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Business Plan of

CNC Wood Engraving Machine

Innovative Cutting And Engraving

Offering High Quality Products and Fine Services Innovative


Cutting & Engraving is a Manufacturer of modern computed
numerically controlled (CNC) and engraved parts. We have
prided ourselves on quality products and timely delivery.

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Company Introduction

Company Name :
NewTech Enterprises

Product Name :
NewTech CNC
Wood Engraving Machine

Mailing Address:

Head Office: 14FF Kohinoor Plaza Main Jaranwala Road Faisalabad.

Warehouse: Small industrial State Sargodha Road Faisalabad

Website Address: www.newtech.com

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Management Team

CEO Name: Mr . Kh .Shehryar Masud


Mob : 0321-8666418

Project Director: Mr.Muhammad Sajid


Mob :03217696911

Head of Department Marketing: Mr. Muhammad Shahnawaz.


Mob: 03217713003

Head of Department Finance Miss Maira Gull

Head of Department HRM Miss Sana Imtiaz

Head of Department Operations Miss Saba Ishaq

Head of Department MIS Miss Shumaila

Head of Department Art & Design work Miss Naila

Head of Department Consumer Relation Miss Samreen

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Confidentiality Agreement

The undersigned reader acknowledges that the information provided by


NewTech in this business plan is confidential; therefore, reader agrees not
to disclose it without the express written permission of the CEO NewTech.

It is acknowledged by reader that information to be furnished in this


business plan is in all respects confidential in nature, other than information
which is in the public domain through other means and that any disclosure
or use of same by reader, may cause serious harm or damage to NewTech.

Upon request, this document is to be immediately returned to CEO

Kh .Shehryar Masud

___________________
Signature
___________________

Name
___________________

Date ____/____/______

This is a business plan. It does not imply an offering of securities.

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we at NewTech are committed to provide intelligent products which
facilitates the manufactures of wooden products world wide by satisfying
their needs in time using state of the art equipment and CNC technologies,
Enhance their productivity and profitability by reducing their labor cost.

Nature of Business :

This is a Trading business and the concept is to get new machines from
china and distribute it in Pakistan but the major difference is to provide
services after sale.

Estimated Finance Required:


The estimated finance for this project is 10 million rupees but one can start it
even less than 10 million this decrease of investment depends on the number
of machines that one can stock . one have to maintain his stock sufficiently
and 5 to 6 machine should be there initially in stock at any time. One
Machine cost us at home of about Rs 130000 and can be easily sold Rs
160000. According to our plan we will use 50% Equity and 50% Debt.

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Executive Summery

This is a trading business in which we are importing machines and spare parts of
CNC (computer numeric control) Wood Engraver Machines from Ruijie
Corporation China and to distribute it into our local Pakistani market. Currently
there is no such distributor available in the market so we have to make our
distribution network first. And initially the product works on exclusive distribution
network. As we are dealing with business products so our target costumer is all the
manufactures of wooden products who want Innovative Cutting and Engraving on
wood. Such customers are working on large scale and face heavy demand of their
wooden products inside as well as out side the country.

Over all the Furniture industry in Pakistan is developing gradually at its own and
the idea of setting up showrooms on G.T Road, and Gujarat By-pass is increasing.
The estimated overall furniture sale from Gujarat is about Rs. 250 million per
annum. This figure is gradually increasing with the increasing demand and quality
consciousness of the consumers. Right now this CNC Engraver machine concept
is new for the current market and people are not familiar with the products
efficiency, so they are conscious regarding their investment in such (tools)
machines, but they can afford it and can welcome it if they will find a reasonable
price by showing them the related benefits.

The estimated finance for this project is 10 million rupees but one can start it even
less than 10 million this decrease of investment depends on the number of
machines that one can stock . one have to maintain his stock sufficiently and 3 to
4 machine should be there initially in stock at any time. One Machine cost us at
home of about Rs 1300,000 and can be easily sold Rs 1600,000. According to our
plan we will use 50% Equity and 50% Debt.

We at NewTech provide Ruijie brand which is well-known in quality and the


related benefits it provides and offers fewer prices. So the positioning of our
product in the minds of our customer will be fewer prices and more benefits which
is the main reason for making this business a great success.

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Industry Analyses

Global Environment:

The global trade of furniture is concentrated in selected countries. Four of


the largest markets for furniture are USA, Germany, France and Italy - all
with a domestic market of over $10 billion. The United States is the world's
largest furniture market, where the opening to imports in the last few years
has been impressive. There exists huge potential for future growth in trade of
furniture as new markets continue to open such as China, India and Russia,
which have the capacity to reach up to US $ 10 billion.

Pakistans Economic Development:

Pakistan is basically an agricultural country having 25% of total area under


crops. However, forest has quite meager part, which is about 4.8%; whereas,
the recommended ratio for balanced economic development, and
environmental stability of the country is 20-25% . Due to over population
stress, natural forest areas are being withdrawn from production to be placed
in reserves. Everything points to a growing imbalance between demand and
supply. Pakistan is suffering from acute shortage of timber wood and wood
products. Share of forestry in GDP in 1983-84 was 0.35%, whereas in the
year 2000, it has been reduced to 0.1% only. Growth rate of firewood during
1988-93 was 8.8% whereas during 1993-98 it was 2.9% only (Anonymous,
2000a).

Presently, public forests of Pakistan contribute only 10% of fuel wood and
just 14% of the commercial timber. Farm grown wood provides 90% fuel
wood and 65-70% of timber wood requirements (Mohyuddin, 1998). The
remaining 15-20% of timber requirement is being fulfilled by the import of
wood and wood products (Ahmad, 1991; Khan, 1989) and Rs. 9163.9
million per annum is being spent on the import of wood and wood products.
The total demand of wood in the year 2000 was 844600 m3

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Political Legal Environment:
Pakistans export in furniture has remained stagnant due to lack of modern
machinery & latest technology. Government of Pakistan is trying its best to
improve this rich industrys potential by emphasizing upon the opportunities
for the foreign investors, to develop the industry by the import of modern
wood working machines and latest wood processing techniques, working
closely with the Pakistans furniture industry in near future. The domestic
demand for home & office furniture is growing at an annual rate of over
25%. The next decade will see tens of thousands of new apartments and
offices coming up every year, requiring to be furnished a growing
opportunity for the furniture manufacturers.

Furniture industry is developing gradually at its own and the idea of setting
up showrooms on G.T Road, and Gujrat By-pass is increasing. The
estimated overall furniture sale from Gujrat is about Rs. 250 million per
annum. This figure is gradually increasing with the increasing demand and
quality consciousness of the consumers.

There are around 350 units overall and over 8,000 persons are directly or
indirectly involved in this sector. At the moment, a few of the local furniture
manufacturers are exporting furniture items to the individual clients in UK,
US, Saudi Arabia and Middle East. The total export of Furniture from Gujrat
is about US$ 4.5 million. (Directorate of industries), however due to limited
production capacity these firms are not able to fulfill the large export orders
and hence can not compete vigorously in international markets..

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SWOT Analysis

Strengths
Creative designs and innovating cutting.
Multifunctional products
Unique product
Competitive price
Providing support after sale .

Weakness:
Entirely new brand
Distribution and supply chain are not developed yet.
Dependent on our supplier.

Opportunities:
Can gain the first mover advantage in this field
To capture the entire wood market.
No such technology available in the market.
Expansion in future

Threats
The global economy downtown
Easy entry of the competitor
Market are very complicated and diversified.
No copyrights protection

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SECTION 1: DESCRIPTION OF VENTURE

We design and supply an exclusive range of Wood Carvings Machines to


meet a variety of applications. Our designed Wood Carvings are used by
countless customers all over the country, as these are enough to meet their
specific requirements. Special designs and advanced features of these Wood
Carvings always attract users to prefer us than other ordinary designers
serving in the competitive market. Hence, our expert designers dont
compromise with the quality of material and latest technologies required in
the designing process. They keep them update with all the market trends and
prefer latest methods and techniques to design them.

The machine is designed to offer maximum flexibility and much opportunity


of CNC engraving letters on wood,
other items like presentation
1) gift articles,
2) pops,
3) Regards,
4)Temple panel,
5) Wall pictures,
6) School boards,
7) Company logo,
8) Artistic carving tiles,
9) Pictures of maps,
10) Drawing pictures.
The revolutionary state-of-the-art-Technology engraving cutting of letters,
marking and inlay work is carried out on fully automated and computer-
controlled machine

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Growth Trends In This Business

Furniture industry in Pakistan is developing gradually at its own and the idea
of setting up showrooms on G.T Road, and Gujarat By-pass is
increasing. The estimated overall furniture sale from Gujarat is about
Rs. 250 million per annum. This figure is gradually increasing with
the increasing demand and quality consciousness of the consumers.

Targeted Market and Customers:

As we are dealing with business products so our target costumer is the


manufactures of wooden products who want Innovative Cutting And
Engraving on wood. Such customers are working on large scale
and face heavy demand of their wooden products.

Pricing Power:

Right now this CNC Engraver machine concept is new for the current
market and people are not familiar with the products efficiency, so they are
conscious regarding their investment in such (tools) machines, but they can
afford it and can welcome it if they will find a reasonable price by showing
them the related benefits.

Suppliers:
This is a trading business in which we are importing machines and spare
parts of CNC engraver machines from ABC Corporation China and to
distribute it into our local market.

Distributor :

Currently there is no such distributor available in the market so we have to


make our distribution network . and initially the product works on exclusive
distribution network .

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Location of the business:
This business is basically divided in to two parts the one is head office and
the other one is its warehouse.

Head office:
Head office is a place where our business customers will get interact with us
so it should be in a fine location and initially one should go for a rented
office or for its own office .we have selected a place for the head office is

14FF Kohinoor Plaza Main Jaranwala Road Faisalabad.

We have get this place on three year agreement against Rs 500000 Advance
payment and Rs 50000 monthly rent.

Warehouse:
is a place where all the products are used to store before the sale happens it
can also serve as workshop and can store all the spare parts of the CNC
engraver machines and also it contains the technical department who is there
to support out targeted customers. so mostly it is used by the company so
there is no need get a very fine location for it. Any place which is wide,
good for storage of machines and easily accessible is fine for warehouse. we
have selected a place for the warehouse is :

Small industrial State Sargodha Road Faisalabad


We have get 15 marls place on three year agreement against Rs 150000
Advance payment and Rs 15000 monthly rent.

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Office furniture and Equipment:
To meet official requirement of this business the following furniture is to be
required

Description No of Units Unite price Total


Tables 10 10000 100000
Chairs 20 2000 40000
Computer 5 20000 100000
Carpet 2 15000 30000
Stationery 20000
water Dispenser 1 7000 7000
Over Head Expense 5000
Telephones 6 1000 6000
Facsimile 1 20000 20000
Internet 1 1200 1200
Total 329200

All office equipment and furniture and fixture are purchased on cash and
they are company assets and insured by Premier Insurance Company .

Personnels
Human Resources
CEO-

Project Director- Rs 50000


Marketing Dept: 40000
Finance Dept 40000
HRM Dept 40000
Operations Dept 40000
MIS Dept 40000
Art & Design work Dept 40000
Consumer Relation Dept 40000
Operational; mangers 40000
Offfice Staff 5000
Total HR costs Rs 360000

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Professional Consultants

We have professional consultants in our business like Sir Khurram Ayaaz


( IT Manager AM-Tex Faisalabad) who is a well known personality in the
field if Digital processing and embedded software engineering ,who is there
to support us and providing there services in trouble shooting and maintain
ness of machines,he is there to help us in dealing with after sale services
support of such CNC wood Engraving machines

Work Experience Related to My Intended Business:


As nature of the product is technical and it required a lot of technical
knowledge to understand this machine . Especially As it is controlled by
computer (CNC computer Numeric Control) and use both the hardware
CAM and software CAD so one should have the basic knowledge of IT.
Being the Director of this project My Work Experience in this regard is that
I have done BS(Computer Science) and after completing my BS degree I
have moved my self towards business education and I chose MBA degree
to get familiar with business terminologies and its useful practices.
So this project needs all the skill related to business as well as information
technology . Also one must have to satisfy the costumer so it also required
strong interpersonal skills.

Background of Entrepreneurs:
As the CEO of this project what I feel the thing which motivates me in this
business is that it is a trading business and because I have the experience of
production related business that is yarn manufacturing. And the current
situation of Pakistan due to energy crises is not in favor of manufacturing.
So I have to go for trading and I believe the Future survival is only in trading
business.
As the Project Director of this project what I feel the thing which motivates
me in this business is that I have seen the embroidery machines and I know
how rapid this business is developed in Pakistan. 10 years back it was a new
and unique concept to make embroidery through machines and there was
only one distributor of such machines in Pakistan but now that business has
been penetrated in the Pakistani market and same is the case happen with
CNC engraver machines because the product is new and one have to develop
its market now so this is the right time to get into this business.

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Operational plan

Flow of Orders for Machines.


This is a Trading business and the concept is to get new machines from china and
distribute it in Pakistan but the major difference is to provide services after sale

Order for Machines to Ruijie china

Import
Price Settlement

Finalizing Order Clearance

Execution NEWTECH
Ware hose

NEWTECH
Head office

Customer
Pakistan

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Technology Utilized:.

Website Address: www.newtech.com

This is the web address of the company. The company would operate

through Internet technology and through telephonic technology. People can

also place an order by sending written proposals.

Description of Companies Operation:

NewTech will get a jump-start to building its client base primarily because

of its location and the fact that it is the only service provider of its kind in

the area. This will make it very easy for new clients to try Newtech's

Business Centre for the first time. It will then take our total focus on

customer service to ensure that those clients return.

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we will service our direct customers through our head office location on

14FF Kohinoor Plaza Main Jaranwala Road Faisalabad. The

customer will first welcome by our receptionist who is there

to help them in their queries if they want to buy a new

machine than the client will move towards our selling

department and if he need some special service regarding

there existing machines than he will move to our service/

customer care department, customer can also make

payments in head office and customer can enjoy our delivery service

which we have offered as well, depending on demand of the customer.

Credit Terms & Guarantees

Once we have verified their credit history with a credit agency check, our

business clients will be offered 30-day account terms. A 3 percent penalty

will be applied to all overdue accounts. Frequent and high-volume

customers will be eligible for discounts and specials.

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Marketing Plan

Marketing analysis
Market size
The information sources for determining market size is following:

Customer surveys

There are around 350 units overall and over 8,000 persons are directly or
indirectly involved in this sector. At the moment, a few of the local furniture
manufacturers are exporting furniture items to the individual clients in UK,
US, Saudi Arabia and Middle East. The total export of Furniture from Gujrat
is about US$ 4.5 million. (Directorate of industries), however due to limited
production capacity these firms are not able to fulfill the large export orders
and hence can not compete vigorously in international markets..

Market growth rate


currently there is 15% market growth rate annually and this growth is
increasing .

Market profitability
This framework, known as Porter's five forces, identifies five factors that
influence the market profitability:

Buyer power
Supplier power
Barriers to entry
Threat of substitute products
Rivalry among firms in the industry
Low Car manufacturing takes extremely large amount of capital to enter. To compete at GMs level is next to impossible.

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Market trends
Right now this CNC Engraver machine concept is new for the current
market and people are not familiar with the products efficiency, so they are
conscious regarding their investment in such (tools) machines, but they can
afford it and can welcome it if they will find a reasonable price by showing
them the related benefits.

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5-Strategic alliance
There exist a strategic alliance between NewTech Pakistan and
Ruijie china ,the motive behind this strategy is that they have the
manufacturing technology and we have the desired market so being
manufacture they are producing and we are here to distribute it in to
Pakistan

Key Success Factors


The key success factors are those elements that are necessary in order for the
firm to achieve its marketing objectives.:

Access to essential unique resources

We are largely dependent on our suppliers so the major key factor is that if we
become successful to get proper input from our suppliers (Ruijie) with in
proper time.

Ability to achieve economies of scale

Second success factor is, increase in sale and reduced our operational cost.

Access to distribution channels

Easy and timely access of our distribution system

Technological progress

Latest up to date technology in CNC engraver machines

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The Marketing Mix

Marketing decisions generally fall into the following controllable categories:

Product
Price
Place (distribution)
Promotion
People

People
The main problem faced by NewTech was the identification of the need and demand of
people so that they feel satisfaction .for this purpose a survey was conducted and question
were asked .our target market was wood manufacturer.

Market research

NewTech is accompany that have done a grate job in the field of innovative products.we
conduct a survey to know that what people want? Special type of Questioner was
prepared and the views of people were asked .Research is very important when ever we
launch a new product.

For the purpose the research approach we used:

I. Survey research
II. Observational research
III. Behavioral data

Our research instruments used are:

a) Questionnaire
b) Telephone
c) Face to face survey

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Segmentation
NewTech Company divides the market on the basis of different factors.

1) Geographical segmentation

Country urban areas sub urban areas

Pakistan 77 % 23 %

Province

Punjab,

City

Lahore, Gujrat, Chaniout, Multan, faisalabd,

2) Firmographic segmentation
As we are making business products so our target costumer is the
manufactures of wooden products who want Innovative Cutting And
Engraving on wood. Such customers are working on large scale
and face heavy demand of their wooden products.
3) Behavior segmentation
i) Quality sensitive:

The behavior of our target customer is first of all he is quality sensitive and
want quality products.

4) Need base segmentation


i) Need of power:

Such target customer feels more power by getting unique and advance
machinery into their business.

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PRODUCT:

Model Number: Wood working Machine(RJ2030)-1-1

Country of Origin:

China (mainland)

Brand Name:

Ruijie

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Primary Competitive Advantages:

Experienced Staff
Guarantee/Warranty
Price
Product Features
Quality Approvals
Reputation
Service
Small Orders Accepted

Main Export Markets:

Eastern Europe
North America
Mid East/Africa
Central/South America
Asia
Western Europe
Australasia

Supplier Address

Jinan Ruijie Mechanical Equipment Co., Ltd.


Daliu, China National Highway 308
Daqiao, Tianqiao
Jinan
Shandong
China 250000
Tel: (86 531) 8808 3666 (86 531) 8809 1666
Fax: (86 531) 8808 2666 / (86 531) 8809 0866
Homepage Address
http://www.globalsources.com/jnruijie.co
Other Homepage Address
http://www.jnruijie.com

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Product Specifications
Brand name
Functionality
Styling
Quality
Safety
Packaging
Repairs and Support
Warranty
Accessories and services

Key Specifications/Special Features:


Specifications:
o This machine is widely used in process for single
lines,milling,3D,cutting and engraving.
o Lathe bed adopts strong welded steel tube to avoid distortion.
o Y axis adopts double motors to keep stable moving.
o High accuracy Rack Rail travel method with high speed.
o Imported Square Liner Rail,high accuracy,heavy burthen.
o Advanced international technology vacuum with double cavity.
o Humanization Design of lathe bed vacuum and easy working.
o Intelligient protecting working fable.

Application:

Furniture Processing Industry, Home Decoration, Woodworking


Decoration, Doors Manufacturing, Wood Art Work

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Parameters:

o Working area: 2,000 x 3,000 x 190mm (80.77 x 120.17 x 7.5


inches)
o Max moving speed: 5,000mm(197inch)/min
o Max Engraving speed: 2,000mm(78.8inch)/min
o Hold method: Vacuum
o Reposition Accuracy: 0.05mm
o Working dictate: G code
o Spindle: 3.0KW Water Cooling
o Spindle speed: 6,000 to 24,000rpm
o Collet: ER20
o Transmission:XYHigh Definition Rack Rail Z Imported Ball
Screw.
o XYZ Guide: Square Liner
o Operation system: DSP controller
o Consumption Power: <1900W
o Dust collector power: 3KW
o Absorption power: 4KW

Payment Details:

Payment Terms:

o Telegraphic Transfer in Advance


o LC

Minimum Order:

o 1 to 99 Set

Value-Added Services / Augmented services


After sale and servicing

Free delivery

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Distribution Network
Distribution -Scope Strategies

Exclusive distribution
o Limiting the distribution to only one intermediary in the
territory
Intensive distribution
o Distribute from as many outlets as possible to provide location
convenience
Selective distribution
o Appoint several but not all retailers

Initially we will use Exclusive Distribution Strategies for this business:

A main factor in choosing NewTech was its expertise in high-quality


technical products on the consumer market.

Exclusive Distribution:
Advantages

Maximize control over service level/output


Enhance products image & allow higher markups
Promotes dealers loyalty, better forecasting, better inventory and
merchandising control
Restricts resellers from carrying competing brands

Exclusive Distribution: Disadvantages

Betting on one dealer in each market


Only suitable for high price, high margin, and low volume products

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Companies Distribution channels

Channels

-Selling to the customers: As we sell by our self whether by our


employ or by our sales force, we are in these cases in front of the
final customer. There are not intermediaries between our customer
and us .

Manufacturer (Jinan Ruijie Mechanical Equipment Co., Ltd)


Distributor ( Importer ) NewTECH Enterprises

Warehouse

Customer

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Positioning:

NewTech provide Ruijie brand which is well-known in quality and the


related benefits it provides and offers fewer prices. So the positioning of our
product in the minds of our customer will be less price and more benefits.

Product pricing:
The product price is mainly consists of the following factors
Financial cost + Timing cost +Energy cost + Risk

Pricing strategies

Value pricing ( skimming) It means that we base our prices on the value we
deliver to our customers. This practice is also called skimming. It is easy
because we are in the introductory phase of the product life cycle.

Consumer price------------- Rs 1,600,000 ($ 18824)

Supermarket selling price----Rs 50,000 ($600)

Shipping to Faisalabad-------Rs 25,000 ($300)

Factory price----------------- Rs 1,200,000 ($ 14118)

Break even Analysis


Our price of a single machine is Rs 1600000 a competitive pricing
strategy. And we have a fixed costs Rs 360000 that will remain constant
whatever the number of machines sell: To sell this machines we need Rs
100000 variable cost in labor and raw material. To recover your fixed costs
without making any profit you have to make a sale in amount:

Fixed costs (360000)/Selling price(1600000)-Variable costs(100000)= Rs


2600000 aprox

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So as we have one machine price is Rs 1600000 so we have to sale two
machines in one month to survive
Promotion
Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects of
marketing communication, that is, the communication of information about the product
with the goal of generating a positive customer response. Marketing communication
decisions include:

Promotional strategy (push.)


Personal selling & sales force
Public relations & publicity
Direct marketing
Advertising

Advertising Media:

Electronic Media

I) Radio

FM radio is one of the popular way to introduce such products to our target customers
by making special introductory program on the promotion of our products .

Reach radio advertisement covers major cites of Punjab and covers 60% of the target market which is
affected by your advertisement.

Frequency: The number of time a person is exposed to your message. In our case a
person must be exposed seven times to our message in a month.

Message: special half an hour introductory program on the promotion of our products.

ii) Email

we have try to send maximum emails to our target costumes consisting details of our
products .our target customer can also interact with us by sending emails as well. The
email address is as fallow newtech@hotmail.com

iii) website

website is made for highly educated business man who is using internet and keep
him/her self up to date by visiting different websites in this regard we have developed

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a website www.newtech.com . it not only contain all information regarding existing
products but also the products that company is going to launch in near future .

2) Print Media

1) Newtechs innovations Magazine:

A special magazine Newtechs innovations design by the Newtech company to


provide information regarding new brands.

2) professional magazines:

we can also promote our products in some special industry magazine like
architectural magazines ,furniture magazines

Promotional budget

Per month Budget for electronic media

Media Vehicle Title of vehicles Duration Charges

Electronic website www.newtech.com one month 1000

Email comsats ISP one month 500

Radio Introductory program 30 minutes 10000

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Per month Budget for printed media

Media Vehicle Title of vehicles Duration Charges

Print Magazine Industrial innovations monthly 5000

Total promotional expenses

Per month Budget for electronic media = 11500

Per month Budget for printed media = 500

Total =12000

Organizational Plan
In this organization only the partners will contribute towards business, nobody outside
the organization would be to invest and only the finance will be borrowed from the bank.

Form Of Organization.
This is a medium scale organization and it is basically a trading company.

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Organogram:

BODs
CEO
and G
Project
Operations
HR Marketing Financ
Director
e
Art
MIS Consumer
& Design
Relations

Managers

Asst Managers and Others

Thus an effective organization is an arrangement of people that successfully


achieved their purpose, ie. a large profit of fine product, and have done so in
a noteworthy, exemplary, commendable method or fashion.

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Organizational structure is defined as the organizations formal framework
by which job tasks are divided, grouped and coordinated

We use Organic structures in our organization, alternatives to mechanistic


structures. The underlying philosophy of the organic model is to provide the
space for all people to contribute ideas and effort towards the well being
of the organization. Organic organizations are characterized as highly
adaptive and flexible with little work specialization, minimal formalization
and little direct supervision of employees .Since organic organizations takes
into consideration the ideas of the employees this opens the doors to create
teamwork among employees.

Size of the Business:


The size of the business is small and initially 25 persons are enough for such
an organization, and among CEO will work at the top level management
and are responsible to make strategic plans and decision .Than comes
middle level management playing a key roll working at the same time with
upper and low level management which have 8 to 10 people who are there
to execute the plans and then 16 to 20 persons will work as operational
managers who are directly dealing with different corporate clients and with
middle level managements.

Size of the Business:

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Top Level of Management

It consists of board of directors, chief executive or managing director.


The top management is the ultimate source of authority and it
manages goals and policies for an enterprise. It devotes more time on
planning and coordinating functions.

The role of the top management can be summarized as follows

a. Top management lays down the objectives and broad policies


of the enterprise.
b. It issues necessary instructions for preparation of department
budgets, procedures, schedules etc.
c. It prepares strategic plans & policies for the enterprise.
d. It appoints the executive for middle level i.e. departmental
managers.
e. It controls & coordinates the activities of all the departments.
f. It is also responsible for maintaining a contact with the outside
world.
g. It provides guidance and direction.

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Middle Level of Management

The branch managers and departmental managers constitute middle


level. They are responsible to the top management for the functioning
of their department. They devote more time to organizational and
directional functions. In small organization, there is only one layer of
middle level of management.

Their role can be emphasized as

h. They execute the plans of the organization in accordance with


the policies and directives of the top management.
i. They make plans for the sub-units of the organization.
j. They participate in employment & training of lower level
management.
k. They interpret and explain policies from top level management
to lower level.
l. They are responsible for coordinating the activities within the
division or department.
m. It also sends important reports and other important data to top
level management.
n. They evaluate performance of junior managers.
o. They are also responsible for inspiring lower level managers
towards better performance.
p.
Lower Level of Management

Lower level is also known as supervisory / operative level of


management. It consists of supervisors, foreman, section officers,
superintendent etc. According to R.C. Davis, Supervisory
management refers to those executives whose work has to be largely
with personal oversight and direction of operative employees. In
other words, they are concerned with direction and controlling
function of management. Their activities include

q. Assigning of jobs and tasks to various workers.


r. They guide and instruct workers for day to day activities.

36
s. They are responsible for the quality as well as quantity of
production.
t. They are also entrusted with the responsibility of maintaining
good relation in the organization.
u. They communicate workers problems, suggestions, and
recommendatory appeals etc to the higher level and higher level
goals and objectives to the workers.
v. They help to solve the grievances of the workers.
w. They supervise & guide the sub-ordinates.
x. They are responsible for providing training to the workers.
y. They arrange necessary materials, machines, tools etc for
getting the things done.
z. They prepare periodical reports about the performance of the
workers.
aa. They ensure discipline in the enterprise.
bb.They motivate workers.
cc. They are the image builders of the enterprise because they are
in direct contact with the workers.

Identification of Partners:

37
The partners are Miss Saba Ishaq, Miss Sana Imtiaz, Miss Maira Gull, Miss
Naila, Miss Sumaila, Miss Samreen, Mr. M.Sajid, Mr.Shahnawaz, and
Mr.Shehryar.

Recruitment Plan
Roles and Responsibilities of members (Job Description and Job Specification)

Job description of CEO;


Setting strategy and vision
Corporate policies,
Controlling activities
Capital allocation
Profitability and growth
Relationship with board of directors
Management recruitment and development
building culture.
Team-building
Job specification of CEO;
A minimum of five years of experience in business
management, planning and financial oversight.
A minimum of five years of experience in personnel
management.
A minimum of three years of experience working with a board
of directors and committees.
College graduate or equivalent experience.
Proven skills in business and financial management.
Demonstrated ability to work in a proactively diverse and
inclusive organization.
Excellent interpersonal, verbal and written communications
skills.
Demonstrated ability to manage and supervise a staff team.
Demonstrated ability to multi task and work in a fast paced
office setting.
Proven ability to cope with conflict, stress and crisis situations.
Effective problem solving and mediation skills.
Proficiency with office computer equipment and software.

38
JOB DESCRIPTION of Finance Manager;
providing and interpreting financial information;
monitoring and interpreting cash flows and predicting
future trends;
analyzing change and advising accordingly;
formulating strategic and long-term business plans;
researching and reporting on factors influencing business
performance;
analyzing competitors and market trends;
developing financial management mechanisms that
minimize financial risk;
conducting reviews and evaluations for cost-reduction
opportunities;
managing a company's financial accounting, monitoring
and reporting systems;
liaising with auditors to ensure annual monitoring is carried
out
producing accurate financial reports to specific deadlines;
managing budgets;
arranging new sources of finance for a company's debt
facilities;
supervising staff;
keeping abreast of changes in financial regulations and
legislation.
Job Specification ;
MA in Finance, Accounting or equivalent experience.
Extensive financial or cost management experience.
5+ years senior level experience in international
development program operations.
In depth knowledge of USAID, CDC and other
international donor agencies.
Knowledge of cost accounting methods and practices
applicable to management of private and federal monies.
Comfortable with a team approach to management and the
ability to manage several major activities simultaneously.

Effective communicator with ability to communicate


organizations direction and ability to motivate others with
strong, honest leadership.

39
Excellent general management skills particularly in
facilitation, team building and coordination
Posses excellent problem solving skills.
Public Accounting or financial reporting experience.
Experience in the preparation of financial statements,
budgets and forecast.
Firm foundation in accounting principles and financial
reporting standards.
Sub-contract and sub-agreement financial management
experience.
Experience developing finance and accounting policies,
procedures and systems.
Demonstrates a leadership and management style that
works in cooperation with others who represent a wide
range of interests and needs.
Experience with international, non-profit organizations
(larger than $10M), as well as a multi-office, multi-national
environment.
Understanding of the difference between contracts and
cooperative agreements and their relevant terms and
Job description of HR manager;
Plan, develop and implement strategy for HR management
and development (including recruitment and selection
policy/practices, discipline, grievance, counseling, pay and
conditions, contracts, training and development, succession
planning, moral and motivation, culture and attitude
development, performance appraisal and quality
management issues)
Establish and maintain appropriate systems for measuring
necessary aspects of HR development
Monitor, measure and report on HR issues, opportunities
and development plans and achievement within agreed
formats and timescales
Manage and develop direct reporting staff.
Manage and control departmental expenditure within agreed
budgets.
Liaise with other functional / departmental head so as to
understand all necessary aspects and needs of HR
development, and to ensure they are fully informed of HR
objectives, purpose and achievements.
Maintain awareness and knowledge of latest HR
development theory and methods and provide suitable

40
interpretation to directors, managers and staff within the
organization.
Contribute to the evaluation and development of HR
strategy and performance in co-operation with the executive
team.
Ensure activities meet with and integrate with
organizational requirement for quality management, health
and safety, legal requirement, environmental policies and
general duty of care.
Audit and authenticate all documents related to legal, salary
statements and distribution, policies etc.
Develop and Maintain healthy relation with Govt. and Non
Govt. Organizations for better and fast functioning of
organization.
Plan for employees performance appraisal; develop tools
for appraisal, job evaluation and development.
Plan and direct for Training of employee including senior
managers, maintain contact with outside resources for
training.
Job Specification;
Minimum of 6 years human resources experience
Preferable to have experience in two or more of the
following areas: human resources management,
organizational development/change management, process
improvement (Six Sigma preferred), compensation, staffing.
Excellence in a client management model: mobilizing the
best people and integrating the tools and processes required
to meet the needs of the business
Business driven with strong financial acumen.
Strategic planning, complex problem resolution and general
management expertise.
Outstanding communication and presentation skills.
High level of interpersonal skills and integrity; solid team
player.
Ability to influence senior management, establish and
maintain collaborative partnerships and provide thought
leadership.
Ability to architect and drive change
Ability to lead in a global, matrixes environment

41
Critical Risks and Potential impediment

Environmental Risks
New Concept
Our product is a new concept for Pakistani market and it may become a potential risk for
our company to develop new market because people itself are very much sensitive about
new industrial products.

Financial Risks
Capital Arrangement.

As we have elaborated in our Financial planning that our capital budgeting consist of
50% Equity and 50% Debt. So we may have Difficulty in arranging the debts from
financial institutions.

Management Risks & Problems


Availability of Technical Human Resource

This machine is a little more complex in nature so to fully understand the working of
machine one should have special knowledge regarding Computer added design CAD and
Computer added manufacturing CAM So under such condition we need high technical
people that may become problem in future for hiring special technical assistance.

Legal Risks & Hurdles


We will have to involve with some Legal Issues like company registration, import issues ,
WAPDA stipulation so such following potential hurdles have been anticipated that may
become a barrier in our smooth launching this particular entrepreneurial business plan.

42
FINANCIAL PLANS
NEWTECH INTREPRISES
INCOME STATEMENT
For the peiod ended June 30th,2010

2010 2011 2012


Particulars Amount (Rs.)

Sales 64000000 76800000 80000000 720000000

Less: Cost of goods sold 5100000 61200000 63750000 57375000

Gross profit 58900000 15600000 16250000 14625000

Operating Expenses

Marketing Expenses 100000 1200000 1320000 1452000

Administration expenses 360000 4320000 4536000 4762800

Operating Income 10080000 10394000 8410200

Add: other income 20000 240000 264000 303600

Less: Interest Expenses 62500 700000 700000 700000


EARNING BEFORE TAX 9620000 9958000 8013800

Less: Tax 10% 962000 995800 801380

EARNING AFTER TAX 8658000 8962200 7212420

43
NEWTECH INTREPRISES
BALANCE SHEET
As on June 30th,2010
2010 2011 2012

LIABILITIES
RS. RS. RS.

Owners equity 5000000 5000000 5000000


Long term loans 5000000 5000000 4500000

current liabilities
Short term loan 500000 500000 450000
Bill payables 100000 150000 300000
Provision for taxation
Excise duty 2% 500000 477740 900000
Custom duty 2% 313000 300000 894103
Sales tax 1000000 1800000 1500000
Income tax 10% 1800000 2500000 3500000
TOTAL LIABILITIES 14213000 15727740 17044103

ASSETS
Fixed ASSETS RS. RS. RS.
Vehicles 2000000 2430000 2187000
Office furniture 329200 312740 297103
Intangible
Copy right 7 15000 60000 40000
Long term loans and advances
Preliminary expense 150000 - -

CURRENT ASSETS
Cash 8 1268800 1300000 1320000
Stock and trade 2550000 3825000 5100000
Stores, spares and tools 9 1100000 1300000 1500000
Accounts receivables 10 6800000 6500000 6600000
TOTAL ASSETS 14213000 15727740 17044103

44
NEW TECH ENTERPRISES
Cash Flow Statement

2011 2012

Cash Flow from Operation


Cash received from customer 73500000 71800000
Cash paid to suppliers (55000000) (60000000)
Interest paid (750000) (750000)
Tax paid (1135000) (1132000)
Net cash provided(use) by operating activities 16615000 63918000

Cash Flow from Investing Activities


additions in fixed assets ---- ----
Payment for machinery (63750000) (62475000)
net cash generated/used from investing activities (63750000) (62475000)
Cash Flow from Financing Activities
Addition to long term borrowings ---- 500000
Inc/decrease in short terms borrowings ---- (50000)

net cash used/generated from financing activities ----- 450000


net increase/decrease in cash 31200 268000
cash at the beginning of the year 1268800 1300000
cash at the end of year 1300000 1568000

NEW TECH ENTERPRISES

45
statement of changes in equity
issued paid up capital revenue
capital reserves reserves Total

Balances at the end of period


2010 5000000 500000 1300000 6800000

Balances at the end of 2011 5000000 500000 1500000 7000000

NEW TECH ENTERPRISES


ACCOUNTING RATIOS
2010 2011 2012
Efficiency ratios
total asset turnover 6.39 6.00 5.95
inventory turnover 7.0 6.8 6.5
average collection period 6 8 10
days sales in inventory 4 6 9

Profitability ratios
Gross margin 10.2 9.90 9.60
operating profit margin 8.0 7.80 7.20
net profit margin 9.8 9.50 9.00
return on assets 6.0 5.60 5.18
return on equity 8.0 7.30 7.0

Leverage ratio
long term debt ratio 2.9 2.5 2.0
long term debt equity ratio 4.55 4.0 3.8
total debt ratio 2.51 2.7 2.8
times interest earned 4.65 4.0 3.90

46
Break even Analysis
Our price of a single machine is Rs 1600000 a competitive pricing

strategy. And we have a fixed costs Rs 360000 that will remain constant

whatever the number of machines sell: To sell this machines we need Rs

100000 variable cost in labor and raw material. To recover your fixed costs

without making any profit you have to make a sale in amount:

Fixed costs (360000)/Selling price(1600000)-Variable costs(100000)= Rs

2600000 aprox

So as we have one machine price is Rs 1600000 so we have to sale two

machines in one month to survive

Harvesting Strategy

47
Harvest Strategy and Controls
The following will enable us to keep on track. If we fail in any of these areas, we will
need to re-evaluate our business model:

Month-to-month annual comparisons indicate an increase of 14.1% or greater.


Do not depend on the credit line to meet cash requirements.
Continue to pay down the credit line at a minimum as possible.
Maintaining Gross profit at least from 80% 90%.

Implementation
We will manage implementation by having a weekly milestones meeting with the entire
staff to make sure that we are on track with our milestones and re-adjust our goals as we
gather new data.

Once a quarter, we will review the milestones achieved, financial and estimated expanses
to ensure that we stay focused on our business objectives and that we are not distracted
by opportunities simply because they are different than what we are currently pursuing.

Contingency Planning
In the event that the business has a slower start-up than
anticipated, expenses may be reduced as follows:

We may work up to two years and the directors will have to take only 50% of
their share of profit .
We may reduce our profit margins.
We may start reducing our extra marketing expenses.
We may reduce our human resource to become cost effective.

These quantified savings can reduce operating expenses and more viable position that
would pave our ways towards success as soon as possible.

48
Appendix

Following are some of the Creative work done by CNC


engraver machines

49
50
Ch Lal Din House ph: 041 8716089 Date of Birth 25/11/1982
house# P-91Street# 5 Mob: 0321 7696911 NID# 33100-6374968-9
Rabany Colony Faisalabad E-Mail: zoonpower@hotmail.com

Muhammad Sajid

Objective To contribute outstanding technical, managerial as well as


communicational skills and strong commitment to achieving your
companys goals.

Experience 20082009 Pakistan college D-ground Faisalabad


Visiting Lecturer
Major IT subjects.
Human Resource Management
Financial Accounting
Business communication

20072008 Lingua Home linguistic institute DHA Lahore

Lecturer (6:00 pm to 9:00 pm)


English Spoken classes.
Being teacher I have the ability to use clear communication techniques
and to create a happy, caring and stimulating learning environment.
Excellent written and verbal communication skills with the ability to
Conway subject material in an accessible and compelling manner.
Strong leadership qualities and the ability to manage challenging
behavior calmly and effectively.
The ability to establish positive relationship with fellow professionals and
parents.

20062008 Raja Jee Associates Y-Block DHA Lahore

IT coordinator and sale Representative (9:00 am to 5:00 pm)


Manage all the data regarding different Land and properties in a uniform
way by using real estate data management software tool.
Evaluation of different land and properties.
Being representative dealing with other companies.
Demonstrate companys current project to the out side world.
Made transactions worth of Rs 80 millions/ year by selling different DHA

51
plots and files.

20052006 AK Exports(Pvt)Ltd. West canal road Faisalabad


Manager Information system
Manage all computers of the company ,work as a troubleshooter and
problem solver and maintain all the local aria network.
2004 2005 GC university Faisalabad
Teacher Assistant
Arrange classes and conduct assignments.
Working on universitys current projects
Project demonstrator

Profile Highly motivated, customer focused performer who is committed to


quality in every pressure and thrives on challenge.

Excellent communicator and a good listener. Enthusiastic learner who


quickly grasps concepts and technical skills.

Education Date Degree Institute Grad/Division

2008 May 2010 ( MBA ) University of Agriculture Fsd continue...

2001 - 2005 BS(CS) GC university Faisalabad 3.17

1999 - 2001 ICS Govt. college Faisalabad 2nd division

1998- 1999 Matric(science) Oxford Cadet School 1st division

Technical Skills Certification Operating System / S.W Applications.


Networking Windows Internet Explorer
98/2000/XP Mozilla
MS Word Open Office , SPSS
FOSSAC 2005 MS Excel C++
Administration MS Office VB.Net
Open source SQL server Java
T Software Red Hat 8,9(Linux) DB2
eam Work I am equally happy working in a team as to on my own. I have worked
individually creating budgets, establishing strategy and analyzing data
Interests Management , Communication , Representation and information technology.

52
Samreen khalid

Home Address:
176 C GULBERG Colony.

Fathers Name: Permanent Address: SAME

Imtiaz Ali
Mobile: 0300-6547838
Email: sana_imtiaz@yahoo.com
Nationality: Pakistani
Tel: 041-0000000

Date of birth: 11 Nov 1987

EDUCATION AND QUALIFICATIONS

Masters in Business Administration 2008 to date


University of Agriculture, Faisalabad

B.Com 2006 - 2008


University of Punjab

Marks obtained1086/1500, 70%

OTHER SKILLS

MS Word
Ms Excel

ACTIVITIES AND INTERESTS

Study Current Affairs


Reading books
Listening music
Net browsing

REFEREES

53
Reference will be provided on requests.

NAILA TABASSUM

OBJECTIVE:

To work in a challenging and growing organization to make full use of


capabilities and the professional skills to grow in hierarchy of organization.

PROFILE:
Name: Naila Tabassum
Fathers name: M.Asalm
Date of birth: 06-9-1987
N.I.C # 33100-015625-2
Religion: Islam
Marital status: single
Domicile: fsd
Nationality: Pakistan
Language: Urdu, Punjabi, English
Contact # 0301-7854565
Address house # 57, jranwala road, fsd

PROFESSIONAL QUALIFICATION:

MBA finance (to date)


From: agriculture university of, Faisalabad
Final semester

B.COM (2008)
From: university of Punjab
Division: 1st

FSC (2006)
From: B.I.S.E
Grade: B

MATRIC (2004)
From: B.I.S.E
Grade: A+

INTERESTS AND SKILLS:

Browsing

54
MUHAMMAD
cooking SHAHNAWAZ
House # 323 (P-1), Kaleem Shaheed Colony, Near Iqbal Hospital, Faisalabad

MSN_engr@yahoo.com

Cell # 0300-7900781

OBJECTIVE:
To be responsible member of an Organizations team where my qualification and
experience can have a measurable & valuable contribution towards and achievement of
ultimate objective and task assigned.

PERSONAL INFORMATION:
Fathers Name : Nazir Ahmad

Date of Birth : 2nd Day of March 1983

N.I.C. # : 33100-4719646-3

Domicile : Faisalabad (Punjab)

Nationality : Pakistani

Marital Status : Single

PROFESSIONAL EXPERIENCE:
24 May 2008 to Date
Water and Sanitation Agency, FDA, Faisalabad
Working as SUB ENGINEER in Planning & Designing Directorates at WASA, FDA,
Faisalabad

01 September 2007 to 22 May 2008


Govt. College University, Faisalabad
Worked as sub Engineer B/R (Building and Road) at Govt. College University,
Faisalabad.

55
01 January 2007 to 23 August 2007
Punjab Rural Support Program (PRSP) Faisalabad
Worked as Field Engineer in the School Council Program under the Punjab Rural
Support Program (PRSP), Faisalabad

30 January 2006 to 28 December 2006


Agricultural Department (On Farm Water Management) Faisalabad
Worked as Sub Engineer in the Agricultural Department (On Farm Water Management,
Faisalabad)

PROFESSIONAL TRAINING:
01 July to 15 July 2008
Water and Sanitation Agency, FDA, Faisalabad
Two weeks Training on Geographical Information System (GIS) at Water and
Sanitation Agency, FDA, Faisalabad.

30 January 2006 to 11 March 2006


Water Management Research center University of Agriculture, Faisalabad
Four Weeks Training Course on Water Course Improvement and Construction at
Water Management Research Center, University of Agriculture, Faisalabad

PROFESSIONAL QUALIFICATION:
Auto CAD (2003)
From: Punjab Board of Technical Education, Lahore
Grade: A+

Material Technician (2006)


From: Punjab Board of Technical Education, Lahore
Grade: A+

EDUCATION:

MBA Final Semester (Continued)


From : University of Agriculture, Faisalabad

Bachelors of Technology (Civil) 2008


From : UET Lahore
Division : 1st

Bachelors of Arts (B.A.) 2007


From : Punjab University, Lahore
Division : 2nd

F.A. (2004)

56
From : BISE,Faisalabad
Division : 2nd

3-Years Diploma of Associate Engineering (Civil) (2003)


From : Punjab Board of Technical Education, Lahore
Division : 2nd

Matriculation (1999)
From : BISE,Sargodha
Division : 2nd

INTERESTS AND SKILLS:


Brief description of my skills in computer field includes;
Management
AutoCAD (2D & 3D)
Communication
Internet

57
RESUME
CAREER GOAL
A management position where education and experience combine with
positive interpersonal skills initiative and capacity to motivate others can be utilized for
mutual benefits.

PROFILE
Skilled in applying a logical common sense approach to seek practical solutions
A self motivated, possessing a high degree of professional integrity
PERSONAL INFORMATION

NAME Samreen Khalid


DATE OF BIRTH 06-01-1989
GENDER Female
ADDRESS Colony Sapphire Fibres LTD. No. 3, Ferozewattoan, Distt. Sheikhupura
RELEGION Islam
NIC NO. 35404-7489590-0

ACADEMIC QUALIFICATION
Degree/Qualification Year University/Board Division/grad Main subjects
e
MBA(Finance) 2010 Agriculture University Continue Finance,
4th (Last) Semester continue. Faisalabad

B.COM 2008 Punjab University Lahore 1st Division Accounting


FSC 2006 Lahore Board !st Division Pre medical
Matriculation 2004 Lahore Board 1st Division Science
WORK EXPERIENCE

2 Months Internship program In FAYSAL BANK LIMITED


Faisalabad.
PROJECTS DONE
Financial statement analysis of Textile Company (Sapphire Fibre Limited)
SKILLS
Good communication Skills
Good typing Speed
MS Word, Excel, Power Point and SPSS

HOBBIES & INTEREST

58
Reading books on different topics
Internet surfing
REFERENCES
References will be available on request..

RESUME
CAREER GOAL
A management position where education and experience combine with
positive interpersonal skills initiative and capacity to motivate others can be utilized for
mutual benefits.

PROFILE
Skilled in applying a logical common sense approach to seek practical solutions
A self motivated, possessing a high degree of professional integrity
PERSONAL INFORMATION

NAME Samreen Khalid


DATE OF BIRTH 06-01-1989
GENDER Female
ADDRESS Colony Sapphire Fibres LTD. No. 3, Ferozewattoan, Distt. Sheikhupura
RELEGION Islam
NIC NO. 35404-7489590-0

ACADEMIC QUALIFICATION
Degree/Qualification Year University/Board Division/grad Main subjects
e
MBA(Finance) 2010 Agriculture University Continue Finance,
4th (Last) Semester continue. Faisalabad

B.COM 2008 Punjab University Lahore 1st Division Accounting


FSC 2006 Lahore Board !st Division Pre medical
Matriculation 2004 Lahore Board 1st Division Science
WORK EXPERIENCE

2 Months Internship program In FAYSAL BANK LIMITED


Faisalabad.
PROJECTS DONE
Financial statement analysis of Textile Company (Sapphire Fibre Limited)
SKILLS

59
Good communication Skills
Good typing Speed
MS Word, Excel, Power Point and SPSS

HOBBIES & INTEREST


Reading books on different topics
Internet surfing
REFERENCES
References will be available on request..

Maira Gull
OBJECTIVE:

To work in a challenging and growing organization to make full use of


capabilities and the professional skills to grow in hierarchy of organization.

PROFILE:
Name: Maira Gull
Fathers name: Khawaja Amjad Gull Sikka
Date of birth: 25 jan,1988
N.I.C #
Religion: Islam
Marital status: single
Domicile: fsd
Nationality: Pakistan
Language: Urdu
Contact #
Address: peoples colony no 1,fsd House #32-C

PROFESSIONAL QUALIFICATION:

MBA finance (to date)


From: agriculture university of, Faisalabad
Final semester

60
B.COM (2008)
From: university of Punjab
Division: 1st

I.COM (2006)
From: B.I.S.E
Grade: A

MATRIC (2004)
From: B.I.S.E
Grade: A

INTERESTS AND SKILLS:

Browsing
Reading
Web development
Microsoft office XP

61