Organic Veg

“ORGENIC VEG” ENTREPRENEURSHIP
“ORGANIC VEG”
INTRODUCTION:
Nature is full of blessing for the human beings. Since the beginning, fresh fruits and
vegetables are always liked by the human beings. Even in today environment, growing better
tasting, nutritious and fresh vegetables from home gardens is the prime motivation for all of us
which are rich in vitamins, flavor and nutritious value.
In the time of economic stress, people are returning to the home cropping in order to save
money and guarantee that they will always have fresh vegetables to eat. The only thing people
need to limit is the seasonality and locality while grow these at their home gardens.
COMPANY DESCRIPTION
The “Organic veg” will be a vegetable nursery to provide a wide range of favorable
seasonal vegetables seedling and seeds with in Lahore. The basic purpose of this nursery is:
 Sell highest quality vegetable seedlings and seeds with excellent customer service and
support.
 Replace the community inorganic vegetables with home grown organic vegetables.
 Providing excellent customer service and support
 Providing technical support for the protection of their home based crops
MISSION:
The mission of “organic veg” is:
“Our aim is to provide the widest possible selection of high quality organic seedlings
and seeds of different vegetables and motivate people to grow fresh, pure, high
quality and totally organic vegetables in their homes. With our expertise support
our customers will definitely get vegetables of their daily usage. We build relationships
with the consumers so we can continue to meet their changing needs and requirement.”
UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 1

VISION:
The vision of “organic veg” is:
“Our vision is to sustain profitable growth by making people self sufficient
to grow and consume 100% organic vegetables.”
OBJECTIVE:
The objective of “organic Veg” is:
“Organic veg” will makes a unique contribution in home base farming
By supplying the best organic vegetables seedlings and seeds for the
Consumer to get proper healthy diet”
VALUES:
 Improve the health:
The nutritious values of organic food are higher than inorganic, which balances the level
of required nutrient, nourish skin and makes the immune system stronger. Basically “organic
veg” is helping the society to reduce the diseases associated with exposure to poisonous
chemicals in inorganic foods.
 Safe and natural
Organic vegetables are free from health harming chemicals such as pesticides, fungicides
and herbicides.
 Environment protection
We have discovered through research at our nursery that Organic crop process requires
no needs of fertilizers therefore it emits less greenhouse gases and hence considerably more
climate friendly. “Organic veg” provide such self sufficient setup which discourages such
practices that are harmful for the health and environment.

 Protect Future Generations
“Organic veg” is enthusiastic to protect the future generation by providing them a healthy
environment and pure nutrition. Organic practices at home not only help to provide pure
nutrition to our upcoming generation but also help to protect them by the harmful effects of
fertilizers, pesticides, herbicides and fungicides.
 Rich in Flavor
All human being have the sense of taste that allows them to distinguish the quality of the
food they ingest. “Organic veg” provides the best organic vegetables seedling and seeds that
people can grow and enjoy the finest taste available in the environment to them.
FORM OF BUSINESS
“Organic veg”will be start with 5 member’s partners under the partnership Act.
OWNERS/ PRINCIPALS
The following are the owner/principals of “”organic veg
Sajjad Hussain Nouman Riaz Butt

Sales Manager Sales Manager
Flat no. 195/A N block Model Town ,Lahore 385 E-2, Wapda town, Lahore
laureatesajjad@hotmail.com nrbutt57@hotmail.com
Anum Shahid Kanwal Nawaz

HR Manager Operation Manager
768 G-3, Wapda Town, Lahore E-103 Street 6, Gulshan Ali Colony,
anumshahid@yahoo.com Lahore
Kanwalnawaz@msn.com
Javeria Kanwal
Finance Manager
117- J2, Wapda Town, Lahore
javeriakanwal@gmail.com

NAME OF BUSINESS:
The name of the venture is “ORGANIC VEG” which basically shows the product
which nursery will provide.
LOGO:
The logo of “organic veg” is
START DATE:
It will be start in the mid of February 12, 2011 so that people start buying the seedlings
and seeds in that months and utilize the pure home grown organic vegetables afterwards.
BUSINESS OPERATION:
“Organic Veg” will be a full time venture and will be opened 7 days a week for the
customer convenience. It will remain open from 8:00 a.m till 10:00 p.m. So even the job holders
can come after their working hours to buy the seedlings and give orders. From 8:00 a.m till 10:00
p.m “Organic veg” will sell seedlings and seeds of seasonal vegetables, provide home delivery
services with the guidance of expert gardeners to select the appropriate place for vegetable
growth and other issues.
LOCATION:
The location of “Organic Veg” is in model town.

CONTACT INFORMATION:
The contact information of “organic Veg” is
186, F block
Model Town
Lahore, Pakistan
Tel: 0331-4567968
Email: Organicveg@gmail.com
PRODUCT DESCRIPTION
“Organic veg” products are basically grown with organic biomass, pesticides, herbicides,
so the seedling and seeds receive natural nutrition from the environment. It is grown in home
gardens using natural methods that are suitable in favorable seasons. We aim to ensure the
availability of organic vegetation in urban areas.
Our products are convenient in the sense that it can grow in home gardens, roof tops, pots
and even in wooden crates and allow consumers to obtain fresh vegetables from their home
gardens instantly to cook according to their requirement.
STANDARD SET PACK CONTAINS

The standard set pack of our package contains:
 Seedlings and seeds

 Organic pest control syrup
 Decomposed soil
 Wooden crates
 Plastic sheets
 Coal tar
 Greenhouse shed sheet
 Instruction Manuals (English and urdu)

GAP IDENTIFICATION
Organic food consumption has increase in the past 10years. Now even in Pakistan people
are becoming more and more conscious about the health and the nutrition value they are getting
from their food. In food, vegetables are preferred and act as a major source of getting nutritious
values. People know the value they are getting from organic vegetables is far above the inorganic
vegetables they are currently consuming. Mostly people do not have the budget to go 100%
organic vegetables consumption. Therefore we will be the first who are launching an organic
nursery outlet “organic veg” which enables people to grow organic vegetables in their home of
best quality within their budget.
INDUSTRIAL INTRODUCTION:
Pakistan has one of the greatest potential to grow vegetables among the developing
countries. Agriculture constitutes the largest sector of our economy. Regardless of the
industrialization, agriculture sector is still has a great impact on socio-economic system. In
Pakistan majority of the population is directly or indirectly, dependents on this sector. It
contributes about 22 percent of Gross Domestic Product (GDP) and accounts for about 45% of
the total employed labor force. It is the largest source of foreign exchange earnings and feeds
whole rural and urban population, which is increasing at the rate of about 1.9 percent per annum.
(1)
The nature gifted Pakistan with the diverse type of climate therefore, a large verity of
vegetables are cultivated in Pakistan throughout the year. Area under vegetable cultivation is
596540 area, making 50.77 percent of total vegetable area of Pakistan. Almost 63 vegetables are
grown in various part of the country during Rabi (grown during the winter month of October to
march) and Kharif season (Grown during the summer month of April to September).
In Pakistan, the trend of plant nurseries is also very high. Approx. more than 1000
nurseries are currently operating in Pakistan in which 46 plant nurseries are exporting in different
countries around the world. These nurseries provide basic seasonal flowers and some inorganic
vegetable seedlings as cauliflower seeds, chili seedlings, lemon plant etc.

THE PORTERS 5 FORCES MODEL
Bargaining Power of Buyer.
Assess the power of

Buyers Circle one of
the following.
Determinants Defining Question 1 = low, 5 = high, or
N/A if it doesn’t apply
to your industry.
Concentration Are buyer fragmented or highly concentrated 1 2 3 4 5
( i.e. do a few monopolize the market?) If they N/A
are few and concentrated, then buyer bargaining
power is typically high.
Product Cost Does your product buyer’s purchase represent a 1 2 3 4 5
versus Total significant fraction of the buyer’s cost? If so, N/A
Purchases buyer bargaining power is typically high.
Product Is the buyers product or serce a commodity? Is 1 2 3 4 5
Differentiation there branding critical to success? Is there any N/A
actual versus a perceived difference? If the
product are standard or undifferentiated, buyers
typically have high bargaining power
Switching Costs Are Switching cost low or high? If buyers face 1 2 3 4 5
few switching costs, their bargaining power is N/A
typically high.
Profits Do buyers earn low profits? If so they are 1 2 3 4 5
typically more likely to bargain hard N/A
Backward Can they make what you make themselves? Is 1 2 3 4 5
Integration there a threat of backward integration? If so the N/A
threat is typically high
Impact on Is the product you offer important to the quality 1 2 3 4 5
Quality/ of the buyer’s product or services? If not buyer N/A
Performance power is typically high
Buyers Does the buyer have complete information on 1 2 3 4 5

Information the product he may purchase? If so buyer power N/A
is typically high
Result: bargaining power of buyer is low

BARGAINING POWER OF SUPPLIERS.
Assess the power of

Buyers Circle one of the
following.
Determinants Defining Question
1 = low, 5 = high, or N/A
if it doesn’t apply to your
industry.
Concentration Are you supplier are fragmented or highly 1 2 3 4 5
concentrated? (do a few monopolize the N/A
market)? If an industry is dominated by a few
companies, the suppliers are typically
powerful.
Presences of Are there any substitutes for your supplier 1 2 3 4 5
Substitute inputs products? If not suppliers are typically N/A
powerful.
Importance Is your industry an important customer the 1 2 3 4 5
Relative to supplier group? If not suppliers are typically N/A
Customer. powerful
Impact on Is your supplier product essential to the 1 2 3 4 5
Quality/ quality or performance of your business? If so N/A
Performance suppliers are typically powerful
Product Is the suppliers product or service a 1 2 3 4 5

Differentiation commodity? Is branding critical for success? N/A
Is there an actual versus a perceived
difference? Suppliers with differentiated
products typically have more bargaining
power then suppliers selling commodities.
Switching Costs How costly is it for you to switch from 1 2 3 4 5
suppliers product? If switching costs are high, N/A
suppliers are typically more powerful.
Forward Can the supplier produce the product you 1 2 3 4 5
Integration make? Is there a threat of forward integration? N/A
If so, suppliers are typically powerful
Result: bargaining power of suppliers is low

Intensity of Rivalry
Assess the power
of Buyers, Circle
one of the
following.
1 = low, 5 = high,
or N/A if it
doesn’t apply to
your industry.
Industry growth How slowly or quickly is the industry growing? If it is a 1 2 3 4
slow growth industry, there is likely to be more intense 5
fights among rivals for market share. N/A
Fixed Cost Does your business have a high fixed cost? If so, rivals 1 2 3 4
will typically be tempted to cut prices to ensure sales, 5
thus posing a significant threat N/A
Intermittent How frequently is there a problem of excess capacity in 1 2 3 4
Overcapacity your industry? Are there periods when there is excess 5
capacity? Overcapacity often leads to price cutting. If N/A
so, there is typically a threat.
Product Is your product or service a commodity? Typically the 1 2 3 4
Differentiation closer the product is to being a commodity the fiercer 5
the intensity of rivalry. N/A
Brand Identity Is branding critical for your Rival’s success? Is there 1 2 3 4
actual vs. perceived difference? Brand identification by 5
buyer reduces the threat of rivals. N/A
Switching Costs How costly is it for your buyer to switch between 1 2 3 4
providers? Low switching costs typically increase 5
rivalry. When a customer can freely switch from one N/A
product o another, companies must struggle to capture
and retain customers.
Concentration Are there a large number of firms of equal size and 1 2 3 4
and balance power, all chasing after the same customer? If so rivalry 5
is typically intense N/A
Diversity of Are there competitors with different strategies and 1 2 3 4
competitors frame of reference? When competitors are diverse it is 5
more difficult to establish the rules of game, so the N/A
threat from competitors is greater.
Corporate How high are the rival’s corporate stakes? What do 1 2 3 4
Stakes rivals stand to lose (e.g. profits, decision-making 5
power)? Strategic stakes are high when several firms in N/A
an industry take great risks to expand, diversify and gain
market position. The intensity and volatility of the
rivalry increases when firms select alternative strategies

that may sacrifice short-term profitability.

Exit Barriers Are exit barriers low or high? High exit barriers make it 1 2 3 4
costly to abandon a product. E.g. when an organization 5
has specialized assets that cannot be easily sold off. N/A
Result: Intensity of Rivalry is high
Threat of New Entrants

Assess the power of
Buyers. Circle one of
the following.
1 = low, 5 = high, or
to your industry.
Economies of Does successful entry require that companies have 1 2 3 4 5
Scale and significant economies of scale or experience? N/A
experience Barriers to entry are typically high when a aspiring
company must cut costs in order to compete in a
large-scale and/or experienced market.
Product Do new entrants need to differentiate by spending 1 2 3 4 5
Differentiation heavily on advertising, customer services or product N/A
differences to overcome existing customer loyalty?
Product differentiation is typically a barrier to entry.
Brand Identity Do new companies need to spend heavily on brand 1 2 3 4 5
identification to gain customers loyalty? Brand N/A
identification is typically a barrier to entry
Switching Does the buyer have to pay to switch from one 1 2 3 4 5
Costs supplier’s product to another? High switching costs N/A
are typically a barrier to entry.
Capital Does the new company need to invest large financial 1 2 3 4 5
Required resources (relative to market size) in order to N/A
compete? Huge capital requirements are typically a
barrier to entry
Access to Do the new comers have access to distribution 1 2 3 4 5
Distribution channel for product or services? Difficult access can N/A
typically be a high barrier to entry.
Cost Established companies have cost advantages over 1 2 3 4 5
advantage new rivals because they may have already obtained N/A
proprietary product technology, access to raw
materials, favorable locations and government
subsidies. In addition, established company may have
passed a learning or experience curve. Such costs
advantages are typically a barrier to entry for a new
entrant.
Government Government policies, such as antitrust regulations, 1 2 3 4 5
policies can help to preserve or limit competition. Such N/A

policies can typically create a barrier to entry

Expected New entrants may decide not to enter a new market if 1 2 3 4 5
Retaliation existing firms are likely to retaliate. Established firms N/A
may have a history of retaliating, resources to fight
back, a strong commitment to the industry, and
illiquid assets employed in the industry. Also, if the
industry is growing slowly, they may retaliate against
new players who would threaten sales growth.
Result: Threat of New Entrants is moderate

Threat of Substitution
Assess the power of
Buyers
Circle one of the
Determinants Defining Question following.
1 = low, 5 = high, or
to your industry.
Price performance Does the substitute offer a better price or 1 2 3 4 5
performance? A substitute product or service N/A
is a threat to competition when it offers a
higher performance at a given price or the
same performance at a lower price.
Switching Cost Is it costly for buyer to switch to the 1 2 3 4 5
substitute product? When buyers must pay N/A
more to switch to a substitute the threat of
substitutes is low.
Result: Threat of Substitution is moderate
PEST ANALYSIS:
The pest analysis of agriculture sector of Pakistan is given below:
 Economic Changes:
The economy of Pakistan is the 27th largest economy in the world. It is mainly
encompasses of textiles, chemicals, food processing, agriculture and other industries. Various
studies suggest that population of Pakistan increases from 7288300 in 2009 to 7540190 in 2010.
The inflation increases from 13.42 to 14.08 in 2010. Similarly, the GDP of Pakistan increase
from 3.37% to 4.79% in 2010.(2)

This reduction in the overall economy occurred due to the flood in 2010 that incurred
damages of 43 billion U.S. dollars. The estimated loss to agriculture sector of Pakistan in that
flood is over Rs 275-300 billion.(3)
 Political Changes:
The politics of Pakistan allowed U.S. policymakers to make decisions in domestic public
policy matters. The United States became actively engaged in Pakistan’s political development
through its bilateral military, development and food assistance. The instability in politics affects
the Pakistan economics and cause short-term reductions in the speed of economic growth
instability, rising unemployment, inflation and the adoption of a wait-and-see attitude by
investors.
Similarly, the involvement of USA indulge Pakistan in war on terror that why Pakistan is
unable to utilize all of the country resource in productive activities. This reduction in budget
became a constraint for agriculture sectors to develop more research centers. Therefore, the
government needs to be stable and allocate programs and projects that shows positive results and
helped to reduce unemployment and instability in the environment. (2)
 Social changes:
Now in Pakistan people are moving towards more and more organic food consumption
which increases the concept of organic farming. This will have a direct impact to alleviate
poverty by providing large scale employment to unskilled semi-skilled labor.
 Environmental changes:
Pakistan’s natural resources are increasingly under stress due to a rapid population
growth and environmental unsustainable practices. In Pakistan, the irrigation of crops requires
heavy water requirements which have 20 million tons of river salts that inversely affect the crop
yields. (3)
The acidity of soil in Pakistan is rising due to the increase in PH level. The researches
showed that the soil PH level should be maintained at 7- 9 point but due to industrial waste and
excess use of fertilizers the PH level of soils raise to about 11 point.

 Demographic Changes:
During the past few years the people of Pakistan have improved their life style pattern. The
ways of consuming their time, energy and money has changes dramatically during the last 5 years. The
people are becoming more health conscious therefore, expanding more on their health. Similarly, their
ways of daily routine have changed, now people are expanding their time on health recreational
activities as gardening. The changes in the way of their expenditures are given below:
Life style
indicators
2006 2007 2008 2009 2010
Consumer Expenditure (US$
93,617.51 106,442.71 109,598.51 124,223.65 128,765.70
million)
Annual Disposable Income
96,560.34 109,304.25 112,492.13 127,216.89 131,896.32
(US$ million)
Consumer Expenditure on
38,035.37 42,309.94 44,229.35 50,388.18 52,199.52
Food (US$ million)
 Technological Changes:
The agricultural sector represents 20 percent of the GDP. The continuous improvement in
technologies helps the agricultural sector to fulfill the demand of increasing population. The
technologies in yield cropping include Irrigation system (Drip irrigation), Fertilizers (Effective
microorganisms technology), Monocroping and e.t.c. On the other hand the improvement in
technology (i.e. pest syrup, garlic pyrethrum) of organic cropping production reduces 50%
expenditure on fertilizer and energy and 97% on pesticides. (4)

SWOT ANALYSIS:
The SWOT analysis of industry is:
 STRENGTHS
1. Local farming systems
Pakistan is an agricultural country and most of the farming tools developed locally. On
the other hands Pakistan is one of those countries who have large and well maintained irrigation
systems through canal and rivers.
2. Large labor force
Pakistan is the world 6th country with largest population. In Pakistan most of our
population lives in villages. So most of the people are directly or indirectly linked with
agriculture which means that agricultural sector has a large labor force.
3. National organic movements
There are some trust organizations in Pakistan who are working for the development of
organic culture. For example in Lahore “Shirkatgah” is a welfare organization who conducts
research on the home grown vegetables.
4. Low cost of production
In Pakistan there are four seasons which makes the land fertile and more suitable for the
agriculture sector. Due to this natural climate the cost of production is low.
5. Availability of technologies for organic production
Farming and agriculture are the oldest activities performed by human. Therefore with the
passage of time some innovation and techniques develop to practice these activities. Organic
vegetables basically demand the natural or traditional practices so in Pakistan the natural and
traditional practices are available for the organic vegetables.

6. Strongly motivated and committed organic sector
Recently tends of organic vegetable is increasing in past few years and people are more
motivated to grow and eat natural.
WEAKNESSES
1. Poor marketing image
In agricultural sector, the organic sectors is still behind because people are not aware of
these practices even they do not know the true meaning of organic food because of poor
marketing.
2. Education and extension system
There are only few institutions in Pakistan who are giving agricultural education degrees.
On the other hands in Punjab only one research institution is working on it.
3. Lack of resources
The agriculture sector has uncertainties due to lack of resources because most of the
financial resources are wasted on non productive activities by the government.
4. Lack of reliable data and information on organic agriculture
Lack of reliable data occurred due to institutional weakness because that the secondary
researches are not upgraded.
5. Poor local market opportunities and infrastructure
Poor infrastructure, such as a lack of good roads, electricity and the communications and
technology facilities exist in Pakistan that are needed for improved market information flows.
6. Difficulty in cropping
Some of the crops are very difficult to produce because they need a lot of care. They are
highly sensitive and easily attacked by most of the insects which might washout the whole crop.

 OPPORTUNITIES
1. Availability of pure land
In Pakistan there is so much land which is still unused and clean so we can easily utilize
it.
2. Increasing interest in organic agriculture
Now in Pakistan people are becoming more health conscious so, there is more
opportunity to grow organic vegetable and develop such nurseries that provide that system that
energize people to grow organic food at home.
3. Increasing local awareness of benefits of organic foods
There is an opportunity to increase the awareness among consumers and policy makers
about the potential benefits of organic foods for health, environments, economies and income
generation.
 THREATS
1. Crop wastage
The vegetable market in Pakistan are not well managed that why there is a threat that
most of the vegetables and other eatable became wasted.
2. Mismanaged government policies
The governments policies are mismanage. They are investing very low in agriculture
sector while imposing high taxes on agriculture products which increases the threat of reducing
agricultural businesses.
3. International competition
Our agriculture is far behind in technologies and process of production which increase
the threat of international competitors having low cost production processes in Pakistan.(5)

KEY SUCCESS FACTORS:
The key success factors of agricultural sectors are:

Pakistan is blessed with the vast natural resources and covering various environmental and
climatic zones that is a great assets for agricultural sector.

Pakistan has one of the highest proportions of irrigated cropped area in the world. About 27
percent area of Pakistan is currently under cultivation.

The forward and backward linkages of agricultural sector to the domestic economy, to the
international trade and with employment are very strong.

Pakistan has abundant labor that can be utilized at cheap rate. Especially in agricultural
sector the farming community is so high as compared to other sectors.

Pakistan has one of the most fertile soils in this world due to the presence of Indus valley in
this region.(6)

The irrigation system of Pakistan is the largest in this world. Currently, it includes 3 large
dams and 85 small dams with 19 barrages to fulfill the water need. In Pakistan, almost 75%
of the agriculture is covered by the irrigation system.

Unlike other sectors Agriculture credit is regularly supervised by the State Bank of Pakistan
therefore agriculture credit advisory committee meets every six months and ensures credit
delivery.(7)

MARKET SIZE AND TRENDS:
Over the number of years people are shifting towards organic vegetables due to the
changes in their life style pattern. The changes in the consumption pattern of people of Pakistan
are shown in the following graph:
SOURCE: GOOGLE ADWORDS
It shows that the consumption of organic vegetables trend started in 2006 and further
increase in 2007. The organic vegetable consumption was higher till 2008 but at once decline in
2009 due to the flood in Pakistan. At the end of 2009, the consumption of organic vegetable
again increased to more than 40% and is still continuously increasing.
BARRIERS TO GROWTH:
In Pakistan, the agricultural sector is the major suppliers of raw materials for many
industries. It is contributing to Pakistan’s exports as well as it is a large market for industrial
products such as fertilizer, pesticides, tractors and other machinery. Despite all these, the
agricultural sector is still suffering from decline. Over the past years, the agriculture still remains
in decline as shown:

There are several factors that act as barriers to its improvement or growth. Some of the barriers
are:

There is no Critical investments made for the new seeds and improving farming technology
and techniques

There is continuous storage of water availability for the agricultural land. In 2010, the overall
water availability has been decline in the range of 2.5 percent to 20.6 percent especially
heavy shortage of water is faced in Rabi season that affect Rabi crops

There is no proper budget allocated to the agricultural sector. In the 21st century, this sector
requires knowledge and innovative approaches but still our sector is following historic
practices.

The changes in the climate of Pakistan affect badly on the production of crops. The changes
include Rainfall Pattern, Flood Event and Glaciers melting. The government still is not
taking any action (i.e. manufacturing dams, improve irrigation system, and changing
cropping pattern) to handle such problems.(8)
GROWTH POTENTIAL:
Pakistan has one of the highest proportions of irrigated cropped area in the world.
Agriculture has grown at an average rate of 3.7 percent per annum. Pakistan sill has potential to
grow in this sector. The following are the Growth opportunities in the agricultural sector:

The fertile unused lands should be utilized for the cropping of different vegetables.

The agricultural sector can export more in the international marketplace by focusing on
consumers demand and providing them highest quality.


Agricultural sector should adopt new infrastructure and technologies that are beneficial for
the crops as EM technology, pest syrups and etc

Government provides subsidies and non bearing loans to the farmers so more people are
motivated towards this sector.

Perishable crops will be marketed or exported immediately after harvesting so country
reduces its expense of crops wear and tear.(9)
MARKETING STRATEGY:
COMPETITIVE ANALYSIS:
In our business there are some indirect competitors and some of them are direct
competitors.
 DIRECT COMPETITORS
Following are our direct competitors because they are providing organic seeds, seedlings,
vegetables and the equipment.
1. All Plant nurseries
In Lahore there are huge number of plant nurseries which are providing seeds and
seedling of different inorganic vegetables. Not only had this they are providing some set up for
lawns in homes
2. Organic farms:
In organic farm, our main competitors are:
3. Roshni organic farms (30 years ago)

It provide organic bakery products to different restaurants
4. The organic shop (10 years)

It provides Organic Products as:
 Kala Channa (Black Chickpeas) Small
 Kala Channa (Black Chickpeas) Large

 Dal Chana (Yellow Mashed Chickpeas) Small

 Dal Chana (Yellow Mashed Chickpeas) Large
 Daali organic farm
5. Daali organic farm:
In Lahore there are also some organic farms at Baydian Road which are producing organic
vegetables like daali organic farm has its own outlet for organic buy product in the main market
Gulberg.
AGRI SERVICES
In Agri services the competitors includes:
1. Haji sons (4 years)

The products provided by Haji sons are:
 Seeds
 Seedlings
 Agri equipments
 Importing seeds
2. Aryain Agri Corporation

The products provided by Aryain Agri corporation are:
 Organic seeds
 Organic seedlings
 Gardening equipments
In Lahore there are some shops of agri services which are providing all the seeds of different
seasons along the equipment.

INDIRECT COMPETITORS
The indirect competitors of “organic veg” include:
 Organic food shops

 Organic food suppliers
 Vegetable shops
In different areas of Lahore there are many food shops and their suppliers are in direct
competitors.
MARKET SEGMENTATION:
A division of market into different homogeneous group of potential customers is known

as market segmentation. While for “organic veg” we only define segmentation on consumer
bases:
 Consumer Market Segmentation:
This is a market segmentation in which we make customer profile that are consuming
vegetables according to their Geographic, Demographic, Psychographic, and Behavioral
patterns. This shows us the trends and the changing responses of our customers.
 Geographic segmentation:
The target market of “organic veg” is in Lahore. In Lahore the climate is suitable for the
production of the organic vegetables and even the population is quite high and health conscious.
It is the second largest city after Karachi with population of 10,000,000 and the growth rate of
this increasing population is 3.10% in 2011. So, there is a large, potential customer in this
geographical area.
 Demographic segmentation
Organic vegetables are for consumed by people of all ages which include males and
females. The educated people like doctor and other professionals who have some knowledge of
vegetables go for the nutritional values of them. The organic vegetables are quite expensive
rather then the inorganic vegetables. It generally assumed that people with high income level

afford it. According to the define area of our venture the people are generally have Rs.20, 000
thousand monthly income. They fall in the middle class according to the economic survey. Our
aim of the business is to decrease the annual vegetable expense of the people while increase
nutrition values.
 Psychographic segmentation
People living in Lahore are habitual of eating food outside their houses but due to this
unhealthy food and the complication in the form of diseases occurred by them they are now
looking for something natural “desi” to eat which provide them proper nutritional values.
 Behavioral segmentation
The behavioral segmentation of the people is depending upon the purchase behavior of
the vegetables. According to our research the people in Lahore are generally buy vegetables in
weekend holidays and they have no concern from where they are buying it, they only just look
for their own convince. But they are more concern that the vegetables must be fresh.
TARGET MARKET:
Age Range: All the people consuming vegetables
Income Range: 30,000 and above (according to the economic survey of Pakistan)
Family status: A standard family of 4 to 5 people.
Occupation: Preferably working class.
PRODUCT DESCRIPTION:
Generally all the people who are consuming vegetables are our market but after dividing
the customer into different subset we selected the people of “middle class” according to their less
disposable income for purchasing vegetables. We selected a standard family of 4 to 5 members.

Preferably, the working class is in five locations of Lahore (Allama Iqbal Town, Mustafa Town,
Muslim Town and Wadhat Colony).
In these area people have small houses and less disposable income. Within their less
income they want such food which contributes healthy affect on their health. We are giving them
such home base setup for growing organic vegetables within their income for food. If we
compare the cost with the nutrition values of organic that is far much high rather then inorganic.
On the other hand by developing our setup of growing organic vegetables they will save quite
reasonable amount of money annually. Our unique services and our home base setup with in
their purchasing power will influence target market to make purchasing decision for our
business.
The four seasons in which we are providing the product are:
SERVICE OR PRODUCT:

Organic veg is providing the seeds and seedlings of vegetables that are placed in the consumer’s
home. The nursery is offering the package of 4 seasons in a year with different vegetable
combinations.
Season 1:
In Season 1 nursery is offering five vegetables that are: Chili, Dhanya, Onion, Saag and Carrot.
The table given below is representing the statistics of theses vegetables.
Product: seeds and seedlings Season 1

Chili Dhanya Onion Carrot
product: (1.5 sq (1.5 sq (180 sq Saag (360 sq
feet) feet) feet) feet
Original cost: 4250 6000 32000 2750 8000
Cost in 1 acer/ 160 marla 4250 6000 32000 2750 8000
Cost in one marla/ 225 sq feet 26.5625 37.5 200 200 50
Cost on 1 sq. Feet 0.118056 0.166667 0.888889 0.888889 0.222222
cost in required square feet 0.177083 0.25 80 160 80
Total package cost 320.4270833
company commission 144.1921875
Total price of Product for consumer 464.6192708
Pest syrup Price 500
Season 2
In Season 2 nursery is offering six vegetables that are: Chili, Dhanya, Spanish, Lady Finger, Tomato and
Ginger. The table given below is representing the statistics of theses vegetables.

Lady Ginger
Chili Dhanya Spanish Tomato
finger ( 180
product: (1.5 sq (1.5 sq (90 Sq (180 Sq
(180 sq square
feet) feet) feet) feet)
feet) feet)
Original cost: 4250 6000 1800 4800 5244 4000
Cost in 1 acer/ 160 marla 4250 6000 1800 4800 5244 4000
Cost in one marla/ 225 sq feet 26.5625 37.5 11.25 30 32.775 25
Cost on 1 sq. Feet 0.118056 0.166667 0.05 0.133333 0.145667 0.111111

cost in required square feet 0.177083 0.25 4.5 24 26.22 20

Total price of Product for
consumer 108.9632708
Season 3:
In Season 3 nursery is offering four vegetables that are: Chili, Dhanya, Onion and Fenugreek.
The table given below is representing the statistics of theses vegetables.

Dhanya Onion
Chili (1.5 Fenugreek
product: (1.5 sq (180 sq
sq feet) (90 sq feet)
feet) feet)
Original cost: 4250 6000 32000 1000
Cost in 1 acer/ 160 marla 4250 6000 32000 1000
Cost in one marla/ 225 sq feet 26.5625 37.5 200 6.25
Cost on 1 sq. Feet 0.118056 0.166667 0.888889 0.027778
cost in required square feet 0.177083 0.25 160 2.5
Season 4:
In Season 4 nursery is offering five vegetables that are: Chili, Dhanya, Turnip, Peas and Garlic The table
given below is representing the statistics of theses vegetables.

Chili Dhanya Turnip Peas Garlic
product: (1.5 sq (1.5 sq (180 sq (270sq (180 sq
feet) feet) feet) feet) feet)
Original cost: 4250 6000 750 6250 6250
Cost in 1 acer/ 160 marla 4250 6000 750 6250 6250
Cost in one marla/ 225 sq feet 26.5625 37.5 4.6875 39.0625 39.0625
Cost on 1 sq. Feet 0.118056 0.166667 0.020833 0.173611 0.173611

cost in required square feet 0.177083 0.25 3.75 46.875 31.25

UNIQUE FEATURE OF ORGANIC VEG:
Organic Veg is the first venture of providing people to grow organic vegetables at Home roofs.
BENEFIT:
The followings are the key benefits of usage of Organic food consumption
 Improve the health

 Safe and natural
 Environment protection
 Protect Future Generations
 Rich in Flavor
PRODUCTION PROCESS OF “OGANIC VEG”

Vegetables

PRICING STRATEGY
The pricing of organic veg depends upon the product as well as services. The strategy used by
Organic Veg is price skimming because we are providing home base organic vegetable setup.
 PRICING FOR A PRODUCT:
A product total charge yearly is Rs. 2464.619271and for Season 1 is Rs. 964.6192708 and
Services that are being provided to the consumers are of the total cost of Rs. 830.6307292.
1. Labor:
Employee Salaries: Per Person Total

2 permanent Gardener 6000 12000
1 Guard 5500 5500
1 Part Time Gardener for 48 days 300 14400
2 Part time Labor for 48 days 300 600
5 Nursery Representative 7500 37500
Total 19600 70000
The total yearly cost associated with the labor is Rs.70, 000.
2. Overhead:
The overhead represents the total operating expenses of the year. Here we take the year
2011 which has of the amount of Rs. 840245.8333.
3. Materials:
The material and equipment charges of Customer is of Rs. 7363
4. Profit Margin:
The profit margin of Organic Veg is 45%.

PRICING CONSIDERATIONS:
High:
Organic Veg is following the strategy of Skimming pricing that will leads towards the
high charging of the prices from customers.
Client’s perception of value:
Client’s observation regarding the value that is given by the Organic Veg is that it will
satisfy the need of the consumer. The organic vegetable development at home will leads toward
the saving of approximately Rs.40, 000 per year.
Organic Veg are not providing any type of discounts to the clients’ but in future (after 3
years) it will be focusing on the issuance of Membership cards that will provide reduction in the
package prices.
LOCATION:
“Organic veg” will be located in the area that caters the middle class consumer community
which includes:
 Mustafa Town
 Allama Iqbal Town
 Wahdat Colony
 New Muslim Town
 Model Town

Costs associated with location:
The costs (all are in Rs.) that are associated with location are Security cost and Rental Cost. This is shown
as:
Cost associated: Rs
Nursery Rent 12,000
Nursery Security 24,000
MARKETING IMPORTANCE OF THE LOCATION:
The major importance and the benefit of choosing the above location are:
 Model town area is one of the famous areas for nurseries with in Lahore.
 It will provide customer convenience as initially we will be targeting the residential areas that
are coming from the locality of Mustafa Town, Allama Iqbal Town, Wahdat Colony and
New Muslim.
 The infrastructure of Model town is better as compared to other middle class areas
Residential location:
Residential area refers to a place where people live. “Organic Veg” will not be in the
commercial location, it will be situated in the place where the customers get convenience in
finding and reaching that location.
FACTORS AFFECT METHODS OF DISTRIBUTION:
Sales:
The sales will increases as we make order through kiosk that contains the painting of our
logo and small description of our products. Kiosk will be handled by the sales representative. He
will not only give awareness for further growth but also used to take orders for seed bed
preparation, seed sowing, etc for houses.

Services:
The services that are being provided by “organic veg” is to visit the consumer houses on
weekly and monthly basis. This help “organic veg” to increase their positive positioning which
in turn increases their distribution area with in Lahore.
Promotion:
The promotion “organic veg” that affect the methods of distribution are:
 Brochures that contain the important aspect of vegetable related issues

 Kiosk that contains the logo of our nursery that is used for taking orders from consumers and
get awareness of organic vegetable consumption to them
Timing:
Timing affects a lot on the method of distribution because nobody can wait long for
product manufacturing. The venture will have to provide the vegetable on right time (within the
sowing period). Therefore, the company needs to make its distribution network strong as they get
more consumers.
Economic:
The economic affect of organic grown vegetables at home is the cost efficiency. Cost
efficiency refers to the cost reduction in consuming the organic vegetables. As per the research
of “Sherkat Gah” the organic vegetable cropping in 6000 sq feet at home will save
approximately Rs.20, 000 per year.
PROMOTION STARTEGY:
“Organic Veg” will be a small and medium size venture who needs to make awareness
about the product they are providing to the customers because middle class people in Pakistan
want organic vegetables but do not really aware about the benefit they are getting from it in form
of heath and finance. Therefore, after analyzing the trends “organic Veg” develop a pull strategy
to make the people aware about their product. The following are the ways through which the
company is promoting its products:

1. FLYERS
“Organic Veg” management will use the flyers to promote their product as flayer is cost
effective for small business development within their target market. This also helps to generate
responses in a short span of time. We use the green color which is close to the nature in flyers
which continuously influence customer buying decisions and opinions. They will be swapped
with newspapers in different areas through the news paper hackers.
 The total cost of 1000 flayers is Rs. 800
 The target areas for flayers are Mustafa town, New Muslim town, Garden town, Allama Iqbal
Town
 The Distribution coverage for flayers is Wahdat road, Canal road, Sheikh Zaid road, Dubai
chock
 This promotional or advertisement medium sends information about organic Veg for One
week.
SOME OF THE PROMOTIONAL TOOLS ARE SHOWN IN EXHIBIT 1
2. MANUAL
The second method that will use for the “Organic Veg” is manuals. Manual are some how
expensive as compare to the other methods. Manual only focuses on our particular products. It
will mention all the product packages for our potential customers. We will send this manual to
our customers on seasonal basis.
 The cost of manual is Rs. 2500

 The target areas for flayers are Mustafa town, New Muslim town, Garden town, Allama Iqbal
Town
 The Distribution coverage for flayers is Wahdat road, Canal road, Sheikh Zaid road, Dubai
chock
3. WEBSITE

In future “organic Veg” will promote its product through the website. This is a sure way
of making your business known amongst the online community and will aware them about
“Organic Veg” product and services in low cost.
 The Cost of website is 1200

 Target market for website is online community
 The Distribution coverage through website is the people who are doing online business.
4. BUSHEL BOXES STAMP AND INK:
Organic Veg will also use stamp advertisement on bushel boxes. These are given to the
entire consumers who buy the product from “organic Veg”. In this method, organic Veg places
the stamp on the bushel boxes containing venture name and contact number. It enables the
venture to increase its promotion through words of mouth in all the areas in which in it selling.
The annual cost company have to bear on it is Rs 700. The target areas for bushel boxes stamp
and ink are mainly consumers of Mustafa town, New Muslim town, Garden town, Allama Iqbal
Town.
5. KIOSK
“Organic veg” will use kiosk for the promotion. In this method, one sales representative
will be available in kiosk and provide specific information and take orders from customers. The
position of kiosk will be changed on weekly basis to target all the locations. It also sells the
organic seedling if the customer demands. The cost of manufacturing and placing the kiosk is Rs.
4000 which will be placed in Mustafa town, New Muslim town, Garden town, Allama Iqbal
Town.
OPERATIONAL PLAN:
The operational plan starts with choosing the location that is the key aspect of the
business. Our location of nursery is on Model town Lahore. Hiring of expert gardeners and
advertisement were followed in the month of April. The opening of nursery will be in the mid of
May after the hiring of employees. We will be taking the orders up till June and will start proper
operations in the month of Kharif season.

Operational Plan of Proper Functioning
Execution Period
Task March April May June
Choosing Location ■
Website Development ■
Hiring of Gardener ■
Opening of Nursery ■
Advertising ■
Taking Orders ■
Opening operations ■
SUPPLY CHAIN MANAGEMENT
INVENTORY MANAGEMENT:
Inventory Management and Inventory Control are designed to the customer seasonal demand
accordingly. The basic principles of Inventory Management and Inventory Control remain the
same in our business “Organic veg”. this department will efficiently manage the flow of material
and demand further material from suppliers according to requirement. The basic building blocks
for the Inventory Management system and Inventory Control activities are:
 Sales forecasting
 Sales and operations
 Production
 Material requirements
 Inventory reduction

The emphases on each area will vary depending on our company and how it operates, and
what requirements are placed on it due to market demands.
OPERATIONS SUPPLIERS
Name of the suppliers:
Suppliers are the main component of our business that are acting as major source of getting the
raw material that are being used in day to day operations at home.
The suppliers of Organic Veg are:
 Organic shop
 Punjeri
 Bejo shetal (Haji Sons)
 Araien Zaraei Corporation
 Rehman nursery
From above mentioned Suppliers the main suppliers are:
1. Organic shop:
Organic shop is located in Lahore that is providing seeds and equipment that are needed
by “organic veg”.
2. Araien Zaraei Corporation:
Araien Zaraei Corporation is providing the seeds of organic vegetables. They are also
situated in Lahore.
3. Rehman nursery:
They are the suppliers of the soil that is used in the home and nursery for growing of
seedlings or seeds.

BACK UP SUPPLIERS:
Back up of every thing is always necessary for smooth business processes. Therefore,
“organic veg” management also has to back up or raw material through contract with other
suppliers which act as secondary suppliers
1. Punjeri:
Punjeri will be the supplier in case of any problem occurs with the main suppliers they
are located near to Lahore.
2. Bejo shetal (Haji Sons):
A Haji son is the distributor of Bejo Shetal in Pakpaten.
ADDRESS OF SUPPLIERS:
Organic shop: 550 Khuda Bakhsh New Airport Road, Lahore Cantt
Punjeri: Rohra Pind 20 km Baidyan Road
Bejo shetal (Haji Sons): Shop #54 Sabzi Mandi Pakpaten
Araien Zaraei Corporation: 2 Sabzi Mandi Firoozpur Road Lahore
Rehman nursery: Wapda Town Lahore
 TERMS AND CONDITIONS FOR SUPPLIERS:
Many terms and conditions are presented between the suppliers and organic veg nursery:
 The price of seeds will be stated on the quotations received from the Supplier.
 Orders that will be placed to the suppliers can be delivered to nursery within 4 days.
 If suppliers couldn’t have enough seed or soil or other related equipment that are needed
then they must tell at the time of order.

 TERMS AND CONDITIONS BY SUPPLIERS:
Non-Warranty:
The seeds that are provided by suppliers are not assured and warranted for progress, that are
tested on the areas but as the soil condition may very therefore there is no surety.
 PRODUCT LINE:
Seeds, seedlings, Soil, equipment and other raw materials will be provided by the
suppliers. Quality seed is one of the key factors in producing quality vegetables. Seed can be
collected or purchased, and should originate from superior and proven source seed stand, seed
production areas.
 PRICING:
Soil:
1 trolley of soil is of Rs. 1,600 (provided by Rehman Nursery)
Seeds:
Seeds and seedlings are provided by Araien Zaraei Corporation
Vegetables Prices per kg in Rs.

Dhanya 150
Chili 150
Onion (paneri) 100
Saag 200
Carrot 1,000
Spanish 150
Lady finger 24
Tomato 26
Ginger 300
Fenugreek 1,000
Turnip 750
Peas 250

TERMS AND CONDITION FOR CONSUMERS:
The following are the terms and conditions for consumers are:
 The Company cannot be held responsible for plant failures. Customers are advised to read the
guidance notes on plant establishment in the brochures
 If the plants supplied are incorrect, are of poor quality or have been delivered in a damaged state
then we will replace damaged plants
 Non-Warranty: The seeds that are provided by suppliers are not assured and warranted for
progress, that are tested on the areas but as the soil condition may very therefore there is no
surety.
LOGISTICS:
The logistic of “organic veg” will be start from the raw material given from supplier to the
product reaches the end consumer. This is shown as:
Supplier 1 Supplier 2 Supplier 3
Seeds and seedlings Equipment Soil
Organic Veg
Consumer Home

ORGANIZATIONAL STRUCTURE:
 LEGAL STRUCTURE:
Organic veg will be start with 5 member’s partners having equal share. Under the partnership act
1932, we are registered in the partnership at- will.
Partnership at-will: -
 The cores of a “partnership at-will” are the following:

 The partners do not limit the duration of their partnership,
 They are free to break their relationship at any time.
The partnership deed signed by all the partners of “Organic Veg” is given in (exhibit 3)
 HUMAN RESOURCE MANAGEMENT:
In human resource management, “organic Veg” will allocate organizational structure,

staffing plan, salaries and their job description and specification as given below:
 ORGANIZATIONAL STRUCTURE/ STAFFING PLAN:
The organizational structure or staffing plan of “organic Veg” includes:
1. Full time:
“Organic veg” is a retail nursery that sells directly to the general public. Two caretakers
of the seedlings in our nursery are the full time workforces and five sales representatives are
hired for running day to day operations.
2. Part time:
Part time workers are one gardener and two labors that were hired on the starting of any
season when the demand of our product were so high. They were hired so that all the processes
will be effectively managed.

3. Guard:
One guard will be hired for night shift for the security purpose of our nursery.
 STAFFING PLAN:
The staffing plan of “Organic Veg” is shown as:
SALARIES:
The salaries and the benefits given to the employees are given below:
Rates:
The rates that are selected for the daily wages workers are selected by analyzing the trend
of the wage rate per day in the existing market. The part time gardener and labor receive the
daily wage of 300 per day respectively. However, the salaries of gardeners are 6,000 per month
and the sales representative gets a pay of 7500 per month.
Benefits:
Organic Veg will provide only the lunch to all the gardeners, labor and guard working in
nursery.
 JOB DESCRIPTION:
Sales representatives:
Sales representatives is a person that is responsible for the task of handling supplies,
taking demand on Khios, manage marketing and will go with gardener and labor for the set up of
beds and sowing of the seedlings at homes of customers.

Labor:
Labors that were hired on daily wages are for the 12 days will work with the gardener at
the customer home. Their duty is to prepare the beds that are difficult to handle by one person.
Gardeners:
Gardeners are the key expertise in our business that is information to customer regarding
the variety of relevant things used in the cropping. Caretakers (gardeners) of the seedlings in our
nursery are the practiced one in the caring of seedlings. They must know about many different
plant varieties.
 ROLES AND RESPONSIBILITIES OF GARDENER:
The roles and responsibilities of gardener are:
 He must carefully take care of the vegetables plants.

 Maintain records of seedlings and their growing conditions.
 Assists sales representatives about the other materials needed to nourish and maintain the
plants.
 Provide information for what things are suitable for gardening or landscaping.
 SKILLS AND SPECIFICATIONS:
The job skills and their specification are:
 He must understand which diseases or pests might affect the vegetable plants and make
provisions for their control.
 He should be creative and design the displays of the nursery.
 He should have knowledge of the preparation of soil, arrangement of vegetable beds,
transplanting of vegetable plants.

ROLES AND RESPONSIBILITIES OF PRINCIPAL:
The roles and responsibilities of principals are:
 He has to be able to give advice to customers about purchase, selection, nourishment of

seedlings etc.
 He should maintain inventory by ordering for different materials whenever required.
 He should participate in seeding sowings of the vegetable plants.
SKILLS AND SPECIFICATIONS:
The job skills and their specification are:
 He must have the knowledge of sales and marketing of products specially nursery products
 He must have to skill to better deal with the potential and actual customers
 Must have the knowledge of vegetables and nursery management
FINANCIALS
ORGANIC VEG INVESTMENT:
At the beginning, organic veg owners is making an investment of 15lakh for starting their
venture. In this they are expanding 12 lakh on the venture and 3 lack is deposited to save the
business if any loss occurred.
INCOME STATEMENT:
The three year the income statement of Organic veg shows the following results:
 The sales of 2011, 2012 and 2013 are Rs.1999840, Rs. 2279817.6 and Rs. 2576193.888
respectively.
 The expenses of 2011, 2012 and 2013 are Rs.194600, Rs.159400 and Rs. 165710 respectively.
 The profit/loss of 2011, 2012 and 2013 are Rs.-123523, Rs. 4367.097867 and Rs.127510.6289
respectively.

THE INCOME STATEMENT IS SHOWN IN EXHIBIT 4.
CASH FLOW
The three year cash flow statement of Organic veg shows the following results:
 The total cash of operational activities of 2011, 2012 and 2013 are Rs. 3793474, Rs. 4272913
and Rs. 4730913
 The cash flow statement shows the net cash of 2011, 2012 and 2013 that is Rs. 3838954, Rs.
4272913 and Rs. 4730913 respectively.
THE CASH FLOW STATEMENT IS SHOWN IN EXHIBIT 5.
BALANCE SHEET:
The three year the balance sheet of Organic veg shows the following results:
 Balance sheet of 2011, 2012 and 2013 represents the total assets of Rs.5, 128,056, Rs.5, 717,273
and Rs. 6,343,115 Respectively.
 Equity of 2011, 2012 and 2013 is showing the value of Rs. 3,702,939, Rs.4, 151,488 and Rs.
4,671,255 respectively.
 Liability of 2011, 2012 and 2013 is representing the values of Rs. 1,425,117, Rs.1565785.38
and Rs.1671859.333 respectively.
THE BALANCE SHEET IS SHOWN IN EXHIBIT 6.
FINANCIAL ANALYSIS:
Return on Equity (ROE)
The formula for ROE is:
ROE = Net Income/Equity
2011 2012 2013

Net Income -125440 2182 125019
Equity 3,702,939 4,151,488 4,671,255

Return on Equity (ROE) -3.39% 0.05% 2.68%

The ROE showed that in the year 2011, the venture is getting the loss of 3.9% on the
total equity they are investing. In the year 2012, they are getting the return of 0.05% on their equity but
in the year 2013, they are getting 2.68% return which shows that the company is now start generating
profits on the equity investment.
RETURN ON INVESTMENT (ROI)
The formula for ROI is:
Net Income / Value of Assets
2011 2012 2013

Net Income -125440 2182 125019
Asset 5,128,056 5,717,273 6,343,115
Return on Equity (ROE) -2.45% 0.04% 1.97%
The ROI showed that in the year 2011 the venture is losing 2.45% on the total assets whereas in
the year 2012 the "Organic veg" is gaining 0.04% on all the assets they are investing. In the year 2013,
the company is gaining much higher profit than 2012. it is gaining 1.97% return on the assets on Rs.
125019.
BREAKEVEN:
The formula for breakeven is:
=Fixed Costs / (Selling Price per Unit - Variable cost per unit)
The fixed cost of nursery is: 1018925.833
The selling Price Per unit for nursery is 12499
The variable Cost per unit for nursery is: 6874

Breakeven in units 181
This showed that "organic veg” have to sell its packages to 181.15 to 5 Marla houses.
These might be the combination of 5 Marla, 10 Marla = two 5 Marla houses or 1 kanal = four 5
Marla houses
CRITICAL RISK
 POTENTIAL PROBLEM:
“Organic veg” can face multiple problems. Some of the potential problems are given below:
1. Crop failure:
Nature has is an important factor in the nursery business. It might be possible that climate
change became a cause of the failure of crop. The increasing effects of global warming on the
agricultural climate in Pakistan are posing huge problems for the people. Due to the increase in
temperature and the scarcity of adequate rainfall, “Organic Veg” might face a severe crisis of
fluctuation in the seasons.
2. Raw material:
The suppliers of “Organic veg” might increase the price of raw material due to the
increase in prices of raw material. So the increase in price will create the problem for “organic
veg” because they have to reduce their margin profit they were getting.
 OBSTACLE AND RISKS:
The obstacles and risks faced by “Organic Veg” are:
1. Change in the government regulations
In Pakistan the political situation is really depressed. They are continuously changing
policies which are indirectly effect the plant nurseries like the increase in the prices of electricity,
increase wages limit, lack of infrastructure, lack of research institution etc. Due to these,

“Organic veg” will also be affected as they have to bear more expenses of raw material, tools and
etc.
2. Customer involvement
Customer involvement is one of the major risks. This might be the case that customer will
not involved to purchase this type of organic setup at home after getting all the information and
promotion because they are more concern about their work.
3. Backward integration
Backward integration of supplier is also a risk for “organic veg” as they have capacity of
developing this kind of nursery.
CONTINGENCY PLAN:
In our business we need to make contingency plan according to the suppliers, employees
and the nature of product. It is given as:
Suppliers:
If the main suppliers of our nursery quit then we have some market from where we easily
get the require material for our nursery at once to meet the demand like the seeds are easily
available in the vegetable markets where a lot of seeds are available.
Employees:
If case of employees resign or quit from doing the job then we hired part time employees
till a new employee will hired. That employee should have at least some know how of sowing.
Perishable:
The natures of our product are perishable. When these seedling life crossing their
maturity age then we will use them as a fertilizer after decomposing in the soil as well as used
them in making pest control syrup to reduce the expense of getting raw material for pest syrup.
MANPOWER LOADING:

“Organic Veg” is comprises of gardeners, guard, part time employees and nursery
representatives. The time allocation in which they have to complete their tasks is shown as:
Man Power Loading Working Hours Per Person Total

2 permanent Gardener 8 a.m - 10 p.m 6000 12000
1 Guard 10p.m - 8a.m 5500 5500
1 Part Time Gardener for 48 days Set according to the Requirement 300 14400
2 Part time Labor for 48 days Set according to the Requirement 300 600
5 Nursery Representative 8 a.m - 10 p.m 7500 37500
Total 19600 70000
PERT/ CPM CHART:
PERT/CPM chart is representing the tasks that are being performed by the participants in
completion of the project. The small text boxes are representing the days that were involved in
the completion of task and the arrows define the direction of tasks. This is shown as:

10 5
8 1


EXIT STRATEGY:
The exit strategy that will be followed of “Organic Veg” is Acquisition. The reason for
selection this approach is that it will provide a better way to make a profit and success as the
identity and ownership remains identical in this process. In this type of method the combination
of both businesses will leads to the profitability by acquiring the business processes, customers,
technology or even employees are working jointly.
Our nursery will make Acquisition with any nursery that is interested and dealing with
seed, seedlings and the organic vegetables. Through making this joining we will enable to
enhance the profitability and also increases the sales.
CONCLUSION:
For starting any venture people have to face many obstacles therefore, they need to
provide some things that differentiate among competitors. In starting “organic veg” the most
attractive feature they are providing are their seasonal services. It identifies the target markets in
the areas of model town, wahdat road, and mustaffa town and promotes their product through the
flayers, kiosk and manual. Similarly, organic veg is making a power full strategies form price,
product package and distribution tat helped it to become successful in today’s environment.

REFERENCES
1. http://pakgardening.iforums.us/list-of-plant-nurseries-vt3.html
2. http://jia.sipa.columbia.edu/role-politics-pakistans-economy-0
3. http://www.adb.org/documents/assessments/country-environmental/pak/country-environment-
analysis.pdf
4. http://www.euromonitor.com/factfile.aspx?country=PK
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%20ORGANIC%20AGRICULTURE%20IN%20OTHER%20AFRICAN.pdf
6. http://www.tbl.com.pk/indus-basin-irrigation-system-of-pakistan/
7. http://irrigation.punjab.gov.pk/pmiuindex.aspx
8. http://www.finance.gov.pk/survey/chapter_10/02_Agriculture.pdf
9. http://docs.google.com/viewer?a=v&q=cache:Fy69EP615zoJ:journeytoforever.org/
farm_library/worthington-
organic.pdf+nutritional+value+organic+vs+inorganic&hl=en&gl=pk&pid=bl&srcid=ADGEESi
AQ6t4hRH1lm9XlTJWnz_obSA39PNwUhz0qLKsqAQIkAtdznU3sxziO905hNkuC1JC-
LSm3ufw32bUt0CsPS0vdhu252ZCWbQr91aI2ONrQqY6nq0fiNuBg-
x1Pxt3Va1PxNku&sig=AHIEtbS2XfXl_9_gjrUfB6-j7L0NMUhOaw&pli=1

Organic Veg

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Organic Veg

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“ORGENIC VEG” ENTREPRENEURSHIP

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 1

“Our vision is to sustain profitable growth by making people self sufficient

to grow and consume 100% organic vegetables.”

“Organic veg” will makes a unique contribution in home base farming

Consumer to get proper healthy diet”

 Improve the health:

 Safe and natural

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 2

 Protect Future Generations

The following are the owner/principals of “”organic veg

Sajjad Hussain Nouman Riaz Butt

Anum Shahid Kanwal Nawaz

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 3

The logo of “organic veg” is

The location of “Organic Veg” is in model town.

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 4

The contact information of “organic Veg” is

STANDARD SET PACK CONTAINS

 Seedlings and seeds

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 5

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 6

THE PORTERS 5 FORCES MODEL

Bargaining Power of Buyer.

Assess the power of

Buyers Does the buyer have complete information on 1 2 3 4 5

Result: bargaining power of buyer is low

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 7

BARGAINING POWER OF SUPPLIERS.

Assess the power of

Product Is the suppliers product or service a 1 2 3 4 5

Result: bargaining power of suppliers is low

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 8

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 9

that may sacrifice short-term profitability.

Result: Intensity of Rivalry is high

Threat of New Entrants

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 10

policies can typically create a barrier to entry

Result: Threat of New Entrants is moderate

Result: Threat of Substitution is moderate

The pest analysis of agriculture sector of Pakistan is given below:

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 11

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 12

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 13

The SWOT analysis of industry is:

1. Local farming systems

2. Large labor force

3. National organic movements

4. Low cost of production

5. Availability of technologies for organic production

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 14

6. Strongly motivated and committed organic sector

1. Poor marketing image

2. Education and extension system

4. Lack of reliable data and information on organic agriculture

5. Poor local market opportunities and infrastructure

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 15

1. Availability of pure land

2. Increasing interest in organic agriculture

3. Increasing local awareness of benefits of organic foods

2. Mismanaged government policies

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY 16