BUSINESS PLAN

“THE ULTIMATE WORKING MACHINE”

1
ABOUT US

We are a diverse team with unique perspectives. United

in our purpose, our strategy and our culture. Driven by
our ambition and the power of technology to drive
human progress. Unwavering in our commitment to
equality, trust and advocacy for one another.

2
 CORE PURPOSE
We create technologies that drive human
progress
Our story began with a belief and a passion: that everybody should
have easy access to the best technology anywhere in the world.
We are on a path to become the world’s leading technology
companies helping to transform people’s lives with extraordinary
capabilities. From hybrid cloud solutions to high-performance
computing to ambitious social impact and sustainability initiatives,
what we do impacts everyone, everywhere.
3
 MISSION
Our aim is to be the most advanced manufacturer
of micro computers in the world. We aim at
delivering the best customer experiences at
affordable price and creating a favorable
workplace in which employees can collaborate
and offer innovative ideas.

4
 5

CORPORATE OBJECTIVE

Our objective is to provide excellent customer services by

building a strong market presence. We will be focusing on
investing our resources for the future in order to gain long term
advantages. Our focus will also be on manufacturing
productivity in order to minimize the cost associated with it. We
aim to develop a strong market hold in the IT industry in order
to make large profit in the future.
 QuaNtum Ltd.
TIMELINE
HIGHLIGHTS OF THE JOURNEY FROM QUARTER 1 TO
QUARTER 5

2021 2021 2021 2021 2022

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5
Development Stage Initiation Stage Growth Stage Growth Stage Growth Stage

♣ Launched Quantum ♣ Focused on two major ♣ Given emphasis on ♣ Modified existing brands as ♣ Launched two market segments
micro computers in the market segment advertising (Mercedes and Traveler) and two
per customer needs and brands (Axor and Backpacker)
industry (Innovator and wants. (Mesh 1.0 and Alpha
Workhorse) ♣ Hired salespeople 1.0) ♣ Invested heavily in Feature R&D
♣ Planned and assigned
executive ♣ Created two brands ♣ Started sales in different ♣ Set competitive prices for our ♣ Focused more on regional media
responsibilities (Mesh and Alpha) region brands advertising
♣ Bought market ♣ Build production facility ♣ Bought Market research ♣ Earned a trophy for ♣ Invested in quality costs
research for further location in Shanghai significant sales volume
development
♣ Earned a trophy of for ♣ Bought market research for all regions
♣ Targeted regions – RIP Changeover that was ♣ Earned a trophy for best rated ♣ Opened new sales channel in
♣ Invested highly in NORAM, APAC less than 5% ad in more than two segments NORAM, MEA, LATAM AND
Certificate of deposits
♣ Web sales center - Europe ♣ Earned a trophy for most EUROPE
 QuaNtum Ltd.
MESH 1.0
An ultra fast machine that can handle large tasks and that fall under
the category of Innovator.

ALPHA 1.0

PRODUCT LINE An economical category machine that can be easily set up and
give high performance comparatively over price. A brand
classified under the category of Workhorse.

AXOR
A machine that caters to the need of high performance and that
can handle complex manufacturing process controls. A brand
classified under the category of Mercedes.

BACKPACKER
A machine that can connect to office when on road and is easy to
carry, classified under the category of Traveler.

7
REVIEW OF FINANCIAL
PERFORMANCE

 Talking about revenue, it was ₹ 3,81,482 in Q3 and ₹ 20,81,209

in Q4. Looking at the growth in Q4 it was approximately 5.46
times from that of Q3.
♣ Talking about the Gross profit, it was 2,16,476 in Q3 and 6,84,106
in Q4. The figures shows a growth of approx. 3.16 from Q3 to Q4.
♣ Referring the balance sheet, the cash figure shows a steady rise
during Q4 from Q3. The cash at the end of Q3 was 2,08,734
comparatively to 9,10,665 in Q4. This shows a growth of approx.
4.36 times.

8
 REVIEW OF MARKET
PERFORMANCE

 Market Performance is a measure of how well the managers are able to

create demand and our company’s market performance for Q4 can be seen
through the Net Demand comparatively the Net Demand during Q3.
 Figures shows a Net Demand of 1459 units in Q4 compared to 123 units in
Q3.
 Analysing the market performance of the company during Q3, it was 9%
of the total market share.
♣ But there was a rapid increase in market share of the company during Q4
that increased from 9% in Q3 to 15 % in Q4.
♣ Computing the growth rate between Q3 and Q4, it is 66.66%.
♣ This shows Quantum has started building a substantial market presence.
9
 ASSESSMENT OF CURRENT
SITUATION AND THE MARKET

• Net Demand is 1459 units, unit sold =

784
• Lost sales due to stock out = 674 units
CUSTOMER • Therefore, demand for our product is
high
• Market share (0.132) also rose in the
Quarter 4 as compared to Quarter 3

• Rise in Investment in future

• Market share also increases to 15% in
Q4 as compared to 9% in Q3.
COMPETITION • Aggressiveness and the level of threat
from Infynix is quite high

10
 COMPANY’S STRENGTH AND
WEAKNESS

Strengths Weaknesses
Price is economical
Marketing Effectiveness
Brand design is according to customer needs and wants
Marketing Advertising
Wider reach through advertisements

Demand for sales office

Sales Channel Workforce and support services
Web sales demand
Human Resource Sales Force Productivity High Compensation offered by competitors
Operating Capacity
Productivity of Manufacturing
Manufacturing Low Stock Outs
Fixed Capacity
Lean Manufacturing
Financial Performance
Retained Earnings
Finance Wealth
Low Financial Risk
Profitability
Overall Investment for future prospects Overall Market Share
11
 COMPANY’S OPPORTUNITY
AND THREATS

Opportunities Threats
Better and improved advertising Competitor pricing
Marketing
Foreign Investments
Sales Channel Access to new markets Demand of Competitor's product
High Compensation schemes by competitors
Human Resource Incremental Compensation to the salesforce
Poaching
Manufacturing Minimum changeover cost Overhead cost related to stock hold
Debt free firm
Finance Higher Interest Rates would lead to less purchases by the customers
Increase market share
Competitors Tactics and Strategies
Profit Maximisation
Overall Brand Segment of Competitors
Expansion
Advertisements by competitors
12
 • Take further decisions keeping in mind the Customer needs and wants.
• Demand Projection and other analysis to be done in order to solve the problem of loss due to stock
outs.
Marketing Strategy • Creative advertising through local and regional channels.
• Regional Media Placement before 10-12% and now around 44% (Huge)
• Local Media Placements 10-12% and now around 28%

• Invest in plant capacity only after demand is proven

• Run production at highest production volume possible to reduce unit costs
Manufacturing Strategy • Maintain tight cost control of operations
• Our Manufacturing productivity is the highest from our competitors

STRATEGIES • Pursue selective distribution (open small number of high profit outlets)

FOR FUTURE Sales Channel Strategy

•
•
Focus on the markets which have the greatest sales potential
Focus on markets that minimize competition
• Maintain high ratio of service people to sales people
• Dominate with superior sales force numbers

• Invest heavily in human resources

Human Resource Strategy
• Offer competitive compensation packages to control production worker costs
• Offer competitive compensation packages to control sales force costs

• Take a moderate position on financial risk

• Make choices based upon the numbers (ROI, profit analysis, etc.)
• Invest in decisions that have a high probability of success
Financial Strategy
• Minimize debt to reduce financial dependence & interest
• If additional capital is needed, place more emphasis on common stoc
• Keep at least 51% of ownership to maintain control
13
 FINANCIAL
REQUEST
♣ Quantum micro computer want to pitch 31250 shares having face value of Rs. 165. The
reason for pitching such face value is as follows:
 We have strongly given emphasis on future investment from Quarter 1. This can be
clearly seen through the balance scorecard.
 We have the best manufacturing productivity as compared to all the competitors.
 Talking about market share, the growth from Quarter 3 to Quarter 4 is the highest i.e.
66.66% that is the highest from all the competitors.
 We have also planned to invest heavily in featured R&D, new sales stores, quality
costs, regional advertisement, R&D exp to improve changeover, Operating capacity,
Human resource in this quarter. This can be seen through the Pro forma cash flow.
 Moreover, we have also planned our future investments that will take place in Quarter
6, 7 and 8 respectively.
 Detailed plan can be seen in Tactical planning

♣ We have projected reasonable figures for futures that can easily be achievable looking at
our growth prospect.
14
 PRO FORMA CASH FLOW
Report Item Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Quarter 8
Beginning Cash Balance 0 45,200 1 2,08,734 9,10,665 8,29,925 33,05,352 42,04,181
Receipts and Disbursements from Operating Activities
Revenues 0 0 3,81,482 20,81,209 26,05,042 89,32,680 1,11,60,160 1,05,09,400
- Rebates 0 0 9,840 33,650 33,699 35,000 0 0
- Production 0 0 4,30,779 12,27,108 15,79,552 48,60,000 48,62,000 48,62,000
- Research and Developm ent 0 1,20,000 0 1,20,000 23,12,730 60,000 6,20,000 1,20,000
- Quality Costs 0 0 15,401 32,940 2,78,248 2,50,000 3,00,000 3,00,000
- Advertising 0 0 1,31,518 1,67,470 5,29,045 6,00,000 6,50,000 6,50,000
- Sales Force E xpense 0 0 3,03,584 1,95,376 5,54,623 6,66,031 9,01,914 7,77,000
- Sales Office and Web Sales Center E xpenses 0 5,80,873 3,41,693 4,20,797 10,59,056 4,69,705 5,38,379 1,98,522
- Web Marketing E xpenses 0 0 1,22,000 50,000 50,000 50,000 50,000 50,000
- Marketing Research 88,000 0 69,000 69,000 1,15,000 1,15,000 1,15,000 1,15,000
- Shipping 0 0 9,489 49,010 61,989 1,82,100 2,10,202 2,10,202
- Inventory Holding Cost 0 0 27,561 13,927 13,836 13,836 13,836 13,836
- E xcess Capacity Cost 0 0 3,43,451 0 0 0 0 0
- Incom e Taxes 0 0 0 0 0 0 0 3,89,786
+ I nterest Incom e 13,200 10,500 0 0 0 0 0 0
- Interest Charges 0 0 3,259 0 0 55,582 0 0
+ Licensing Incom e 0 0 0 0 0 0 0 0
- Licensing Fees 0 0 0 0 0 0 0 0
+ Other Incom e 0 0 0 0 0 0 0 0
- Other E xpenses 0 0 0 0 0 0 0 0
= N et Operating Cash Flow -74,800 -6,90,373 -14,26,093 -2,98,069 -39,82,736 15,75,426 28,98,829 28,23,054
Investing Activities
Fixed Production Capacity 0 6,00,000 0 0 10,98,029 11,00,000 0 0
+ Sinking Fund 0 0 0 0 0 0 0 0
= Total Investing Activities 0 6,00,000 0 0 10,98,029 11,00,000 0 0
Financing Activities
Increase in Com m on Stock 10,00,000 10,00,000 10,00,000 10,00,000 50,00,025 0 0 0
+ Borrow Conventional Loan 0 0 0 0 0 20,00,000 0 0
- Repay Conventional Loan 0 0 0 0 0 0 20,00,000 0
+ Borrow Long-Term Loan 0 0 0 0 0 0 0 0
+ Borrow E m ergency Loan 0 65,174 0 0 0 0 0 0
- Repay E m ergency Loan 0 0 65,174 0 0 0 0 0
- Deposit 3 Month Certificate 8,80,000 0 0 0 0 0 0 0
+ Withdraw 3 Month Certificate 0 1,80,000 7,00,000 0 0 0 0 0
- Dividends 0 0 0 0 0 0 0 0
= Total Financing Activities 1,20,000 12,45,174 16,34,826 10,00,000 50,00,025 20,00,000 -20,00,000 0
Cash Balance, End of Period 45,200 1 2,08,734 9,10,665 8,29,925 33,05,352 42,04,181 70,27,235
Cost of Goods Sold
Starting I nventory 0 0 0 2,75,613 1,39,267 1,38,360 1,38,360 1,38,360
+ Production 0 0 4,30,779 12,27,108 15,79,552 48,60,000 48,62,000 48,62,000
= Available Inventory 0 0 4,30,779 15,02,721 17,18,819 49,98,360 50,00,360 50,00,360
- Cost of Goods Sold 0 0 1,55,166 13,63,453 15,80,459 48,60,000 48,62,000 48,62,000
= Ending Inventory 0 0 2,75,613 1,39,267 1,38,360 1,38,360 1,38,360 1,38,360
15
PRO FORMA INCOME STATEMENT
Report Item Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Quarter 8
Gross Profit
Revenues 0 0 3,81,482 20,81,209 26,05,042 89,32,680 1,11,60,160 1,05,09,400
- Rebates 0 0 9,840 33,650 33,699 35,000 0 0
- Cost of Goods Sold 0 0 1,55,166 13,63,453 15,80,459 48,60,000 48,62,000 48,62,000
= Gross Profit 0 0 2,16,476 6,84,106 9,90,884 40,37,680 62,98,160 56,47,400
Expenses
Research and Development 0 1,20,000 0 1,20,000 23,12,730 60,000 6,20,000 1,20,000
+ Quality Costs 0 0 15,401 32,940 2,78,248 2,50,000 3,00,000 3,00,000
+ Advertising 0 0 1,31,518 1,67,470 5,29,045 6,00,000 6,50,000 6,50,000
+ Sales Force Expense 0 0 3,03,584 1,95,376 5,54,623 6,66,031 9,01,914 7,77,000
+ Sales Office and Web Sales Center Expenses 0 5,80,873 3,41,693 4,20,797 10,59,056 4,69,705 5,38,379 1,98,522
+ Web Marketing Expenses 0 0 1,22,000 50,000 50,000 50,000 50,000 50,000
+ Marketing Research 88,000 0 69,000 69,000 1,15,000 1,15,000 1,15,000 1,15,000
+ Shipping 0 0 9,489 49,010 61,989 1,82,100 2,10,202 2,10,202
+ Inventory Holding Cost 0 0 27,561 13,927 13,836 13,836 13,836 13,836
+ Excess Capacity Cost 0 0 3,43,451 0 0 0 0 0
+ Depreciation 0 0 25,000 25,000 25,000 70,751 1,16,585 1,16,585
= Total Expenses 88,000 7,00,873 13,88,698 11,43,520 49,99,527 24,77,423 35,15,916 25,51,145
Operating Profit -88,000 -7,00,873 -11,72,222 -4,59,414 -40,08,643 15,60,257 27,82,244 30,96,255
Miscellaneous Income and Expenses
+ Licensing Income 0 0 0 0 0 0 0 0
- Licensing Fees 0 0 0 0 0 0 0 0
+ Other Income 0 0 0 0 0 0 0 0
- Other Expenses 0 0 0 0 0 0 0 0
= Earnings Before Interest and Taxes -88,000 -7,00,873 -11,72,222 -4,59,414 -40,08,643 15,60,257 27,82,244 30,96,255
+ Interest Income 13,200 10,500 0 0 0 0 0 0
- Interest Charges 0 0 3,259 0 0 55,582 0 0
= Income Before Taxes -74,800 -6,90,373 -11,75,480 -4,59,414 -40,08,643 15,04,675 27,82,244 30,96,255
- Loss Carry Forward 0 0 0 0 0 15,04,675 27,82,244 21,21,791
= Taxable Income 0 0 0 0 0 0 0 9,74,465
- Income Taxes 0 0 0 0 0 0 0 3,89,786
= N et Income -74,800 -6,90,373 -11,75,480 -4,59,414 -40,08,643 15,04,675 27,82,244 27,06,470
Earnings per Share -7 -33 -38 -11 -37 14 26 25 16
 PRO FORMA BALANCE SHEET
Report Item Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Quarter 8
Current Assets
Cash 45,200 1 2,08,734 9,10,665 8,29,925 33,05,352 42,04,181 70,27,235
+ 3 Month Certificate of Deposit 8,80,000 7,00,000 0 0 0 0 0 0
+ Finished Goods Inventory 0 0 2,75,613 1,39,267 1,38,360 1,38,360 1,38,360 1,38,360
Long Term Assets
+ Sinking Fund 0 0 0 0 0 0 0 0
+ Net Fixed Assets 0 6,00,000 5,75,000 5,50,000 16,23,029 26,52,278 25,35,693 24,19,109
= Total 9,25,200 13,00,001 10,59,347 15,99,933 25,91,315 60,95,990 68,78,234 95,84,704
Debt
Conventional Bank Loan 0 0 0 0 0 20,00,000 0 0
+ Long-Term Loan 0 0 0 0 0 0 0 0
+ Emergency Loan 0 65,174 0 0 0 0 0 0
Equity
+ Common Stock 10,00,000 20,00,000 30,00,000 40,00,000 90,00,025 90,00,025 90,00,025 90,00,025
+ Retained Earnings -74,800 -7,65,173 -19,40,653 -24,00,067 -64,08,710 -49,04,035 -21,21,791 5,84,679
= Total 9,25,200 13,00,001 10,59,347 15,99,933 25,91,315 60,95,990 68,78,234 95,84,704
17
 Plan Item Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 5 Quarter 6 Quarter 7 Quarter 8
Innovator Innovator Traveler Mercedes Mercedes Mercedes
Workhorse Workhorse Mercedes Traveler Traveler Traveler
Workhorse
Segments Targeted None Costcutter Costcutter Workhorse Workhorse Workhorse Workhorse
Innovator
Traveler Traveler Innovator Innovator Innovator Innovator
Mercedes Mercedes Costcutter Costcutter Costcutter Costcutter
Number of New Brands 0 2 0 2 2 1 2 2
MESH MESH 1.0 Backpacker AXOR PRO WANDA
Names of New Brands CASIO
ALPHA ALPHA 1.0 Axor BACKPACKER PRO VISION
WANDA (2449)
AXOR PRO ( 4100) VISION (1949)
CASIO (2125) BACKPACKER PRO (3000) AXOR PRO ( 4100)
MESH (1850) MESH 1.0 (2,713) MESH 1.0 (2,713) CASIO (2125) BACKPACKER PRO (3000)
MESH (3799) ALPHA (1983) ALPHA 1.0 (2,300) ALPHA 1.0 (2,300) MESH 1.0 (2,713) CASIO (2125)
Brands for Sale & Price
ALPHA (3166) MESH 1.0 (2849) Backpacker (2,725) Backpacker (2,725) ALPHA 1.0 (2,300) MESH 1.0 (2,713)
ALPHA 1.0 (2303) Axor (3,925) Axor (3,925) Backpacker (2,725) ALPHA 1.0 (2,300)
Axor (3,925) Backpacker (2,725)
Axor (3,925)

Average Selling Price 0 0 3,233 2,651 2,858 2,757 2,984 2,810

Touch screen
Brand Feature R&D Projects None None None None None None None
High speed
Brand Feature R&D Expense 0 0 0 0 17,92,730 0 0 0
Media Plan (% local/% regional) 0% / 0% 0% / 0% 100% / 0% 37% / 63% 34% / 66% 30% / 70% 30% /70% 30% / 70%
Advertising Budget 0 0 1,31,518 1,67,470 5,29,045 6,00,000 6,50,000 6,50,000
Web Marketing Budget 0 0 1,22,000 50,000 50,000 50,000 50,000 50,000
Chicago
Abu Dhabi
Toronto Los Angeles Paris
Sales Offices Opened None None Sao Paulo Johannesburg None
Sydney Santiago Tokyo
Moscow
London
Sales Office Expense 0 2,90,000 1,31,061 2,22,275 8,60,534 2,71,183 3,39,857 0
Web Sales Centers Opened None Paris None None None None None None
Web Sales Center Expense 0 2,90,873 2,10,632 1,98,522 1,98,522 1,98,522 1,98,522 1,98,522

TACTICAL
Number of Office Sales People 0 0 12 12 31 50 70 70
Unit Demand per Office Sales Person 0 0 9 95 34 60 50 50
Number of Web Sales People 0 0 4 4 4 4 4 4
Unit Demand per Web Sales Person 0 0 5 81 26 60 60 60
Projected Demand 0 0 123 1,459 1,158 3,240 3,740 3,740

PLAN
Revenue from Unwanted Inventory 0 0 0 0 52,650 0 0 0
Projected Revenue 0 0 3,81,482 20,81,209 28,50,632 89,32,680 1,11,60,160 1,05,09,400
Cost of Goods Sold 0 0 1,55,166 13,63,453 17,45,892 48,60,000 48,62,000 48,62,000
Production Worker Compensation 0 16,000 19,135 21,225 22,348 24,000 25,000 26,000
Average Sales Person Compensation 0 0 43,439 44,841 36,817 38,000 40,000 42,000
Sales Force Salaries 0 0 1,73,754 1,79,363 3,22,149 5,13,000 7,40,000 7,77,000
Cost to Hire and Lay Off Sales People 0 0 1,13,822 0 1,40,076 1,53,031 1,61,914 0
Total Sales Force Expense 0 0 2,87,576 1,79,363 4,62,225 6,66,031 9,01,914 7,77,000
Addition to Fixed Capacity 0 25 0 0 50 50 0 0
Investment in Fixed Capacity 0 6,00,000 0 0 11,00,000 11,00,000 0 0
Available Fixed Capacity 0 0 1,625 1,625 1,625 4,875 8,125 8,125
Starting Inventory 0 0 0 199 92 0 0 0
Unwanted Inventory 0 0 0 0 75 0 0 0
Production Volume 0 0 317 678 962 3,240 3,740 3,740
Available Inventory 0 0 317 877 979 3,240 3,740 3,740
Ending Inventory 0 0 199 92 0 0 0 0
Lost Sales 0 0 5 674 179 0 0 0
Average Unit Production Cost 0 0 1,359 1,810 1,642 1,500 1,300 1,300
Total Production Cost 0 0 4,30,779 12,27,108 15,79,604 48,60,000 48,62,000 48,62,000
% Lost Capacity Due to Employee Morale 30 30 30 24 24 20 18 18
% Lost Capacity Due to Changeover 0 0 3 5 18 10 10 10
Operating Capacity to Satisfy Production Volume 0 0 469 941 1,544 4,500 5,068 5,068
Total Quality Cost 0 0 15,401 32,940 2,78,248 2,50,000 3,00,000 3,00,000
Improve Changeover R&D Expense 0 0 0 0 4,00,000 0 5,00,000 0
Total R&D Cost 0 1,20,000 0 1,20,000 23,12,730 60,000 6,20,000 1,20,000
Conventional Bank Loans
Long-Term Loans
0
0
0
0
0
0
0
0
0
0
20,00,000
0
0
0
0
0
18
Emergency Loan 0 65,174 0 0 0 0 0 0
Total Debt Level 0 65,174 0 0 0 20,00,000 0 0
Equity Investment 10,00,000 20,00,000 30,00,000 40,00,000 90,00,025 0 0 0
Total Assets 9,25,200 13,00,001 10,59,347 15,99,933 25,91,315 69,97,644 77,79,889 1,01,25,697
 QuaNtum Ltd.
THANK
YOU!

Email: Website: 19

quantumcare@quantum.com www.quantummicrocomputers.com