Professional Documents
Culture Documents
Submitted To:
Abdullah Al Masud
Lecturer Department of Management University of Barisal
Submitted By:
University of Barisal
Md. Raihan S.M. Asif Afroza Khanom Md. Mizanur Rahman Sampa Mondol Krisnendu Das Rejwana Arefin Roll: 350 Roll: 348 Roll: 386 Roll: 387 Roll: 391 Roll: 340 Roll: 349
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Contents
Subject
Page
03 03 04 05 07 07 09 12 13
Company Background Executive Summary Company Summary Company Objective Description of Products & Services Market Analysis Summary Strategy & Implementation Summary Management Summary Financial Plan
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1.
Executive Summary
01. Muktadir Hassan [CEO and Financial Officer] 02. S.M.Asif [Marketing Officer] 03. MD.Mizan [Operation Officer]
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2. Company Summary
Start up summary:
Total start-up expenses, including tools, software, stationery, and related expenses are shown below. Two co-owners, Muktadir Hasan and S.M Asif, will provide the bulk of the start-up financing. At the same time, the company plans to receive a 3-year commercial loan facility, which will help meet the cash flow requirements.
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Competitive Advantages:
The company competitive advantage is its unique furniture design and quality, coupled with a competitive pricing strategy, strong market demand and a strategic location close to suppliers, distributors and consumers. The close proximity of our wood suppliers also gives us better control over inventory of raw materials and reduces the risk of supply shortages.
Marketing Strategy:
Household furniture is typically sold to consumers through retail outlets. So we have to increase our retail outlet to sell our product. We also develop a catalogue featuring product lines and samples of our wood finishes. Our priced competitively and take into account production costs, competitive pricing strategies and consumers price sensibility. The company goal is to provide the highest quality furniture for the most reasonable price possible, while still maintaining healthy profit margins. The company requires an estimated 500000 in capital.
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Mission:
It is companys mission to continue to develop innovative &unique products and improve our existing products on an ongoing basis in order to maintain our competitive position market value and pricing strategy. We want every taka spent with us to be well spent.
Factors of success:
01. 02.
Uncompromising commitment to the quality of product quality wood , quality design , quality laborers , quality of end the end result:. Keeping cost in line while still enduring that we deliver minimum value to our customers.
Risk Factors:
01. Changes in consumer buying trend 02. Overly aggressive pricing policy by competitors & exporters. 03. Natural disaster affecting the supply of wood products. 04. Availability of skilled labor. 05. Problems generating visibility and product positioning.
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Future Plan:
The company plans to develop several new product lines over the next days and increase distribution by adding distributors to our retail distribution network. In response to customer demand new product lines being developed in the near future.
Production:
Furniture products are manufactured from various valuable woods. No component part, veneers or particle board are used. Products are manufactured on site using wood products purchased from local suppliers. The furniture component are manufactured in small qualities and kept in stock. As orders are received from retailers specifying a customer desired product and finish, parts are sprayed and assembled.
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Industry Analysis:
There are two main types of cabinet suppliers in the industry.
1. Resellers of complete cabinet sets using stock items where the cabinets turn up completely built. Usually have no shop facilities but do have show rooms. 2. Custom shops with full, in-house fabrication facilities. They are usually very product orientated and under-perform with customer support. Vesper furniture can provide high volume work, superior project management, and excellent quality while maintaining a low overhead.
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Although each of them delivers a quality product, we feel they fail to deliver a full turnkey package. There are four factors that govern the cost of all kitchen projects: Scope, Product, Design, and Services. Most people mistakenly think that the size of the project and the choice of brand name products will make for the best results. But it is the design and a company's services that will have the greatest impact on the quality and value of the customers investment.
Competitive Edge:
Our competitive edge is our ability to provide high volumes and flexibility in style, while maintaining a quality product backed by excellent service.
Sales Strategy:
Our sales strategy is to make ourselves known through mailings, print advertising, and personal contact to architects and contractors who are primarily involved with the design/construction of commercial development and luxury homes. Having a showroom will be a sales tool in itself. A showroom will give us exposure to the general public, new arrivals to the area, and construction professionals.
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Sales Forecast:
The following table shows projected cabinet sales. As the company gets established in the market, we anticipate strong sales growth over the next three years.
SWOT Analysis:
SWOT Analysis of Vesper Furniture:
Mission SWOT Analysis ( To formulate strategy that support the mission ) Internal Analysis Strengths External Analysis Opportunities
Weakness
Threats
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Strengths:
Increasing demand in modern, clean, minimalist designs Highly educated, skilled, young, capable & dynamic human resources Established branding, tradition Big market Enough retail outlets Standard product Enough technological advantage.
Weaknesses:
Inefficient stock control Lack of trust in external organizations Fear of sharing knowledge & taking risks Lack of effective & execution framework Decreasing demand in traditional furniture Lack of quality awareness
Opportunities:
Big potential market in Design sector & emerging new market segment in Services Lower labor costs in outsourcing Research & Development capability More efficient production method Need modernization of infrastructure Very little competition in modern furniture design
Threats:
Inter-company collaboration is unknown Rising cost of imported goods Pioneering uncertainties Clashes in Diversity Competitors like OTOBI, PARTEX, HATIL.
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Muktadir Hasan, CEO & Financial officer, has a lot of years of accounting &Administrative experience, construction management, and having his own furniture business. S.M. Asif, Marketing officer, has three years of construction experience and spent the last six years in management within the industry. As the company grows, we will take on an administration/showroom assistant.
Personnel Plan:
This table shows salaries for the whole company. Salary increases are kept to a minimum to help the growth of the company. An administrative assistant will be hired later in the year.
Year 01 Muktadir Hasan S.M.Asif Md.Mizan Carpenters Administration Assistant Total People 20,000 20,000 18,000 20,000 10,000 5
Total Payment
88,000
1,38,000
1,98,000
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Obtain an operating line of credit from a financial institution. Finance growth through retained earnings. Operate on a 25-30% gross margin.
The financial plan for Vesper furniture is outlined in the following sections:
Important Assumptions:
The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions.
Year 01 Plan Month Current interest rate Long-Term interest rate Tax Rate Other 1 10% 10% 15% 0
Break-even Analysis:
As the business settles in and start-up/showroom costs are met, average monthly operating costs will increase and then stabilize. The average per unit price is for a 24" base unit. This table shows we need to sell 16 units or 32 lineal feet of furniture a month to break even.
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Break-even Analysis
Monthly Revenue Break even 26,000
Assumptions:
Average Percent variable Cost Estimated Monthly fixed cost 65% 10,000
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Year 1 Sales (-)Direct Cost of Sales Other Gross Margin Expenses Payroll Sales and Marketing and Other Expenses Depreciation Utilities Insurance Rent Other Total Operating Expenses Total Expenses Net Profit 88,000 78,000 30,000 0 3,000 3,000 10,000 0 2,12,000 (62,000) 4,50,000 300,000 0 150,000
Year 2 10,00,000 5,00,000 0 5,00,000 1,38,000 157,000 35,000 0 4,000 4,000 20,000 0 3,58,000 1,42,000
Year 3 1,500,000 8,00,000 0 7,00,000 1,98,000 195,000 50,000 0 5,000 5,000 29,000 0 4,82,000 2,18,000
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Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Accounts Receivable Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Long-term Liabilities Total Liabilities Year 2 Year 3
50,000 40,000 15,000 1,05,000 0 0 0 1,05,000 Year 1 30,000 0 60,000 50,000 1,40,000
THE END