SUBMITTED BY

NO. Student Name Roll No.

1 SHANZAY IKHLAQ BBHM-F19-005
2 KAINAT MARIAM BBHM-F19-006
3 USMAN GHANI BBHM-F19-011
4 TAYYAB FAROOKA BBHM-F19-012
5 NIMRA YASEEN BBHM-F19-013

Submitted To,
Dr. Muhammad SAEED MEO
Section
BBA 6A

Page 1 of 41
 ACKNOWLEDEMENT

Primarily, we would thank Allah Almighty for being able to complete this project
with success. Then we are highly indebted to our Sir. Dr. Muhammad SAEED MEO,
for their guidance and constant supervision as well as for providing necessary
information regarding the project and also for their support in completing the
project. His constant guidance and willingness to share his vast knowledge made
us understand this project and its manifestations in great depths ad helped us to
complete the assigned tasks on time.
Then we would like to thank our parents for their kind corporation and
encouragement which help us in completion of this project.
To all of you thanks a lot for your undying support given to us.
We are making this project not only for marks but to also increase our knowledge.
THANKS AGAIN TO ALL WHO HELPED ME.

DEDICATION
We dedicated our project to Allah Almighty who help us. As well as everything
that we do. We would be honor to dedicate this compilation to us parents. Our
parents support us on every step we make. Then we our thank full to our
respected Sir. Our gratitude to you for all you have done, which we will never
forget. We truly appreciate you and your time you spent helping us in many
occasions. We are grateful to you for giving us this opportunity to explore new
dimensions and to help us how to build a new business plan and its capital
budgeting. Thank you very much for the course. We enjoyed every minute of your
lecture as well as you marvelous sense of humor.

Page 2 of 41
Contents
MacDonald’s..............................................................................................................................................4
Category.....................................................................................................................................................5
Company profile........................................................................................................................................5
VISION...................................................................................................................................................6
MISSION................................................................................................................................................6
Our Values.............................................................................................................................................6
Slogan.....................................................................................................................................................7
Goals.......................................................................................................................................................7
OBJECTIVE..........................................................................................................................................7
ETHICS..................................................................................................................................................8
Key Stockholders.......................................................................................................................................8
Organizational Hierarchy.........................................................................................................................8
Facts and Figure about restaurant business in Pakistan......................................................................10
Selected Area...........................................................................................................................................10
LOCATION.............................................................................................................................................11
WHY MAIN MARKET..........................................................................................................................11
Geographical overview............................................................................................................................11
Purpose.....................................................................................................................................................12
Differentiation / specialty........................................................................................................................12
Our Products...........................................................................................................................................13
Our Deals.................................................................................................................................................14
Initial Investment....................................................................................................................................16
Stockholders and their contribution..................................................................................................16
Starting Expenses................................................................................................................................16
Daily Expenses.....................................................................................................................................17
Monthly Expense.................................................................................................................................18
Annual Expense...................................................................................................................................18
Revenue....................................................................................................................................................19
Daily revenue.......................................................................................................................................19
Monthly revenue..................................................................................................................................19
Annually revenue.................................................................................................................................19
Our Labor................................................................................................................................................20

Page 3 of 41
Our Competitor.......................................................................................................................................20
Our Timing..............................................................................................................................................21
Marketing.................................................................................................................................................21
Marketing expense...............................................................................................................................21
Promotion tools........................................................................................................................................22
Market segmentation...............................................................................................................................23
Business Analysis.....................................................................................................................................24
PEST Analysis......................................................................................................................................24
Strength & weakness of our main competitor (Fri-Chicks).............................................................25
Strength & Weakness of other competitor (RIZWAN Burger).......................................................25
SWOT Analysis of our business..........................................................................................................26
Product Life Cycle...............................................................................................................................27
BCG MATRIX OF McDonald’s.........................................................................................................27
ANSOF Model......................................................................................................................................29
How to attract customers........................................................................................................................30
Factor that affect subsidiary brand in Pakistan....................................................................................31
 Political Stability..........................................................................................................................31
 Exchange rate...............................................................................................................................32
 Law and Order.............................................................................................................................32
 Economic Growth........................................................................................................................33
 Inflation rate................................................................................................................................34
Capital Budgeting....................................................................................................................................34
Initial Investment = 10,000,000...........................................................................................................34
Operating cash flows...........................................................................................................................35
NET Present Value..............................................................................................................................36
Pay Back Period...................................................................................................................................37
Profitability Ratio................................................................................................................................38
Findings....................................................................................................................................................38
References................................................................................................................................................38
Conclusion................................................................................................................................................40

Page 4 of 41
 MacDonald’s

Category

Fast Food restaurant

Company profile

McDonald's is an American multinational fast food corporation, founded in 1940

as a restaurant operated by Richard and Maurice McDonald, in San Bernardino,
California, United States.
McDonald's is the world's largest restaurant chain by revenue, serving over 69
million customers daily in over 100 countries across 37,855 outlets as of 2018.
Although McDonald's is best known for its hamburgers, cheeseburgers and
French fries, they feature chicken products, breakfast items, soft drinks,
milkshakes, wraps, and desserts.

Page 5 of 41
According to two reports published in 2018, McDonald's is the world's second-
largest private employer with 1.7 million employees (behind Walmart with 2.3
million employees). As of 2020, McDonald's has the ninth-highest global brand
valuation.
Official Website: www.MacDonald’s.com.pk
Official Email: MacDonald’s@hotmail.com

VISION

“To move with velocity to drive profitable growth and become an even better
McDonald's serving more customers delicious food each day around the world.”

MISSION

“To be our customers' favorite place and way to eat and drink.”

Our Values

 Serve
We put our customers and people first
 Inclusion
We open our doors to everyone
 Integrity
We do the right thing
 Community
Page 6 of 41
We are good neighbors
 Family
We get better together

Slogan

I’M LOVIN’ IT

Goals

 To achieve 100 percent total customer satisfaction

 T serve good food in a friendly environment
 To be a socially responsible company
 To feed and foster communities
 To provide its customers with food of a high standard
 Quick service and value for value

OBJECTIVE

 Better restaurant operations

 Branded affordability
 Menu variety and beverage choice

Page 7 of 41
 Grow market share
 Maintain debt-to-capital levels to 35-40%
 Create long term profitable growth for shareholders

ETHICS

 Provide fresh food always

 Provide standardize foods
 Maintain a high value of discipline and positive environment
 Provide Friendly and relax environment
 Politely deal with customers

Key Stockholders

 Customers
 Franchise holders (franchisees)
 Employees
 Investors
 Suppliers
 Regulatory bodies (e.g. national and local regulatory bodies including health
and safety groups)
 Community groups
 Shareholders.
 Vendors

Page 8 of 41
 Organizational Hierarchy

CEO
Board of Directors

Marketing Dept. Sales Dept. Finance Dept. Restaurant Dept. Supply Dept.

Country Country Country Country Country

Head head head head Head

Marketing Restaurant Procurement

Regional Finance
manager members
sales Manager
manager

Advertisement Staff Training Logistics

Account
Manager

Crew
Storehouse
Members

Page 9 of 41
 Facts and Figure about restaurant business in
Pakistan
(Why we choose this business line)

As we know, food is our primary need. We can resist from buying new clothes,
but it will be hard to resist hunger. This is why food business is one of the most
profitable business in the world.
Compared to other sectors such as retail and fashion, the food and beverage
industry is rising in popularity. The increasing number of restaurant and cafe
businesses around us has proven it. The use of restaurant systems in this business
will greatly help business management become more productive.
According to recent survey 70% of Pakistani people consumption of their income
are on personal necessities and other eatable commodities. So if a person is
earning 100000 he will consume around 60 to 70 thousands on this regard. So,
eatable commodities and restaurant business are on too listed in countries like
Pakistan. And the following trend is much more in especially Lahore. Hence, to
start a businesses of restaurant in Pakistan is not risky as others and would be
productive as others and will return you maximum profit if you run it efficiently.

Selected Area

Main Market Lahore (in between Fri-chicks, RIZWAN Burger and Trill n Grill)

Page 10 of 41
 LOCATION

Unnamed road, Block G Gulberg 2, Lahore, Punjab

WHY MAIN MARKET

The reason behind selection of this area is that this area is a big and famous area
of Lahore. People eating trend is more, every class of people are over here, and
there are famous institutes like FC College. Moreover, we do not need much
amount to utilize on marketing as our restaurant will be in between two big
restaurants of this area and on the main road.
These are some basic aspects of selecting this area.

Geographical overview

Page 11 of 41
 Purpose

“Our purpose is to feed and foster communities. When we say, “billions served,”
we're not just talking about burgers. We're talking about serving our
communities, customers, crew, farmers, franchisees and suppliers.”

Differentiation / specialty

 Take online order

Page 12 of 41
 Online delivery
 Good quality food
 Taste
 No. of deals
 Affordable prices

Our Products

 Hamburgers
Double cheeseburger, Triple cheeseburger, Big Mac, Quarter Pounder, Big
N’ Tasty, Mc Double, Bacon Mc Double, Daily Double Burger, Mc Feast
burger, Ranger burger, Super ranger burger, 1955 burger, BBQ Burger, BBQ
ranch burger, Mc spicy Burger, Bacon Clubhouse, Jalapeno Double, Chi
Town classic, Denali Mac
 Mc Nuggets
 Premium Chicken Sandwiches
 Premium Chicken Deluxe
 Chicken Grilled Deluxe
 Snack wrap
 Chicken Mc Bites
 Buttermilk Crispy tenders
 Deli choices
 Mc Wrap
 Mc Arabia
 Other Notable chicken products
Chicken fajita, chicken cheese, Artisan Grilled Chicken, Maharaja Mac, Testy
Basket, Chicken selects, Southern style chicken sandwich, Chicken prim
burger,
 Fish
Filet-o-Fish, Fish Mc bites

Page 13 of 41
 Pork
Mc Rib, Vietnam grilled pork
 Sauces
Curry Sauce (Singapore & UK), Signature Sauce, Spicy Buffalo, Creamy
Ranch Sauce, Habanero Ranch Sauce, Honey, Hot Mustard Sauce, Honey
Mustard Sauce, Sweet 'N Sour Sauce, Barbecue Sauce, Ketchup, Mustard,
Mayonnaise, Mighty Hot Sauce (promotional), Szechuan Sauce
(promotional), Tartar Sauce, Aioli (Australia), Vegemite (Australia), Sweet
Chili, Cajun sauce
 Fries
Loaded Fries
 Happy Meal
Mc lobster, mc crab, Poutine, Angus snack, The Mc Veggie burger, Vege
clubhouse, Brownie Melt, Mc Rice, Mc spaghetti, the mc bean burger.
 Breakfast
Mc Muffins, breakfast sandwiches, bagels, breakfast wraps, all day
breakfast,
 Beverages (drinks, shakes, frozen)
 Desserts

Our Deals

Page 14 of 41
 Big Mac & Spicy Chicken
Spicy chichen bueger & spicy crispy burger
Deal 1
Regular Fries
PKR 450
Regular drink
each

Mc double petty burger

Regular Fries
Deal 2 Regular Drink
PKR 500

Double cheeseburger, Big Mac, Quarter Pounder, Bacon Mc Double

Mc Nuggets
Share Box
Sauce
PKR 1615 Regular Fries or Drink

Mc Feast burger, Ranger burger, 1955 burger, BBQ Burger

4 small fries
Deal 4 8 pcs nuggets
PKR 1299 Free refill drink

1 zinger Burger
1 Biryani box
Deal 5 2 chicken piece
PKR 999 Regular drink

2 Mc Wraps
2 petty burger
5 hot wings
Deal 6
2 chicken piece
PKR 1099
Regular Fries
Regular drink

Page 15 of 41
 Initial Investment

Total Amount= 10,000,000

Stockholders and their contribution

SHANZAY KAINAT TAYYAB NIMRA USMAN

IKHLAQ MARIAM FAROOKA YASEEN GHANI
2000000 2000000 2000000 2000000 2000000

Starting Expenses

Page 16 of 41
No. ITEM Price

1 Rent Expense 7,00,000

2 Machinery Expense 4,00,000

3 Decoration Expense 2,50,000

4 Furniture Expense 8,00,000

5 Counter Expense 2,00,000
6 LCD Expense 2,00,000

7 Grocery Expense 4,00,000

9 Ac Expense 1,50,000
10 Carriage Expense 1,00,000

11 Entrance Expense 1,00,000

Total Expenses 3300000

Daily Expenses

Product Quantity(kg) Price Total

Chicken 170 260 44200
Cheese 50 700 35000
Buns 300 150 45000
Other expense 50,000
Beverages expense 20,000
Oil 50 400 20,000
Total Daily Expense 214200
Page 17 of 41
 Monthly Expense

No. Item Total

Daily Expense*30
1 6426000
214200*30
2 Monthly Rent 1,00,000
3 Electricity bill 1,00,000

4 Salaries 1,50,000

Total Monthly expense 6776000

No. Item Total

Monthly expense*12
1 81312000
6776000*12
2 Starting expense 35,00,000
3 Marketing expense 3,54,300
Total Annual Expense 85166300

Revenue
Page 18 of 41
 Daily revenue

Daily revenue is estimated with our daily deal and average cost of our expense.
Estimated daily our deal 1, 2 generated the 145000 revenue and the share box
deal generated the 120000 revenue and the deal 4 generated 35000. And the last
two deals generated 156700.
Each deal cost profit is 40% of its total. Remaining 60% is deducted due to its
expenses.

Daily revenue: 145000+120000+35000+156700 = 456700

Monthly revenue

Monthly revenue is accruing when we multiply the daily revenue with 30.
Amount Total
456700*30 13701000

Annually revenue

Annually revenue is accruing when we multiply the monthly revenue with 12.
Amount Total
13701000*12 164412000

Page 19 of 41
Our Labor
Three managers
Salaries = (30,000*3) = 90,000
10 waiters
Salaries = (10,000*10) = 100000
3 Cook
Salaries = (25000*3) = 75000
2 Helpers
Salaries = (8000*2) = 16000

Our Competitor

FRI-CHICKS RIZWAN BURGER KFC

Our
PageTiming
20 of 41
 12:00 pm to 3:00 am

Marketing

Marketing expense
Marketing Budget
Item Size Quantity Per unit cost Total
Flaxes 10*8 & 5*2 1 & 10 1200 & 250 1200 &2500
Banners 10*3 5 300 1500
Pamphlets Two sided 2000 4rs 8000
Feedback Form Standard 3000 2rs 6000
Newspaper 1 2000 2000
10 time 600*10=6000
TV ad 600
in a day 6000*30=180000
Lighting board 2 20,000 20,000*2=40,000
Total expenses 241200

Miscellaneous expenses 12000

Total marketing budget 253200

Promotion tools
Page 21 of 41

Electronic media
Market segmentation
Page 22 of 41
 Types of
Segmentation criteria Our market segment
segmentation
Region Domestic/international
Geographic
Density Urban/rural

Age 8-45

Gender Everyone
Bachelor Stage: young, single
people not living at home
Newly Married Couples:
Demographic Life-cycle stage
young, no children
Full Nest II: youngest child six
or over
Income Low, middle & upper
Students, employees,
Occupation
professionals
Degree of loyalty Hard core loyal and switchers

Benefit sought Cost benefits, time efficiency

Behavioral
Personality Easygoing & careless
Potential and regular fast
User status
food eaters
Lower working and middle
Social class
classes
Our targets Resigned,
Struggler and Mainstreamer
Psychographic
individuals according to Cross
Lifestyle
Cultural Consumer
Characterization developed
by Young & Rubicon

Page 23 of 41
 Business Analysis

PEST Analysis

Content
 Political factors
In accordance with the current scenario in Pakistan govt. changes very
rapidly and so do the policies, such change in Policies can influence our
company in a negative way For example: Government conflict overseas

 Economic factors
Similarly economic conditions can be in our favor and against us. If there is
inflation in economy then purchasing power of people will fall and our sales
may decline and if interest rate increase then our investment may not
increase and vice-versa is the case.

 Socio-cultural factors
By giving social benefits our brand image may increase like as our
restaurant is situated in a residential area so we can provide social benefit
like proper array of wastage and not to defile the area.

 Technological factors
Technology also affects our company as now we are using latest type of
ovens that have more capacity and consume less gas and time to bake the
bread and bake the burgers so if a latest technology is used by our
upcoming competitor than it would have a negative effect on our cost and
sale.

Page 24 of 41
Strength & weakness of our main competitor
(Fri-Chicks)
 Strength Weakness

Fri-chicks have a high quality product Limited promotion adds

Team work
They provide hygienic food
String customer relationship
Clean environment & playing area for
Kids
Branch manager bounded for head
quarter policies
They can’t provide any discount
They have no enough parking space
They Don’t provide member ship cards
to their regular customers

Strength & Weakness of other competitor

(RIZWAN Burger)

Strength Weakness
Customer Loyalty Buy one & get one offer is not providing
Strong brand image Giving Low salaries to their employees
Efficient food production Process They take late decisions
Best Location because it’s near to They have on enough space for extra
FC college customers
Provide good quality food They target upper class

SWOT Analysis
Page 25 of
of 41our business
 Strength Weakness Opportunities Threats

A strong reputation, Availability of

Unhealthy food Innovative
brand name & substitute in the
image Products
image market

Franchise Rebuilding brand High-intensity

Stable Income
business model image competitors

Effective marketing Supply chain Change in the

Discounts offer
strategies disruption taste of people

Increasing
Technology Unbalance Epidemic of public
demand for
Development meals health
healthy products
Relation between
Employee Mc Delivery &
Large market share dealer &
Dissatisfaction Mobile order
franchiser
Health issues
Leader in quick Dissatisfied
Global expansion regarding fast
service restaurants Franchise
food chain
Health & quality Customers lose
Work on supply Political problem
Control due to intense
chain model in the countries
environment competition

Product Life Cycle

Page 26 of 41
The product life cycle method identifies the four distinct stages affecting sales of a
product, from the product’s inception until its retirement. When we discuss
product life cycle we may discuss it a general business level and our own personal
business level.

Our Product life cycle is on the stage

of introduction.

BCG MATRIX OF McDonald’s

Page 27 of 41
  CASH COW
To MCD the classic and original Cheese burger is one of its best-selling products, it
is a Cash cow because nowadays the market for cheap hamburgers is decreasing,
customers are looking for different kind of hamburgers and experiences with a
hamburger. Similarly, it happens with French fries and ice cream, these products
are very preferred by users, their value is lower compared to several products,
but their sales are increasingly increasing.
 Dog
Mc Hot Dog: McDonalds presented Mc Hot Dog, but the product failed, had no
reception in the market, the level of sales did not allow the product to continue in
the market. Mc Pasta: McDonalds introduced its product line in the Dinner Menu
in which you could choose between Lasagna, Fettuccine, and Spaghetti with
meatballs but people were not interested in the concept.
 Question mark
We consider that the McDonalds salads is a product that belongs to this quadrant
of the matrix because it is a relatively new product. We are in a time where
healthy eating is important, so the number of companies that sell healthy foods
such as salads has increased, but McDonalds has little market share, because the
company is known for its hamburgers. A greater participation in the market would

Page 28 of 41
have to be achieved in order to be a star product, if not to retire before becoming
a dog product.
 Star
Products such as the happy box and the Big Mac hamburger, are emblematic
products of the brand, with market characteristics that occupy them in the star
position. It is difficult to think of McDonald's without imagining a Big Mac one of
the bestselling products. In the same way it happens with the happy box, this
product gave a transcendental change in the children's menu, managing to stay in
the memory of many generations. The company achieved this achievement by
always being at the forefront of the toy store and making important changes in
the menu that makes it, healthier, more dynamic and more fun, enhancing their
sales and maintaining their participation in the market.

ANSOF Model

Existing Products New Products

Page 29 of 41
 Market Penetration
Hamburgers, cheeseburgers,
Product Development
Existing chicken products, French fries,
Innovation in all products,
Market breakfast, soft drinks,
introduction of new products
s milkshakes and desserts
(Brand)
More recently, it has begun to
offer salads, wraps and fruit.

Market Development
New Diversification
Uruguay
Market Pret A Manager
Venezuela
s Chipotle Mexican Grill
Yemen

 Market Penetration: Selling more of the same things to more of the same
customers.
 Product Development: Selling new products or services to the same
customers.
 Market Development: Selling more of the same things to different
customers.
 Diversification: Selling new products or services to different customers.
So our product at present falls at Market Penetration strategy

How to attract customers

 Through marketing penetration strategy

 Offer new customers discounts
 Update our Brand image

Page 30 of 41
  Take advantage of online ratings and reviews sites
 Reconnect with old customers
 Maximize search engine optimization
 Engage customer with chat
 Create a call to action
 Use attractive packaging
 Let customers try samples
 On time delivery
 Taking feedback from customers
 Online order and take away

Factor that affect subsidiary brand in

Pakistan

 Political Stability
This factor is essential to attract subsidiary because it creates confidence for
foreign investors. In accordance with the current scenario in Pakistan govt.
changes very rapidly and so do the policies, such change in Policies can influence
our company in a negative way For example: Government conflict overseas. Lack
of political stability has been the hallmark of Pakistan during the last eight years.
For example, the recent Russian economic crisis, combined with economic
sanctions, will be a major factor to discourage foreign investment. Such a
frequent change in government accompanied by abrupt changes in policies and
programs are hardly congenial for subsidiary. As you can see the below graph
continuously decrease in political stability.

Page 31 of 41
  Exchange rate
A weak exchange rate in the subsidiary country can attract more FDI because it
will be cheaper for the multinational to purchase assets. However, exchange rate
volatility could discourage investment. As you can see below the graph Pakistan
exchange rate rapidly increase day by day and that’s not good for subsidiary.

 Law and Order

Page 32 of 41
Unfortunately, Pakistan’s law and order situation has remained far from
satisfactory in the major growth poles of the country. Karachi, the largest

industrial and commercial center and the only commercial port of the country,
has been disturbed in varying degrees since 1989. In recent years the law and
order situation has also deteriorated in the Punjab province. Not with standing
attractive incentives offered to foreign investors, this factor has discouraged them
to set up their businesses in Pakistan. Law and order situation is also not good in
Pakistan as you can see in graph.

 Economic Growth
In brief, our results show that there is a positive relationship between FDI and
GDP in Pakistan. But, Pakistan has not sufficient flow of FDI during past decades.
And main point to consider which is evident through statistics and results is that
there is greater impact of FDI in the open trade policy regimes. It is also
concluded that FDI impact may be situation and culture related. So, the extent of
FDI economic benefits cannot be predicted.

Page 33 of 41
  Inflation rate
If there is inflation in economy then purchasing power of people will fall and our
sales may decline. Assets with fixed, long-term cash flows tend to perform poorly
when inflation is rising, since the purchasing power of those future cash flows falls
over time. Conversely, commodities and assets with adjustable cash flows (e.g.,
property rental income) tend to perform better with rising inflation. Inflation can
shrink your savings even if you’ve secured your funds in a savings account with an
average interest rate. Inflation rate also rises as you can see in graph.

Page 34 of 41
 Capital Budgeting

Initial Investment = 10,000,000

Operating cash flows

1st Year 2nd Year 3rd Year 4th Year

Sales 21000000 21000000 36000000 38000000

V.C 12000000 12000000 25000000 26000000

Leasing Office Expense 1000000 1000000 1000000 1000000

Overhead Expense 1000000 1000000 1000000 1000000

Less Depreciation 2000000 2000000 2000000 2000000

All expenses minus from Sales

EBIT 5000000 5000000 7000000 8000000

Tax rate=20% (EBIT*Tax rate)

Tax 1000000 1000000 1400000 1600000

Page 35 of 41
 EBIT - Tax

EAIT 4000000 4000000 5600000 6400000

Add depreciation 2000000 2000000 2000000 2000000

EAIT + Depreciation

Total 6000000 6000000 7600000 8400000

Withholding tax=10% (Total*10%)

Withholding Tax 600000 600000 760000 840000

Total – Withholding tax

After holding Tax 5400000 5400000 6840000 7560000

Salvage value 12000000

Total value 5400000 5400000 6840000 19560000

Exchange rate=0.5 (Total value*0.5)
Cash Flow to Parent 2700000 2700000 3420000 9780000

Total cash flow to parent = 18600000

NET Present Value

Initial investment = 10,000,000

1st Year 2nd Year 3rd Year 4th Year
2700000 2700000 3420000 9780000

Page 36 of 41
 Formula NPV
Present Value=future Value/ (1+k) ^n
K = 15% (0.15)
1st Year 2nd Year 3rd Year 4th Year

PV=2700000/ PV=2700000/ PV=3420000/ PV=9780000/

(1+0.15) ^1= (1+0.15) ^2= (1+0.15) ^3= (1+0.15) ^4=

2347826 2041588 2248706 5591747

Sum of all discounted cash flow 12229867

Sum of all discounted Cash flow – Initial investment

12229867 – 10000000
= 2229867

Hence, the differences is in positive sign which reveals that this project or
business is acceptable and has profit

Pay Back Period

Payback period of our business is 4 years because our initial amount will be
recovered within y years of this project as

Initial investment 10,000,000

Page 37 of 41
 Year 1 recovery 2700000
Year 2 recovery 2700000
Year 3 recovery 3420000
Year 4 recovery 9780000
Total in 4 years 18600000

Hence, the following business is acceptable because its recovery is within

four years if the criteria is set for four years so, then it is acceptable and
feasible.

Profitability Ratio

Formula: Sum of All discounted cash flow / initial investment

12229867 / 10000000
= 1.22
Hence, the profitability index of following business is above one which reveals
that this is acceptable and profitable so it will be accepted.

Findings

Our findings are that the following business is profitable and we can go for this
business plan because it’s profitable and we will recover our initial investment
within four years. By and large, it’s acceptable that’s it.

References
Page 38 of 41
 https://en.wikipedia.org/wiki/McDonald%27s
 https://mcdonalds.com.pk/
 https://prezi.com/ogngklsv5hxn/mcdonalds-objectives/
#:~:text=McDonald's%20main%20aims%20are%20to,service%20and
%20value%20for%20money.
 https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/
impact-strategy-and-reporting/governance-and-stakeholder-
engagement.html
 http://www.orgcharting.com/templates/mcdonald-organizational-
structure/
 https://borgenproject.org/top-10-facts-about-hunger-in-pakistan/
 https://www.waze.com/live-map/directions/main-market,-gulberg-lahore-
%D9%84%D8%A7%DB%81%D9%88%D8%B1?
to=place.w.48693563.487263312.7112739
 https://www.fool.com/the-blueprint/cash-budget/
 https://www.profitwell.com/recur/all/total-expenses#:~:text=How%20do
%20you%20calculate%20total,it%20as%20a%20net%20loss.
 https://www.priceintelligently.com/blog/revenue-
formula#:~:text=Revenue%20(sometimes%20referred%20to%20as,of
%20Service%20or%20Sales%20Price).
 https://frichicks.pk/
 https://www.facebook.com/rizwanburgerofficialpage/
 https://en.wikipedia.org/wiki/Economic_stability#:~:text=Economic
%20stability%20is%20the%20absence,would%20be%20considered
%20economically%20stable.
 https://www.imf.org/external/pubs/ft/fandd/basics/30-
inflation.htm#:~:text=Inflation%20is%20the%20rate%20of,of%20living
%20in%20a%20country.
 https://www.focus-economics.com/countries/pakistan
 https://countryeconomy.com/key-rates/pakistan

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  https://www.managementstudyguide.com/tools-of-promotion.htm
 https://www.investopedia.com/terms/m/
marketsegmentation.asp#:~:text=Market%20segmentation%20is%20a
%20marketing,similarly%20to%20a%20marketing%20action.
 https://www.cipd.co.uk/knowledge/strategy/organisational-
development/pestle-analysis-factsheet#gref
 https://www.investopedia.com/terms/s/swot.asp
 https://www.twi-global.com/technical-knowledge/faqs/what-is-a-product-
life-cycle#:~:text=A%20product%20life%20cycle%20is,growth%2C
%20maturity%2C%20and%20decline.
 https://www.smartinsights.com/marketing-planning/marketing-models/
use-bcg-matrix/
 https://corporatefinanceinstitute.com/resources/knowledge/strategy/
ansoff-matrix/
 https://www.investopedia.com/terms/n/npv.asp#:~:text=Net%20present
%20value%20(NPV)%20is,a%20projected%20investment%20or%20project.

Conclusion

In last I would like to say that if we want to start a business of restaurant in the
area like Main Market it’s not a bad idea. It will give us much profit as the
restaurant and departmental store trend in Main Market is at peak. By good
marketing strategy, proper check and balance, good administration, inexpensive
rates of deals and efficient services we can compete in the market of Main Market
and shake the market. As the following business plan is feasible and profitable we
can apply it in real time and can avail the opportunity.

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Thank you!

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