Introduction to Business

Business Project

Submitted by

Rehan Sheikh (R1FUADBA005)

Asad Nazeer (R1FUADBA038)
Shoaib Hassan (R1FUADBA022)
Haseeb Ahmed (R1FUADBA042)
Daniyal Akhtab (R1FUADBA024)

Submitted to
Sir Shehzad

Date
March 07, 2023
BAKHTAWAR FLOUR & GENERAL MILLS

Introduction
We purchased an already-running firm worth 150 million in 2018 and now in 2023, the current
position of the firm is 300 million because of an increase in the market price of land.
Location

it is located in the industrial area of Bahtar road Wah Cantt, Taxila

Area
The cover area of the firm is 17 Kanal.

Production

We produce flour, maida, fine, suji, bran, and kundi which are the basic necessity of human life.
 Mission
“Being brand and customer-oriented, producing and supplying best quality flour to
customers”.

Vision
“To give the best quality product at less cost and to have eagle eyes on competitors”

Goals
 Focus on our strength
 Focus on market
 To provide quality & quantity
 Never underestimate competitors
 Proactive approach
 Make our investors’ money profitable
 Consider the decisions of our investors
 Aiming to be a brand in the market
 Factors of production
Land
Our firm is situated in a suitable industrial and commercial area. The cover area of the firm
is 17 Kanal and the facility area is comprised of 5 Kanal, extra area is for the warehouse, office,
and living area for staff and labor.
Labor
The total labor comprises 33 employees i.e. 8 laborers, 10 plant operators, 3 clerks, 1
accountant, 1 for loading/unloading, and 1 supervisor, under whom there are 10 workers
which help him to supervise and run daily operational working of the mill.
One washer man who washes the wheat and one fitter man for fixing any technical issues
regarding plant and machinery and the last 1 electrician.

Capital
To produce the mentioned products, we need to have a running capital of amount Rs 1.5
million on a daily record and total capital of 39 million for 26 working days per month.

Management

Internal management

 There is one ‘Purchase manager’ whose job is to buy wheat and do market surveys.
 The other one is the ‘Sale manager’ whose job is to manage all the sales at a
reasonable market rate.
 Next is the ‘Cash manager’ who manages and arranges cash for the daily purchases
of wheat
 The job of a ‘bank manager’ is to manage all the bank dealings and to prepare the
budget for daily quota and food challan
 ‘Account manager’ maintains the daily record of selling and purchasing

External management

1. Competitors
Keeping a good check and balance of competitor’s activities regarding production and
distribution and marketing
 2. Customers
To make a large number of customers through our brand awareness. 70% of the
customer is provided by the government due to which the problem of sale doesn’t occur.

3. Opportunities for investors

Create opportunities and easiness for our investors so they don’t hesitate to invest in our
business
4. Marketing
Make good planning and strategies for branding and marketing our business to gain
customers

Financial statement
A Financial statement is prepared on daily basis in our firm. The government provides
wheat for 8 months and we purchase wheat privately for 4 months a year. The Government
provides wheat on daily basis for 1.1 million to the firm.

Financial statement schedules per day

Rs.
Purchase wheat per 100kg (200*5750) 1150000
+Transportation expenses 15000
+labor unloading 8000
+electricity expense 95000
+wages 45000
+machinery expense 15000
+packing expense 14000
+other expense 83000
Total 1425000
Production: 700 packs
- sale flour (906500)
-Sale bran (153000)
-Sale maida, suji, fine (425000)
Net profit 59500
For month
59500*26 =1547000
For year
1547000*12 = 18564000

Barriers to trade
 Location barrier
It is not suitable to start this business in a residential area due to the pollution produced
by plants& machinery which could be harmful to the general public.
 A Large number of mills
Due to the excessive number of mills in the market, the government restricts the
plantation of any new production facility.

 Government restrictions
Due to the incompetency and lack of management from government personnel, the
government is unable to deal with the quota(wheat) with the mill owners. New
government officers are unable to handle the management of wheat supply; hence general
public faces a shortage of flour in the market.

Reducing the barriers

 Location decision
Government should allow the location of the mill in an industrial area away from the
residential area.

 Reduction of new mills

The government doesn’t allow any new mill, rather they charge a large amount of bribe
to allow permission to start any new mill.

 Government Strategy
Government should plan such policies and planning strategies to increase the quota so
that there is no reduction in the supply of wheat and that the general public gets the flour
easily from the market.

Globalization
 Due to the shortage of wheat supply and huge consumption of flour within our country, it
is difficult for us to run our business on the international level because we are a
developing country and we import a huge amount of wheat from other countries.

Marketing planning & strategies

 To provide the best quality product to the customers
 Credit sales to customers to gain their trust and value
 Giving low rates than our competitors to gain customer loyalty
 Keeping a good check and balance of our competitor’s activities
 Inventory control
 Giving ‘brand awareness to the general public
 Considering the taste and consumption of the customer
 Advertising our business through banners, pamphlets, and media

Ethics of Business
While doing this business we keep some values in our mind that we follow as our code of
conduct and we follow these values and we act according to our convictions rather than what is
profitable for us.
 We make sure that we don’t put an excessive workload on our workforce
 We share an equal and authentic amount of profit with our investors
 We mustn’t delay the salary/wages of our employees

Code of Conduct
It is a collection of rules and principles intended to assist employees and directors in
making decisions about their conduct to the business of firms
Our firm can adopt the following values: -
 Produce quality-product to fulfill needs
 Proper work schedule for the workforce
 Proper training of the workforce regarding the work
 Customer’s preferences over personal interest
 Incentives and increments for the workforce

Social Responsibility
Social responsibility means the practical application of ethical concerns for the benefit of
society as a whole.
As a mill owner, we’ve set some limits for our business operations which keeps
preventing our business to harm the community around us. Proper training and guidance
should be given to the workforce. We keep in mind that vehicles we use for transport do
enter a community in daylight.
Donations should be made on regular basis to deserving people in our community. We
should locate our mill a little further from the residential area so people may not
experience disturbance in their life.

SWOT Analysis
Before deciding to invest in the flour mill, one should carefully analyze the associated
risk factors. A SWOT analysis can help in analyzing these factors, which play an
important role in making the decision.

Strength
1. Flour is an easily saleable good and it’s a basic necessity of everyday life.
2. It is a one-time investment
3. Profit is high
4. Fewer chances of loss

Weakness
1. Credit sale
2. Perishable goods
3. Huge amount of investment
4. License cancellation by the government
Opportunities
1. Changes in the current eating habits of the people.
2. About 10% of the flour market share comprises un-branded flour, this share can
be gained through a heavy marketing campaign.
3. Export opportunity
4. A large number of people that are not brand loyal can be targeted through
marketing campaigns

Threats
1. Quota restriction on minor mismanagement
2. High competition
3. Fluctuation in the prices of wheat
 Production process

First of all, the wheat is unloaded from trucks and stored in the warehouse then the wheat is
processed to the 4th floor of the production facility through an elevator.
Cleaning and storing
As wheat arrives in the mill, it is passed through a cleaning process to remove coarse impurities
and it is then stored according to its quality.
This is mainly determined by the hardness, protein, content, and gluten quality of wheat.
Washing and storing
Washing begins with screening to remove its coarse, fine materials, and the grain is separated by
size, shape, and weight. The finished product is then passed into conditioning bins and it is
stored again after washing for 15 to 16 hours in the warehouse to get dry.
It is called ‘roll body’ in which wheat is passed through the pipelines and this machine is used to
crush the wheat and the crushed wheat is lifted through other pipes through air pressure.
This motor produces air pressure at 75 horsepower and it is associated with another small motor
at 30 horsepower. This motor has the pressure to pass 4000 kg of wheat from the first floor to 4 th
floor
It is called an ‘airlock system’ in which crushed wheat is passed through the pipeline according
to the weight & quality of the wheat. This machine process the separation of fine, bran, maida,
and suji.
These machines are called ‘plan shifters’. One shifter is made up of 12 sections. Flour, suji, and
maida are passed through the pipeline to their respective machines. These machines move,
polish, and make small balls of flour, suji maida.
Through these pipelines, the flour, maida, fine, and suji are packed separately into their packets
very fastly. After that, the pack is weighed by the weighting machine and the final product is
ready.