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National University of Modern languages Islamabad

Business Plan for the partial fulfillment of the requirements of the Entrepreneurship

Project

Management Sciences Department

Course MBA

Class MBA-III

Evening/ Morning Morning

Submitted to:
Sir. Adnan Iftikhar
Submitted by:
Sami Ud Din Khan
Aftab Ahmed
Faheem Shahab
Wajahad Ahmed
Tahir Mehmood
Lubna Noreen
Fiza Abbasi
Ayesha Gul

DATE OF SUBMISSION

25-FEBRUARY-2011
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DECLARATIONS

We declare the following:

1) That the material contained in this business Plan is the end result of our group and
that due acknowledgement has been given in the bibliography and references to
ALL sources be they printed, electronic or personal.
2) The Word Count of this Business Plan is 2800 (whole document)
3) That unless this business Plan has been confirmed as confidential, we agree to an
entire electronic copy or sections of the business Plan to being placed on T
material , if deemed appropriate, to allow future students the opportunity to see
examples of past business plans.
We understand that if displayed on T Material it would be made available for no
longer than five years and those students would be able to print off copies or
download. The authorship would remain anonymous.
4) We agree that our business Plan can be judged by the management team in order
to a plagiarism detection, where it will be checked and compared against work
submitted from this university or any other university or online business plans on
web E.g.Entrepreneur.com.
In the event of the management team detecting a high degree of similarity between
content within the service this will be reported back to my lecturer, who may decide to
undertake further investigation that may ultimately lead to disciplinary actions, should
instances of plagiarism be detected.

SIGNED:
Name Signature

Member
Member
Member
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ABSTRACT

Due to rapid changes brought by globalization and modern technology, people are seen
to forget their cultures and traditions that’s why there is always a need to have things
which cultivate in people patriotism and sense of ownership for cultural values by
showing likeness to traditional fast food products. Keeping in view, this situation this
business plan have been designed. The plan is aimed to carry on the basic framework for
starting a new business of traditional fast foods.
Paratha roll,samosa chaat and shwarma are the most famous foods in traditional food
items.
The business plan provides basic information which might be helpful for future investors
in this sector.
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ACKNOWLEDGEMENT

We owe our profound thanks and deepest gratitude to Almighty Allah, the
beneficent and merciful who blessed us with determination, courage, potential, ability and
knowledge to complete this research work. We are also thankful to our Kind parents,
loving family members and cooperative friends because their prayers affection and help
made me able to go through this task.
We are highly thankful to our Supervisor Sir ADNAN IFTIKHAR who gave us
the courage to complete this project. We are deeply thankful to him for his guidance,
help, motivation, encouragement and interest. In the end we are obliged to express our
gratitude to Management Sciences Department.

Member

Member

Member
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Table of Contents

Executive summary 7
1. Introduction and Description of Business 8
Purpose of the Document 9
PROJECT PROFILE 9
Project Brief 9
Opportunity Rationale 9
2. 2. Marketing Strategy 10
Market defining 10
Current Industry and Market Structure 10
Proposed Location 10
Projected market share (investment) 10
Positioning of Brand 11
Target customer’s 11
Pricing 11
Distribution 11
Promotion plan 12
Sales Potential 12
3. Competitive Analysis of Market 12
Identification and analyze of competition 12
4. Design and Development program 13
Goals for Product Development 13
Procedures 13
Scheduling and Costs 14
Development budget 14
Personnel 14
Assessing Risks 14
5. Operations and Management Plan 15
Organizational Structure 15
Projected Calculation of Overhead Expenses 15
Projected Capital Requirement 15
Projected cost of good sold 16
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Projected Income Statement 17

Recommendation 18
References 18
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EXECUTIVE SUMMARY

The business project is based on personal observation and real experiences. The
project has been conducted to determine the taste, demands, and wishes of peoples
likings through marketing, communications and traditional foods branding on teenagers,
and families in Pakistan.
The business project shows that students can tend to get influenced by traditional
foods. This result into a big demand for local traditional foods.
The company estimates to earn Rs.60,000 thousands in a month and near about
10,000 of its profit on monthly basis its cash flow is mostly uses in production matter’s
and return on investment is 20%.
Near about Rs... Rs.50000, has been invested so approximately 10,000 capitals is
more required to expand the business activities and for more earning this amount is
necessary due to a huge competition in traditional food items.
Our company is a new born company and is launched in response to huge
opportunities in fast food industry. We aim to provide these Paratha rolls, shwarma,
samoosa chaat and soft drinks at our stall in NUML Islamabad. The company is owned by
9 partners.
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Introduction to Business
We are starting the business with the objective to provide fresh Pratha Rolls,
samoosa chaat,Shwarma and Cold Drinks to the peoples as well as to increase the
economy through the launch of an aggressive business and for the growth and
development of fast food industry in Rawalpindi, Islamabad.
A few priority sectors were selected on the criterion of fast food industry. In depth
research was conducted and comprehensive development plans were formulated after
identification of impediments and retardants. The all-encompassing sect oral development
strategy involved recommending changes in the regulatory environment by taking into
consideration other important aspects including financial aspects, niche marketing here as
the task of our company to serve people’s on the behalf of their wishes Along with the
sect oral focus a broad spectrum of business development services is also offered to the
company.
These services include identification of customer’s demands and taste about food
material. In order to facilitate these customers, company is trying to provides good quality
Paratha rolls, shwarma, samoosa chaat and soft drinks and provide taste guidance through
its help desk with information for the development of project specific documents
(Advertisement). These documents consist of information required to make well-
researched about fast food items as mentioned before. They have Pre-feasibility studies,
and business plan developments are some of the services provided to enhance the
capacity of business to exploit viable business opportunities in a better way. This
document is in the continuation of this effort to enable potential investors to make well
informed investment decisions.
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PURPOSE OF THE DOCUMENT

The objective of the pre-feasibility study is primarily to facilitate potential
entrepreneurs in project identification for investment. The project pre-feasibility may
form the basis of an important investment decision and in order to serve this objective, the
document/study covers various aspects of project concept development, start-up, and
production, finance and business management.

PROJECT PROFILE
Project Brief
This project is related to setting up an Traditional food products stall’s to cater the
needs of the people’s especially for the students who come from distant places to the
university and those students who live in campus hostels. The proposed project will to
provide Paratha rolls, Shwarma, samosa chaat and soft drinks.

Opportunity Rationale
Most of Pakistanis likes to eat spicy food due to which demand for pratha rolls,
shwarmas, samoosa chaat is high for all seasons in the whole year. As Pakistan is a
developing country and large portion of the population cannot afford food. Another
growing market for this industries are linked to food products i.e. bakeries and restaurants
etc. With this growing demand a large number of restaurant are operating in the country.
There are approximately 13,000 restaurant operating in the Punjab, catering to the
needs of different domestic buyers. The total installed capacity of flour mills in Punjab is
approximately 864,99600-tons of wheat . The need of flour is increasing due to
population, as major buyers are domestic and international buyers. So that’s why our
company And NUML are now going to setting up a stall for the promotion and growth of
company as well as traditional fast food industry in Pakistan.
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Market Defining
Current Industry and Market Structure
Flour mills are installed with the capacity for daily production is 800 tons of flour
daily in Pakistan. Mostly flour mills are operating with the production capacity of 10,000
tons of flour in the country, while selling price is pre decided based on market situation
by the owners of flour mills, same as mentioned above flour mills of Islamabad and
Rawalpindi decide to how much should be produce according to the current market of
Rawalpindi and Islamabad that is demanded by various traditional food itms sellers.

Proposed Location
It is recommended that the proposed project be installed inside Numl Islamabad,
so accessible to students and staff of NUML who comes for the educational purpose.

PRIORITY PLACE. NUML Islamabad

Recommended place. NUML Islamabad

Projected investment
The total cost of the project is Rs. 50 thousands. This amount includes the land
rent, machinery, water and electricity connection and other requirements.Catering prices
can be varied.
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Positioning of Brand
The main purpose of this business project is based on personal observation and
real experiences to find out the requirement and taste of Traditional fast food items.
Through making marketing, communications and creating brand awareness among
different categories of people’s like and families in Rawalpindi, Islamabad Pakistan.

Target Customers
The target customers for flour mill can be divided into two categories:
• Domestic users, such as general people, because of the fact that wheat is being an
indispensable item in our daily lives.
• Second category is institutional and international buyers, who buy in bulks, such
as distribution agencies, factories, hotels, restaurants, and bakeries, etc.

Pricing
As the prices have direct effect on the success of your business. So we make our
pricing strategy as affordable as consumer can easily afford and so can satisfy about our
traditional fast food items.

1. We price our products separately, each item would having a separate price for
example: A sigle paratha roll is priced at 80 Rs,Samosa chaat is priced at 50Rs
and Shwarma is priced at 65Rs.
2. Our competitor’s always try to decrease their price’s but we have stable prices of
our products due to high quality.
3. All costs of production and services are included in our final product.

Distribution
Our Distribution includes the entire process of moving the product from the
manufacturing area to the end user. Some of the more common distribution channels
include:

• We manufacture our products in our own kitchen to satisfy our customer’s in

our own supervision for quality management.
• After manufacturing we direct sale our products at our stall in NUML.
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Promotion plan
As this is competitive era so we have many of our competitor’s who are competing us
against production and direct selling so we have following promotion strategies for the
growth and promote our business.

• Advertising. We use Pamphlets, brochures and different banners at different

locations in the university.
• Packaging. As we are fresh traditional fast food makers so we use disposable
plates and wrappers which have more intensity to keep the our products hot and
good looking , neat and clean.

Sales Potential

As we are competing in a large market so our sale potential is high because we are
providing a good quality fresh traditional fast food products to our customers. So our
sales potential is mostly near about Rs.1, 50,000 per month.

As if we make the following equation we get

Total consumer 1500-2000

Revenue per consumer 85-140
Total sales 120,000-150,000 per month

Competitive Analysis of Market

As the traditional fast food industry in Pakistan has a large competition so we would be
facing a tough competition from the local sellers as well as renowned fast food seller.

Identification and analyze of competition

As we have much competition with our competitor’s in traditional fast food
industry, so we always provide different opportunities and incentive to our consumer’s so
that they can enjoy and satisfy with our products, our competitor’s provide a few flavor’s
in traditional fast foods and we provide a lot of flavor’s in our products so that our
costumer can be satisfied with our products. As well prices of our competitor’s are high ,
but we provide discounts and different incentives to our customer’s
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The competitor’s of Our products(PARATHA ROLL,SAMOSA CHAAT

AND SWARMA).

1. GOL GHAPPY

2. CHANNA CHART

3. FRUIT CHART

Design and Development program

Goals for Product Development

Goals for product development should center on the technical as well as the
marketing aspects of the product so that you have a focused outline from which
the development team can work. As we know every type of customer need more
innovative things so we try to generate more and more good quality traditional
fast food products. so our goal is to serve people more and more to increase the
worth of our business.

Procedures

• Gather ingredients.
• Make paratha having fried beef/ grilled chicken/ boiled fish .
• Serving to the customer

.
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Scheduling and Costs

This is one of the most important elements in the development plan. Scheduling
includes all of the key work elements as well as the stages the product must pass through
before customer delivery. It should also be tied to the development budget so that
expenses can be tracked. But its main purpose is to establish time frames for completion
of all work assignments and provide, stages through which the product must pass. When
producing the schedule, provide a column for each procedural task, how long it takes,
start date and stop date. If you want to provide a number for each task, include a column
in the schedule for the task number.

Development budget

• Material. All raw materials used in the development of the product.

• Direct labor. All labor costs associated with the development of the product.
• Overhead. All overhead expenses required to operate the business during the
development phase such as , rent, electricity, gas…
• Marketing & sales. The salaries of marketing personnel required to develop pre-
promotional materials and plan the marketing campaign that should begin prior to
delivery of the product in the university.
• Professional services. Those costs associated with the services of chefs hired
from the outside renowned businesses.
• Miscellaneous Costs. Costs that are related to product development.

Assessing Risks
As this is food item business so many types of risks are involve in this category so
we highly take care of our products and maintain their quality for customer satisfaction.
Our competitor’s always in the race to win and to keep competition so if our business
have to stop at a stage so it can be harmful for business growth and development.
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Operations and Management Plan

The operations plan will highlight the logistics of the organization such as the
various responsibilities of the management team, the tasks assigned to each indivisual in
the company, expense requirements related to the operations of the business. In fact,
within the operations plan we will develop the next set of financial tables that will supply
the foundation for the "Financial Components" section

Organizational Structure
We have the following departments which perform their duties and task to maintain
business worth.

• Marketing and sales (Zahid Ali, Ayesha Gul)

• Production (Lubna Noreen and Fizza Abbasi)
• Research and development(Faheem Shahab,Aftab Ahmed and Wajahat Ahmed)
• Administration(Samiuddin khan and Tahir )

Projected Calculation of Overhead Expenses

Overhead expenses usually include the following:

• Travel
• Maintenance and repair
• Equipment leases
• Rent
• Advertising & promotion
• Supplies
• Utilities
• Packaging
• Professional services

Projected Capital Requirement

We approximately need Rs.70,000 as a capital for joint venture of our group with
the future GROUP. Through this capital we will manage our expenses which will be
incurred on different works of installing a stall at a selected location.
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Projected Cost of Goods Sold

The projected CGS for our projected business is.

Material 35,000
Labor 10,000
Overhead 5,000
Total 50,000

Financial components

Financial Statements to include

The three common statements are a cash flow statement, an income statement and a
balance sheet.

These three statements are interlinked, with changes in one necessarily altering the others,
but they measure quite different aspects of a company's financial health. It's hard to say
that one of these is more important than another. But of the three, the income statement
may be the best place to start.

As the financial statements are made for the partnership and for limited time of period
that’s why some basic principles of accounting are superseded. For example going
concern, Materiality and legal entity.
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Projected Income Statement

DESCRIPTION AMOUNT AMOUNT

Sales 60,000
- CGS
Raw material 35,000
Labor 5,000
Over head expenses 5,000 45,000
Gross profit 15,000
Admn and selling expense

Maintenance Cost 2,000

Gas Expense 2,000
Transportation expenses 1,000 5000

Net profit 10,000

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RECOMMENDATION

Due to extensive market for fast food and consumption oriented nature of our society, it
necessitates to imbibe in us our traditional values so it is also a social responsibility of
businesses to communicate the values and prestige which our cultures hold through
efficient advertisement and by delivering quality traditional products.
Key Success Factors/Practical Tips for Success

•  The location plays an important role, as the final products should be easily
accessible to customers.

•  One of the most important aspects for success of any business is minimizing
the cost of production, in case of traditional fast food this can be achieved by
proper training and by employing experienced chefs and efficient helpers.

References:

• http://ngipk.com/flour_mills_12.html
• Refreshers -Rawalpindi
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