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Business Development Plan
(Graduate Seminar- 1 credit Hour)
MBA – IV Trimester July …. , 2011
3/9/2012 Name of student MBA IV Trimester, SOB,PU 1
Business Development Plan of
FAST FOOD RESTAURANT
Address Newroad, Pokhara Basanta Khadka Roll No: 12 MBA,IV Trimester
3/9/2012 Basanta Khadka MBA IV Trimester, SOB,PU 2
SOB.Highlights of the Project • • • • Name of Company : B & B Fast Food Restaurant Name of Project : Promoter(s) : Single ( sole proprietorship) Objective of Project: utilizing opportunities of the market and provide customer value and satisfaction and earn profit.PU 3 . • Capacity : Annual • Duration of Projection: 5 years • Major products: 3/9/2012 Name of student MBA IV Trimester.
Reasonable price.PU 4 . People tends to increase their habit towards fast food due to their busy life. SOB. Availability of resources. Uniqueness / product features : Prompt service and quick delivery.Introduction Reason for selecting this project Better opportunities in the market. Fresh and hygienic food stuffs. 3/9/2012 Name of student MBA IV Trimester.
Production Plan How to produce goods / or how to offer the service or combination of both? Food production and assembly will take place in the kitchen of the restaurant. table service at the restaurant. Moderate low price offering menu Fresh.PU 5 . SOB. ready-made and delicious in test Three ways to purchase these products. and delivery to home or office. take-out from the restaurant. Prompt service will be provided to the customers to enhance their value and satisfaction and build loyalty 3/9/2012 Name of student MBA IV Trimester.
Manager. SOB. Cashier and Dishwasher HR Policy Training and development programs Compensation and benefits Rewards and incentives.PU 6 .Project Management Plan BOD Sole proprietorship/single owned Expert in this project Those who had runed the fast food restaurant Organization Chart CEO. bar boy. Health and safety issues etc 3/9/2012 Name of student MBA IV Trimester. Waiter. Head cook. Assistant cook.
SOB.SWOT Analysis Strength capable and skilled employees Prompt service and quick delivery and well-packaged product Offered clean fresh.PU 7 . delicious varieties of fast food for breakfast at reasonable price Weakness concentrated only on limited no of customer located in specific area May not able to reach to all types of customers on delivering goods Lack of practical experience on the business sector 3/9/2012 Name of student MBA IV Trimester.
. of customers. hotels in these sites. Opportunities little competition Availability of raw materials and other resources Can sell goods at reasonable price Availability of skilled and capable HR Threats Emergence of new restaurants. Popular old restaurants serving large no.
-.charity events.Marketing Plan Marketing Strategy • Focusing on the unique aspect of the product theme (healthy. tasty foods) a mix of marketing vehicles will be created to convey our presence. SOB. our image.PU 9 . magazines and student publications • Broadcast media -.local newspapers. Mahotsav etc 3/9/2012 Name of student MBA IV Trimester.local programming and special interest shows • Hotel guides-. and our message.Chamber of Commerce brochures • Misc. • Print media -.
of hotels and restaurants in this place . Market trends is in increasing due to increase in consuming habit of people towards fast food. The target market is Newroad and nearby places. prompt service and delivery. Fewer competition. Our competitive strategy will be on quality. Sales are assumes to increase 10% each year. employee motivation and sales attitude. Marketing plan The target groups are people who work in organizations and private shopping centers owners or employees and other youngsters. . although there are large no. college students and tourists. they do not provide home delivery.
equipments and goods required. clean restaurant and wash clothes . Manager: build report. Waiter: order and deliver the goods Cashier: receive cash and keep record of sales Bar boy: take order and supply the drinks Head cook: cook the food Assistant cook: help the cook in cooking and preparing the dishes Dishwasher: wash dishes. Role of Marketing Departments & Staffs Marketing department( manager) basically looks over the marketing activities on buying of raw materials. others functions of marketing department.
5.360 9.PU Sales Rs.491.552.Financial Projection • Assumption of Financial Calculations: Year 1 2 3 4 5 Capacity % 50% 60% 70% 80% 90% 100% Name of student MBA IV Trimester.307. SOB.368.780 10.100 6.940 8.614.520 7.200 12 3/9/2012 .429.
PU 13 .Financial Projection Assumption of Financial Calculations: • About Demand :• About Variable Cost :• About Fixed Cost :• About Market Scenario :• About Government Policy :• About Industry related factors :• About internal factor :- 3/9/2012 Name of student MBA IV Trimester. SOB.
50% = Rs 500.000 Fixed Assets = 800.000 – Working Capital Requirements: 200.000.000 Equity.50% = Rs 500.000 Working capital Long Term Loan Total Assets Equity Capital Total Equity & Liabilities 3/9/2012 Name of student MBA IV Trimester. SOB.000 • Initial Capital Structure Debt.PU 14 .000 – Fixed Assets Requirements: 800.Financial Projection • Initial Investment : 1.
PU . SOB.Financial Projection • Income Statement Summary 100% Year Sales VC Contribution Margin FC EBIT Interest EBT Tax Earning After Tax Dividend Retained Earnings 3/9/2012 50% 1 5307100 3955003 1352098 714900 637198 18% 90000 547198 25% 136799 410398 50% 205199 205199 60% 2 6368520 4746003 1622517 660175 962342 77420 884922 221231 663692 331846 331846 70% 3 7429940 5537004 1892937 655876 1237060 62576 1174485 293621 880863 440432 440432 80% 4 90% 5 10614200 7910005 8491360 9552780 6328004 7119005 2163356 2433775 651963 648440 1511393 1785375 45059 24390 1466333 1760985 366583 440246 1099750 1320739 549875 549875 660370 660370 15 Name of student MBA IV Trimester.
SOB.PU 16 .Financial Projection • Cash Flow Summary Year Total cash Inflow (A) Total cash outflow (B) Cash Balance (A)-(B) Add :Opening Cash balance Closing Cash Balance 1 2 3 4 5 3/9/2012 Name of student MBA IV Trimester.
579.352 2.548 250.Balance sheet Summary ( 5 years) Year ASSET Total current assets Fixed Assets Total Assets Total current liabilities Long Term Loan Total liabilities Share Capital Reserves & Surplus Total owner's equity Total Capital & Liabilities 1 604.500 1.037.329 477.283 .000 537.111 592.721 2.422.955.105 594.598 510.562 (0) 292.045 1.000 977.353 227.353 (All amount in Rs) 4 1.685 2.000 205.027.041 347.906 260.422.199 1.469.683 500.249 1.872.477 1.844 162.352 2.000 1.003 641.687.199 705.980.055 135.477.220 550.728 3 1.877 500.562 500.361.554 500.642 542.579.187.534 430.045 1.297.000 2.499 395.297.844 2 938.527.721 2.685 2.955.728 195.906 5 2.283 292.477 1.645 500.980.725 1.344 693.
701.Rs1.12 years Net Present Value (NPV) .70 times Name of student MBA IV Trimester.75 years Discounted Pay Back Period .1.Financial Projection Capital Budgeting Summary Initial Investment .Rs 549.1. SOB.Rs 1.2.000.PU 18 3/9/2012 .000 Total Present Value .405 Internal Rate of Return(IRR) .402 Non Discounted Pay Back Period .37% Profitability Index .
11.37% BEP ( first year 50% Capacity) .57.41.68% Net Profit Margin ( average for 5 yrs) .04% ROA ( average for 5 yrs) .36% 3/9/2012 Name of student MBA IV Trimester.PU 19 .53% ROI ( average for 5 yrs) .68% ROE ( average for 5 yrs) .41. SOB.Financial Projection BEP and major Financial Ratios BEP (average for 5 years) .
. SOB.Financial Projection Sensitivity Analysis ( 3 scenarios) Other variable remaining the same but. 3/9/2012 Name of student MBA IV Trimester. then BEP = increase for five years. BEP = decreases for 5 years by increase in cost If Sales price decrease by 5% & Cost increase by 5%. BEP = decreases for 5 years If cost increase by 10%. If Sales price decrease by 10%.PU 20 .
NPV of the project is positive which means wealth maximization. 3/9/2012 Name of student MBA IV Trimester. Investment will be recover in nearly 2 years. SOB. I would like to recommend that : There is a suitable situation to conduct or operate the business because IRR( 37%) is greater than cost of capital( 18%).Recommendation Considering the above analysis and projection based on above assumptions.PU 21 .
PU 22 .Any Questions??? 3/9/2012 Name of student MBA IV Trimester. SOB.
Thank You 3/9/2012 Name of student MBA IV Trimester. SOB.PU 23 .