Business Plan of

CNC Wood Engraving Machine

Innovative Cutting And Engraving

Offering High Quality Products and Fine Services Innovative Cutting & Engraving is a Manufacturer of modern computed

numerically controlled (CNC) and engraved parts. We have prided ourselves on quality products and timely delivery.

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Company Introduction

Company Name :

NewTech Enterprises

Product Name :

NewTech CNC

Wood Engraving Machine

Mailing Address:

Head Office: 14FF Kohinoor Plaza Main Jaranwala Road Faisalabad.

Warehouse: Small industrial State Sargodha Road Faisalabad

Website Address: www.newtech.com

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Management Team

CEO Name: Mr . Kh .Shehryar Masud Mob : 0321-8666418

Project Director: Mr.Muhammad Sajid Mob :03217696911

Head of Department Marketing: Mr. Muhammad Shahnawaz. Mob: 03217713003

Head of Department Finance Miss Maira Gull

Head of Department HRM Miss Sana Imtiaz

Head of Department Operations Miss Saba Ishaq

Head of Department MIS Miss Shumaila

Head of Department Art & Design work Miss Naila

Head of Department Consumer Relation Miss Samreen

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Confidentiality Agreement

The undersigned reader acknowledges that the information provided by NewTech in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of the CEO NewTech.

It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to NewTech.

Upon request, this document is to be immediately returned to CEO

Kh .Shehryar Masud

___________________Signature___________________

Name ___________________

Date ____/____/______

This is a business plan. It does not imply an offering of securities.

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we at NewTech are committed to provide intelligent products which facilitates the manufactures of wooden products world wide by satisfying their needs in time using state of the art equipment and CNC technologies, Enhance their productivity and profitability by reducing their labor cost.

Nature of Business :

This is a Trading business and the concept is to get new machines from china and distribute it in Pakistan but the major difference is to provide services after sale.

Estimated Finance Required:

The estimated finance for this project is 10 million rupees but one can start it even less than 10 million this decrease of investment depends on the number of machines that one can stock . one have to maintain his stock sufficiently and 5 to 6 machine should be there initially in stock at any time. One Machine cost us at home of about Rs 130000 and can be easily sold Rs 160000. According to our plan we will use 50% Equity and 50% Debt.

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Executive Summery

This is a trading business in which we are importing machines and spare parts of CNC (computer numeric control) Wood Engraver Machines from Ruijie Corporation China and to distribute it into our local Pakistani market. Currently there is no such distributor available in the market so we have to make our distribution network first. And initially the product works on exclusive distribution network. As we are dealing with business products so our target costumer is all the manufactures of wooden products who want Innovative Cutting and Engraving on wood. Such customers are working on large scale and face heavy demand of their wooden products inside as well as out side the country.

Over all the Furniture industry in Pakistan is developing gradually at its own and the idea of setting up showrooms on G.T Road, and Gujarat By-pass is increasing. The estimated overall furniture sale from Gujarat is about Rs. 250 million per annum. This figure is gradually increasing with the increasing demand and quality consciousness of the consumers. Right now this CNC Engraver machine concept is new for the current market and people are not familiar with the product’s efficiency, so they are conscious regarding their investment in such (tools) machines, but they can afford it and can welcome it if they will find a reasonable price by showing them the related benefits.

The estimated finance for this project is 10 million rupees but one can start it even less than 10 million this decrease of investment depends on the number of machines that one can stock . one have to maintain his stock sufficiently and 3 to 4 machine should be there initially in stock at any time. One Machine cost us at home of about Rs 1300,000 and can be easily sold Rs 1600,000. According to our plan we will use 50% Equity and 50% Debt.

We at NewTech provide Ruijie brand which is well-known in quality and the related benefits it provides and offers fewer prices. So the positioning of our product in the minds of our customer will be fewer prices and more benefits which is the main reason for making this business a great success.

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Industry Analyses

Global Environment:

The global trade of furniture is concentrated in selected countries. Four of the largest markets for furniture are USA, Germany, France and Italy - all with a domestic market of over $10 billion. The United States is the world's largest furniture market, where the opening to imports in the last few years has been impressive. There exists huge potential for future growth in trade of furniture as new markets continue to open such as China, India and Russia, which have the capacity to reach up to US $ 10 billion.

Pakistan’s E conomic Development :

Pakistan is basically an agricultural country having 25% of total area under crops. However, forest has quite meager part, which is about 4.8%; whereas, the recommended ratio for balanced economic development, and environmental stability of the country is 20-25% . Due to over population stress, natural forest areas are being withdrawn from production to be placed in reserves. Everything points to a growing imbalance between demand and supply. Pakistan is suffering from acute shortage of timber wood and wood products. Share of forestry in GDP in 1983-84 was 0.35%, whereas in the year 2000, it has been reduced to 0.1% only. Growth rate of firewood during 1988-93 was 8.8% whereas during 1993-98 it was 2.9% only (Anonymous, 2000a).

Presently, public forests of Pakistan contribute only 10% of fuel wood and just 14% of the commercial timber. Farm grown wood provides 90% fuel wood and 65-70% of timber wood requirements (Mohyuddin, 1998). The remaining 15-20% of timber requirement is being fulfilled by the import of wood and wood products (Ahmad, 1991; Khan, 1989) and Rs. 9163.9 million per annum is being spent on the import of wood and wood products. The total demand of wood in the year 2000 was 844600 m3

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Political – Legal Environment:

Pakistan’s export in furniture has remained stagnant due to lack of modern machinery & latest technology. Government of Pakistan is trying its best to improve this rich industry’s potential by emphasizing upon the opportunities for the foreign investors, to develop the industry by the import of modern wood working machines and latest wood processing techniques, working closely with the Pakistan’s furniture industry in near future. The domestic demand for home & office furniture is growing at an annual rate of over 25%. The next decade will see tens of thousands of new apartments and offices coming up every year, requiring to be furnished – a growing opportunity for the furniture manufacturers.

Furniture industry is developing gradually at its own and the idea of setting up showrooms on G.T Road, and Gujrat By-pass is increasing. The estimated overall furniture sale from Gujrat is about Rs. 250 million per annum. This figure is gradually increasing with the increasing demand and quality consciousness of the consumers.

There are around 350 units overall and over 8,000 persons are directly or indirectly involved in this sector. At the moment, a few of the local furniture manufacturers are exporting furniture items to the individual clients in UK, US, Saudi Arabia and Middle East. The total export of Furniture from Gujrat is about US$ 4.5 million. (Directorate of industries), however due to limited production capacity these firms are not able to fulfill the large export orders and hence can not compete vigorously in international markets..

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SWOT Analysis

StrengthsCreative designs and innovating cutting.Multifunctional productsUnique productCompetitive priceProviding support after sale .

Weakness:

Entirely new brandDistribution and supply chain are not developed yet.Dependent on our supplier.

Opportunities:

Can gain the first mover advantage in this fieldTo capture the entire wood market. No such technology available in the market.Expansion in future

Threats

The global economy downtown Easy entry of the competitorMarket are very complicated and diversified.No copyrights protection

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SECTION 1: DESCRIPTION OF VENTURE

We design and supply an exclusive range of Wood Carvings Machines to meet a variety of applications. Our designed Wood Carvings are used by countless customers all over the country, as these are enough to meet their specific requirements. Special designs and advanced features of these Wood Carvings always attract users to prefer us than other ordinary designers serving in the competitive market. Hence, our expert designers don’t compromise with the quality of material and latest technologies required in the designing process. They keep them update with all the market trends and prefer latest methods and techniques to design them.

The machine is designed to offer maximum flexibility and much opportunity of CNC engraving letters on wood, other items like presentation 1) gift articles, 2) pops, 3) Regards, 4)Temple panel, 5) Wall pictures, 6) School boards, 7) Company logo, 8) Artistic carving tiles, 9) Pictures of maps, 10) Drawing pictures. The revolutionary state-of-the-art-Technology engraving cutting of letters, marking and inlay work is carried out on fully automated and computer-controlled machine

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Growth Trends In This Business

Furniture industry in Pakistan is developing gradually at its own and the idea of setting up showrooms on G.T Road, and Gujarat By-pass is increasing. The estimated overall furniture sale from Gujarat is about Rs. 250 million per annum. This figure is gradually increasing with the increasing demand and quality consciousness of the consumers.

Targeted Market and Customers:

As we are dealing with business products so our target costumer is the manufactures of wooden products who want Innovative Cutting And Engraving on wood. Such customers are working on large scale and face heavy demand of their wooden products.

Pricing Power:

Right now this CNC Engraver machine concept is new for the current market and people are not familiar with the product’s efficiency, so they are conscious regarding their investment in such (tools) machines, but they can afford it and can welcome it if they will find a reasonable price by showing them the related benefits.

Suppliers: This is a trading business in which we are importing machines and spare parts of CNC engraver machines from ABC Corporation China and to distribute it into our local market.

Distributor :

Currently there is no such distributor available in the market so we have to make our distribution network . and initially the product works on exclusive distribution network .

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Location of the business :

This business is basically divided in to two parts the one is head office and the other one is its warehouse.

Head office: Head office is a place where our business customers will get interact with us so it should be in a fine location and initially one should go for a rented office or for its own office .we have selected a place for the head office is

14FF Kohinoor Plaza Main Jaranwala Road Faisalabad.

We have get this place on three year agreement against Rs 500000 Advance payment and Rs 50000 monthly rent.

Warehouse: is a place where all the products are used to store before the sale happens it can also serve as workshop and can store all the spare parts of the CNC engraver machines and also it contains the technical department who is there to support out targeted customers. so mostly it is used by the company so there is no need get a very fine location for it. Any place which is wide, good for storage of machines and easily accessible is fine for warehouse. we have selected a place for the warehouse is :

Small industrial State Sargodha Road FaisalabadWe have get 15 marls place on three year agreement against Rs 150000 Advance payment and Rs 15000 monthly rent.

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Office furniture and Equipment:

To meet official requirement of this business the following furniture is to be required

Description No of Units Unite price Total Tables 10 10000 100000Chairs 20 2000 40000Computer 5 20000 100000Carpet 2 15000 30000Stationery     20000water Dispenser 1 7000 7000Over Head Expense     5000Telephones 6 1000 6000Facsimile 1 20000 20000Internet 1 1200 1200 Total     329200

All office equipment and furniture and fixture are purchased on cash and they are company assets and insured by Premier Insurance Company .

Personnel’sHuman Resources CEO-

Project Director- Rs 50000 Marketing Dept: 40000 Finance Dept 40000 HRM Dept 40000 Operations Dept 40000 MIS Dept 40000 Art & Design work Dept 40000 Consumer Relation Dept 40000 Operational; mangers 40000 Offfice Staff 5000 Total HR costs Rs 360000

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Professional Consultants

We have professional consultants in our business like Sir Khurram Ayaaz ( IT Manager AM-Tex Faisalabad) who is a well known personality in the field if Digital processing and embedded software engineering ,who is there to support us and providing there services in trouble shooting and maintain ness of machines,he is there to help us in dealing with after sale services support of such CNC wood Engraving machines

Work Experience Related to My Intended Business:As nature of the product is technical and it required a lot of technical knowledge to understand this machine . Especially As it is controlled by computer (CNC computer Numeric Control) and use both the hardware CAM and software CAD so one should have the basic knowledge of IT.Being the Director of this project My Work Experience in this regard is that I have done BS(Computer Science) and after completing my BS degree I have moved my self towards business education and I chose MBA degree to get familiar with business terminologies and its useful practices. So this project needs all the skill related to business as well as information technology . Also one must have to satisfy the costumer so it also required strong interpersonal skills.

Background of Entrepreneurs: As the CEO of this project what I feel the thing which motivates me in this business is that it is a trading business and because I have the experience of production related business that is yarn manufacturing. And the current situation of Pakistan due to energy crises is not in favor of manufacturing.So I have to go for trading and I believe the Future survival is only in trading business. As the Project Director of this project what I feel the thing which motivates me in this business is that I have seen the embroidery machines and I know how rapid this business is developed in Pakistan. 10 years back it was a new and unique concept to make embroidery through machines and there was only one distributor of such machines in Pakistan but now that business has been penetrated in the Pakistani market and same is the case happen with CNC engraver machines because the product is new and one have to develop its market now so this is the right time to get into this business.

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Order for Machines to Ruijie china

Operational plan

Flow of Orders for Machines .

This is a Trading business and the concept is to get new machines from china and distribute it in Pakistan but the major difference is to provide services after sale

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Import

Clearance

NEWTECHHead office

Price Settlement

Finalizing Order

Execution

Customer Pakistan

NEWTECH Ware hose

Technology Utilized:.

Website Address: www.newtech.com

This is the web address of the company. The company would operate

through Internet technology and through telephonic technology. People can

also place an order by sending written proposals.

Description of Companies Operation:

NewTech will get a jump-start to building its client base primarily because

of its location and the fact that it is the only service provider of its kind in

the area. This will make it very easy for new clients to try Newtech's

Business Centre for the first time. It will then take our total focus on

customer service to ensure that those clients return.

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we will service our direct customers through our head office location on

14FF Kohinoor Plaza Main Jaranwala Road Faisalabad. The customer will

first welcome by our receptionist who is there to help them in their queries

if they want to buy a new machine than the client will move towards our

selling department and if he need some special service regarding there

existing machines than he will move to our service/ customer care

department, customer can also make payments in head office and

customer can enjoy our delivery service which we have offered as well,

depending on demand of the customer.

Credit Terms & Guarantees

Once we have verified their credit history with a credit agency check, our

business clients will be offered 30-day account terms. A 3 percent penalty

will be applied to all overdue accounts. Frequent and high-volume customers

will be eligible for discounts and specials.

Marketing Plan

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Marketing analysis

Market size

The information sources for determining market size is following:

Customer surveys

There are around 350 units overall and over 8,000 persons are directly or indirectly involved in this sector. At the moment, a few of the local furniture manufacturers are exporting furniture items to the individual clients in UK, US, Saudi Arabia and Middle East. The total export of Furniture from Gujrat is about US$ 4.5 million. (Directorate of industries), however due to limited production capacity these firms are not able to fulfill the large export orders and hence can not compete vigorously in international markets..

Market growth rate

currently there is 15% market growth rate annually and this growth is increasing .

Market profitability

This framework, known as Porter's five forces, identifies five factors that influence the market profitability:

Buyer power Supplier power Barriers to entry Threat of substitute products Rivalry among firms in the industry

Low Car manufacturing takes extremely large amount of capital to enter. To compete at GMs level is next to impossible.

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Market trends

Right now this CNC Engraver machine concept is new for the current market and people are not familiar with the product’s efficiency, so they are conscious regarding their investment in such (tools) machines, but they can afford it and can welcome it if they will find a reasonable price by showing them the related benefits.

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5-Strategic alliance

There exist a strategic alliance between NewTech Pakistan and Ruijie china ,the motive behind this strategy is that they have the manufacturing technology and we have the desired market so being manufacture they are producing and we are here to distribute it in to Pakistan

Key Success Factors

The key success factors are those elements that are necessary in order for the firm to achieve its marketing objectives.:

Access to essential unique resources

We are largely dependent on our suppliers so the major key factor is that if we become successful to get proper input from our suppliers (Ruijie) with in proper time.

Ability to achieve economies of scale

Second success factor is, increase in sale and reduced our operational cost.

Access to distribution channels

Easy and timely access of our distribution system

Technological progress

Latest up to date technology in CNC engraver machines

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The Marketing Mix

Marketing decisions generally fall into the following controllable categories:

Product Price Place (distribution) Promotion People

PeopleThe main problem faced by NewTech was the identification of the need and demand of people so that they feel satisfaction .for this purpose a survey was conducted and question were asked .our target market was wood manufacturer.

Market research

NewTech is accompany that have done a grate job in the field of innovative products.we conduct a survey to know that what people want? Special type of Questioner was prepared and the views of people were asked .Research is very important when ever we launch a new product.

For the purpose the research approach we used:

I. Survey researchII. Observational research

III. Behavioral data

Our research instruments used are:

a) Questionnaire b) Telephonec) Face to face survey

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SegmentationNewTech Company divides the market on the basis of different factors.

1) Geographical segmentation

Country urban areas sub urban areas

Pakistan 77 % 23 %

Province

Punjab,

City

Lahore, Gujrat, Chaniout, Multan, faisalabd,

2) Firmographic segmentation

As we are making business products so our target costumer is the manufactures of wooden products who want Innovative Cutting And Engraving on wood. Such customers are working on large scale and face heavy demand of their wooden products.

3) Behavior segmentation

i) Quality sensitive:

The behavior of our target customer is first of all he is quality sensitive and want quality products.

4) Need base segmentation

i) Need of power:

Such target customer feels more power by getting unique and advance machinery into their business.

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PRODUCT:

Model Number: Wood working Machine(RJ2030)-1-1

Country of Origin:

China (mainland)

Brand Name:

Ruijie

 

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Primary Competitive Advantages:

Experienced Staff Guarantee/Warranty Price Product Features Quality Approvals Reputation Service Small Orders Accepted

Main Export Markets:

Eastern Europe North America Mid East/Africa Central/South America Asia Western Europe Australasia

Supplier Address

Jinan Ruijie Mechanical Equipment Co., Ltd. Daliu, China National Highway 308Daqiao, TianqiaoJinanShandongChina  250000Tel:  (86 531) 8808 3666  (86 531) 8809 1666 Fax:  (86 531) 8808 2666 /  (86 531) 8809 0866

Homepage Addresshttp://www.globalsources.com/jnruijie.coOther Homepage Addresshttp://www.jnruijie.com

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Product Specifications Brand name Functionality Styling Quality Safety Packaging Repairs and Support Warranty Accessories and services

Key Specifications/Special Features :

Specifications: o This machine is widely used in process for single

lines,milling,3D,cutting and engraving. o Lathe bed adopts strong welded steel tube to avoid distortion. o Y axis adopts double motors to keep stable moving. o High accuracy Rack Rail travel method with high speed. o Imported Square Liner Rail,high accuracy,heavy burthen. o Advanced international technology vacuum with double cavity. o Humanization Design of lathe bed vacuum and easy working. o Intelligient protecting working fable.

Application:

Furniture Processing Industry, Home Decoration, Woodworking Decoration, Doors Manufacturing, Wood Art Work

Parameters:

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o Working area: 2,000 x 3,000 x 190mm (80.77 x 120.17 x 7.5 inches)

o Max moving speed: 5,000mm(197inch)/min o Max Engraving speed: 2,000mm(78.8inch)/min o Hold method: Vacuum o Reposition Accuracy: 0.05mm o Working dictate: G code o Spindle: 3.0KW Water Cooling o Spindle speed: 6,000 to 24,000rpm o Collet: ER20 o Transmission:XYHigh Definition Rack Rail Z Imported Ball

Screw. o XYZ Guide: Square Liner o Operation system: DSP controller o Consumption Power: <1900W o Dust collector power: 3KW o Absorption power: 4KW

Payment Details:

Payment Terms:

o Telegraphic Transfer in Advance o LC

Minimum Order:

o 1 to 99 Set

Value-Added Services / Augmented services

• After sale and servicing

• Free delivery Distribution Network

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Distribution -Scope Strategies 

Exclusive distribution o Limiting the distribution to only one intermediary in the

territory Intensive distribution

o Distribute from as many outlets as possible to provide location convenience

Selective distribution o Appoint several but not all retailers

Initially we will use Exclusive Distribution Strategies for this business: 

A main factor in choosing NewTech was its expertise in “high-quality technical products on the consumer market.” 

Exclusive Distribution: Advantages 

Maximize control over service level/output Enhance product’s image & allow higher markups Promotes dealers loyalty, better forecasting, better inventory and

merchandising control Restricts resellers from carrying competing brands

 

Exclusive Distribution: Disadvantages 

Betting on one dealer in each market Only suitable for high price, high margin, and low volume products

  

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Companies Distribution channels

Channels -Selling to the customers: As we sell by our self whether by our

employ or by our sales force, we are in these cases in front of the final customer. There are not intermediaries between our customer and us .

Manufacturer (Jinan Ruijie Mechanical Equipment Co., Ltd)

↓ Distributor ( Importer ) NewTECH Enterprises ↓ Warehouse ↓ Customer

Positioning :

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NewTech provide Ruijie brand which is well-known in quality and the related benefits it provides and offers fewer prices. So the positioning of our product in the minds of our customer will be less price and more benefits.

Product pricing :

The product price is mainly consists of the following factorsFinancial cost + Timing cost +Energy cost + Risk

Pricing strategies

Value pricing ( skimming) It means that we base our prices on the value we deliver to our customers. This practice is also called skimming. It is easy because we are in the introductory phase of the product life cycle.

Consumer price------------- Rs 1,600,000 ($ 18824)

Supermarket selling price----Rs 50,000 ($600)

Shipping to Faisalabad-------Rs 25,000 ($300)

Factory price----------------- Rs 1,200,000 ($ 14118)

Break even Analysis

Our price of a single machine is Rs 1600000 a competitive pricing strategy. And we have a fixed costs Rs 360000 that will remain constant whatever the number of machines sell: To sell this machines we need Rs 100000 variable cost in labor and raw material. To recover your fixed costs without making any profit you have to make a sale in amount:

Fixed costs (360000)/Selling price(1600000)-Variable costs(100000)= Rs 2600000 aprox

So as we have one machine price is Rs 1600000 so we have to sale two machines in one month to survive

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Promotion

Promotion DecisionsIn the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:

Promotional strategy (push.) Personal selling & sales force Public relations & publicity Direct marketing Advertising

Advertising Media:

Electronic Media

I) Radio

FM radio is one of the popular way to introduce such products to our target customers by making special introductory program on the promotion of our products .

Reach radio advertisement covers major cites of Punjab and covers 60% of the target market which is affected by your advertisement.

Frequency: The number of time a person is exposed to your message. In our case a person must be exposed seven times to our message in a month.

Message: special half an hour introductory program on the promotion of our products.

ii) Email

we have try to send maximum emails to our target costumes consisting details of our products .our target customer can also interact with us by sending emails as well. The email address is as fallow newtech@hotmail.com

iii) website

website is made for highly educated business man who is using internet and keep him/her self up to date by visiting different websites in this regard we have developed a website www.newtech.com . it not only contain all information regarding existing products but also the products that company is going to launch in near future .

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2) Print Media

1) Newtech’s innovations Magazine: A special magazine “Newtech’s innovations” design by the Newtech company to provide information regarding new brands.

2) professional magazines: we can also promote our products in some special industry magazine like architectural magazines ,furniture magazines

Promotional budget

Per month Budget for electronic media

Media Vehicle Title of vehicles Duration Charges

Electronic website www.newtech.com one month 1000 Email comsat’s ISP one month 500 Radio Introductory program 30 minutes 10000

Per month Budget for printed media

Media Vehicle Title of vehicles Duration Charges

Print Magazine Industrial innovations monthly 5000

Total promotional expenses

Per month Budget for electronic media = 11500 Per month Budget for printed media = 500

Total =12000

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Organizational PlanIn this organization only the partners will contribute towards business, nobody outside the organization would be to invest and only the finance will be borrowed from the bank.

Form Of Organization.This is a medium scale organization and it is basically a trading company.

Organogram:

CEO

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BOD’s and G

H R Finance

MarketingOperations Project

Director

M I S Art

& Design

Consumer

Relations

Thus an effective organization is an arrangement of people that successfully achieved their purpose, ie. a large profit of fine product, and have done so in a noteworthy, exemplary, commendable method or fashion.

Organizational structure is defined as ‘the organization’s formal framework by which job tasks are divided, grouped and coordinated’

We use Organic structures in our organization, alternatives to mechanistic structures. The underlying philosophy of the organic model is to provide the “space” for all people to contribute ideas and effort towards the well being of the organization. Organic organizations are characterized as ‘highly adaptive and flexible with little work specialization, minimal formalization and little direct supervision of employees’ .Since organic organizations takes into consideration the ideas of the employees this opens the doors to create teamwork among employees.

Size of the Business:The size of the business is small and initially 25 persons are enough for such an organization, and among CEO will work at the top level management and are responsible to make strategic plans and decision .Than comes middle level management playing a key roll working at the same time with upper and low level management which have 8 to 10 people who are there

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Managers

Asst Managers and Others

to execute the plans and then 16 to 20 persons will work as operational managers who are directly dealing with different corporate clients and with middle level managements.

Size of the Business:

1. Top Level of Management

It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions.

The role of the top management can be summarized as follows –

a. Top management lays down the objectives and broad policies of the enterprise.

b. It issues necessary instructions for preparation of department budgets, procedures, schedules etc.

c. It prepares strategic plans & policies for the enterprise.

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d. It appoints the executive for middle level i.e. departmental managers.

e. It controls & coordinates the activities of all the departments. f. It is also responsible for maintaining a contact with the outside

world. g. It provides guidance and direction.

2. Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management.

Their role can be emphasized as –

a. They execute the plans of the organization in accordance with the policies and directives of the top management.

b. They make plans for the sub-units of the organization. c. They participate in employment & training of lower level

management. d. They interpret and explain policies from top level management

to lower level. e. They are responsible for coordinating the activities within the

division or department. f. It also sends important reports and other important data to top

level management. g. They evaluate performance of junior managers. h. They are also responsible for inspiring lower level managers

towards better performance. i.

3. Lower Level of Management

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Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees”. In other words, they are concerned with direction and controlling function of management. Their activities include –

a. Assigning of jobs and tasks to various workers. b. They guide and instruct workers for day to day activities. c. They are responsible for the quality as well as quantity of

production. d. They are also entrusted with the responsibility of maintaining

good relation in the organization. e. They communicate workers problems, suggestions, and

recommendatory appeals etc to the higher level and higher level goals and objectives to the workers.

f. They help to solve the grievances of the workers. g. They supervise & guide the sub-ordinates. h. They are responsible for providing training to the workers. i. They arrange necessary materials, machines, tools etc for

getting the things done. j. They prepare periodical reports about the performance of the

workers. k. They ensure discipline in the enterprise. l. They motivate workers. m. They are the image builders of the enterprise because they are

in direct contact with the workers.

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Identification of Partners:

The partners are Miss Saba Ishaq, Miss Sana Imtiaz, Miss Maira Gull, Miss Naila, Miss Sumaila, Miss Samreen, Mr. M.Sajid, Mr.Shahnawaz, and Mr.Shehryar.

Recruitment PlanRoles and Responsibilities of members (Job Description and Job Specification)

Job description of CEO; Setting strategy and vision Corporate policies, Controlling activities Capital allocation Profitability and growth Relationship with board of directors Management recruitment and development building culture. Team-building

Job specification of CEO; A minimum of five years of experience in business

management, planning and financial oversight. A minimum of five years of experience in personnel

management. A minimum of three years of experience working with a board

of directors and committees. College graduate or equivalent experience. Proven skills in business and financial management. Demonstrated ability to work in a proactively diverse and

inclusive organization.

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Excellent interpersonal, verbal and written communications skills.

Demonstrated ability to manage and supervise a staff team. Demonstrated ability to multi – task and work in a fast – paced

office setting. Proven ability to cope with conflict, stress and crisis situations. Effective problem – solving and mediation skills. Proficiency with office computer equipment and software.

JOB DESCRIPTION of Finance Manager; providing and interpreting financial information; monitoring and interpreting cash flows and predicting

future trends; analyzing change and advising accordingly; formulating strategic and long-term business plans; researching and reporting on factors influencing business

performance; analyzing competitors and market trends; developing financial management mechanisms that

minimize financial risk; conducting reviews and evaluations for cost-reduction

opportunities; managing a company's financial accounting, monitoring

and reporting systems; liaising with auditors to ensure annual monitoring is carried

out producing accurate financial reports to specific deadlines; managing budgets; arranging new sources of finance for a company's debt

facilities; supervising staff; keeping abreast of changes in financial regulations and

legislation.Job Specification ;

MA in Finance, Accounting or equivalent experience. Extensive financial or cost management experience. 5+ years senior level experience in international

development program operations. In depth knowledge of USAID, CDC and other

international donor agencies. Knowledge of cost accounting methods and practices

applicable to management of private and federal monies.

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Comfortable with a team approach to management and the ability to manage several major activities simultaneously.

Effective communicator with ability to communicate organization’s direction and ability to motivate others with strong, honest leadership.

Excellent general management skills particularly in facilitation, team building and coordination

Posses excellent problem solving skills. Public Accounting or financial reporting experience. Experience in the preparation of financial statements,

budgets and forecast. Firm foundation in accounting principles and financial

reporting standards. Sub-contract and sub-agreement financial management

experience. Experience developing finance and accounting policies,

procedures and systems. Demonstrates a leadership and management style that

works in cooperation with others who represent a wide range of interests and needs.

Experience with international, non-profit organizations (larger than $10M), as well as a multi-office, multi-national environment.

Understanding of the difference between contracts and cooperative agreements and their relevant terms and

Job description of HR manager; Plan, develop and implement strategy for HR management

and development (including recruitment and selection policy/practices, discipline, grievance, counseling, pay and conditions, contracts, training and development, succession planning, moral and motivation, culture and attitude development, performance appraisal and quality management issues)

Establish and maintain appropriate systems for measuring necessary aspects of HR development

Monitor, measure and report on HR issues, opportunities and development plans and achievement within agreed formats and timescales

Manage and develop direct reporting staff. Manage and control departmental expenditure within agreed

budgets.

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Liaise with other functional / departmental head so as to understand all necessary aspects and needs of HR development, and to ensure they are fully informed of HR objectives, purpose and achievements.

Maintain awareness and knowledge of latest HR development theory and methods and provide suitable interpretation to directors, managers and staff within the organization.

Contribute to the evaluation and development of HR strategy and performance in co-operation with the executive team.

Ensure activities meet with and integrate with organizational requirement for quality management, health and safety, legal requirement, environmental policies and general duty of care.

Audit and authenticate all documents related to legal, salary statements and distribution, policies etc.

Develop and Maintain healthy relation with Govt. and Non Govt. Organizations for better and fast functioning of organization.

Plan for employee’s performance appraisal; develop tools for appraisal, job evaluation and development.

Plan and direct for Training of employee including senior managers, maintain contact with outside resources for training.

Job Specification; Minimum of 6 years human resources experience Preferable to have experience in two or more of the

following areas: human resources management, organizational development/change management, process improvement (Six Sigma preferred), compensation, staffing.

Excellence in a client management model: mobilizing the best people and integrating the tools and processes required to meet the needs of the business

Business driven with strong financial acumen. Strategic planning, complex problem resolution and general

management expertise. Outstanding communication and presentation skills. High level of interpersonal skills and integrity; solid team

player. Ability to influence senior management, establish and

maintain collaborative partnerships and provide thought leadership.

Ability to architect and drive change

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Ability to lead in a global, matrixes environment

Critical Risks and Potential impediment

Environmental Risks

New Concept Our product is a new concept for Pakistani market and it may become a potential risk for our company to develop new market because people itself are very much sensitive about new industrial products.

Financial Risks

Capital Arrangement.

As we have elaborated in our Financial planning that our capital budgeting consist of 50% Equity and 50% Debt. So we may have Difficulty in arranging the debts from financial institutions.

Management Risks & Problems

Availability of Technical Human Resource

This machine is a little more complex in nature so to fully understand the working of machine one should have special knowledge regarding Computer added design CAD and Computer added manufacturing CAM So under such condition we need high technical people that may become problem in future for hiring special technical assistance.

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Legal Risks & Hurdles

We will have to involve with some Legal Issues like company registration, import issues , WAPDA stipulation so such following potential hurdles have been anticipated that may become a barrier in our smooth launching this particular entrepreneurial business plan.

FINANCIAL PLANS NEWTECH INTREPRISES

INCOME STATEMENT

For the peiod ended June 30th,2010

    2010 2011 2012

Particulars   Amount (Rs.)    

Sales  64000000 76800000 80000000 720000000

Less: Cost of goods sold  5100000 61200000 63750000 57375000

Gross profit 58900000  15600000 16250000 14625000

         

Operating Expenses        

Marketing Expenses 100000 1200000 1320000  1452000 

Administration expenses 360000 4320000 4536000 4762800

 

Operating Income 10080000 10394000 8410200

 

Add: other income 20000 240000 264000 303600

         

       

Less: Interest Expenses  62500 700000 700000 700000

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EARNING BEFORE TAX   9620000 9958000 8013800

Less: Tax 10%   962000 995800 801380

EARNING AFTER TAX   8658000 8962200 7212420

NEWTECH INTREPRISES

BALANCE SHEETAs on June 30th,2010

    2010 2011 2012

         

LIABILITIES        

  RS. RS. RS.

Owner’s equity   5000000  5000000   5000000  Long term loans   5000000 5000000 4500000

 

current liabilities  

Short term loan   500000 500000 450000

  Bill payables   100000 150000 300000

Provision for taxation  

Excise duty 2% 500000 477740 900000

Custom duty 2%   313000  300000 894103

Sales tax   1000000 1800000 1500000

Income tax 10% 1800000 2500000 3500000

TOTAL LIABILITIES   14213000 15727740 17044103

         

ASSETS        

Fixed ASSETS   RS. RS. RS.

Vehicles 2000000 2430000 2187000

Office furniture     329200  312740 297103

Intangible

Copy right 7 15000 60000 40000

  Long term loans and advances        

Preliminary expense 150000 - -

CURRENT ASSETS        

Cash 8 1268800 1300000 1320000

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Stock and trade 2550000 3825000 5100000

Stores, spares and tools 9 1100000 1300000 1500000

Accounts receivables 10 6800000 6500000 6600000

TOTAL ASSETS   14213000 15727740 17044103

NEW TECH ENTERPRISES

Cash Flow Statement

  2011 2012

     

Cash Flow from Operation    

Cash received from customer 73500000 71800000

Cash paid to suppliers (55000000) (60000000)

Interest paid (750000) (750000)

Tax paid (1135000) (1132000)

Net cash provided(use) by operating activities 16615000 63918000

Cash Flow from Investing Activities

additions in fixed assets ---- ----

 Payment for machinery (63750000) (62475000)

net cash generated/used from investing activities (63750000) (62475000)

Cash Flow from Financing Activities

Addition to long term borrowings ---- 500000

Inc/decrease in short terms borrowings ---- (50000)

 

net cash used/generated from financing activities ----- 450000

net increase/decrease in cash 31200 268000

cash at the beginning of the year 1268800 1300000

cash at the end of year 1300000 1568000

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NEW TECH ENTERPRISES

statement of changes in equity 

issued paid up capital

capital reserves

revenue reserves Total

         Balances at the end of period 2010 5000000 500000 1300000 6800000                  Balances at the end of 2011 5000000 500000 1500000 7000000         

NEW TECH ENTERPRISESACCOUNTING RATIOS

 2010 2011  2012 

Efficiency ratios  total asset turnover   6.39 6.00 5.95inventory turnover   7.0 6.8   6.5average collection period   6 8 10days sales in inventory     4 6   9         

Profitability ratios        Gross margin   10.2 9.90 9.60operating profit margin   8.0 7.80 7.20net profit margin   9.8 9.50 9.00return on assets   6.0 5.60 5.18return on equity   8.0 7.30 7.0

Leverage ratio        long term debt ratio 2.9 2.5 2.0long term debt equity ratio 4.55 4.0 3.8total debt ratio 2.51 2.7 2.8times interest earned 4.65 4.0 3.90       

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Break even Analysis

Our price of a single machine is Rs 1600000 a competitive pricing

strategy. And we have a fixed costs Rs 360000 that will remain constant

whatever the number of machines sell: To sell this machines we need Rs

100000 variable cost in labor and raw material. To recover your fixed costs

without making any profit you have to make a sale in amount:

Fixed costs (360000)/Selling price(1600000)-Variable costs(100000)= Rs

2600000 aprox

So as we have one machine price is Rs 1600000 so we have to sale two

machines in one month to survive

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Harvesting StrategyHarvest Strategy and Controls

The following will enable us to keep on track. If we fail in any of these areas, we will need to re-evaluate our business model:

Month-to-month annual comparisons indicate an increase of 14.1% or greater.

Do not depend on the credit line to meet cash requirements.

Continue to pay down the credit line at a minimum as possible.

Maintaining Gross profit at least from 80% 90%.

ImplementationWe will manage implementation by having a weekly milestones meeting with the entire staff to make sure that we are on track with our milestones and re-adjust our goals as we gather new data.

Once a quarter, we will review the milestones achieved, financial and estimated expanses to ensure that we stay focused on our business objectives and that we are not distracted by opportunities simply because they are different than what we are currently pursuing.

Contingency Planning

In the event that the business has a slower start-up than anticipated, expenses may be reduced as follows:

We may work up to two years and the directors will have to take only 50% of their share of profit .

We may reduce our profit margins. We may start reducing our extra marketing expenses. We may reduce our human resource to become cost effective.

These quantified savings can reduce operating expenses and more viable position that would pave our ways towards success as soon as possible.

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Appendix

48

Following are some of the Creative work done by CNC engraver machines

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Ch Lal Din house# P-91Street# 5 Rabany Colony Faisalabad

House ph: 041 8716089 Date of Birth 25/11/1982 Mob: 0321 7696911 NID# 33100-6374968-9 E-Mail: zoonpower@hotmail.com

Muhammad Sajid

Objective To contribute outstanding technical, managerial as well as communicational skills and strong commitment to achieving your company’s goals.

Experience 2008–2009 Pakistan college D-ground FaisalabadVisiting Lecturer

Major IT subjects.

Human Resource Management

Financial Accounting

Business communication

2007–2008 Lingua Home linguistic institute DHA Lahore

Lecturer (6:00 pm to 9:00 pm)

English Spoken classes.

Being teacher I have the ability to use clear communication techniques and to create a happy, caring and stimulating learning environment.

Excellent written and verbal communication skills with the ability to Conway subject material in an accessible and compelling manner.

Strong leadership qualities and the ability to manage challenging behavior calmly and effectively.

The ability to establish positive relationship with fellow professionals and parents.

2006–2008 Raja Jee Associates Y-Block DHA Lahore

IT coordinator and sale Representative (9:00 am to 5:00 pm)

Manage all the data regarding different Land and properties in a uniform way by using real estate data management software tool.

Evaluation of different land and properties.

Being representative dealing with other companies.

Demonstrate company’s current project to the out side world.

Made transactions worth of Rs 80 millions/ year by selling different DHA plots and files.

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2005–2006 AK Exports(Pvt)Ltd. West canal road FaisalabadManager Information system

Manage all computers of the company ,work as a troubleshooter and problem solver and maintain all the local aria network.

2004 – 2005 GC university Faisalabad

Teacher Assistant

Arrange classes and conduct assignments.

Working on university’s current projects

Project demonstrator

Profile

Education

Highly motivated, customer focused performer who is committed to quality in every pressure and thrives on challenge.

Excellent communicator and a good listener. Enthusiastic learner who quickly grasps concepts and technical skills.

Date Degree Institute Grad/Division

2008– May 2010 ( MBA ) University of Agriculture Fsd continue...

2001 - 2005 BS(CS) GC university Faisalabad 3.17

1999 - 2001 ICS Govt. college Faisalabad 2nd division

1998- 1999 Matric(science) Oxford Cadet School 1st division

Technical Skills

Team Work

Interests

Certification Operating System / S.W Applications.

Networking Windows Internet Explorer

98/2000/XP Mozilla

MS Word Open Office , SPSS

FOSSAC 2005 MS Excel C++

Administration MS Office VB.Net

Open source SQL server Java

Software Red Hat 8,9(Linux) DB2

I am equally happy working in a team as to on my own. I have worked individually creating budgets, establishing strategy and analyzing data

Management , Communication , Representation and information technology.

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Samreen khalid 

Home Address:176 C GULBERG Colony.

Fathers Name:

Imtiaz Ali

Email: sana_imtiaz@yahoo.com

Tel: 041-0000000

Date of birth: 11 Nov 1987

Permanent Address: SAME

Mobile: 0300-6547838

Nationality: Pakistani

EDUCATION AND QUALIFICATIONS

Masters in Business Administration 2008 – to date University of Agriculture, Faisalabad

B.Com 2006 - 2008University of Punjab

Marks obtained1086/1500, 70%

OTHER SKILLS

MS Word

Ms Excel

ACTIVITIES AND INTERESTS Study Current Affairs Reading books Listening music Net browsing

REFEREES  Reference will be provided on requests.

NAILA TABASSUM

OBJECTIVE:

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To work in a challenging and growing organization to make full use of capabilities and the professional skills to grow in hierarchy of organization.

PROFILE:Name: Naila TabassumFather’s name: M.AsalmDate of birth: 06-9-1987N.I.C # 33100-015625-2Religion: IslamMarital status: singleDomicile: fsdNationality: PakistanLanguage: Urdu, Punjabi, EnglishContact # 0301-7854565Address house # 57, jranwala road, fsd

PROFESSIONAL QUALIFICATION:

MBA finance (to date)From: agriculture university of, Faisalabad Final semester

B.COM (2008)From: university of PunjabDivision: 1st

FSC (2006)From: B.I.S.EGrade: B

MATRIC (2004)From: B.I.S.EGrade: A+

INTERESTS AND SKILLS:

Browsing cooking

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MUHAMMAD SHAHNAWAZ House # 323 (P-1), Kaleem Shaheed Colony, Near Iqbal Hospital, Faisalabad

MSN_engr@yahoo.com

Cell # 0300-7900781

OBJECTIVE:

To be responsible member of an Organization’s team where my qualification and

experience can have a measurable & valuable contribution towards and achievement of

ultimate objective and task assigned.

PERSONAL INFORMATION:

Father’s Name : Nazir Ahmad

Date of Birth : 2nd Day of March 1983

N.I.C. # : 33100-4719646-3

Domicile : Faisalabad (Punjab)

Nationality : Pakistani

Marital Status : Single

PROFESSIONAL EXPERIENCE:

24 May 2008 to Date Water and Sanitation Agency, FDA, Faisalabad Working as SUB ENGINEER in Planning & Designing Directorates at WASA, FDA, Faisalabad

01 September 2007 to 22 May 2008Govt. College University, Faisalabad Worked as sub Engineer B/R (Building and Road) at Govt. College University, Faisalabad.

01 January 2007 to 23 August 2007Punjab Rural Support Program (PRSP) Faisalabad Worked as Field Engineer in the School Council Program under the Punjab Rural Support Program (PRSP), Faisalabad

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30 January 2006 to 28 December 2006Agricultural Department (On Farm Water Management) Faisalabad Worked as Sub Engineer in the Agricultural Department (On Farm Water Management, Faisalabad)

PROFESSIONAL TRAINING:

01 July to 15 July 2008Water and Sanitation Agency, FDA, Faisalabad Two weeks Training on “Geographical Information System” (GIS) at Water and Sanitation Agency, FDA, Faisalabad.

30 January 2006 to 11 March 2006Water Management Research center University of Agriculture, Faisalabad Four Weeks Training Course on “Water Course Improvement and Construction” at Water Management Research Center, University of Agriculture, Faisalabad

PROFESSIONAL QUALIFICATION:

Auto CAD (2003) From: Punjab Board of Technical Education, Lahore Grade: A+

Material Technician (2006)From: Punjab Board of Technical Education, Lahore Grade: A+

EDUCATION:

MBA Final Semester (Continued) From : University of Agriculture, Faisalabad

Bachelors of Technology (Civil) 2008From : UET LahoreDivision : 1st

Bachelors of Arts (B.A.) 2007From : Punjab University, LahoreDivision : 2nd

F.A. (2004)From : BISE,Faisalabad Division : 2nd

3-Years Diploma of Associate Engineering (Civil) (2003)From : Punjab Board of Technical Education, Lahore Division : 2nd

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Matriculation (1999)From : BISE,Sargodha Division : 2nd

INTERESTS AND SKILLS: Brief description of my skills in computer field includes;

Management AutoCAD (2D & 3D) Communication Internet

RESUME

CAREER GOAL

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A management position where education and experience combine with positive interpersonal skills initiative and capacity to motivate others can be utilized for mutual benefits.

PROFILE Skilled in applying a logical common sense approach to seek practical solutions A self motivated, possessing a high degree of professional integrity

PERSONAL INFORMATION

NAME Samreen Khalid DATE OF BIRTH 06-01-1989GENDER FemaleADDRESS Colony Sapphire Fibres LTD. No. 3, Ferozewattoan, Distt. SheikhupuraRELEGION IslamNIC NO. 35404-7489590-0

Degree/Qualification Year University/Board Division/grade

Main subjects

MBA(Finance)4th (Last) Semester continue.

2010 Agriculture University Faisalabad

Continue Finance,

B.COM 2008 Punjab University Lahore 1st Division Accounting

FSC 2006 Lahore Board !st Division Pre medicalMatriculation 2004 Lahore Board 1st Division Science

ACADEMIC QUALIFICATIONWORK EXPERIENCE 2 Months Internship program In FAYSAL BANK LIMITED Faisalabad.PROJECTS DONE

Financial statement analysis of Textile Company (Sapphire Fibre Limited)

SKILLS Good communication Skills Good typing Speed MS Word, Excel, Power Point and SPSS

HOBBIES & INTEREST Reading books on different topics Internet surfing REFERENCES

References will be available on request…..

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RESUME

CAREER GOAL A management position where education and experience combine with positive interpersonal skills initiative and capacity to motivate others can be utilized for mutual benefits.

PROFILE Skilled in applying a logical common sense approach to seek practical solutions A self motivated, possessing a high degree of professional integrity

PERSONAL INFORMATION

NAME Samreen Khalid DATE OF BIRTH 06-01-1989GENDER FemaleADDRESS Colony Sapphire Fibres LTD. No. 3, Ferozewattoan, Distt. SheikhupuraRELEGION IslamNIC NO. 35404-7489590-0

Degree/Qualification Year University/Board Division/grade

Main subjects

MBA(Finance)4th (Last) Semester continue.

2010 Agriculture University Faisalabad

Continue Finance,

B.COM 2008 Punjab University Lahore 1st Division Accounting

FSC 2006 Lahore Board !st Division Pre medicalMatriculation 2004 Lahore Board 1st Division Science

ACADEMIC QUALIFICATIONWORK EXPERIENCE 2 Months Internship program In FAYSAL BANK LIMITED Faisalabad.PROJECTS DONE

Financial statement analysis of Textile Company (Sapphire Fibre Limited)

SKILLS Good communication Skills Good typing Speed MS Word, Excel, Power Point and SPSS

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HOBBIES & INTEREST Reading books on different topics Internet surfing

REFERENCES References will be available on request…..

Maira Gull

OBJECTIVE:

To work in a challenging and growing organization to make full use of capabilities and the professional skills to grow in hierarchy of organization.

PROFILE:Name: Maira Gull Father’s name: Khawaja Amjad Gull SikkaDate of birth: 25 jan,1988N.I.C # Religion: IslamMarital status: singleDomicile: fsdNationality: PakistanLanguage: UrduContact # Address: peoples colony no 1,fsd House #32-C

PROFESSIONAL QUALIFICATION:

MBA finance (to date)From: agriculture university of, Faisalabad Final semester

B.COM (2008)From: university of PunjabDivision: 1st

59

I.COM (2006)From: B.I.S.EGrade: A

MATRIC (2004)From: B.I.S.EGrade: A

INTERESTS AND SKILLS:

Browsing Reading Web development Microsoft office XP

60