Final Project: MGT-403 Entrepreneurship

Abstract:

This report is based on our business project of entrepreneurship which we have conducted in the

month of May from 18th to 21st within the campus. The major items of our project were ceramic

items, photography and frames with COMSATS logo. With the blessings of Allah Almighty,

our project was a successful one and we have mentioned all the project related descriptions in this

report.

(i)
Final Project: MGT-403 Entrepreneurship

Acknowledgement

All praises for ALLAH Almighty, the real worthy of all praises who guides in darkness and helps

in difficulties. This report would have never been possible if we didn’t have the Invisible hand of

ALLAH Almighty on our back and sweet sight of blessing by The Holy Prophet MUHAMMAD

(Peace & Blessing of Allah Almighty be upon Him).

After this, we would like to thank for the moral and didactic support of our teacher Mr. Syed

Sikander Wali and other faculty members of COMSATS, who were always there for the critical

analysis of our work. In the end, we would like to acknowledge our friends and fellows who were

always with us in all the related matters.

(ii)

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Final Project: MGT-403 Entrepreneurship

Preface
This report is based on our business project which we have conducted in the month of May. Also,

another objective of this research is to give suggestions and recommendations on the basis of

concluded results.

(iii)

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Final Project: MGT-403 Entrepreneurship

Table of Contents

Topics Page #

1. Executive Summary………………………………………………….....……..(v)

2. Introduction…………………………………………..…………………..……01

3. Description of Business………………………………………..…………........03

i. The Marketing Plan……………………………………………………....04

ii. The Financial Plan ……………………………………...………..………05

iii. The Organization Plan……………………………………..……………..08

iv. The Production Plan……………………………………………………...09

v. Risk Assessment……………………………………………………….…09

2. Summary…………………………………………….………………………....09

3. Appendix (exhibit)…………………………………………….…………….....10

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Final Project: MGT-403 Entrepreneurship

1. Executive Summary

The study examines the importance of the entrepreneurship in the organization of any kind of

business. A detailed examination and analysis of Strengths, Weaknesses, Opportunities and

Threats of our business has been carried out.

The project objectives was achieved by creating an awareness of the product through an intense

promotional campaign at start-up and by providing customers with a surprising clues in their

minds that we are coming with something new and innovative, with some creative products.

Vision for our business was clear-cut, realistic and pragmatic in the tradition and spirit.

Finally, the report deals with the complete summary of what we actually done as a project for

entrepreneurship and how we conducted the whole venture.

(V)

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 Final Project: MGT-403 Entrepreneurship

2. Introduction
This report is based on our business project of entrepreneurship which we have conducted from
May 18th to 21st, 2010 within the campus. The major items of our project were ceramic items,
photography and frames with COMSATS logo.

i. Project Objectives

Following are the major objectives of our project:

 To learn and practically apply the entrepreneurial activities

 To form an activity that fully reflects the entrepreneurial state of mind
 To achieve the break-even i.e. no profit no loss situation
 To bring creativity and innovation in our products in order to invite our customers towards
something new and innovative.

ii. Phases of Entrepreneurial Process

As we carried out an Entrepreneurial activity, therefore we followed all the steps in the
entrepreneurial process and worked in a systematic way. Following are the phases in the
entrepreneurial process, we worked for:

1. Identification and evaluation of the opportunity

2. Development of the business plan
3. Determination of the required resources
4. Management of the resulting enterprise

1. Identification and evaluation of the opportunity

In our project, we analyzed as well as evaluated the opportunities for our business venture:

 Creation and length of opportunity

 Real and perceived value of opportunity
 Risk and returns of opportunity
 Competitive situation

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Final Project: MGT-403 Entrepreneurship

2. Development of the business plan

A good business plan must be developed in order to exploit the defined opportunity. We also
placed our venture on a business plan. Basic issues involved in development of our business plan
are given here.

 Title page
 Table of contents
 Executive summary
 Description of business
 The Marketing plan
 The Financial plan
 The Organization plan
 The Production plan
 Risk assessment
 Summary
 Appendices (exhibit)

3. Determination of the required resources

We determined and analyzed our resources, keeping in minds the following points:
 Appraisal of existing resources
 We didn’t underestimate amount and variety of resources needed
 Strive to maintain as large an ownership position as possible

4. Management of the resulting enterprise

The management style and supervision of a business determines the key variables for the success
of any venture. Identification of problems, especially the potential problems occurs during the
business activities are to be managed in a well manner. Implementation of control systems over the
production and operations of the business is also very important for the management purposes.

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 Final Project: MGT-403 Entrepreneurship

3. Description Of Business
The description of our products, their manufacturing as well management procedure is described
below:
i. Ceramic decorated items

Art is a way of expressing your internal feelings in a planned way. It also shows creativity and
innovations in your minds. We selected ceramic decoration items because of having previous
experience in it.

The procedure of making these items includes the following points:

 Selection of ceramic items which can be made in short time frame

 Selection of mugs and glasses because it looks delegate and decent.
 Next comes the purchasing of raw material, search for the low cost material available in
markets.
 Ceramic Dow is made afterwards, which is a difficult procedure because it needs proper
measurement and mixing of ingredients.
 Selection of a proper suitable place for work
 After comes the mixing of colors in ceramic Dow
 Making different flowers like Rose, Lily, Sunflower, Seasonal flowers, Tulips etc
 Arrangement of flowers according to the colors of mugs and glasses. Proper color plan is
essential.
 All that glittering is made accordingly
 When arrangements become dry then the final touches are made, these include spray work
for shine, protection against dust and water
 Packing is made for the final delivery

ii. Frames with COMSATS logo

At first we searched for the market about our idea of frames with COMSATS logo which was
really appreciated by many students.

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Final Project: MGT-403 Entrepreneurship

iii. Photographs

Students were given a chance to save their precious memories in the form of snaps with their
friends and fellows. For this purpose, we also had an option of photographs and we gave
developed pictures to our customers within a day.

iv. Problems faced during Business

We have done our project successfully, with a good four day experience. We do not face so many
problems while conducting our stall but some are there. Director with his crew visited our stall first
day and appreciated us especially our ceramic work, which we make by ourselves.

Majority of the students give us very positive response but senior students do not pay much
attention, discourage us and think that they are some super creatures as we are juniors. But other
than these seniors, students are very co-operative.

We write the names of students and class at the spot on shields with Comsat logo. We use lead for
this writing purpose. Some students keenly observe the handwriting and force to write in a
customized manner which they wanted.

Some students say that they do not want to keep Comsat logo with them.

We have to give a 4-5 minute presentation to the students so that they buy our product, after this
presentation if they don’t buy; this requires a great stamina and patience.

Initially we have to launch the stalls for five days but third day our teacher give us deadline to end
our project in fourth day. This announcement pressurizes us and we started selling products at our
cost thinking that if we neither get profit nor we get loss because initially we make our strategy to
sell within five days. But thanks God at the end we get a good profit.

Basic issues involved in development of our business plan are given below:

i. The Marketing Plan

In order to collect the information regarding our new business venture, we go through the
following steps in the Marketing Research Process:
1. Identifying the informational need
We collected all the needed information regarding our products and analyzed the market.

2. Searching for secondary data

No one has conducted the research on this topic within the campus, as we are establishing
our new venture with some new and creative idea.
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Final Project: MGT-403 Entrepreneurship

3. Collecting primary data

Regarding our “frames” and “ceramic items”, we discussed it with a number of students
within the campus. Most of them appreciated our unique idea.

4. Interpreting the data

After getting all the necessary information from the people, we all concluded to implement
these ideas by starting the production process.

ii. The Financial Plan

In order to start the new venture, everyone needs sufficient funds to drive the business operations.
The financial plan of our business is represented below:

Sources of funds

We are three group members, so we all equally contributed for the investment purposes i.e. Rs.
3,000/- per head so the total investment goes to Rs. 9,000/- as shown below:

Khurram …………………………….…....Rs. 3,000/-

Fakhar ………………………………..…..Rs. 3,000/-

Asim ………………….………………….Rs. 3,000/-

Total investment…….……………….……. Rs. 9,000/-

Manufacturing budget

The finances utilized in the manufacturing and production process are given below:

 Purchases = Rs. 956/-*

 Outsourced items cost = Rs. 5,300/-
 Other expenses = Rs. 350/-

*the details of purchased items are given on hand-written documents

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Final Project: MGT-403 Entrepreneurship

Operating budget

Expense May 18 May 19 May 20 May 21

Rent Rs. 75 Rs. 75 Rs. 75 Rs. 75

Advertising 15 15 -0- -0-
Battery -0- -0- 30 30
Total operating expenses Rs. 90 Rs. 90 Rs.105 Rs. 105

Sales Predictions for 6-days

Before starting the project, we estimated our sales as well as possible expenses for the six-days i.e.
from May 18 to 23, 2010. Our sales and expense predictions are represented in the following table:

Sales (for 6-days) Rs. 13,000

Less: CGS (7,000)
Gross profit 6,000
Less: operating expenses (800)
Net income* 5,2 00

Net profit margin (%) 40.00%

Actual sales for 4-days

We actually estimated our sales for six days but our stalls remain in progress for four days due to
which our actual sales deceased from Rs. 13,000/- to Rs. 12,000/- (for four days). The actual sales
for four days are separately shown below:

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Final Project: MGT-403 Entrepreneurship

Art Mania
Income Statement
For the first four days, from May 18 to May 21, 2010 (Rs.)

Period May 18 May 19 May 20 May 21

Sales 3,030 2,000 2,680 3,580

Less: CGS 1,295 878 1,592 2,354
Gross profit 1,735 1,122 1,592 1,226

Gross profit 57.26 56.10 40.60 34.25

margin (%)

Now a combined income statement for the sales during the four days is represented below:
Art Mania
INCOME STATEMENT
For the period ended, from May 18 to May 21, 2010 (Rs.)

Sales Rs. 11,290

Less: CGS 6,119
Gross profit 5,171
Less: operating expenses* 2,071
Net income 3,100

Net profit margin (%) 27.46%

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 Final Project: MGT-403 Entrepreneurship

* The cost of destroyed inventory is also included in the operating expenses, after subtracting all
the costs of destroyed inventory+ bad debts; we get a total profit of Rs. 3,100 (Rs. 775/- per head
for three group members)

iii. The Organization Plan

Our group worked as three partners, so we divided all the organizational activities among us on the
basis of following pattern:

 Muhammad Asim Mueed Marketing Manager

 Khurram Riaz Manager Administration
 Khurram Riaz Finance Manager
 Syed Fakhar Jahan Production Manager

“The Organizational Design”

President

Marketing/Sales Production Administration Finance

Partnership Business Formation

We were three group members. In order to organize this business activity we formulated a
“partnership agreement” and invested on equal basis.
 We all were liable for our business liabilities and the amount of capital contributed.
 Partnership agreement was signed among us before starting the venture.
 All the partners have equal control over the management and majority rules of the venture.
 Profit/ loss would be distributed among the partners on the equal basis.
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 Final Project: MGT-403 Entrepreneurship

 The attractiveness for raising the capital would be depending upon the capability of partners
and the success of business venture.

iv. The Production Plan

Products - Our products included the following items:

 Ceramics decorated mugs and glasses

 Wooden frames with COMSATS logos
 Photographs + developed
In order to deal with the production operations of our products, we proceeded following:

 We made and decorated mugs and glass by ourselves

 Frames and logos were made from Rawalpindi
 Photographs were taken here and developed on the next day.

v. Risk Assessment
Risk taking – whether financial, social, or psychological – is part of the entrepreneurial process.
We also had to analyze the risk in our new venture. Following are the risky points in our minds, we
had to consider:

 Non-execution of project due to rainy season

 Low sales of our items
 Damage or breakage of glass items
 Products may not be liked by the customers
 Bad debts

4. Summary
The project objectives was achieved by creating an awareness of the product through an intense
promotional campaign at start-up and by providing customers with a surprising clues in their

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 Final Project: MGT-403 Entrepreneurship

minds that we are coming with something new and innovative, with some creative products.
Vision for our business was clear-cut, realistic and pragmatic in the tradition and spirit.

5. Appendix (Exhibit)

 Entrepreneurship - a process whereby an individual or group of individuals use organized

efforts to pursue opportunities, to create value and grow by fulfilling wants and needs through
innovation and uniqueness, regardless of personal resource situation.
 Common Themes in Entrepreneurship Definition – it includes the role of the entrepreneur,
innovation, organization creation, creating value, profit or not-for-profit, growth, uniqueness
and process etc.
 Entrepreneur – an individual who takes risks and starts something new. It also includes salaried
managers of larger corporations who have a flair for innovation and risk.
 Business - any activity or a group of activities to be undertaken for the purpose of earning
profit keeping in view the risk of loss.

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