BUSINESS MANAGEMENT

HIGHER LEVEL

INTERNAL ASSESSMENT RESEARCH PROJECT

May 2022

Research Question
Should Bhulaxmi Jewellers Private Limited (BJPL) expand the present store as an internal
growth strategy to meet increasing demand for jewellery?

Exam Session: May 2022

Candidate Number: jyv088

Word Count:
Executive Summary – 200 words
Research Proposal – 500 words
Main Report – 2000 words

To the management of Bhulaxmi Jewellers Private Limited (BJPL)

Page 1 of 35
 Research Proposal

Research Question:

Should Bhulaxmi Jewellers Private Limited (BJPL) expand the present store as an internal growth
strategy to meet increasing demand for jewelries?

Rationale of the study:

Bhulaxmi Jewellers Private Limited (BJPL) is a private company incorporated on 25 May, 2009.
The company is located in Mumbai, India. The services include old jewellery buy back option,
making charges and also offers loyalty programs. There is a consistent growth rate in the sales
revenue (51% from 2016-2017 to 2019-2020) The rate of gold increased from 2017-2018 and
decreased by 1% in 2018- 2019 therefore is sufficient increase in demand for jewellery. BJPL
plans to expand the existing store.

Proposed methodology:

Areas of syllabus and analytical tools:

Topic Area of syllabus and analytical tools

1.3 – Organizational objectives -Ansoff matrix – to analyse growth strategies
for BJPL.

1.7 – Organizational planning tools Force Field Analysis – to evaluate whether

BJPL should continue or expand the existing
one.

3.8 – Investment appraisal -Payback, ARR and NPV to calculate

worthiness and return on the proposed
investment.

3.5 – Accounting ratios Profitability ratios – to understand the

profitability of BJPL.

4.4 – Market research primary and Primary and secondary data – using market
secondary research research to collect information.

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Possible sources of information:

Primary Data Justification

Interview with Directors of BJPL To collect information about; the company’s
mission and vision, and past, present and
future of BJPL.

Survey of existing and prospective To receive feedback for the gold jewellery
customers. and demand of the customers.

Interview with the head of finance To understand the budgetary outlay for
expansion, and the financial status.

Interview with the head of designs and To understand what people like and their
production preferences, etc.

Secondary data with justification:

• Business Management text books for theories and concepts.

• Industry-related websites: to know general demand, likes and preferences

• Financial statements of BJPL to understand the company’s progress (2016 – 2021)

Individuals and organizations to be approached:

• Directors of BJPL.

• Head of finance

• Head of designs and production

• Survey of 50 existing and 30 prospective customers of BJPL.

Anticipated difficulties with possible solutions:

The BJPL Directors and managers may not disclose important information to maintain

confidentiality even though the objective of inquiry would be explained. It will be difficult to

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appoint interviews with the managers due to the covid-19 safety reasons, therefore, should

schedule virtual interviews. Another obstacle would be to understand the financial

statements, as it is complex and difficult to analyse real-life business financial data. However, I

will seek the help of BJPL’s accountants and my teacher for guidance.

Action Plan/timeline

Action Month/2021-22

Read the BM guide and go through a few sample IAs Sept-2021

Search for organizations suitable for IA’s Sept -2021

Choose the most suitable organization Oct-2021

Write the research question and research proposal Oct-Nov-2021

Conduct primary research (interviews and survey) Nov-2021

Conduct secondary research Nov-2021

Start the introduction and methodology Nov-Dec-2021

Complete the main research and findings Nov-Dec-2021

Analyse the primary and secondary data with tools Nov-Dec-2021

Finish conclusions and recommendations Dec-2021

Submit the first draft Dec-2021

Work on feedback given Dec-Jan-2021-22

by the teacher
Submission of the final IA. Jan-2022

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Actions Months/Year
Sept-21 Oct-21 Nov-21 Dec-21 Jan-22
Read the BM guide and go through sample IAs
Search for few organizations suitable for an IA
Choose the most suitable organization and meet the
owner
Write the research question and research proposal
Conduct primary research
Conduct secondary research
Start the introduction and methodology
Complete the main research and findings
Analyse the primary and secondary data
Finish conclusions and recommendations
Submit the first draft
Work on feedback given
Submission of the final IA.

Modifications made:

• The Primary research was extended until November because it was time-consuming to
conduct the interviews and survey customers.
• Changes in analytical tools to better investigate the research question.

-------------------------------------------------
500 words

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 Acknowledgements

I take this opportunity to thank the CEO of Bhulaxmi Jewellers Private Limited, Mr.
Bharatkumar Dalchandji Kothari.

The Directors, Mr. Bharatkumar Dalchandji Kothari, Mr. Dalchand Ratanchandji Kothari and
Mrs. Sangeeta Bharat Kothari, as well as the company’s managers and employees to allow me to
conduct interviews and receive information about the company.

This research would not have been possible without my business management teacher. I would
like to convey my heartfelt appreciation for all the guidance.

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 Table of Contents

Executive summary……………………………………………………… Page 7

Introduction……………………………………………………………….. Page 8

Research question…………………………………………………………. Page 8

Methodology employed…………………………………………………… Page 9-10

Main Results and findings……………………………………………….. Page 11-15

Primary data

Secondary data

Analysis and discussion………………………………………………… Page 16-23

Analysis 1: Primary data

Analysis 2: Financial statements

Analysis 3: Ansoff matrix

Analysis 5: Investment appraisal

Analysis 6: Force field analysis

Conclusions……………………………………………………………... Page 23

Recommendations……………………………………………………… Page 24

References and bibliography…………………………………………… Page 25

Appendices………………………………………………………………. Page 26-35

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 Executive Summary (200 words)

Business growth is the key to success to any business, hence BJPL is no exception to this. With
robust sales revenue and profit margin over the past few years, BJPL decided to expand its
operations to meet increasing demand, hence the RQ investigated is ‘Should Bhulaxmi Jewellers
Private Limited (BJPL) expand the present store as an internal growth strategy to meet increasing
demand for jewelries’?

Primary data was collected through interviews with directors and customers of BJPL. Existing
customers found to be highly satisfied. Secondary data was collected from financial statements
provided, which revealed a rise in sales (20 %).

Tools like Ansoff matrix, investment appraisal, force field analysis, were used to analyse the
data. Ansoff matrix supported that BJPL should use market penetration growth strategies as a way
of expansion. Force field Analysis indicates the driving forces are stronger than the restraining
forces (16:14).With the help of tools and theories, this investigation concluded and
recommended that BJPL should expand the present store, ( continue to sell gold and silver
jewelry) which would help in growth, increasing sales revenue and profit margin.

The dynamic nature of the business environment was not investigated in depth. Hence, further
research is recommended.

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 1. Introduction

Bhulaxmi Jewellers Private Limited (BJPL) incorporated in the year 20091 and located in Mumbai,
India. It is a retail company which sells gold and silver jewellery and ornaments. BJPL is famous for its
design, quality, innovation, and customer service. BJPL sells ready gold jewelries and ornaments. BJPL
also takes orders from customers are made to orders. The financial statement 2 of BJPL revealed that,
sales revenue and profit margins have been grown by around 50% 3(except COVID period). General
demand for gold also has been increasing 3

To take advantage of the growing demand, the management of BJPL has been planning to expand its
current store. Hence, to answer the research question, the following two options will be evaluated and
BJPL will be recommended using business management tools and theories:

Option 1: Expand the current store (continue to sell gold and silver jewellery and ornaments)
Option 2: Expand the current store (continue to sell gold and silver jewellery and ornaments + Diamond).

This led to the following research question.

2. Research question
Should Bhulaxmi Jewellers Private Limited (BJPL) expand the present store as an internal growth
strategy to meet increasing demand for jewelries?

1 1
Www.tofler.in. "BHU LAXMI JEWELLERS PRIVATE LIMITED." Tofler, 8 Dec. 2021, www.tofler.in/bhu- laxmi-
jewellers-private-limited/company/U52393MH2009PTC192662.
2
Ref to the summary of financial statements, page
3
Ref to graph, Appendix
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 3. Methodology and Procedure

To answer the research question, three interviews and one survey was conducted. Secondary data
taken from the books of BJPL.

Primary and secondary data

Primary Research was majorly conducted through interviews with BJPL directors4, Mr.
Bharatkumar Dalchandji Kothari, Mr. Dalchand Ratanchandji Kothari and Mrs. Sangeeta Bharat
Kothari, and with finance director5 Questionnaires6 were given to existing and prospective
customers so to understand their reviews about the company.

While secondary data7 was taken from financial statements, sales revenue, annual report and
online data from the past years (2016-2021) to measure their financial status. Business
management textbooks with information about business concepts, tools and theories is used as a
reference for the study.

Analytical tools used:

Profitability ratios were calculated to be aware of the financial position of BJPL. Analytical tools
like Ansoff Matrix8 are to consider different growth strategies, Force field analysis9 is used to
understand factors which are in favor or against the new options, Investment Appraisal10 to
calculate the returns on the investment to estimate the profitability of both options.

4
Refer to Appendix 1 - interview transcript
5
Refer to Appendix 2 – interview transcript
6
Refer to Appendix 4 - questionnaire to existing customers.
7
Secondary data – summary of financial statements page 15
8
Ansoff matrix page 18
9
Force field analysis page- 23
10
Investment appraisal 19-21

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 Reflective thinking

During the process of writing the report, the initial RQ has been slightly modified to make the
research question forward looking and focused. Data and analytical tools always have some
limitations. For instance, small sample size. This has really distorted the outcome of the
research. Discount factor chosen for NPV calculation is based on inflation rate4 and bank
interest. These two are not constant. Hence NPV is not completely correct.

4
Inflation rate in India, refer to Appendix 7
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 4. Main Results and Findings

Key findings 1: Primary data

Questionnaire given to existing customers

1) For how long have you been a customer of Bhulaxmi Jewellers Private Limited?

Graph 1: Questionnaire given to existing customers

2) How would you rate the Product Quality?

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 Graph 2: Questionnaire given to existing customers
3) How would you rate the range of Products?

Graph 3: Questionnaire given to existing customers

4) How often do you visit Bhulaxmi Jewellers Private Limited to purchase?

Graph 4: Questionnaire given to existing customers

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5) How likely would you recommend the company to others?

Graph 5: Questionnaire given to existing customers

6) How satisfied are you with the service provided by BJPL in terms of meeting demands?

Graph 6: Questionnaire given to existing customers

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7) How would you rate our Pricing?

Graph 7: Questionnaire given to existing customers

8) How well did our products meet your overall expectations?

Graph 8: Questionnaire given to existing customers

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 BJPL is also considering the option of retailing diamond, along with gold.

Key findings 2: Secondary data11

Year Sales Revenue Cost of goods Gross Profit Overhead Net Profit (INR)
(INR) sold (INR) (INR) Expenses (INR)
2016-2017 25,12,00,000 22,52,00,000 2,60,00,000 80,00,000 1,80,00,000

2017-2018 27,30,00,000 24,50,00,000 2,80,00,000 1,00,00,000 1,80,00,000

2018-2019 30,20,00,000 26,80,00,000 3,40,00,000 90,00,000 2,50,00,000

2019-2020 38,00,00,000 34,36,00,000 3,64,00,000 64,00,000 3,00,00,000

2020-2021 28,40,00,000 25,60,00,000 2,80,00,000 80,00,000 2,00,00,000

Table 1: Secondary data - Sales revenue, Cost and Profit

Summary of Financial Statements

400000000

350000000

300000000

250000000

200000000

150000000

100000000

50000000

0
2016-2017 2017-2018 2018-2019 2019-2020 2020-2021

Sales Revenue (INR) Cost of goods sold (INR) Gross Profit (INR) Overhead Expenses (INR) Net Profit (INR)

Figure 1: Summary of Financial Statements

11
Secondary data collected from the books of BJPL.

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 5. Analysis and Discussion

As this research is to investigate the choice of expanding the current store, it is necessary to
analyse to what extent does the primary data support the research question. Two options being
considered are:

Option 1: Expand the current store (continue to sell gold and silver jewellery and ornaments)

Option 2: Expand the current store (continue to sell gold and silver jewellery and ornaments
+ Diamond)

Analysis 1: Analysis of questionnaire given to customers

Around 22.5% of customers (ref to graph 1) have been shopping from BJPL for over 5 years,
this portrays brand loyalty with 85% of the customers satisfied with the services and products
provided. About 40% of purchases made by customers are made during special occasions, and it
is good at meeting customer requirements, this shows that BJPL has used effectively used market
research to understand the wants of customers. More than 80% customers are likely to recommend
the company to others. 70% of customers rated the pricing as 8 or above. 35% customers feel that
BJPL products are excellent in meeting overall expectations.

However, the sample taken was for 100 customers and only 40 responded. The responses could be
biased. Hence, this sample size could be insufficient. Therefore, the answer to the research question
may not be completely valid.

Analysis 2: Analysis of Financial data

Year Gross Profit Margin Net Profit Margin

(GPM = Gross profit/Sales x 100) (NPM = Net profit/Sales x 100)
2016-2017
10.35% 7.17%
2017-2018
10.26% 6.60%
2018-2019
11.26% 8.28%
2019-2020
9.58% 7.90%
2020-2021 9.86% 7.04%

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 Table 2: Gross Profit Margin and Net Profit Margin12

GPM and NPM

11.50% 9.00%
8.00%
11.00%
7.00%
Percentage (%)

10.50% 6.00%
5.00%
10.00%
4.00%
9.50% 3.00%
2.00%
9.00%
1.00%
8.50% 0.00%
2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
GPM 10.35% 10.26% 11.26% 9.58% 9.86%
NPM 7.17% 6.60% 8.28% 7.90% 7.04%

GPM NPM

Figure 2: Gross Profit Margin and Net Profit Margin

The table and graph above show the gross profit margins and net profit margins for Bhulaxmi

Jewellers Private Limited for the past 5 years. The Gross Profit Margin has been constant, i.e.,
10% even though there was a lockdown due to Covid19. The net profit, has been persistent (7.17%
to 7.04%) as a whole showing how BJPL has been even able to control its overhead expenses
allowing it to earn greater profits if it increases its production capacity.

However, Financial ratios are calculated using historical data, so past performance may not be
indicative of future results. Non-financial factors (STEEPLE) are not taken into account in ratios,
so they are not completely valid.

12
Refer to the table 1, page 15 for Sales and profit figures

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Analysis 3: Analysis of growth using Ansoff Matrix:

Figure 3: Ansoff Matrix

Ansoff matrix is an analytical tool to devise various product and market growth strategies for future
success. BJPL is planning to expand the current store i.e., market penetration. This is a low-risk
strategy, as BJPL focuses on selling existing products in existing markets. This strategy seeks to
increase market share of current products. Another advantage is that market research expenditure
of BJPL will reduce as they are familiar with the industry.

The other option is product development i.e., introduction of diamond. This strategy is a
medium-risk growth strategy, which relies on brand development.

However, market penetration can lead to aggressive reactions, like price wars thereby affecting
profits. Introduction of diamond, will be profitable depending on brand identity as the present
opinions should be considered. Ansoff matrix summarizes BJPL’s options and does not consider
quantitative data to provide a solution.

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Analysis 4: Investment Appraisal

The purpose of is this to know worthiness of the proposed investment in two different options
.
Year Option 1 Net Cashflow (INR million) Option 2 Net Cashflow (INR million)
0 (200 million) (280 million)
1 85 million 88 million
2 90 million 90 million
3 92 million 93 million
4 95 million 96 million
5 98 million 97 million
Table showing initial investment and estimated net cash flows13

Calculation of payback: Option 1

Year Option 1 Cumulative cashflow
0 (200) (200)
1 85 (115)
2 90 (25)
3 92 25
4 95 25/92 x12 =3.2 months
5 98
Payback period = 2 years and 3. 2 months (or 2 years and 4 months)

Calculation of payback: Option 2

Year Option 1 Cumulative cashflow
0 (280) (280)
1 88 (192)
2 90 (102)
3 93 (9)
4 96 9
5 97 9/96 x12 = months 1.12 months

Payback period = 3 years and 1.12 2 months (or 3 years and 2 months)

13
Initial investment and net cash estimated with the help of finance head of BJPL

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The Payback period shows that the investment will be paid back in 2 years & 3 months. The
initial investment is 20,00,00,000 INR. The cash flow is only estimated and can be affected by
unexpected changes in demand.

Calculation of ARR: Option 1

Year Cash flows (INR) • Total cashflows: 460 million

0 (200 million)
1 85 million
2 90 million
3 92 million
4 95 million
5 98 million
• Total profit = 460 million – 200 million = = 260
million
• Average profit = 260/5 = 52 million
• ARR = 52/200x 100 = 26%

Calculation of ARR: Option 2

Year Cash flows (INR) • Total cashflows: 464 million

0 (280) million
1 88 million
2 90 million
3 93 million
4 96 million
5 97 million
• Total profit = 460 million – 280 million = = 184
million
• Average profit = 184/5 = 36.8million
• ARR = 36.8/280x 100 = 13.14 %

Calculation of Net Present Value (NPV) – Option 1

Year Net Cash Flow (INR) Discount factor at Present Value (INR)
8%14
0 200 million 1 (200 million)
1 85 million 0.926 78.71
2 90 million 0.857 77.13
3 92 million 0.794 73.04
4 95 million 0.735 69.82
5 98 million 0.681 66.73
NPV = 165.43 million
Table 3: Calculations of Net Present Value
NPV shows a positive value of 165,451,000 INR indicating appreciation in value of investment,
hence, encouraging BJPL to proceed with the expansion. However, BJPL should not entirely rely
on NPV figures because interest rates may rise, lowering the estimated value.

14
Discount factor 8 % has been decided based on bank interest rate and current inflation rate in Mumbai.

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Calculation of Net Present Value (NPV) – Option 2

Year Net Cash Flow (INR) Discount factor at Present Value (INR)
8%
0 (280) million 1 (280)
1 88 million 0.926 81.48
2 90 million 0.857 77.13
3 93 million 0.794 73.84
4 96 million 0.735 70.56
5 97 million 0.681 66.05
NPV = 89.36 million

Summary of all calculations (Payback, ARR and NPV)

Option 1 Option 2
Payback 2 years and 4 months 3 years and 2 months
ARR 26 % 13.14%
NPV INR 165.43 million INR 83.16 million
Table showing the summary of Payback, ARR and NPV

From the above calculations, it is clear that BJPL should extend its store by selling more of gold
and silver jewelries. This can be considered as market penetration (Ansoff matrix15). This is also
supported by primary data (ref to graph 1 and 2).
However, initial investment and annual cashflows are estimated. Hence there are chances of
inaccuracy and also much influenced by external factors (STEPLE). For instance, competitors
may introduce new designs, that may affect sales of BJPL.

Integration of data and tools

Primary research supported option 1 (refer to graphs 4,6 and 8). Payback period is shorter for
option 1 compared to option 2 (gap of 8 months). Initial investment is also higher for option 2
(280 compared to 200 million). ARR and NPV is better for option 1. Thus, Force field analysis
has been done to validate this option.
However, these figures are estimated and hence, there might be some bias and subjectivity for the
study.

15
Refer to Ansoff matrix, page 18

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 Analysis 5: Force Field Analysis (Option 1 only)

Force field analysis for Bhulaxmi Private Limited

High market share Competition will affect revenue and

4 4
profit

Option 1: Expand the current store

(continue to sell gold and silver
Increase sales revenue and profit High initial investment
5 4

t)
Caters to the demand Requirement of employees
d
3 3
ll
j

Increases brand awareness 3

4 Quality could be compromised

Forces for: 16 points Forces against: 14

Figure 4: Force field analysis16

Expanding the present store will help boost sales revenue and provide a vast range of service
with quality products, an objective of the company, due to the increased sale of jewellery. This
increase has happened due to increase in demand of jewellery. This will increase the number of
repeated customers. However, the company will face high costs for infrastructure and
inventory (jewellery)for the store. BJPL has been trying to reduce labor but expansion of
current store will result in requirement of more labor and employees. Analysis demonstrates
that the driving forces exceed restraining forces and hence, BJPL should expand

16
Points are assigned on a scale 0- 5, and these are assigned on the basis of data collected through interviews.
Refer to appendix for graph of demand

Page 22 of 35
the present store. However, all the data for the analysis is based on the directors’ opinions, not
facts, and can be biased.

6. Conclusions

As mentioned in the introduction section of the written report, this research project evaluates two
growth options and recommends the best option for BJPL.

Option 1: Expand the current store (continue to sell gold and silver jewellery and ornaments)
Option 2: Expand the current store (continue to sell gold and silver jewellery and ornaments
+ Diamond)
Primary data:
Primary data revealed that, the existing customers are highly satisfied with BJPL. This means customers
continue to buy from BJPL.
Secondary data:
Sales revenue of the BJPL has been increasing (except COVID 19 year). Hence this simply
shows that the financial position of the BJPL is very strong. As per the interview, BJPL has
huge cash reserves. Only 30- 40 % of the initial capital (INR 200 million) needs to be borrowed.
Ansoff matrix
The growth strategy is considered as market penetration (Option 1), while its product
development (Option 2). For BJPL, market penetration found to be less risky due to its brand
and goodwill among the customers and also customers have shown a very strong association
with BJPL.
Investment appraisal
Payback, ARR and NPV for both the options were calculated. Financially, all three are in favor
of the Option 1. Payback 2 years and 4 months (Option 2: 3 years and 2 months), ARR 26 %
(Option 2: 13.14 %), and NPV INR 165.43 million. (Option 2: 83. 16 million)
Force field analysis.
The option was further analysis using force field analysis. Forces for change is greater than the
forces against the change (16: 14).
Thus, this investigation concludes that, BJPL should expand its operations (Option 1)

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7. Recommendations
Answer to the RQ
From the above analysis, discussions and conclusions, the answer to the research question is that
BJPL should expand its operations (Option 1: Expand the current store (continue to sell gold and
silver jewellery and ornaments) as it increases sales revenue, profit margin and eventually its
presence in the jewellery market. However, other recommendations include:
• Since, jewellery market is becoming competitive, BJPL has to study external factors
(STEEPLE) and their influence on sales and profit.
• BJPL should invest more on R &D to introduce more and trendy designs.
• Improve digital experience for customers (web and mobile applications)

Areas of further study

Though the research concluded that, BJPL should expand its current operations, this research
did not calculate estimated sales revenue and profit margin. This has to be done the
management of BJPL. External factors (STEEPLE) always influence very much. Hence in-
depth study of the impact of external factors is needed.

Limitations and Reflective thinking

There were limited responses to the survey (40%) As a result, the obtained result may not be
completely accurate. The business tools used in this analysis are theoretical and may not be
applicable to real-world businesses, such as investment appraisal, whose values are estimated and
thus the expected returns are just predictions, and investment appraisal, for which the NPV's
discount factor is 8%, based on current data, but these tools may not be reliable because the
external environment is always changing. Potential bias and obsoleteness in responses from the
Interview may hinder the accuracy of the report.

2000 words

Page 24 of 35
 References and Bibliography

Websites referred:

• www.tofler.in. "BHU LAXMI JEWELLERS PRIVATE LIMITED." Tofler, 8 Dec. 2021,

www.tofler.in/bhu-laxmi-jewellers-private-limited/company/U52393MH2009PTC192662.(
accessed 21 Nov 2021)

• "Fastidious Study of Ansoff Matrix and Its Application." SpeakingNerd, 18 Nov. 2021,
speakingnerd.com/strategy/strategy-models/ansoff-matrix. ( accessed 16 Dec 2021)

• "Bhulaxmi Jewellers Pvt Ltd, Parel - Jewellery Showrooms in Mumbai - Justdial." Justdial
US, 18 Apr. 2019, www.justdial.com/Mumbai/Bhulaxmi-Jewellers-Pvt-Ltd-Near-Parel-
Bhoiwada-Naka-Parel/022P5440346_BZDET. ( accessed 12 Jan 2022)

• "Force Field Analysis: Analyzing the Pressures For and Against Change." Management
Training and Leadership Training - Online,
www.mindtools.com/pages/article/newTED_06.htm. ( accessed 28 Nov 2021)

• "Gold Imports by India Hit Decade-high As Jewelry Demand Doubles - Times of India." The
Times of India, 28 Jan. 2022, timesofindia.indiatimes.com/business/india-business/gold-
imports-by-india-hit-decade-high-as-jewelry-demand-doubles/articleshow/89171278.cms. (
accessed 31 Jan 2022)

Books referred:

• Hoang, Paul. Business and Management. 3rd ed., 2014.

• Muchena, Martin M., et al. IB Business Management Course Book 2014 edition: For the IB
Diploma. OUP Oxford, 2014.

Page 25 of 35
 Appendices

Appendix 1:
Interview with Director of BJPL
Date of interview: November 2021
Place of interview: BJPL office
Purpose: To collect information about; the company’s mission and vision, and performance in the
past years.

---------------------------------------------------------------------------
1. Could you give a brief overview of the company?
The company was established originally in 1997. It’s situated in Mumbai, Maharashtra.
The belief that customer satisfaction is as important as their products and services, have
helped this establishment garner a vast base of customers, which continues to grow by the
day.

2. Have you been successful in meeting your objectives?

Without a doubt. I am pleased to report that we have consistently provided high-quality
products and services while maintaining our integrity and principles.

3. What has your growth been in the past 5 years?

At an average of 5%.

4. How is your market performance and position for the past 5 years?
Our performance has been well and so we managed to have a high market share. Our
performance has been phenomenal and we are hoping to increase it by expansion of the
business.

5. What is the growth strategy you are planning to impose?

This company plans to expand its product and service offerings in the near future in order
to better serve a larger customer base.

6. What are the strengths that make your company stand out?
We offer a diverse range of products and services to meet our customers' diverse needs.
Thus, we have a good recognition and market share. The trust that customer satisfaction
is as important as products and services, has made us stand out from other competitors.

Page 26 of 35
Appendix 2:
Interview with production and finance director of BJPL
Date of interview: November 2021
Place of interview: BJPL office
Purpose: To collect information about capital and investment requirements
---------------------------------------------------------------------------
1. How have the sales revenue been recently?
The revenue for BJPL has constantly been rising. This motivates us to achieve more.

2. What are your pricing strategies?

First and foremost, we need to know how much it will cost us. Break-even analysis and
costing must be completed. Then we must determine how much we earn and how much it
costs us. Labor costs, energy costs, overhead costs, and fixed costs must all be taken into
account.
3. How much initial investment is required for expanding the business?
The investment in order to expand is 20,00,00,000 INR

4. How long will it take to get back the money after investing for expansion?
2 years and 3 months

5. How many employees work in the company?

At present we have 24 workers.

6. How do you expect the expansion to impact your total revenues and profit margins?
Expansion is necessary for survival and the growth of a customer base. Introduction of
new product, will widen the customer base. We can't be in the market unless we invest.
We must continue to improve and upgrade ourselves.

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Appendix 3: Questionnaire given to existing customers

Date of survey: November 2021

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Responses:

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Appendix 4:

Financial Ratios
𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝
Gross profit margin= × 100
𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔 𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔

Net Profit Margin =

𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟𝑟 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏𝑏 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝 𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠𝑠 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝
𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔 𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔𝑔
× 100

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Appendix 5: Investment Appraisal

Payback Period = 𝑖𝑖 𝑖𝑖𝑖𝑖𝑖𝑖 𝑖𝑖 𝑖𝑖 𝑖𝑖𝑖𝑖𝑖𝑖 𝑖𝑖 𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖 𝑖𝑖 𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖 𝑖𝑖 𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑖𝑖 𝑖𝑖 / 𝑖𝑖𝑖𝑖 𝑖𝑖𝑖𝑖𝑖𝑖𝑎𝑎𝑎𝑎𝑖𝑖𝑖𝑖𝑖𝑖 𝑐𝑐𝑐𝑐𝑖𝑖𝑖𝑖𝑖𝑖 ℎ𝑓𝑓𝑓𝑓𝑖𝑖 𝑐𝑐𝑐𝑐𝑓𝑓𝑓𝑓 𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑓𝑐𝑐𝑐𝑐𝑖𝑖𝑖𝑖 𝑖𝑖 𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖 𝑖𝑖 𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖

Net Present Value = total present values - original cost

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Appendix 6: Demand for gold

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Aappendix 7: Inflation rate

Source: https://indianexpress.com/article/explained/us-inflation-impact-india-7620380/

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