Declaration:

We hereby declare that the class project “Pre-Fab

Houses” submitted under the course title Entrepreneurship

(MG-550) is purely original team work done under the

guidance of Mr. Manqoosh-ur-Rehman, lecturer at School of

Business and Economics at University of Management and

Technology.

This project is submitted as the class final project

requirement and has been solely produced and compiled by

group members.

• Mr. Mubin Tariq 073605-038

• Mr. Faiq Ali 073605-

118

• Mr. Usman Khan 073605-

133

• Mr. Hasib ur Rehman 073605-156

• Mr. Tahir Saeed 073605-164

 Executive Summary
This project has been conducted in order to launch a new business
plan. We are going to launch 2D solar cabinet; this is an innovative product
with unique features.

After having a critical external analysis of the industry, PEST and

Porter, we came to the conclusion that there is a large gap in this industry
and thus there exist a scope for the new product. After identifying the GAPs
we are going to launch our product.

We are going to give 2-D solar cabinet in the market; this is a portable
refrigerator which will cool and warm the food, water, milk etc according to
the desired need.

Our company is a newly launched business; we are five partners and

are going to work as a private limited company. All partners are contributing
equally as an investment in our company and profit and loss will be shared.
The company’s rules and regulations are already written and initially we are
going to work as a team.

The growth of our business depends upon the growth of electronic

industry in Pakistan. The past records show that the industry is highly
potential and has a good growth scope.

The project also contains a complete detail about the working of the
product, as well as the company. Complete marketing details are also given
in this project. The report includes HR, Marketing, Finance and Operational
details for the firm.
Section II:

Business Description:

Form of Business:
Our business is based upon Partnership. We are five partners in this
business and we equally share all the benefits and loss of business.

Owners/Principals:
We are going to start a new business and introduce a product which is
very new for Pakistan’s electronic market. Because the business which we
are going to introduces require very huge amount of capital for this purpose
we decided to start a joint business among five partners. Partners are:

• Mr. Tahir Saeed

• Mr. Hasib ur Rehman

• Mr. Faiq Ali

• Mr. Mubeen Tariq

• Mr. Muhammad Usman Javaid Khan

Name of Business:
The name of our business/ company is “Star Tech”. The basic reason
behind this name, we all five having so much trust upon one another and
fully coordinated and joint like the five corners of the star.

Business Description:
Our business is related to 2D solar cabinet (joint form of fridge and
oven) assembling. After analyzing the electronic market of Pakistan we came
up with the conclusion that there is a big opportunity for the new kind of
product which we are going to introduce. The growth of our business
depends upon the growth of fridge and oven industry in Pakistan. The past
record shows that the industry is highly potential and has a good growth
scope. The scale and the need of fridge and ovens are continuously
increasing day by day and it provides a great opportunity to introduce and
startup a new business.

In our business we come up with a product that is different and unique

and will provide ease to family households, business Personnel and most
importantly passengers who going outside the city or and the people who
want to go somewhere for picnic and spending holidays (within or outside the
city).

Product Description:
Name of Product: 2D solar cabinet.
Company Name: Star tech.
• Color, gray, blue

• Voltage 12v

• Capacity 6.litre (4, 1.5 litre bottles)

• Multifunctional, durable, daily used, medical, restaurant, outdoor,

fishing cooler

• Different size and design available in future

• Cooling performance range is 5°C to 10 °C and warming range is 40°C

to 50°C.

• Quantity 1 piece in a Carton

• Weight 6 kg

• Solar panel18 inches in length and 12 inch in width

• 12v Battery

• 1 Controller its Basic function is to control the solar energy and charge
the battery, after the battery is charged it will give power to the box

• 2 Buttons are placed to the left of the box from which we can cool and
warm the box according to the requirement

• The length of the box is 15 inches, width 12 inches and height is 16

inches

Gap Identification:
 As we all know this is the era of globalization and information
technology. Everyone in this world wants to upgrade itself either it’s a
country or an individual. Almost in every kind of market innovative products
introduced very rapidly and we all know that electronic market is one of the
most inconsistent market of this world. In this kind of market technology can
change on daily basis.

Likewise other countries the electronic market of Pakistan also consist

of very high technological products. After analyzing different markets we find
a great gap and high potential growth in electronic market and finalize our
product which is related with this market.

Another or we can say the most important gap we find in this industry
is energy crisis problem. Almost all the products of electronic industry fully
dependent upon electricity and Pakistan is facing very bad energy crisis
these days. So without or shortage of electricity all such products are
useless.

Then we decided why don’t introduce such kind of product in this

industry that is not depend upon the electricity and it also gives so much
convenience and ease to people on different times. Market forces are weak
and in this situation even a little innovation can capture a large market
share. The basic benefit of this industry is a heterogeneous product with very
rapid development. This industry has a great room for such kind of
innovations.

Section III:

Marketing Research & Analysis:

Industry Analysis:
Electronic industry of Pakistan is having so much potential and
acceptance for new businesses, innovative ideas and advanced technology.
Today everyone wants convenience, ease, luxury, up to date technology for
his psychological satisfaction. Most of the products of this industry fulfill their
wants and make them satisfied to some extent. As we mention earlier
likewise other industries this industry is also having so many Gaps. In this
regard the gap which we targeted is, almost all the product of electronic
industry fully dependent upon electricity and Pakistan is facing very bad
energy crisis these days. So without or shortage of electricity all such
products are useless. Then we decided why don’t introduce such kind of
product in this industry that is not depend upon the electricity and it also
gives so much convenience and ease to people on different times.

Porter’s Model:
Porter five forces model is an extremely useful model to analyze the
outer environment for any strategic analysis. This model takes into account
all the five major forces of the market and thus suggest a way to analyze the
current situation of the industry. Porter five forces model in this scenario is
given as:

Buyers

Suppliers Competition Substitute

 New Entry
Supplier:
If we analyze the current market situation of Pakistan the suppliers of any market have
very minimum local resources. Most of the suppliers import the end products from China and
sale it here in Pakistan. In case of our product some manufacturers have the resources to
manufacture such kind of products locally like at Hall Road we have found very large number of
vendors who manufacture and supply such product at the same time. There is no concept of
backward integration in this industry so far.

Substitute:
Because this product is very new for Pakistan’s electronics market so
there is no near of we can say that direct substitute of our product. Another
unique characteristic of this product it is not dependent upon the electricity
which makes it more beneficial in current situation of Pakistan. 2D Solar
Cabinet having the characteristics of both fridge and oven, as we all know
there are numbers of varieties are available in fridge and ovens but each of
them is used for one specified purpose. Fridge is available for cooling
purpose and keeps our food, milk and beverages fresh and nutritionist for the
long period of time and ovens being used to make our food hot within few
minutes.

Buyer:
Due to the beneficial and convenient nature of the product, the buyer
shows subsequent amount of involvement in this product. As we all know
energy crisis is one of the major issue in Pakistan and at the same time we
gives our buyers a product which is not dependable on electricity so this
unique feature capture so much interest of our buyers towards our product.
On the other hand buyers switching cost is very high and most of time sales
have made on the basis of sensitivity of price and little know how about the
product.

New Entry:
 There is no kind of entry barrier in this market and this product follows
all the legal rules and regulations which are imposed by the government. The
market has substantial space for these kinds of innovative and unique ideas.
To enter in market and exit from this market is very easy and no restrictions
are imposed by any governmental department in this regard. This market
has lots of opportunities to grow for new businesses or risk takers within it.

PEST Analysis:
PEST analysis gives us the information about four major dimensions of
any country’s external environment. PEST is the abbreviation of Political,
Economical, Social and Technological factors. PEST analysis gives us very
important information to understand the economical, political, social and
technological structure of any country. It gives very authentic information
regarding business opportunities and growth. It also gives subsequent
information for all local and foreign investor either they invest in that
particular country or not. Our product is directly related with the
technological structure of Pakistan’s electronics market.

Political:
In political we have threat of VAT (value added tax). If this VAT is
approved by the government it will negatively impact our business. As we
know, political instability is there in Pakistan now days. Another political
threat that may happen is the policies such as: import quotas, import tariffs
and increase in custom duties.

Economical:
The economic situation of Pakistan is not very favorable. Increasing
inflation rate, increasing unemployment, collapsing stock market and other
unfavorable economic issues have made the situation disastrous. Some
findings of economical draw backs are given below:

• Inflation rate has raise from 9.31% to 25% in the last year.

• Unemployment rate has increased up to 8.5% from its previous rate of

7.5%.

• More than 24% of the country population is below poverty line.

 • The stock market has badly collapsed in the last few months due to
uncertain political conditions of the country.

• The Pakistan rupee has fallen to a record low price.

• Industries of the country are at the edge of being shut down, due to
very high cost of production. The intense short fall of electricity has
doubled the cost of production and has made the situation even worst.

Social:
Consumer perception and life style are changing rapidly. The
advancement of technology and the wide spread of media has captured the
mind of the people to a great extent. Man has becoming more and more
social and technology oriented.

Technological:
In Pakistan the technology, which are using in home appliances these
days is very advanced and meet the international standards. Even now the
local companies of Pakistan like Waves, Dawlance, PEL etc produces
products which are advanced technological oriented and gives very strong
competition to international brands products like Phillips, LG, Mitsubishi etc.

To keep in mind this technological advancement we introduced a

product which is also high technological oriented and having so much
potential to capture the big market share with in very short time.

Now, world moves forward to find out some alternatives of electricity

and used these alternatives in their products. The beneficial and applicable
sources of energy are biogas, coal energy, wind energy and solar energy etc.
In past few years’ very huge advancement have seen in technological field.
By using the latest trend of technology we introduce such product which is
not dependable upon electricity. We have used solar energy in our product
and this unique feature very suitable with the weather conditions of Pakistan.
As we all know the temperature of Pakistan quite hot for 7 to 8 months and it
temperature ranges between 30 to 45 degree Celsius. This kind of weather
condition also supported our product in a positive way.

SWOT Analysis:

External Threats:
 • High interest rates

• Unstable Political and Economical situation of Pakistan.

• Pathetic law and order situation.

• High inflation rate

External Opportunities:
• Huge amount of picnic spots in lahore i.e. Changa Manga, Jhallo More,
wild life park, and Safari Park etc.

• People are willing to pay more for their convenience.

• Expansion in other cities.

• Because of rising education rate, people are becoming more

innovators.

• In these days Pakistan faces problems regarding energy crisis and our
product not depend upon the electricity. It is very big opportunity for
our product to grow.

Internal Strengths:
• Unique product for Pakistan’s electronic market.

• Not dependable upon electricity.

• Portable

• Using solar energy

o All the parts which being used in making of product easily

available.

Internal Weakness:
• High dependence on revenue.

• Not so much convenient in rainy season.

• Unknown Customer Demand

 • Marketing Research Problem

Key Success Factors (KSF’s):

The factors which are very important for new businesses like us to get rapid
success in electronic industry are given below:

• Marketing is very important factor to get success in this industry.

Especially the companies like us (Star Tech) who first time enters in
this industry and also introduces innovative product so it’s very
important for such companies to market its product in an efficient way.
If company markets its product properly in order to get complete
attention of its target market so it will very help full to increases the
growth of sales.

• Introduce such products that have advanced technology according to

the trend is also very important factor to get success in electronic
industry.

• Quickly incorporate with new technologies and optimize operations.

• Deliveries of products on time and cost controlled schedules are also

important factors.

• Negotiate with big dealers and sell your product through them is
another important factor to increases the sales of the company.

• Minimize the inventory handling cost in order to use some efficient

techniques.

• Maintain continuous, high-quality manufacturing and service

operations.

• Purchasing of Raw Material on competitive or low price.

• Making good relationship with suppliers.

IFE/ EFE Matrix:

Internal Factor Evaluation:
Internal Factor of Evaluation or IFE matrix is an important strategic tool
to evaluate major strengths and weaknesses in functional areas of a
business. Management of the organizations used these tools to list down all
the internal strengths and weaknesses of the organization in order to make
useful strategic plans. Management of the organization has given weight to
all these factors according to their importance.

Weig Ratin Weighted

Internal Strengths ht g Score
Sole Manufacturer in
3
the market 12% 0.25
Portability 12% 3 0.38
Economical Price 10% 3 0.43
Uniqueness 12% 4 0.44
No Electricity
4
Consumption 7% 0.57
Trust among Partners 7% 3 0.43
Close Proximity to
3
Suppliers 8% 0.30
Internal Weaknesses
Highly Dependable
2
upon Sales 7% 0.29
Limited Resources 8% 1 0.13
Limited Suppliers 5% 1 0.20
Market Research
1
Problem 6% 0.17
Rented Property 6% 1 0.11
Total Weighted Score 100% 3.69
External Factors of Evaluation:
External Factor Evaluation (EFE) matrix method is a strategic-
management tool often used for assessment of current business conditions.
The EFE matrix is a good tool to visualize and prioritize the opportunities and
threats that a business is facing.

Weig Ratin Weighted

Opportunities ht g Score
Expansion 12% 3 0.25
Technology 10% 4 0.40
Minimization of cost 6% 3 0.50
Optimize Production 9% 3 0.33
Picnic Spot 11% 4 0.36
Energy Crises 10% 3 0.30
Threats
Economic Downfall 5% 1 0.20
Unstable Political
1
Situation 6% 0.17
 Entrance of New
1
Competitors 8% 0.13
Tax 10% 2 0.20
Interest Rate 7% 1 0.14
Huge amount of
1
Substitute 6% 0.17
Total Weighted Score 100% 3.15
Poor (1), below average (2), above average (3), Superior (4)

Market Size and Trends:

The market size which we target for our product is big and also has so
much potential within it. We divided our target market size in different
categories i.e.

• Households

• Business Personnel

• Passengers

• Students

• Architectures

• Engineers

• Doctors etc

As we mention earlier our product 2D Solar Cabinet has some features

which are very similar to fridge and ovens. Therefore we consider some
companies both local and multinational who manufacture freezer and ovens
and we consider them as our indirect competitors. To analyze the trend of
this industry we have taken past five years data of these companies. We
conclude the end result on the basis of their per year units of production and
per year units sold.

As our product first time introduced in Pakistan’s electronic industry for

this reason we haven’t find any direct competitor regarding our product. But
for analyzing the trend of electronic market we have taken the past 5 years
sales of different electronic companies both local and multinational. We have
taken the sales of PEL, LG, and Philips etc because sales of these companies
tell us about the trend of electronic industry or we can say either people are
really willing to purchase such electronic products or not.
 LG
PEL
Years Total Sales
2005-06 8075382
23,774,151
2006-07 11042160
23,170,719
2007-08 13077670
23,501,935
2008-09 13926572
23,901,672
2009-10 16117524
30,513,436

The table which is given above collectively tells us about the past five
year sales of PEL electronics in Pakistan’s different cities including Lahore
which is our target city. According to the table in year 2005-06 the total sales
of PEL in Pakistan’s different cities were about Rs. 8075382. Then in year
2006-07 this amount gradually increased up to Rs.11042160. in year 2007-
08 we have seen more growth and the totals sales of PEL reached up to
Rs.13077670. in 2008-09 the total sales of company was slightly increased
up to Rs.13926572 and we have seen in table in 2009-10 this amount
increased more rapidly as compared to past two years. In this year the total
sales of the company was raised up to Rs. 16117524. To understand more
clearly we have seen the trend line of total sales of PEL is continuously grow
up ward which means people of Pakistan are willing to buy different kinds of
electronic instruments for their domestic and for commercial use as well.
 The table which is given above tells us very briefly about the past five
year sales of LG electronics in not even in Pakistan but other countries as
well. In these total sales LG earned a substantial part of its sales from
Pakistan. From year 2005 -2008 the total sales of LG electronics were grow
very consistent in a straight line. Then in 2009-10 they have faced very huge
change and their total sales increased from $23901672 to $30,513,436. This
was the very massive change which they have seen from past five years.
This sudden change tells us about that the trend of purchasing such
electronics goods increasing very rapidly as compared to previous years. This
change in trend will also very helpful in order to grow of our product.

Philips
Years Total Sales
2005-06 25,445,000
2006-07 26,682,496
2007-08 26,793,000
2008-09 21,638,596
2009-10 23,189,236

We have also taken total sales of Philips to understand the trend in a

better way. The table which is given above has taken sales of Philips in Asia
in which Pakistan contribute an important part of their total earning. In 2005-
06 the total sales of Philips was Rs. 25445000 then this ratio was increased
in 2006-07 when sales grown upward direction and the total collection of
sales in that year was 26,682,496. In next year the amount of sales were
slightly increased up to Rs. 26,793,000 then in very next year in 2008-09 this
ratio fell down up to 21,638,596 due to some economical crisis in Asian
countries especially in Pakistan but last year sales again raised in upward
direction and the collection of last year sales were 23,189,236 which was
quite better then the last year.

Growth Potential:
We have planned to grow our business; in this regard our all partners and
employees align with the mission of our business and develop strategies in
order to expand our business all over the Pakistan.

As we mention earlier we introduced this kind of product “2D Solar

Cabinet” for very first time in Pakistan’s market, and the unique
characteristics of our product it is not dependable upon the electricity but
using the solar energy which directly come from the sun with the help of
solar panel which is placed at the top of 2D Solar Cabinet. It’s also very
convenient and easy to carry this cabinet from one place to another single
handed. Our product also has the ability to keep cool water and beverages
and make the food hot and ready to eat within few minutes according to the
demand of user. All these unique feature of our product have so much
potential to grow in Pakistan’s electronic market.

We also make some long term strategies (5 years) in order to grow the
products of our company in an effective and efficient way.

• We plan to introduce some more unique products in near future.

• We also plan to capture 15% - 20% market share of electronic industry.

• Expand our business in all the major cities of Pakistan.

• Export our product to Bangladesh & Iran.

• Registered our business in Lahore Stock exchange (LSE) and Karachi

stock Exchange (KSE).

Barriers to Growth:
The electronic market of Pakistan has so many opportunities within it
for new businesses. This market has very subsequent space to accept new
ideas and technologies, but on the other hand it also carries so many barriers
which create hurdles in the success of business. As we all know from last few
years the financial system of Pakistan collapse very badly and the worth of
Pakistan’s currency declined day by day.

Most of the businesses import cheap raw material from countries like
China, India, Iran, Afghanistan, so some time they face import restriction
which are imposed by the government.

Energy crisis create another hurdle for manufacturing businesses in

Pakistan. It might be possible some of our competitors come up with more
advance product and create problem in the way of our company’s product
growth.

As we all know electronic product are so much price sensitive, so it

might be possible someone offers same product at very low price as
compared to us in near future. Unstable political situation, bad law and order
situation, infrastructure problems are big hurdles for FDI (foreign direct
investment) in Pakistan.

Competitors Analysis:
There is no direct competitor of our product as we are going to
introduce this product for very first time in Pakistan. In electronic industry
there is very huge number of competitors who made the products which are
highly related with each other. In case of our business we are not facing any
direct competitor but having very huge number of indirect competitors and
substitutes.

• Indirect Competitors:

o In Pakistan so much local companies like Dawlance, Waves, PEL

etc and foreign companies like LG, Philips, Haier, Mitsubishi etc
produces good quality and high variety of fridges, ovens and
other home appliances.

• Substitutes:

o Thermos, jugs, Bottles, ice box, microwave ovens, room fridge

are very closely substitutes of our product

Market Strategy:
Market strategy is a process that allows company to make such
strategies that are helpful to increase company’s sales by using its limited
resources. Market strategy is also very important in order to achieve a
sustainable competitive advantage.

Market strategy is very important for small businesses like us (Star

Tech) to reach and capture maximum audience with in a very short period of
time and also using limited resources. In our marketing strategy we combine
different techniques like Market Segmentation, Target Market Selection and
Description, Product Description (Value Proposition & USP), Pricing Strategy,
Sales & Distribution Strategy and Advertising & Promotions Strategy in order
to capture our target market.

“The Key concept of Star Tech’s Market Strategy is to get the complete attention of
Target Market”

Market Segmentation:
When we talks about market segmentation its means divide the market
in terms of its demographic factors, geographic factors, psychographic,
preferences for specific end benefit and media graphics etc.

The Main target of our product “2D Solar Cabinet” including family
households most importantly passengers and the people who want to
somewhere for picnic within or outside the city. In households we targeted
married couples, bachelors, students, business Personnel etc. We haven’t
targeted any particular age group people but all the people who aged among
25-60 or more.

Demographic Factors:
In Demographic segmentation market of “2D Solar Panel” can be
divided in the following categories.

Age Above 20, 21-30, 31-40, 41-50, 51-55 or more

Gender Male, Female
Income Above 20,000, 20,000-30,000, 30,000-40,000 or more
Occupat Households, Business Personnel, Students, Teachers, Doctors,
ion Engineers etc
Geographic Factors:
In geographic segmentation, market can be divided into following
categories:

World
Region Asia
Country Pakistan
All major cities of Pakistan (Currently
Cities Lahore)

Psychographic:
As we all know human’s life style, their need, and his way of thinking
continuously changed. Due to this rapid change their definition regarding
luxury, convenience and ease are also changed. All these changes directly
related with business strategies and force them to introduce something new
and unique. We targeted the upper middle class, middle class and elite class
households. Majority of people of these groups are so much sensitive about
new trend, innovations and ease. In this regard our product having almost all
these characteristics which influence these people.

Preferences for Specific End Benefits:

As we all know electricity crisis is the major problem that Pakistan has
faced these in these days. Very huge population of Pakistan wants to have
some product which is not dependable on electricity and give them
maximum convenience and ease. Due to this reason we are very much sure
people prefer our product for the following specific end benefits.

• Occasion Picnics, Marriages, Parties & others.

• User status Regular users, Potential users.

Media graphics:
• All famous T.V channels (Initially City 42)

• Radio Channels (Fm 103, Fm 91, Fm 106.2)

• Best selling Newspapers (The News, Jang)

 • Bill boards & Hoardings

Target Market Selection & Description:

We are targeting the people who associated with middle class, upper
middle class and elite class groups and using fridge and ovens on daily basis
like family households, business Personnel, passengers, students (who living
in hostels), people who going somewhere for picnic within or outside the
city. Our target customer is passengers. The basic reason to focusing or
targeting passengers is their usage patterns and requirement because such
kind of product give them so much ease to keep their water, beverages, ice
cubes and food hot and cold as per demand and requirement. We are also
targeted sales man of different multinational companies like Pepsi Co,
Cocacola Company, and Nestle etc.

Today households want to be different; they are fun loving and want to
enjoy every moment of their life. Technology makes our lives very
comfortable and everyone in this world ready to pay for their ease, pleasure
and satisfaction.

Product Description (Value Proposition):

The uniqueness in our product is that we are offering the features of
fridge and ovens together. Another very important feature of our product is,
it is not depending upon the electricity. People (especially women) can carry
this product very easily. Our product offers another unique characteristic to
keep food, water, beverages, ice cubes, milk etc fresh, warm and cold as per
demand and need. The concept of solar panel highly differentiates our
product from traditional fridges and ovens. The essential key success factors
are Innovation and Uniqueness in the product.

Unique Selling Point (USP):

• A totally new product

• A very unique combination of two different dimensions (Cold and Hot)

• No electricity consumption

• Using solar energy

• Good promotional activities

 • Strong Research & Development

Pricing Strategy:
Although our product is very unique and nobody is offering this kind of
unique features in fridge and ovens but still we can’t charge as much as we
want to our customers, because we are just starting a new business and at
the moment our brand is no well known furthermore the per capita income is
not that much in Pakistan and people feel a bit reluctant in spending money.

We used Market penetration as our pricing strategy at the beginning.

And will easily Charge a high price later because we will have a substantial
competitive advantage.

Rate Per
Particulars Unit
Box 5000
Solar Panel 1500
Controller 1000
Battery 1000
Total 8500
Others 500
Total Cost 9000
Selling
Price 15000

We are selling our product at a very low price because it is the new
product of its kind so in order to enter in the market successfully we are
using penetration strategy for our pricing.

Sales & Distributions Strategy:

Sales are the most important factor in any kind of business because only
sales tell us either the business exists in future or not. Likewise sales, strong
and effective distribution channel is also very important element in business
success. If you have huge number of customers but your distribution channel
is not very effective so you lose both customer and his believe which is
directly associated with its need.

• We placed our product’s banners, posters in very famous electronic

stores of Lahore most busy electronic markets like Abid Market, Hall
 Road and Township Market etc to reach our target customer which is
directly related our sales growth.

• To increase our sales we also place our product (2D Solar Cabinet) in
very famous retail and whole sale stores and plazas of Lahore like
Makro, Metro, Pace, Siddique Trade Center etc.

Distribution:
The product which we made for the convenience and ease of our target
customers is available by using multiple channels of distribution. We have
planned to distribute 2D solar cabinet through our outlet at Abid Market and
through the big dealers of electronic appliances of Lahore city.We have used
selective distribution strategy. As we mention earlier our product targeting
the middle class and elite class group it means it is selective for only two
classes. So we only distributed our product in some selective and well known
electronic stores of Lahore.

Distribution Channel:
We have used private channel and deliver our product to our own
outlet in Abid Market and some selective dealers and retail and wholesale
store of Lahore. We have used channel for distribution of “2D Solar Cabinet”
which is given below. Since timely distributing of product is the basic
requirement to promote sales and get confidence of retailers. We not only
distribute our product to retailers but also maintaining an effective
communication with our retailers. We also get feedback from our retailers on
monthly basis about the complaints regarding our product, pricing issues,
quality and distribution of our product.

Assemblers Outlet & Dealers Customers

Assembling:

In distribution channel the first step is to assemble the all parts of the
product in companies’ warehouse.
Outlets & other Dealers:

Then deliver it to companies own outlet and some other famous

dealers of electronic industry where our product has placed to capture the
target market’s attention.

Customers:

After capturing the target market’s attention sell the product to the
potential buyers of target market and also getting their feedback to improve
the quality and efficiency of product.

Advertising & Promotions Strategy:

Advertising and promotional strategies are very essential element for
any kind of newly operated business either it is related with manufacturing or
service providing. Advertising and promotional strategy gives complete
introduction and description of product to general public and most
importantly to their target market. Advertising and promotions strategies
help to keep the consumers informed about whatever new products or
services are available in the market. It helps to spread awareness about
products or services that are of some use to consumer and potential buyers.

The main objectives of advertising and promotions strategies are:

• To inform, to persuade & to remind customers about your product

• Create Repeat Exposure and Continued Sales

• Widespread Name Recognition

• A single advertising campaign can create awareness, enhance brand

image & to increase sales.

Advertising:
Advertising is one of the most important things present in or society
today, like an old slogan puts it 'Advertising, your right to choose'.
Advertising consist of two types or we can say that it capture two different
form of mediums.

• Above the line advertising

 • Below the line advertising

When businesses uses public mediums to advertise their products like

Television, Billboards, Radio, Print media and internet etc so they advertise
their products through above the line advertising. Whereas when business
uses all the private mediums to communicate their target market which
includes direct calling, Fax and E-mails etc then they are using below the line
advertising.

We do advertisement and promotion to aware the potential customers

about our unique product because we believe that good marketing is
something that helps business to grow.

We also advertise our product by using both form of advertisement

medium like Television commercials; show sponsorships, Radio commercials,
Newspaper Ads, Outdoor billboards etc.

We advertise our product by using different advertisement strategies like

• Price Promotion (Discount to the normal selling price of a product).

• Point-of-sale displays at different electronics stores.

• Constantly moving Vehicles promoting our Product in big cities of

Pakistan especially in Lahore.

• Window displays of shops and stores.

• Displaying 2D solar cabinet’s theme on the shop’s name board.

Promotional Strategies:
Promotional strategies are very important to gives complete
description and unique characteristics of product to target market. We plan
to promote our 2D solar cabinet through:

• Brand endorsement through unique features.

• Ads on Cable.

• Distribute broachers on traffic signals and different electronic stores

having complete information about our product as it is more
effective and cheap way to reach our target market.
 • Distribute broachers at homes as well.

To well promote our product we are using different promotional tools

like POS material, Billboards, Broachers/ Leaflets etc. Below we give the
complete descriptions of these tools in term of per unit cost.

POS Material:

POS material mean point of sale material this will include: posters
and stickers display at some eye-catching positions in different famous
electronic stores in Hall Road, Abid Market and Township stores.

Broachers/ Leaflets:

We have had a contract with “C-Signs Advertising Company” & they

will charge us Rs-1/- for every five brochures. So initially we will order them
for 100,000 brochures and it will cost us almost Rs.20, 000/-.We distributes
these broachers all over the city (Lahore).

Section IV:

Operations:

Operational Details:
We started our operation from Hall Road because this location is
perfect for our business as we can enjoy different benefits here. We have
found almost all the particulars which are necessary for the making of our
product “2D Solar Cabinet” like solar panel, controller, battery, box etc.

Because we are the innovators of this product and first time launched
this kind of product in Pakistan’s electronic market so we haven’t available
any kind of previous data to measure and forecast the demand and trend of
market. Therefore we have taken the expertise of professionals of this field.
 In our marketing operations we hire two sales people who go to take
orders from the big retailers of Abid Market, Hall Road and Township Market
etc. We have purchased box from Mian Traders, solar panel and controller
from Shaheen Solar Traders and battery from Aftab Electric Traders for
manufacturing of 2D Solar Cabinet.

This product is first time launched in Pakistan so there is no kind of

formal machinery is available to assemble our product therefore all the
assembling process had done with hands. For that purpose we manufactured
our product from Mr. Sultan Akbar. As we mention it earlier our outlet
situated in Abid Market and distance between Hall Road and Abid Market not
too long so it helps us to minimize our transportation cost and also beneficial
for to in order to save our time.

We have two options regarding the availability of parts that are used in
our product. One option is to import all the raw material regarding our
product from china or purchased it from the local market (Hall Road) of
Lahore. Import raw material from china is costly due to high import duty
which is imposed by government as compared to purchased all the parts
locally. We have decided to go with the second option and purchased all the
parts locally and also assembled them by using local resources in order to
give customers new and quality product.

Capacity Management:
Capacity Management has contains all that activities which are related
to, the number of units a facility can hold, receive, store or produced in a
specific period of time.

Capacity Management tells us about the design and actual capacity of

the company. Companies can judge the effectiveness of its capacity planning
on the basis of its percentage of utilization and its percentage of efficiency.

Design Capacity:
Design capacity is the maximum output of the system means how
many maximum units can company has produced, hold and store by using its
given resources.

In case of our company “Star Tech” we have set our design capacity
after analyzing all given resources the maximum units which we store, hold
and produced is 425 units in a year. Its mean almost 36 units produced in a
month.

Design Capacity = 425 units/year

Effective or Actual Capacity:

Effective or Actual Capacity is the capacity a firm expects to achieve
according to current operating constraints or in other words we can say the
units which company has actually produced by using its given resources.
Effective Capacity is usually lower than the design capacity.

We have the design capacity to produced almost 625 units of 2D Solar

Cabinet in a year but according to the current situation of Pakistan we have
faced lots of problems that create hurdle for us in order to meet our design
capacity. In current situation we have facing the issue of load shading,
strikes and Absenteeism etc. therefore we are far away from our design
capacity and actually the units we produced in given situation are 225 in a
year or almost 19 units in a month.

Effective or Actual Capacity = 225 units/ year

Utilization:
The formula which we normally used to calculate the utilization of any
company, factory etc is given below:

Utilization = Effective Capacity/ Design Capacity

Utilization of Star Tech for 1st year is:

Utilization = 225/ 425

Utilization = 53%

Supply Chain Management:

The operations of supply chain starts from supplies of raw material to
delivery of finished product to customer. As the flow chart diagram which is
given below clearly shows the whole process of supply chain management
very clearly.

Dealers &
Suppliers Assemble Customers
Outlets
Star Tech also follows the same operations of supply chain which is
given above. Suppliers which are selected by the top management of the
company supply the needed parts of the product to the production plant
where the production department assembles the all parts of the product.
After that the final product distributes as per demand to company’s own
outlet and to all the dealers outlets which are also selected by the top
management of the Star Tech. Then retailers of the outlets deliver the
finished product to the customer.

Inventory Management:
Inventory Management is very important factor for businesses and
they spends lots of its revenue in order to manage inventory properly.
Businesses stored different types of material or parts which are being used in
the manufacturing or assembling of the product in its inventory. Companies
store Raw Material (Purchased but not processed), Work in Process
(Undergone some change but not processed) and Finished Goods (Completed
product awaiting shipment) etc.

As we know inventory management is an important component of

supply chain management. Companies manage its inventory in order to deal
with push and pull supply chain activities. Push supply chain means
companies have enough or appropriate material in its inventory before
placing the order by customers. Companies also have enough inventories in
their warehouses which can easily handle with pull supply chain means the
activities starts after placing the order by customers.

We also works on both these techniques in our inventory management

so we can easily tackle with all such push and pull supply chain activities. As
we mention earlier we have the effective capacity to produce units in a year
are 225 so we have appropriate stock in our warehouse to produce almost
half of the units.

Suppliers:
 As we all know suppliers are the most important element and play very
important part in the success of any business especially the businesses
which are related with manufacturing like our business. Businesses depend
of Variety of suppliers who provide them different goods and services on
demand.

Businesses that are related with manufacturing mostly depend upon

number of suppliers. In which some of them are supplies raw materials, some
are supplies the whole part which being used in the manufacturing of
product. So it’s very important for businesses to locate their warehouses and
outlets at those places where supplies availability is easy and convenient
because all these things are directly related with your supply chain activities,
your delivery and distribution plans. It also plays an important role in order to
minimize the transportation cost of businesses.

It is also very important for us to locate our warehouse and production

plant at those places where supplies are easily and economically available. If
we do not focus on this thing so it creates so many hurdles in our production
and distribution operations. All the parts which are needed in the making of
our product not frequently available to us and it also increase our
transportation and shipping cost. All these things disturb our entire budget
very badly and it was very difficult for us to compete with those businesses
that get these things on very economical and cheapest rate.

To keep in mind all these factors we have decided to locate our

warehouse and production plant at that place which is near to Abid Market
and Hall Road because we targeted both these places. Therefore we rented
the place for our warehouse and production plant at Mozang chunggi that is
near to both these places.

Different parts which are used in the making of our product “2D Solar
Cabinet” being purchased from different suppliers.

• We have purchased Solar Panel and controller Rs. 1,500 and 1,000
respectively from Mr. Imtiaz Ali who is the owner of Shaheen Solar
Company situated in Hall road.

• We have purchased the box (China made) Rs. 4,000 per box form Mian
Idress who is the owner of Mian Traders situated at Mintgumni Road.

• We have purchased battery Rs. 1,000 per unit from Aftab Electric
Traders situated in Hall Road.
Location:
We are new in this business so after analyzing the different locations of
Lahore city we find large amount of clusters related to our product in some
big electronics market of Lahore like Abid Market, Hall Road and Township
Market etc.

We decided to open our outlet in Abid Market for this purpose we

rented a shop in 1st floor of Al-Muzammil Plaza situated at the center of Abid
Market. Abid Market is very busy electronic market of Lahore city so it’s easy
for us to reach large number of audience and also capture our target market
in an efficient and convenient way. For assembling and storing purpose we
rented two warehouses at Mozang Chunggi which is very near to Abid
Market. Rent of outlet, warehouse and production plant are Rs 30,000,
35,000 and Rs 25,000 respectively and we paid security Rs 300,000 for
outlet, warehouse and production plant. We also take an office consisting of
three rooms in Al Tariq Plaza near at Hall Road. The rent of our office is Rs
25,000.

Logistics:
The components that are to be kept in mind while developing a logistics
strategy.

Logistic Network:

The components in logistic network are transportation, outsourcing,

logistic system, competitor and strategy review. As the owners of the
company we are aware of the transportation cost that has a major impact on
the success of our operations. We have established an efficient plan in which
we are reducing maximum cost out of every pickup or delivery. With the
Roadnet® Transportation Suite (software) we are sure that our logistics
department creates the most cost-effective routes. Our employees will have
the ability to communicate with drivers and make last minute adjustments to
the plan as needed. Additionally, this suite has shown a significance
reduction in:

• Driver overtime and turnover

• Mileage and fuel costs

 • Employee routing time

This software can help us improve customer service and driver

communication, productivity and operational efficiency. Its applications
include planning, routing, loading, dispatching and tracking systems
designed to make the distribution process more efficient. Software will give
the flexibility to create optimal routes, while balancing customer service
needs and time window commitments. Additionally, we have GPS and
wireless communication between drivers and dispatch, which gives us the
advantage of having up-to-the-minute delivery status.

We can:

• Easily maintain customer information

• Route and get orders out fast

• Add special orders or off-day deliveries efficiently

• Respond to customers with accurate delivery information

• Provide drivers with directions or route assistance when needed

• Manage daily route exceptions

Information:

We will keep our information up-to-date because in business

information is everything until and unless it is important. We will have the
information about the raw-material that whether prices are increasing or
decreasing. Information about the product is very much important, it gives
the data about the numbers of the product that are finished or are in work in
progress. Information about the trends that are shifting e.g. in summer most
people go for picnic or visit northern areas for that demand for our product
increases.

Warehousing, Materials Handling & Packaging:

 First of all we have to set a layout for the warehouse. The selection of
the layout should be in such a way that it accommodates new product line
and gives the greater flexibility to the warehouse operations. When a new
warehouse layout is proposed a detailed planning process should be followed
to ensure the success of the project. After layout we will go for the packaging
material that the carton of the product is designed in such a way that it cover
the product from damages like water, heat and fall as much as it can. Then
the carton is to put in the wooden box and the boxes can be easily placed
one above the other in order to utilize minimum space with maximum units.
Section V:

Management:

Legal Structure:
Legal structure of the business is very important element for long term
existence of the firm. It contains so many things like government’s rules and
regulations which businesses should follow. It also clarify is there any activity
which is banned by the government. This structure also gives complete
information either the business is self owned /sole proprietorship, or it follow
the terms of partnership or any other legal aspect.

Our business is based upon the terms of partnership in which five

members have an equal share. All the partners would legally be liable for all
the debts and obligations. All the partners will act as the head in the
company and in future board of directors will be overseeing the company as
well as making decisions of the company with the agreement of all the
partners. All the managers would be directly reporting to them.

Human Resource Management:

Organizational Structure:
Our organizational structure is centrally coordinated and all the
partners of business equally responsible and shared all the benefits and
obstacles. Because we are very new in this field for this purpose we need to
hire some professionals who helped us during different operations of the
business. We have signed one year legal contract with our consultants.

We want that kind of persons who are honest and sincerely associate
with us, for this reason we negotiated with several vendors, retailers and
some of our friends who associated with electronic industry for many years.
After lots of negotiation and discussion among all the partners we decided to
hire Mr. Akbar Ali as the in charge of our production department. He did
diploma in electronics from poly technical college of Lahore and associated
with this field from last 10 years. He also works as an expert consultant,
gives us some helpful suggestions and guides us in other processes of our
business.
 Mr. Faiq Ali who is one of the partner of our business he voluntary
asked for the responsibilities of accounts department. He hired a person
named Mr. Waseem Ahmed with him for proper checks of accounts. Mr.
Waseem Ahmed did B.Com in 2008 from Quaid e Azam College of Commerce
and having a two years accounts officer experience in Pakland Scientific
Productions.

Mr. Tahir Saeed who is another business partner of the firm he asked
for the responsibilities of marketing department of the company. To make his
work more effective and convenient he hired two persons Mr. Abdul Qadir
and Mr. Zain Sabir in marketing department they both work under his
supervision. They helped him in different processes and making strategies of
marketing department. Marketing department is responsible for the
marketing and selling of the company’s product.

Mr.Zulqarnain Babar is the official consultant of our company and he

works as a quality inspector in our company. He did MBA professional from
LSE (Lahore Schools of Economics) in 2005 and associated with Pakistan
Institute of Quality from last 4 years.

Mr Usman Javaid Khan is the head of management department and the

partner of our business. He hired Mr. Ubaid ur Rehman with him. The basic
purpose of HR Department is, to communicate the professional information
among all the departments. HR Department is also responsible to make
coordination among all departments and also responsible for employees
satisfaction.

Mr. Mubeen Tariq and Mr. Hasib Ur Rehman are the in charge of supply
chain and Inventory handling Department.

Staffing Plan:
Staffing plan clearly describe about the departments working in the
organization and the people who are working in each of these departments.

Production Department: Mr. Akbar Ali is the Manager of

production department and Mr. Sohail
Aslam assists him in that department.

Finance & Accounts Department: Mr. Faiq Ali is the head of this
department and Mr. Waseem Ahmed
assists him.
Marketing & Sales Department: Mr. Tahir Saeed is the head of
Marketing & Sales Department. Mr. Abdul
Qadir and Mr. Zain Sabir assist him.

Quality Control Department: Mr. Zulqarnain Babar is the in

charge of Quality Control Department.

Human Resource Department: Mr. Usman Khan is the head of this

department and Mr. Ubaid ur Rehman
assists him in this department.

IT Department: Mr. Faraz Ahmed is the in charge of

IT Department.

SC & Inventory Department: Mr. Mubin Tariq and Mr. Hasib ur

Rehman fulfill the reponsibilites of Supply
Chain & Inventory Handing Department
and Mr. Sayyam Ijaz works in this
department under the supervision of
them.

Service Department: Mr. Muhammad Ayub, Mr. Gulam Abbas,

Mr. Usman Zahir, Mr. Muhammad Raza
works in service department.

Salaries:
 The table which is given below gives complete description about the
employees, salaries and their respective departments.

Designatio Employees Salarie

Departments ns Name s
(Head of
Production Department Dept) Mr. Akbar Ali 15,000
(Employee) Mr. Sohail Aslam 10,000
(Accounts Mr. Waseem
Finance & Accounts Department Officer) Ahmed 10,000
Marketing & Sales Department (Sales Man) Mr. Abdul Qadir 8,000
(Sales Man) Mr. Zain Sabir 8,000
Quality Mr. Zulqarnain
Quality Control Department Inspector Babar 12,000
Mr. Ubaid ur
Human Resource Department (Employee) Rehman 8,000
Supply Chain & Inventory Handing
Department (Employee) Mr. Sayyam Ijaz 8,000
Mr. Muhammad
Service Department (Messenger) Ayub 6,000
(Peon) Mr. Gulam Abbas 5,000
(Gun Man) Mr. Usman Zahir 6,000
Mr. Muhammad
(Loader) Raza 5,500
Total salaries 101,500

Explanation:
Mr. ABC associated with production department in our firm. He is
responsible all the production process of the firm in which he supervised the
assembling process of 2D Solar Cabinet. He was associated with this industry
from last 10 years. he charged Rs 15,000 in order to gives his services. In
production department another person who helped him named Mr. Sohail
Aslam. He helped him during assembling process he charged Rs 10,000.

Mr. Waseem Ahmed working in accounts department as an accounts

officer. He managed all the accounts of the company under the supervision
of Mr. Faiq Ali, who is the head of accounts department. Salary of Mr
Waseem Ahmed is Rs 10,000.
 Mr.Abdul Qadir and Mr. Zain Sabir both are working in marketing
department. He managed all the advertising and promoting related activities
of firm the company. They are under the supervision of Mr. Tahir Saeed, who
is the head of Marketing Department. Salaries of Mr. Abdul Qadir and Mr.
Zain Sabir are Rs 8,000 each.

Mr Zulqarnain Baber works as an official consultant with us. He is

responsible for the quality of our products and charged Rs 12,000 for his
services.

Mr. Ubaid ur Rehman working in HR department. He managed all the

collaborative activities under the supervision of Mr. Usman Javaid Khan, who
is the head of HR department. Mr. Ubaid ur Rehman charged Rs 8,000.

Mr Sayyam Ijaz working in Supply chain and inventory handing

department under the supervision of Mr. Mubin Tariq and Mr. Hasib ur
Rehman. He charged Rs 8,000 from us.

In service department we hired four employees. Mr. Muhammad Ayub

fulfills the duties of messenger in company; he keeps and manages all the
previous data of company in store room. His salary is Rs 6,000. In very same
department Mr. Gulam Abbas fulfills the duties of peon. Mr. Usman Zahir is
the gun man of company and Mr. Muhammad Raza mostly works in
warehouse of the company and he load and unload the inventory. Salaries of
Gulam Abbas, Usman Zahir and Muhammad Raza are Rs 5,000, 6,000 and
5,500 respectively.
 Job Description & Job Specification (JDs, JSs)
We have seven different departments in our company and each
department has deal with different operations and activities according to the
requirement. In these departments includes Production Department, Finance
& Accounting Department, Marketing & Sales Department, HR Department,
Quality Control Department, IT Department, Supply Chain & Inventory
Department and Service Department etc.

Job Description and Specification Production Department:

Job Title: Manager of the Department

Departmen
t: Sales and Marketing – Lahore
Reports To: Production Director

Job Summary:
Responsible to maintain production procedures and to maintain high
standards of manufacturing operations, product quality, reliability, and safety

Duties and Responsibilities:

• Maintain a safe and organized work environment.

• Lead efficiency improvement within the manufacturing processes.

• Responsible for assisting in the raw materials inventory accuracy.

• Plan future manufacturing programs to obtain maximum value from

production resources such as equipment, machines and testing as
well as personnel.

• Plan, analyze, prioritize, coordinate, and facilitate all lean efforts

within Operations.
 Job Description for the Sales Representative:

Job Title: Sales Representative

Departmen Sales and Marketing –
t: Lahore
Reports To: Sales Manager

Job Summary:

Responsible of all sales activities are to meet both personal and

organizational goals. Develops Marketing plan and insure its implementation.
Work within the sales team for the achievement of customer satisfaction,
revenue generation and long term organizational goals.

Duties and Responsibilities:

• Develops annual business plan with sales manager which includes

detailed activities to follow during the fiscal year and set the targets.

• Should have excellent presentation and communication skills.

• Complete understanding about selling and pricing of the product.

• Should have excellent convincing abilities.

• Assists in the company’s marketing plan.

• Responsible for clients dealing and developing relationship.

• Maintains accurate records of all sales activities including sales

receipts.
 • Participates in the activities related to clients and company employees
such as training.

Job specification:

• 3 to 5 years of experience in sales and marketing department.

• Strong understanding of customer’s relationship Management and

supplier relationship management.

• Willingness to travel and work with different teams within the country.

Job Description of Account Officer:

Job title: Accounts officer

Department
: Accounts
Reports to: Accounts Manager

Job summary:

The basic function of the account officer is to maintain the Accounting

related record and schedules on daily basis. Provide executive summary
report to the senior management. Responsible of all the internal and external
reporting deadlines of loans, tax and third parties

Duties and Responsibilities:

• Forecasting sales to optimize scheduling.

• Analyze financial statements and manage risks.

• Active accounts reporting procedure on daily basis

• Participate in the sales and pricing strategies and product expansion

on the basis of accounts.

Job Specification:
 • MBA or higher degree preferably in Finance, Accounting, Business or
Economics.

• 2-5 years experience in the accounts department.

• Strong analytical skills.

• Strong communication skills to develop relationship with the other

members of the community such as Banks, clients etc.

• Ability to manage multiple priorities within given framework.

• Strong grip in computer handling software’s.

• Ability to learn additional applications as needed.

Job Description for Human Resources

Job Title: Human Resources Manager.

Departmen
t: Human resources
Reports To: Director Human Resources.

Job summary:

Human resources manager is responsible for all the activities related to

the Human resources of the company which includes Recruitment, Training,
Development, and employee counseling and performance appraisal.

Duties and Responsibilities:

• Responsible of conducting interviews and negotiating salaries.

• Keep in touch with recruitment agencies, educational institutions etc.

• To guide and train the employees of the company.

• Motivate employees on their performance.

• Teaches the workplace ethics, safety issues, and health.

• Planning, supervising and coordinating the activities related to
employment, labor relations and compensation.

• Responsible for terminating the employees.

Job specification for Human Resources:

• 5-7 years experience in the field of HR management in any home

appliances company with in a country or globally is a plus.

• MBA with specialization of HR management (additional diplomas

related to the field will be preferable).

• Good in communication and negotiation skills.

• High team work skills.

• Expert in employee law and employee relations.

Section VII:

Critical Risks:

Potential Problems:
It is very important for the businesses to keep in mind all the potential
problems and risks that they face in future. Like other businesses we also
keep in view all these potential problems that we might face in near future. It
also very important to keep these things at front because we started a new
business by using our own limited resources and budget constraint is also
there. Early identifications of these problems is important because if we will
face such hurdles in future so at that time we will able to take some action in
order to avoid these problems. So the expected problems which we consider
to undertake are given below:

Financial Problems:
The first and most important problem is financial problem. As we
mention this problem earlier at different places. As we know in these days
Pakistan facing the worst financial crisis of its history. Inflation rate,
unemployment rate are continuously increases which makes the entire
situation more horrible. Due to this financial crisis foreign investors not ready
to invest even a single penny in our country.

Raw Material Problems:

As we know prices of raw material that we use in making of our
product are continuously increases as the result of this inflation we will face
shortage of raw material in future. It will also make our cost of production so
high.

Taxes:
Taxes are another big problem for businesses. As we know the big
portion of raw material that businesses used in their operations imported
from China, India, Bangladesh, Iran etc. Government of Pakistan now
increases the duty of such imports. They also imposed Value Added Tax on
different things that make the entire situation more threatening and
uncertain. In our case different items that we used in our product, in which
mostly are import from china. So it will make our cost of production very high
and that thing will disturb our entire budget very badly.
Competitors:
Now nobody is manufacturing the product “2D Solar Cabinet” which we
first time introduced in Pakistan. But in future there is a possibility that
someone will manufacture the similar product and sell it at competitive price.

Suppliers:
Due to continue rise in inflation, there is also a possibility in future our
suppliers also increase the price of components that we used in
manufacturing of 2D Solar Cabinet.

Distributer Demand:
In future there is a possibility that our distributers could demand more
commission. It will create a problem for us.

Law & Order Situation:

Poor law and order situation also the major problem that Pakistan
businesses have faced in these days. Almost every type of business
irrespective how big or small it is feels very insecure while doing business in
Pakistan. Worst Political, Economical and Law and Order situation of Pakistan
will make the entire environment more crucial in future.

Pricing Problem:
Due to the bad economic condition of Pakistan everyone has pricing
problem. If we increase the price of our product so it will decrease the buying
power of consumer. Continuously increase prices of petrol and CNG more
contributed in pricing problem.

Obstacles & Risks:

As we all know the financial situation of Pakistan is not so good for the
new businesses like us. The value of Pakistan’s currency continuously falls
down and investors not ready to invest in this situation.

Industries crack down; high inflation and unemployment rate create

more hurdles for businesses. Infrastructure problems and pathetic law and
order situation also can’t be neglected.

Unstable political situation also contributed in favor of these crises and

make the entire environment very uncertain.
 As our product is unique so we also faced some sort of demand
problems at start.

We also faced some problems regarding marketing research, because

we are launched this product at very low level only in Lahore, without
knowing the whole market situation of this industry in Pakistan.

Contingency Plans:
A contingency plan is a plan which gives you safest alternatives in order
to deal with specific situation when thing could go wrong. Contingency plan
is being used by government or even businesses who want to be prepared
for anything that could happen doesn’t matter how rare that incident will
occur.

There are three phases of contingency plans:

• Response Phase

• Recovery Phase

• Reconstitution or Restoration Phase

We increase the price of our product in such uneven circumstances. Like if

the price of raw material will increase, our dealers will demand for more
commission or worst economical crack down will occur so under such uneven
circumstances we will increase the price of our product to tackle with such
problem.

If all Workers strike and demand for the wage increase, our company stance
to that issue will be positive we will talk to their leaders and will try to
compensate as much as possible.

On a Partner’s death we will first search for the new partners for investment
if unfortunately that’s doesn’t happen then we will manage our investment
with the remaining partners of the country.

If we discover a Fire in our warehouse, outlet, office or production plant to

tackle with this problem we placed fire alarm at different places that will help
to immediately evacuate or leave the building or affected place via shortest
and safest route in order to safe our most important assets which are
humans. We also placed fire extinguisher in order to handle such disastrous
situation.
Damages Assessment teams will also helpful to deal with such uneven event.
Therefore we have given appropriate training to some of our employees.
Section VIII:
Exit Strategy:
As we mention earlier in our financial projection that we start this
business by using our own resources without taking any loan from banks or
any other financial institution. By analyzing the whole situation we bear the
loss in our business up to 3 years. After that it will very difficult for us to
continue our activities because the reason behind this step is, our outlet,
warehouse, our office and our production plant all are rented. After that time
it will very difficult for us to manage such expenses like administrative
expenses, utilities expenses, salaries of employees etc. To keep in mind
“worst come worst scenario” if we will not find any sufficient acceptance
from our target audience regarding our product then the exit strategy we will
adopt is “Buyout Strategy”. By adapting this strategy we will sell our all
rights of our company and remaining resources to big venture existing in our
related industry and straight away shutdown all the operations and activities
of our business.

Section IX:

Milestone Schedule:

PERT:
The first task is the proposal of the business which is done by all core
partners of the company. After that planning of research and development is
done by Usman khan because he has a good knowledge in this field.

Form of the business, business description and industry analysis is done by

all partners and this is the initial step taken by partners together. Budget
planning which is the next step is done by Tahir saeed and Mubeen Tariq.

Then comes the responsibility of HR department to hire the people which are
to be handled by Usman khan. Next is the stage of capacity management,
procurement and assembling which is done by usman khan, mubeen tariq
and sayyam ijaz. Without advertisement our product is having no market, so
advertisement is taken care by akber ali and all of the five partners are
deciding media.
We are first time doing an innovative business so in order to survive in
market quality of the product is to be maintaining with the quality standards.
We have a forecast of the demands and also contingency plan if this doesn’t
work out, we are going to be handling our inventory voice verse by the
inventory management department. Last stage of the PERT is financial
record keeping which is to be done by Waseem ahmed.

CPM:

Manpower Plans:
The proposal of business plan has been made by the contribution of all
the partners of the business. Then the planning regarding Research &
Development has been done by Usman Khan. The basic purpose of the
planning was to analyze all the technical and physical aspects of the product
which has going to launched first time in Lahore market.

Because our business is based upon the partnership so both tasks

including form of business and business description have been done by all
the partners of business.

Industry analysis is very important factor to analyze the trend of

industry which we have targeted so this portion has completed by Tahir
Saeed and Mubin Tariq.
 Budget planning has told about how we allocate our resources in order
to get maximum return. So Usman Khan and Faiq Ali both have made very
comprehensive budget plan of the business. Usman Khan also managed the
duties of HR Department in order to hire suitable candidate for each
department that is involved in the different operations of the business and he
also maintain strong coordination among all the departments.

Akbar Ali is the manager of Production Department of the company. He

managed all the activities of production department with the help of three
employees who have working under his supervision.