Introduction:

Dhaka, the capital of Bangladesh, has become overburdened with private cars. But the fact is that
we do not have a single car wash factory that can make these cars look clean and clear. Most of
us usually do not have enough time to waste for the maintenance of our cars. The result is that
our cars look decayed as days go by. As we run our cars in the city of Dhaka, one of the busiest
megacities in the world, where all the roads are not well constructed and dirt keeps flying
everywhere, these cars lose its efficiency and look filthy day by day. In such cases, our smart
car wash company will provide a quality, efficient and automated car wash for our customers
which will worth their expense. Washing a car’s interior and exterior will take only 30-60
minutes which will be a savior of time for the customers. That is the reason why, we have opted
for opening a car wash company.

The present situation in this industry is that we have a limited number of filling centers and auto
servicing centers which provide a manual car washing service with some sprays on them and
washing with water. And of course, the efficiency lacks. For this reason, we think it will
profitable and helpful for the society to open our Smart Car Wash Company which will work
as the complete bathe for the cars.

Company Profile:
A matter of fact is that there is no real automated car wash company in Bangladesh literally.
Smart Car Wash is just an approach to start this new automated car washing business in our
country. It is a strategic alliance business that we have set up with Nabila Auto Servicing Center
situated at boshundhara. In exchange we will share their land. Again they are benefitted in a way
that a value is added to their service through our car wash. Most importantly, they are sharing
profit with us. It is needed to mention that, we are a separate entity aiming to get incorporated as
our revenue goes up in the following years to come. The servicing center will be promoting our
services to the customers. So it can be said that primarily they are our suppliers. We will start our
business with two-bay-car wash, indicating that two cars can be washed at a time.

Mission statement:

“We make cars shining with brightness forever”

Vision:

Smart Car Wash Company has a vision to be the market leader in the Southeast Asia by
branching out through different zones of Dhaka to different cities in Bangladesh.

Goal:

Smart Car Wash Company has a goal to stand out as a market leader in the Southeast Asia in
the car wash industry.

Objectives:

1. Smart Car Wash Company has planned to branch out throughout Bangladesh to
increase customer convenience.

2. We are determined to bring modern car wash equipments with more bays for customer
satisfaction.

3. We will increase our promotion to stamp our existence as long as we get incorporated.

4. We will build a compatible workforce within our company to provide quality service.
Business Philosophy:

The important thing in our business is we are saving the all important time for our working
people by washing their car efficiently. We are providing effective car wash to increase the
durability of cars that will look beautiful on the roads

Business Description:
Smart Car Wash Company is the first car wash service providing company in Bangladesh. We
are doing our business with the Nabila Auto service Center. We have created a strategic alliance.
Our promotion is done by our partner. Although we will share our profit, the Smart Car Wash
Company is a separate entity. Our company has three departments. Those are- production,
marketing and finance. We have one managing director and two board of directors one from
Smart Car Wash Company and another from the allied service center.

Infrastructure

We had to consider couple of factors before choosing this business. As we know, we are
strategically alliance with a auto service company for the purpose of getting the sufficient land
we needed to establish the house for our machines. We had to build a machine room where the
machineries will be kept and where the cars will get washed as well. The construction stands on
a area of 1800 sq ft and beneath the machine room there is 80ft deep water tank. We had to go
through a soil test of the land before the construction according to the law of our country. And
also, we hired architectures to design the construction for us and approve it from RAJUK. We
needed electricity to run the machines and as it consumes a lot of electricity, we had to take
special permission from DESA. The blueprint of the construction is given below:
Equipments:

As this is a complete new business in our country, we had to depend on foreign suppliers for the
machineries and also for their maintenance. We have contracted ‘Dultmiere Sales” for the
equipments and according to the contract, they will provide us technical help for two years. As
the blueprint in previous page suggests, we needed machineries for two departments.

1. For Covered Bay

2. For Pump Room

The machineries’ names are given below:

Covered Bay

• Stainless Steel Coin Meter with Timer, Rotary Switch & Heat Tape (If Required).

• 360 Degree Ceiling Boom of Stainless Steel & Aluminum Construction.

 • Trigger Spray Wand with Swivel, Nozzle, Gun Hose & Wand Holder.

• Colorful Bay Instruction Signs.

• High Pressure Run Lines from Pumps to Ceiling Booms.

• Stainless Steel Mat Holders (4 per bay

Pump Room

• Pumping Station with Cat, Hypro, General or Giant Pumps.

• Pre-wired Electrical Panel with Starter, Transformer, Hour Meter.

• Energy-Efficient Instantaneous Water Heater (1 per bay).

• TEFC Motors, Single or Three Phase.

• Stainless Steel Wax & Soap Solenoids.

• Balanced Pressure Relief Valve for Pressure Control.

• Weep System for Freeze Prevention.

• Heavy-Gauge, Steel Frame with Baked Finish or Stainless Steel Frame and Height
Adjusters.

• Entire System is Pre-Plumbed and Pre-Wired.

• Standard Pumps Rated to 3.5 GPM @ 1300 PSI or 4.0 @ 1500 PSI

All these machineries provide us the service we provide to our customers.

How we provide service:

As we are novice as entrepreneurs we have certain resource constraints. That is the reason why,
while starting up, we are unable to bring all the modern equipments needed to make our car wash
perfectly equipped. However, we tried our best to bring all the equipments needed to serve our
core purpose. As we have plans to expand our business, we will be able to make our Smart Car
Wash more than equipped with our projected profit. The procedure of our service been provided
is given below-

• As we have a lacking of conveyer, the attendant will instruct the driver to drive at a
certain limit and refraining from steering.

• The car wash starts with pre soaks applied through special arches. It includes different
levels of PH. (acidic and alkali). It also depends upon the concentration level of different
chemicals used. Because it needs different types of soaks in different seasons with
different level of dirts in the cars. It also depends upon the external temperature.

• Next the car will encounter tire and wheel nozzles. It will remove brake dust.

• The next arch will be the wraparounds which are made of a soft cloth. It will rub the front
of the bumper, after washing the sides; will follow across the rear of the vehicle cleaning
the rear including the license plate area.

• Afterwards there will be a tire brush which will scrub the tire and the wheels.

• Afterwards there will be second set of wrap arounds. This includes the areas with high
pressure water supply because it deals with those areas which are hard to reach.

• Next there will be a tire spinner, high pressure nozzles angled specifically to clean wheels
and tires.

• After the several wash stations the vehicle will go through triple foamers, usually red,
blue, and yellow, although colors can be customized with higher end chemical suppliers.

• We have multiple rinse stages, usually offering a protestant as an option.

This is the in bay procedure of the Smart Wash Company.

Management Overview:

Board of Directors
(2 Persons)

Managing Director

Operation Manager Marketing Manager

Operation & Maintenance

Promotional Supervisor
Supervisor

Worker 1 Worker 2

Finance Manager

Accountant
This is the organogram of our company. As we have mentioned earlier, the company is an
alliance with Nabila Auto Servicing limited, the organization hierarchy of our company consists
members from both companies. Allocation of duty among the members in the hierarchy is given
below:

Board of Directors:

There are two members in the board of directors. One member is from our part and the other one
is from Nabila Auto Servicing Limited. The members hold responsibility for proper
implementation that both the companies agreed upon. Only these members in the alliance have
direct contact with our suppliers and the division profit and maintenance costs are handled by
them.

Managing Director:

This position is hold by the member on our part which is Smart Car Wash Company. This
member holds the maximum number of responsibilities in the organization. All the department
heads are responsible to report to the managing director.

Operations Manager:

This manager is responsible for taking account of how the machineries is running and report to
the managing director for the problems that the workers are facing.

Finance Manager:

The manager is responsible to look over the revenues earned from providing service to the
customers. Finance manager will make accounting decisions on the basis of the report presented
by the accountant. Any extra costs to be paid by the company needs to be approved by the
manager.

Marketing Manager:

Our company depends solely on our partner for the advertisement we need for our service. As a
result, we have chosen to take the Marketing manager of our partner company to look over the
marketing matters. Marketing operations in our company requires providing leaflets to the
newspapers and through banners. The manager takes a look at this simple matter which is
supervised by promotional supervisor.

Operations Supervisor:

The supervisor is actually the expertise who has little bit of knowledge about operating the
machines in our company. So he can also be called as technical supervisor as well. He also looks
over the workers whether they are performing efficiently.

Workers:

As the name suggests, workers should be the industrious persons in the organization. But the fact
is a bit different. As we provide a service which is totally automated, the workers have very little
thing to do. So we decided not to take extra workers for the operations rather we pick them from
our partners whenever any customer comes to take the service.

Accountant:
The duty on the accountant are mainly bookkeeping the regular transactions and keeping account
of the regular needs of the operations. Generally he reports to the finance manager about the
performance over the periods and make suggestions.

Promotional Supervisor:

The person assigned with promotion of the company comes from our partner and his job is
basically to promote us when customers come to our partner for auto service. He also selects the
area where we should concentrate on doing our promotional activities through newspaper leaflets
and banners.

Communication Overview:
To make a business successful, the communication within the organization is very important. In
our company every one of us knows each other very well and the relationship is good outside the
company as well. As a result the intensity of being formal is a bit less here. Still as this is an
organization, the professionalism should remain strong among the executives. So we maintain
the formality of communication within the organization which is also important for a good image
to the outsiders. Generally we have classified the communication process into different segments
keeping in mind the hierarchy we have formed.

Internal Communication:
It is the communication process we follow inside the organization. As the regular operations of
the company require us to communicate continuously, we tried to follow an established way of
communication but the space for improving the communication process is always there.

Operation Management:

Direction of
Formality
The diagram above reflects the communicators under the operations department and the direction
of authority and formality in the department.

• The workers are not well educated so any means of formal communication will not work
with them. As a result the communication process between workers and the Operations &
Maintenance Supervisor is purely informal. Generally they inform the supervisor
whenever the machine needs to be adjusted or in case of any problem. The workers
reports on daily basis about the number of customers through oral communication.

• As we know, Operations & Maintenance Supervisor is the technical supervisor as well,

this person generally reports monthly about the situation the machines are going through
on a short report. This is purely formal and direct in nature. The needs are mentioned
their and incase of any contingency needs, the supervisor immediately let the Operation
 manager through phone calls or face to face but on the monthly report there goes the
mention about the adjustments been made on the occasion.

• Operations manager is part the managing department and his duty is to supervise
Operations & Maintenance Supervisor and report about the progress to the managing
director. Generally there is a managers meeting on monthly basis and the managers
submit the progress report about the operations that follows a formal but direct format.

• Managing Director holds meeting with the board of directors every month. The meeting
has a fixed agenda. First, the members present, checks whether last months’ operational
projection was meet. Secondly, they analyze whether the machineries need any
improvement or adjustments. Lastly, they set projection for the operation for the next
month.

Finance Management:

The finance management looks over the financial performance of the organization and so rightly
proper communication is necessary.

• Accountant of the company provides every day transaction report to the finance manager
on daily basis. This is a routine operation report informal and direct in nature. He also
submits an audit report quarterly with a detail report that provides how the company
performed financially and also suggests some courses of action on the basis of feedbacks
from workers and customers mainly.
 Direction of Formality (less
intensity)
• Finance manager is part the managing department and his duty is to supervise the
accountant and report about the progress to the managing director. Generally there is a
managers meeting on monthly basis and the managers submit the progress report about
the operations that follows a formal but direct format.

• Managing Director holds meeting with the board of directors every month. The meeting

Direction of Formality
has a fixed agenda. First, the members present, checks whether last months’ operational
projection was meet. Secondly, they analyze whether the machineries need any
improvement or adjustments. Lastly, they set projection for the operation for the next
month.

Managin
g
Director

Marketing Management:

Marketing Manager

Promotional Supervisor
 • Promotional Supervisor reports to the marketing manager on quarter basis about eh
progress of the retention of the customers from our partners and suggests if there is any
strategy we can apply for promoting our service. This is basically an unsolicited proposal
that the marketing manager evaluates over it feasibility.

• Marketing manager has been given the power to approve any promotional activity needed
for the company. So he just reports the managing director for the approval of the money
needed for the activity. He submits the proposal report of the Promotional Supervisor
along with a recommendation. He also provides a routine report mentioning the money
needed.

• Managing Director holds meeting with the board of directors every month. The meeting
has a fixed agenda. First, the members present, checks whether last months’ operational
projection was meet. Secondly, they analyze whether the machineries need any
improvement or adjustments. Lastly, they set projection for the operation for the next
month.

External Communication:
 1. In the short run, as we are doing business in partnership, our partner will be working as
our advertisement. In this way we will keep communication with our customers.

2. But in the long run our marketing manager will come into play as we are going to be
incorporated. Then we must do direct marketing through our promotional manager. We
have to keep direct relation with our customers. The promotional manager will be
responsible for posting advertises on the newspaper and distribute leaflets.

3. We also have to keep contact with our suppliers for the machineries we need in future
and also for any technical help in case our current machines face any technical problems.
For the purchase of the any machines we just have to contact with them through their
official website and order the machines to our office with an online payment basis. And
for any technical help we mail them to their email address and we are informed right
away.

Financial Overview:

In this segment we will discuss how we managed our capital investment on the
machineries and construction and also give the readers an idea about our cost, profit and
loss account.

Capital Cost
Land Cost: According to the terms we agreed upon making the alliance with our partner,
we have to pay 20,000tk rent for every month along with 100,000tk initial advance. We
think this more than reasonable for us as a starter business as it would be very hard to
afford the money to buy such huge space.

Building Cost: As our machines are made for In-bay service, we had to build a separate
building to accommodate the machine used in our service. We, in total, used 1800 sq. ft
of space to make the building, which according to the current construction rate, cost us
1500tk per sq. ft.

Architectural & Engineering Cost: While doing the construction work, we had to do
the soil test of the surface where the building was done. And also we had to hire an
architect to design the building. Moreover, we had to take permission from DESA and
WASA for electricity and water supply. These are all included in these criteria of cost in
our initial project cost. Allocated costs are mentioned below:

Soil Test 25,000tk

Architect Fee 45,000tk

Water and Electricity Supply 20,000tk

Equipment Cost: We had to buy 16 Equipments from ‘Dultmeier Sales’ which cost in
total 1,000,000tk includes transportation cost. As the government does not impose tax on
capital machineries, we managed to get away from this expense.
 Monthly Operating Cost:

2 Workers 6000tk

3 Security Guards 3000tk

1 Office peons 1000tk

1 Accountant 8000tk

1 Promotional Supervisor 8000tk

3 Managers (FIN, MKT, PROD. Manager) 60,000tk

1 Managing Director 30,000tk

Space Rent 20,000tk*

Office & other utility 5,000tk

Electricity Bill 10,000tk

Depreciation (Building) 22,500tk

Depreciation (Equipments) 10,000tk

Total Cost 193,500tk

 12/14/2010Monthly Profit (Projected):

As we are, for the time being, part of a strategic alliance, all the operating costs will be
divided into half and paid equally by two partners. Since we agreed to pay the rent, the
auto service company will not be liable to pay that. Considering depreciation of the assets
and operating costs. We have set the price for each car at 800tk. We estimated 20
customers a day and 600 a month.

Profit= Revenue – Operating Cost

= (600 x 800) – 193,500

= 480,000 – 193,500 = 286,500tk

SWOT Analysis:

Strength:

• No competitors
 • Strong technical back up

• Strong employee relationship

• Upward growth from the beginning

• High market growth

Weakness:

• Tough to survive without any alliance partner

• Low budget from our part

• No technical knowledge that results initial extra cost associated with it.

• Improper marketing of the service

Opportunity:

• Can form monopoly with the emergence of more branches

• High need of our service in the market

• Can be a separate entity if the growth rate increases like this

Threat:

• Rainy season
 • May not get proper response from every class of the society

• Have to abide by the partner and if they turn down the alliance we may run out of
business.

Conclusion:
The way our life is getting automated day by day, taking the decision of running a car wash
business is just a perfect decision for us. But running a business is not always easy if the system
in not run properly. We are lucky enough to have a partner who has been supporting us from the
beginning. We are getting terrific customer response which is luring us t open more branches in
future. If our growth keeps increasing as of now, we can certainly expect to be the market leader
and successful in very near future.

Reference:
http://www.wikipedia.org

http://www.dultmiere.com

text book in BUS 251 course