Introduction

History of Borjan
A company names as Prestige was the launched in 1986 it used to sell ladies and men’s shoes. On 1 st

march Prestige opens stores in major Pakistan cities while its headquartered in Lahore. In the first two
years, the response was rapid, and customer feedback on the product’s quality and product’s service
exceeded expectations and strengthened their confidence in policy. Keeping all this in mind, the
company name was changed and named as Borjan Private limited. Borjan manufacture men’s and lady’s
footwear. They manufacture shoes in their own manufacturing department. Borjan is aiming to provide
great shoes at a reasonable price. Here, innovation and technology are combined with skilled hands and
old-fashioned work ethics. Borjan is one of Pakistan's best-selling fashion footwear chains, known for its
stylized fashion products and outstanding customer service, with 48 outlets in 36 cities in Pakistan.
Borjan offers a wide range of fashion footwear for men and women. Borjan puts a lot of effort into
product development Exclusively designed launch count is highest in Pakistan Borjan has a theory about
shoes, the more shoes you buy, the fewer shoes you have, because you have countless outfits, and each
outfit requires you to have a perfect pair of shoes to complete the look.
Mission Statement
We promise customer care and peace of Mind.
Vision of Borjan
Borjan aspires to become a leading organization not only in Pakistan but also its neighboring nations so
that our brands & utility products become the first choice of our consumers to make them look and feel
smart. Borjan aims to be true to its Positioning line of ‘Fashion Forward’ and we not only aim to provide
the very latest in Fashion but also provide the best possible shopping experience, excellent customer care
services and peace mind to our consumers. We intend to continue to provide the most modern and
comfortable footwear to our consumer
Business Analysis
Company Name:
Borjan (Pvt.) Limited
Business Type:
Manufacturer
Product/Service
Gents & Ladies shoes manufacturer
Total Annual Sales Volume:
US$5 Million - US$10 Million
Market Share
Borjan over all in Pakistan cover round about 49% of market share.
Growth strategy:

Exporting:
Exporting offers the prospect of new markets, more sales, better profits and a greater spread of customers.
A clear strategy makes it much more likely you will succeed.
Your export strategy should be based on an assessment of your own position and research into promising
opportunities. You will need to think about how to reach new customers and finance your exports, as well
as making sure you understand legal and tax issues.
Exporting is an exciting and dynamic activity, which if undertaken professionally, can reap rewards for
both the exporting company as well as the eventual overseas customers. Today global communication and
access to the internet has opened up speedy means of communications that did not exist just a few years
ago ñ this has led to considerable opportunities becoming available for export marketing, corporate
growth and profitability. Exporting can, therefore, offer considerable opportunities for many companies in
the KSA and is an important factor to consider when looking at expanding local markets and also
developing business opportunities and exposure to international markets. In the current business
environment, exporting is a major mechanism to grow business for many companies while for others,
exporting offers the advantages of a larger market with greater economies of scale ñ as the international
market is considerably larger and more competitive than the domestic market and growth rates in many of
these markets far outpace the local market levels. Exporting can also provide some companies with
opportunities to develop new products for the local market, as it is a learning experience that can benefit
the country while at the same time generating greater profit opportunities for the company itself. Meeting
and beating competitors abroad can help a company to keep its edge over local competitors and exporting
can, therefore, be a very profitable business. But there are real costs and risks associated with it, which
must be balanced and evaluated against corporate needs and policies. Export success can be achieved by
having good products to sell at a reasonable price, an organizational structure that optimizes corporate and
staff performance, and an awareness of the exporting rules, and regulations and any trade barriers in each
of the targeted export countries.

Franchising:
Growth through franchising is a tried and tested method for bringing in more revenue and creating wider
market base. An alternative to opening additional directly controlled store or hubs for operations, it is
more profitable and saves from the blues of the management problems. Growth through franchising
enhances the brand value and generates more revenue essential for an enterprise. Growth through
franchising is the preferred business model in the retail and restaurant sector all over the world. The
outstanding success of companies, such as Burger King, Wendy’s, McDonald, Blockbuster Entertainment
and Starbucks, are attributed to their growth through franchising strategy.
Typically, a franchising company (a ‘franchisor’) licenses its Trademarks, Copyright, know how and
established business model to ‘franchisees’. These franchisees adopt that business model, including the
brand and then operate in new markets. The franchisor’s business model changes subtly to a “support”
rather than “operational “ model and market share, brand recognition, and revenues grow as a result.
Franchising is a long term partnership and companies who wish to be successful must recognise the true
nature of the relationship, and the responsibilities on each partner.
Typically a franchisee will pay a franchisor:
a license or purchase fee
a percentage of the sales or profits
an annual fee
In return, the franchisees would typically receive:
initial training
operations manuals
a start-up package
a ‘territory’
on-going support
national and/or regional marketing support (including possibly leads and opportunities)
a trademark license
Depending on the type of franchise, the arrangement may also include provision of product, raw materials
or supplies.

Licensing:
Licensing is a business arrangement in which one company gives another company permission to
manufacture its product for a specified payment.
Licensing generally involves allowing another company to use patents, trademarks, copyrights, designs,
and other intellectual in exchange for a percentage of revenue or a fee. It’s a fast way to generate income
and grow a business, as there is no manufacturing or sales involved. Instead, licensing usually means
taking advantage of an existing company’s pipeline and infrastructure in exchange for a small percentage
of revenue.
An international licensing agreement allows foreign firms, either exclusively or non-exclusively, to
manufacture a proprietor’s product for a fixed term in a specific market.
To summarize, in this foreign market entry mode, a licensor in the home country makes limited rights or
resources available to the licensee in the host country. The rights or resources may include patents,
trademarks, managerial skills, technology, and others that can make it possible for the licensee to
manufacture and sell in the host country a similar product to the one the licensor has already been
producing and selling in the home country without requiring the licensor to open a new operation
overseas. The licensor’s earnings usually take the form of one-time payments, technical fees, and royalty
payments, usually calculated as a percentage of sales.
Naturally, these best in class programs are in the best position to grow and gain from the full benefits of
licensing:
Brand Building
Lower investment
Idea generation and filtering
Increased awareness and impressions
Increased penetration of core segment
Geographic and demographic footprint expansion
Better, more consistent measurement
Brand Monetization
New, more predictable revenue streams
Expertise sourcing a quicker time to market
Brand Protection
Protects trademarks in new channels and product classifications outside core product IC class

Joint Venture:
A strategic joint venture is a business agreement between two companies who make the active decision to
work together, with a collective aim of achieving a specific set of goals and increase their respective
bottom lines.
Through this arrangement, the companies effectively complement one another’s strengths, while
compensating for one another’s weaknesses. Both companies share in the returns of the joint venture,
while equally absorbing the potential risks involved. Strategic joint ventures may be seen as strategic
alliances, though the latter may or may not entail a binding legal agreement, while the former does.
Unlike mergers and acquisitions, strategic joint ventures do not necessarily have to be permanent
partnerships. Furthermore, both companies maintain their independence and retain their identities as
individual companies, thus allowing each one to pursue business models outside the partnership
mandate.There is a multitude of reasons why two companies might choose to enter into a strategic joint
venture. For one, strategic joint ventures let companies pursue larger opportunities than they could
attempt autonomously. For example, such partnerships let companies establish a presence in a foreign
country or gain competitive advantages in a particular market.
To cite a more specific example, strategic joint ventures have helped many companies enter emerging
markets that would be otherwise difficult to break into, without the benefit of local intelligence and
connections to on-the-ground operatives in the region.
In such arrangements, one company typically contributes more to the operational costs, while the other
company contributes know-how and operational experience. The share of the venture owned by each
company largely depends on their individual contributions. But the most successful strategic joint
ventures are those where each founding member firm winds up with an equal stake.
Strategic joint ventures may also help companies achieve greater efficiencies of scale by combining assets
and operations. They also may help companies access unique skills and capabilities that they would
otherwise be unable to develop themselves. Joint ventures also let the companies involved mitigate the
risks for investments or projects, while helping each one gain access to the other’s technology, increase
revenues, expand their customer bases, and widening product distribution channels.
Acquisitions:
Growth through acquisition is one of the strategies for diversification and market positioning. Practiced
by successful companies at all levels, growth through acquisition helps in securing more market share,
man force and revenue. A tool of market consolidation, it offers the acquiring company a chance to
consolidate its hold and keep market dominance. An important principle of market economy, growth
through acquisition not only propels a company to a major position, but also earns rich dividend for share
holders of the acquired company. Its importance is demonstrated from the fact that nowadays various
companies are on acquisition spree worldwide to grow their market revenue.
The rising importance of growth through acquisition is demonstrated from the fact that it has decimated
political and geographical boundaries and become a worldwide phenomenon. Growth through acquisition
refers to acquisitions of one company by another. It can be merger or taking over of control. Growth
through acquisition is categorized into three areas, upstream, downstream, or lateral. In upstream
acquisition, a smaller company in order to ensure market consolidation seek merger with a bigger
company operating in the same field on the basis certain conditions. The aim of such merger is to secure
employees, ensure greater investment and consolidate market forces. In this growth through acquisition
strategy the policies made by consent prevails and both work as one entity. In a downstream acquisition
process, one firm acquires the other to expand its business. In such cases usually, a bigger company
acquires the smaller ones. This merger was through purchase of shares and the management and the
control passes over the acquiring firm. No doubt this helps in growth through acquisition, but the
acquiring company only prevails and the employees, market, brand name and even existence of the
acquired company is decided by the former. The growth through acquisition strategy also recognizes
lateral acquisitions. The aim of such merger is common objective to pool resources.
as the process of acquisition begins. It can be in different ways.
Direct communication is established and negotiations begin on terms and conditions. If the board of
directors or owners agrees on finances, conditions and need for merger, both publicly declare the
adherence to growth through acquisition.
If both companies disagree and the candidate refused to budge, the bigger company as its growth through
acquisition strategy can offer to purchase the market shares from its stake holders openly. Once it gains
51 percent of share, it automatically controls the management decisions and press for merger.
The growth through acquisition strategy is always prone to problems. Absorbing a new firm poses many
barriers, such as lack of due diligence, poor matchmaking, miscalculations during the transition, and
conflict between the management and the workers. Newly acquired human resource can be reactive to
harsh decisions of the new management and remain apprehensive of the objective of growth through
acquisition strategy. The acquired clients usually refrain from committing new projects unless persuaded
and their confidence is gained. Variations in the style of working may create golf between management
and workers or clients and the acquiring firm. Sometimes sellers may use the finances acquired from the
takeover to prop up new competitors or help the existing ones. These problems can be taken care of by
having prior agreements and astute analysis of risk factors.

Green-Field Development :
Greenfield Development, or sometimes simply referred to as a greenfield, could refer to expansion
strategy or a specific project in which a REIT manager decides to develop a new property or development
from the ground up. The name is derived from the supposedly green patch of grass that existed in the plot
of land before it's being developed.

The alternative to Greenfield Developments as a growth strategy would be property acquisitions. This
involves the buying over of already existing properties as a means of growing the REIT's portfolio. When
the buying of an under performing or distressed property (in the effort to turn the property around) is
involved, it has also been referred to in some investment literature as a Brownfield Development.
When a REIT decides to expand its property portfolio, it will usually adopt either one of these 2
strategies. Which is the more beneficial strategy for a REIT? That will depend largely on prevailing
economic conditions including property valuation, government regulations, construction costs and interest
rates. During times of high construction costs, acquisitions would generally be a safer bet over greenfield
developments. However when recovery costs are relatively low in comparison to property valuations, it
may make more sense to build from the ground up.

Cross border REITs taking advantage of low interest rates in the host country, while enjoying cheaper
construction costs abroad, have been known to favour greenfield developments as an expansion strategy
over property acquisitions.

Production Sharing:

Sharing different stages of the manufacturing process with producers in different countries has many
benefits. For example, it can result in lower manufacturing costs while increasing your level of global
competitiveness.
Importantly, this process can help retain jobs that would have been lost due to competition and even grow
them in capital-intensive manufacturing, product development, design, and marketing related activities
here in the United States. During periods of slow economic growth, these advantages are worth
considering.
Production sharing, also known as co-production or cross-border manufacturing, allows firms anywhere
in the world to complement each others’ strengths by providing access to unique technology, raw
materials, specialized intermediate inputs or labor skills in a way that creates greater product value.
Since demand has become homogeneous across borders, producers of major consumer goods today can
use similar marketing concepts and approaches to reach the entire Western world. Thus, globalization
presents both a major threat and a major opportunity, particularly in developed countries. Industries and
companies that previously enjoyed relatively safe home markets now find themselves faced with the
possibility of new competition from companies that had never attempted to market products in their part
of the world. Globalization has made worldwide competitiveness critical for survival. However, the
conquest of global markets will be the reward of the most efficient producers.
To achieve worldwide competitiveness, many managers would quickly move any factory anywhere in the
world where they could get cheaper or better materials, labor, and vendors, and where laws and
governments were more congenial. More and more manufacturers make parts and subassemblies in
different areas of the world and then assemble the complete products elsewhere and sell them in global
markets. The location of competitive producers changes constantly, and factories move repeatedly to find
the most favorable locations.
The emergence of overseas assembly activities was a natural result of growing worldwide competition in
the manufacturing industry in the postwar period. As Western Europe recovered and Japan quickly
became an important industrial power, the United States was the first to face new competition because its
wages were so high relative to those throughout the rest of the world. As domestic labor-intensive
production became less and less economical, U.S. firms began breaking production into stages and
carrying out the labor-intensive processes in countries where wages were low. In response to essentially
the same conditions, the industrially advanced countries of Europe imported low-cost laborers, and Japan
turned to automation when wages rose.

TurnKey Operations:
A Turnkey operation is defined as a product or service concept that is complete, installed and ready to use
upon delivery or installation. The product or service is then leased or sold to an individual to run as
his/her own venture. Manufacturers of industrial plants like electric generating plants, cement plants, oil
refineries, and many others usually make their sales on this basis. In the computer industry and the Web,
it refers to a system or software package that has been built, installed or supplied by the manufacturer
complete and ready to operate. It is a system that can be easily set up and operated “right out of the box.”
In transactions like these, the seller agrees to put up the plant or business, with his own financing and
does not collect anything from the buyer. He (the seller) is guaranteed to be paid by the buyer upon
delivery of the fully operational installation. This guarantee may come in the form of a Letter of Credit or
bank guarantee opened by the buyer in favor of the seller or the buyer keeps his money on escrow with
the condition of the turnkey agreement.
Applied to franchises, turnkey operations means just the same. If you buy a franchise under this
agreement, it means that you will pay the seller upon the completion of the project.
Please note however that turnkey agreements are very complicated because of uncertainties on both sides.
The seller has to protect himself to be able to collect upon delivery while the buyer has to make sure that
he is not buying a “lemon”. This gets the financial and the legal institutions involved because everyone
wants to protect him or herself.
Management Contract:
A business or an organization will hire a management company to perform specific tasks. The
management company will receive a compensation for the work. Your organization might hire a
management company to look after its marketing and under the contract, the management company
would perform marketing on your company’s behalf and receive a fee for doing so.
Under the management contract, the operational control of the enterprise or the specific department would
be in the hands of the management company. Therefore, the management company you would choose,
would be able to make all the operational decisions regarding the function you specified, i.e. marketing.
Your contract might limit the excess of the control, but in most instances, the contract includes all
operational functions of that specific enterprise or department. The compensation for the management
might be decided based on performance or it can be a set sum decided between you are the management
company. You might provide the company a fixed monthly remuneration or a fixed percentage of the
profit. On the other hand, your company might pay a specified sum based on certain performance metrics
the management company is able to meet.

BOT Concept:
Under a build-operate-transfer (BOT) contract, an entity—usually a government—grants a concession to
a private company to finance, build and operate a project. The company operates the project for a period
of time (perhaps 20 or 30 years) with the goal of recouping its investment, then transfers control of the
project to the government.
BOT projects are normally large-scale, greenfield infrastructure projects that would otherwise be
financed, built and operated solely by the government. Examples include a highway in Pakistan, a
wastewater treatment facility in China and a power plant in the Philippines.
In general, BOT contractors are special-purpose companies formed specifically for a given project.
During the project period—when the contractor is operating the project it has built—revenues usually
come from a single source, an offtake purchaser. This may be a government or state-owned enterprise.
Power purchase agreements, in which a government utility acts as offtaker and purchases electricity from
a privately owned plant, are an example of this arrangement. Under a traditional concession, the company
would sell to directly to consumers without a government intermediary. BOT agreements often stipulate
minimum prices the offtaker must pay.

Justification:
1 : looking at the import laws of kuwait , strategy to export items from pakistan and sell them over there.
in the beginning it would suit the business to grow , making the quality of item to be sold be the same in
both countries. as discussed above, if we look at the model through light of that discussion it seems to be
a good option to export items form pakistan to kuwait in the start of this business scale cycle,
Exporting will be Considered Accepted strategy.
2 : licensing , it is also a good strategy but once the product or business operations or functions
successfully in kuwait , in the beginning it would have effects on brand name . either positive or negative.
keeping in mind the above discussion and comparing it with the current scenario. licensing does not looks
suitable in the start of business in kuwait.
Licensing will be Considered Accepted strategy but for Future use.

3 : Franchising , Good option to give out a franchise to a potential investor , sharing some profit margin .
yes you will be still needing to export your product from pakistan to kuwait . if we consider this strategy
then the first one of directly exporting and operating business to kuwait suits better than franchising. but
for long term it is considered good strategy.
Franchising will be Considered Accepted strategy but for Future use.
4 : Joint venture , another good option , but still we will be needing to export our products , we will be
sharing profits risks ,investments
Joint venture will be Considered Accepted strategy .
5 : Acquisitions. good strategy to take over a declining business and remodel it , but still question arises
that we will be introducing our own SOPS and our own Products , then why not starting it from scratch.
pros will be that we will be getting hold over the acquired business customers.
Acquisitions in this case is not a good strategy.
6 : green field development, the question is why to purchase property when you can rent it , good business
these days try to rent out property instead of bounding capital in purchasing property.
green field development in this case is a bad strategy.
7 : Production sharing , most of the items sold in kuwait are imported from china or from USA and other
countries , but if you get some sharing production with Slb Wireline Shop , or Burgan Shoe
Manufacturing Company or Tango International Group ,
8 : Turnkey opreations , a good option to get turnkey project , helps in saving time ,all you have to do is
give your requirements ,and SOPS and you will have it ready.

Turn key is a good option for starting , it will share stress and time also some money.
9 : Bot Concepts , discussed above looking at the current scenerio Bot concepts do not look favorable for
this business near on but in future it might be considerd ,
10 : Management contracts, looks favorable strategy in operations. Acceptd while considering opreations
of business , to avoid risks associated with opreations of business,

Company to do business with :

1 : Slb Wireline Shop

2 : Burgan Shoe Manufacturing Company
3 : Tango International Group

Culture :
Most of the population in kuwait is Indian , Pakistani and Bangali. as all 3 nations share same cultural
values so Culture same as pakistan can be observed over there in the targeted market,
Laws:
Limited liability companies in Kuwait are identified by have the initials 'WLL' after their name ('With
Limited Liability). The transfer of parts in a WLL was an arduous process under the 1960 Law and
required the following: A signed deed of amendment before the Notary Public of the Ministry of Justice.
Tax:
As such, there are no personal taxes, not even for expats working in Kuwait. The only ones liable to pay
income tax are foreign companies working in Kuwait. The corporate income tax rate for foreign
businesses currently is a flat 15%
Import Laws (kuwait) :
Import licences are required for most private imports and are issued by the Ministry of Commerce and
Industry. Most fresh foodstuffs are exempted. Importers must be Kuwaiti nationals, registered with the
Kuwait Chamber of Commerce and possessors of a general import licence.

Market analysis:
things that we need to be careful about market is to keep the price low and quality high of the product and
to be fashioned .
Market is very big as there are 8250000 indians living and 750000 pakistanis living in kuwait , along
with almost 900000 bengalis.

vision in 1 year:
Yes the market is so large and less competitive that borjan could easily enter th;e market within 1 year
Competitors :
aldo
fendi
local market sellers
market is in a need of good brand but with low price range , most of brands over there are high priced and
do not suit the price range of our targeted market,

Refrances:
1 : How Turnkey Businesses Work. (2003, November 25). Retrieved from
https://www.investopedia.com/terms/t/turnkeybusiness.asp
2 : Kuwait - Import Requirements and Documentation. (n.d.). Retrieved from
https://www.export.gov/article?id=Kuwait-Import-Requirements-and-Documentation
3 : Martin. (2019, September 24). Management Contract ? Definition, Pros and Cons, and More.
Retrieved from https://www.cleverism.com/management-contract-definition/
4 : How Build-Operate-Transfer Contracts Work. (2006, August 2). Retrieved from
https://www.investopedia.com/terms/b/botcontract.asp
5 : Globalization of Industry Through Production Sharing | Globalization of Technology: International
Perspectives. (n.d.). Retrieved from https://www.nap.edu/read/1101/chapter/11#88
6 : Doing Business in Kuwait. (n.d.). Retrieved from
http://www.mideastlaw.com/middle_eastern_laws_kuwait.html
7 : Manzella, J. (n.d.). Production Sharing Can Reduce Your Costs and Increase Your Global
Competitiveness. Retrieved from http://www.manzellareport.com/index.php/manufacturing/178-
production-sharing-can-reduce-your-costs-and-increase-your-global-competitiveness