Entrepreneur – Whole Seller IQRA University – Gulshan

Campus

Entrepreneur
Wholesaler

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Entrepreneur – Whole Seller IQRA University – Gulshan
Campus
IQRA University
Gulshan Campus

Submitted By:

Group Members:

 Amin Saleem
 Aziz Ahmed Khan
 M. Taimoor Khanzada
 Shaheryar Zafar

Dated: 24th December 2008

Subject: Introduction to Business

Topic of Project: Entrepreneur (Whole seller)

Submitted To: Prof. Mazhar Ali

Business Profile
Business Name: Kabeer Store

Location: Shop # 5/80, Rauf Market,

Liaquatabad, Karachi

Telephone: 021-4921915(Karachi)

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Acknowledgement
We owe our profound thanks and deepest gratitude to ALMIGHTY ALLAH, most merciful,
who blessed us with determination, strength, ability and divine help to complete this term
report on Entrepreneur’s business.

This report is a part of our course titled as ITB conducted in IQRA University.

Then we would like to acknowledge our course instructor Prof. Mazhar Ali to give us an
opportunity to work on this project, and allow us to make use of our analytical abilities. It was
his guidance and never ending patience that lead us to complete this report.

Then we would like to thank Mr. Saleem for his altruistic guidance and patience.

Our special thanks to our beloved parents and friends without whose support we would not be
able to complete our assignment and their coordination has made us able to achieve the task
in time.

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Table of Contents
S.No Contents Page No.

01. Executive Summary 05

02. Business Description 06
 Background and Situation Analysis 07
 Mission Statement 07
 Timely Goals 08
 Business Value Proposition 08

03. Competitive Analysis 09

 SWOT Analysis 10

04. Market Analysis 11

 Market Segmentation 12
 Target Market 12
 Product 12
 Pricing 12
 Placement of Products 13
 Demand Forecast 13

05. Operations 14
 Operating Facilities & Equipment 15
 Inventory Management Procedures 15
 Customer Service Procedure 15

06. Financial Statements 16

 Financial Plan 17

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Executive Summary
Mr. Saleem (owner of the business) opened his first store in Karachi in the year 1993. His products are
a series of confectionaries & F.M.C.G (Fast Moving Consumer Goods). His customer base includes
small and medium sized retailers, institutional customers, hotel, restaurant and catering clients. It will
all times remain a low cost, low margin, high volume operation.

His primary goal is to become a market leader and increase his market share by providing all types
confectionaries & consumer goods. On the other hand he got greater goodwill and awareness among
the customers because of successful physical operating wholesale business in market.

His business works on Wholesale & Merchant model. He has a direct contact with suppliers. He is
maintaining his competitive advantage by continuous innovation and investing in new products. He is
now planning to bring a change in his business operations by employing good and knowledgeable staff
who are already trained as marketer of the products to increase his sales.

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Business Description

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Background & Situation Analysis
At the time of establishment, there were three main whole sale markets which
were:
1. Bolton Market
2. Lalukhet Market
3. Karimabad Market

And even there were not many wholesalers. So the sole proprietor was finding the
shop in these three markets. And at last he found one in Lalukhet market.

The background of this sole proprietor also belongs to the same industry as his
ancestors were in the same business so he had knowledge and experience about
running this business.

Mission Statement

He believes that mission plays an important role in how he continues to grow as a businessman and
how he develops his offering to customers.

“The mission statement of the entrepreneur is the

distribution of products with excellence in price,
quality and variety to professional customers &
retailers, offering them advantages and opportunities
to expand their business.”

Plans & Objectives of Business

1. His first objective was to be physically existent supplier for the small retailer, the
caterer and the professional in the service sector.
2. It will at all times remain a low cost, low margin, high volume operation.
3. To encourage good relationships and work together with his suppliers to enhance mutual
profitability and performance.
4. To satisfy consistently his customers' needs by offering excellent choice, good
availability and quality products that gives the entrepreneur the competitive advantage
especially in market.
5. He will maintain his competitive advantage by continuous innovation and investing in
new products.

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Timely Goals

1. His primary goal was to become market leader and increase the business reputation.
2. To strive for excellence. Every day he strives to be better than the last! That means going the
extra mile. Not being content with average performance. Wanting to be the best at what he
does.
3. Whenever see great performance in action, he used it as an inspiration.
4. To exceed customer attraction, he also allowed minimum amount of credit facilities.
5. He set the following core functionalities as his goals for the shop:
• Availability of product related information and updated prices
• Monitoring of payments and receipts.
• Promotions – Business cards & advertising on cables.

Business Values Proposition

1. His customers are his top priority and he recognize the importance of listening to them and
improving his services to meet their ever changing needs.
2. He and his employees are 'Always Happy to Help'! It's one of the core values because it's
essential that everyone is accessible to the customers. Listening is a way of life if we didn't
listen to our customers and colleagues, how would we know what they want? And if we don't
know what they want, how can we best serve them? The answer is we can't.
3. He believes that the most important values are integrity and loyalty. Based on the integrity and
loyalty of people, he wishes to continue to grow both for the benefit of his employees and for
the well-being of the society in which he lives and work. Motivate by example, smile and find
happiness in your work. It is important not to blame people. We all make mistakes. To blame is
to be negative. If integrity and loyalty are undisputed, a mistake might be the start of better
management.
4. Success comes to him because he invests in people that is by:
• trusting employees and customers
• giving employees responsibility
• stimulating creativity and own initiative
5. He believes that Customer Service is one of the most important parts of what we do as a
business.

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Competitive Analysis

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SWOT Analysis
Strengths
• Product prices are cheaper because he has direct contacts with producers.
• His goodwill as he is in the market for more then 15 years.
• Investing in new products.
• He got direct contacts with the professional customers.
• He also provides minimum credit facilities.
• His positive point is, people find going to big markets (like jodia bazaar) for shopping a real
tiresome activity because of high float of traffic.
• As compared to other wholesalers in the market he got quality and huge area of warehousing.

Weaknesses
• Some of the products are not up to the standard.
• Display is also not up to the mark.
• There is no proper tagging of where to find what.
• By the introduction of MAKRO and Cash & Carry etc. he is losing the strength of customers.

Opportunities
• Stretching the business like super stores.
• To take over the retail/wholesale market by increasing the sales values through engaging with
customers through a non-traditional e-commerce medium.
• He can make chain of stores in other markets and areas.

Threats
• Being in the market his business is the target of competition, locally. Intense price competition
is a threat.
• The unstable Political situation in the country can also be a threat.

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Market Analysis

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Market Segmentation

Retailers: This entrepreneur classified those customers who buy different products from his shop and
sell it in loose.
Institutional Customers: Those customers who run their business (can be said as retailers or
catering businessman) in different institutions like school colleges etc.
General Customers: Those customers that buy goods on quarterly or monthly basis for their home
needs.

Target Market

His potential customers will be all individuals, families and businesses who are purchasing in bulk. His
customers include consumers of all sorts of goods varying from confectionaries to FMCG (Fast Moving
Consumer Goods). He precedes the image of the product in customer’s eye by providing them
purchasing venue. Potential clients are businesses in which contacts and goodwill can provide
additional incremental sales. The businesses will range widely: simple consuming daily goods to
confectionaries.

Product

He sells a wide range of confectioneries and F.M.C.G (Fast Moving Consumer Product). Hence a great
deal of shopping opportunities for all sectors such as general public, Traders, convenience stores and
Caterers, such as restaurants and hotels.

Pricing

He sets his prices on the basis of his services and benefits that he his providing to his customers as
mentioned and explained in his financial statement which will also be dependent on his market
research when setting prices. The different aspects of market research that he will be keeping in mind
while charging price will include: Research of what competitors are charging, Research on what
customers are prepared to pay and Research on what benefits customers are seeking. He charges lower
than the big stores such as Imtiaz store, Naheed general Store, D-Mart, ARY Cash and Carry, Aghas
Super Market and Makro. As his aim is to increase his sales revenue, he will set the price which not
only make up his costs but also make a good profit. He’ll help you save money and
• Find the lowest prices available
• Compare product features, vendor ratings and user reviews
• Take the hassle out of shopping

Placement of Products

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He has placed the goods in such a prominent manner that even a new customer can find the goods very
easily.

Demand Forecast
He usually forecasts demand of different products by the rapidity of quantity sold. Keeping in view the
sales and consumer needs, he usually increases the demand of the particular products from their
manufacturers. Also he asks from customers and suggests the manufacturers about the demand of
individual products.

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Operations

Operating facilities

He provides transportation facilities to deliver goods to those professional customers who just place
their orders through telephone. He also has warehouses to save the goods from being rotten.

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Inventory Management Procedures

He has direct contact with its suppliers. He encourages good relationships and work together with the
suppliers to enhance mutual profitability and performance. He continues to improve his operating
procedures to assure availability of essential items at all times. His suppliers have direct access to his
inventory management system so that his suppliers will quickly distribute products and his customers
don’t have to face problems.

Customer Service Procedures

The basic working plan of his business proposal is based on cost minimization and benefit
maximization strategy for both the customers & the wholesaler. This entrepreneur promises to deliver
the goods within 3 days hrs once the order has been placed. The mode of payments would be as per our
customer convenience, either by Credit/Debit Card facility, cheques or by cash simply at your doorstep
because it is the customer satisfaction and customer convenience that entrepreneur values.

KEY BENEFITS
• Timely and efficient shopping
• Energy Saving
• Full convenience
• Reasonable priced goods
• New products and updated prices

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Financial Plan

Financial Plan
Initially entrepreneur invested approximate 300,000 rupees for the establishment of his business. If
business is marketed successfully and on schedule, it will help in growth and profitability. Most credit
sales will be via postpaid cheques. The following table provides an approximate breakdown of how the
funds were used.

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Business Setup
Shop Setup 120,000
Salaries 8,000
Warehouse 40,000
Marketing 12,000
Rent Expense 4,000
Purchasing 100,000
Sub-total 284,000

Revenues: He generated revenues from the sale of products in bulk to end user customers and
retailers.

Approximate Variable Costing Income statement for the

year 2007
Sales 20000000

VCGS 18700000

Gross Profit 1300000

Variable costs

Salaries 300000
Sales and marketing 5000
Bank Charges 6500
Utility Expenses 60000
Rent Expense 144000
Other Expenses 150000

Net Income 634500

Project Minutes of Meetings

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First Minutes of Project Meeting
Group Name: Hi-four group
Meeting Open Time: 04:30 p: m
Date: 11-12-2008
Present: Our all group members were present at the meeting regarding our term report.
Absent: None
Agenda: To find the object (Entrepreneur)

Output of the Meeting: Firstly, the step that we took was of listing different entrepreneurs in order
to select one. Finally we selected one of the neighbors who is running his business as whole seller.
After selection of entrepreneur we prepared questions that what we need to ask from the entrepreneur.

Second Minutes of Meetings

Group Name: Hi-four group
Meeting Open Time: 12:30 pm
Date: 14-12-2008
Present: All are group members were present at the meeting regarding our term report.
Absent: None
Output of the Meeting: We went to his place and asked the questions that we prepared.

Third Minutes of Meeting

Group Name: Hi-four group
Meeting Open Time: 12:30 pm
Date: 15-12-2008
Present: All our group members were present at the meeting regarding our term report.
Absent: None

Output of the Meeting: We began to write our report following the instructions given by Prof.
Mazhar Ali. First we prepared the executive summary and business description of the wholesaler.

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Minutes Forth of Meeting
Group Name: Hi-four group
Date: 19-12-2008
Present: All our group members were present at the meeting regarding our term report.
Absent: None
Output of Meeting: In our fourth meeting we have prepared market analysis, operations of
business & financial statement according to the interview which we have taken from the
wholesaler.

Fifth Minutes of Meeting

Group Name: Hi-four group
Date: 20-12-2008
Time: 11:00 am
Present: All our group members were present at the meeting regarding our term report.
Absent: None

Output of meeting: We are intended to tell you that we are done with the task assigned
of our term report in our last meeting. In this meeting we just have written all the minutes
of the meetings. Then we finalize the report and prepared the power point presentation
according to it.

Thank You

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