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454063451 MGT 368 Business Report Section 19 Green Berets pdf
Entrepreneurship (MGT 368)
North South University
Preview text
A group report on the Business Plan of
“Circle Furniture”
Course Code: MGT 368
Section: 19
Group Name: The Green Berets
Submitted to:
Md. Asif Hossain (MAO)
Lecturer
Department of Management
North South University
Submitted by:
Name ID
Rubaiyat Mujib Haider 1510461030
Nafisa Tabasum 1510155030
Amreen Khanam Ahmad 1610017030
Nazia Elham Chowdhury 1531057630
Sadat Salman Ahmed Arnob 1510092030
Submission Date: December 26, 2018
Acknowledgement
In this conventional world of contention, it is strenuous to devise a business plan in the absence of collaboration and reinforcement of other people. This plan is no deviation than the fact mentioned above. We have given our efforts to this business plan. Nevertheless, it would not have been achievable without the kind support and assistance of numerous people.
First of all, we would like to thank the Almighty to let us and help us all the way to prepare this business plan in a solvent way.
Then we want to thank our honorable faculty and our course instructor Md. Asif Hossain, Department of Management, School of Business, North South University for allowing us to observe and analyze such an interesting topic on starting a new venture and devising a business plan on our own and believing in us that we would be able to devise a practical business plan in such a short period of time
Lastly, we are thankful to each member of our group. Everyone’s cooperation, collaboration and contribution to this report is highly admired.
Page No
Table of Contents
Contents Page Number
1. Introduction
Name & Addresses of the Business Names & Addresses of the Principals Nature of Business Statement of the Finance Statement of Confidentiality
1-
Business Model
Canvas
9 building Block Analysis of the Business Model Canvas
3
2. Executive
Summary
null4
3. Industry
Analysis
Future Outlook & Trends SWOT Analysis PESTEL Analysis Porter’s Five Forces Stakeholders Analysis Industry & Market Forecasts
11- 20
4. Description of
the Venture
Mission & Vision Products Size of the Business Office Equipment Background Profile Of the Entrepreneurs
21- 29
1. Introduction
Bangladesh, at this moment is in the brutal grab of pollution. Slowly and gradually we are going for a world that would be full of toxins in its environmental elements i. soil, air, water etc. Paper is playing a crucial role in terms soil pollution, because in Bangladesh, wasted paper are directly dumped into landfills. Paper wastage is continuously leaving strain on the Earth. Mass deforestation is destroying animal habitats and allowing for consequential attrition in places that depend on tree roots for the purpose of support. Simultaneously, due to paper manufacturing every time there is release of greenhouse gases into the atmosphere. Every single thing consumes energy to produce. In terms of paper production, it voraciously involves deforestation. Hence, we come up with a solution to this problem by making furniture with recycled paper trash. A. Name & Address of the Business: Name: Circle Furniture Bangladesh Ltd. Office Address- Dhaka-Aricha Highway, Savar City Centre, Savar Union, Dhaka-1340. Showroom Address: 5/A Dhanmondi, Bangladesh Medical Road, Dhaka- Website- circlefurniturebd Facebook- facebook/circlefurniturebd Instagram- instagram>circlefurniturebd B. Name(s) & Address(es) of Principal(s):
Name(s) Address(es)
- Rubaiyat Mujib Haider 49, North Dhanmondi, Kalabagan, Dhaka-
- Amreen Khanam Ahmad Atlanata Bhaban , Plot 3, Jashimuddin Road, Uttara, Dhaka-
- Nazia Elham Chowdhury 111/6, Commerce College Road, Mirpur, Dhaka-
- Nafisa Tabassum Plot 17, Block-F, Kuril-NSU Road, Dhka-
- Sadat Salman Ahmed Plot 19, Block-C, Banani Graveyard, Banani-
C. Nature of the Business The Name of our business is Circle Furniture (CF). The business is a partnership business comprised of 5 partners. Our main purpose of the business is recycling tons of paper wasted everyday & save the environment from the diabolical blow pollution thus making the world a better place. The bi-product of this thinking is our ‘Circle furniture’ , which starts with recycling and completes the circles by reusing the trash & piles of scavenged paper into durable, eco-friendly & cost-friendly furniture.
D. Statement of the Financing needed: For the financing of our business, we will be needing 33,00,000 BDT. As for the financial operation of our business, we have considered both our personal savings & bank loan. Each 5 of our member is contributing 5,50,000 Taka. And an amount of loan from Sonali Bank of 27,57,000 tk. Against an apartment as a collateral from one of our business partner, Mr. Rubaiyat Mujib Haider.
E. Statement of the Confidentiality of the report: The reader of Circle Furniture’s business plan should acknowledge that the information, data, graphs assimilated in this report are strictly confidential & implying that the reader cannot disclose anything embodied in the business plan without the written consent of the owners or the intellectual attorney. Point to be noted that, any breach in the confidentiality will lead to the violation of ‘article 56’ of the constitution of Bangladesh & will ultimately result lawsuit & ransom compensation claim.
Executive Summary:
We have made the following report on the business plan of our venture “Circle Furniture”. The nature of our business is based on social entrepreneurship as we are “recycling” trash paper to paper-made furniture. Our main purpose of the business is recycling tons of paper wasted everyday & save the environment from the diabolical blow pollution thus making the world a better place. The bi-product of this thinking is our ‘Circle furniture’, which starts with recycling and completes the circles by reusing the trash & piles of scavenged paper into durable, eco-friendly & cost-friendly furniture and eventually fulfilling our motto of “Reclaiming the Nature”. It is a partnership business comprised of 5 partners.
For the market research, we have conducted questionnaire based research on 3 different segments of people. And upon getting the affirmative responses from the sample, we have orchestrated the following business plan.
After carrying out the industry analysis, we have found out our potential competitors in the market are Otobi Furniture, Hatil Furniture, RFL Plastic Furniture and traditional wood- made furniture. Our greatest strength is that the cost of production is low and that we have indirect competitors. Our greatest weakness is customer perception which we look forward to overcome.
Our product range will include a variety of products which will include closets, lamp- shade, table, chair, cupboard, wardrobe and it will be available for both ready made and extensive customization for our customers.
As for the management of operations, quality control is our top priority. Raw materials are inspected before driving them to manufacturing process. Finished products are also inspected to test their firmness and conform to specifications. Moving on with the utilization of the technologies; the implication of the technologies mainly emphasize on finance and accounting, order taking & tracking, database management, communication, production of statistics, training employees and internet marketing. Furthermore, in our marketing plan, we have included the consumer analysis with extensive focus on STP analysis. Moving on with the product description, we have devised
the pricing strategy which includes both value based and price-bundling strategy, with our direct distribution channel, we will be delivering products and serving our customers. As for the promotions and advertisement, we have made certain campaigns which are: Circle Furniture’s December Campaign mainly focusing on weddings and targeting newly married couples, Eid campaign for all our customer segments and World Recycle Day week for raising awareness and encouraging recycling.
While assessing the risks, insufficient market analysis, too much dependence on foreign machinery suppliers and only one person from the marketing background is a major drawback for the business. In order to secure other sections of our business, we will implement ISO standards to have a benchmark on how our business will carry on.
For the financing, since we are going to start a new business in the market, we will use both internal and external sources of financing. For internal sources, each of us (five entrepreneurs) will give a financial contribution of Tk. 5,51,400 and for external funding we will take mortgage loan from the bank of Tk. 27,57,000 .We will take the mortgage loan from the bank by keeping our partner Mr. Rubaiyat Mujib Haider’s apartment as collateral but the risk for the loan will be shared by five of us according to our partnership agreement. And of this huge loan we hope to get 100,0000 tk. from the investors.
The last part of our report includes the appendix which consists of market research data, Leases or contracts, Price list from the suppliers etc.
c. Key Partners:
Being aligned with our Cause and as a fraction of entrepreneurs are alumni of North
South University, the Board of Trusties of North South University has voluntarily
agreed to become our partner.
Following the step of North South University, Independent University has also
agreed to be our partners prior to conditions.
Scavenger’s shop across Dhaka especially from Dhanmondi & Savar are our key
suppliers.
Jamil Transportation Services is also a key partner for us for product delivery.
JMT Plastic Moulding of China is our key suppliers for the importing of moulds to
make the furniture .
PVA Glue supplier Inc. of China is our glue supplier for the manufacturing Purpose.
d. Distribution Channel:
We will be following a direct distribution channel. By that our product will be available in our website & people can even buy them from our social media pages- Facebook, Instagram etc. All the products will be available in our respective mediums. Although the process of ordering will vary through mediums.
e. Key Activities:
Our key activities include the following points- Designing the modular paper-made furniture. This includes several process through analysis of demands then overall viability check to actually designing, market testing and ultimately selling the product. Selling the furniture through our store and social media handles. Promoting and advertising our products from time to time. Raise awareness in terms of recycling and against paper wastage through various campaigns and advertisements. Having uninterrupted contact from our key suppliers , so that they feel that being apart has not made them outsiders as we all know that dealing with the Chinese has certain perks.
f. Customer Relationships:
Our customers will be our priority. And their suggestions and demands will be the key features of our customers. For this we have availed- Customization: Through this the customers will be able to design their products as per their will. This will give them a feel that we are personally assisting them to have the product in their own way. This option is not very much available in our competitors that’s the reason this will help us to collaborate with our customers in a more effective way like never before in Bangladesh. Customers are even free to change the shape, colour and over all feature their products. Customer Feedback: In this option, the feedbacks of the customers will be taken very seriously. Nay defective product will be replaced prior to any condition and thus it will help to build an emotional attachment to our customers. Customer’s Switching Cost: Because of the customization of the product and prompt customer service, we think it will be difficult for our customers even if we charge premium price. Obviously we will be charging premium price for premium products and eventually it will strengthen our bond with our customers.
g. Key Resources:
Circle Furniture’s Key Resources are mentioned in a chronological order- Circle Furniture’s major key resources are the human resources. Because we are
bringing a completely new product and for that we will be providing exclusive
training from outsourced trainers. And that makes our human resources irreplaceable which can be measure with monetary values. Our plot in Savar where will be our manufacturing plant is also a valuable resource to be mentioned. The exclusive machineries imported from China are also categorically our valuable resource.
h. Revenue Streams:
We will be generating our revenues from the sales of our customers. An indirect source of revenue will be the delivery fees and customization will also contribute to generate amount in an exclusive manner since customers will be charged extra for it.
Direct and Indirect Compensations for the Personnel:
Employee Categories Approximate Salary in BDT
Chief Executive Officer 15 tk.
Director of Human Resources 12,000 tk.
Director of Finance 12,000 tk.
Head of Marketing 12,0000 tk.
Chief Operating Officer 12,000 tk.
Chief Accountant 10,000 tk.
Carpenters 8,000 tk.
Paper Grinders 5,000 tk.
Machine Operators 6,000 tk.
3. Industry Analysis
A. Future Outlook & Trends
Recycling is the dire need of humankind at this moment. The vast usage of non-renewable treasures of the environment the earth is losing its comeliness in a moving manner. A survey conducted in 2014 reveals that, Of 200,0000 million hector of area of Bangladesh, only less than one-third is covered with forest area. Which is a grave concern & should be a grave concern for the citizens of Bangladesh. Some satellite surveys have even found out that Bangladesh have even 0 hector of land per head, which denotes one of the lowest in South-Asia & all over the world. And its dire implications are now seemingly irreversible at this moment. Species are going extinct, trees are disappearing in a tremendous manner, the land is polluted with wastes, and air is being intoxicated every second. And now people want to overcome thus problem. But they do not know what initiatives they should take. Our business comes up with the solution to this problem with collective maneuvering of this voluntary & involuntary problem created by our people. People are being desperate to recycle their unused products. Since our distinctive competency is our uniqueness. Our business attempt in this context of paper-made furniture is the first one in the country. Thus as a first-mover we will have less competition, secured distribution channel, higher lead time & our product will be difficult to replicate. In this modern world where deforestation is constantly taking place & moreover wooden furniture is a bigger cause. People are more inclined to wooden furniture because they are more concerned about the durability of the furniture. But the matter to regret is, they are not concerned about the environmental side- effects of using it. Forests are decreasing like never before & we are not even bothering. So, in this matter, those who are like minded like has, have a shared mission, vision & goals will be attracted to our business. In the context of Bangladesh, paper-made furniture is a new initiative which is broadly focused on preservation of nature. And this can be a revolutionary option for green warriors to show solidarity with us & help us to recycle unused scavenged paper.
2. Weakness:
Customer perception- It will take time to change some customer’s perception on paper furniture.( is it strong? Is it durable?)
Lack of human expertise- New skills required since the production of paper furniture is in the country for the first time.
3. Opportunities:
First mover in the country- We will avail the lead period to build our business to one of the top most furniture companies before the entrance of direct competitors(other paper furniture companies)
Low product cost- The cost of product is less than that of wood for the same furniture. This will lead to increase in demand.
Innovative – It is easier to design the model of furniture with paper than it is with wood. We are thinking that if our business get well established, we can open another chain where customers can ‘re-design’ their paper furniture. This extends the recyclability of paper.
4. Threats:
New company may enter – There can be a chance of an entrant of another paper furniture company. This will create competition and we need to develop more competitive strategies.
Political unrest – Conflicts in the country may delay paper work and time at administration and transportation. Safety is uncertain if government does not provide high security at road transport channels for movement of goods and people(this includes employees , raw materials and product.
C. PESTEL ANALYSIS:
1. Political Environment
Since, an election is prevailing in the country, political instability is a matter of distress for us at this moment. Although, the ministry of forest & environment concerned are very much encouraging in any business which is proposed for recycling but bureaucracy in the ministry office is leading cause of distress for the entrepreneurs. We are already considering to face political docket in the beginning of our start-up. And as already mentioned, due to election if there is any change in government, that even implies change in the governmental policies.
2. Economic Environment
A tenure of 10 years of same governance has provided Bangladesh an stable economic environment. In the year 2018, Bangladesh has seen a rise in 7 % of GDP and also is 31 st in the world in the matter of purchasing power parity (PPP). Steadiness in government has also caused a steady interest rate which is 7%. Thus, investing or starting a business venture in Bangladesh is more suitable like never before. The government of Bangladesh
454063451 MGT 368 Business Report Section 19 Green Berets pdf
Course: Entrepreneurship (MGT 368)
University: North South University
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