SEVENTH HEAVEN CATERING

2. Industry overview & Analysis

2.1 PORTERS 5 FORCES

2.1.1 RISK OF ENTRY OF POTENTIAL COMPETITORS

As stated before there is only one competitor in the region, which is North South Photocopier. But, rather than thinking about the existing competitor we have to concentrate more on the competitors who are about to enter in the industry. These competitors can take away some of our potential market share. To minimize the risk we have to develop our core competencies.

Being the low cost manufacturer will help us to be the cost leader in the industry. The resources are readily available in the market. The bulk purchase will reduce the purchase cost as a result the manufacturing cost will go down. With this we can provide the customer their needed materials in a lower price. Another is to develop is our capabilities. With the latest technology it is easy for us to provide the promised quality study materials in a lower price. Other things we have to take into account are the strategic advantages like, superior efficiency, superior quality, innovation and customer responsiveness. Superior efficiency can be achieved through employee training and motivation. Superior quality has to be achieved through the best use of the resources. New and new innovation in the way to providing service and the way of production can help us to gain advantage and the most valuable asset of the business is the customers responsiveness. This will help us to lower the cost and gain competitive advantage.

SEVENTH HEAVEN CATERING

2.1.2

Existing competitors & Rivalry

To have a clear view of the industry it is necessary to judge the rivalry among the competitors inside the industry. Whether To judge the condition of an industry it is necessary to judge if the rivalry among firms is currently. Whether it is polite or stable? Rivalry refers to the competitive struggle between companies in an industry to gain market share from each other using price, service, and advertising expenses. This rivalry increases when many firms of relatively equal size compete in the industry. In the catering industry this rivalry can be assessed by:

INDUSTRY COMPETITIVE STRUCTURE

In catering service business there is a large number of small or medium sized competitors, none of which is in position to determine industry price. The pricing is not set and no new owner can charge higher price until it is justified strongly through high product differentiation. In that case superior quality will be the main armor for competing against the competitors. The risk and uncertainty involved is thereby significant to some extent.

DEMAND IN THE INDUSTRY

The demand pattern of the industry also plays quite a significant role as a determinant of the intensity of rivalry among established companies. If there is a growing demand from customers or additional purchases by existing customers tend to moderate competition by providing greater scope for companies to compete for customers. Since in Bangladesh nowadays people want new things and brand intensive, they are always lookout on the unique services. Hence industry demand is very high. Quality and uniqueness will help gain the upper hand in such a situation.

EXIT

BARRIER ARE NOT HIGH

Barrier may come from factors like economic, strategic, and emotional issues that prevent companies from leaving the industry. In case of catering business this type of barrier is moderate. We can assess the state of exit barrier based on the factors like investments in assets, fixed costs, emotional attachment to the industry and economic dependence on a single

SEVENTH HEAVEN CATERING industry. Due to the low investment in those factors the exist barrier is not that immense in a catering business .

2.1.3

THREAT

OF

SUBSTITUTES

In a catering business there are usually several competitors. The products category is also very similar. The scope of differentiation is thereby quite insignificant. Threat of substitute for this industry is also very high Substitute product limits the profit potential of an industry because they limit the prices firms in an industry can change. Almost everything has a substitute but it is necessary to determine how close the substitute is in price and function to the product of the industry in concern. The catering business does suffer from the threat of substitutes to large extents. In terms of satisfying customer needs, there are many catering service offering quality food to customer.

2.1.4. BARGAINING POWER

OF THE

CUSTOMERS

The customers have a key that to a large extent determines the success of any business. Porters 5 Force Model has another factor, which is the bargaining power of buyers. An industrys buyers are individual customers who consume products and services like any other end users. Buyers can affect the profitability of an industry because they can bid down prices of demands higher quality or more services by bargaining among competitors. If the supply is large; usually it creates the opportunity for buyers to pick up the product of their choice from a wide range of varieties. So, it enriches the bargaining power of the buyers. The buyers have access to large variety of outputs, and also the switching cost is pretty low. Hence the bargaining power of the customers is high, which ultimately pushes us on the back gear.

2.1.5. BARGAINING POWER

OF

SUPPLIERS

Another porters five forces comprise the Bargaining power of suppliers. This refers to the ability of suppliers to raise input prices, threat to stop selling products & delay in delivering products. Suppliers can influence the future industry returns if they increase prices or reduce the quality of the product or the service they provide. The suppliers are more powerful if they

SEVENTH HEAVEN CATERING are few and if they are more concentrated that the industry to which they sell and if they supply critical inputs to several for which few, if any, substitute exists. Hence, the suppliers are free to change prices and services they supply to the firms in an industry. In the catering business the bargaining power of the suppliers are moderate since there are large suppliers and the switching cost for the companies are quite significantly low.

2.2 Core Competency

The core competence is the firms strength that allows companies to differentiate products and/or achieve substantially low cost and at the same time offer a better and superior quality than our rivals. There are various sources of core competences. These are discussed below:

HUMAN RESOURCES
Employees will be one of the biggest costs to incur while running the catering business, because we will need other administrative and support staff to run the day-to-day operation catering business. If we hire specialized employees who were already trained and know how to attract customer through cooperation and interaction, then they will definitely charge higher fees. Moreover, Employing specialized employees who will decide for us the superiority of the products and product longevity, then he/she is also likely to charge a lot of money. INNOVATION/CREATIVITY:
If we can be innovative then we can use our creativity and innovation as our core competence.

If we can gain brand loyalty through offering distinctive food item and service then we can become competent in terms of our service. Moreover, doing so we will also focus on providing the best possible quality product.

2.3 Industry SWOT

The following SWOT analysis captures key strengths and weaknesses within the company and describes the threats facing seventh heaven. Strengths:

SEVENTH HEAVEN CATERING Starting up a catering business does not require investing huge sums of money. It is very easy to open a catering business. There is minimal government interference or regulations regarding pricing and other factors.

Excellent staff who are highly trained and very customer attentive. Superior service offerings. World class chefs who have been trained and worked in different chain restaurants in home and abroad.

Despite having tremendous amount of competitors, we even large and yet increasing amount of customers who want some different product. Hence demand for such items is immense in the market.

One can also achieve economies of scale and there produce more in order to reduce per unit cost of production. This will enable the companies to rise their pricing.

Weaknesses:

A limited marketing budget to develop brand awareness. Our investment is not that much high and very small amount of budget allocate for marketing.

Lack of experience in the catering market as we are new in the scenario. We do not have enough experience about this business.

An upcoming business in any industry and can be considered profitable business and hence more competitors in the market. The existence of more entrants into the business and thereby enhancing the competitors is likely.

Since there are many other catering services in the market, the buyers have low switching costs and hence risk of entry is again high. With so many competitors it is difficult to create brand loyalty and brand equity. It is not impossible but here is a great amount of risk involved in it. A lot of time and effort will have to be given to get into a good position in the market.

Opportunities:

Growing market with a significant percentage of the target market still not aware that such a service exists. 5

SEVENTH HEAVEN CATERING

The growth in demand due to improving GDP per capita and the living standards of our targeted group of customers. They can thereby be able to pay a bit more for a bit better quality, which provides a large scope for our catering business.

Due to the infrastructure we can mobilize our operations and make our products available to more places to a large number of customers.

Threats:

Since the entry barrier is low and the demand for such kind of business is high, thereby, threat of new entrants will be higher. Competition from similar service providers in geographically segmented markets. Local, established competitors that wake up and realize that there is a huge market in the city.

The inherent high cost of quality food production. A slump in the economy that will decrease customer's budgets for parties. If the purchasing power of the buyers increase and their overall income rises, then people will tend to buy products from abroad and purchase foreign products.

2.4 Competitive advantage

The competitive advantage for the Seventh Heaven catering is that we will employ specialized skilled chef and the cost of hiring them is comparatively low in Bangladesh. Our competitive advantage would also lie in the offering the service in a new innovative way that are unique and moderately priced products. Meaning Sometimes we will provide some suggestion based on their theme of the event. We will also have different food option for our customer and if they want then we will customize the offering according to their needs. Moreover, the Employee will be trained not only in their specific operational duties but also in the philosophy of our concept to ensure the best quality of service. In order to provide quality service to our valued customer we will do research on the quality and integrity of our products. All these would add to our competitive advantage.

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2.5

Additional

strategic

consideration
Situational Analysis:
Seventh Heaven catering is a start-up company for which the most vital issue to its success and profitability in the long run is marketing. We will offer innovative, connoisseur admired food and establish ground-breaking standards in service for a wide range of events. In Dhaka, the market for a pure catering service is yet wide open as there is no such company which has dedicated its concentration solely toward catering service. There are some well-known restaurants that are providing with the catering service on contractual basis. We think, we have likelihood to acquire the largest share of this yet-to-identify market as we possess the knowledge and skills as well as the intention to do so. But, we must make sure that we carefully perform all the marketing functions.

2.5.1

PEST Analysis

POLITICAL AND LEGAL Analysis:

Political instability is the biggest barrier in Bangladesh for any business ventures. Frequent strike or siege activities will hamper the transportation to the location challenging. Unstable security system will also make it challenging to attract potential our target market. However, catering business is less likely to be affected by the political stability and instability. This sort of industry does not require following any sort of legal rules and regulations unlike other industries. People can easily start up this business and carry on with their operations.We will have to acquire a trade license from the City Corporation. We will need to prepare and submit an environmental impact assessment report to the Directorate of Environment (DOE) to obtain a clearance certificate for running the business.

Economic Analysis
Bangladesh has a low per capita income in comparison to other developing countries. But the per capita income for middle class, upper middle class and upper class is increasing, which is

SEVENTH HEAVEN CATERING our targeted market. Thereby it will not require intense effort to acquire the targeted market share. There will be an employment opportunity and as the educational requirement is not so high, it will create an attractive opportunity to some low skilled people to get a job. And that will be, may be to a very small extent, an important contribution to the economy.

Social Analysis
As we will employ some people who are not so educated, so in that way we will be able to reduce the burden of unemployed people from the society. Moreover we will take every possible step for the welfare of the environment of the society. So we will sure that after proper treatment almost pure and contamination free water will be thrown to nearby canal.

Technological analysis
The use of internet has been increasing exponentially in Bangladesh. Moreover, with the emergent of optical fiber, this usage and other related facilities will grow potentially. The internet will help our business in promotional activities, communicating with our prospective buyer more quickly. More over, the increased use of cell phone users and the existence of , dynamic and corporate friendly telecommunication service providers can be used to promote the businesss products and offering via cell phone lines to potential customers.

3. Market Overview
Before starting up the catering service we should first and foremost analyze and evaluate the market to find out whether it is appropriate and feasible to carry out the operations and maximize profits. The market can generally be overviewed in terms of the following factors:

3.1Potential Customers
Regarding consumption the company will segment the market. There are two basic groups. The first involves individual consumers who use catering services for personal consumption in different parties.

SEVENTH HEAVEN CATERING The second group involves commercial users like Cash and carry wholesaler Delicatessen wholesaler Health food wholesaler Frozen food wholesaler Restaurants and chains Institutional caterers

3.2 Size and Growth of the Market

If we consider over the social and economical structure of Bangladesh we can see that this market is growing. The market for catering services is recently increasing. There are greater opportunities to carry out this business in the market. Since it is easier to initialize these sorts of companies, the market has become extremely competitive. Similarly the economical factors and growing GDP of 6.51% shows that the people will have a higher income in future and they will have more money to spend on their entertainments and luxuries.

The reason behind considering this segment as our potential customer is the population structure of Bangladesh. If we look closely to the population structure we will see that the offices and business are the biggest and by targeting them we can increase our customer base. From the above analysis we can say that our market is growing enormously and we have many options to utilize this opportunities and increase our customer base. Here, is the opportunity for us to make a mark and serve them to make profit.

3.3 Strategic Group Analysis

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SEVENTH HEAVEN CATERING The demands of catering services have been high in Bangladesh. In different occasions people turn to catering houses. As mentioned earlier, there are some well-known restaurants that are currently acting as prime catering services. They will be considered as our competitor in the consumer market. Among them the key competitors are:

Baton Rouge: Baton Rouge is a Canadian restaurant chain. Their packages include lunch and dinner buffet with more than 100 of dishes including charcoal-grilled cuts of beef and fresh fish, crisp salads and exquisite appetizers. The prices range is quite high which makes it a choice for the upper class.

Pizza Hut: The world's largest pizza restaurant company with almost 6,600 restaurants in the United States and more than 4,000 restaurants in 100 other countries, Pizza Hut, Inc., a subsidiary of Yum! Brands, Inc. Their product line includes: Pizzas, Breadsticks, Cheese Sticks, Baked Cinnamon Sticks, etc.

Dhanshiri: Dhanshiri is a local cater house which mostly focuses on the indigenous foods. They provide lunch, dinner and other packages which include plain rice, fried rice, variations of biriyani and kebabs. The also provide pickles along with their dishes which is a unique feature of Dhansiri.

Helvetia: Helvetia is also a chain shop mostly providing different products, such as salads,

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SEVENTH HEAVEN CATERING burgers, chickens, juices, ice creams, etc. Their price range is also quite high. Coopers: A well known chain of caterers Coopers has a limited but tasty line of products which is different from the traditional caterers and helped them to gain wide consumer base serving in the country with reasonable price.

Distribution Competitor Bangladesh

in Features Various buffet Packages

Price For 10 (Approx) Dinner Buffet, Buffet Pizzas, Breadsticks Buffalo A wide variety of Wings, Cheese Sticks, TK 5900 Baked Cinnamon Sticks and need Pepsi Breakfast, Lunch, Dinner Mostly indigenous Salads, Pickles, Kebabs food TK 2610 Luncheon TK 6500 dishes.

Baton Rouge

Gulshan

Pizza Hut

Gulshan

products tailored to

Dhansiri

Uttara, Gulshan

Bonani, Helvetia Dhanmondi

Uttara,

Wide variety of fast food tailored to need

chicken, salads, ice cream, juice Product line of

burgers, TK 5620

coopers Pizza, TK 3900

Wide Coopers Uttara, Gulshan

variety

of

which

includes

products.

Cakes, Sweets, Pantaras and so on.

The competition has become very sharp since the introduction of international chain shops. The local cater houses have suffered most since they could not manage to gain a strong consumer base competing with the well known brands. Struggling in this strong competition, Pizza Hut has carved out a definite image and gained recognition among the targeted

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SEVENTH HEAVEN CATERING segments. The friendly service and the brand image provided the Pizza Hut an edge for competitive advantage.

Despite the fact that some if these restaurants have gained a competitive advantage by being backed up by strong international brand names, Acanthus believes that it can still position itself well beyond the reach of its competitors by assuring high-end service, competitive low-price, and by knocking the socks off customers with impressive food quality.

4. Overall strategy
Apart from the above mentioned strategies we strongly need to consider the long and the short term strategies in order to attain market share and also acquire more profit.

Business Level Strategy

Generic Business Level Strategy
Differentiation: To gain a competitive advantage from superior innovative products,
excellent quality services and responsiveness to customer needs. We shall position our products to customers that it appeals to their psychological desires.

Strategy to manage rivalry

Cost leadership:
To gain a competitive advantage we will position our products as a quality product at a relatively lower price. We will choose a low to moderate level of differentiation relative to competitors. By targeting the average customer, we will provide service that will be desired by the highest number of customer.

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SEVENTH HEAVEN CATERING

Market Development:

If we attain success in our current business activities then we would start looking for new market segments for our businesss services. This way we would be able to capitalize on the brand name we would have developed by that time in one market segment by locating new market segments. Thus, our customer base would also increase. In that way we could expand our business to international boundaries. Going global could also be a wise idea.

Product Development:

Updating our products along with time is undoubtedly the most significant aspect that we would keep in our mind. By making the customers realize that we are always adjusting our fashion along with time, which ensures a constant attraction of the customers to our store. The customers will then feel among themselves that there is always a surety of getting the most lately designed outfits in our stores no matter what.

Functional Level Strategy

Efficiency
We would try to attain higher level of efficiency through Attaining Economies of Scale: We can attain the economic scale by accepting more order from our customer and efficiently use our resources in order to produce that product. Hence, accepting more and more order will require larger amount of production and in that way we can acquire economics of scale as total cost will be divided among more and more outputs. Moreover, we will use efficient chef and employee who can produce quality food in a moderately different way can help our company to keep per unit cost down and thus achieve economic of scale. As our workers become more efficient in carrying out their service, the number of employees would increase. Thus, employees productivity over time would increase and cost per worker would decrease. Research & Development: We have decided to invest a large proportion of our total capital into more research and development in order to find out what types of food people actually want have in their various kind of events. . This is a very significant proportion of our business. Since a significant proportion of our money being invested

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SEVENTH HEAVEN CATERING in the research and development, this would create a vibe and a positive attitude towards our brand from the customers perspective.

Employee Training: In our business employees are major inputs in providing the promised service. The chef will be trained on special food item inorder to upgrade their skill and employees will be trained to be more cooperative and more humble to the customers. They will also be trained with marketing knowledge so that they have the convincing power and hence eventually convince the customers to make order from our company. The employee will also be trained that customers are always right. That is they will listen to the customer and provide suggestion based on their recommendation rather than just push the customer to choose from our menu.

ACTION PLAN
Seventh Heaven Catering will be introduced in October. Following are summaries of the action programs we will use during the first six months to achieve our stated objectives.

May:
Two tasting sessions will be organized with potential 35 to 40 customers. Press releases will be sent from mid-May.

June:
Tasting sessions will stop after the third and we will officially start our operation. Primary consumer market will be targeted for mass advertising for creating mass awarness.

July:

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SEVENTH HEAVEN CATERING As the advertising continues, we will publish brochures printed with all the information about our various menus which will be sent to different corporate houses and other commercial users.

August:
We will hold a food fair along with some other catering services where we will focus on letting the customers know how our products differs from that of our competitors in value and quality.

September:
We plan to roll out five new delicious menus to keep pace with the growing and ever-changing demand for new and innovative food.

October:
We will hold another food fair, but this time it will be in smaller ground where only we will take part to let the customers know about our new menus as well as the previous ones.

5.Company value chain analysis and operational plan

Research & development

Company infrastructure

Product

Marketing Customer Service

Financial support

Quality Management

Human Resource 15

SEVENTH HEAVEN CATERING

Primary Activities:

We will use in-house R&D in order to gain insight about customer food preference regarding specific event and can also get information about our competitors regarding their food offering to the customer. Thus it will enable us to add more value to our products and also enable to meet customer expectation. Our core service will be providing best quality food at a lower price in a way that is consistent with customer preference. Marketing function will help us create awareness about our existence and induce customer to purchase our product. We make our employee to be responsive towards customers in order to providing exceptional customer service.

Support Activities:
In order to carry out primary activity our company will have supportive activity as well. Our companys organizational structure, control systems, companys culture would shape the attitudes of our employees and staff. The task of quality management and human resources are discussed in later part.

5.1 Existing core competencies

In order to gain some substantial competitive advantage over the main competitors, our catering service has to master in some core competencies that will not be easy for the competitors to copy in the short run. Moreover, these existing competencies will be the base of creating the Point-of-difference (POD) compared to others. After making sure that, Point-ofparities (POP) of the industry have been met; our catering service will extensively and vigorously concentrate in maintaining and gradually excelling in these existing competencies. The main existing competence of our catering service that will go a long way to create a distinctive and positive image in the mind of the target customer and target audience is the strong dedication in practicing Relationship marketing. Here, we try to build and maintain long term mutually profitable relationship with the customer instead of making short term sale.

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SEVENTH HEAVEN CATERING Even at the cost of some short term profit, we are always committed to not only fulfill the need but also delight the customers by going beyond their expectation. Along with this above mentioned intangible competence, we have got some differentiated tangible competencies in the form of well trained chef with international experience who can blow peoples mind with their wonderful art of cooking, a set of well trained stuff who are trained to thoroughly emphasize on building relationship with customers, and a mouth watering menu with the widest range of dishes from all around the world.

5.2 Future core competencies

We will be continuously eyeing at acquiring some competencies that will enable us to gain and maintain the position of market leader in the future. To serve the purpose, we will always concentrate on developing the Potential product according to product level, which is the product or offering that, resides in the imagination of manufacturer but does not exist in reality. In the process, we will constantly come up with new PODs as the prior PODs become slightly obsolete after being copied by the competitors and thus turn into POPs in the industry. With the passage of time the main competence that we expect to consequence gradually is the customer based brand equity. In future the recognition, reputation and top of mind awareness in consumers, mind will be the main during force of our business. We also expect to gain a very strong financial backup based on which we can go on to ---relentless innovation and create a revolution in the field of catering service. To be more specific, we will vigorously try to reduce the lead time to the extent to reduce the lead time to the extent possible, make quickest and safest delivery to the customer, and master the art of designing, conducting and managing corporate parties with extra ordinary sophistication.

5.3 Product and service overview

Product overview:

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SEVENTH HEAVEN CATERING At the initial stage of our business, we will start with 10 menus (main and snack meals). And some other menus will be gradually introduced into the range as the year progresses. The following 10 menus will be available from the beginnings which are --1. Traditional Bengali items 2. Indian Dishes 3. Chinese items 4. Hors Doeuvres 5. Cold Buffet 6. Deserts and Cakes 7. Chocolate Fondue 8. Boxed Lunch 9. Mexican items 10. Italian Cuisine

Service overview:

Weddings, receptions, open houses, box lunches, picnics and corporate catering for lunches, dinners and special events. Carefully prepared foods made only of the finest ingredients. Professional, trained staff to supervise or manage every detail of the event. Advising menus for special events. Total menu development, food production and staffing for corporate and social functions and for some other special events also. Menus posted on-line for browsing pleasure and ease of communicating ordering.

5.4 Facilities
Quick delivery system: When we get an order from our consumers we try to deliver our service and products as quickly as possible for our consumers benefit, because we believe in quality service on time.

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SEVENTH HEAVEN CATERING Online/telephone ordering process: We take order from our consumers through telephone and online. We have a website for our catering service where we have clearly mentioned about our products and services and about our facilities and also mentioned the ordering process. Its taking less time and gives flexibility to consumers. Bulk discount system: We give some kind of discount system to our consumers according to their order amount. Suppose if any consumer order at tk10000 to tk15000 we will give him/her 10% discount. This facility will benefit them and they also will be motivated to take this type of facility with a qualified service. Advice for appropriate menus according to the ceremonies: Sometimes customers dont understand what type of manus they actually want for their programs or different type of ceremonies. So we have some specialists who can advice them about their menus which will be appropriate for their occasion or ceremonies. So it will reduce their tension about the proper manus which is a huge responsibility for preparing a great occasion. Different menus for different occasion: we will provide different menus for different occasions. Suppose if there will be marriage ceremony based on fully traditional based then we will provide traditional food items and also will serve in that manner and if there will be a wedding ceremony which will a kind of foreign style then we will give them Chinese items or give them whatever they actually want. So here mainly we try to say that we will provide our service based on consumers choice.

5.5 Equipment and machinery

There will be some equipment and machinery for processing our business--Delivery van Refrigerator Nescafe vending machine Food bars Ice caddies Gas caddies Water tank Beverage service carts

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SEVENTH HEAVEN CATERING Meal delivery carts Insulated bakery container Heat keepers Microwave woven

5.6

Production

and

manufacturing

process
In the manufacturing process, first of all we will receive orders from customers through three channels. They are- through online services, through telephone calls, through physical visit. Here, we will receive some partial payment as well. After receiving the orders, we will arrange them in chronological order based on delivery date. Then, group of orders will be formed with orders in close proximity in terms of delivery date. These groups will be formed to promote better efficiency and gain economics of scale. This will also allow us to get bulk discount from suppliers because of large supply orders. Then we will place orders to suppliers for necessary ingredients and raw materials. It will allow us to follow JIT i.e just in time supply chain and thus reduce our inventory storage expense. We will place the orders to suppliers with such a dead line which is well ahead of the dead line of final delivery to customers that allows us enough time to produce quality products and return the supply if defected and receive it again with ample amount of time left. After receiving the supply from suppliers in checking quality of it, we will make immediate payment to suppliers to maintain healthy and loyal relationship with them. Here we will follow some predetermined standard to assure quality of supplies. Then the supplies will be utilized in manufacturing the product. With the product service will be provided as per the orders on due date. Finally, rest of the payment will be collected along with feedback from the customers. Here collecting feedback and responding to them immediately is very critical since we are going for Relationship marketing.

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SEVENTH HEAVEN CATERING

Through online service

Through telephone calls

Through physical visit by consumers

Receive orders with deadline for delivery Receive partial payment in advance Arrange orders in chronological orders Place orders for necessary ingredients to suppliers with deadline. Receive supplies from suppliers on due date.

Check the quality of supplies according to some standards.

Does the quality of supplies meet standards? YES NO

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SEVENTH HEAVEN CATERING If the result is yes there will be some steps in Production and manufacturing process. This are-----

Store it and make payments to suppliers

Manufacture product as per the order and provide necessary service on due date.

Receive the rest of the payment.

Collect feedback from customers and respond immediately.

If the result is no then returns the defected supply for necessary adjustments.

5.7 Research and development

During the initial phase of the marketing plan development, we need to do market research and several focus groups will be held to gain insight into a variety of people that observe catering. These focus groups will provide helpful insight into the decision making processes of potential customers. Here an additional source of active market research is a feedback mechanism based on a suggestion card system. The suggestion card has several statements that customers are asked to rate in terms of a given scale. There are also several open ended questions that allow the customer to freely offer constructive criticism or praise. So . will work hard to implement reasonable suggestions in order to improve their service offerings as well as show their commitment to the customer that their suggestions are valued.

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SEVENTH HEAVEN CATERING

5.8 Quality assurance

Quality is a main thing of catering service and we have to assure this thing for gain our competitive advantage. Our catering services quality assurance begins with the people who serve our customers. All our team members will be highly qualified and will pursue higher knowledge in order to make the best service. Our catering services' will have strong ties with some of the best suppliers in the industry and customers will guarantee the best products from our sources. Our catering services will only accept the finest produce, the most reliable and consistent service and the fairest price.

6. Marketing Plan 6.1 Sales and marketing

To create, communicate and deliver value for consumer its better to assemble fully integrated marketing programs. One of the marketing tool that be used to pursue the marketing objective of Seventh Heaven is 4 Ps of marketing. They are:

Product Strategy:
Building the Seventh Heaven brand is an integral part of our product strategy. Seventh Heaven will start with 10 menus primarily with all the service features mentioned above. We will gradually introduce more menus in the passage of time. The brand and the logo will be displayed on every products packaging. The marketing strategy will seek to first create customer awareness regarding their service offerings, develop a customer base, and work toward building customer loyalty and referrals.

Pricing Strategy

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SEVENTH HEAVEN CATERING Initially it will be tougher to compete with high-end caterers who have professional chefs so we will put a fine line in pricing our meals. We have decided to choose penetration pricing strategy that proving good quality with higher price.

We are keeping in mind that the demand for our products will be high; we are expecting that the demand being so high our sales will also be pretty high and it will require larger amount of production Thus will help to achieve economic of scale and cost advantage as total costs will be divided among more and more outputs. More over, production costs will be identified and a margin will be added in order to cover overheads. At the time of setting price we will consider the price of our competitors. There will be a need for monthly reviews of costs of fresh ingredients and a quarterly review for other ingredients.

Distribution Strategy:
Consumer Sales: Orders will be delivered direct to the customers place in the firms own transportdelivery to reduce the distribution cost. So we will not use any retailer for distributing our product. By doing so we can ensure that the quality of fresh meal has not been diminished by time in transit.

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SEVENTH HEAVEN CATERING

Commercial Sales: Central bulk deliveries will be made to identify distribution outlets that can then sell on to individual outlets. In the case of contracts of groups, distribution will have to be agrees with them as the time of negotiation. It is planned to deliver to distribution warehouses as far as possible

Marketing Communication Strategy:

Consumer Market: Three tasting sessions to be organized for the end of May and early June for approximately 35 to 40 people already identified as potential customers during initial research. A promotional leaflet will be delivered to identify areas. Press release will be sent from mid-May onwards to five newspapers.

Commercial Market: Mailing: Identified commercial/group buyers will be sent a personally addressed letter introducing Seventh Heaven Catering, together with details of menus. This letter will state that a follow-up telephone cal will be made to arrange an appointment and a full presentation. Advertising/Promotion: Research will be undertaken with regard to a small advertising and press release campaign in appropriate business journals. Brochure/Leaflet: a simple cost-effective leaflet initially which can be used in both consumer and commercial markets. It will give brief details, including ingredients of dishes. The price list will be on a separate sheet for ease of reproduction and to allow for price changes.

6.2 CUSTOMER SERVICE:

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SEVENTH HEAVEN CATERING In any business it is essential to have a good customer relationship. Although it is crucial to build long-term relationship with customer but still we can do it by following some step such as: o Showing generosity o Patience in handling customer complains o Listen to the customer carefully o Upgrading the quality of product o Providing faster and quick service o Efficiency and accuracy in billing

7. Human Resource Strategy and Planning

9.1 Key Issue:

When we plan for the opening of Seventh Heaven Catering then it is not enough to think only about how to finance that business, how to market our products and how to get the raw materials or how much should we spend on our infrastructure. These things are important but these will not be able to do anything unless the company has a very high potential workforce that is human capital. We need to understand that it is the human resources of a company who does all the tasks, duties and responsibilities in order to achieve the organizational objective. Therefore, before starting a company it is very important to determine the quality and as well as the quantity of human capital that will be required in order to run the business smoothly and as well as making profit. Nowadays, a lot of Bangladeshi companies are showing interest to incorporate HRM functions in their companies, however, before moving ahead it is vital that they understand the concepts of HRM really well.

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SEVENTH HEAVEN CATERING We all know that every organization has their own business strategy and the top management decides that what particular strategy they will be following for a period of time. Here, it has been seen that sometimes there is no link between the HR department and the people who develop the business strategy. If the people of the HR department do not have any idea about the business strategy that their company is following then whatever they will do or decide will be of no use for the company. This is because when there is no link between them then they are not able to align the HRM activities with the organizational strategy. Therefore, what do we mean by organizational strategy and how can we align the HR activities with the specific strategy will be now discussed in detail. For example, if our company decides to follow the product differentiation strategy that it will produce some products of superior quality and as well as unique in the eyes of the customers, then it is important for the HR department to align its functions according to that strategy. By this we mean that while recruiting new candidates, they should keep it in mind that what are the qualities and traits the new recruits should possess so that they can work according to their organizational strategy. Then they should decide the ways that whether they need to go for normal training or extensive training, how they are going to develop them in future, how will be the compensation structure and what are the best techniques to be used to retain these workers.

Influence from The General Environment:

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SEVENTH HEAVEN CATERING We know that any company do not just operate within their product market environment rather a range of other external factor might influence HR planner considerably. Some of the major obvious factor that is relevance to Seventh Heaven Catering Hr planner is shown in a figure:

Industry/ Competitive

Economic
THE HR PLANNER

Demograph ic

Political

Global

Technologica l

Socio cultural

Linking HR Practices to Competitive Strategy

Now, we will be discussing about each and every step of HRM that we intend to follow in Seventh Heaven Catering and before doing that; we would like to give some information about the HR activities that will be conducted. Strategic HRM / HR Planning/Ethical Foundation

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SEVENTH HEAVEN CATERING Job Analysis / Job Design Performance Appraisal / Training / Development Compensation / Incentives / Benefits / Reward Management

Some basics and the Obtaining of Human Resources

When we talk about managing human resources in Seventh Heaven Catering, then we mean that we have to manage people within the employer and employee relationship, we have to plan, administer and review activities concerned with staff selection, training and development, conditions of employment and other HR issues within the organization and it involves the productive use of people in achieving the organizations strategic business objectives and the satisfaction of individual employee needs. Ethical foundation: First of all, we feel that it is very important to build up an ethical foundation in the company, otherwise with the current unethical practices of Bangladeshi people; we will not be able to run our business in the long run. The human resource manager and other HR executives should at first create an environment of trust in the organization; every single employee and labour must respect the other people in the workplace. Culture of the organization: The organizational culture should be like knowledge sharing where people are willing enough to share their knowledge with others if necessary and must if it is related to the completing of organizational objectives. The HR persons should make the people understand that if we respect each other, then only we will be able to synthesize the knowledge and the talents of all.

7.2 Staff Requirement Process

Job Analysis: Before we conduct the recruitment and selection processes, a proper job analysis should be done. Therefore, in the first place, the company is in need to perform a manpower analysis so we can come up with the information that how many persons do we actually need in the office as white collar workers and how many labours do we need that is the blue collar workers.

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SEVENTH HEAVEN CATERING Job Description: After we have these details in our hand, we need to prepare the different job descriptions and job specifications. In descriptions, we will give details about the tasks, duties and responsibilities about the jobs and in job specifications, we will decide what are human traits, skills, knowledge and competencies required to perform the job. When we have completed doing these activities, then it will be the time for us to start the recruitment process. Requirements Process: Now, we have to consider it in our action that recruitment will be done not only for the employees but we will also need to recruit labours. Therefore, for employees the recruitment channels that we intend to use are: Referrals Personal contacts Internal Consultants Newspaper Websites For the blue collar, the recruitment channels that we will prefer are: Referrals Personal contacts Internal

The reason we prefer these channels because, when we will recruit labours then we will be more focused toward the behaviour and the attitudes of the labour rather than his or her academic qualifications. Therefore, here we need some persons as referrals who will be able to tell us about the work habits of that person and whether that person will be able to work properly in the factory or not. Selection process: When we have finished recruiting the potential employees and labours, then it will be the time for us to perform the selection process as now we need to hire the most desired person from the pool of potential candidates. These are some of the Selection tools that we may use whereas they will not be used equally for the selection of employees and labours: Interviews like stress, panel, etc 30

SEVENTH HEAVEN CATERING Written tests Assessment techniques like working in a team, e.g. giving them a group project

7.3 HR Structure
The company's management philosophy is based on responsibility and mutual respect. We will environment and structure that encourages productivity and respect for clients and fellow employees. The company's goal is to create an environment where: Creativity can flourish. Generating new ideas and products is well rewarded. Management structure is relatively flat and communication is encouraged. Mutual respect and sharing of knowledge is encouraged.

Organogram
Managing Director

Financial manager

Marketing manager Junior Executive

HR manager

Operational Manager

Junior Executive

Junior Executive

Chef

Cleaner

Guard

Apprentice Chef

Assistant Chef

Sous Chef 31

SEVENTH HEAVEN CATERING

Managing Director: Managing Director will be responsible for taking all the

strategic planning and decision by consulting with all the managers. However, a crosssectional team will be build to bring coordination and integrate all functional tasks with each other so the alignment is ensured and synergy is created.

Financial Manager: He will responsible for the overall financial plans and

accounting practices. More over his duties will be to manage treasury, accounting, budget, credit, cash, and tax and audit activities of the organization. Most importantly, he will have to provide timely financial and statistical report to the decision maker.

Marketing manager: He will be responsible for the overall marketing and

promotional activity of our organization. That is he will need to focus on customer, monitor competitors, build brand and communicate to the customers, create new ideas, understand and manage the budget. In addition to this department need will need to develop marketing strategy in order to gear up the sales.

HR Manager: To carry out daily operation a company needs to have skillful

employee and this employees are recruit by HR department. This manager is mainly responsible for recruitment and selection; provide training to upgrade the employees skill, provide compensation (bonus, pension) to motivate the worker.

Operational manager: This manager will be responsible for managing day-to-

day operation. A junior executive will work under this manager. The executive will handle three chef, some cleaners and genitors, and two guards. Apart from this, the manager will handle customers problems as well.

Junior executive: In order to provide support to the upper level manager there Chef: One who holds the title of chef has quite a few different general

will be three assistant executives who will regularly report everything to the manager.

responsibilities related to their professional role. The chef is responsible for overseeing subordinates in their daily work environment. That is, he will basically manage all individuals who work under their charge in the kitchen. Moreover, the chef will oversee the preparation of meals and ingredients, final presentation, sanitary issues and timeliness on the part of the employees. Along with planning the menu, the chef is also responsible for creating the recipes.

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SEVENTH HEAVEN CATERING

Guard & cleaners: here will be two guards for the office, who will work in

two different shifts. There will be two cleaners and genitors as well.

7.4 Expectations
Improving Performance in Seventh Heaven Catering
In Seventh Heaven Catering, the HR executives will be constantly monitoring that whether the employees are able to perform their current job well or they are facing any kind of difficulty to do their job. If they find that an employee or a labour is not able to do their current job well, then at first their training needs will be identified and according to that they will be given training. Moreover, the HR personals will be responsible for identifying the future workloads and then they will come up with the details that in which areas the workers need to be developed. We have planned that if we need to develop our employees so that they can attain the skills and competencies required in future, then we will send them to different workshops in the country like to improve managerial skills, we will send them to seminars and we will give them simulated training in order to accomplish our goal.

In Seventh Heaven catering, we will be also concentrating on how to get the best performance from the workers and while doing so we have to measure the performance of the workers, give them the results of their performance appraisal and then giving them feedback on how to improve their performance in future. Some of the techniques that we would like to use for performance appraisal are: Graphic Rating Scale Alternative Ranking Behaviourally Anchored Rating

Compensation Structure of Seventh heaven Catering

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SEVENTH HEAVEN CATERING Compensation is the most important term to talk about when we think on how to motivate the employees to do their current job well and as well retaining them for the future.

Compensation Package: We have decided to link the compensation package of

the employees to their performance. This is because to remain competitive in our business, it is vital to create a competitive mindset of the employees so that they can compete well. Now, we cannot only focus on seniority or the loyalty of a person to the organization but we will focus on performance. It is also important that the benefits are liked by the employees because in most cases, employees tend to compare the benefits of different companies while deciding to switch their job.

Recognition Program: we also plan to do some Recognition programs, as we

strongly believe that a small recognition goes a long way. The performance of every employee will be compared and at the end of every month, a star performer will be selected to give special bonus or will be entitled to receive a small paid leave.

Annual Picnic and Reward Programs: To motivate the employee we plan to

do annual picnic and reward programs where some of the best performers will be selected to give away awards in front of all the labors. In addition, we will try to make the benefits flexible to the employees so that they can choose the range of benefits they want to receive.

Managing the Human Resources

When we talk about managing the human resources at Seventh Heaven Catering, we mean that how are we going to manage the employment relation, industrial relation and what are the activities that we intend to do to as our Corporate Social Responsibility. The HRM activities that we have mentioned above that we plan to follow are really costly to incorporate and in that sense we will make a contractual employment agreement of at least one year so that we do not have any losses in case of employees leaving our company. Then for managing the industrial relations, we have decided that we will not allow any sort of union practices in our workplace. We know very well about the advantages of union and we also know about the disadvantages of union. So far, in Bangladesh, it seems to be that the disadvantages are far more out weighted than the advantages and so we have decided not be involve us in such complex situations.

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8 .Risk Analysis
In order to carry out business successfully we need to consider not only internal but also external factor. No matter what the business is about but it associates some risk. There some risk which may predict and there are some other which we cannot predict. So foreseeable risk can be control by taking some action. But it will be difficult to deal with unforeseeable risk. Because it occurs suddenly and affect the business operations badly and ultimately, hamper the profit of the business. We have identified several risk our seventh heaven catering business which are given below:

10.1 Foreseeable Risk:

1. Price of raw material: The price of every raw material is increasing day by day. So, we will not be able to offer a stable price for our service. As the increasing price will push us to increase the price of our product otherwise will not be able to make profit out of our business. 2. Health conscious consumers: Consumers are also becoming more health conscious these days. They look for hygienic in every food product. In order to ensure the best quality we will have a neat and clean kitchen and the chef will also make the product in hygienic way. 3. Differ in customer choice: Every customer has their unique choice and it is a threat for us, if we cannot meet the need of diversified people. For this we will have to come up with different food menu so that will not loose our valuable customer. 4. Bargaining power of customer: Customer has a tendency to lower down the price if there are many other competitors available. So definitely, it is another most important criteria which we need to work on. In order to deal with this problem we can offer discount based on our regular price.

10.2 Unforeseeable risk:

1. Economic Situation: Bangladeshs economy is still in the developing stage. It is not very strong and can fluctuate a lot. For example: High inflation rate is a very common scenario here and this will lead to increase in price thus people purchasing power will decrease. Mainly this will badly affect the our potential customer with lower income.

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2. Political Situation: Currently Bangladesh undergoing a political turmoil. It is affecting the overall system of the country. Due to political matter, there may be massive blockade in the business. This can come in the form of strikes, continuous disruptions etc. 3. Saturated Market: The catering business in Bangladesh is reaching its saturation. There are already too many catering companies like Baton Rouge, Sajna, faquruddin ect are presence. Moreover, customer demands are increasing drastically and every company try to offer product to satisfy customer need. So this will make the competition tougher for Seventh Heaven 4. Weather: One of the most important unforeseeable risks that will affect operations is the weather of Bangladesh. As Bangladesh has tropical climate with occasional natural disasters, it will becomes difficult for us to maintain the operation. Since we will use natural and fresh vegetable and fruits from the supplier who will collect it from village firm may hamper because of these climatic disasters. Also, we may face problem with the deliver of service during such disasters.

9. Financial plan
9.1 Assumptions
Important financial assumptions are given below. The growth of will be moderate and the cash balance will always be positive. Being a retail environment we will not be selling on credit. We will accept cash, checks, and all major credit cards. Marketing and advertising will remain at or below 5% of sales. We will continue to reinvest residual profits into company expansion, and personnel. All sales paid via credit cards will be deposited in our business checking account within 48 hours. Our business checking account will be with BRAC Bank.

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SEVENTH HEAVEN CATERING Sales will increase in the second year by 10% and in the third by 15% compared to first year. Tax rate is assumed to be 40%. Depreciation is calculated using straight-line method over 5 years. No new loan will be taken during the period. Operating expenses is assumed to increases in the third year.

9.2 Initial Investment

Start-up Cost
Start-up Expenses Rent Telephone & Utilities (3 months) Business Insurance Advertising & Promotion Store Fixtures/Decorations Computer/Cash Register Organizational Dues & Subscriptions Business/Office Supplies Other Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirement = Total Start-up Expenses + Total Assets = 920,000 + 1,750,000 = 2,670,000 Tk Taka 300,000 35,000 100,000 100,000 150,000 85,000 50,000 50,000 50,000
920,000

Taka 100,000 800,000 0 850,000

1,750,000

item

taka 37

SEVENTH HEAVEN CATERING Delivery van refrigerator oven stove Kitchen utensils 550,000 100,000 80,000 70,000 50,000

Start-up Funding
Means of Finance Owners Investment Banks Term Loan : Tk. 1,000,000 : Tk. 1,700,000 (12% interest)

The Bank loan will be taken from southeast Bank at a 12% interest rate which is to be paid in 5 equal installments at the end of each year for next 5 years. Banks Loan Repayment Schedule is followingInterest Rate : 12% PMT : Repayment of Outstanding the Principal 267,597 299,708 335,673 375,954 421,068 Loan 1,432,403 1,132,695 797,022 421,068 0

Loan Amount : Tk. 1,700,000 PV = PMT (PVIFA, 12%, 5) Interest Year 1 2 3 4 5 Installments 471,596.54 471,596.54 471,596.54 471,596.54 471,596.54 Portion 204,000 171,888.41 135,923 95,643 50,528

9.3Income Statement
Pro Forma Profit and Loss 2009 Sales 1,050,000 Direct Costs of Goods 525,500 Other Production $0 Expenses -----------Cost of Goods Sold 525,500 Gross Margin Gross Margin % 525,500 50.00%

2010 1,250,500 625,250 $0 -----------625,250 625,250 50.00%

2011 1,300,000 6500,000 $0 -----------650,000 650,000 50.00% 38

SEVENTH HEAVEN CATERING

Expenses Salaries 65,000 Sales and Marketing 52,500 and Other Expenses Depreciation 17,000 Telephone / Pagers/ 8,500 Cell Utilities 26,500 Total Expenses Operating 169,500

79,000 62,525 17,000 8,500 26,500 193,525

92,000 70,000 17,000 10,000 32,000 221,000

Profit Before Interest 356,000 and Taxes Interest Expense 204,000 EBT 161,000 Taxes Incurred 64,400 ------Net Profit 96,600 Net Profit/Sales 9.2%

431,725 171,888 259,837 103,935 ------155,902 12.47%

429,000 135,923 293,077 117,231 ------175,846 13.55%

9. 4 Cash Flow Statement

Pro Forma Cash Flow Statement 2009 Cash Received Cash from Operations Cash Sales 1,050,000 Subtotal Cash from 1,050,000 Operations Additional Cash 2010 2011

1,250,500 1,250,500

1,300,000 1,300,000

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SEVENTH HEAVEN CATERING Received Sales Tax, VAT, $0 Received New Current $0 Borrowing New Other Liabilities $0 (interest-free) New Long-term $0 Liabilities Sales of Other Current $0 Assets Sales of Long-term $0 Assets New Investment $0 Received Subtotal Cash 1,050,000 Received Expenditures Expenditures from Operations Cash Spending 117,500 Bill Payments 35,000 Prepaid rent 300,000 Subtotal Spent on 452,500 Operations Additional Cash Spent Sales Tax, VAT, Paid 0 Out Principal Repayment 0 of Current Borrowing Other Liabilities 0 Principal Repayment Long-term Liabilities 471,596 Principal Repayment Purchase Other $0 Current Assets Purchase Long-term $0 Assets Dividends $0 Subtotal Cash Spent 924,096

$0 $0 $0 $0 $0 $0 $0 1,250,500

$0 $0 $0 $0 $0 $0 $0 1,300,000

141,525 35,000 300,000 476,525

171,000 42,000 300,000 513,000

0 0 0 471,596 $0 $0 $0 948,121

0 0 0 471,596 $0 $0 $0 984,596

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Net Increase in Cash 125,904 Cash Balance 125,904

302,379 428,283

315,404 743,687

9. 5 Balance Sheet
2009 Assets Current Assets Cash Inventory Prepaid Rent Total Current Assets Pro Forma Balance Sheet 2010 2011

125,909 1,500,000 600,000 1,625,904

428,283 1,650,000 300,000 2,378,283

743,687 1,700,000 0 2,443,687

Long-term Assets Long-term Assets 255,500 Accumulated 17,000 Depreciation Total Long-term 238500 Assets Total Assets 2,447,403 Liabilities Capital and

238500 17,000 221,500 2,257,695

221,500 17,000 204,500 2,648,027

Current Liabilities Accounts Payable 15,000 Current Borrowing 0 Other Current 0 Liabilities Subtotal Current Liabilities 15,000 Long-term Liabilities Total Liabilities Owners Equity 1,432,403 1,447,403

25,000 0 0 25,000 1,132,695 1,157,695

30,000 0 0 30,000 797,022 827,022

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Equity Retained Earnings Total Liabilities Owners Equity

1,000,000 0 & 2,447,403

1,000,000 100,000 2,257,695

1,000,000 571,005 2,648,027

9.6Capital Budgeting Techniques

To analyze the acceptability of the project we use the techniques of internal rate of return and net present value. Here we have calculated the individual cost of capital for each of the sources of financing we have used. We have combined these capital costs into a single weighted average cost of capital. 2009 62% 38% 7.20% 1.40% 3% 2010 62% 38% 7.20% 20.60% 10.3% 2011 62% 38% 7.20% 36.12% 16.35%

Weights of Debt (Wd) Weights of Equity (We) Cost of Debt(After Tax) (Kd) Cost of Equity (Ke) WACC

To estimate the weighted average cost of capital, we multiplied the cost of each source of capital with the capital structure mix. WACC = WdKd(1-T) + WeKe From these calculated weighted average cost of capital, we have calculated the value of net present value (NPV) to analyze the acceptability of our business plan to start our business. The formula to calculate the NPV value is as below, NPV = -CF0+PVn

The calculation for Free Cash Flow is FCF = [NOPAT (1-Tax rate) + Depreciation Expense] - Change in Working Capital - Change in Investment = Operating Cash Flow - Change in Working Capital - Change in Investment

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2009 NOPAT Plus: Depreciation expense 756,388 17,000

2010 830,922 17,000 342,578 0 505,344

2011 850,819 17,000 312,226 0 555,593

Less: Change in NWC 100,000 Less: Change in capital spending Free Cash Flow (FCF) 0 673,388

Since we have considered the capital of investment in our project is Tk. 1,000,000, the value of CF0 is 1,000,000 and by discounting the cash flows with the WACC we found the PV of all our cash flows as follows: Free Cash Flow WACC n PV 2009 673,388 3% 1 653,775 2010 505,344 10.3% 2 405,750 2011 555,593 16.35% 3 433,889

Initial Investment = Tk. 1,000,000

NPV = -CF0+PVn =Tk. 1,493,414-1,000,000 = Tk. 493,414

And by using the values of the present values of free cash flows and the weighted average cost of capital we find the value of NPV = Tk. 493,414

And this positive value of NPV shows that the projected cash flows of the firm will be profitable and thus acceptable.

10. Long Term Sustainability

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SEVENTH HEAVEN CATERING Sustainability is a characteristic of a process or state that can be maintained at a certain level indefinitely. In order to sustain in the catering business for long-term is a big challenge for us because the market is already very competitive and new competitors are rising each day. So to sustain in such industry we must follow the following strategies. To be competitive in all aspects cost, quality and efficiency. Continuous innovation of different items and also being up to date with the competitive market. Not to compromise on quality at any time. In order to be a permanent player in the market, we have to be consistent in our food quality. Providing high level of customer service. It means assisting the customers in finding them the best outfit. Not to fluctuate the prices too often. Providing discounts in different occasions and year end sale will be a good way to create new customers, thus it leads to extension in the customer base. Differentiation of products is essential for long term sustainability. Understanding the demand of the market is another key component to sustain in the market. Before going for any differentiation, we must understand the demand of the customers. To have regular management meeting is necessary for long run sustainability. The more we will have meetings, the more we will have the opportunity to identify any error and at the same time will be able to correct it before it causes us a major loss. Managing the inventory is crucial for this business and proper monitoring can resist the inventory to increase more than the market demand. Establishing community links will help the business to sustain in the long run. This is because nothing works more effectively than word of mouth.

11.Conclusion
To conclude, we would like to say that we are not planning to start this business only to compete with the restaurant and catering Service Company but we want to be the best among all the catering business in Bangladesh. We have done an extensive analysis of the market and 44

SEVENTH HEAVEN CATERING in that sense we know what kind of products are being demanded more frequently and by which segment. Our analyzing of financial statements, marketing approaches and human resource management strategy gives us an extra confidence to conduct our business and to devote more time in it. Therefore we can conclude if all the activities are in align then we will be able to make profit and provide superior service to our customer and can sustain for long period of time.

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