11/13/2018 Business Research

Method
Assignment # 02

Mobile Shop
Proposed New Business Setup

Submitted to: Proff. AHMED FAISAL SIDDIQI

Prepared by: Muneer Hussain L1F18MBAM0246
Faisal Rasheed L1F18MBAM0245
Zain ul Hassan L1S18MBAM0099
Date: 12/11/2018
Section: (E)
Pre-Feasibility Study Mobile Shop (Retail Outlet)

Pre-Feasibility Study

(Mobile Shop)
Retail Outlet

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Pre-Feasibility Study Mobile Shop (Retail Outlet)

Table of Contents
Executive Summary .................................................................................................................................... 3
Introduction ................................................................................................................................................. 4
Name of Mobile Shop.............................................................................................................................. 4
Objective of the Business ........................................................................................................................ 4
Vision Statement ..................................................................................................................................... 4
Mission Statement ................................................................................................................................... 4
Location of Business ............................................................................................................................... 4
Legal Status of Business ......................................................................................................................... 4
Description of Product & Services ............................................................................................................ 5
Project Cost Summary ............................................................................................................................... 5
Human Resource Requirements ................................................................................................................ 6
Marketing Strategy of Business ................................................................................................................. 6
Operational Strategy of Business............................................................................................................... 6
References .................................................................................................................................................... 6

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Pre-Feasibility Study Mobile Shop (Retail Outlet)

Executive Summary
Present age of digitalization has turned the world into a global village. Everyday new
innovations, advancements, inventions and discoveries are taking place in the field of
information technology around the globe. This phenomenon has influenced Pakistan too
especially development of telecom sector during last two decades has opened new avenues
of opportunities for entrepreneurs and businessmen. Considering the current market
situation with growing number of mobile cellular subscribers has been the motivation to
start a cellular mobile shop.

The proposed mobile shop will not only provide new cellular sets and mobile accessories
but also offer repair services. It is proposed to be located in a commercial market of
residential area belonging to middle and upper middle-income group.

The initial cost of the planned shop is to be aggregated around 3.0 million rupees and is
proposed to be financed through 80% debt and 20% equity having a payback period of
almost 3 years. The legal status of the business will be partnership.

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Pre-Feasibility Study Mobile Shop (Retail Outlet)

Introduction

Name of Mobile Shop

The proposed name of the mobile shop will be “Cell Resort”.

Objective of the Business

The prime objective of the business is to earn extra money apart from job salary. A second
but equally important goal of the business is to explore and improve entrepreneurial
capabilities of owners.

Vision Statement
To become the leading distributor of cellular phones and wireless communications
services in Pakistan.

Mission Statement
Our Mission is to provide customers quality cell phone products and services at one
place. Assisting the customers in picking the product and service that best meets their
needs. Competitive prices, wide range of products, and excellent customer service is our
winning strategy that captures the hearts of our customers.

Location of Business
The proposed shop is planned to be open in Hafeez Centre, a renowned marketplace for
cellular mobiles, related accessories and repairing services. Hafeez Centre, being a well-
known hub of cellular mobiles and easily accessible, attracts large number of potential
customers. The proposed shop will be established in rented premises with an area of
around 400 sq. feet, having electricity & telephone connection. Apart from traditional
brick and mortar model, a website of the proposed business will also be launched to
enhance the customer base.

Legal Status of Business

As far as the legal status of proposed business is concerned, it will be run as a partnership
business.

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Pre-Feasibility Study Mobile Shop (Retail Outlet)

Description of Product & Services

Telecom sector of Pakistan has flourished by leaps in bounds in recent years as the mobile
service as well as the mobile set and its related accessories are becoming cheaper day by
day making it affordable for every person to avail the service.

This business involves purchase of new mobile sets and related accessories directly from
various cellular manufacturing companies. As our target market is middle and upper
middle-income group so product shelve will range from economical mobile phones such
as Oppo and Q-Mobiles to expensive sets such as Samsung and iPhone etc. and all related
accessories such as hands free, chargers, batteries, data cables etc. will also be made
available.

Apart from mobile sets and related accessories, the proposed shop will also house a state-
of-the-art repair lab where services such as battery replacement, keypad replacement and
display screen replacement etc. will be provided on affordable rates.

Project Cost Summary

The total project cost for setting up mobile shop is estimated at Rs. 3 million. It is planned
to be financed through 80% debt from bank and 20% equity. Capital Cost and Working
Capital will be provided later. This business will provide employment opportunity to 8
individuals excluding the owner. The anticipated payback period of the business is almost
3 years. Detailed capital expenditures and working capital estimates will be forecasted
later.

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Pre-Feasibility Study Mobile Shop (Retail Outlet)

Human Resource Requirements

In order to manage and run the mobile shop successfully, following human resources
are required:

No. of
Description Salary per Month
Employees
CEO/Manager 1 16,000
Finance/Account Officer 1 12,000
Marketing Officer 1 12,000
Salesmen 3 10,000
Mobile Repair Engineer 2 10,000

Total 8 90,000

The above table provides details of human resource required in the 1st year to run this
project. Salaries of all employees are estimated to increase at 10% annually.

Marketing Strategy of Business

Operational Strategy of Business

References
Small and Medium Enterprises Development Authority (SMEDA)
https://smeda.org/

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