Professional Documents
Culture Documents
BY
SABA SAJJAD
MUNTHA VICTOR
KOMAL TARIQ
ISLAM FIAZ
HAMMAD SALEEM
18550920-010
18550920-146
18550920-141
18550920-136
18550920-175
18550920-010
18550920-146
18550920-141
18550920-136
18550920-175
UNIVERSITY OF GUJRAT
Session 2018-2022
ACKNOWLEDGEMENT
In the Name of ALLAH, the most Gracious and the most Merciful.
We are personally very grateful to some people who really supported us and assisted us in our
Efforts. Firstly, we would like to express our gratitude towards our project supervisor Ma’am
Ayesha Nazish Butt for his kind support and efforts, who is always available for our support.
Finally, we like to express our gratitude towards our Parents Without you all this project could
not have been possible.
SABA SAJJAD
MUNTHA VICTOR
KOMAL TARIQ
ISLAM FIAZ
HAMMAD SALEEM
DEDICATION
We dedicate our Project work to our beloved and respectful Parents and Teachers who inspired us to
Higher studies of life.
SABA SAJJAD
MUNTHA VICTOR
KOMAL TARIQ
ISLAM FIAZ
HAMMAD SALEEM
Executive Summary
We are going to introduce Pak Pet Food that will provide solution of many problems which are
facing by many business like retailers and distributor. This Pet Food is nutritional food that healthy
for all pets. Within this Pet Food industry they can manage their all business activities online and
digitally. The name of our business is Pak Pet Food business company whose vision is all dogs and
cats in Pakistan live a long, healthy, more fulfilling life by applying nutrition are the solution. Our
mission is to nutritional consultants is to enable dogs and cats to thrive not just survive. We
accomplish this by providing a nutritional solution that is biologically appropriate, natural, healthy
and balanced. We have selected Gujrat district as our target market. Target Customers of our
business are shops, Mall, stores, brands. Pak Pet Food industry manage
Sales, accounts, receipts, reports customers and debtors. The location we have selected for our
Business is in the heart of city Gujrat at GT road near Science College. Pak Pet food, LLP is new
idea that will manufacture and design the food products for the pets in Pakistan. Recently
Government of Pakistan impose the ban on the import of pet food. This is a big issue for pet
owners whose pets are habitual of foreign Quality pet products. To observe this issue we feel it
opportunity that if pet food manufacturing business start if will be successful in Pakistan because
already pet food brands not offer quality food product there are the huge complains of that
products. Pakistan’s bad economic condition is the reason to impose the restriction on the import
of luxury items. Government also impose the ban on Pet food. Pakistan manufacture only 5% of
total need locally and 95% import. In Pakistan owners of pet face the shortage of food for their cats
and dogs. Pakistan wants to improve its balance of payment and increase its exports and decrease
ratio of import. According estimation 190200 dogs are register in Pakistan. Pakistan’s pet food
industry grow 20% in last 5 years but in other countries this growth is per year. We are five
partners divide to stat the Pet food manufacturing business, because of this opportunity raise the
capital PKR 25000000. We decided to start limited liability partnership business One partner is not
liable for the negligence of other partner. Partner has the right of manage the business. In business
one partner active and other role are passive. Business has the separate legal entity, all property and
assets will be in ownership of business. Capital invest by partners will be same ratio. Working
partner get the salary and bonus. Pet food is tax exempt. In next three year interest on loan is 15%
Table of Content Page no
1. Business description………………………………………………………….…………. 9
1.1. Idea of business …………………………………………………………… 9
1.2. Opportunity rational……………………………………………………….. 10
1.3. Vision……………………………………………………………………… 10
1.4. Mission ……………………………………………………………………. 10
1.5. Objective………………………………………………………………… 10
1.6. Location……………………..……………………………………………... 10
1.7. Facilities……………………………………………………………………. 11
1.8. Business model……………………………………………………………. 11
1.9. Keys to success…………………………………………………………….. 12
2. Management description………………………………………………….……...……... 13
2.1. Form of ownership…………………………………………………..……… 13
2.2. Intellectual property rights.…………………………………………….…… 15
2.3. Organizational structure……………………………………………….……. 15
2.4. Management Team………………………………………………………..... .15
3. Feasibility analysis……………………………………………………………………… 16
3.1. Product and Service feasibility……………………………………………… 16
3.2. Market feasibility……………………………………………………………. 17
3.3. Organizational feasibility…………………………………………………… 17
3.4. Financial feasibility……………………………………………………………18
4. Environmental analysis……..…………………………………………………………… 18
4.1. PESTAL analysis……………..……………………………………………… 18
4.2. Porters 5 force Model……………….………………………………………….18
4.3. SWOT analysis……………………………..…………………………………..21
5. Competitive analysis……………………………………………………………………….25
5.1. Competitive positioning in target market………………………………………25
5.2. Competitive advantage…………………………………………………………25
6. Operational analysis…………………………………………………………………..........26
6.1. Process Strategy………………………………………………………....……..26
6.2. Layout & Location…………………………………………………....………..26
6.3. Inventory Management………………………………………………….……...27
6.4. Supply Chain Management…………………………………………………….27
6.5. Marketing strategies……………………………………………………………28
6.6. Human Resource Management……………………………………………… 30
6.7. Technological Development…………………………………………………. 30
7. Strategic plan…………………………………………………………………………….. 30
7.1. EFE Matrix…………………………………………………………………… 32
7.2. IFE Matrix……………………………………………………………………. 33
7.3. SWOT Matrix……………………………………………………………….... 33
7.4. SPACE Matrix………………………………………………………………... 39
7.5. QSPM……………………………………………………………………….....40
8. Human Resource Management…………………………………………………………. 41
8.1. Staffing……………………………………………………………………… 41
8.2. Staffing Requirements……………………………………………………… 41
8.3. Job Analysis……………………………………………………………....... 42
8.4. Recruitment………………………………………………………………… 42
8.5. Selection …………………………………………………………………… 43
8.6. Performance Appraisal…………………………………………………….. 44
8.7. Compensation & Benefits………………………………………………….. 44
9. Management plan………………………………………………………………………..46
9.1. Marketing objectives……………………………………………………… 46
9.2. Market research…………………………………………………………….. 46
9.3. Barriers to entry…………………………………………………………….. 46
9.4. Marketing need………………………………………………………………46
9.5. Trend analysis………………………………………………………………..47
9.6. Market segmentation…………………………………………………………47
9.7. Target customers…………………………………………………………….. 47
9.8. Positioning……………………………………………………………………48
9.9. Value proposition…………………………………………………………… 48
9.10. Branding………………………………………………………………………48
9.11. Product mix…………………………………...................................................49
9.12. Product description ………………………………………………………… 49
9.12.1.1. Product features and benefits……………………………….. 49
9.12.1.2. Product Characteristics and Function………………………… 50
9.13. Marketing and Promotion…………………………………………………….. 51
9.13.1.1. Advertising options…………………………………………… 51
9.13.1.2. Promotional strategies………………………………………… 51
9.13.1.3. Marketing strategies……………………………………………51
9.14. Pricing Strategy…………………………………………………………….......52
9.15. Marketing Budget…………………………………………………………….. 53
10. Financial Plan……………………………………………………………………………… 54
10.1. Assumptions…………………………………………………………………… 54
10.2. Initial financial Needs………………………………………………………..... 54
10.3. Projected sales and direct cost estimation…………………………………….. 57
10.4. Breakeven Analysis…………………………………………………………… 58
10.5. Projected profit & loss Statement…………………………………………….. 59
10.6. Projected Balance Sheet………………………………………………………. 60
10.7. Projected Cash Flow State………………………………………………………62
10.8. Ratio Analysis…………………………………………………………………..63
11. Risk & Measures…………………………………………………………………………....68
11.1. Risk Management………………………………………………………………68
11.2. Risk management process……………………………………………………...68
11.2.1. Financial Risks………………………………………………………. 69
11.2.2. Operational Risks …………………………………………………... 69
11.2.3. Marketing Risks…………………………………………………….70
11.2.4. Management Risks…………………………………………………70
11.3. Measures of Risks………………………………………………………………71
11.4. Risk Mitigation strategies………………………………………………............72
11.5. PPF Risk Management Table…………………………………………………. 72
12. Project Execution………………………………………………………………………… 73
12.1. Milestones & deliverables…………………………………………………….. . 73
12.2. Activities of project execution………………………………………………… 73
12.3. Steps in project execution………………………………………………............ 74
13. Project closure…………………………………………………………………………… 74
13.1. Project closure checklist……………………………………………………… 74
1-BUSINESS DESCRIPTION
1.1-Idea of business
1.1.1-Business name:
1.1.2-Tagline:
1.1.3-Logo:
1.2-Opportunity rational:
We came up with this idea after looking up around and after observing the crucial need of Pet food.
Due to ban on luxuries items including pet food in Pakistan. The import export problem or pet food
so many people have face this problem the already existing company that make pet food are not
provide best quality and the local cities or area people cannot get pet food for their pets. So we
came up with the idea of Pak Pet food industry that provide customer with the best quality food for
their pets. They can easily purchase from any market and contact with us if they have any issue or
want to purchase. We will provide 24/7 customer service to our clients customer retailers or
distributor. Pak Pet food is a biggest opportunity for all over the Pakistan.
1.3-Vision:
All dogs and cats in Pakistan live a long, healthy, more fulfilling life by applying nutrition as the
solution.
1.4-Mission:
Our mission as nutritional consultants is to enable dogs and cats to thrive not just survive. We
accomplish this by providing a nutritional solution that is biologically appropriate, natural, healthy
and balanced. We are committed to maintaining the highest standards of quality assurance through
rigorous assay testing. This ensures that we consistently deliver superior products every day.
1.5-Objective:
1.6- Location:
As we all know the location plays important role in the success of the business it is the
factor which planned properly result the competitive advantage for business.
Pak Pet Food is located at GT Road in front of Science College Gujrat.
Our product has physical existence, Retailer and distributor can test product and buy
from industry, so customer can easily purchase from market.
This will create a good image about our industry in retailers and distributor mind they
will be satisfied with us because we have a complete test area in our industry they can
visit and check the product and completely satisfied.
It will create a trust that we are not fraud and we will always there for their support and
for solving their food need.
We choose this location as it is highly reachable and people can get a quick access and
reach to this location. We make sure that location has no ambiguous address. Whole
seller, Retailers can easily spot us and we will be in the eye of them as this is very
commercial and sound place for our business. Because that are located in main GT Road.
1.7- Facilities:
Only provider of Pet food in area of Gujrat thus, we provide of product all over the
Pakistan and low the traveling cost, for the retailers and buyers or other cities so they
can easily purchase the product.
We are providing a low cost Pet food with best quality for customer’s satisfaction.
1.8-Business Model:
1.9-Keys to success:
1.9.2-Dynamism:
Furthermore we understand the reason of shopper’s choice we provide a complete organic pet food
the ingredients are organic and no side effects on pets health. They are full of energy.
1.9.3-Product Quality:
We manufacture high quality pet food that fully organic and full of energy. All the ingredients are
mention on the packaging with complete labeling that enhance the information for consumer about
the pet food.
2-MANAGEMENT DESCRIPTION
2.1-Form of ownership:
Pak Pet Food ownership style is Partnership. We are five investors and start the business of pet
food Manufacturing by investing own Capital. Each member invest equal capital and profit will be
equally shared among all the investors.
Because of large investment required for the business and we have less finance to cope with
everything so we choose the partnership style of business. As we will start new business so it will
be easy to start the business because of partnership. Profit and loss will be equally distributed to
partners so tax will be lower.
Partnership agreement include:
2.1.2- Management:
All the five partners are member of management committee the final decision will be taken by the
consent of all partners.
2.1.4-Limited liability:
Owner's liability in Pak Pet food is limited, it means each partner is liable for his own part of
capital.
2.1.5-Duration:
This partnership is for lifetime. Partnership could be dissolved only of partner leaves, dies or
bankrupt.
2.1.6-Common advantages:
Partner should trust each other and provide each information available to them to others related to
business. They are accountable to run the business for gaining the advantages.
2.2.7-Indemnity:
If any partner commits fraud and business faces loss due to it, then that partner shall compensate for
the loss.
2.1.8-Provision of information
Each partner is responsible for providing information to other partners in timely manner and should
not conceal anything.
Name Investment
Muntha Victor 20%
Komal Tariq 20%
Saba Sajjad 20%
Hammad Saleem 20%
Islam 20%
2.2.1-Trademark:
A trademark is define as it differentiates the Goods and Services of one company with other
company. Trademark help to identify the product and services. Our company has its own logo and
we are going to get the trademark in order to secure our intellectual property after registration of the
trademark it becomes identify of our business which will differentiates us from other competitors.
Application for registration of trademark has been submitted to ”Registrar trademark Registry” at
Street 129, Block A Jinnah Garden, Islamabad, Islamabad, Capital Territory 44000, Islamabad
under the trademark ordinance 2001 and trademark Rules 2004.
2.3-Organizational Structure
2.4-Management Team
Pak Pet Food is the partnership business by 5 investors whose investments are follows:
Muntha Victor has the biggest stake in the business she act as a CEO and manager
Each one of member is responsible for the field what he/she handles them hence the tasks are
distributed among the partners.
CEO is the head of our business and all managers’ report to CEO. CEO has authority to action and
led the organization and build strategies to meet organization’s mission. HR manager is responsible
to hiring employees, selection, performance valuation and training and their wages. Finance
manager is responsible for maintaining all financial books at the end of the month, Record all daily
financial activities.
Marketing manager is responsible for manage all marketing related activities sales, promotion and
advertisement. Manage productivity of its marketing plan and projects. Monitor and review all
marketing activities and results. Conduct the marketing research and determine the requirements
customers.
3-FEASIBILITY ANALYSIS
Feasibility analysis refers to a process that confirms that a strategy, design and plan being
formulated for a business does make sense and is applicable. It also assesses the practicality
business.
Is it technically feasible?
Is it feasible within the estimated cost?
Will it be profitable or not?
It’s an assessment of the overall desirability and demand for our product and services. Business can
only be functional if it has practicality and a need in customer’s life else it’s just a fail attempt. So the
need to check the demand is highly needed. For the assessment of product desirability and demand,
we conduct the survey by directly communicating to our targeted market. We are targeting the all our
people in Pakistan. Where there is no good and nutrition based pet food. We are the first who provide
nutrition based pet food in Pakistan. From our research and surveys we get to know there is high
demand of this product.
For any business it is very important to know the environment, nature, complexities and plus of a
market you considered for your business. You need to recognize the support; a market would give
your product in order to function well.
In market feasibility there are three tools to assess the market feasibility:
3.2.1-Industry attractiveness:
As we know we are living in modern era there is fast trend of new businesses. Everyone want
nutritional based products. So, that our manufacturing company provide you best products. Most of
customers show great potential and would like to buy our product.
Our target market is Pakistan. In our country Industries don’t provide nutritional products. Our
manufacturing industry provide best and nutritious product. Our population is growing and sales also
increasing. Elite class people like to buy this type of product.
Now comes the organizational feasibility that whether your business is capable enough to stand by
in the market. It assesses the skills and abilities that you bring into the market through your business.
Our basic purpose of business is to introduce nutrition based product in Pakistan which will be help
them to grow and complete at standard level. This thing is totally ignored and we will tried to fill the
gap in the market.
3.3.1-Management power:
The management is knee toward the success of any business. The power of management is depending
on the expertise and passion of the team numbers. We have a passionate team and their moral is high.
The management is less experienced in similar industry experienced in this industry but we have
members with moderate cash flow expertise and creativity and high social networking that will lead
towards high collaboration and success.
3.3.2-Resource efficiency:
The most important aspect of any business is the resources availability. This segment about the
assessment of the resources that needed to start the services. We have almost favorable resource
sufficiency because we have labor, management people, employees and all other resources are present
which are sufficient for business.
3.4 Financial feasibility
Financial feasibility is the final and last stage the main purpose is to assess that how much capital
needed for starting the business, sources of the capital.
4 ENVIRONMENTAL ANALYSIS
PESTLE analysis is a strategic tool to analyze the macro environment of the organization. And the
impact the macro environment of Pak Pet Food
4.1.1-Political factors:
Political factor play a significant role in determining the factors that can impact Pak Pet Food long
term profitability in market.
Political stability
Level of corruption
Legal framework for contract enforcement
Intellectual property protection
Trade regulations & tariffs related to Technology
Pricing regulations
Taxation
In Pakistan the political stability is very poor. Most of the government cannot complete their political
time period of five years. Due to this, rule and regulations and policies of government changes after
very short time, change in rules and regulation can affect our business because we also have to change
our business model according to policies. Also there is no advancement and improvement in
Technology sector by the government. New government policies may impose new taxes and tariff
which may decrease the profit margin of Pak Pet Food and also increase cost of Pet Food. Due to high
level of corruption and weak legal framework may cause difficulties for Pak Pet Food to operate in
Pakistan.
4.1.2-Economic factors:
Economic indicators serve as benchmarks for gauging the strength of any economic region.
Throughout the existence of the company, the economic climate will shift frequently. Pak Pet Food
must contrast the rates of inflation, economic expansion, and global trade at the moment. Pak Pet Food
will be better able to carry out your strategy plan in this way.
Pakistan is a third-world nation with an unstable economic system. In Pakistan, the exchange rate is
extremely high and unstable. Because we must pay Google in dollars for its cloud services, this would
present problems for Pakistan and could reduce our profit margin. Pakistan's inflation rate is 21.32%,
up 9.5% from the year before. Additionally, this may lower the quality of our items and raise their
price. This type of condition is very dangerous for Pak Pet Food. Income level in Pakistan is very low
so that most of customers cannot afford high price products.
4.1.3-Social factors:
Social factors have access to the mentality of individuals or consumers in a given market. These are
also known as demographic factors. The general beliefs and attitudes of the population play a large
role in how Pak Pet Food marketers will understand the customers of a given market and how they
will develop a marketing message through our product. After some social factors that can affect the
production of Pak Pet Food.
Most of our customers are uneducated and tech savvy. They are not familiar with the use of technology
in their business. They use traditional systems, which is a disadvantage for our company. We have to
educate them and tell them the importance of our products that they have to complete in this modern
era.
4.1.4-Technological factors:
We are living in the Technological era in last past 30 years the world has witness a lot of
Technological advancement in business. But Pakistan is under developing country and we are for
behind the world because now they are using artificial intelligence, reboots and digital currencies in
their businesses and Pakistan is still using manual and half century old systems. Government of
Pakistan is also introducing policies to modernizing the country. They are introducing E-visa, online
teaching platforms and also digital currencies in Pakistan.
An analysis of the technologies of the manufacturing company Pak Pet involves understanding the
following implications
That is why we present the best pet food industry in Pakistan. So they can easily take our products
from our districts and sectors.
4.1.5-Environmental Factors:
A Pak Pet manufacturing company should thoroughly assess the environmental requirements
necessary to function in the target markets before launching a new business. Some environmental
aspects Pak Pet Food should take into account in advance
The climate
Global warming
Laws that control pollution to the environment
Controls on industrial contamination of the air and water
Waste management in the environment.
Although these are significant concerns, our business offers environmentally friendly items. In the
end, it will benefit the environment. They provide services to our personnel, and we will take safety
measures to protect their health.
4.1.6-Legal factors:
Pak Pet Food's intellectual property rights are not sufficiently enforced by Pakistan's institutions and
legal system. Pak Pet Food should have undergone a thorough assessment before hitting the market
since it may result in the theft of company secrets. When entering the market, Pak Pet Food needs
take into account a number of legal factors, including:
The country's anti-trust laws apply to nutritional items as a whole.
Patent and intellectual property law; copyright
Consumer protection and online shopping
law of employment
law on health and safety
Pakistan struggles to provide safe, wholesome, and nutritionally sound goods, thus Pak Pet Food fills
that gap.
New entrants in Pet Food brings innovation new way of doing things and put pressure on Pak Pet
Food products, through lower pricing strategy, reducing costs, and providing new value propositions
to the customers.
Pak Pet Food products has to manage all these challenges and build effective barriers to safeguard its
competitive edge.
4.2.1.1- How Pak pet food can tackle the threats of New Entrants
4.2.1.2-How Pak Pet Food industry can tackle bargaining power of suppliers
By building healthy long term relationship with multiple suppliers. One of the lessons Pak Pet Food
industry can learn from Wal-Mart and Nike is how these companies developed third party
manufacturers whose business solely depends on them thus creating a scenario where these third party
manufacturers have significantly less bargaining power compare to Wal-Mart mad Nike.
The smaller and more powerful the customer base is of Pak Pet Food Products, Industry. The higher
the bargaining power of the customers and higher their ability to seek increasing discounts and offers.
4.2.2.1-How Pak Pet Food industry can tackle the Bargaining Power of Buyers
By building a large base of customers. It will reduce the bargaining power of the buyers plus it will
provide an opportunity to the firm to streamline its sales and production process.
Threats of Substitute Products or Services When a new product or service meets a similar customer
needs in different ways, industry profitability suffers. The threat of a substitute product or service is
high if it offers a value proposition that is uniquely different from present offerings of the Industry.
4.2.3.1-How Pak Pet Food, industry tackle the Treat of Substitute Products / Services
Pak Pet Food will try to build strong brand image in customer's mind before entry of new competitors
and capture maximum market share.
Pak Pet Food provide best quality pet food organic ingredients used in the food. A healthy pet= a
happy owner. There is no side effects on the pet health after eating Pak Pet Food by organic ingredients
food is good for pet’s health.
There are no preservatives in the pet food because we only utilize natural and organic
ingredients. Pet food contains ingredients that are certified organic.
The final arbiter of pet food quality, the animals, can measure it with ease. The greatest pet
food is what we offer serves both dry and wet food. Both dry and moist pet food is made by
us. For dogs, wet food is preferable than dry food. Wet food provides more water, which keeps
dogs hydrated, and fewer carbs, which are hard for dogs to digest.
Pak Pet Food offers the highest-quality pet food at fair pricing. a wide range of prices so that
distributors and retailers can get pet food of the highest caliber at cost-effective rates.
4.5.1-Good price:
Pak Pet Food provide the best quality pet food with good and reasonable prices. A complete range of
prices so the retailers and distributor can buy best quality pet food at reasonable prices.
4.6-Weakness:
4.6.1-New Brand:
Our business is industrial so we need high cost of production and the cost of production will be high.
4.6.3-Zero experience:
People sometimes don’t get product service from new suppliers which don’t have past experience.
4.6.4-Slightly expensive:
Our cost of production is high and we provide the high quality pet food with health benefits so our
product is slightly expensive than other pet food brand.
4.7-Opportunities
Promote the Pak Pet Food in other convenient cities location supermarkets such as Lahore, Islamabad,
Karachi and Gujranwala.
4.7.2-Increase price:
We provide the best quality pet food. It will be sold both in store and online in order to reach a wider
variety of customers.
Half of the profit from this industry will go to a non-profit organization that help to save the lives of
both cats and dogs street pets.
4.8-Threats
Competition with other pet food brands may be a problem, and owners may put and argument as to
why Pak Pet Food is the best pet food.
4.8.2-Lower prices:
Lower prices is also a threat. Other pet food brand can compete with lower prices. Competition may
have lower prices.
4.8.3-Cheaper Brand:
5. COMPETITIVE ANALYSIS
Our industry is new in this area so there is no targeted market because Gujrat is not big city but we
may face competition of other brand products in stores and local market. Because some companies
are working in big cities of Pakistan Lahore, Islamabad and Karachi they may enter in our market. So
we don’t have direct competitors at this place.
5.1.1-Lahore:
ZS distributor Pet shop in Model town Lahore. Hungry Pet is the trading name of Cat Point, a company
registered in Pakistan and with sales office based in Lahore. Over the last several years, we have
become one of the leading suppliers, distributors and retailers of top pet food brands in Pakistan.
Based in Lahore, Pakistan, they may be our competitor.
5.1.2-Islamabad:
Pet Set in Islamabad is pet supply store and also they have pet food with a wide range of pet food in
their stores they can also occur as a competitor in Islamabad local market.
5.1.3-Karachi:
Pet Guard, Karachi, Pakistan. We provide all kind of best quality Pet Foods and Veterinary
Medicines. Delivery available at your Home or Farm. By best quality they can also be competitor in
Karachi.
As we have already discussed that there are no direct competition of our business, so we have the
advantage of acquiring the whole sale market share. We have the first mover advantage because there
is no such proper industry of pet food in Gujrat. In our area buyers only retailers and distributor can
buy mostly online or from import and export with whom they interact only on calls and while
replacing their orders. So we physically meet with them and give a facility of testing the product and
more chances they will buy our product. We will provide a best quality Pet Food which meet the
internationals standard taste and quality with low price this will increase our sale and customer trust.
The competitive edge of our business is our commitment and loyalty with our customer’s retailers and
distributor. We believe in quality, taste, health genuineness and uniqueness in our work. This makes
us different from others because usually shortcut approaches are used to earn money which isn’t fair
but we aim to win with fairness and loyalty.
Competitive advantage of our industry is that we provide a healthy and nutritional base products as
well as delicious taste and provide different types of food wet and dry food.
6. OPERATIONAL ANALYSIS
Pak Pet Food is a physical product so there is a manufacturing process requires for our product.
We will make the Pet Food product in our industry and retailers and distributor can buy from us and
sold in local market to the customers according to their requirements.
Firstly the workers gather the organic ingredients used in the food.
The Pet food is make with the organic ingredients.
Dry & wet food both are make in the industry.
We will provide a healthy pet food according to our customers’ requirements.
The pet food go through a complete process and then pack with a good packaging.
Than the Pet Food is ready to deliver.
6.1.1-Quality Control:
We will check and renew the material packaging and service the machines according to advancement
in technology. We will use the same standard taste and quality which international pet food companies
use.
6.2 Location
Our location at GT road near science college Gujrat. Where the retailers and distributor or customers
can visit any time and get the Pet Food with face to face interaction.
This will create a good image of our brand in customer’s mind and they will satisfy with us because
we have a place where they can easily visit in case of any issue in Pet Food.
It will create a trust that we are not fraud and we will always there for their support and for solving
their problems in case of any issue.
6.3.1-Legal environment:
We will apply for the trademark for our logo and brand name of Pak Pet Food.
6.3.2-Personnel
Our business will manage by 5 investors they are owners and shareholders. We hire the working staff
of employee’s workers who work in the industry.
6.3.3-Credit Policies:
We offer a membership card name as Pak Pet Food smart card to our repeated and regular customer
when they buy more than 100 products they get 30% discount on the purchase this card is limited for
1 year.
In order to save expenses or improve distinction, a company must first identify the major and
secondary operations that contribute value to its finished product.
6.4.2-Primary Activities:
Create and deliver a product are the main concerns of primary activities. They can be divided into five
primary categories: operations, outbound logistics, marketing, sales, and services. Inbound logistics
is one of these categories.
6.4.2.1-Inbound logistics:
Create and deliver a product are the main concerns of primary activities. They can be divided into five
primary categories: operations, outbound logistics, marketing, sales, and services. Inbound logistics
is one of these categories.
6.4.2.2-Operations:
Activities that assist the company in converting raw materials into final goods. As the product
advances through the product line, value is added. It indicates that pet food products are made using
organic raw materials as well as other ingredients. Pak Pet Food is simple to make in accordance with
customer requirements and business operations.
6.4.2.3-Outbound logistics:
The actions are carried out by outbound logistics Pet Food in order to deliver the finished goods to
channel partners and end users. Distribution network, warehousing, scheduling, processing, and order
fulfilment for wholesalers and retailers are all examples of outbound logistics activities.
Sales and marketing are the most crucial aspects of our company because they form the foundation of
our operations.
6.5-Marketing Strategies
The second most important activity of our business is services. Pak Pet Food industry is provide 24/7
online service to their customers within or outside cities. Also a team in our industry that physically
meet with retailer and distributor is they have any issues or queries about the product.
The team also guide the customers how to use how many times given to pets and all details they guide
the visitors.
6.5.1-Support activities:
Food support the company's main business operations. Four broad categories were used by Porter to
group the support activities, and each of these categories can be further broken down into a variety of
distinct value activities that are unique to the sector in which Pet Food operates. The four standard
support tasks are:
6.5.2-Firm Infrastructure:
Pak Pet Food organization structure and its management includes CEO, CEO is the top authority
which directly give instructions to the managers of different departments including marketing, HRM
and finance managers. The managers will achieve their objectives.
Pak Pet Food has a central body which includes CEO and top managers.
Then each department has its own team and some have different teams for different activities.
Marketing manager have a marketing team which also include digital marketer, a customer
support team and a deployment team.
Operations department is responsible for managing all operations related to software and its
performance.
Finance department will have team which will manage the activities related to finance.
HR department include HR manager which will be responsible for managing employees and
hiring required employees.
Research and development department has a fixed budget in profit so they can keep the
software up to date.
These all departments directly discuss with CEO and they take actions and make policies with
mutual understanding.
Human resource department of Pak Pet Food industry provide a learning environment for employees
and also help them to build their career. HR manager resolve all the issues related to employees and
there is a training program for new employees to help them to understand business environment.
6.7-Technology Development
Almost all actions in a modern corporation are supported by technology. Technology development
has turned into a source of competitive advantage in the technology sector. Component design,
process engineering, feature design, field testing, and technology selection are a few examples of tasks
that may be involved in Pet Food's technology development.
6.7.1-Procurement:
Activities that are conducted to purchase inputs that are used by Pet Food's value chain are included
in procurement activities. It excludes inputs from purchases.
7-STRATEGIC MANAGEMENT
The macro environment consists of the larger societal forces that affect the microenvironment. The
external factors are not under the control of the strategists; instead they can just observe them and
make strategies considering these factors.
EXTERNAL FACTORS
Products.
TOTAL 1 1.533
Results:
In internal environment analysis we focused on internal functions of the organization and extract
the strengths and weaknesses from those functions. IFE is shown below:
INTERNAL FACTORS
WEAKNESS
TOTAL 1
2.199
Result:
The SWOT Matrix of PPF is an important matching tool which helps manager in making following
strategies for PPF.
(SO)' strategies
(WO)' strategies
'(ST)' strategies
'(WT)' strategies
Strength Weakness
1.Unique concept of PPF 1. Lack of industry experience
and industry knowledge
2. Sufficient financial 2. Difficult to manage big
resources to fund any changes store space, numerous lines of
in future product etc.
Threats
New competitors 3 0.106 0.318
TOTAL 1 0.921
INTERNAL FACTORS
TOTAL 1.278
WEAKNESS
TOTAL 0.921
The four quadrants that make up the Strategic Position & Action Evaluation Matrix are as follows:
We can determine where our store is located in the quadrants after analyzing IBO, which allows us
to determine the best IBO strategy. Two internal dimensions, namely the financial position and
competitive position, as well as two internal dimensions, namely the stability position and industry
position, are represented by the axes of the SPACE matrix. The matrix is shown below,
Financial position Rating
Liquidity 5.0
10.0
Stability position
-0.12
Competitive position
-4.0
Conclusion
Conservative Aggressive
Defensive Competitive
Retrenchment .Backward, forward, horizontal, integration
Divestiture . Market penetration
Liquidation . Product development
Pak Pet Food should pursue strong and integrated competitive strategies. We shall recommend the
three strategies listed below for competitive strategy.
7.4.1.-Market encroachment:
Through greater marketing efforts, IBO should look to gain market share for current products or
services in current markets.
7.4.3.-Market Expansio Another approach advised for IBO is market development, which entails
launching new products in new regions
7.5-STRATEGIC ALYERNATIVES
7.5.1- QSPM
Opportunities
We Can expand our .1 2 .2 1 .1 4 .4
Product or service range
Because of rapid .1 3 .3 2 .2 1 .1
Changes in technology we can use
Internet to increase marketing and online
Sales in future.
Result: PPF should pursue Market penetration strategy which is an integrative strategy.
8-HUMAN RESOURCE PLAN
The staffing requirements of Pak Pet Food organization will be met through in-house
recruitment process. Business partners were not hired as they all are investors of this
business and work is assigned to them based on their skills, abilities and interests.
Labor would be hired by the General Manager based on different characteristics which are
decided by the partner's mutual consent. Hiring would be done through interviews only.
The following table shows staffing needs of the Pak Pet Food organization.
Designation Seats
General Manager 1
Marketing manager 1
Operation manager 1
Financial manager 1
Manufacturing 10
Other staff 2
Total 16
There will be a need of a person who is responsible to supervise all the activities,
for hiring personnel of officer level jobs and for taking financing decisions of the
Iconic baking organization. This duty will be performed by GM of the Pak Pet
Food organization who is major pillar of this business.
Accountant, marketing officer, and operating will be hired on contractual basis and
their contracts will be extended based on their performance.
All other employees will be hired on contractual basis whose contracts will extend
based on their performance.
8.3-Job Analysis:
Job Analysis is defined as the procedure for determining the duties and skill requirements
of a job and the kind of person who should be hired for it. So, we conduct job analysis for
Iconic baking organization in order to ensure that job duties and responsibilities are clear
to the job incumbent and to the supervisors.
The purpose for conducting job analysis in Pak Pet Food organization:
Iconic baking organization use following procedure for gathering information of job-
related activities:
Direct Observations
Interviews
The job descriptions and specifications are prepared for jobs which will be there in Pak
Pet Food organization. The job descriptions are attached in appendix (Exhibit).
8.4 Recruitment:
To attract a large pool of candidates having required KSAOS for the posts which are
created based on activities required to perform in the organization, different mediums will
be used. The vacancies for jobs will be advertised in local newspaper and/or employee
referrals will be used. In future posters for the advertisement of vacant job will be used
and pasted near competitor's baking company, so that the employees come to know about
the vacancies. These posters will also be pasted at different places in the city.
We will use both the open and targeted recruitment. Targeted recruitment will be used for
top level positions in order to attract people having more specific and required KSAOS
and open recruitment will be used for lower level jobs like chefs, security guard, gate
keeper and production teams etc. The attractive and targeted messages will be used for the
advertisement of officer level jobs in the newspaper. Such type of messages will give an
inducement to people to apply for a job.
8.4.1-Recruitment Policy:
8.4.2-Recruitment Budget:
The cost of the quarter page back page black & white is 6000. For the recruitment of all
staff for Iconic baking organization before it opens, we will give ad in local newspaper
Jazba two times in one month. So, the total budget for the recruitment in first month will
be as follows:
8.5-Selection Process:
8.5 The hiring process for all workers of the Pak Pet Food business will be coordinated by
the CEO with other partners. The "Interview Method" will be used to choose the
candidate. All documents will be kept in the appointed person's personal file. The
interviewer will make the applicant feel comfortable so they can be their "natural self" and
demonstrate how they typically interact with others.
This is obviously not totally practicable given that they are aware that whether they get
hired or not may depend at least in part on the impression they make. We give kids a calm
environment so they can avoid this neighborhood.
8.5.1-Background Investigation:
Every month or every three months, Pak Pet Food will conduct appraisals to review and
summarize each employee's performance for that time period. A 360-degree evaluation
method will be used, face-to-face interviews with the employees regarding their work will
be conducted, and peers will also be encouraged to provide feedback about the employees.
Customer and client feedback is also significant and will be taken into account when staff
are evaluated. The employee is typically involved in the discussion after the evaluation
has been recorded on a customized form with a number of performance categories. The
evaluation becomes a permanent part of the employee's file and frequently affects
decisions on human resources, such as pay raises and other things.
The Pak Pet Food Company will adhere to a job-based structure at a competitive rate and
pay its employees according to the work they have completed, the tasks and obligations
they have fulfilled, the nature of their employment, how they behaved at work, and other
factors.
8.7.1-Compensation Strategy:
Total Compensation
Note:
9- MANAGEMENT PLAN
9.1-Marking objectives:
A market survey through informal interaction was conducted by visiting various markets, pet factories
at other cities, health centers in Gujrat and its surrounding areas in which we described our
consultancy service and related it to the problems they were facing. Targeted market was pleased to
acquire our service and to become our permanent client.
The market needs is to satisfy the customer needs of those products which are not presently available
in your area and offer the solution of their problem. Additionally, it is a better chance to sell them
various goods through a reputable company in order to make money; at the moment, there are roughly
4,000 to 5,000 tons of pet food sold annually. Less than 5% of goods are made locally; 95% are
imported. This is what our people's market needs are.
Market trends are the movement in the market in a specific time. Now we are living in modern era
but in Pakistan this trend is not so popular because our manufacturing company provide nutritional
products and the market cost of that product is high. Pak Pet Food satisfy customer’s need and follow
market trends.
Age-based segmentation of the pet product market is the most straightforward due to the large age-
related differences in pet product spending. The biggest pet spenders are senior citizens. Most empty
nesters and married couples without children in the home spend 30% more on pets than the typical
household. Married couples with adult children living at home provide the best clients for the pet
sector (the families that spend the most on pet goods and services). These "packed" nesters spend 45%
more on pets than the typical family. Ages 55 to 64 spend 26% more than the national average.
Spending on pets is lower than average for both households under the age of 35 and those over the
age of 65. Parents of young children spend.
9.7-Target customers
We target market is all over Pakistan but we mainly targeted Lahore, Islamabad, Gujranwala, & Gujrat
and nearby areas the reason for targeting this market segment is:
We have chance to capture the maximum market share and also get area affiliation advantage that is
people can buy product from local suppliers.
9.7.1-Industry:
9.7.2-Location:
9.7.3- Size:
9.7.4-Stage in business:
9.7.5-Annual sales:
9.8- Positioning
Positioning by creating an image on customers mind. Our Industry provide nutritional food for the
pets our food is healthier as compare to other brands we provide a best quality and nutritional food
made of organic ingredients. Because we all know that healthy pet= a happy owner.
Value proposition means why customers will buy our product instead of our competitors. The main
demands of our customers are:
Nutritional products
Good fragrance in food
Life time loyalty
After sales services
So, Pak Pet Food try to fulfill all needs and demands of customers. The main reason why PakPet Food
in market are costly is because mostly people imported the product from foreign in dollars and dollars
price is very high in Pakistan.
9.10 –Branding
A branding is a name, symbol or design that differentiate one business from other business.
9.10.1-Brand name:
9.10.2-Logo
9.10.3-Tagline:
9.10.4-Brand positioning:
Our brand positions with the aim of being easily approachable by customers
by having best quality and best price.
Dog food
Cat food
9.12 Product Description
Complete nutrition
High animal- based protein
Shiny cost and skin health
Easy to digest food
Active health and wellness
9.12.1-Product features and benefits:
Increased Satiety
When you are hungry and you eat foods that are less than optimal to satisfy that hunger, you will
notice that you become hungry again soon after.
When you feed your pet a high-quality species-appropriate food, they will experience a higher level
of satiety. This is due to the “usability” of that food’s ingredients. You see, a species-appropriate
food targets ingredients that are optimal for your dog’s biological needs.
Good Muscle Tone
Just like us, our cats and dogs require protein in their diet to maintain healthy cells, tissues, and
organs in their body. Protein is the only source of the amino acids we need to repair these things
when they are damaged through daily functions.
Controlled Weight
High-quality pet food, in comparison, provides whole nutrition. For example, increased protein
content, complex carbohydrates, and healthy fats all provide nutrition without contributing to weight
gain in the way that “junk” ingredients do.
Appropriate Energy Levels
Just like us, our cats and dogs experience a level of energy that is a direct result of the food that they
eat. The body requires energy to function. This energy is obtained through the breakdown of foods.
Some foods break down faster than others and provide a fast release of energy. Some foods break
down slower and provide a prolonged release of energy.
General Wellbeing
We return to the comparison between how you feel when you eat a balanced diet rich in nutrients
and how you feel when you consume a diet heavy in processed foods. You wouldn't continue to eat
candy bars and fatty takeout for the rest of your life! Both your body and the bodies of your dog and
cat require wholesome nutrition that supplies the essential vitamins and minerals.
The majority of commercially produced pet diets are "complete and balanced," which means that each
serving fully satisfies a pet's nutritional requirements and supplies all necessary nutrients at the right
concentrations. Many of these nutrients can be found in ingredients found in pet food.
Features or functions such as:
Digestibility
Palatability or gustatory quality (i.e., flavor, texture, freshness)
Online
Print
Radio
Television
9.13.2-Promotion strategies include:
Email advertising
Mobile advertising
Optimization for search engines
Marketing collateral in print
Communications
Networking
Word-to-mouth
Referrals
9.13.3-Marketing strategies:
Pan flex is a traditional means of creating the awareness of a business in the areas of targeted
customers. We will make pan flex and display in the main areas of Gujrat.
Brochures:
A brochures is an informative piece of paper, mostly folded up, that inform new buyers
about product. We will create business brochures that contain the specific features of our food.
Distribution channels:
The products are sold and distributed by food distributors to retailers, food service providers, and other distributors
after they have purchased them from a manufacturer or another distributor
9.14.1-Marketing Budget
We are five partners divide to stat the Pet food manufacturing business, because of this opportunity
raise the capital PKR 25000000. We decided to start limited liability partnership business.
Process:
The first step selection the name of business and submission of application Form 1 and part 1 for the
registration in (SECP). After the submission of require documents and payment of fee business will
be register within 2 days. Then we apply for incorporation of LLP. Then Registrar issue the
certificate of incorporation.
Competitor:
10.1- Assumption:
Initial costs of Pak Pet Food is starting cost of the business like LLP registration fee, marketing
consultant fee, and R& Development fees. Different Assets are need to start a manufacturing like tools
and Machinery. Money that require to start marketing activities, finance operations will be pat by
owners. Remaining start-up capital acquire by partners investment and also get loan from other
companies, banks or financial institutions.
Estimation of Raw material cost and other direct expenses are given in tables.
Pak pet food LLP
Projected Material Requirement.
Unit : Bag
Quantity : 3
Expiry Date : 23/08/2022
1-Transactions:
I. Pak pet food group decided to start manufacturing business of pet food. Five group
members invest PRK 25000000, 20% each member.
II. Purchase the building as fixed asset on cash PRK 55000000.
III. Purchase plant & Machinery on cash PRK 5500000………………………………………….
IV. ………………………………………………………………………………………..
V. ……………………………………………………………
PROJECTED GENERAL JOURNAL
Date Accounts Details Ref Debit(PKR) Credit(PKR)
sep.01.23 cash funds to start business 1 25,000,000.00
AC ACCOUNT
Accounts Date Details Sum of Ref Debit credit
AC Nov.10.2023 5 Ac for office 10 PKR 100,000.00
AC Total 10 PKR 100,000.00
BUILDING ACCOUNT
CAPITAL ACCOUNT
Accounts Date Details Sum of Ref Debit credit
capital sep.01.2023 Cash invest in 1 PKR
business 25,000,000.00
capital Total 1 PKR
25,000,000.00
CASH ACCOUNT
FAN ACCOUNT
SALARIES ACCOUNT
SALES ACCOUNT
Accounts Date Details Sum of Ref Debit credit
sales Nov.30.2023 goods are sold 12 PKR 35,000,000.00
sales Total 12 PKR 35,000,000.00
STATIONARY ACCOUNT
TRAIL BALANCE
On the basis of our expected and techniques to reduce operations that results in high fixed
cost Pak Pet Food wants to earn the profitability. 2nd and 3rd year data show the increase in
sales that show the increase in profitability.
53000000
38819000
43100000 45000000
60000000
50000000 28919000
14031000
33200000 35000000
40000000
14031000
30000000 19019000
14031000
20000000
10000000
0
Net Profit operating Gross Profit sales
expenses
10.6-PROJECTED CASH FLOW STATEMENT
Pak Pet food manage the cash flow with start-up investment and expected to earn profit to the end of
first year. Owner invest additional 2251600 in second year as hedge against Account payable cash.
Cash Received
Expenditures
Cash payments on expenses 1800000 1500000 1600000
CHART TITLE
60000000 year 1 year 2 year 3
50000000
40000000
30000000
20000000
10000000
0
CASH BALANCE CASH INFLOW CASH OUTFLOW
10.7-PROJECTED BALANCE SHEET
It is expect a healthy growth in net worth at the end period of plan show in balance sheet.
In Appendix monthly projections are given.
Assets
Current Assets
Cash at bank 5000000 7500000 8000000
Accounts Receivable 240000 70000 120000
Inventory 6501495 21226959 45251981
Other Current Assets 3377400 3377400 3377400
Total Current Assets 9267545 328904359 57826381
Fixed Assets
Building 55000000 55000000 55000000
Machinery& plant 5500000 5500000 5500000
Furniture 500000 500000 500000
Ac 100000 100000 100000
Total fixed assets 61100000 61100000 61100000
Total assets 70367545 390004359 118926381
10.8.1-Sales Growth Ratio: Present year Sales –Past year Sales /Past year sales
This Ratio is measure the PPF ability to generate the revenue through sales over different period of
time. Sales growth rate is not same for every company because every business size, competition
and sales targets are different. Pak Pet food first year sales target was 100000 and company achieve
this target in first year and sales are this is good. Sales growth position will be good in second year
as compare to third year according to data.
Y1 Y2 Y3
0.00% 28% 22%
Account receivables are the current assets so this ratio give the information that how many percent
account receivable of the total assets, because current assets are good for liquidity.
Y1 Y2 Y3
3.4% 0.01794% 0.100%
Inventory is current asset including the raw material and finish goods. This ratio tell us
percentage of assets that are inventory and convert in cash in one or less than one year.
Y1 Y2 Y3
9.23% 5.44% 38%
10.8.4-Current Liabilities to total Asset Ratio: current liabilities/Total assets
Current liabilities includes the accounts payable, accrued expenses, notes payable, interest
other short-term debts. This ratio give the comparison that how much assets business have to meet
current liabilities.
Y1 Y2 Y3
0.0710% 0.0001% 0.084%
10.8.5-Long-term Liabilities to total Asset Ratio: total long term liabilities/total assets
This ratio give the information that if business bankrupt and not able to pay its debts. Is the business
have the enough assets to recover its debt
Y1 Y2 Y3
0.0142% 0.0025% 0.0084%
This ratio give the information that business have more assets or more liabilities. It tells about the
financial strength of a business.
Y1 Y2 Y3
0.85% 0.17% 0.16%
10.8.7-Gross profit Margin to total sales Ratio: gross profit margin/ total sales
This ratio explain the gross profit as compare to total sales. Gross profit in all year will expected
good.
Y1 Y2 Y3
47.1% 11.5% 44.56%
10.8.8-Selling, General& Administrative to total sales Ratio:
This ratio give the idea that how much expenses incurred on the sales. If the expense are higher
gross profit margin and net profit will be less
Y1 Y2 Y3
6.5% 4.2% 1.2%
10.8.9-Profit Before Interest and Taxes to total sales Ratio: EBIT/Total Sales
This ratio shows that how much business generates of sales revenue, before considering for interest,
taxes, and depreciation.
Y1 Y2 Y3
54.76% 64% 86.59
Less than 1 Quick Ratio is not good for business. PPF has more than 1 Quick Ratio in all 3 years
that business has the enough quick assets to meet the short term obligations.
Y1 Y2 Y3
0.2% 0.5% 0.3%
10.8.12- Total Debt to Total Assets Ratio: Total Debt/ Total Assets
A business have the high ratio of total debt to total Asset has a relatively high leverage it reduce the
chances that assets out weight debts.
Y1 Y2 Y3
35% 54% 38%
10.8.13- Net Profit Margin Ratio: Revenue – cost/ Revenue
This ratio shows that how net income a business earn with total sales. A higher Ratio means
business is more efficient maximum profit from sales.
Y1 Y2 Y3
57% 48% 59%
The high account turnover receivable indicates that business has the quality customer that pay their
debts quickly. PPT is in initial stage so this ratio is not too much high and data is also on idea basis.
Y1 Y2 Y3
45% 35% 34%
This ratio shows that how efficiently business uses its assets to produce sales. High ratios are good.
In third year business is more efficiently use its assets to produce the sales.
Y1 Y2 Y3
34% 35% 37%
Positive working capital is ideal for business its mean that business financial obligations are met and
it can invest in expansion of business.
Y1 Y2 Y3
8767545 328304359 57726381
10.8.18-Interest Coverage: EBITDA/ Interest expenses
If any business has 1.5 or less interest coverage ratio its ability to meet interest expenses is weak.
Pak PET Food interest coverage ratio is higher than 1.5 that is good.
Y1 Y2 Y3
1.3% 1.2% 1.2%
11-RISK MANAGEMENT
Plans of new businesses or for the expansion of existing businesses projected carefully but still
there will be possibilities to face the hurdles. Unexpected problems can be exists even did best
planning. Businesses, organizations feel helplessness against the unknown risks or hazards. For this
purpose businesses do the risk planning to manage the future unexpected risks. Following steps are
includes
Analyze how future problems can create the risks for business projects,
Think which actions are stop the risks.
Take the selective actions to stop the risks.
11.1- Risk: uncertain condition or factor that can change the planned result of project. There is no
surety that activity of any project not turn or carry unexpected hazard that creates a risk for our
projected business.
It is beneficial that before to occur the risk do planning about it. Its mean that business could
planning for upcoming risks throughout project planning. By this process it will easy to handle the
risks in your project. For this purpose risk management plan document prepare that guide to how
future risks are assess? Who will be answerable to do it? What will be the timeline to meet the risk
management team during project.
The treat of not to complete the project is the result of mismanagement of funds. If the costs are
high the projected budget and many operations and workforce replace or shift. It will highly effect
the project. So it will be risk for our Pet food business. If the market trends are change Interest
Rates or exchange rates are fluctuate it will be the risk for our Pet food business, so we will face
the problem to face extra interest on loan and exchange rates change can decrease the value of
home currency, price of machinery, assets or Raw material will be increase. Financial risk may
cause to loss in business due to termination of any partner from the business. Other financial risk is
too few number of sales and also fewer profits
Risk measures:
To overcome the financial risk we need to overcome or low cost of production and getting higher
profits by giving product according to the customers need and demand.
To overcome financial risk we want to male some rule and regulations for partners to termination
from the business if they want to terminate from the business then they give us some time to return
their equity or equity will get after some months of termination.
11.2.1.2-Operating Risks.
Internal Risks:
It is the risk that internal processes of production will not going according to expectation. Poor
internal operations can result to fail the product in markets. Such problems cause the extra cost like
penalty for poor performance other businesses can get the benefits of that situation and launch the
best product with zero defect. In other words competitors learn from your failures.
External Risk:
Because of the different events like civil unrest, storms, floods business activities will be
discontinue and project will be fail and costly. By monitoring organization can save from this
unexpected hazard.
Employment practices and workplace safety Risk:
If the operations are not properly perform there will be the chances of health and safety issues face
in project that can cause the risk for project, employees and customers also. It’s the responsibility
of management to monitor that health and safety standard are follow or not. There are some chances
to faced management risk for our business because we depend on suppliersfor inventory etc. We
need on spot delivery of inventory from suppliers to meet the demand of ourcustomers.
Risk measures:
We need to build strong and friendly relationship to our suppliers to maintain the delivery of
inventory etc.
11.2.1.3-Marketing Risk.
Risk measures:
We need to make tools that can easily attract peoples to buy our product. We need to satisfying and ensure
about quality of the product effectively and efficiently
11.2.1.4-Management Risk
Management process is planning, organizing, leading and controlling and if there is the issue in
management project will 100% fail. All management function are integrating with each other if one
function has weakness, it will cause the poor management.
If the vision, mission, goals and objectives are not clear and well communicate it will create the
risk to go the wrong direction. In all project and business activities vision and mission will clear in
the minds of all team result will be different from expected result.
Conflict between the team and group will be risk for project performance.
Controlling risk:
If the standards are not well set, performance is not measure, deviations are not analyze and
corrective actions are not take it will be heavy risk for project that will flop the project The
management risk can face in the form of partners if any partners can leave from the businessand
withdraw their equity. There are chances to become our competitor and in future they give us tough
time. Also can faced this risk through poor decision power or incorrect decisions Management risk
can faced then we are hire the untrained employees in the company If any partner can leave from the
business than they will not start business with same nameof the business they need to start business
with new name or another. We need to hire trained and skilled employees. We need to take
corrective actions and decision.
11.3-Measure the Risk
We identify all the risks that can occur during our Pet Food manufacturing project. Now we
measure the risks on the basis of occurrence and severity.
Severity
High low
Probability
high
Low
11.4.1-Risk Acceptance:
Risk that has the high probability to occur but not high effect on project then we accept the risk and
become risk taker. If business not take such risk not survive. For example increase the price of
electricity.
11.4.3-Risk Reduction:
The risk has the high probability to occur the risk and high severity. Management can reduce the
chances to occur the risk. For example carefully manage the funds if there will be risk to end the
fund before the completion of project.
11.4.4-Risk Transfer:
The probability that has low probability but high severity to occur can be handle through risk
transfer. In this risks are transfer to the third party which bear the loss on occurrence of loss.
13-PROJECT CLOSURE
It is the last phase of the project when as a manager I will conform that our deliverables are
accepted by customers or clients. Before to close the project I will rating the performance and
compare with standard performance. I will add the project team members in this step for
observation and to get feedback. All the feedback record in a document which is called lesson
learned document and it will be helpful in future for us. In this way I will check that if real
objective behind project will be fulfill or not.
1. Make sure that we will met all the requirement that are add in project scope document.
2. All the deliverables are satisfied by investors and customers.
3. I will sure that all documents and contracts are sign by the appropriate person.
4. I will sure that all the invoices are keep in record.
5. All document related to project including research date and final report of project save for
future use.
6. I will save the record of feedbacks of investors and team members for future.
7. Finally we will celebrate the success of our project.