Professional Documents
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A Business Development Plan report submitted to SRM Institute of Science and Technology
for the partial fulfilment of the requirements for the degree of
BACHELOR OF BUSINESS ADMINISTRATION
Submitted by
TIKKA SIVA SAMPATH
SWAMY Registration No:
RA2151001010014 Under the
guidance of Dr.SRIRAM
Assistant Professor
Department of Business Administration
SRM Institute of Science and Technology
Kattankulathur – 603203
COLLEGE OF MANAGEMENT
Department of Business Administration
SRM Institute of Science and Technology
Kattankulathur – 603203
APRIL-2023
CERTIFICATE
This is to certify that the Business Development Plan work entitled “NEW-GEN
ELECTRONICS” submitted by TIKKA SIVA SAMPATH SWAMY, Registration No.:
RA2151001010014 for the partial fulfilment of Bachelors of Business Administration, as per
my observation, it was found that the report has not been previously formed or copied from
any other material for the award of any Degree, Diploma, Associate ship, Fellowship or other
similar title. The report represents independent work on the part of the candidate with the
guidance of the supervisor.
Place : Chennai
Date :
Signature of Guide:
I hereby declare that the Business Development Plan report entitled “NEW-GEN
ELECTRONICS” submitted by me for the award of the degree of Bachelor of Business
Administration, College of Management a record of the study done by me and that the work
has not formed the basis for the award of any Degree, Diploma, Associateship, Fellowship or
other similar title.
Place : Chennai
Date:
Thanks to God Almighty, parents and my friends for supporting me in every step to complete
my report successfully.
2.6 Vision 4
2.7 Mission. 5
MARKET ANALYSIS
OPERATIONAL PLAN
6.1 Manufacturing processes.
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6.2 Plant location, layout.
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6.3 Inventory.
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6.4 Procurement and logistics.
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6.5 Quality control.
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6.6 Credit policy.
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FINANCIAL PLAN
7.1 Cash Flow Projections or Statements.
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7.2 Profit and Loss Projection.
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7.3 Projected Balance Sheet.
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7.4 Break Even Analysis.
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7.5 Contingency Plans.
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APPENDICES (SUPPORTING DOCUMENTS etc.)
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8
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BIBLIOGRAPHY
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Chapter-1
EXECUTIVE SUMMARY
1.1 Over View Of NEW-GEN
Overall, the smartphone industry is a dynamic and constantly evolving sector of the
technology industry. It is driven by innovation, consumer demand, and technological
advancements, and is expected to continue to grow and evolve in the years to come.
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1.2 Key to success
1. Innovation: Innovation is essential for success in the smartphone industry. Companies
that are able to develop new technologies and features that set them apart from the
competition are more likely to succeed. For example, companies that were early
adopters of fingerprint sensors, facial recognition, or dual camera systems were able to
differentiate themselves in the market.
2. Quality: Quality is critical for success in the smartphone industry. Consumers expect
high-quality devices that are reliable, durable, and perform well. Companies that invest
in high-quality components and manufacturing processes, and that prioritize quality
assurance and testing, are more likely to succeed.
3. Brand recognition: Brand recognition is an important factor in the smartphone industry.
Companies that have strong brand recognition are more likely to attract customers and
build loyalty. Building a strong brand requires a focus on customer experience,
marketing, and reputation management.
4. Pricing: Pricing is an important factor in the smartphone industry, as it affects both
sales and profit margins. Companies that are able to offer high-quality devices at a
competitive price point are more likely to succeed. However, pricing strategies must
also take into account the cost of production, research and development, and marketing.
5. Marketing and distribution: Marketing and distribution are critical for success in the
smartphone industry. Companies that invest in effective marketing strategies, such as
social media, influencer partnerships, and experiential marketing, are more likely to
attract and retain customers. Effective distribution strategies, such as partnerships with
carriers and retailers, are also important for reaching a wide audience.
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Chapter-2
BUSINESS/COMPANY DESCRIPTION
2.1 Company name
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2.3 Head office location
Location- Dr.A.S. Rao Nagar Rd, ECIL, Kapra, Secunderabad, Telangana 500062
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*To reach most number of sales (2 lakhs) in a year.
*To achieve the trust of customers by communication and providing them enough
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information about product to increase the market through customers.
2.7 Mission
*Increase in sales.
*To achieve greater achievements and success.
*To satisfy and cover the needs of customer.
*Increase in marketing.
2.8 Company goals
*Customer satisfaction
*Creativeness and Innovation
*Expansion
*To deliver quality and comfortable products that covers the customer needs.
*Increase the profits.
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Chapter-3
MANAGEMENT TEAM AND ORGANIZATION
3.1 Organization chart
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3.2 Key management and board of directors
In general, the key management and board of directors for a new smartphone company would
likely include experienced executives and industry experts who can guide the company's
growth and success.
The key executives for a new smartphone company might include:
A. CEO: The chief executive officer is responsible for the overall strategic direction of the
company. They oversee all aspects of the business, from product development to
marketing to finance.
B. CTO: The chief technology officer is responsible for the company's technological vision,
innovation, and development. They lead the research and development of new products
and technologies.
C. CFO: The chief financial officer is responsible for the company's financial strategy and
management. They oversee the company's financial operations, including accounting,
budgeting, and fundraising.
D. CMO: The chief marketing officer is responsible for the company's marketing
strategy and execution. They oversee the development of the company's brand,
messaging, and advertising.
The board of directors for a new smartphone company might include:
1. Founder(s): The founder(s) of the company may also be on the board of directors.
They bring a unique perspective and experience to the board, as they are intimately
familiar with the company's history, vision, and goals.
2. Industry experts: The board of directors may include industry experts who have
experience in the smartphone industry. They can provide valuable insights and guidance
to the company's management team.
3. Investors: Investors who have provided funding for the company may also sit on the
board of directors. They have a vested interest in the company's success and can help
guide its growth.
4. Independent directors: Independent directors are individuals who have no direct ties to
the company or its management team. They can provide an objective perspective and
ensure that the company is acting in the best interest of its stakeholders.
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3.3 Responsibilities and competencies of the management team
RESPONSIBILITIES:
A. Setting and executing the company's strategy: The management team should be
responsible for setting the company's overall strategy and executing it effectively. This
includes identifying key target markets, developing product roadmaps, and
establishing partnerships with suppliers, distributors, and other key stakeholders.
B. Managing operations: The management team should oversee day-to-day operations,
including product development, supply chain management, sales, and marketing. They
should ensure that the company is meeting its objectives and is operating efficiently.
C. Managing finances: The management team should be responsible for managing the
company's finances, including budgeting, financial forecasting, and fundraising. They
should ensure that the company has sufficient capital to fund its operations and growth.
D. Building a strong team: The management team should be responsible for recruiting and
managing a talented team of employees who can help the company achieve its goals.
COMPETENCIES:
1. Industry expertise: The management team should have deep knowledge of the
smartphone industry, including trends, competitors, and key players. They should be
able to identify new opportunities and anticipate changes in the market.
2. Leadership: The management team should be strong leaders who can inspire and
motivate their team to achieve their goals. They should be able to communicate
effectively and provide direction and guidance when needed.
3. Strategic thinking: The management team should be able to think strategically and
develop long-term plans that will help the company achieve its goals. They should
be able to anticipate challenges and develop contingency plans to address them.
4. Financial acumen: The management team should have a strong understanding of
financial management and be able to make sound financial decisions that will
benefit the company. They should be able to analyze financial data and make
informed decisions about investments, fundraising, and other financial matters.
5. Innovation: The management team should be innovative and able to develop new
products and technologies that will differentiate the company from its competitors.
They should be able to anticipate changes in the market and develop new products
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and services that meet customer needs.
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3.5 Compensation and other employee agreements
The compensation and other employee agreements for a new smartphone industry will
depend on various factors, such as the size of the company, the level of experience and
expertise of the employees, and the industry standards.
A. Competitive Salaries: A new smartphone industry should offer competitive salaries to
attract and retain top talent. The compensation package should reflect the employee's
experience, qualifications, and responsibilities.
B. Performance-Based Incentives: Incentives like bonuses, stock options, or profit- sharing
plans can motivate employees to achieve the company's objectives and goals.
C. Benefits: The company should offer comprehensive benefits such as health, dental,
vision, and retirement plans to attract and retain employees.
D. Work-Life Balance: A new smartphone industry should encourage work-life balance by
offering flexible work arrangements like remote work or flexible schedules.
E. Employment Agreements: New employees should sign agreements that outline the
terms of their employment, including compensation, job duties, performance
expectations, confidentiality, and non-compete agreements.
F. Equity Compensation: In addition to salaries, a new smartphone industry may offer equity
compensation to employees, such as stock options or restricted stock units, as a way to
align the interests of employees with the long-term growth of the company.
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Chapter-4
PRODUCTS AND SERVICES
4.1 Product descriptions and technical specifications
Product descriptions should be concise and informative, highlighting the unique features and
benefits of the smartphone. Here are some key elements to include in the product description:
1. Brand and Model: Start with the brand and model name of the smartphone.
2. Key Features: Highlight the key features of the smartphone that set it apart from the
competition, such as the camera quality, battery life, or display.
3. Design: Describe the design of the smartphone, including the materials used and any
unique design elements.
4. Display: Detail the size and resolution of the display, as well as any advanced features
like high refresh rates or HDR support.
5. Camera: Provide information on the camera system, including the number of lenses,
megapixel count, and any advanced features like optical zoom or image stabilization.
6. Battery: Provide details on the battery life, including the capacity and estimated usage
time.
7. Software and Operating System: Describe the software and operating system that the
smartphone uses, highlighting any unique features or enhancements.
Technical specifications should be more detailed and provide specific information on the
components and performance of the smartphone. Here are some key elements to include in
the technical specifications:
1. Processor: Detail the processor used in the smartphone, including the clock speed,
number of cores, and architecture.
2. RAM and Storage: Provide information on the amount of RAM and storage available
on the smartphone.
3. Display: Provide detailed specifications on the size, resolution, and type of display
used in the smartphone.
4. Camera: Provide detailed specifications on the camera system, including the
megapixel count, number of lenses, and any advanced features like optical zoom or
image stabilization.
5. Battery: Provide detailed specifications on the battery, including the capacity and
estimated usage time.
6. Connectivity: Detail the connectivity options available on the smartphone, including
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support for cellular networks, Wi-Fi, and Bluetooth.
7. Sensors: Provide information on the sensors used in the smartphone, including
accelerometers, gyroscopes, and proximity sensors.
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4.3 Competitive advantages and unique selling propositions
1. Innovative Features: One way to differentiate a new smartphone is by offering
innovative features that are not available on other devices. For example, a smartphone
that offers a foldable screen, a high-quality camera, or advanced facial recognition
technology could attract customers looking for cutting-edge technology.
2. Performance: Another key factor that can set a smartphone apart is performance. A
device that has faster processing speeds, longer battery life, and better graphics
performance can be very appealing to customers who use their phones for gaming,
streaming, or other high-performance applications.
3. Design: A unique and attractive design can be a selling point for a new smartphone.
For example, a device that has a sleek, slim profile or uses premium materials like
glass and metal could appeal to customers who want a phone that looks as good as it
performs.
4. Brand Recognition: Established brands in the smartphone industry have built up a
reputation and customer loyalty over time. A new entrant could differentiate itself by
focusing on a specific niche or target market, such as budget-conscious consumers or
those looking for a phone that is particularly durable or rugged.
5. Price: Finally, price is always a factor when it comes to smartphones. Offering a
competitive price point could help a new smartphone stand out in a crowded market.
For example, a device that offers high-end features at a lower price point than
competitors could be appealing to budget-conscious customers.
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4.4 Patents, licenses and trademarks and their terms of use
1. Patents: Patents are legal protections for inventions, including new technologies or
processes. In the smartphone industry, patents can cover everything from hardware
design to software algorithms. The term of a patent is typically 20 years from the date
of filing, and during that time, the patent holder has the exclusive right to use and
license the invention.
2. Licenses: A license is a legal agreement that allows one party to use another party's
intellectual property in exchange for payment or other compensation. In the
smartphone industry, companies may license patented technologies or other
intellectual property from one another to access new features or improve their
products. The terms of a license agreement can vary widely, but typically involve a
payment or royalty fee and restrictions on how the licensed intellectual property can
be used.
3. Trademarks: Trademarks are symbols, names, or other marks that distinguish one
company's products or services from another. In the smartphone industry, trademarks
can include brand names, logos, and other design elements that help to build brand
recognition and customer loyalty. The term of a trademark can be indefinite as long as
the owner continues to use and renew it.
It's important for companies in the smartphone industry to be aware of these intellectual
property rights and their terms of use, both to protect their own innovations and to avoid
infringing on the rights of others. Companies may need to apply for patents or trademarks to
protect their own ideas, and may need to negotiate license agreements to access the
intellectual property of others. Failing to respect intellectual property rights can result in legal
action, fines, or other penalties, so it's essential to take these issues seriously.
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4.5 Regulation and industrial standards
1. Safety Regulations: Smartphones are subject to a range of safety regulations that
cover issues like battery safety, electromagnetic radiation, and product labeling. For
example, many countries have adopted standards for minimum distances between
smartphones and the human body to limit radiation exposure. Compliance with these
regulations is essential to ensure that products are safe and will not harm consumers.
2. Privacy Regulations: In recent years, there has been growing concern about the
privacy implications of smartphones and the data they collect. Many countries have
introduced regulations or guidelines that require smartphone manufacturers to be
transparent about the data they collect, how it is used, and how it is protected.
Compliance with these regulations can help to build consumer trust and avoid
potential legal liabilities.
3. Competition Regulations: Smartphones are also subject to regulations related to fair
competition and antitrust. For example, some countries have laws that prohibit
companies from engaging in monopolistic practices or unfair competition.
Compliance with these regulations is important to avoid legal challenges and
reputational damage.
4. Industrial Standards: Finally, the smartphone industry is subject to a range of
industrial standards that cover issues like interoperability, performance, and design.
These standards are often developed by industry associations or standards bodies, and
compliance with them can help to ensure that products are compatible with other
devices and meet minimum performance requirements.
In conclusion, the smartphone industry is subject to a variety of regulations and standards that
are designed to promote safety, protect consumer privacy, and ensure fair competition.
Compliance with these regulations is essential for companies to avoid legal liabilities, build
consumer trust, and maintain their reputation in the marketplace.
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Chapter-5
MARKET ANALYSIS
The smartphone industry is highly competitive and dynamic, with constant advancements in
technology, changes in consumer preferences, and the emergence of new players. In recent
years, the industry has witnessed a surge in demand for high-end smartphones with advanced
features and capabilities, such as larger screens, better cameras, and longer battery life. The
following are some key factors that are shaping the new smartphone industry:
1. Technological Advancements: With the advent of new technologies such as 5G
networks, artificial intelligence (AI), and the internet of things (IoT), smartphones are
becoming more powerful and sophisticated. These advancements have enabled
manufacturers to develop smartphones with advanced features and capabilities, such
as facial recognition, voice recognition, and augmented reality.
2. Consumer Preferences: Consumers are becoming more discerning about the features
and capabilities they want in their smartphones. They are looking for larger screens,
better cameras, longer battery life, and more storage space. Additionally, consumers
are becoming more concerned about the environmental impact of their purchases,
leading to a shift towards more sustainable and eco-friendly smartphone options.
3. Market Segmentation: The smartphone market is becoming increasingly segmented,
with manufacturers targeting different demographics and markets. For example, some
manufacturers are targeting the budget market, while others are focusing on the
premium market. Additionally, manufacturers are also targeting specific
demographics, such as gamers or business professionals.
4. Competitive Landscape: The smartphone industry is highly competitive, with several
established players such as Apple, Samsung, and Huawei dominating the market.
However, new players such as Xiaomi, Oppo, and Vivo are also gaining market share
by offering high-quality smartphones at affordable prices.
5. Supply Chain Challenges: The pandemic has disrupted global supply chains, leading
to shortages of components and delays in production. These challenges have led to
higher prices and longer wait times for new smartphones, which may impact
consumer demand.
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5.2 PEST Analysis
A PEST analysis helps you determine how these factors will affect the performance and
activities of your business in the long-term. It is often used in collaboration with other
analytical business tools like the SWOT analysis and Porter’s Five Forces to give a clear
understanding of a situation and related internal and external factors.
PEST- Political, Economic, Social and Technological.
POLITICAL:
1. Political Environment plays an important role in marketing decisions of a mobile
company which include taxes, operations etc.
2. Make in India initiative taken by the GOI provides benefits like reduction in taxes to
the mobile companies.
3. The mobile industry in India is highly regulated by ministry of telecom.
ECONOMICAL:
1. The GDP growth rate of India has been on a decline and Covid 19 has further
slowed down the growth.
2. This demand is expected to increase as smartphone use is expected to go up during
Covid 19.
3. Interest Rates, Inflation, and Taxes affect the telecommunication industry as the
expenses made by the company affect the pricing of their products. It gets more
expensive causing a fall in demand.
SOCIAL:
1. The population of India is on a growth rate of around 1% since last 3 years.
2. Smartphone industries operates in a diverse number of culture.
3. Marketing strategy of the smartphones depends on the social factors.
4. Smartphone industry puts multiple languages depending on several social factors.
TECHNOLOGICAL:
1. Bringing in new technological changes like Wireless Charging, Infinite display, Dual
Camera, Fast Charging, Fingerprint Scanner etc.
2. Smartphone industries needs to be energy efficient, they should use renewable energy
and smart packaging.
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5.3 SWOT Analysis
STRENGTHS
1. Consumers across the UK now rely heavily a form of mobile communication at their
disposal. The market is fast becoming an essential for the population and the chances
of it changing are extremely low.
2. The UK industry is one that sees the most innovative and technologically advanced
phones worldwide.
3. Compared with other nations, the UK has a relatively high adoption level for
technology. Many consumers are quick to integrate new technology into their daily
lives. The networks in the UK are currently providing the UK with relatively
highspeed wireless Internet for mobile phones through 3G.
4. Smartphones have sold extremely well in the UK and applications (‘apps’) have
created a new revenue stream for the industry.
WEAKNESSES
1. There is a danger that mobile phone manufacturers will see their profits dwindle as
prices for more technologically advanced handsets fall.
2. The industry spends a great deal on marketing because competition is fierce.
3. This ultimately has a detrimental effect on the profits of the industry.
4. The UK market has huge barriers to entry in terms of mobile service operators as
Ofcom has to vet and regulate any new entrants.
OPPORTUNITIES
1. The industry is constantly subject to new breakthroughs and could easily produce new
handsets that incorporate new technologies to encourage a continuous cycle of buying
from consumers.
2. Technological convergence is continually increasing and some ideas and
manufacturers may come into the market from the computer industry. The overall
usage of mobile phones is still increasing. The proportion of the population using a
mobile phone has gradually for many years.
3. A SIM (subscriber identity module) -only option for consumers has so far performed
well and there is scope for growth in this area.
4. As mobile phones become more technologically advanced, companies
can tie consumers into longer contracts.
THREATS
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1. The industry is constantly at odds with health campaigners who claim that holding
a mobile phone to your head and mobile phone masts are detrimental to your health.
2. The industry is subject to an extremely large auction at the end of the year for access
to the 4G spectrum. Companies could potentially overstretch themselves by bidding
for this.
3. There could be a point in the future when upgrades will become less noticeable and
consumers might be less inclined to buy new handsets before they need to.
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5. Innovation: The smartphone industry is characterized by rapid technological
advancements, and manufacturers that can innovate and develop new features and
capabilities are likely to gain a competitive advantage. Apple and Samsung have been
at the forefront of innovation, but Chinese brands are also investing in research and
development to stay competitive.
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needed.
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5.7 Marketing budget
The marketing budget for a new smartphone industry would depend on various factors such
as the target market, marketing objectives, marketing mix, and competition. Here are some
steps that can help in determining the marketing budget for a new smartphone industry:
1. Define the target market: The first step is to identify the target market and understand
their demographics, behavior, and preferences. This information can help in
determining the marketing strategy and budget.
2. Set marketing objectives: The next step is to set specific, measurable, achievable,
relevant, and time-bound (SMART) marketing objectives. For example, the objectives
could be to increase brand awareness, generate leads, or drive sales.
3. Determine the marketing mix: The marketing mix includes the 4 Ps of marketing -
product, price, promotion, and place. Based on the target market and marketing
objectives, determine the optimal marketing mix.
4. Analyze the competition: Analyze the marketing activities of the competitors and
estimate the marketing budget required to stay competitive.
5. Allocate the budget: Once the above steps are completed, allocate the budget to each
marketing activity based on their estimated costs and expected ROI. It is
recommended to allocate a higher budget for activities that have a higher ROI and
lower budget for activities that have a lower ROI.
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Chapter-6
OPERATIONAL PLAN
6.1 Manufacturing processes
1. Design and prototyping: The first step in manufacturing a smartphone is designing the
product, which involves creating 3D models and prototypes. The design process is
critical as it determines the form, functionality, and features of the smartphone.
2. Component sourcing: The components for the smartphone are sourced from various
suppliers, including processors, displays, batteries, memory chips, and cameras. The
components are typically purchased in bulk to achieve economies of scale.
3. Printed circuit board (PCB) assembly: The PCB is the core of the smartphone, and it
connects all the electronic components. The PCB assembly process involves
mounting the components onto the PCB using automated machines.
4. Testing and quality control: After the PCB assembly, the smartphones are subjected to
various tests, including functional testing, performance testing, and quality control.
The testing process ensures that the smartphones meet the desired specifications and
quality standards.
5. Final assembly: Once the testing is completed, the smartphones are ready for final
assembly, which involves installing the PCB into the housing, attaching the display,
camera, and other components, and sealing the device.
6. Packaging and shipping: The final step in the manufacturing process is packaging and
shipping the smartphones to the distribution centers or directly to the customers.
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6.2 Plant location, layout
Plant Location:
1. Proximity to suppliers: The plant should be located near the suppliers of components
to reduce transportation costs and lead times.
2. Access to skilled labour: The plant should be located in an area with a skilled labour
force, including engineers, technicians, and assembly line workers.
3. Infrastructure: The plant should be located in an area with reliable infrastructure,
including transportation, communication, and energy supply.
4. Government incentives: The government may offer incentives, such as tax breaks or
subsidies, to attract businesses to certain areas.
5. Market proximity: The plant should be located close to the target market to reduce
transportation costs and lead times.
Plant Layout:
1. Assembly line layout: The plant layout should be designed to support the assembly
line process, with a clear and logical flow of materials and components.
2. Ergonomics: The plant layout should be designed to minimize physical strain and
discomfort for workers and to optimize their productivity.
3. Safety and quality: The plant layout should prioritize safety and quality, with
adequate space for quality control checks and safety equipment.
4. Flexibility: The plant layout should be designed to accommodate changes in
production volumes or product design without disrupting the assembly line process.
5. Environmental considerations: The plant layout should take into account
environmental considerations, such as waste disposal, air quality, and energy
efficiency.
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Plant Layout of a NEW-GEN ELECTRONICS
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6.3 Inventory
Inventory management is a critical aspect of the new smartphone industry, as it can impact
the company's profitability, customer satisfaction, and cash flow. Here are some
considerations for inventory management in the new smartphone industry:
1. Demand forecasting: Accurately forecasting demand is essential for managing
inventory levels. The company should analyze historical sales data, market trends, and
customer preferences to forecast demand and adjust inventory levels accordingly.
2. Safety stock: Maintaining a safety stock of inventory can help ensure that the
company has sufficient inventory to meet unexpected demand or supply disruptions.
3. Just-in-time (JIT) inventory: The JIT inventory system involves minimizing inventory
levels by ordering components and materials just in time for production. This system
can help reduce inventory holding costs and improve efficiency.
4. ABC inventory analysis: The company should classify inventory items based on their
value and prioritize inventory management based on the classification. The ABC
analysis divides inventory into three categories: A (high-value items with low sales
volume), B (medium-value items with moderate sales volume), and C (low-value
items with high sales volume).
5. Inventory tracking system: The company should implement an inventory tracking
system to monitor inventory levels, movement, and usage. This system can help
identify inventory discrepancies and prevent stockouts.
6. Inventory turnover ratio: The company should monitor the inventory turnover ratio,
which measures the number of times inventory is sold and replaced over a period. A
high inventory turnover ratio indicates efficient inventory management, while a low
ratio indicates excessive inventory levels.
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6.4 Procurement and logistics
1. Identify your suppliers: You will need to identify and establish relationships with
suppliers for components such as screens, batteries, processors, and other key
components. Research and compare different suppliers to find the best quality and
price.
2. Negotiate contracts: Once you have identified your suppliers, negotiate contracts with
them. This includes pricing, delivery timelines, and quality standards.
3. Establish inventory management: It is important to establish a system for managing
inventory to ensure you have the necessary components on hand when you need them.
Consider using a software system to track inventory levels and forecast demand.
4. Plan for manufacturing: Plan your manufacturing process carefully, taking into
account the lead times for components and the time required for assembly. Work
closely with your suppliers to ensure that you have the necessary components in stock
when you need them.
5. Manage logistics: Develop a logistics plan for shipping and receiving components and
finished products. This includes working with shipping companies to ensure timely
delivery, and managing inventory levels to avoid stockouts.
6. Consider outsourcing: If managing procurement and logistics becomes too
overwhelming, consider outsourcing these functions to a third-party logistics
provider. This can help you focus on other areas of your business while ensuring that
you have the components you need when you need them.
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6.5 Quality control
Quality control is a critical component of the production process for any product, including
smartphones. Here are some steps that a new smartphone company can take to implement an
effective quality control system:
1. Develop a quality control plan: The first step is to develop a quality control plan that
outlines the standards and procedures that will be used to ensure that the product
meets the required quality specifications. This plan should cover all aspects of the
production process, from component sourcing to final assembly and testing.
2. Set quality standards: The company should establish quality standards that meet or
exceed the expectations of customers. These standards should be based on industry
best practices, regulatory requirements, and customer feedback.
3. Conduct supplier audits: The company should conduct audits of its suppliers to ensure
that they are capable of providing quality components that meet the required
standards.
4. Implement quality inspections: The company should implement quality inspections at
each stage of the production process to identify and address any defects or quality
issues before they become major problems.
5. Perform product testing: The company should perform rigorous product testing to
ensure that the final product meets the required quality standards. This testing should
include functional testing, durability testing, and user experience testing.
6. Continuously improve quality control processes: The company should continuously
review and improve its quality control processes to ensure that they are effective and
efficient.
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6.6 Credit policy
As a new smartphone company, implementing a credit policy is essential for ensuring
financial stability and managing risk. Here are some steps that can be taken to develop an
effective credit policy:
1. Establish credit terms: The company should determine the credit terms it is willing to
extend to customers. This includes the credit period (e.g., 30 days), credit limit, and
payment terms (e.g., net 30). The credit terms should be based on the company's
financial situation, industry standards, and customer needs.
2. Conduct credit checks: The company should conduct credit checks on potential
customers to assess their creditworthiness. This can include reviewing their credit
history, financial statements, and payment history with other suppliers. This
information will help the company determine the appropriate credit limit for each
customer.
3. Define credit policies and procedures: The company should define its credit policies
and procedures, including the steps for approving credit, monitoring credit, and
collecting overdue payments. This should be documented in a written credit policy
and communicated to all relevant employees.
4. Implement a credit scoring system: A credit scoring system can be implemented to
evaluate customers' creditworthiness. This system assigns a score based on factors
such as payment history, credit utilization, and credit history. The score can then be
used to determine the credit limit and terms for each customer.
5. Monitor credit accounts: The company should monitor credit accounts regularly to
identify potential issues and take appropriate action. This can include reviewing
payment history, credit utilization, and credit limits. Any issues should be addressed
promptly to minimize the risk of bad debt.
6. Collection procedures: The company should establish clear collection procedures for
overdue accounts, including reminders, collection calls, and legal action if necessary.
These procedures should be followed consistently and documented for future
reference.
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Chapter-7
FINANACIAL PLAN
7.1 Cash flow Projections or Statements
The Cash Flow Statement of NEW-GEN ELECTRONICS up to Present Financial Year 31-03-
2023.
NEW-GEN ELECTRONICS
CASH FLOW STATEMENT
CASH FLOW STATEMENT AS ON 31-03-2023
OPENING BALANCE OF CASH AT BEGINNING OF THE YEAR ₹ 2,00,000
CASH FLOW OPERATIONS
CASH RECEIVED FROM
CLIENTS OR CUSTOMERS ₹ 9,25,000
OTHER MISCELLANEOUS OPERATION ₹ 1,23,000 ₹ 10,48,000
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CASH RECEIVED FROM
STOCK ISSUANCE ₹ 4,00,000
BORROWINGS ₹ - ₹ 4,00,000
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7.2 Profit and Loss Projection
Creating a profit and loss projection is a critical step for a new smartphone company to
manage its finances effectively. Here are some steps to create a profit and loss projection:
1. Estimate sales revenue: The company should estimate its sales revenue based on its
marketing plan, market research, and sales forecasts. It is important to be realistic
when estimating sales revenue, taking into account factors such as competition,
market demand, and pricing.
2. Determine cost of goods sold (COGS): COGS is the cost of producing the product and
includes expenses such as raw materials, labour, and manufacturing overhead. The
company should estimate its COGS based on its manufacturing plan, production
costs, and inventory levels.
3. Calculate gross profit: Gross profit is the difference between sales revenue and
COGS. The company should calculate its gross profit to determine its profitability
before considering other expenses.
4. Estimate operating expenses: Operating expenses include expenses such as rent,
utilities, salaries, marketing, and other overhead costs. The company should estimate
its operating expenses based on its budget and business plan.
5. Calculate net profit: Net profit is the difference between gross profit and operating
expenses. The company should calculate its net profit to determine its overall
profitability.
6. Analyze and adjust: The company should analyze its cash flow projections or
statements to identify areas where it can improve its cash flow management. This may
include adjusting payment terms, reducing expenses, or increasing sales revenue.
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7.3 Projected Balance Sheet
Creating a projected balance sheet is an important step for a new smartphone company to
manage its finances effectively. Here are some steps to create a projected balance sheet:
1. List assets: Assets are the resources owned by the company that have economic value.
The company should list its assets, including cash, accounts receivable, inventory,
property, plant, and equipment, and any other assets it may have.
2. Estimate the value of assets: The company should estimate the value of its assets
based on its budget and business plan. This may include valuing inventory at the cost
of production or market value and valuing property, plant, and equipment at their
purchase price or fair market value.
3. List liabilities: Liabilities are the debts and obligations owed by the company. The
company should list its liabilities, including accounts payable, loans, and any other
debts or obligations it may have.
4. Estimate the value of liabilities: The company should estimate the value of its
liabilities based on its budget and business plan. This may include estimating the
amount of principal and interest owed on loans and estimating the amount owed to
suppliers.
5. Calculate equity: Equity is the value of the company's assets minus its liabilities. The
company should calculate its equity to determine its net worth.
6. Prepare the balance sheet: The company should prepare the balance sheet by listing its
assets, liabilities, and equity. The assets should be listed in order of liquidity, and the
liabilities should be listed in order of maturity.
7. Analyze and adjust: The company should analyze its balance sheet to identify areas
where it can improve its financial position. This may include reducing liabilities,
increasing assets, or adjusting its equity position.
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7.4 Break Even Analysis
Break-even analysis is a financial tool that helps companies determine the point at which they
will start making a profit. It is an essential tool for companies in the smartphone industry, as
it allows them to assess their costs and revenue to determine their break-even point.
1. Determine the fixed costs: Fixed costs are expenses that do not change regardless of
the number of products sold. In the smartphone industry, fixed costs may include
costs related to research and development, marketing, salaries, and rent for
manufacturing facilities.
2. Determine the variable costs: Variable costs are expenses that change depending on
the number of products sold. In the smartphone industry, variable costs may include
costs related to materials, labor, and shipping.
3. Determine the selling price: The selling price is the price at which a company sells its
products. In the smartphone industry, the selling price will depend on the features,
quality, and brand of the smartphone.
4. Calculate the contribution margin: The contribution margin is the selling price minus
the variable cost per unit. This is the amount that contributes to covering the fixed
costs.
5. Calculate the break-even point: The break-even point is the point at which the
company's total revenue equals its total costs. This can be calculated by dividing the
fixed costs by the contribution margin.
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7.5 Contingency Plans
Contingency planning is defined as a course of action designed to help an organization
respond to an event that may or may not happen. Contingency plans can also be referred to as
'Plan B' because it can work as an alternative action if things don't go as planned.
1. Diversification of supply chain: The smartphone industry is heavily reliant on the
supply chain, which can be impacted by events such as natural disasters, political
instability, or pandemics. Companies in the industry could consider diversifying their
supply chains by sourcing components from multiple suppliers or regions to reduce
the risk of disruption.
2. Remote working arrangements: In the event of a pandemic or other crisis that makes it
difficult for employees to work from their office or manufacturing facilities,
companies could implement remote working arrangements to maintain business
continuity. This could include providing employees with the necessary equipment and
tools to work from home.
3. Investing in research and development: Investing in research and development can
help companies stay ahead of the competition and anticipate future trends and
consumer demands. This can also help companies pivot their business model or
product offerings in response to unexpected events.
4. Financial planning: Companies in the smartphone industry could consider creating a
financial plan that includes setting aside funds for emergencies or unexpected events.
This could help them weather periods of financial instability or uncertainty.
5. Sustainability planning: The smartphone industry can face criticism over its
environmental impact. Developing contingency plans that consider sustainable
practices, such as recycling or reuse of materials, could help companies be more
resilient in the long term.
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Chapter-8
APPENDICES (SUPPORTING DOCUMENTS etc.)
Agreements :
a. Agreement with clients.
b. Agreements with employees.
c. Fixed-price contracts.
d. Cost-plus contracts.
e. Time and materials contracts.
Intellectual properties :
Trade Mark :
Licenses:
• Company or LLP Registration
• GST Registration
• Udyog Aadhar Registration
• Import Export Code
• Shop and Establishment Act License
Patents :
• we have patented our rights on designs.
• we have patented our models.
Insurance policies :
• Insurance against fire.
• Health care Insurance
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• Travel Insurance.
• Automobile insurance.
Advertising/marketing materials :
• E-mail Marketing
• Search Engine Marketing
• Social Marketing
• Influencer Marketing
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CHAPTER- 9
BIBLIOGRAPHY
1. Evans, J. (2022). The New Smartphone Industry: Exploring Trends and Future
Developments. New York: Routledge.
2. Statista. (2022). Smartphone Industry - Statistics & Facts.
3. Counterpoint Research. (2022). Global Smartphone Market Share Tracker.
4. Gartner. (2022). Forecast: Mobile Phones, Worldwide, 2018-2023, 2Q19 Update.
5. TechCrunch. (2022). The Future of the Smartphone Industry.
6. CNet. (2022). Smartphone Reviews.
7. Forbes. (2022). Why The Smartphone Industry Needs To Innovate Beyond The
Camera.
8. Business Insider. (2022). How the Smartphone Industry is Evolving.
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