above.

Competitive Position with Target Market: We have a strong competitive position because we are the first mover in providing the innovation in electric fan with water mist which makes it an exceptional product to consumer.Gujranwala division is geographically situated at very important place. on the east Shakrgarh and in south Lahore. (Ref: http://en. The main problem that our company identifies is the air of electric fans become also warm in hot summer and benefit convert to harm. Page 13 . The area of the Gujranwala division is 3198(km2). How the Proposed Business Solves the Problem or Fills the Need: R&D (Research and development) function of ―Crown water mist electric manufacturing‖ business has identified multifarious opportunities to open new businesses in Gujrat city and got city Gujrat is a great place for installing industrial unit because of low labor wage and availability of skilled labor and Raw material for producing fan is economical and excellence. It is bounded on the North by Jammu and Kashmir. in the South-West Sheikhupora and in south Lahore. As it is identified that the major area of Pakistan has hot climate and the period of summer season is much long as compare to winter. no water mister fan manufacturing business and easy availability of raw material in these areas.org/wiki/Gujranwala) Gujranwala is also main city of Pakistan and situated at the south of Sialkot. on the west Mandibahawaldin. So a large number of customers can be attracted and retained in this target market because a large number of people are live in this area. Our organization will provide quality water mist electric fans to that whole market because our business targeted market is niche and the other reason behind entering this market is competition. The population of Gujranwala division is 2661360 according to the consensus of 24-june-2011. so our R&D develop an innovation in existing electric fans with water mist.wikipedia. on the north Wazirabad and Gujrat in the west Hafizabad.

We can best estimate our cost and projected sales because of these reasons. this is first time in Pakistan that our company is going to launch a new type of fan.Brief Introduction of Company: In Gujranwala division there is not a single factory which is providing water mister electric fan. This is a partnership business. This experience and education must help us in achieving short term plans of company and also long term plans of the business Page 14 . Research of this kind has been launched to find out what kind of problems people are facing. who have strong academic achievements and plenty of good practical experience about this business. Another reason to start this business is to have one member in management team who has valuable experience in managing electric fan manufacturing business and also has been in charge of fan manufacturing company. We are five partners.

Business Type: Electric Fan manufacturing with water mister Business Name: Crown water mist electric Fan Status of Business: Partnership Business Product nature: Water mist Air flow Electric fan product for home and office use Product: Water Mister Pedestal Fan. Page 15 .

Excellence and Continuous Improvements: Excellence and strong commitment to continuous improvements are essential to our ongoing success. energy and passion who have the necessary executive. to give benefits and rewards to the employees as they deserve. Cooperation and team work: We believe that high cooperation among team containing right diversity can achieve what individuals alone cannot. Page 16 .Vision Statement: To become the premier company of the world by developing the core customer values and providing products of best quality. professional and people skills to inspire a group or an organization to set high goals and achieve them willingly. to maximize the wealth of all partners. Mission Statement: We will provide value product above than customer perception. to make environmental friendly products Core Values: There are following core values of our business Management We value management and leaders of high integrity.

creative and high performing work environment. Satisfaction and Entertaining: Entertainment. Having fun in our work should be a normal experience for everyone Page 17 .Ethics and honesty: We do care how results are achieved and will demonstrate honest and ethical behavior in all our activities. Open Communication We value communications that are courteous and open and that enables to do our jobs more effectively by providing information that contributes to the quality of our judgment and decision making. Adopting to change Success requires us to continually strive to produce break through ideas and adopting to change that result in improved solutions and services to customers Appraisal and growth: Strive to create an organizational environment in which individuals are encouraged and empowered to contribute. satisfaction and recognition are essential elements of a healthy. grow and develop them.

As you know in a warm environment your body sweats and perspiration forms on your skin. Competitive advantage: We will follow differentiation strategy as we will provide features according to our customer’s demands and needs. To initiate the fan manufacturing unit with a greatly targeted advertising campaign To sustain hard control of costs. We performed marketing research to select new features for our product ―water mist fan‖ and we will concentrate on this feature along with attractive price package to attract keep and grow our business customers. Energy is used in that process and the result is coolness on the skin. In addition. and cash flow through efficient management    To maintain a high standard of product and service provided.Objective: The main objectives of the fan industry business project are:    Maximize on brilliant chance to take out utmost profits. To be the leading company that attains the goals of profit maximization and value maximization for all the stakeholders of the company. the moving air is more efficient at removing heat from your body. Page 18 . To take advantage of outstanding location opportunity at city Gujrat. operations. As the circulating air from the fan moves over your skin it disappear the perspiration.

Description of the business model: Our valuable product will include: Misting Fan Kits Pedestal rod Copper wire Boll Bearing Nakkah Dome Pump Grill Foot stand Electric wiring Page 19 .

furniture. rotomolding. petrochemical.Our Product: Water Mist Fan Application of our product: Home and Office Indoor. hydroponics. plastics. leather tanning. foundry. flowers. bakeries. Food Restaurants. horse stables. tobacco farming. garden. electric-electronic. supermarkets. etc. forming. fish markets. greenhouses. pharmaceutical. etc. Page 20 . confined spaces. vacuum. hot summer season Agribusiness Poultry farms. shoemaking. Industries Metal-mechanic. etc. fruit stands. textile.

gymnasiums. print shops. dry cleaners. Specification of our product: SPECIFICATION OF MIST SYSTEM PART Mist System: Centrifugal mode.Services Fitness centers. bracket. bars. saunas. parking lots. housing. schools. night clubs. clubs. pharmacies. base) Height: Adjustable from 1700mm to 2000mm Fan motor protection: Water drop proof Speed: 3 Speeds Adjustable Fan blade: Aluminum Tilt adjustable: 30 degrees up and down Oscillation: 90 degrees automatically Page 21 . Mist Capacity: Adjustable to water valve Water Tank/Tab 36-40 liters unbreakable plastic tank Continuance misting: 6-8 hours Mist drop size: < 10μm Available area: 40 ㎡ Available distance: 8m Temperatures drop: 3oC-8oC SPECIFICATION OF FAN PART Fan size: 26‖(650mm) Stand type Material: metal (grill. etc.

The product would be focusing the price conscious segment of the market by providing different and improved quality product at lesser price as compare to other cooling devices.         Stress on excellent service to the other wholesalers. . Improving the packaging will increase the overall distribution and selling techniques. Strict control of all costs at all times. Rich and easy availability of raw material. Managing our internal finances and cash flow to enable upward capital growth. The keys to success in achieving our goals are:          Be the first mover in the market to provide a water mist fan as an innovation in existing fans. Selection and procurement of consistent quality raw material would be another contributing factor for carrying out winning operations. Provide an exceptional product and quality that leaves a sense. Cost efficiency through better management.How the business will create a sustainable competitive advantage    Continues assessing the market needs through surveys and questionnaires. Availability of low cost specialized labor. The Company will be strategically located to maximize the revenue derived from the sales of the quality product. without exception. Our unique product will be providing us competitive advantage as compared to other fan manufacturer operating in the industry. Competitive price of products. Page 22 . The dynamic environment will also help us gain and sustain it. Advertising and promotion for the awakening of the retail customers. Creating demand through innovation High demand of such mist fan in the target market. Large distribution channel for the sale of fan in the urban and rural areas.

High growth is expected in the beginning keeping in mind the market demand at the current time. how many are operational. Out of the total production. Also. what is the total installed capacity is. However. Market Analysis Summary: In Pakistan there are no exact figures available as to what is the total number of units. approximately 30% fans consist of pedestals. excellent quality and services of the experts. According to the industry sources (including manufacturers and vendors) there is a substantial demand for quality fans on a large scale. and what the operational capacity is.Current Status and Requirement: Crown water mist electric fan business will be established by partnership which is formed by us according to the needs of the time. 7% brackets and the remaining 63% are ceiling fans1. If it gets the healthy response production units will be established in other locations of the country. The business needs extensive efforts in all the sectors to move forward. using the latest technology but no one is producing the water mist electric fan. Page 23 . The industry produces on average 8 million fans a year with an estimated value of Rs 17 billion. The sector comprises over 450 SMEs. and is one of the industries that existed at the time of independence. The fan industry is mainly clustered in four major cities namely. there is room for new entrants who want to manufacture the quality products. Lahore and Karachi. Like extensive marketing. of which 300 are based in Gujrat and the rest in Gujranwala. Gujranwala. Gujrat. The industry belongs to the light engineering industry category. Every business wants to accelerate in the market. Its location will be in Gujrat. 98% of the countries production is centered at Gujrat and Gujranwala.

Pakistan’s industry mainly dominates in production of fans which consume less than 125 watts of energy. HS 8414.000 To Exports (%) 0.59) are classified as industrial fans. Most of the raw materials used by the fan industry are directly or indirectly imported from different countries.e. accounting for 40% of total industry sales. Some of the raw materials used in the manufacturing of a fan are: electric steel sheets. aluminum. Pakistan Economic Survey 2008-09 and UN Commodity Trade Data Base) The sector employs around 30. Over the last four years the exports from the sector has increased by about 120% to around US$30 million.Besides small and medium units. The fans that consume less than 125 watts of energy (SITC 74341. employment is seasonal as most factories operate for only five to six months during the year. from motor winding to high-pressure dies casting. a few units are quite large and have integrated system i. Currently only 10-15% of the industry is exporting whilst the remainder is only supplying in the local market. HS 8414.2% Global fan trade is classified on the basis of energy consumption. ball bearing. Indicator To GDP % Value 0.000 thousand workers.51) are generally referred to as domestic fans and the fans that consume over 125 watts (SITC 74343. enameled copper wire.000 To Indirect Employment (Numbers) 90. Sales are also fairly concentrated with five large firms in Gujrat and three in Gujranwala. steel rod and PVC. Page 24 .27% To Direct Employment (Numbers) 30. (Source: PEFMA. However.

As a result of the UNIDO’s benchmarking exercise we have also identified that those firms which have large local market demand are better at innovation and new designs as compared to those firms which are solely focused on export markets. has shown high levels of growth in the recent years suffer from low levels of productivity. Pakistan’s exports are mainly concentrated in low-income markets. The reason for this could be that. The average export price of Fans made in Gujrat and Gujranwala is around $23-25. the local consumer is demanding better quality and design products as compared to consumers of the current export markets.org/sector-products/industrial-products/fan) Market Segmentation Our market has segmented is based upon the only geographic segmentation because the warm climate areas are the main segment where we can sold our product.Exports make up only a small fraction of world trade in fans. Moreover. whereas. (http://trtapakistan. the surveys conducted also suggest that current export markets usually offer lower margins as compared to local markets. The retail price of Pakistani fans in its export markets on the other hand varies between US$32-35. such as Africa. most of the companies operate under locally created brands with only a couple moving to international branding of their products. The industry also requires testing and certifications of their products mainly conducted or required for electrical safety. inadequate technology upgrade and shortage of skilled staff. Certifications are normally required for export markets. which is much lower than some of the more sophisticated fans which sell for around US$400-500. The sector. Additionally. general performance and safety testing are conducted regardless. which amounts to around $3 billion. Page 25 . our target market at first level is Gujranwala Division and it may expands if we got the healthy response from the customers. Bangladesh and some Middle East countries. whereas.

they want a comfort and cool environment with they live and work. Market size is quiet big and indirect competitors are very few to serve this market. Page 26 . environmental conditions of Gujranwala division are not good so that people want to remain cool by using this type of fan. and soul with our special water mister technology. People now want to enjoy life. Market is growing with the passage of time and new trends are being adopted by people of Gujranwala divisions. body.Market Size & trend: Our market's needs are simple: people want to be relaxed and feel good. Our competitive edge is that we offer differentiated electric fan that creates a relaxing atmosphere that can refresh the mind. We aim to please people who want this. It has been determined that our target markets are also interested in this type of innovation in electric fan which provide cool air without making wet and economical as compare to other cooling products like room cooler and Air Conditioner with a competitive edge because we are committed not only to the needs of the community. And construction work increases day by day so that the need and demand of this type of water mister fan become high. ―Gujranwala division population is approximately more than 2661360 according to june 2011. but the global warming. but its concerns as well. they want entertainment. Life style of people has changed due to immense usage of technology.

Chapter no 2 Management Team
Board of Members:
     Chief Executive Officer. Purchase & Quality control manager. Marketing manager. Operation & production manager. Finance manager.

Details of senior management:
There are five members in senior management. Each member of management team is specialist in managing the activities relevant to its department. The names of five people forming board of members of the business are: 1. A CEO’s responsibilities: everything, especially in a startup. The CEO is responsible for the success or failure of the company. Operations, marketing, strategy, financing, creation of company culture, human resources, hiring, firing, compliance with safety regulations, sales, PR, etc.—it all falls on the CEO’s shoulders.(http://www.steverrobbins.com/articles/ceojob) Mr. Ali Ahmad is the Chief Executive officer of the crown water mist electric fan manufacturing company and very much responsible in his all activities of the business in the selection of members of management and he has also experience in running fan manufacturing of electric fan of all kinds.

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2. Yasir Arfat marketing specialist having valuable experience in running and managing marketing company, he also has a experience of as a brand ambassador GN industries. 3. Usman Ejaz finance specialist having experience in accounts maintenance and book keeping in a Dawlance group of companies along with having master’s degree in master of Commerce with specialization in Accountancy 4. Tufail Ahmed will serve as Operation & production manager with educational background in Commerce with specialization in Accountancy 5. Fazal Mehmood Tahir another board member with the educational background in Commerce and with specialization in Accountancy will serve the duty of purchase and quality control manager of the business.

All the members of the board are able enough to manage the activities of the business both technically and administratively in an efficient and effective manner.

HUMAN RESOURCE REQUIREMENT
Descriptions Designation CEO Finance Manager Marketing Manager Operations & Production Manager Purchase & Quality Control Manager Supervisors (03 x 15000) Technician ( 06x 12000) Security Guard(02x7000) Skilled Labour 10x10000 Helpers 05x5000 Sweepers 01 Electrician (06x9000) Salary/Month 40000 30000 30000 30000 30000 45000 72000 14000 100000 25000 7000 54000 477000

1st Year
Rs. 480000 360000 360000 360000 360000 540000 864000 168000 1200000 300000 84000 648000 5724000

Total Salaries (Rs.)

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Board of Directors:
The organizational chart describe here in this diagram. The all core decision of the organization will be taken by the Board of member. The CEO will be the representative of the Board of member in the organization’s regular activities. All the functional head responsible for the performance of their function report to the CEO.

Board of Advisors:

Advisory board of the firm constitutes 4 members from different professions. The names of people and their valuable experience are mentioned below: 1. Mr. Saqib Fareed sheikh is a Coordinator in evening program and a prominent staff member of faculty of management and administrative sciences, and students’ project advisory officer, university of Gujrat city campus, Gujrat. 2. Mr. Waseem Ullah is key member of faculty of management and administrative sciences University of Gujrat City Campus, Gujrat 3. Mr. Yasir Aftab farooqi a faculty member of management and administrative sciences, University of Gujrat City Campus, Gujrat 4. Mr. Sajid Mahmood a board member and a key person in the management of the business.

How the advisory board will be used?
Mr. Yasir Aftab farooqi belongs to business family of Gujrat. Being part of a business family he got very good experience in managing both technical and administrative aspects of the business. No doubt his experience is not in the same industry as we are in but his valuable experience in the business can be a valuable source of information and ease for us to manage the business activities efficiently and effectively. His valuable and abundance assistance regarding different matters of the business will be used by the management of the business in managing day to day operations of the business as well as his assistance will be availed as and when needed.

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Legal advisor: To assist us in all upcoming and potential legal matters such as formation of partnership deed extending the business relationships among different partners of this business and advising and assisting us over evolving government rules and regulations regarding business matters we will be hiring the following Law firm: Name of the firm: Abdullah Law Associates District court Gujrat. Mr. Gujrat. Phone no: 0333-8446073 Location and address of the firm: Kachari Chowk Gujrat Page 30 . Selection of Advisory Board: All the 4 members selected to facilitate the board members of the business have been hired with the mutual consent and close agreement of all the members of the board. These members of advisory board and the board members of the partnership are supposed to work in the best interest of the business.Mr Saqib Fareed Shaikh another member of our business advisory board will assist the management of the business in building. Third member of our board of advisory is Mr. Key professional service providers to our business: To keep our business up and running we really need the professional assistance of following firms working in different areas. We will be using his experience and expertise in the relevant business to assist the customers in enjoying their spare time along with refreshment always available at our business premises. Waseem ullah serving people in educational field. and increasing long run customers’ relationship because of valuable interpersonal and communication skills. maintaining.. Sajid mahmood expertise in finance will be utilized in monitoring day to day business along with business transition he is supposed to manage as his regular duty.

reports such as cost and service delivery and timing reports will also be the part of our accounting records to assist management in projecting and forecasting the business activities. Business consultant: In order to be a successful part of professionals will be there to assist us in learning and adopting existing and evolving techniques and practices essential to keep to our business up and running in an efficient and effective manner. ledgers. trial balances. balance sheet and others like statement of changes in owners’ equity etc . Page 31 .Accounting firm: In order to assist business management in decision making regarding different matters of the business we will be preparing different types of accounts and reports of financial data such as journals. Such records will be maintained in manual as well as in electronic way to make our accounting system efficient and smooth and we also use accounting software for financial Reporting and for quick design making.

There will be following characteristics of the ―Crown electric water mist fan manufacturing‖. The hierarchy is given as under Organizational Chart: Marketing manager Purchase & Quality control manager Chief Executive Officer Operation & production manager Page 32 Finance manager .Chapter.3 Organizational structure. Organization type: manufacturing Decision Making: Decentralized Involvement of Employees: Maximum Pattern of Communications: Vertical and Horizontal There will be full hierarchy within the organization which will define the span of control which rests with the top. because low level employees will remain more close to the customers. Decision making will be decentralized so that organization can make a better decision after consulting low level employees. intellectual property and ownership Company Structure: The entire business organization will be of manufacturing organization. middle and lower management.

and the detail about each job is given below: Board of members of partnership: There will be a Board of members of partnership consisting of five members that are the partners in business. every partner will be member of the board and will perform his duties when and where required.      Holding Two general meeting in a year Establishing objectives up to one year time span Defining long term objectives Making decision for the betterment of organization Consideration of draw backs of business and their proposed solutions Page 33 . there will be two meetings in a year for discussing the different matters of business and find the solutions of the different problems and issues faced by the business. The eligibility of each member is as follows.Organizational structure description: There will be the following duties and responsibilities of each member in the hierarchy and other lower level employees. There will be following responsibilities of Board of members of partnership.    Must be partner of the firm Should be talented and well mannered Must have a broad vision All the members of the board will make the mutual decision which is best for the organization.

by examining the capabilities and experience of a person from the given board. A supervisory body in the organization. Page 34 .General/HR Manager: CEO is the also act as a general manager and perform the human resource functions of the Business. Check on the internal working of the organization. CEO consults the issue with the all partner for the best favor of business. He will make a check on the working of each manager and every manager will report to general manager for his duties and work. Recruitment & selection training & development Performance appraisal Employee retention Employee welfare Manager Finance: There will be finance manager and at start it will be Usman Ejaz. There will be some duties and responsibilities of a general manager which are given as follows:            Make a control check on each department. Selection of a Finance Manager: Finance manager will be selected by the Board of members of partnership with their mutual consultation. Responsibilities of a CEO as a General Manager: A general manager will look at each and every matter in the organization and will have a power of making swift decisions. Taking best decisions promptly. Performs the duties as an HR manager also. Every manager will report to General Manager. Work as a liaison.

      Prepare a Budget Plan for short and long duration Prepare and review the financial statements Reporting to other Departments and in Meetings Act as a supervisor on billing department (payable and receivable) Forecasting of future expenditures.Eligibility: There should be following qualities and characteristics in a finance manager. Acting as a controller in the company Responsibilities: A HR manager is responsible for entire gamut of HR which includes          Recruitment & selection training & development Performance appraisal Employee retention Employee welfare Statutory compliance Liaison with Government officials etc. Administration activities like housekeeping Estate maintenance Security travel & ticketing pantry etc. so there are some following responsibilities of a finance manager. Page 35 .    Educated in relevant field Experienced in relevant field Selected by the Board of members of partnership Responsibilities: A finance manager has a lot of responsibilities regarding financial matters of the business. finance is a key department of any organization.

He will be responsible for establish and developing distribution networks for the store’s product lines.        Looking after day to day office activities Record attendance and checking attendance register Recruitment process Salary increment Counseling employees preparing offer/appointment and various other letters and issuing them to employees Studying performance of the employees and motivate them Taking in-house training sessions Preparing various MIS Manager Marketing: There will be Marketing manager and at start it will be Mr. Selection of marketing manager: Marketing manager will be selected by the board of members of partnership with their mutual consultation. by examining the capabilities and experience of a person from the partners. Yasir Arfat. Page 36 . Eligibility: There should be following qualities and characteristics in a Marketing manager.    Educated in relevant field Experienced in relevant field Selected by the Board of members of partnership Responsibilities: Marketing Manager will work within the Marketing Department of store. Marketing managers will be responsible for quality services provided to all customers by marketing staffs.

His sole purpose is to find ways to make the manufacturing process more productive by providing effective methods in its business operations. An operations manager will prepare program budgets. An operation manager will be responsible for running the day-to-day operations of the organization. These managers will service the different operations of the business and report directly to the operational manager which is the head of the operations of the business. Eligibility: There should be following qualities and characteristics in an Operation manager. by examining the capabilities and experience of a person from the partners. control inventory.Marketing manager will initiate market researches or surveys and will be responsible for analyzing and advising toward new and better products. Selection of Manager Operations and Production: Operation manager will be selected by the board of members of partnership with their mutual consultation. Assisting operation manager: Assistant operation managers of the business will be managing the operations and production of their relevant departments. facilitate several programs around the business. Page 37 . Tufail Ahmed. handle logistics and supervise employees.    Educated in relevant field Experienced in relevant field Selected by the Board of members of partnership Responsibilities: It is responsibility of operational and production manager to manage these assistant of each department. packaging and delivery of products. Manager Operations and Production: There will be an Operation manager and at start it will be Mr.

5%. Each partner among five partners will be sharing Rs. The total equity of the business is Rs. The total Profit and Loss from the business operations will be shared by the partners of the firm on equal basis.6400000 in Pakistani currency towards the total equity of the business. Rights of the partners:     Every partner will have a ready access to the books of accounts Every partner has a complete right to use the business property in the best interest of the business Every partner have an equal chance to vote in the meetings of company Each and every decision regarding any matters of the business will be done with mutual consensus and every partner will have this right etc. Page 38 . Ownership structure of the business: The Partnership deed document will describe the ownership structure of the firm.80000000 in Pakistani currency which includes 40% equity and 60% debt from bank at the interest rate of 14. In managing the operations of the business board will be there to delegate authority to different partners of the business. etc.Professionals in the relevant field will be hired by the business management to serve the different operations of the business. Legal Structure: Legal form of organization: The ―Crown water mist electric Fan‖ business organization will be working as a limited liability partnership firm under ―Partnership Act of 1932‖. Different partners of the business have the following rights and liabilities defined by the partnership deed of business.

Liabilities and duties of the partners:    Every partner will be liable to the firm for his personal misconduct in business operations While using the property of the business for personal use any partner will compensate the business for this use This is the duty of every partner of the business to properly and timely communicate any thing which is critical in managing the operations of the business and never conceal any thing crucial regarding matter of the business   This is the duty of every partner to use the property of the business in the best interest of the business And show full commitment towards duties and responsibilities delegated to him by the board etc. Trademarks and copyrights approved Trade marks: Trade mark of our business includes our value proposition statement or simply a set of values we promise to our customers. etc. Page 39 . This statement is ―Not common but special‖. Copyrights: Copyright of our business is our logo which includes both value proposition statements plus the image that reflects what we promise to deliver is quality products and services. Intellectual property: Patents.

people show the positive attitude towards the innovation of water mist technology in electric fan.Chapter NO 4 INDUSTRY ANALYSIS Industry description: Industry trends: From few years the Trends in the fan industry has been very positive in our country pushed by the many factors like the change in climate. it is also a profitable sector for us. Page 40 . so the by keeping in view the large industry size the supplier of raw material makes high investment in this area which also lead the competition between the supplier that become the cause of cheap raw material. In this area no one is producing the water mist electric fan so that it’s become the opportunity to fill the need of our customers Industry attractiveness: (Growing or Mature) The electric fan is one of the growing manufacturing businesses in Pakistan. higher population growth. Industry size The industry size of fan manufacturing business in Gujranwala division is a large and it is suitable for us that type of business due to industry size. Pakistan has emerging markets for many new technologies and investor are in high potential to invest in this type of market so when foreign investment move to Pakistan and it also lead to the heavy civil work so that the fan demand will increase. Because rapid innovations are taking place in the furnishing in fan making.

Target market: Description of the target market: Our target market is limited to national boundary. The population of Gujranwala division is 2661360 according to the consensus of 24-june-2011. Hafizabad. Description of Target Market: We divide the whole market on geographically basis in six areas. on the west Mandibahawaldin. on the east Shakrgarh and in south Lahore.  Gujranwala  Gujrat  Sialkot  Narowal  Mandibahawaldin  Hafizabad Gujranwala division is geographically situated at very important place. our main focus will be on Gujranwala division which is consist of Gujranwala. Sialkot. Mandibahawaldin. Keeping in view all these things we are hopeful to earn sufficient amount of profit for running and maintain of business. ―From all over the Division about 300000 people work overseas that contributes about Rs 3 billion every month‖. because that area is more populated and congested. and Narowal.360 represent about 90% of our targeted population. Gujrat. Page 41 . It is bounded on the North by Jammu and Kashmir. Besides all this research study shows that Gujranwala Division is famous for the consumption of its people.Profit Potential: According to the findings of our research study we are able to know that the total population of Gujranwala division and its surrounding areas is about 26. The area of the Gujranwala division is 3198(km2).61. Gujranwala Division accommodates many different industries and industrialists of Gujranwala Division will form a necessary part of our targeted population.

So a large number of customers can be attracted and retained in this target market because a large number of people are live in this area. and high income level and so on. on the north Wazirabad and Gujrat in the west Hafizabad. Because Life style of people has changed due to usage of media and economic condition.Gujranwala is also main city of Pakistan and situated at the south of Sialkot. Market Size & Trend: Gujranwala division is a large and populous market in size and diverse in nature. and that’s what we want to provide them through our innovative product. All of the aspects mentioned above encourage our idea to establish a Mist fan in this region. good literacy rate. Competitive Position with Target Market: We have a strong competitive position because we are the first mover in providing the innovation in electric fan with water mist which makes it an exceptional product to consumer. large & small enterprises. There are ―about 1. no water mister fan manufacturing business and easy availability of raw material in these areas. women empowerment. Our organization will provide quality water mist electric fans to that whole market because our business targeted market is niche and the other reason behind entering this market is competition. a large number of institutions. changing in their life style and look unique. Page 42 .059 cottage-level and small to large-scale industrial units operating in the Division‖. They want improvement in living standards. enriched with the industrial and official people. Gujranwala division is also known for its clay with which Gujranwala division have for long produced quality pottery. in the South-West Sheikhupora and in south Lahore.

Segmentation According to Geographical: Basis of Segmentation Geographic’s Country Area Density Pakistan Gujranwala Division Rural .Urban Variable This segmentation is based upon the observation and interview of managers of few manufacturers Target Market: The market research shows the following segment is the most potential segment to be targeted in order to gain profits.Segmentation: Market Segmentation: Our market has segmented is based upon the only geographic segmentation because the warm climate areas are the main segment where we can sold our product.  Geographic Page 43 . our target market at first level is Gujranwala Division and it may expands if we got the healthy response from the customers.

php 2.com/per-capita-income-of-pakistan.blogspot. the raw material that use in the our product is mostly same as use in the other fan making business only water jet mist kit and pump are the main difference with our indirect competitor.pakistan. Islamabad 3. Pakistan-cities.urduworld.com/2010/01/Gujrat. Chapter references 1. Indirect Competitors: There is large number of indirect competitor of our product mostly running their production in Gujranwala and Gujrat cities.einfopedia. Rural to Urban Migration in Pakistan: The Gender Perspective By. http://www. Shahnaz Hamid Pakistan Institute of Development Economics.com/109/gujrat-Pakistan-311454/ 4.htm Page 44 . www.Competitive analysis: Direct competitors: There is no direct competitor of water mist electric fan in our target market so that it is favorable for us to produce this type of fan in this region.forum.

how we are different from others and how Crown Water Mist Electric Fan will use standard quality in its product. leaflet. 5 Marketing Plan Marketing Objectives: Our main objective is to develop positive words of mouth about’ Crown Water Mist Electric Fan by giving value to our customers which will ultimately help us in customer retention. We use broachers. To build and retain our customers. We will create awareness about our products of Crown Water Mist Electric Fan through the use of different mediums. print media and cable ads to make people aware about Crown Water Mist Electric Fan. Marketing department will perform following activities to achieve these goals:    To run a strong marketing campaign.Chapter no. billboards. In this campaign we are focusing on our product. To act proactively regarding the marketing trends. Page 45 . We are focusing to attract people on the basis of our environment and the product. reasons that why we are launching this business.

Page 46 . After considering all the above mentioned facts we can say that our product will be a QUESTION MARK (?).BCG MATRIX: The position of Crown Water Mist Electric Fan in the BCG matrix can be identified on the basis of following facts regarding our product:     Industry growth is quite high low market share is there for the business mainly because of introductory stage the product has strong first mover advantage Marketing and quality assurance are required to make the product a star.

Competitive Grid: Name of Features Crown Water Mist Electric Fan UNIQUE PRODUCT Crown Water Mist Electric Fan is offering unique product which is totally different from its competitors. environmental analysis should be continuous and feed all aspects of planning. Offers many products that are common in market. By the name of this company people only know about fans not mist fans. Overall environment is good. Very tough environment. Environment Relaxing environment with traditional outlook along with the pure fan industry. Brand Name & Recognition Our brand name is completely understandable and customer can easily judge the nature of product. It is very important that an organization considers its environment before beginning the marketing process. No special product No special product It has common name which is not understandable by customer. GFC FANs ROYAL FANs PEST Analysis: PEST analysis is used to asses the macro environment forces and their potential to influence the business. In fact. These forces either produce opportunities for a business or become a threat for it to operate successfully. Page 47 . Royal fans give its products in market at very high rate which is not affordable for customers. Specialty We have special product in form of mist fans.

 Income level in Gujrat is relatively higher as compare to the many other regions in Pakistan.Political & Legal Environment: Political and the legal environment can affect any business a lot. The economic condition of the economy and market is as under. Because Gujrat is a home to the many industries and a large number of its labor force is working abroad2. So increased in the income means more money to spent on the luxuries and facilities of life. Our business is also flourishing and in future our vision is to export fans that why political structure can effect our business as well.76% in 2009-2010 and it is expected to be 2. can affect the prices of raw material. Page 48 . Interest rate by the state Bank of Pakistan is 13. Trade policy like tariff.5% in the year 2010-2011. showing a Expected inflation in the country would remain at 16.   Tax rates and tax policies involve many types of variation and challenges.      Capital and finance is available at the interest rate 13 %.  Per capita income of Pakistan is increased from 736$ to 1207$ from the year 2004 to 20111. quota or any other by the Govt. Economic forces: Economic forces are one of the major determinants of our business.39% 2010-20113. Income tax rate is 20 %.50 percent in 20114. GDP growth rate in Pakistan has been 3. tight monetary policy. Although the political situation in Pakistan is established to some extent but it involves a lot of complexities and uncertainties.

Social:  Estimated population of Pakistan is 184.). Due to the increase in the literacy rate people are becoming more conscious that can generate more customers on the purchasing of facilities for life.943/female31. Demonstration and ostentation plays an important role in the purchasing decision of consumers. New means to provide the beautiful and attractive designs can have a positive affect on the consumer satisfaction.   New technology for die casting has been introduced.572) 15-64 years: 59. 092.791 (July 2010 EST.786).658.404. As many of our respondents showed their dissatisfaction with the products of existing fans. People fall under our target customers’ show their desire to response positively for the fans.037.173/female 49.      The population of Gujranwala division is 2661360 according to the consensus of 24june-2011. These technological forces can be described as under. Publicity and advertisement responsiveness is increasing.500. People are becoming more brand and status conscious. 0-14 years: 36. Page 49 . Technological:  According to the nature of our business technology and the technological factors can play a vital role in the development and progress of our business. Believe there is a need for ―mist fans‖ in Gujrat.1% (male 53.7% (male 33.

performance.   Lack of political framework: (no recognition at policy level).Due to ESS shortage and high prices. electric steel sheet (ESS) is also a major item in fan manufacturing.SWOT Analysis The SWOT analysis of the industry is as under: Strength:       Extensive labor is available Produces at lower cost Capacity of Production Self Sufficient Machinery is available Special industrial zone is established Weaknesses:  Ball bearing is an important part that ensures smooth running and noiseless working of an electric fan. It determines the quality. fan manufacturers are using Mild Steel Sheet (MSS) the motors manufactured from this material are not of good quality and use more electricity. Resource mobilization was the major issue to get short-term wins.  Lack of articulation culture and empire building attitude at all levels. durability and electricity consumption of a fan .  Like ball bearings. Page 50 .

      Weak research and development Weak technology Cost of imported raw material is high Lack of policy framework Low capital-output ratios Unskilled labor Opportunities:      Environmental changes WTO will allow to export more Potential markets could be explored Increase in demand with increase in population Industrial Fans could be focused Threats:          No focus on industry Technological shifts Quality of Fans Shortage of energy Increase in prices of raw material Security threats Inflation Change in government policies Pressure of new entrance in market Page 51 . Too much high prices of import raw materials.

 Rivalry Among Competitors (HIGH) Crown Water Mist Electric Fan has a high rivalry among its competitors because it has huge number of indirect and direct competitors in the industry. This attracts the new entrants to get enter into this industry. with large numbers of competitors and profits. This is because fan industry is a growing industry.Porter’s Model  Threat Of New Entrant (HIGH) Threat of new entrants for Crown Water Mist Electric Fan is high. Each fan company is the substitute of Crown Water Mist Electric Fan. which creates an intense competition.  Bargaining Power Of Buyer (HIGH) Bargaining power of the buyer with Crown Water Mist Electric Fan is not high because of the unavailability of this type of product in the industry. Page 52 .  Bargaining Power Of The Supplier (LOW) Bargaining power of the supplier is low because of the availability of large number of suppliers in the market.  Substitutability (HIGH) Substitutability for our business is also very high.

Thus this target market may provide a consistent foundation all year long. Affluent local residents 2. the affluent local residents will provide us the business on on-going bases. Page 53 . For example.PORTER COMPETITIVE FORCES AFFECTS ON CROWN WATER MIST ELECTRIC FAN Low Bargaining Power of supplier Bargaining Power of Buyer Threat of New Entrants Threat of Substitute Rivalry among competitors   Medium High    Market Segmentation: At Crown Water Mist Electric Fan we have done Market segmentation on the following basis: Geographical: Country: Pakistan Division: Gujranwala Density: Urban and Rural Target Market: Our target market for ―Crown Water Mist Electric Fan‖ is: 1. Building contractors The benefit of this mix of customers is that it helps to maintain consistent business throughout the year. New built colonies 3.

 Building contractors Building contractors are our target customers by there help we can increase our sales. Crown Water Mist Electric Fan would be the best fans to purchase for the people who built new houses. Moreover Gujranwala division is an industrial area where fan and furniture industry is the most prominent and there is enough potential for Fan industry to flourish. Crown Water Mist Electric Fan is quite near to the industrial area. so people are enjoying healthy incomes. Gujrat is being considered an industrial city and is famous for fan manufacturing in Pakistan. Furthermore self employed people could be potential customers for Crown Water Mist Electric Fan. the marketing efforts will be done to take a special and different position among the targeted customers. Page 54 . For this.Description of Target Market:  Affluent locals: Gujranwala division is a region where most of the people are residing abroad.  New built colonies New built colonies are our target market because there is potential for purchasing more facilities for home. Positioning: Crown Water Mist Electric Fan’ Image as Brand: The image of Crown Water Mist Electric Fan as a brand will be shaped as a value added and different from the products that are already available in the market. where there are many banks and factories.

Concept Testing: In concept testing we have conducted a questionnaire survey which was filled by a sample. Page 55 .Marketing Mix: Product Strategy: In product strategy Crown Water Mist Electric Fan will be focusing on promoting its product which is according to the needs of our customer we will provide these specifications in our product that you did not find in other competitor products. In that questionnaire we asked them different questions related to our project and got positive feedback from our target market. We get the positive response through this questionnaire regarding the launching of Crown Water Mist Electric Fan. This questionnaire helps to understand the concept behind launching the idea about Crown Water Mist Electric Fan and after analyzing the idea through the response of our survey that we get through this questionnaire we have found that people are ready to purchase such fans. We are also using latest CNC technology in the production of our product.

Page 56 . We are ranging from high to lower side. Crown Water Mist Electric Fan is using the following approach in this session Promotion:  Creating Awareness about the reason for launching Crown Water Mist Electric Fan Type of campaign:  Our campaign for Crown Water Mist Electric Fan will be product differentiation long with quality focusing the USP (unique selling proposition) which aims at showing that how the products of Crown Water Mist Electric Fan is better than that of other brands available in the market by focusing on the key attributes of the Crown Water Mist Electric Fan. Those dealers and agents will supply our product to retailers and end users.  As USP is only effective when it has something for the customers so it’s the right campaign format for the Crown Water Mist Electric Fan. thus as much customer will value our product. we have decided Small industrial estate G. the more price they will be charged. Channels of distribution: Initially Crown Water Mist Electric Fan is operating from dealers and sale agents. Place: As this location best suits our idea. It will go for zero level channel of distribution. so we will be charging more for the elegant products and vice versa. We are highly relying on the customer perception about our product.Price: We will be using value based pricing strategy due to the following reasons.T Road. While keeping in mind our target market. Gujrat Zip 50700 as the location for Crown Water Mist Electric Fan.

Polite and Positive. People: The people at Crown Water Mist Electric Fan are characteristically trained to be Pleasant. Process: Purchase of Raw Material Final assembling and distribution Die -casting Motor winding Granding and finishing Page 57 . We will be giving surprise coupons to our customers..We will promote our product by using following methods.   Initially we shall give cash discount which consist on 5% to 15% depends on quantity purchased.

to project a ―a fan with mist technology‖. Physical Evidence: a) Logo. we look forward to use colors in its logo and images. we have analyzed that people really love to have such product. Colors. Page 58 .The order process at Crown Water Mist Electric Fan is primarily based on nature of our product. According to the results of questionnaire. Demand Forecasting: Different demand forecasting procedures will be adopted by ―Crown Water Mist Electric Fan‖ depending upon the type of the available data for the forecasting. Crown Water Mist Electric Fan will use some bright and eye catching colors which truly depicts the features of product. so it has used its consumer survey in 1st forecasting. Images: At Crown Water Mist Electric Fan. These are as follows:       Consumer survey Detailed questionnaire analysis Observation basis Need analysis Being a start up firm Crown Water Mist Electric Fan does not have any past data.

news papers for the awareness of household and businesses. GEO news. Advertising Objectives: The ultimate and the basic objective of the promotion and advertisement campaign are to make the customer to purchase the product or services but the purchase is the result of a long process of decision making. Advertising and Promotion: An ideal promotional and advertisement mix is that which is effective as well as economical. 70. Promotional and advertisement entirely depends upon the     Nature of product Nature of customers Nature of market Availability of funds Advertising Strategy: The advertising strategy that we opted for is the combination of Above the Line (ATL) and Below the Line activities (BTL). Advertisements on cable TV will be run especially on channels having a large no. Page 59 .e. to develop interest and desire to use the mist fans technology. It is planned to advertise in magazines. star plus (local Cable) etc. 0000.Marketing Budget: We have decided initial marketing budget Rs. And to make the customer to purchase our products the first step is to grab the attention of the customer. Above the Line activities: Under ATL we use print as well as digital media. of viewership by i. The advertisement and promotional tools that support each other are called the integrated marketing program.

Media vehicle: Print:      Jazba a local newspaper of Gujrat city Gujranwala Times Din Gujranwala Gujrat Times Daily Daak Page 60 .    The best fans technology to newly constructed houses and offices and other buildings Improvement in existing builds Supply of fans to retailers other business and services providers Media planning: The basic function of media planning is to determine whom we are approaching. what are our objectives. To pursue the customers to use the mist fans and to have a look at the different products and to evaluate it. And on the basis of these two we decide a media category. To achieve a high level of brand equity by having a distinct position in the minds of the customers. Media Vehicle and a media mix. To develop the interest of potential customers for “MIST FANS” To create customer loyalty and to maintain it Campaign theme: ―MIST FANS‖ message strategy will base on the following points. the greater number of buyers we expect.      The advertising objective initially is to create maximum awareness of this new fans technology. favorable and unique associations in the minds of the customers to facilitate the purchase decision. The higher the awareness and recall. To create strong.

Digital:    Star Plus (Local Cable) Ten sport (local cable) Geo news (local cable) Radio:     FM105 FM102 FM106. Majority of business and house hold people listen F. Because of the use of Radio in mobile phone and the clarity of F. But it doesn’t mean that the each message will be entirely different but the middle part will be slightly different. mostly watch these channels regularly. and retailers. Ads Message: In designing messages for our cable adds we have a different strategy. Page 61 . While in the ads launching on cables different channels will be given preferences to household and suppliers.M. Geo News and Ten sports because majority of the people who watch the TV. FM Radio: Our second choice for advertisement is FM AWAZ 105. So we will advertise on cable TV especially during the commercial breaks in Star plus.7 Cable TV Ads: Being operated in the local and a concentrated market our primary objective is to advertise locally. So it can be considered as another attractive tool which we will choose for advertisements.M radio.6 and Dil FM 102 because the trend has shifted back towards the Radio.106. As we are going to communicate our message to customers we have the different product for them so in the ads launching at the different channels we will emphasize at the different aspects of ―MIST FANS‖.6 FM 92.

new housing schemes. existing shops in populous areas and in the streets. Billboards placements: GTS Chowk Airport Road Sailkot Gujranwala bypass Lari ada Hafizabad Mandibahawaldin more chowk Narowal Nonar Road. Newspapers will not be focused much more because it has not too much reach to the large number of target customers. second on Service GTS chowk and the third on Gujranwala Bypass and lari ada Hafizabad. and . Narowal nonar road. Page 62 . Outdoor and Support media: In the recent phenomenon the use of billboards has become too much popular.Local newspapers: The local newspapers are another option that can be used to approach those customers who are interested in our fans. From a multinational company to a local hospital almost everyone relies on this tool. Six billboards will be hired at the different location in the city the first in Airport road sailkot. These billboards will be hired for a specific time period. The posters will be placed outside the colonies. Besides the outdoor advertisement as the supporting advertisement the posters and handouts will be used. Mandibahawaldin more chowk. Especial handouts will be designed for the visitors.

Frequency of usage: Cable TV ads will be on air during the prime time of Geo and ten sport plays and it would be 6 pm to 11 pm and during every commercial break our ad would be displayed. We will use Radio advertisement only for the first month of the business starting. and banners will be used in major and popular parts of the cities. The purpose is to generate high level of brand awareness and positive associations so to create brand and customer equity. The higher level of conformance and performance quality will add to the brand image thereby backing up the media endeavors. Page 63 . Ads in FM will be on air during most popular programs and would be repeated in these times daily.Proper Budget Allocation: Type of Activity Duration (Months) Cost (Rs.) Digital Advertising(TV) Radio POP Material Newspapers Billboards Total 3 4 180000 80000 129000 2 2 80000 480000 949000 Pull Strategy: All the above and following mentioned advertisement and promotional strategy will create a pull from customers’ end. The brand building issues will be addressed by directing our advertising efforts towards the customers and delivering to the promises made.

Promotional Material:    X-Stand Banners Posters Flyers a) Cost of POS is included in construction expense.000 45.000 60.000 15. b) Participation in trade fairs And Exhibitions N/A POP Material Activity Posters Flyers Creative charges Total Rate 12 4 Quantity 2.000 129000 Page 64 .000 Cost of Activity 24.

000 10*20 1 2 Apr-June 50. Public Relations: Public relations will be established by conducting seminars on the need of construction activities and innovative product and making them aware about use of the product.000 40.000 10*20 1 2 Apr-June 30. Another way of Public Relations building will be to contact businesses.000 100.000 480. Page 65 .000 100.000 80. This will help establishing awareness among customers and suppliers.Billboards placement Plan: Location GTS Chowk Airport Road Sailkot Gujranwala bypass Lari ada Hafizabad Mandibahawaldin more chowk Narowal Nonar Road. 1 1 1 1 Duration Start-End date 2 2 2 2 Apr-Sep Apr-Sep Apr-Sep Apr-June Rate/month Total Cost 50. Our team will try to develop long term relation dealers and customer. by following a few lines.000 80. Where we will tell the service providers how we plan to give products.000 40. We will send our representatives to arrange a small on site demonstration of our product and will communicate the theme of our product offering. real state agencies and whole sellers site BTL activity is a major source of advertising. service providers and real state builders and highlighting upon them the purpose and vision of ―MIST FANS‖. Total Size 10*20 10*20 10*20 10*20 No.000 60.000 Below the line: We plan to go for a lot of BTL activities and for these purpose retailers.000 30.000 60.

   Core benefit level………. Augmented level……. Actual level and augmented level. Dealing of the management with the customers.forum.einfopedia. to differentiate it from that of the competitors and to make it more affordable for the customers and to create customer loyalty. ―Crown Water Mist Electric Fan‖ will position itself as a specialized Fans producer in the market.urduworld. The lack of innovation and R&D in the fan industry customers will be capitalized upon and ―MIST FANS‖ will surely be in a position to charge a premium price. http://www. Oversee and provide guidance for the scheduling of all constructing and furnishing facilities and also including the developing of a price structure and the procedures to bill and collect all fees charged Desired image in the market: Pricing has a certain message to deliver about the product and the business at large. The actual features of our product differentiate it from that of the competitors.com/109/gujrat-Pakistan-311454/ Page 66 . Actual product level……. So pricing strategy here becomes a tricky matter if considered as a mean to achieve a particular image in the minds of the customers.com/per-capita-income-of-pakistan.php 2.    By establishing customer database management Oversee services management operation Provide instant help to dealers and customer when they need. The target market has all group of income. We divide our product into these three levels to describe its category. Product Strategy: According to kotler any product and service is basically consists of three basic levels….Core product level. Chapter references 1. www. Our core objective or the core function of business is to provide new mist fans for customers.

html 4.pk/default.indexmundi.3.tradingeconomics. http://www.com/pakistan/gdp_real_growth_rate.com/pakistan/gdp-growth http://www. http://www.tradingeconomics.html (CIA World Fact book) http://www. http://www.com/pakistan/demographics_profile.com/pakistan/interest-rate Page 67 .asp?page=2010###BOT_TEXT###21\story_11-2-2010_pg5_2 5.dailytimes.indexmundi.com.

ELECTRIC SHEET CUTTING MOTOR WINDING DEPT. WATER PUMP & GALLON SECTION TESTING & INSPECTION PACKING SECTION MAKING Page 68 . GRINDING & FINISHING DEPT. FLOWER MAKING VARNISHING DEPT. DYING SECTION PAINT SHOP WIRING SECTION ASSEMBLING WITH WATER MIST KIT MINOR PARTS.Chapter no 6: Operational plan Method of production and Production process detail: SILVER STRIPS DIE-CASTING DEPT.

Molded die casted pieces send to the grinding and finishing department on the other hand electric steel sheet cut in to require pieces and make motor armature through stamping press and it also sent to the cooper winding department  In the end of this department complete motor assembled and send to the next department in which other parts of water mist fan is attach with it. Pig iron. Page 69 .    The operation of producing water mist electric fan is not more complicated it’s almost same as a regular electric fan manufacturing. cooper these are the main item that used to producing electric fan. Die-casting is the first in whole process and aluminum and pig iron firstly die-casted than it converted into the required shapes. After packing the finished goods stored. Plastic. Other parts include 1) Steel protection grill 2) Air flow blades 3) Pedestal rod 4) Stand 5) Water jet nozzle 6) Water mist kit (water pump and gallon included) After assembling all part with the electric fan motor the water mist fan send to the paint shop After paint shop process water mist fan send to the testing and inspection department. The process starts from the raw material like Aluminum. After complete quality assurance it will send to the packing department for packing.

of machine 2 Rate (Rs) 2595000 Total (Rs) 5190000 2 733520 1467040 2 605500 1211000 1 692000 692000 1 1297500 1297500 1 2 1047105 865000 1047105 1730000 1 1124413 8960038 1124413 13759058 Page 70 .Plant and Machinery: Table of machinery required and their Cost Machine CNC Die-casting Machine Kent CNC Grinding Machine CNC Motor Winding Machine Armature Varnishing Machine CNC Packing & Stamping Machine CNC Steel sheet cutting & molding machine CNC Lathe machine CNC Surface Grinding polishing machine Total purchase price No.

Installation Summary Installation Cost CNC Die-casting Machine Kent CNC Grinding Machine CNC Motor Winding Machine Armature Varnishing Machine CNC Packing & Stamping Machine CNC Steel sheet cutting & molding machine CNC Lathe machine CNC Surface Grinding polishing machine Total cost of machinery with Installation 73297 51900 43250 155000 75000 125000 250000 83000 14615505 Page 71 .

Page 72 . CNC Motor Winding Machine: Machine use for motor winding and it has a great accuracy in it functions and helpful in large production.CNC Die-Costing: This machine requires for process of die-cost the main body of electric fan.

CNC Surface grinding machine: This machine is helpful to make a quality in motor of electric fan by grinding the surface of armature and other parts. of accident case which happens through manual varnishing so that this machine is a great invention and very much use full for our production process. Page 73 . Armature Varnish Machine: Manual varnishing process is harmful and there is large no.

Steel sheet straightening and cutting machine: Electric Sheet is a main item for electric motor so it’s straightening and cutting process done with this machine CNC-Grinding-Machine: For grinding different tools and little parts of motor body done through this machine Page 74 .

Stamping Press Machine: For combining to rotor armature of eclectic fan body this machine is highly recommended for quality work. Page 75 . use for making different tools of other machines. CNC Lathe Machine: This is multipurpose machine.

supervisor. technicians. Experience: Five years experience in running fan manufacturing of electric fan. qualified labor will be preferred and Qualification criteria for labor will be defined by our CEO/HR department. Qualification: Masters in commerce from University of Punjab Lahore campus Page 76 . Experience: Has 3 year experience of as a brand ambassador GN industry Usman Ejaz (Finance Manager) Usman Ejaz is Finance manager of Crown water mist electric fan. Their names and qualifications are described below Ali Ahmad (CEO/HR) Ali Ahmad is the CEO of Crown water mist electric fan Qualification: CA from Institute of Chartered Accountant. Management Team: Crown Water Mist Electric Fan has quite an innovative and experienced management team in their related fields. helper.Availability of Qualified Labor Pool: Qualified labor pool is compulsory for the proper running of our business. and sweepers’ etc. painter. Karachi Pakistan. Yasir Arfat (Marketing Manager) Yasir Arfat is marketing manager of Crown Water mist electric fan. guard. Experienced technicians and electrician will be our major strength and consideration. winder. Technician. fitter. Qualification: Master’s in Business Administration with marketing from Comsat Lahore. Labor pool required for our business for different operations will include qualified and experienced managers for every department. electrician.

Experience: Operation and production manager in Josh Engineering Company from Two years. Required Experience: 3-4 years experience as a technician in any manufacturing firm Electrician Crown water mist electric fan needs 6 people for performing daily operations. Fazal Mahmood Tahir (Purchase and Quality control Manager) Fazal Mahmood Tahir is Purchase and Quality Control Manager of Crown water mist electric fan. Qualification: He must have a diploma in electrical Technology from recognized institute. Lahore. Experience: Two years experience in procurement and quality control in rice mill.Experience: Finance Manager in Dawlance Group of Companies for 2 years. Qualification: Masters in commerce with specialization in accountancy. Qualification: Master’s in commerce from University of Punjab. Technician Crown water mist electric fan needs 6 persons Required Qualification: He must have Diploma in Technology from recognized Institute. Experience: 3-4 years Page 77 . Tufail Ahmed (Operation and production manager) Tufail Ahmed is operation and production manager of crown water mist electric fan.

Qualification: intermediate Experience: 3-4 years Skilled labour Crown water mist electric fan need 10 persons which include fitter.Supervisor Crown water mist electric fan need 3 people for supervision of labour. training to use weapons and retired army men are preferred. training to inventory unloading and uploading Guards : Crown water mist electric fan need 2 guard for its security Qualification: Minimum Metric. Qualification: should have training in relevant field Experience: 2 years Helper : Crown water mist electric fan need 5 helper for its operations Qualification: Minimum Metric. Experience: 1 year. painter. winder. Sweeper: Crown water mist electric fan needs only one sweeper Page 78 .

Qualification: Not specific Experience: Not specific BUSINESS PARTNERSHIPS Business Partnerships: Crown water mist electric fan manufacturing is a partnership business. which is registered under partnership act of 1932.  Types Of Partnership Crown water mist electric fan manufacturing is a partnership business having 5 partners: Partners have invested in the following ratio: Ali Ahmed Yasir Arfat Usman Ejaz Tufail Ahmed Fazal Mahmood Tahir 20% 20% 20% 20% 20% Page 79 .

our company is also a certified with different standard of ISOs and CE. Quality Control Quality is a foremost part of any product or service. Purposes of Partnership Business Crown water mist electric fan manufacturing is a business launch by five partners who are experts in their specialized fields. Crown water mist electric fan manufacturing do not have any sort of partnership with anyone except discussed above. CE etc. As for as our business is concerned quality is the focus of our business. All the partners are contributing to the success of this business. Pakistan is a manufacturer of good quality fans and certified with different International acceptable standards like ISO 9001. human resource. Total Quality Management: We are trying to provide the assurance of quality to the customer proactively rather to be reactive. For the accomplishment of the objectives of any business quality control is imperative. Active partners are also involved in financial. energy star to ensure the both inside and out side quality of our product to the customer. Turnaround time is the most important factor to measure whether or not we are satisfying with quality product to our customers. Crown water mist electric fan manufacturing business partners are. Crown water mist electric fan manufacturing is using Total Quality Improvement and Page 80 .      Ali Ahmed Yasir Arfat Usman Ejaz Tufail Ahmed Fazal Mahmood Tahir Crown water mist electric fan manufacturing is the idea of its active partners without their mutual efforts it was impossible to start up. and other operational activities to make it run more efficiently. accounts. Quality of products and services will be controlled by all of its partners. marketing.

Technical Tools and Procedures: The product of our business will be made in a clean environment to make them safe to its customers. Along with we will use the technical tools and better procedures in the manufacturing of our product. Customer Support Strategies: We provide the product to the customer according to there need and their expectations. Page 81 . Responsibility of Quality: Quality of product is a responsibility of its five active members. Use of Raw Material: Our business will get his whole raw material i. Plastic of a high grade material and use it according to the industry standard.e Pig Iron. Whole environment of our manufacturing entity will always be keep safe and healthier for employees. Safe product.Management approach in which every employee of our business will be involved in quality control to provide its customers the best quality products through which customer can feel comfort. aluminum. Whether the product are of desired quality and standards or not. In this regard customers will be highly appreciated. Customers are valuable to Crown water mist electric fan and thus Crown water mist electric fan will use the best strategies to gain customers interest and loyalty.   We are committed to provide excellent products to our customers. who will confirm it through different ways continuously. Clean Environment. Quick response will be made sure and monitored regularly. cooper wire.

Societal Responsibility Approaches: We are discussing our responsibility approaches towards different sections of society as below: Towards general public:     Community involvement Hiring unemployed Proper disposal of wasted materials Contribution to nonprofit making organizations Page 82 . Feedbacks: Customers will be given a comment card in the pack of electric fan to get feedback from them. Societal Ethical and Consumer Issues: We are going to discuss the societal.Services: Crown water mist electric fan is using the immense ways to satisfy its customers. contact numbers and business addresses. When they purchase the product of Crown water mist electric fan they will get the lifetime guarantee. Their comments and suggestions will be highly appreciated. by providing them a card on which they can fill their names. Operational manager will enter this information in the computer. ethical and consumer issues separately to clarify our strategies towards each of them. It will help us to share our new products with our regular dealers. Record Keeping: Crown water mist electric fan will keep the record of its regular dealers. and after sale service.

2. Customer Support Obligations: Crown water mist electric fan’s customer support obligations are: 1.Towards employees :    To ample internal communication Employee empowerment allowed Employee training about social issues Towards owners:     Honest reporting and financial disclosure Publicity about company activities Detailed explanation of social issues Earning a reasonable profit Corporate Social Responsibility: Crown water mist electric fan is providing a healthy and people friendly environment to its customers. Fully accommodate the customers in all respects. in time production of customer’s orders. Full satisfaction by fulfilling the required needs. The waste will be properly discarded. Good dealing with the customers in healthy environment 4. employees and surrounding areas. 3. The Crown water mist electric fan accepts social responsibility of not harming anyone or natural environment. Page 83 . The cleanliness and safety will be made sure for everyone.

Meet external and internal financial reporting requirements. identify revenue streams. The three sole functions of the finance Department are to provide strategic financial support for business and operational planning and to provide day-to-day financial services to the investor.Chapter no: 7 Financial Plan Capital requirement for the next three to five years: The purpose of the financial plan is to estimate start-up and ongoing costs. for next three to five years. Thus Crown water mist electric fan initial capital investment is PKR. in order that they may make informed judgments and decisions. 8. ensure adequate cash flow. land and building. cost of production etc. The venture will be funded partners through paid-in capital provided by the owners and debt will be taken from the bank. 00 00. and forecast net cash flow and profits. establish and control profitability levels . As Crown water mist electric fan is a start up firm so it needs high capital investment to recover its expenses like machinery expense. Financial Plan ensure that there are adequate funds available to acquire the resources needed to help the organization achieve its objective.One of the major roles of the finance department is to identify appropriate financial information prior to communicating this information to managers and decision-makers.000 Page 84 . ensure costs are controlled. its departments.

Parts and Equipment Pre-production Expenses TOTAL FIXED COST: .Initial Net Working Capital TOTAL COST OF THE PROJECT: 3859189 3859189 2235000 75051198 4589306 80000000 *********** 2235000 75051198 4589306 80000000 ********** MEANS OF FINANCE Debt Faysal bank loan 14.5% TOTAL DEBT: Equity 48000000 48000000 48000000 48000000 Paid-up Capital (Sponsors) TOTAL EQUITY 32000000 32000000 32000000 32000000 Page 85 .The cost of project is as follow: COST OF THE PROJECT Building land and Civil Work Plant and Machinery( Include Installation ) Furniture and fixture vehicles Raw.Material Generator Air Conditioner (Rs) 35000000 14615505 476000 1775000 14300000 2500000 650000 TOTAL 35000000 14615505 476000 1775000 14300000 2500000 650000 Tools.

000.5% Equity Total 60% 40% 100% 4.80. The sponsor’s stake is 40%. Sources of Fund: Page 86 .TOTAL DEBT & EQUITY 80000000 80000000 ********** *********** The means of finance and their ratio is as follow: Source Ratio Amount (Rs) Bank @14.00000 3.20.00000 8.0000 All amounts are in the Local Currency (In Rupees).

Following are the details of the finance provided by each partner.000 Uses of Funds: Funds acquired from the above mentioned source will be used to purchase the assets.00. Following are the details of the costs incurred on starting up the business. Name Ali Ahmad Yasir Arfat Usman Ejaz Tufail Ahmed Fazal Mahmood Tahir Percentage 20% 20% 20% 20% 20% Contribution Rs 64. machinery installation.00. Five partners of the Crown water mist electric fan contributed in the business.000 64.00.00. and raw material of Crown water mist electric fan.000 64. ESTIMATED INITIAL NET WORKING CAPITAL CURRENT ASSETS Cash Accounts Receivable @5% of sales Raw materials Finished Goods Inventory 2.000 64.Crown water mist electric fan has 5 partners who are investing the 40% equity of the capital requirement.5% of production Stores & Spares (Rs) 3557803 2975000 13101000 2900000 3062999 Page 87 .00.000 64.

We assume that account receivables are 2. We assume that climate changes to warm and fan demand increases. We assume that account payable is 5% of cost of goods sold in each year. Page 88 . We Assume efficiency moves 25% grow in first 3 year of business. most of which are shown in the following table as annual assumptions. tax rates. we recognize that collection days are critical. Interest rates. but not a factor we can influence easily. We assume a rate of sale is 17. At least we are planning on the problem.24% of Cost. Some of the more important underlying assumptions are:       We assume the rate of Constant growth in the Fan Industry.5% of total sale in each year.Advances & deposits Total CURRENT LIABILITIES Accounts Payable Accrued Expenses Interest on Bank Borrowings from Faysal bank Paid Bank loan installment 1500000 27096802 5075000 2472496 6960000 8000000 INITIAL NET WORKING CAPITAL 4589306 Important Assumptions: Important Assumptions The financial plan depends on important assumptions. From the beginning. and personnel burden are based on conservative assumptions. and dealing with it.

We assume closing inventory at the end of year first is 5000 fan.5% annually } . We will pay our loan in 6 installments of Rs. at the end of 3rd year 2700 fan. We assume Tax Rate is a 45% on Pre-Tax Profit W assume per day production is 150 fans (efficiency 50%) and company work in a year 300 days so annual production of 1st year 45000 and in 2nd year efficiency 50% to 75% and per day production move from 150 to 225 fan per day and annual production is 67500 fans. at the end of 2nd year closing inventory is 4000 fan. Operating Expenses will be 1% of annual Sale. Preliminary Expenses will be written off in five years. Interest rate is 14. 8000000 each plus Interest on remaining amount. In 3rd year efficiency move from 75% to 100% and per day production move from 225 to 300 fans per day and annual production of 3rd year 90000 fans. Page 89 . for furniture and fixture rate is 5% vehicle rate 20% and building rate is 5% annually.   We assume deprecation rate for plant and machinery is 10%.   Depreciation is according to the Straight Line Method.5% {12% Karachi interbank offered rates (KIBOR) + bank spread is 2.     Preliminary Expenses will be written off in five years in equal amounts.

PROJECTED INCOME STATEMENTS ANNEXURE ( Rs ) I 50% II 75% III 100% Detailing For the year ending Dec. 31 Efficiency Assumed : SALES COST OF GOODS SOLD : -Depreciation 136000000 116000000` 3590350 232900000 198650000 3590350 310420000 264770000 3590350 GROSS PROFIT 16409650 30659650 42059650 OPERATING EXPENSES .5%.Admin & General Expenses Total Operating Expenses 1190000 1190000 2329000 2329000 3104200 3104200 OPERATING PROFIT NON OPERATING EXPENSES Bank borrowing@ 14. Amortization of preliminary exp. at 5 years Sub-Total PRE-TAX PROFIT 45% 15219650 28330650 38955450 6960000 447000 7407000 7812650 3515693 4296957 0 4296957 6960000 447000 7407000 20923650 9415643 11508007 0 11508007 5800000 447000 6247000 32708450 14718803 17989647 0 17989647 Provision for Taxes NET Dividend RETAINED EARNINGS PROFIT Page 90 .

Projected Cash flows Statement Crown water mist electric fan Opening Balance of Cash: Paid up capital (Sponsors) Faysal Bank Loan Total Source: Less: Investment in fixed assets Preliminary expenses amortized in 5 years Current Assets Total Application of Fund Surplus Year 1 Year 2 Year 3 32000000 48000000 80000000 (51866505) (2235000) (12062999) (66164504) 13835496 15219650 3590350 1788000 20598000 28330650 3590350 1341000 33262000 38955450 3590350 894000 43439800 3557803 1779459 Operating Profit Add Depreciation Add Write-Off Preliminary expense in 5 years Cash Flows Before Working Capital Changes Operating Activities: Less: Inventory Less: Receivable Add: Creditors Cash Flows Generated from Operations Less: Interest paid Less: Tax paid Cash Flows From operating Activities Investing Activities: Increase in assets Cash flows from Investing activities Page Financing Activity: 91 (14500000) (2975000) 5075000 8198000 (6960000) (3515693) (2277693) 2900000 (5822500) 4857500 35197000 (6960000) (9415643) 18821357 3770000 (1938000) 3306000 48577800 (5800000) (14718803) 28058997 0 (2277693) (9412201) 10473809 (4397593) 23661404 .

Repayment of loan Cash transferred to Contingencies Reserves Drawing Cash flows from Financing Activities Cash Flows Generated During the Years Cash & Cash Equivalents: Opening Cash Balance Add: Cash Flows Generated During the Year Ending Cash Balance (8000000) 0 0 (8000000) (10277693) (8000000) 0 (3187500) (11187500) (1778344) (8000000) (3500000) (7000000) (18500000) 5161404 13835496 (10277693) 3557803 3557803 (1778344) 1779459 1779459 5161404 6940863 Page 92 .

Page 93 .

3557803 2975000 1779459 5822500 6940863 7760500 14500000 13101000 3062999 1500000 11600000 1.PROJECTED B A L A N C E Crown Water Mist Electric Fan ESTIMATED As on Dec.7287500 5288700 4500000 7830000 1. Stores & Spares Advances & Deposits SHEETS BALANCE SHEETS I II III Rs.9213225 6560568 5700000 Total Current Assets Other assets Fixed Assets at cost Less: Accumulated Depreciation Net Fixed Assets: Preliminary Expenses: 38696802 0 51866505 3590350 48276155 447000 46278159 0 51866505 7180700 44685805 447000 54005156 0 51866505 10771050 41095455 447000 Generator 2500000 2500000 2500000 Air conditioner Total Assets: Page 94 650000 90569957 ====== 650000 94560964 ====== 650000 98697611 ====== . 31 ASSETS Cash Accounts Receivables Inventory: Finished Goods Inventory Raw Material Inventory Tools.

Accounts Payable .Bank Borrowings Total Current Liabilities: Other liabilities Long-term Liabilities Faysal Bank loan Less: Installment paid Total Long-term Liabilities Contingencies Reserve EQUITY .Accrued Expenses .Un-appropriated Profit 4296957 36296957 11508007 43508007 (3187500) 40320507 17989647 49989647 (7000000) 42989647 Less: Drawing Total Equity: 0 36296957 Total Liabilities & Equity: 90569957 ====== 94560964 ====== 98697611 ====== Page 95 .LIABILITIES & EQUITY Current Liabilities .Paid-up Capital (Sponsors) 32000000 32000000 32000000 48000000 (8000000) 40000000 0 40000000 (8000000) 32000000 0 32000000 (8000000) 24000000 3500000 5075000 2238000 6960000 14273000 0 9932500 5347957 6960000 22240457 0 13238500 9169464 5800000 28207964 0 .

Product Cost Sheet: Per Unit Cost: Model PK-1000 Sr. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Water Mist power Particular Price 250 150 90 40 15 100 25 20 150 500 30 30 50 15 30 150 35 5 150 10 10 10 10 45 35 65 10 20 10 10 30 Roter stator 4/3/4x1/1/4 Body plate Blade set Copline Speed Control device Standing Rod steel Bearing set (1+1) Spring washal. choke machinal Gear box Enamel Copper wire Lock nut Roter making cost Poly Plastic Bag+packing paper+doori Check nut + Handle Capaster stand foot (pig iron wirth plastic tub Nakka Screws Different types Guard (plastic) Name plate ( platic golden. verm set. petrol. reeg maar Dome) Kashte + keem Wastage Packing paper + doori + covering paper Loading unloading expenses Office expenses Electricity expense Page 96 . filer. silver ) Grease +oil etc Leather head + sleving Cotton tape +warnush doori Wire two core + single core Paint.

32 33 34 35 36 37 38 39 40 41 Publicity expenses Other expenses Labour expenses Vehicle Expenses Labour Welfare Money collecting expense Water mist Kit (China) Blade Cap 10 10 10 10 10 20 700 30 Taxes all kinds 42 Total cost 43 Profit 44 Sales Price 2900 500 3400 Salaries Structure of company: Descriptions Designation CEO Finance Manager Marketing Manager Operations & Production Manager Purchase & Quality Control Manager Supervisors (03 x 15000) Technician ( 06* 12000) Security Guard(02*7000) Skilled Labour 10*10000 Helpers 05*5000 Sweepers 01 Electrician (06*9000) Salary/Month 40000 30000 30000 30000 30000 45000 72000 14000 100000 25000 7000 54000 477000 Total Salaries (Rs.) 1st Year Rs. 480000 360000 360000 360000 360000 540000 864000 168000 1200000 300000 84000 648000 5724000 Page 97 .

of machine 2 2 2 1 Rate (Rs) 2595000 733520 605500 692000 Total (Rs) 5190000 1467040 1211000 692000 1 1297500 1297500 1 2 1047105 865000 1047105 1730000 1 1124413 8960038 1124413 13759058 Installation Summary Installation Cost CNC Die-casting Machine Kent CNC Grinding Machine CNC Motor Winding Machine Armature Varnishing Machine CNC Packing & Stamping Machine CNC Steel sheet cutting & molding machine CNC Lathe machine 73297 51900 43250 155000 75000 125000 250000 Page 98 .Plant and Machinery Cost : Table of machinery Cost Machine CNC Die-casting Machine Kent CNC Grinding Machine CNC Motor Winding Machine Armature Varnishing Machine CNC Packing & Stamping Machine CNC Steel sheet cutting & molding machine CNC Lathe machine CNC Surface Grinding polishing machine Total purchase price No.

The description of such risks faced by our organization from micro and macro environment in which it is operates are: Management Risks Management risks are caused by negligence or due to wrong decisions or unqualified and unskilled management team and staff etc.CNC Surface Grinding polishing machine Total cost of machinery with Installation 83000 14615505 Chapter no. Like other organizations operating in this world our organization also faces several risks of micro and macro nature.9 CRITICAL RISK FACTOR No organization around the globe operates in the vacuum rather it works in an environment which is impacted by the activities of the organization and in turn effects the operations of the organization. and consequently an incorrect schedule Improper Resource Allocation Underutilization of Resources Page 99 . Some of the reasons for such risks are\      Un-Estimated demand and forecasting decision by the management Future expansion of risks Incorrect Time Estimation.

     Experienced staff are taken by the competitors Lack of commitment by the top management of the business Inexperienced staff hired by the management to run the operations of the business Incorrect decision making Failure to reach at consensus regarding any critical issue of the business etc. cause marketing risks. market trends and government actions. Similarly. our business faces following marketing risks like price risk and market availability. can lead to uncertainty of costs. Marketing Risks: Marketing is the part of our business that helps in transforms production activities into financial returns.etc. therefore. Operating Risks: These are risks which are associated with the day-to-day operational activities of the our business. such as weather. However. many unanticipated forces. Market availability risk is related to loss of market access due to competition or loss of a major customer. Price risk is related to the volatility of product or input prices. prices and demand in the market and. and loss of marketing power due to the small size of sellers relative to buyers. These could be due to any of the below reasons        Improper Process Implementation employees injuries Damages of Equipment during operations Lack of conflict resolution / team spirit Lack of clarity in responsibilities Breakdown in communications Lack of sufficient training Page 100 .

recession. Following are the monetary risks which are associated with budget overruns.  Delay of daily business activities may also have certain penalty costs associated with it. Trade Mark. our experienced staff. the transactions our business makes and the financial systems you already have in place. Some of the reasons for such risks are           Improper Budget Estimation Improper recording of transactions. copy right. Delay payment from Debtor Default by Debtor Obsolesce or Decrease in the value of our business valuable assets Cost Overruns due to underutilization of resources Expansion of Project Scope Improper Tracking of Finances Increase in interest rate Further. Physical Risk Page 101 . such risk are caused by increases in inflation rate. Inadequate quality of raw material Financial Risks: Financial risks are associated with the financial structure of our business. our dealer lists etc. Intellectual Property Infringement Intellectual Property theft is top risk to our business. Financial risks also exist when there is unfavorable difference between forecasted and actual budget. Trade secret. depression in economy etc. unexpected expansion in business may lead to budget overruns as such expansions may not have been factored in to the original estimates. our intellectual property include our business valuable management. Other Risks as Appropriate Economic Risk Economic risk are also faced by our business.

   Changes in government policy Obsolescence of our product/services due to new technology from a rival company Loss of contracts due to changes at customers end Remarks Pages Although these risks are broadly unavoidable. an organization may anticipate and thereby reduce the impact of such risks. However there are certain risks which are unavoidable in nature. natural calamities etc. Project risk When our business next big initiative fails Customer Risk When customers abandon our services Transition Risk When unexpected changes in technology or business design undermine our business Brand Risk When our brand becomes irrelevant or unappealing Business/Industry Risk When our business/ industry becomes a no-profit zone Stagnation Risk When growth grinds to a halt Other Unavoidable Risks All the risks described above are those which can be anticipated to a certain extent and planned for in advance. The reasons for such unavoidable risks are described below. Drought. Such considerations will be included in our priority list:  keeping abreast with changes in government policy Page 102 . flood. In the very similar fashion we will be taking different things into consideration and also by taking the following precautionary measures.Such risks caused by physical environment such as earthquake.

  

monitoring the competition catering to the needs of the customer and ensuring customer satisfaction keeping up our business operations according to the emerging needs and wants of the customers

updating technological changes

Different precautionary measures that can be taken to avoid or mitigate the impact of different risks are:  Management of the business will ensure to run the operations of the business in compliance with the governmental rules and regulations to get the favor of the local, provincial and federal government.  Similarly management will conduct continual market survey to abreast with the changing demands of our customers and also competitor intelligence technique will go a long way in helping us to know about the existing and changing strategies of the competitor .  Insurance will be another tool for the management of the business to mitigate the impact of physical and mental loss to the personnel during operations and physical loss to property and other different assets of the business.  Management will ensure high level of commitment in managing the operations of the business and staff will be selected on the basis of the fines they possess etc.etc.

Page 103

Appendix Questionnaire

University of Gujrat
Department of Commerce & Accountancy Evening program
Interview Schedule

MGT-410 Business Project

Purpose of Questionnaire:
This is Business Needs Assessment Survey to recognize the potential of Electric Fan Manufacturing Business in Pakistan and the need of Electric fan in our consumer market for home and office use only Business Project Supervisor: Sir Waseem Ullah Students: Ali Ahmad, Fazal Mehamod Tahir, Tufail Ahmed, Usman Ejaz, Yasir Arfat Serial No: _____________ Dear Respondent _________ Introductory Remarks We are students of M.Com. Presently we are doing Business Project MGT-410 of 3 Credit hrs for the completion of Masters Degree in Commerce. I need to collect information from your goodself on the topic of our business project which is the ―Electric Fan Manufacturing Business" You have been chosen as a respondent through random sampling procedure. I assure your information will be kept confidential and it will be used only for the Business Project purpose. Date: ____________________

Demographic profile 1. Name : _______________ 2. Age : _________ 3. Gender:
Page 104

Male

Female

Q# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Questions

Strongly Agree

Agree

Disagree

Strongly Disagree

Do you think there should be Electric fan in home or office? Do you think human life sustain without electric fan in a hot summer season?
Do you think electric fan reduce mosquito bites at night and u feel safe from many diseases or illness

O O O O O O O O O O O O O O O O O

O O O O O O O O O O O O O O O O O

O O O O O O O O O O O O O O O O O

O O O O O O O O O O O O O O O O O

Do you think it is economical to purchase? Do u think the Pakistani manufactured electric fan provide better air flow than Chinese manufactured electric fan? Do you think electric fan is a life time product? Do you think electric fan clean your room air through the exhaust fan air inflow and out flow option? Do you think electric fan is the basic need in hot summer season regions like Pakistan? Do you think there should be hi-tech electric fans? Do you think there should be only low-tech simple air flow fans? Do you think there is any Risk of Electric fan for consumer? Do you think electric fan helps to reduce the temperature of other devices? (refrigerator compressor temperature) Do think the fan provide cool air and economical through the use of Water Room Cooler as Compare to Air Conditioner? Do you think the electric fan business reduce the unemployment rate? Do you think electric fan is affordable for all classes of our society? Do you think electric fan have a competitive advantage over other electric devices (room cooler, cool wavier) Do you think electric fan manufacturing is the profitable sector in Pakistani electric industry

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Pictures: Water Pump Water Pump used in Water mist Electric Fan Pump Specification Model: PK-0002 Water pump: Size: 123 * 108 * 125mm Technical parameters: Voltage: 230V/120V Frequency: 50Hz/60Hz Power: 35W Flow: 1100L / h Head: 250 cm Page 106 .

You were feeling the evaporative cooling of water from your skin. and the result is dramatic "flash-cooling" of the surrounding space.Model:Pk-0001 Water mist system kit: By forcing water through Centrifugal at high enough Rotation speed . the evaporative cooling happens quicker and the wind itself is cooled as well. This is the effect of misting fans Page 107 . combined with the convective cooling of wind. drifts in the air and then almost instantly evaporates. This evaporation process actually "uses" heat from the air. When the mist is blown with fans. a micro-fine mist is created.

Temperature Reduction. Area Coverage and water Drop size Sketch Page 108 .