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Automobile Maintenance Workstation



Development Plan
. . . . .. Submitted in fulfillment of the requirement for the degree of

Chapter: One.

1.1. Background
The study is about the automobile workshop industry of Bangladesh, with major concentration
given on its service prospective. According to Bangladesh Automobile Workshop Associations
(BAWA), the automobile workshop sector in Bangladesh is one of the most developed hi-tech
sectors, which is contributing in the improvement of the country's economy (BAWA, 20013).
This is further confirmed by Bangladesh Association of Automobile Industries (BAAI), which
stated that the automobile workshop Industry in Bangladesh is paying the second largest revenue
to the Government's exchequer (BAAI, 2013). The industry has achieved self-sufficiency by
providing 95% of the total service line requirement of the local street market. In addition, leading
automobile workshop companies are also aiming to expand their business in the service market,
comparatively more focus being given on the developed markets. The volume of services may
not be enormous, but it is nevertheless growing. An added opportunity, in terms of waiver
facility, has been presented to Bangladesh by The World Trade Organizations (WTO)
Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS). The Leastdeveloped country (LDC) status of Bangladesh has facilitated the country, more specifically, the
automobile workshop industry, in qualifying for such chance. According to the aforementioned
facility, the Least-developed countries have been exempted from meeting patent regulations.
Until 1st January 2016, those countries are allowed to produce or manufacture automobile, as
well as, service essential workshops without maintaining potential client. However, services to
the other Least-developed countries from Bangladesh are possible on the condition that the
importing countries either have no or insufficient drug manufacturing capability. Among the 49
Least-developed countries, Bangladesh is the only country which has a very strong loyalty
service base in automobile workshops. This presents Bangladesh with a golden opportunity to
emerge as a major player in national market due to its advantageous position in basic
infrastructure, in comparison to the other Least-developed countries.

Most automobile workshop companies in Bangladesh are adhering to current Service

Engineering Practice (CSEP) and have invested on the improvement of engineering capability.
However, at present, the automobile workshops need to import more than 80 per cent of the raw
materials from abroad, namely India and China. Although there has been a positive growth in
service, Bangladesh has been experiencing a comprehensive negative trade balance in
automobile workshop business due to heavy dependency on import (Hossain, 2010). Heavy
dependency on imports of raw materials and poor country image, among many other negative
factors, are seen as major constraints in improving the comprehensive automobile workshop
business. In order to enhance the competitiveness and reduce such import dependency, a project
named Automobile Maintenance Workstation was supposed to be implemented by December
2014, where companies can set up raw materials3 workshop plants. But, the targeted deadline has
already passed and the accomplishment is still in progress.
This thereby should adversely affect the competitiveness and service potential of India. However,
our neighboring country India has been maintaining its global competitiveness of automobile
workshop services, despite its entrance into the patent regime.

1.2. Research Methodology


Research method:

There is mainly two research approach available, qualitative and quantitative. To conduct my
research I have to use both methods because the research work contains both theoretical and
numerical informations. Additionally, my research type would be exploratory to make my
research more effective and clear. This method is more detailed and significant in the research


Data Collection methods:

I am going to collect both primary and secondary data.

Primary data collection: For the primary data, I have chosen survey and a focus group
discussion. The survey question will be provided among customers of different automobile
workshops to see their present experience. At the same time, I will arrange a focus group
discussion, or more specifically, executing productive discussions with experts in the automobile
workshop industry. The experts will include professionals from major automobile workshop
service companies, and also a few multinational companies (MNC) that are operating in
Secondary data collection: for the secondary data I will go for the basic resources like- books
for theories and models, journals and articles for the present market informations last but not the
least Online to get all the national international companies information.



The sample size of my research is 100 and I have made a questionnaire for the participants to do
a feasibility test on market and product of AMW. The test will leave a great effect on my research
outcome. Moreover, I will arrange a focus group discussion with 5 to 6 professional who are
presently involved in automobile and other automobile related industry to add value to my
feasibility test. Moreover, I am going to follow non-probability sampling technique to perform
my research.

1.3. Research Model & Tools

Where the Porter's five forces model is a popular framework used as part of the strategic
analysis stage of the strategic planning process of a business (Needle, 2004). Through this model
its assessing industry attractiveness, by which means findings of the easiest to make above
average profits (for shareholders and to fund adequate investment). So we have analysis our
industry attractiveness on Porter's five forces model by proven value added service and its chain
(Chapter: 3).
Tools which we are using in this business proposal is the business model canvas, what will take
the top potential start-up of our organization in the commercial based on our defined successful
business creation process and put them through our accelerator program to advance them into a

local business (Peng, M, 2009). Along with this important model I am going to use few more
effective and useful tools for my research project and they are:

Ansoff Matrix
SWOT analysis
Porters value chain
VRIO model

1.4. Research Questions

o Does AMW have all the tools needed to run a business successfully?
o Do the idea of one month basic car maintenance course is useful?
o Does the company have the potential to fill the gap of a quality car servicing workshop?
o Does the company have market and product feasibility?

1.5. Research Objectives

To be the market leader of automotive maintenance industry in coming 5 years
To get the hi-tech car servicing system for the workstation
To provide the quality service in low price
To hire the best management team for the company
To provide the best servicing experience to the customer

1.6. Assumptions
Our assumption is the political stability in the predictable future since strikes has the main barrier
of this business. Also we have forecast in all your key assumptions on these sectors on different
circumstance with prices, sales volume, timing, product or service delivery, marketing
awareness, business development, client endorsement etc. in our Dhaka city and also
In the research methodology we have compiling this business proposal on completely based on
assumption in financial sectors. We have discussion on feasibility analysis in theory and
sensitivity analysis in financial and marketing sales forecast segment. Where we have analysis of
ten prices or profit decries and ten percent costing or expense increase.

Also manipulate the service assumption by worker gap or manpower requisition whereas this is
the service level business, as far we need to be create a concept of break down analysis or
backup service efficiency of competiveness in the automobile service sector in Bangladesh.
We have also the finding in general assumption in 1st year analysis where we will completely
finalized out VAT and TAX section as in thirty present in a year and VAT in fifteen percent of the
product and service sales in every month. Now it make in excellent progress in to five years
financial projection according to be a member of all association in automobile sector. As a new
company we have to build the great relationship with our competitor.
Also finalize Market and Distribution considerations are indicative and based on the assumption
that banks will employ their individual service and product sales marketing and distribution
strategy for service or product development.

1.7. Timescale
Timescale is one of the most important facts to take in account because timescales helps to
understand the profitability of a company in long run. However, this Business Development Plan
is for the first three years of the business.

Chapter: Two. Business Concept

2.1. Outline of Business

A new start-up incorporated business managed by two partners and two experienced engineers
and the name of the company is, Automobile Maintenance Workstation (AMW). The partners
and engenders are going to work together in each and every stage of business to make it one of
the best automobile workstation of the country. AMW is going to provide the best solution to the
car servicing and a great experience for its customers.

2.2. The Concept Statement

The company is going to sell the garage / workshop equipment and automobile maintenance
service. The company will use the best technology to provide the services and make a solution to
the car servicing problem in the city. Moreover, the company is going to offer a basic car
maintenance trailing course for the customers so that they can get the basic idea to maintain their
cars by themselves. The main concept of this business is to provide the best service to its
customers in a very low cost. More over an automobile advice service center will be opened in
the workstation to provide the best advice for the customers who wants to buy a car but they
dont have essential car knowledge. However, our business will always follow the ethics of the
business and the best service to satisfy its customer at all times.

2.3. The Product & Service

AMW is going to provide both the products and services for its customers and our product and
services are:
Services: The main product of our company is car repair and maintenance services. The services
we are going to provide are something that people need daily basis in their life. Car is a
important part of our life and any technical difficulties waste our time and energy both, so the
repairing services are going to give our customers a relief and it will save a lot of time, because
we are using the most undated technologies for our services.
Moreover, we are going to offer some basic car maintenance short course which will be useful
for both existing and new customers. In addition, our company is going to provide a special car
selection advice service regarding cars for the people who are going to buy new cars and I think
this will add extra value to our services because there is no other company who are actually
providing service like this. However, we have the unique or distinguishing key to grab the
market is free computerized vehicle diagnosis on Sunday of each week for first 6 months.
We have a special service called AMW membership card, it will give our customers to buy
membership for one year, and it will cost them 600. Our members will get all kind of car
repairing service over the year and discounts on products. We are expecting around 40
clients/members in first year.
Products: products that we are going to offer are basic items that are necessary to repair and
maintain a car. The products are: cars small parts, car security products and decorations.
Fortunately one of our friends has an importing business based on car parts, so all our products
are going to come from abroad and we will be able to give our customers any items that they
need regarding their car repayment.

2.4. Competitive Comparison of Product & Service

The Automobile Repair or Maintenance Company is highly competitive market segment now
days. Each of Automobile Repair or Maintenance Company within this field has high capital
costs, low margins, and a high intensity of competition in Bangladesh.
Auto parts, machineries and equipment suppliers have a great deal of power in setting and
negotiating the prices of their products and services to repair workshops. This is due to the fact
that the suppliers who absorb the greatest amounts of cash from the auto repair workshops are

large auto part companies. These companies are more consolidated that the repair company, have
deeper pockets, an almost limitless number of substitute customers, and finally they are the
single most important supplier to AMW. Therefore, these companies will set whatever price they
wish to.
Additionally, because the customers see the service as undifferentiated and a "commodity" with
little value separation between competitors (if they offer a suitable level of quality) buyer power
is also very high, and also the costs of our services are not cheap, and buyers are willing to
search for the most favorable combination of price and acceptable service. The barriers to entry
and exit are moderately low in this company. Switching costs are virtually non-existent and the
costs to entry and exit the market are low.
The large number of competitors in this field including substitutes means that the pricing for
such services are very competitive. The only way to have an advantage in this company is a low
cost leadership principal applied aggressively to all aspects of the business or to build up
customer relations to a point where the switching costs will be arise.


The technological revolution in computers has enhanced our abilities to diagnose and repair our
clients vehicles. AMW will remain on the cutting edge by establishing the use of computer
diagnostic equipment in its workstation. The company will continue to seek new ways to provide
a better service through digital technology in the age of digitalized Bangladesh.

Future Services

The company does not have any plans to create further services at this time but the product and
service development will strictly follow-up during the development season.

2.5. The Target Market & Value Added Features

The target market in vast for our business. We are going to serve customers from multi levels.
While targeting the customers their age, income, status will be considered. For example, we will
not allow customers who are under 18 because people who are under this age group do not have

the permission to drive or get a driving license. However, our target market is divided into min
two groups and they are:


Clients will refer to those individuals, organizations, or professionals who want to be a certified
member of the company. The company will give them a membership card in exchange of money
and they will get a lot of benefits and services from our company for one year. In addition they
will be able to extend the period of the card anytime they want.


Customers on the other hand will refer as a general people who owns car or wants to buy a car.
We are going to serve different segment of customers. For example- medium to high income
level customers, new car owners, professional and businessman.

2.6. Window Opportunity

Even though Bangladesh has a highly literate and advanced customer field with modern heritage,
but a lack of proper digitalized diagnosis and automobile solutions provider. Plus street
workshop are so many, but engineer are not educated and illiterate also, even though our
polytechnic education institutes faculty are not capable to provide their proper practical
experience, lack to give an computerized modern technology as international level education
performance because govt.s thinking are not coverage by their potential acquisition.
Few market leaders are gaining their own business and the corporate customer is facing
disgusting on their service. Right now this sector is out of under development in Bangladesh. But
as per getting some interview of Bangladesh bank, they will provide the best support of develop
this sector as in private level of companies.
Automobile Maintenance Workstation Limited will fill in the gap in this regard. To add to that,
Automobile Maintenance Workstation Limited will also provide a best service experience as
abroad workshop. Hence Automobile Maintenance Workstation Ltd. will reap the benefits by
providing such an exclusive service.

2.7. Resource, Financial & Quality Plans

Resource has to make some few question on everyones mind, thats are
Do your customers come to you?
Do you have to go to your customers?
Do you have employees?
Do you service products for sales?
Answers are
Yes our customer must have to come to us, as per their regular needs or they have faced
the problems on their vehicle.
Yes have the mobile team to provide our service through mobility, where the customers
requirement, their difficulties or their emergency basis complications.
Yes we have more over 200 right now and after it will crosses 500 employee without the
management teams.
Yes we also sale our service product where the street workshop can purchase it and they
would become a franchisee of our brand.
Moreover, there are total two chief inventors and two service investors in the company. Which
means two of our friends, who have achieved degrees on automobile engineering, from Japan
will invest their services for the company and they will get high scale of honoree every year from
our profit for their contribution but they will not get any official ownership or share from the
company. The initial startup capital is 80,000 and the prime investors (Mr. Rifath Noweid
and one more investor) are going to provide. The land of the work station is owned by my Uncle
Mr. Anisul Haque, and he is going to give it as lease for 5 years in a very small amount of leasing
rent and the amount is 10,000. Ingrained within the strategic plan of the investors, one of the
top most priorities will be to ensure quality and creativity at each and every step. Any doubts
regarding these two at any step will lead to reassessment of the project.

Chapter: Three. Feasibility


3.1. Industry Attractiveness


The place of AMW will serve as advantage. Not many workshops are concentrated in that richer
part of Dhaka. The ones present are inside universities and are of average quality. Also this
companys promising experience is gives in for high product differentiation. Hence to conclude it
can be said the competition amongst Automobile Maintenance Workstation and other Workshop
will be low. Rivalry amongst existing venues is relatively low since people rent them on the basis
of availability and convenience.

Bargaining power of Suppliers: Since AMW will be relatively bigger company the
bargaining power of suppliers will tend to be relatively low. Regarding the venue
construction materials can be bought at cheaper price. Supplies for the target affiliates
and service demand will be low. A little less bargaining power since AMW, will be
offering quite a lot in terms of the quality of the workshop (interiors, the full-experience).

Bargaining Power of Buyers:

While considering the audience or crowd as buyers, the bargaining power will be low. This is
because loyal customer of different service, but the corporate clients can pay higher price to see
their favorites perform live.

Threat of Substitutes:

The issue of threat from substitutes related to Automobile Maintenance Workstation is very
complex. Automobile Maintenance Workstation will provide with creative input as to how to
make the event show more lucrative, in terms of service announcement, posters / billboard add,
real marketing and e-marketing. Even though Automobile Maintenance Workstation will charge
a bit level wise and earn premiums from corporate customers etc., the experience at AMW will
be unparalleled. Hence it can be stated that the threat level of substitutes is low.

Threat of new entrants:

The capital requirement to make such a site is quite high. Hence workshop trying to enter will
need a relatively high amount to capital for the business to startup and operate. This reduces
some pressure from the threat of new workshop.
Moreover, the company will have a high level of product and service differentiation relative to
existing places. This in turn will pose a threat to newer workshop trying to barge in. Another
issue might surface if existing workshop try to retaliate by bringing up their value to the level of
the icon industry in automobile sector. Since most of the big venues are government owned, they
tend to inefficient. So, as we conclude it can be said that the threat of entry is quite low.
After doing Porters five forces analysis it can be concluded that the industry attractiveness is
quite high as competition is low. The investment in this industry deems to be profitable.

3.2. Market Attractiveness

To test the market attractiveness of the company I have gone through survey as a part of data
collection process. I have designed a set of questionnaires for the customers and the results are
given below:
Questions for customers
[Questionnaire given in Appendix A and Raw Data Given in Appendix B]:
1. How would you rate the top performing car repair service in Dhaka?

The chart showing, around 55% participants are somewhat unsatisfied, 15% very satisfactory
with the top performing car repair service in Dhaka. On the other hand, 25% said very poor and
around 5% superior. So, the chart is showing that most of the people are not satisfied with the
service they are getting at the moment and AMW will be able to fill that gap at the same time, it
will be able to build a strong position in the market very easily.
2. How would you rate the automobile maintenance modern service in Dhaka?

According to the chart around 60% participants think the present automobile maintenance
service in Dhaka is very poor. This indicates a good possibility for our company to make place
for itself in Dhaka city. On the other hand the number of people who said it is very satisfactory is
around 15% it is really low compare to 60%. However, the result is really encouraging for AMW
because this company is going to start its journey base of modern technology.

3. In thinking about your most recent experience with your automobile service
provider, was the quality of customer service you received:

According to the result around 50% people has negative experience with the automobile
customer service on the other hand just around 5% said very satisfactory, it means the customer
service is not up to the mark at this moment. I think the idea of providing best customer service
of our company will gain a great number of customers in future as a result long term profit

4. The process for getting your concerns resolved was:

According to the chart 50% of the participants have rated about average to the fact of concerns
resolves ration. In addition 20% rated poor and around 15% said somewhat satisfactory on the
other hand, less than 10% rated very satisfactory and only 5% said superior. So, the result says
most of the people are not happy with the process. However, the way AMW will provide its
services to its customers will erase disappointment of the customers of automobile servicing in
Dhaka city.
5. The damaged car or vehicle carrier and the mobile hospitality system service from
workshop made the customer service experience more satisfying
In this
agree the
on the

other hand only 5% strongly disagree. There is a huge gap between 55% and 5% so; this means
most of the participants are positive about the idea of mobile hospitality and I think this services
will add extra value to the journey of AMW because this service is not available in the market at
the moment.
6. The automated phone system made the customer service experience more satisfying

According to the result more than 55% participants strongly agree the idea of customer care
phone service and very few really disagree about the fact. This means the customer care phone
service is valid to the customers and it will add value to the business of AMW in the long run.
7. Would you go to the automobile workshop for sort-out each problem and bargain
them about service rate where you will completed it on website was in Dhaka?

In this chart around 50% strongly agree, 30% agree the web based online service of automobile
on the other hand, around 5% strongly disagree, and only around 3% disagree the fact. However,
I think this idea will take our business very far towards its goal of becoming market leader.
Moreover, there is a gap between customer expectation and actual performance. Furthermore, it
substantiates the notion that the Bangladesh lags behind in this sector of the industry than foreign
developed nations. Hence, adding value to this segment can pave the way for benchmarking and
in return profitability.
It can be concluded that it will be feasible and the market is very attractive, since the posh
venues has very high interest amongst the respondents and however, extra revenue on the side
will definitely increase profitability and enhance customer experience.

Focus Groups Discussion:

Our focused discussion covered on
Can our competitor provide the satisfactory level of service?
What kind of services provided by the automobile & insurance company of Bangladesh
and their promises?
Does the Automobile Maintenance industry have satisfactory level of service

How we shall get the improvement in Automobile Maintenance Service as prospective be

So its drawn from the focus group discussion, is that there is a high level of scope within the
market only if some values of some segments (online service, notification service, live streaming
service etc.) can be improved above the average. In others words, the market positioning would
need to be higher in order to succeed.
According to the survey result, AMW as a business is feasible since the market is highly
profitable. The gap of a good car servicing workshop, that alive in the market, our company will
be able to fill that and will earn long term profit.

3.3. Product/Service Feasibility

1. If a new automatic automobile workshop will provide the service of repairing time
as like 30 minutes with perfect diagnosis then will you move there?

In this chart the result of the question is very exiting 65% people strongly agreeing the fact of 30
minutes repair service and 25% agree the idea. On the other hand, only 2% strongly disagree and
around 5% disagree. This means almost 80% participants like the idea of 30 minute repair and it

will bring a great sales rate for the company because I think 30min service is one of the
companies value added service.
2. Do you think the course (1 month) that AMW is offering, going to be helpful for

According to the chart around 60% participants strongly agree and 30% agree to the fact that the
1 month course AMW is offering is going to be helpful for them. On the other hand only 10%
participants strongly disagree the fact. This means the idea of the course is really effective and it
will help a good number of people who own car or wants to buy one.

3. Will you consider going to the automobile advice center to get advice before you buy

a new car?
According to the chart 50% people strongly agree on the other hand only 5% strongly disagree to
the fact of AMW advice centre. Additionally, 20% participants agree and 15% participants are
disagreeing with the fact. However, more than average people like the idea of advice center. This
means the company will get advantage on the advice centre idea and it will add value to the
company reputation.
4. As a customer if the workshop will import the auto parts then it will work as more
customer satisfaction.

In this chart, around 60% participants strongly agreed the idea of importing auto parts on the
other hand just around 5% disagree the idea. So, the result showed a huge advantage of
importing auto parts for the automobile company and the idea of importing automobile parts will
be able to get extra attention from the customers of AMW once it starts its journey.

5. Do you think online check back service with a live streaming or streaming video of
service your cars each and every diagnosis and repairing operation?

This is quite confusing results I have got during the survey around 50% strongly agree and 30%
strongly disagree the live streaming in website. People strong agree and strongly disagree almost
same with chart. But the good side is 20% agree with the idea which makes a positive feedback
for the idea and I think it is a valid idea indeed.
Finally, the product and services we are going to provide are really useful for all the car users
and I believe those products and services are going to add value to our sales and increase
profitability, there is no doubt that AMW product and services are feasible.

3.4. Technological Feasibility

Technology is the base of our business. We need to use it in every step of our business activities.
Regarding technologies there is few key actions we are going to take before starting the business
and the actions are given below:

Construction: it is going to be a very important part of our project because the land we
have is not ready for a starting of a automobile workstation. There is a small two stare
building which I am going to consider as the main office of the company. And the
building needs to design in base of our company characteristics. We are going to give it a
posh look in its decoration because our customers are going to sit there and watch the car
repairing live from the building. And the main work station is going to be at the other side

of the building where we need to do some contraction regarding the need of repairing

Sound systems and cameras: there will be many cameras around the main working
station and sound system so that we can talk or give command to our workers from the
office. The customers are going to sit at the office where they will be able to watch the
work going on at the station. So we are going to use high quality video system for the

Tools &Equipments: the tools and equipments we are going to use is the most updated
version of car repairing equipments available in the market at the moment. We will try to
use the best tools needed to service a car.

Machines: to run our workstation we will need few very important giant machines at our
workstation before we start our business. Because, those machines are need to set on the
workshop are before start using. So, we are going to get few machines from the local
market and few necessary modern machines from Japan under the reference of our two
service investors, because they have a very strong connection over there.

Internet service and softwares: to run the business we are going to use computer and
internet vastly, to get the best out of online service we are going to get the best internet
connection of town. Moreover, important softwares will be customized to make our
services more effective and easy. We are going to use those softwares for HR, Finance,
Customer service and many other purposes.

To conclude, it can be said that the company is going to use all the available and best
technologies to run the business, most of all few are going to imported from abroad to fulfill the
need and it is a great potential to add value to the business with the use of technology. So, the
technology of the company is feasible.

3.6. Organizational Feasibility

Bangladesh is 3rd world country- this is why we didnt grow the best the best modern technology
uses habituate as fast as the 1st world county. Now days we have it but we didnt know how to
maintain it. Our weather, people and nature are so different from those 1st world countries
weather people and nature. So, we have to change our habituate. Recently Bangladeshi govt. has
decided that all automobile importers should import the latest model to back three years model
old vehicle. So that reason now the importers are import the modern vehicle which has
completely operate by electrical circuit unit (ECU).
We have some sales projection, profit and loss review; net profit and expense lots of areas are
ensure that we have on right track. Where we also analysis the expense/time value of money
returns, debt of equity, Increases & decreases rate operation barrier, service barrier, sales ethics,
techniques, branding, core marketing, financing, identification of strengths and weakness of this
business, sales management techniques practical examples, forming the organizations
appropriate size, location and legal aspects of business, preparation of financial statement, profit
& loss account, balance sheet, business planning & control, analyzing market and customer
behavior reaching the customers, e- marketing, managing financial requirements from bank,
financial projections, purchase (material) budget, overhead budget, commercial, marketing
expenses budget recording transactions, cash book, sales book, purchase book, debtor ledger,
creditor ledger, etc. however, AMW organizational structure is given below:

3.7. Human Resource Feasibility

We provide information about working conditions, key policies, procedures, and benefits
affecting employment at Automobile Maintenance Workstation Ltd.

Changes in Policy

The policy supersedes all previous employee manuals and development. While every effort is
made to keep the contents of the policy, General Automation Ltd reserves the right to modify,
suspend, or terminate any of the policies, procedures, and/or benefits described in the manual
with or without prior notice to employees.

Employee Status

"Employee" an employee of Automobile Maintenance Workstation Ltd. is a person who

regularly works for Automobile Maintenance Workstation Ltd. on a salary basis.

Employment Classification and Grading System

Employees of Automobile Maintenance Workstation Ltd. are classified as either Regular or

Regular: A Regular/Permanent employee is one who is appointed as such by a written
order of the management who has been engaged on a permanent basis and includes any
person who has satisfactorily completed a probationary period or extended period of
Contractual: Means an employee who is provisionally employed to work in a permanent
vacancy and who has not completed satisfactory service of probation including absence
due to sickness, accident or leave, the management may extend the period of the
probation of any employee.

Designations in Various Grades

Non - Professional

Executing Level


Indicative Designations
Office Staff
Sr. Office Staff
Sr. Technician




Executive Officer,
Sales Officer, Accounts Officer, Asst.


Operating Level


& Finance Manager, System Analyst


Sr. Executive- Marketing & Sales, Sr.
Programmer, Sr. Engineer
Asst. Manager, Asst. System Analyst
Marketing & Sales Manager, Accounts

Directing Level

Strategic Level

Programmer, Asst. Engineer

Sales & Marketing Executive,


and all Manager Level

General Manager, Deputy General
Managing Director, Deputy Managing
Director, Executive Director

Policy of Organization Design

The policy of Automobile Maintenance Workstation Ltd. towards Organization Design is to

provide a framework and outline a network of relationships among role occupants within which
employees are expected to behave. The organization design describes the levels of positions,
designations and the reporting relationships within the organization.

Compensation Policies

The policy of Automobile Maintenance Workstation Ltd. to keep the compensation structure
competitive keeping in mind the fast changing employment and business environment so that
Retain existing employees
Attract suitable candidates
Reward performance and productivity
Give sense of self-worth to the employees
Keep the structure dynamic
Successful working conditions and relationships depend upon successful communication. It is
important that employees stay aware of changes in procedures, policies, and general information.
It is also important to communicate ideas, suggestions, personal goals, or problems as they affect
work at Automobile Maintenance Workstation Ltd.

3.8. Financial Feasibility

Financial feasibility is the first and foremost important task for a company. I have done few
financial tests to weight the financial feasibility of our company. AMW is going to start its
journey with total capital of 80,000 and according to the table (start-up cost) total cost amount
is 63,050, which means company is going to have total (80,000-63,050) 16,950 after starting
the business. AMW will use the spare money for day to day expenses of the company.
Table: Start-Up Cost
Office Maintenance
Legal and Accounting
Utility Cost
Workshop Maintenance
Electricity & Installation

Year 1

Company Website


Total Expenses

Fixed Assets


Building Construction
Imported Machinery
Local Machinery
Furniture & Fixtures
Office equipments
Land (5 Years)


Total Fixed Asset


Total Cost


Moreover, the whole sales detail is given below:

Table: total car will be served in a year (predicted)

Car in per day

Total cars served

Year 1

Year 2

Year 3




Table: sales projection on membership cards (Y1-Y3)

Membership cards
Number of members

Year 1

Year 2

Year 3

Table: sales projection on car servicing (predicted)

Total cars in
Servicing Charge

Year 1

Year 2

Year 3

Products (predicted)




Total Sales

38, 000



Table: basic car maintenance training (predicted)

Year 1

Total customer
Training fees

Year 2

Year 3

Table: Cash Flow

Cash Flow Forecast
Cash In
Other Income
Loans Requiring Payback
Total Cash In
Cash Out
Other Expenses
Cash Paid for Taxes
Cash Paid for Fixed Assets
Loan Principal Payments
Loan Interest Payments
Owners Draws and Dividends
Total Cash Out
Net and Balance
Starting Cash Balance
Net Cash Flow
Ending Cash Balance

Yr. 1

Yr. 2

Yr. 3

Finally, according to the cash flow AMW will be able to cover its investment
till the beginning of third year from the starting year of the company.
However the company will have enough capital left to cover its regular
business activities and this is really a great advantage for any new business.
So, the company has potential to earn high amount of profit in the long run
and it clearly indicates, financial feasibility of AMW.


Chapter: Four. The Strategic

and the Business Model


Automobile Maintenance Workstation is strategy for booming up, it is more suitable for the
Market Penetration box of Ansoff Matrix. The new workshop products will also be introduced in
Bangladesh market. However it is more advanced and enhanced. Automobile Maintenance
Workstation will hit into the existing market at the same time it will search newer markets and
channels to expand its business. Moreover, it will follow by the company by introducing loyalty
plans and deep investment on advertising. This will guarantee a comparative superior market

(Source: Rothaermel, 2013)




1. Ride range to cater to specific

1. Unattractive Packaging


2. Market Awareness of Product Range

2. high Viscosity

3. Poor Partner Alliance

3. 4th largest Energy Company

4. Availability of Products

4. Technology Leader

5. Promotion

5. Reasonable Pricing


1. Awareness of nest solution

1. Increasing prices for raw materials

2. Partnership with small enterprise.

2. Environmental Regulations

3. Environmental Friendly

3. Hybrid Cars


4. Economic instability

4. Demand Shift for Value Added

5. Public Transport

5. OEM and Mass Production

(Source: Needle, 2004)

According to the SWOT the strength that the company has right now is sufficient to overcome
the weaknesses. On the other hands there are very strong opportunities for the company in the
market and the threats it has can be overcome by the opportunities in future. However, the
present position of the company is good the threat the model is showing is not a matter of
concern right now. So, I think company should concentrate in its strengths and weaknesses at the


The idea of value chain is to add value with the help of line between key operations of the
company. The value chain model of AMW is look like-

Add Value
Add Value

Add Value

Add Value

(Source: Needle, 2004)

According to the model the HR, technology, operations and marketing and sales department is
going to add value to the company. HR is going to play a vital role to the organization and
maintain the human recourses of the company and the success of the company vastly depend on
the maintaining of the HR of a company properly. Within the primary activates, most importance
will be given on marketing and sales and operations. The marketing and sales team needs to tap
those clients who want a premium service for the shows they organize. The operations
department will in fact be the creative do-errs of every show. In addition the technology is vital
for the operation of AMW because the company will need the help of technology in every step of
its business activities.

4.4. Source of Competitive Advantage & Sustainability

As stated in the last section, the companys infrastructure is to be boosted up. The location and
the service line and the garage equipment sales have make to expansion our business. In
addition, the best engineering support has create be loyal customers value with fulfill their
demands. Alongside that the creative input that AMW has to offer will brand from basis of the
competitive advantage.
Once this is done, the company can focus on the experiential branding. Brand will be made
stronger through advertising, marketing tools and customer loyalty schemes. The brand image
therein will pave the way for sustainability.
The lucrative creative input offer and the higher positioning in the marker will form the basis for
the strategy for competitive advantage. Most of these will add value to the organization and the
raise the market position. This blended with the creative input will pave the way for a
competitive advantage. As the business continues, market development and market penetration
strategies will suffice for a stronger brand image and hence stronger brand loyalty. This will
harness a path of sustained competitive advantage.


In order to have a sustained competitive advantage a business must have resources that areValuable, Rare, Inimitable, and Organized (Rothaermel, 2013). These recourses will help the
company to capture value for itself.
V-Valuable: valuable means recourses that are capable of add value to the profitability of a
company (Rothaermel, 2013). In case of AMW, the valuable resources are the location itself
and the technological input that I believe will be able to add value to the profitability of the
R- Rare: rare stands for the recourses those are not available to one companys competitors or in
the market (Rothaermel, 2013). In case of AMW the technical department and the ways that the
company is going to serve its customers are rare and its rare because the whole process will be
handling by the most talented and specialized people of the field.
I-Costly to Imitable: costly to imitable means companies recourses that are really expensive and
there are very few companies who can afford them. In case of AMW, the machines, it is going to
import from Japan are really expensive and exclusive for the automobile servicing market of
Bangladesh because we are importing then in a special reference of our engineers. However, it is
not possible for many companies to import them from abroad.
O-Organized to capture value: organized to capture value is the management that is organized
and capable of tie together all the above factors to add value to the company to achieve
competitive advantage & sustainability. However, the management team of the company is the
most organized and quality team of the automobile servicing sector compare the other companies
of the market. Additionally, the HR department and its policies to form the basis of an excellent
employee management system is the added advantage for AMW.
Finally, after analyzing the VRIO model it is clear that, the capability to organize effectively and
as result along with the technological input will cover the way for the sustained competitive
advantage by this organization.

4.6. The Business Canvas Model

Business canvas model was designed to set all the key business information under one frame
(Peng, M, 2009), so that company or investors can get an idea about the business easily.

(Source: Peng, M, 2009)

The business canvas model of AMW is clearly showing the key sources, activities and recourses
of the company. The justification of the model is given below:
The key partners and Key recourses: both factors are really important to achieve recognition
and success in any business field. They are the key tools of a company to help it to grow and add
value. Our engineers and importer of car parts are the most important partners along with other
partners because, our key recourses are mostly depend on their co-operation. Moreover, I think
we will not face any problem regarding these facts because we have really good relations with
Key activities and value proportion: both the factors are really important for the profit
maximization and long term profitability of a company. the key activities like- marketing
campaign and customer service along with car services will add value to the profitability and
sales of the company.
Customers segment and customer relationship: customer segment will help us to take actions
regarding building relationship with our customer. In addition both the facts are linked to each
other. Customer relationship depends on the customers segmentation because the needs and
demand of a customers are not same, it varies customer to customer. However, AMW has
chosen its segment now they will be able to customer relationship according the segments.
Cost structure & revenue streams: These are the most important factors of the model. Cost
structure helps a company to know key areas of its spending and it helps them to take any future
financial decisions for the company. On the other hand, revenue streams are the tools that help a
company to meet its costs and other basic expenses. Our cost structure and revenue stream are
very straight forward and they will be able to add value.
Moreover, channels are the key of marketing of the company. The whole marketing process is
depending on its core channels. However, the elements of the business canvas model are really

vital to take all the strategic and operational decisions for a company. It is a wealth for our
business and business activities.

4.7. 3Is Model

3i model is a tool to find out the immediate, impending and invisible competitors of any
company. The automobile industry is growing dramatically and the need of automobile servicing
is increasing in a same way in Bangladeshi market. So, AMW is not the first servicing or
maintenance company in the market. Now in this part of the study I am going to highlight those
immediate, impending and invisible competitors of my new automobile maintenance
Immediate Competitors: immediate competitors or directly competitors of AMW are:
DHS motors ltd
ECM auto centre ltd
Navana ltd
Pacific motors
However, those are the direct competitors of the company because they are the companies who
are providing hi-tech automobile servicing services at the moment but the charge of the services
are out of reach for most of the automobile customers.
Impending Competitors: the impending or upcoming competitors of the company are:
Walton Hi-tech industries ltd
Singer Bangladesh
BJ automobile solution ltd
Aftab automobiles
They are the impending competitors of the company because those companies have already
entered in the market and the processes they are using for car maintenance are updated then other
local servicing centers of Bangladesh.
Invisible Competitors: invisible competitors are those who are not entered in the competition
yet but have potential to enter and the invisible competitors of AMW are:
Modern auto solution

Titas transports
Mir tyre & battery agency
Car trackers
Vehicle centre
Bronze ltd
Moreover, those are the companies who are in the automobile industry of Bangladesh already
and they have experience in the field for many years and I think they can add automobile
servicing to their product list anytime.

Finally, AMW has a clear goal and effective tools to cope up with all the competitions in the
market. The company has focused on technologies to provide automobile maintenance services
and unique ideas like AMW advice center, mobile customer services etc for customer services,
these tools will take the company long way near future.
(Source: Biswas, 2007).


AMW is going serve to its every customer who has passion for cars or having trouble with car
repairing but for the need of business policies the company has to identify its core customers
who are:
Medium to high income group: this is the first target customer or core customer of the
company because most of the families got cars in Bangladesh in these levels or want to buy a car
for comfort of the family.

Professionals & business owners: the second target customer or core customers are the
professional and business owners because according to the research most professional and
business owners prefer to have a car to save time and to establish a class in the society.
Finally, he reason behind selecting them as our core customer is that they are the group of people
who are able to afford a car and often needs car services.

4.10. Conclusion from the Business Model

Building a trustworthy relationship with its core customers is a dire necessity for success of the
company. The evaluation of expenses, revenues and cash flow provides a momentous level of
assurance to continue with this business development plan because according to the results of all
the tests the business has the aptitude to produce profits within the second year or early third

4.11. Time horizon



Chapter Five: Business Plan


5.1. The Industry, Company and Products

This organization has all level base service like as the potentiality customer, high class citizens,
middle class citizen and the foreigners also. Small company, large company and the enterprise
base organization also obtain our service according to their membership of Automobile
Maintenance Workstation.
The company also has the mobile team based on emergency basis service work according to
customers needs. Providing by Automobile Maintenance Workstations own medium customer
doesnt feel their vehicle nonattendance which has change to modern service era of this
organization. The company is going to run by skilled engineers and it has the best human
resource practice in Automobile Maintenance Workstation.
AMW is not just a workshop, it is a workstation. We called it a workstation because of its
business nature and prohibits. Usual workshops like- Navana, Rahimafroz, Runner, Rangs,
Progati and Aftab are providing their services at their workshops but we are capable of providing
our service anywhere in Bangladesh through mobile team or online services.

The Product & Services:

However, the services company is going to provide is totally modern technological base and
effective for the car maintenance at the same time it will save a lot of time of our customers. Few
examples of our services are given below:
Main services:

Car servicing

Membership card

Basic training on automobile maintenance

However, few car servicing and maintenance list is given below:

Spray Booths
Series spray booths are extremely reasonable and dependable, provide spraying. The Zhongda
airflow system provides a meticulously clean what deal within the cubicle. Operators may

therefore work with total reassure and coolness, URSM practically any sort of today's paint
Electrical Control System
It is designed for easy procedure and dependability. All machinery are accepted, planned or
specialized by CCC, UL, ETL, CSA or CE.
o Digital temperature readout.
o Spray and bake temperature settings.
o Bake timer.
Car Collision Repair Bench
Uses for o Hydraulic tilting platform for easier loading and unloading.
o The pulling tower can move arbitrarily at any position around the platform.
o Double tower provides more possibilities for collision repairing.
o Hydraulic cylinder vertically in pulling tower, with strong and accurate pulling power.
o With different body repairing tools for any kinds of car collision.
o Accurate mechanical measuring system to measure 3-dimensional data of car body.
o Abundant car data is prepared and updated to the latest.
o The unique design of clamp provides easy and fast installment clamping for all kinds of
light vehicle.
Moreover, the products that company is going to provide are the basic parts of a vehicle to keep
it long-lasting and well maintained, security items like- fire distinguisher, bumper, censor, digital
lock system etc to make it save from any risk. Additionally, items that need to decorate a car to
make it more attractive and beautiful.


The Market

The market of the automobile workshop is really big in Dhaka city. Now days every family
wants to have a car according to their income and car loans has make it more flexible for
automobile customers to buy a car. According to the daily star, there are total 14m cars running
in the Dhaka city, 3.5m among them are private cars (The Daily Star, 2011). This information
indicates there is a huge need of servicing centre in Dhaka city. Moreover, the location that the
company has chosen for its workstation is in the central of industrial area. There is a huge
market for car repairing centers. Generally, the industrial areas got a high number of cars for
their industrial work or for private use; in addition, professionals and owners of the industries
count as the high income citizens of a country. So I think the location will add extra value to the
business of AMW and our early feasibility test has shown a high market feasibility of the


Cost/ Volume/ Profit Analysis

Cost: total start-up cost of the company is around 63,050 and the cost is distributed amongland, constructions, equipments, machineries and other assets. Moreover, the company will
spend its capital on marketing, operations, personnel and legal factors as well.
Volume: the company is expecting 1,800 car servicing in year one, 2,520 car in year two and
3,600 cars in year three. Additionally, AMW is expecting 40 membership cards in year one, 50
cards in year two and 70 in year three. Moreover, in case of basic training the company is
expecting 20 trainee in year one, 30 trainee in year two and 40 trainee in year three.
Profit analysis: according to the financial projection the company will star earning profit from
the end of the year two. The overall profitability of the company is showing really positive result.
And the company is expecting they will be able to get all their investment capital till the start of
year three which is really a good indication for the profitability in long run. Moreover, the
financial feasibility test has come fresh and positive as well.

5.4. The Marketing Plan

5.4.1. Company Direction & Strategic Intent

The company is going to start its journey under the automobile company. The whole company
will be focused on the development of the technology at all times. Technology is the base of its
services and it is the only tool differentiates the company from its competitors. The company will
focus on its technological development activities throughout the year and fortunately the
technology of the company is in a safe hand the most experienced and quality engineers are
going to handle everything.
Moreover, along with technology the company will focus on innovation among all its
departmental, activities and plans. The main focus alone with providing best service is
developing automobile knowledge among the customers which is another added value to the
strategy and profit ability of the company. During the feasibility test more than average people
really appreciated the idea of increasing knowledge through training.

5.4.2. The Identity


Automobile Maintenance Workstation (AMW)


To provide the new age world class automobile services and widespread products under one


To fulfill the gap of a modern, well organized automobile workshop in the market through the
best use of modern technology and increase the automobile maintenance knowledge among the
general people by giving the best possible advice regarding automobile.

Core values:

Being loyal to its customers is the first and foremost priority of the company. In addition it will
provide the best innovative way of giving its customers automobile services and increasing
awareness regarding automobile maintenance. Moreover, along with other factors gaining
customers satisfaction through world class services is the core of company values.

5.4.3. Business Objectives

To build a modern automobile workshop with all the modern

technologies available to make the service worthwhile.
To bring change in the automobile service market and increase
automobile awareness among the general people.
To create a great brand image and become the market leader in the
To hire the most high skilled workforce for the company.
To give the customers best service and car knowledge at all times.

5.4.4. Business Environmental Review

Market segmentation
The market segment is very small and clear. The company is going to target medium to high
income people of Dhaka city. In addition, professional and businessmans are also be targeted.
Moreover, the company is going to serve people who are going to buy new car or wants to
increase their knowledge about car maintenance.

Market penetration & market development

Marketing penetration and development can be achieved by assuring few elements and they are:

Internal marketing
Things that is within the company and they influence the company many ways to achieve its
marketing goals are called internal marketing. Things that are inside the company and will help
AMW to achieve its marketing goals are: customer service, AMW advice centre and training for
its employees. According to the company this elements will help it to achieve its marketing goal
at many ways and they will add value to the company profitability.

External marketing

Generally, external means outside of the company that influence a company many ways and help
them to achieve their goal. In case of marketing there is a marketing mix called 7Ps that the
company needs to assure to get market penetration and market development. They are:
Product: the main product of the company is car servicing and maintenance. Moreover,
basic car maintenance course, car parts, decoration items etc are also will be provided to
its customers.
Price: the price of the services is really low compare to its competitors. For servicing
average charge will be 20, for training fees would be the same for one month. Moreover,
the membership will charge only 600 per year. However, cost leadership is the main
strategy for the pricing.
Place: the place that where the products/company is going to available are: company
workstation, internet, local shops etc.
Promotion: for promotion the company has chosen the easiest ways to reach its
customers and they are: social network, newspaper, and radio and AMW advice center.
Physical Evidence: the product and services will be available at the workstation, online
and advice centre. AMW its customers best customer service experience and a homely
environment at the workshop as a result customers will feel like they are at their home
during their car repairing or other service process.
Process: the company is going to open its workshop door 8 am in the morning for its
customers and it will stay open till 11 am in the night. Moreover, the customers will get
24 hour customer services by mobile and internet.
People: people who are going to involved in the marketing process are the managing
director- who is going to set goals and make strategies, engenders- who will decide the
technical service factors and marketing manager- who is going to do the main task of
marketing process planning the marketing activities and achieve the goal set by the top
level. Lastly 24 hour customer service will be available for the customers.

5.4.5. Risk Assessment

There is no initial risk yet for the marketing process. The political and economical environment
is really stable at Bangladesh at the moment but if any new problem arises among any of this
factor then company can face a huge trouble during its marketing process. Marketing insatiability
can stop or delay the marketing campaign or other marketing related activities, economical
instability can do the same harm to the marketing campaign. On the other hand, the marketing
budget can be a risk, if at any point the budget projection goes wrong. However , I believe
company will not face any of this problem because it has extra capital after its starting cost
which the company will be able to use for its marketing process if needed.

5.4.6. Cross Functional Dependency

The company has set all the departments in a manner that any department will not be able to
work by itself every department needs to help each other for its business activities and this way
the company has achieved cross functional dependency.
Moreover, the HR department would be the lead of every employees of the company and other
departments- finance, operations, marketing and sales will be driven by the panning and
strategies of the HR department. However, all the departments will be responsible for the
operations of the company because this is the ultimate goal of a company to do well on
operations. In addition, the top level and engineers will always be there for every department and
they will set the goal and control all the departments.

5.4.8. The Marketing Budget

The marketing budget is one of the most important investments on any
business activities. A company needs to be careful and very generous with
this fund. In the beginning stage of a company, its identity and customers
quantity depends on its marketing procedure. The total marketing budget of
AMW is given below:

Table: Marketing Budget.

Marketing Forecast
Company Website
Total Expenses


Yr. 1

Yr. 2

Yr. 3

The Development Plan

Year 01: in the starting year the company is going to focus on its construction, decoration and
marketing plans. This period is to make a strong base of the company so that it can cope up with
all its risks and barriers in the long run. Finance and marketing are the most important facts at
that time and the company will make sure both of the action is going smooth and properly,
because if there is many problem with finance management then the company will not be able to
start its journey. On the other hand, marketing is the main tool for a company to attract its
customers and approach them to buy their product/services.
Year 02: in the year two the company will sit and observe its operation activities and other
activities related to its business. The main task that the company is going to do is making sure
that all the plans are going right finance is sufficient and all other departments are at their place
working on their best possible ways. At the end of year two the company will start evaluating
both year one and two to find our all their mistakes and faults, at the same time the solutions to
those problems.
Year 03: the company will work on their lickings in this stage to make sure they can get the
maximum profitability. After solving all their problems and copping up with risk and barriers
now it will start panning on its new workstation on Narayangonje, which is situated near Dhaka
city and link to other main cities of the country. So if they can built a workstation their then it
would be a root to other cities of the country.


The Management Team

The management team of the company is highly qualified, a group of energetic and enthusiastic
people, who are very passionate about cars and always wants stay engaged with the automobile
industry. The company has two most important members who are engineers and wealth for the
company they will be the main driven source of the company. However, the company is going to
hire the best employees for its every department. The whole company management team list is
given below:



Syed Rifath Noweid Hussain

Said Mehrubur
Mr. Mashror
Mr. Hasan
Employee 1

Managing Director
Deputy Managing Director
Senior Engineer
Head of HR

Employee 2
Employee 3
Employee 4

Head of Operations
Marketing and Sales
Finance Manager

5.7. Operational, Economical and Financial risk assessment

If political impulsiveness rises, the operations will be at risk or not to be held back and the
movement will be slowed down or make it charge on circumstances basis. An additional risk is
that if the total investment cannot be gathered at the start, financial plan restraints may surface
and again slow down the drive. Again these risks possibly expensive but not for a incorrect
move, and/or excessiveness, the company may find itself in a credit crisis condition. Therefore
added finances will be compulsory in this case and also additional study.

5.8. Operations Plan

The operations team or sector will be reflective deep-rooted to all departments so as to carry out
the functions with no difficulty as well as to improve cross department functionality. The
operatives will work under different departments and work on an assignment basis so as to make
the operations successful and fruitful. These operatives added jointly will form the operations
unit. The operatives will be the sustain formation for the company and strategies set by the toplevel administration and the diverse departments. At first the customers will go to the customer
service depart, where they will discuss their problems then they will be send to the engineers or
workers according to the damage of the vehicle or their needs. The workstation team will always
keep updating every action they take to the operation manager and manager will inform it to
other department, this way the whole company will involve in the operation plan.

5.9. Business Sustainability

The management team: the major accomplishment feature is that a group of innovative folks
will be route the company. The human resource will be elected as such that inventiveness is at
the crest of each expert worker and engineers. The operational setting will be on time and
prospective as in something like the other overseas workshop which was stood at other countries.
However, the people who are going to be the part of management of the company are extremely
talented and qualified; additionally all of them have experience in the field for many years. I
think the management team will add value to the business activities as a result long time
Product/Services: the second success factor is the products and services that AMW is going to
offer are unique and not available in the market at the moment. In addition many of our products
are going to be imported from abroad by our suppliers, which is added advantage for the
Use of hi-tech technology: the technology that our company is going to use, are hi-tech and only
few workshops have those kinds of machine/equipments in Bangladesh. I think the technology is
the base of every business activities of our business and we are going do proper use of it. So, I
think the technology will add extra value to the company activities.
Customer service: last but not the least the customer service of our company is very advanced
and innovative. We are going to use mobile service, online customer service and many other

processes to reach our customers, which are not seen yet in our country. Our customers will get
us 24/7 for their service and this is really rare and useful for customers during any problem
related to automobile. So, the customer service will bring us a really good reputation along with
increasing sales.

5.10. Implementation Schedule

Implementation period is the time when a company does its planning and other activities related
to the starting of the business. The implementation period for AMW is from September 2014 to
2015. The whole one year schedule is given below:



Month 1

Get the License & Construction works

Month 2

Construction works

Month 3

Construction works

Month 4

Decoration & Buying Equipments

Month 5

Decoration & Import Machines

Month 6

Start hiring & Electricity Installation

Month 7

Hiring process Continues & Machine fittings

Month 8

Marketing Starts

Month 9

Marketing Continues

Month 10

Testing Period of workstation Starts

Month 11

Testing Continues

Month 12

Opening the workstation

5.11. Financial Projections

This is one of the most important parts of a business plan. A company needs to have sufficient
financial support to run its business. In this part of the plan I am going to overview present and
future the financial position of AMW. The financial projection of the company is given below:
Table: operational expenses & fixed asset forecast
Office Maintenance
Legal and Accounting

Year 1

Year 2

Year 3

Utility Cost
Workshop Maintenance
Erection & Installation
Fixed Assets
Building Constriction
Imported Machinery
Local Machinery
Furniture & Fixtures
Office equipment
Land (5 Years)

Table: Profit & Loss

Profit & Loss Forecast

Yr. 1

Yr. 2

Yr. 3

Other Income
Gross Profit
Payroll Expenses
Payroll Taxes and Benefits
Operating Expenses
Erection & Installation
Interest Expense
Legal and Accounting
Office Maintenance
Utility Cost
Workshop Maintenance
Total Operating Expenses
Earnings before Taxes
Income Taxes
Owners Draws/Dividends
Retained earnings

Table: Balance Sheet

Balance Sheet Forecast

Current Assets
Accounts Receivable
Total Current Assets
Fixed Assets
Fixed Assets
Less Accumulated Depreciation
Net Fixed Assets
Current Liabilities
Accounts Payable
Deferred Revenue
Short Term Debt
Total Current Liabilities
Long Term Liabilities
Long-Term Loans
Total Capital
Total Assets
Total Liabilities and Capital

Yr. 1

Yr. 2

Yr. 3

According to the tables of profit and loss, balance sheet the company will begin its profit earning
from the end of year two and it will be able to gain capital around 152,026 in year three. The
financial projection of the company is looking good and it is indicating a long term profitability
of the company. However, after all the tests and evaluation of the company position it is easy to
say that the company has the ability to run and succeed in the present market of Bangladesh.