Entrepreneurship 9

Group Members

Ramiz Raja L1S10MBAM2038

Bilal Saeed Bhatti L1S10MBAM0005

Zohaib Ahmed L1S10MBAM2039

Bilal Javaid L1S10MBAM2214

Saima Maqsood L1S10MBAM2037

Maryam Dastgeer L1S10MBAM0040

Table of Contents

Acknowledgement 7

Executive Summary 8

Business Plan: 10

The Opportunity: 10

Problem to solve or need to be filled 10

The Description of the Business: 12

How the proposed business fills the need 12

Advantages to customer: 12

“Mission Statement” 13

“Vision Statement” 13

“Slogan” 13

”Objectives” 14

Business Model 15

Description of Business Model 16

Identifying Trends / Demand Forecast 16

 Concept Testing 16

 Usability Testing 16

Inbound Logistics 16

 Base (Fabric) 16

 Thread 17

Placement of order: 17

 Ready to Stitch: 17

 Customization: 17

Outsource production: 17

 Commercials 17

 Business Angels 17

Deliver to customer: 18

 At the spot: 18

 On promised time: 18

Feed Back: 18

Competitive Advantage 19

Technical embroideries done with latest designs 20

Best quality with purity in raw clothing 20

Cheaper rates of the finished goods as compare to others 20

Corporate Governess 20

The Business plan on Financing A Business

Financing a business is a process that requires much planning. A business plan should be made mapping the future business. A business plan is a lengthy plan but when done properly will make the actual process of setting up a business much simpler. The business plan includes many steps that will be explained. The first step in a business plan is deciding the nature of the business. A detailed ...

We provide the facility of customization as per customer requirement 20

Selecting things that people need after a healthy survey 20

Target Market 21

Management Team 23

C.E.O 23

Board of Advisers 23

HR Manager 23

Operation Manager 24

Finance Manager 24

Marketing Manager 24

Designing Manager 24

Brand Manager: 25

Legal Matters (Mr. Naseer Ahmad Sindhu) 25

Financial Advisor (Mr. Abdul Samee) 25

Hierarchy of the Company 26

Management Experience ability and C.Vs 27

CEO/ Director: 27

Marketing Manager: 28

Brand Manager: 29

Finance Manager: 30

Operational Manager: 31

Art Designer: 32

Legal Structure 33

Partnership 33

General Partner 33

Advantages of a General Partnership 33

Partnership Agreement 33

Sleeping partner 34

Registration of trade mark 34

Intellectual Property 35

Industry Analysis 36

Industry Description: 36

Industry trends: 36

Industry size: 37

Industry Attractiveness: 37

Profit potential: 38

Market Segmentation 39

Brand Strategy 40

Building Strong Brands 40

Brand Equity 40

Major Brand Strategy Decisions 40

Brand Management 44

Competitive position with target market 45

Competitor Analysis 45

Identifying Competitors 45

Direct Competitors 45

Indirect competitors 45

Future Competitors 45

Porter’s generic Competitive Strategy: 46

Sources of Competitive Intelligence 46

Positioning 47

Competitive Analysis Grid 47

PEST Analysis 49

Political Factors 49

Economical Factors: 50

Social Factors: 51

Technological Factors: 51

SWOT Analysis 52

Strength 52

Weakness 53

Opportunity 53

Threats 53

SWOT Portfolio Framework 54

TOWS Matrix 55

BCG MATRIX 56

STARS 56

CASH COWS 57

DOG 57

QUESTION MARKS 57

Revised BCG Matrix 58

Porter Model 59

1. Threat of substitutes 59

The Essay on Building A Brand And Customer’s View

Abstract Marketing plan is a way to secure the future of an investment and when there is a lack of strategic planning firms can jeopardize having a successful outcome. This paper reflects on the definition of marketing plan, scenarios of how a good and bad marketing strategy can impact an organization and a movie that failed in the box office due to bad marketing strategy. BUILDING A BRAND AND ...

2. Threat of new entrants 60

3. Rivalry among Existing Firm 61

4. Bargaining power of Suppliers 62

5. Bargaining power of buyers 62

Determining the attractiveness of our industry using the five forces model 63

Product Feasibility & Strategy 64

Concept Testing 64

Usability Testing 64

QUESTIONNAIRE 65

Pricing Strategy 68

Channels of Distribution 69

Promotional 69

 Promotional Strategy and advertising 69

Our promotions and advertisement instruments include: 69

Operations Plan 70

Method of production and service delivery 70

Steps in Selling Process 70

 Prospecting & Qualifying 71

 Reproach 71

 Approach 71

 Presentation and demonstration 71

 Handling Objections 72

Quality Control 73

Quality Level 73

Quality Consistency 73

Customer Support 74

Customer Support Strategies 74

Make monitoring Integral to training 74

Making product delivery uniform across all distribution areas 74

Explaining real business needs to partners 74

Giving customer priority as no 1 74

Customer Support Obligations 74

Financial Projections 76

Share Division: 76

Chart of Share Division 77

Financials 78

Advertisement Plan 78

Startup Cost 78

Income Statement 79

Balance Sheet 80

Projected Cash Flows 81

Operating Risk: 84

Financial Risk: 84

Intellectual property infringement: 84

Management Risk 84

Marketing Risk 85

Exit Strategy 86

Pros 86

Cons 86

Back up Exit Strategy 87

Acknowledgement

First of all we want to thank Allah Almighty to give the strength and resources to realize our potential. After that we would like to pay our gratitude to our parents who brought us up and provided us with all the resources to polish ourselves. We would also like to thank our teacher Prof. Rasheed Khalid who provided us with his vision and made us work efficiently & he guide us very well. We would also thank his co-coordinating team & mentors & whole IDEAS society for their sincerity and guidance.

The Term Paper on Funding a Business Venture / Investment Banker/Stock Market/Financial Management/Risk Financing

Funding A Business Running head:   FUNDING A BUSINESS VENTURE                                                                                                                                   Funding a Business Venture                                                                             Jason L. Morales                                                           American Intercontinental ...

Executive Summary

When your clothes matter, when your image matters, when it’s important to communicate success & style, Kumas Wears dedicated to dressing “Ready to stitch” whatever the occasion is.

Kumas is a Turkish word which means “Fabrics” that’s also representing our business and we mainly deals in embroidered fabric. Apparel decorating is a 4 billion dollar a month industry that offers entrepreneurs an enormous amount of opportunities. We are grasping the opportunity by providing a customer an ease to mould their fabric according to their will. Different people have different choices even members of one family choice is different from others e.g. if a family go for dinner they probably order meal according to their choices so why not cloths.

* Kumas Wears providing new embroidered stuff in the market according to the customers wants.

* We providing our customers liberty to even embroider their own designs on fabric.

* It helps our customers to confront high prices because we provide best quality at low prices.

* We providing values to the customers as our mission statement is “our profit is our customers satisfaction”

The business model of Kumas Wears is very simple and effective, simple because it is easy to implement and effective because at the start of this business model we are sure that we have a customer. For this reason we don’t have to keep the fabric in outlet for long period of time.

Competing with other companies is one of its own specialists in standing in its own pace and position. Competing with others today is a difficult situation for a company to stand its position with goodwill. Kumas Wears specializes in embroidery designing, production and sale of embroidery done on the fabrics.

Our mainly focus on ladies stuff in all age sects. We need to define additional characteristics or traits of the ladies garments that will be in our market. The concept of embroidery fabric is very wide so we targeting people of certain classes like lower middle, middle, upper and elite class. Therefore, this would large our market. The better we can define our market, the more successful your business will be.

The Business plan on Pearson Custom Business Resources

Carrefour is global brand whose market edge is ideal. The supermarket chain is revered across the world. It is keeping this in mind that such a brand should always seek to have and maintain this success; key aspect would be to ensure that all their potential customers are reached wherever they are in the globe. One of the ways to ensure this is achieved would be the indulgence of information ...

In industry analysis we conducted survey and we mainly collected data through secondary resources that garment industry s quite feasible for us because through secondary data we have come to know that this industry is behaving similar to our business plan which we have described earlier.

Market segmentation will help KUMAS WEARS to identify large market segmentation by converting it into smaller segments that can reached more efficiently and effectively with products & services that match the needs of our customers.

Brands are more just names & symbols. They are one of the key elements in the company’s relationships with consumers. Brands represent consumer’s perceptions & feelings about a product and its performance. Brand exists in the minds of consumers for e.g. Coke, Pepsi, Tide; Harley Davidson etc are not only famous for its unique benefits or reliable services but are also famous for having deep connections with customers.

If we somehow wanted to sell our business we would be focusing it to sell our business to someone who is a friendly buyer. As we had launched the business with great effort we would be emotionally attach to that business as we know it is easier than liquidating the business than to sell the business to someone who would surely preserve legacy of our business. This may include anyone like customers, employees, children or other family members.

Business Plan:

The Opportunity:

Problem to solve or need to be filled

Apparel decorating is a 4 billion dollar a month industry that offers entrepreneurs an enormous amount of opportunities.

We are grasping the opportunity by providing a customer an ease to mould their fabric according to their will. Different people have different choices even members of one family choice is different from others e.g. if a family go for dinner they probably order meal according to their choices so why not cloths.

Commencing an embroidery business has all key ingredients that are required to start a business and also provide assistance in catering opportunity. Creativity, working from home, ability to work in any niche market and huge profit potential are the main components of embroidery business.

The Essay on CASE: Pizza USA – An Exercise in Translating Customer Requirements Into Process Design Requirements

Production & Operations Management Pizza USA is a chain of pizza restaurants that currently offers sit-down and take-out service. Many customers have said that they would buy more pizzas from Pizza USA if it offered a delivery service. This exercise is in two parts. In Part I, you play the customer. In Part II, you play the manager at Pizza USA who is responsible for developing the pizza ...

We are looking to grasp the opportunity where this huge industry is not paying a kind of attention which this industry requires. There is a gap in the present industry for embroidered type of stuff, that’s why customers are forced to go for printed logos and design. Those unsatisfied customers are our opportunity. We will step into this industry by fulfilling the needs of those unsatisfied customers.

* It’s very profitable – Numbers don’t lie. With the right business plan and disciplined marketing, your business can grow at an unbelievable rate.

* Everyone buys embroidered goods. All types of business and organizations buy embroidered or printed clothing and other decorated goods to help build brand identity or communicate a message.  We have become a customized nation are always looking for individualized, “design your own” type products.  In fact, over 70% of Americans wear embroidered or printed clothing every day.

* Easy to market, easy to understand and it’s a “Non-Threatening” sale….people love to talk about embroidering or printing their logo.

* Being your own boss of an embroidery business means making your own hours and using your creativity to build your business.

You don’t need a fortune to get started and with very little work, you can cover your monthly cost very easily. A profitable embroidery business can be built with a simple single-head machine for very little investment.

The Description of the Business:

When your clothes matter, when your image matters, when it’s important to communicate success & style, Kumas Wears dedicated to dressing “Ready to stitch” whatever the occasion is.

How the proposed business fills the need

Kumas Wears deals in embroidery fabrics. We providing new embroidered stuff in the market according to the consumer want and our customers have a liberty to even embroider their own designs on fabric as well. We will also trying to create a new trend in the market by providing lot of different designs. It helps our customers to confront high prices because we provide best quality at low prices. In Pakistan we provide them the kind of quality & durability in fabric that would be worth of the price patrons will be paying for our products.

The Business plan on Retail Buyer Company Products Buyers

Executive Summary This business plan details the launch of a start-up company known as the Import Export Company (IEC). The company functions as a 'middleman' in purchasing housewares from manufacturers in China and reselling the products to retail buyers in the US and Canada. The Import Export Company is primarily an independent import / export business. The products we import from China are ...

Mostly customers have a problem that they want their own choice and designing on fabrics. Kumas Wears is solves all these problems of customer by providing a liberty to even embroider their own designs on fabric with their own choice.

Advantages to customer:

Our customers get many advantages and benefits from us.

* Kumas Wears providing new embroidered stuff in the market according to the customers wants.

* We providing our customers liberty to even embroider their own designs on fabric.

* It helps our customers to confront high prices because we provide best quality at low prices.

* We providing values to the customers as our mission statement is “our profit is our customers satisfaction”

* Customers getting satisfaction from Kumas Wears.

“Mission Statement”

“Vision Statement”

“Our profit is our customer’s satisfaction”

Our Vision to be a progressive business with strong brand equity, enhancing value for all the stakeholders through excellence in performance and good governess.

“Slogan”

Ready to Stitch

”Objectives”

* To become the market leader.

* To grab maximum market share.

* To built sustainable competitive edge.

* To maximize our first movers advantage.

* To built high credibility in the industry.

* To help textile businesses.

* To create unique job opportunities for fresh generation.

* To gather the capable human resource on one platform.

Business Model

Description of Business Model

Business model of Kumas Wears is very simple and effective, simple because it is easy to implement and effective because at the start of this business model we are sure that we have a customer. For this reason we don’t have to keep the fabric in outlet for long period of time.

Identifying Trends / Demand Forecast

Our business cycle starts from identifying trends of our products to the customers in the market. Need identification includes two things concept testing and usability testing for demand forecasting.

* Concept Testing

In concept testing we make questionnaire and filled this questionnaire from the customer and we resulted that there is a good demand of our products in the market.

* Usability Testing

For usability testing we show some samples of our products to the customer and ask them what they think about our product and then change our product to the customer need.

Inbound Logistics

* Base (Fabric)

Our business cycle starts by selecting bases according to demand forecasting. Base is a typical word that used instead of fabric in the field of embroidery. We also search for a reasonable manufacturer. This contact may be through e-mail, telephonic call of fax. We tell the manufacturer about the specifications and requirements of our product.

* Thread

After selecting a base we select threads to make designs on base and give to the manufacturer for embroidery in the procedure of customization as per customer requirement.

Placement of order:

Placement of order consists of two types through which customer can gain a desirable designed fabric. Those two types are ready to stitch and customization.

* Ready to Stitch:

In ready to stitch customer are provided by our designed fabric which they can buy and stitch in less time compared to the customization.

* Customization:

On the other hand customization provide customer to design their fabric according to our mentioned latest design.

Outsource production:

* Commercials

We used at the spot term to explain this term better the fabric which will be presented at our outlet is the fabric which ready to stitch our designers will be working hard to make the availability of this kind of fabric.

* Business Angels

The second term which we use is customization to cater this we will be helped by our business angel who will embroider our customer customized design for this we will provide business angle with base thread and design.

Deliver to customer:

This step will tell about the delivery of fabric to customer.

* At the spot:

The designed fabric which is presented at our outlet is delivered right away because it is ready to stitch fabric.

* On promised time:

Customized fabric is delivered to customer on the time which is promised to customer at the time of customization.

Feed Back:

In this last step we get feedback from our customers about our products after selling them and how they get experience from our product. We also get feedback for our designs as well.

Competitive Advantage

Competing with other companies is one of its own specialists in standing in its own pace and position. Competing with others today is a difficult situation for a company to stand its position with goodwill. Kumas Wears specializes in embroidery designing, production and sale of embroidery done on the of fabrics, our product is dealing totally in women garments, we have variety of our unique designs and embroidery according to the latest trends and fashion which is in these days .with our brand we offer you the type of product in which women find it more comfortable in wearing it as the product is just made for them and make them feel that they are the one for “IT”..Our product is fast sale in all over Pakistan. We have owned advanced working management based on sincerity honestly which is most important, make efforts for mutual benefits. We strictly control our costs, strengthen our management to compete with the advancing market, try our best to offer the most satisfied products to our customers with the competitive price. Our company will be competing with other companies on the basis which will b knowing our companies essentials like as the follows:

* Technical embroidery done to the latest taste & designs.

* Best quality with purity in the raw clothing.

* Cheaper rates of the finished goods as compare to our competitors.

* Corporate Governess.

* We providing the facility of customization as per customer requirement.

* Selecting things that people need after a healthy survey.

Technical embroideries done with latest designs

We have the best machineries to the latest trend of the technology and the fashion required by the youth. Used by the best technical and the finest work best required for the motives.

Best quality with purity in raw clothing

Best raw is selected by us and used in the cloths ,for which we find that people needs the exact thing as required .people of all grades are liable to use the product as it does not require expert laundry and are easily washable at home without spoilage.

Cheaper rates of the finished goods as compare to others

Our company offer more and efficient offers with cheaper rates and many eligible rates of the products, which are brought broad quantity due to which we are able to make enough profit at cheaper cost and have enough margins to have more space of thinking brought for cheaper cost.

Corporate Governess

The Kumas Wears is belongs to corporate governess. That was its 3rd generation who is related with that business, so it can be very helpful to run successful business.

We provide the facility of customization as per customer requirement

Kumas Wears providing the facility of customization as per customer requirement and we providing all the very top fashion required by the youth of our country. We step into the latest vision and latest trends of today market as per customer demand. So they can entirely depend upon the collection that they like.

Selecting things that people need after a healthy survey

After the successful healthy survey we came with a conclusion that what our company needs and we can better achieve our goals which we constructed and which were supposed to be done. So now we can finally and safely start our business for longer run after this feasibility testing.

Target Market

An important part of any business is to define its target market, in which we are going to tell that for which market we are going to produce our product. The specific group of people, whom we are going to target, is lower middle, middle, upper middle & elite class. Our product is one which serves almost every sect of society that everyone can enjoy the benefit of it and enjoy the most valuable and unique designs under the BRAND which gives you the pleasure of wearing a good piece of work. Now a day’s everybody is well knowing about the latest trends and fashion which is moving around so ladies are now very conscious about what they are wearing. In Pakistan the fashion industry is now at the age of growth which shows that there is enough potential in this industry that we can easily focus on making embroidered stuff and earn sufficient profits. So we wisely choose the market in which the lead class is affording the costly and expensive stuff and we have also targeted the lower middle for them we have also the fabric which is affordable for them and they can also enjoy the same thing under same brand. Garments are of pure and good quality and they are embroidered, by machines and some are handmade, printing technique is also used. We are going to do feasibility analysis for a short period of time so we can analyze that weather product is going to meet success.

* First of all we target the gender females, our mainly focus on ladies stuff in all age sects. We need to define additional characteristics or traits of the ladies garments that will be in our market.

* The concept of embroidery fabric is very wide so we targeting people of certain classes like lower middle, middle, upper and elite class. Therefore, this would large our market.

* Now you have your market defined as middle-class, lower middle and upper, now how much easier it will be to target that market rather than targeting people in general.

* We should have something like middle-class who study or work in different institutions. This will certainly be of great help, not only for marketing and advertising our products, but also for our garments and clothing products and well.

* The better we can define our market, the more successful your business will be.

* We will conduct our usability test in UCP among youth & young generation students. So that is also our target market to cover up their choices.

.

Management Team

Management team is the teams which are directly involved in managing the day to day operations and maintain the profitability of our company. Management team is generally a team of individuals at the highest level of company management who have the day to day responsibilities of managing the company. Management team hold specific executive powers conferred onto them with and by authority of board directors and stakeholders such as board directors and those who own the company such as stakeholders.

C.E.O

As the top manager, the CEO is typically responsible for the entire operations of the corporation and reports directly to the chairman and board of directors. It is the CEO’s responsibility to implement board decisions and initiatives and to maintain the smooth operation of the firm, with the assistance of senior management. Often, the CEO will also be designated as the company’s president.

Board of Advisers

Board of advisors is the people who are involved from outside the company helps the company in difficult situations. As a new firm or company in the market we need such type of expertise from these peoples as a guiding to success. Board of advisors is the people who are not the permanent employees of the company they are just advisors for the business and they are paid per visit. Their idea is essential for the business.

HR Manager

The basic purpose of HR manager is hiring, selecting and training to the employees according to the needs of the company. All the steps are involved in HR management. Hiring is the most important factor of HR management that HR manager should make the right decisions at the time of hiring because it gives a great edge to the company’s progress. In our company after hiring training is the most important factor in our company’s progress because we want to have the best available persons out there, so he can work effectively and efficiently and it can help the company to grow. The HR Manager has a supervisor to assist him in selecting and training procedure.

Operation Manager

The role of the operations manager is related with the customers. The main task of the operation manager is to provide the customers to what they desire, What they are looking for, the operations manager has the floor manager to assist him with his work and under him are the employees who directly deals with the customers and note their requirements. These requirements are taken to the floor manager to be fulfilled who sees the availability for it and then passes to Operation manager for confirmation or if they are facing any problems with it. The Operation manager holds the most authority in his department.

Finance Manager

The finance manager is the manager who has all the power of decision making in his department. Finance manager will look after all the work related to financials whether they are made according to company’s asset properly or not. The finance manager will look after and take all the decisions according to it.

marketing manager

Marketing manager is the company’s manager who is responsible to create the awareness of our product of the company in the people. Marketing manager has hold in his department. Marketing manager has to create the television ads, radio ads etc of the product. The marketing manager has an assistant manager who will be working with him in performing different tasks related to their department.

Designing Manager

The role of Designing manager to make designs following new trends and to make design which are not introduced before and customer want these design. Designer can make new designs by following to ways one is two follow trend and second is to conduct survey through which designer will come to know about what is going in customer mind and what customer want. Designer’s another duty is to design kind of design which helps customers in customizing their dresses. Designer can also help customer by giving his suggestion which will be having a worth as designer updates a customer about latest trends and designs.

Brand Manager:

The role of Brand Manager is wide and varied. As such it is an interesting role but requires multiple skills – there is almost nothing that is not involved in Brand Management – buying, selling, marketing, pricing, and ordering.

Legal Matters (Mr. Naseer Ahmad Sindhu)

Mr. Naseer Ahmad Sindhu is Advocate Supreme Court of Pakistan specializing in Corporate Law, will advise about the management and handling of the legal matters of the company

Financial Advisor (Mr. Abdul Samee)

Mr. Abdul Samee is Regional Manager at Muslim Commercial bank, will be advising the company about money matters, financing and obtaining loans etc.

Hierarchy of the Company

Management Experience ability and C.Vs

CEO/ Director: | Ramiz Raja |

Job Title: | Chief Executive Officer |

Functions: | * To implement the strategic goals and objectives of the organization * With the chair, enable the Board to fulfill its governance function * To give direction and leadership toward the achievement of the organization’s philosophy, mission, strategy, and its annual goals and objectives. |

Year of experience: | 6 years. |

Education | MBA Marketing & Finance |

Functions | • Board Administration and Support — Supports operations and administration of Board by advising and informing Board members, interfacing between Board and staff, and supporting Board’s evaluation of chief executive•Program, Product and Service Delivery — Oversees design, marketing, promotion, delivery and quality of programs, products and services•Financial, Tax, Risk and Facilities Management– Recommends yearly budget for Board approval and prudently manages organization’s resources within those budget guidelines according to current laws and regulations•Effectively manages the managers of the organization according to authorized personnel policies and procedures that fully conform to current laws and regulations•Oversees fundraising planning and implementation, including identifying resource requirements, researching funding sources, establishing strategies to approach funders. |

Marketing Manager: | Bilal Javaid |

Job Title: | Marketing Manager |

Functions: | To develop, establish and maintain marketing strategies to meet organizational objectives. Effective management of the marketing, advertising and promotional activities of the organization. * manage and coordinate all marketing, advertising and promotional staff and activities * conduct market research to determine market requirements for existing and future products * analysis of customer research, current market conditions and competitor information * develop and implement marketing plans and projects for new and existing products * manage the productivity of the marketing plans and projects * monitor, review and report on all marketing activity and results * determine and manage the marketing budget * deliver marketing activity within agreed budget * develop pricing strategy |

Reports to: | CEO5 years.MBA Executive majors in Marketing * excellent written and verbal communication skills * organization and planning * problem analysis and problem-solving * team-leadership * formal presentation skills * persuasiveness * judgment * decision-making * stress tolerance * collaboration |

Year of experience: | |

Education: | |

Major Responsibilities: | |

Brand Manager: | Maryam Dastgeer |

Job Title: | Brand Manager. |

Functions: | The role of Brand Manager is wide and varied. As such it is an interesting role but requires multiple skills – there is almost nothing that is not involved in Brand Management – buying, selling, marketing, pricing, and ordering. * Taking technical enquiries from consumers (phone, letter, email) * Demo days and racing event attendance * Public shows * Promotions and competitions |

Reports to: | CEO |

Year of experience: | 3 years. |

Education: | MBA in Marketing |

Major Responsibilities: | * Retailer Base * Consumer actions/marketing * Marketing * Pricing * Supplier relations * Ordering |

Finance Manager: | Zohaib Ahmed |

Job Title: | Finance Manager |

Functions: | Plans and directs accounting activities within the Finance department by performing the following duties, personally or through subordinate supervisors.The major areas directed are: * Assists in the development and implementation of goals, policies, priorities, and procedures relating to financial management, budget, accounting, and/or payroll. * Supervises and participates in the preparation of various financial statements and reports. * Directs the installation and maintenance of accounting records to show receipts and expenditures. * Directs the maintenance of general and subsidiary ledgers, accounts receivable, revenue distribution, depreciation, cost, property, and operating expenses, and insurance records. * Prepares statements and reports of estimated future costs and revenues. * Directs internal audits involving review of accounting and administrative controls. * Establishes system controls for new financial systems and develops procedures to improve existing systems. * Coordinates preparation of external audit materials and external financial reporting. * Reviews financial statements with management personnel. * Directs the installation and maintenance of new accounting, timekeeping, payroll, inventory, property, and other related procedures and controls. |

Reports to: | CEO |

Year of experience: | 4 years. |

Education: | CA |

Major Responsibilities: | * Competency * Analytical * Problem Solving * Interpersonal Oral Communication | * Diversity * Ethics * Organizational Support * Dependability Innovation * Motivation |

Operations Manager: | Bilal Saeed Bhatti |

Job Title: | Operational Manager |

Functions: | The Operations Manager will be responsible for data entry, accounts payable, payroll, grant report entry, managing the organizations HR, helping and creating organizational and program budgets in collaboration with the ED and Program Direct, and other misc. tasks * Improve the operational systems, processes and policies in support of organizations mission — specifically, support better management reporting, information flow and management, business process and organizational planning. * Play a significant role in long-term planning, including an initiative geared toward operational excellence. * Oversee overall financial management, planning, systems and controls. * Invoicing to funding sources, including calculation of completed units of service. * Disbursement of checks for agency expenses. * Organization of fiscal documents. * Regular meetings with Executive Director around fiscal planning. * Supervise and coach office manager on a weekly basis. |

Reports to: | CEO |

Year of experience: | * 3 years experience in Financial Management |

Education: | * MBA (Finance) * Strong background and work experience in Finance |

Major Responsibilities: | * Risk Management * Organizational Leadership * Organizational Effectiveness * Financial Management |

Designing Manager: | Saima Maqsood |

Job Title: | Designing Manager & Customization |

Functions: | The role art designer is wide and varied. As such it is an interesting role but requires multiple skills – there is almost nothing that is not involved in art & designing. * Creates New Designs * Taking enquiries from consumers * Demos to attract customers * Customization * Creativity |

Reports to: | CEO |

Year of experience: | 4 years. MBA (Marketing), MA (Fine Arts) * Designing * Customer Satisfaction * Customization * Ordering * Feed Back |

Education: | |

Major Responsibilities: | |

Legal Structure

Partnership

If two or more people start a business, they must organize as a partnership, corporation or limited liability company. Partnership organized as either general or limited partnership.

General Partner

General partnership is a form of business organization where two or more people pool their skills, abilities, and resource to run a business. The primary advantage of general partnership over a sole proprietorship is that a business isn’t dependent on single person for its survival and success. In fact in most cases how the businesses run say in how business is run. Most partnership has partnership agreement, which is the legal agreement. It is very important. Basically the partnership agreement details the responsibilities and the ownership shares of partner involved with an organization. The business is created by a partnership end at the death or withdrawal of a partner, unless otherwise stated in the partnership agreement

Advantages of a General Partnership

* Creating one is relatively easy and inexpensive compared to a corporation or limited liability company.

* The skills and abilities of more than one individual are available to the firm.

* Business losses can be deducted against the partners other source of income.

* It is not a subjected to double taxation.

Partnership Agreement

One of the main important things is partnership agreement. The Clauses at each partner bound with a company. In general are typically filing a certificate of partnership or similar document as evidence of existence. Some clauses of our agreement are.

1.) The criteria set between them each member bring 13% to invest in business remaining 22% comes from business angels.

2.) All the members are equal share profit and loss of the company.

3.) If any damage is done the entire partner are liable to payoff.

4.) We have five members and they all have equal ownership in business.

5.) One fourth the profit or losses would flow through to each partner individual and tax return

6.) Any member wants to leave the company he bound to find out another partner which is acceptable for all members.

7.) In the case of death his income or equal share given to its widow.

8.) If company wants to fill this gap they introduce a new partner with finance.

9.) If death partner widow want to sell out their shares all partner brought their share equally.

Sleeping partner

Our investor (Business Angel) will be a sleeping partner in our business. Currently we have enough funds to start the business on our own but we want to add additional partner to get sufficient funds that if we incur too many expenses in start us could cover them.

The liability of our business angel will be limited to the extent of his/her investment in the business. All other general members have unlimited liability. For that reason in case of liquidation of business sleeping partner must be paid first and rest of the amount must be distributed amongst the general partners.

Registration of trade mark

To avoid the copying of our name, logo, and our line of business we are having registration of all these. This is required that no one uses our name o logo in the market and any sort of unfair means by which Drive through Engineers have to suffer. To avoid the risk we are registered rights of all these.

Intellectual Property

The dark black background with dark blue shading

Having the abstract art of dots

Style- Viner hand ITC Size- 36 pt Colour code- b0ecee All the fonts in Capital words and 10 in numbers

Slogan Size- 12 pt Style- Calibri Colour code-b0ecee First word is capital & remaining words is small. Total 13 in numbers

Industry Analysis

In industry analysis we conducted survey and we mainly collected data through secondary resources that garment industry s quite feasible for us because through secondary data we have come to know that this industry is behaving similar to our business plan which we have described earlier.

Industry Description:

As we are doing retailing business so first I will be sharing about all the major ingredients of retailing industry. Retailers purchase items from a supplier or wholesaler for re-sale at a profit. The retailer earns his living by making a profit on the re-sale. To do this the retailer may offer only one type of product, where there is little competition, and use a substantial markup or the retailer may offer many different products or models, so customers will be certain to find an item to buy in this store and not in a competitor’s store.

Similarly we are doing the same but the point where we are trying our luck is the supplier’s margin. As we described have earlier in our business model that we have mold our business model to get benefit by becoming our own supplier. And secondly we are offering our customers many products so that we get an edge over our competitors.

Industry trends:

As far as Pakistan market is concerned it is nowadays facing a huge political turmoil, facing many other crisis & the important factor is that there is a world over recession. To start a new business and trying to capture new idea in this kind of atmosphere is quite risky especially in Pakistan but on the other way it is one of those progressive markets where there is a huge gap for new entrepreneurs to come & show the level of aptitude, skills & talent they have. We as entrepreneurs are doing so we are introducing the kind of retailing setup that will fulfill the needs of every class by focusing on the present trends that are being helpful in achieving its objective.

Industry size:

Yes there is a great market for new entrepreneurs in the market of Pakistan. Pakistan is one of the developing countries around the globe & it will surely support the people who are willing to do something that would bring a progress to its country. Although in Pakistan industry size in not very large but because of their focus on catering needs of the market we will surely make a mark in industry. And Kumas Wears is planning to make use of this opportunity by all means to play their part in the progress of its country by coming with idea of customization that would surely fill the current needs of customers.

Industry Attractiveness:

The future prosperity of our business depends upon the following important aspects:

KUMAS WEARS proudly presents itself as one of those new ventures who will fulfill all the negative attributes that are affecting the industry by having an edge over its competitors. Competitors of KUMAS WEARS says that they are providing a nice quality with a cheaper price and they try to make fool their customers by saying this but come to know the reality after experiencing and eventually they lose a customer soon after one sale.

Actually we are offering the kind of embroider cloth that would definitely attract the patrons because of its design that would be fulfilling the present day requirement & most of all it is the kind of business that promises to become a family member of every household etc. And retail industry in Pakistan is running the same way for so many years and there is a need of innovative ideas KUMAS WEARS plans to do so by bringing new form of business plan that will surely have a great impact on the retailing industry of Pakistan.

Profit potential:

Profit is something that comes after everything our more focus is on having our product in the hands of our patrons actually that is our profit. On the other hand if we look at its profit scale it is quite profitable business to start because outlets have taken a great position in our lives that where ever people thinks to buy something they look for a good outlet or retailer in market. So as far as profit is concerned our figures are crossed that we will attain a good position in market & will surely have a high profitability.

Market Segmentation

Market segmentation will help KUMAS WEARS to identify large market segmentation by converting it into smaller segments that can reached more efficiently and effectively with products & services that match the needs of our customers.

We would be focusing on following variables for market segmentation.

Geographic Segmentation

Dividing a market into different geographical units such as nations, states, regions, countries, cities or neighborhoods is known as market segmentation. KUMAS WEARS would be focusing on geographic segmentation as we are introducing the product only in the parameters of Lahore for the first year.

Demographic segmentation

Demographic segmentation would be helpful for KUMAS in dividing the market based on variables such as age, gender, family size, Family income, occupation, Education, religion, race, generation, and nationality.

Brand Strategy

Building Strong Brands

Brands are strong assets that must be carefully developed and managed. Kumas Wears knows it better & understands the importance of brands.

Brand Equity

Brands are more just names & symbols. They are one of the key elements in the company’s relationships with consumers. Brands represent consumer’s perceptions & feelings about a product and its performance. Brand exists in the minds of consumers.

For e.g. Coke, Pepsi, Tide, Harley Davidson etc are not only famous for its unique benefits or reliable services but are also famous for having deep connections with customers. Kumas Wears is also following the same pattern it wants to develop a friendly relationship with its customers because the success of product depends on our patrons.

Major Brand Strategy Decisions

1. Brand Positioning

There are three levels for positioning the brand in the mind of its patrons. Those three levels are.

* Attributes.

* Benefits.

* Beliefs & values.

* Attributes

At the lowest level brand is positioned on attributes. It would be like focusing on natural, environmental friendly etc. As attributes are least desirable as competitors can easily copy it. Kumas Wears would be least focusing on its attributes as customers are interested in what attributes will do for them.

* Benefits

Kumas Wears can focus on positioning by associating its name with desirable benefits like Kumas Wears has a slogan that is based on (Ready to Stitch).

* Beliefs and Values

But Kumas Wears would be focusing on values & belief which is not only mixture of attributes & benefits but also creating surprise, passion and excitement around the brand like our brand Kumas Wears which giving customers the kind of comfort & satisfaction they need through providing them the product which they want through customization.

2. Brand Name Selection

A good name can add greatly to a product’s success. However finding the best brand name is a difficult task. Kumas Wears took a careful review of the product & its benefits, the target market, and proposed marketing strategies.

Brand name selection consists of two parts. They are as follows.

* Selection

* Protection

* Selection

Kumas Wears took a broad survey while selecting its name so that no problem might occur regarding to it. Kumas Wears name & its slogan consist of following attributes.

* It suggests something about its product benefit and attributes.

* It is easy recognize, pronounce and remember.

* It is name is distinctive in its own way.

* It can easily be translated into foreign language.

* It is capable of legal protection and registration.

* Protection

Kumas Wears has also applied for its trademark registration so that it won’t get in the trouble regarding the name of its product as it is one of the biggest thing for the organization that its name is not been stolen by anyone.

3. Brand Sponsorship

An outlet has four sponsorship options. The product may be launched as a

* Outlet brand

* Private brand

* Co-branding

* Licensing.

* Outlet Brand

Outlet brands are those in which Company use its own name for launching the product. Outlet brand has an opportunity to dominate retail scene.

* Private Brands

A brand created or owned by a reseller of a product or service. Many companies are now a day’s using this method by having private brand names that are provided by some retail stores etc.

* Licensed Brands

Most manufacturers take years & spend millions to create their own brand names. However some companies license names or symbols previously created by other manufacturers, names of well known celebrities or characters from popular movies & books.

* Co-Branding

The practice of using the established brand names of two different companies on the same product.

As far as Kumas Wears is considered it is based on manufacturer’s brand as it has established its own brand name & will be catering the market with its own name.

Brand Management

For managing its brand Kumas Wears would be focusing on following steps.

* Firstly, Kumas Wears is spending quite an amount on its advertisement to create brand awareness and to build band preference and loyalty.

* Secondly, nowadays people come to know the product through personal experience with brand the brand, word of mouth, Company web pages etc. So Kumas Wears will be developing the kind of designs in a way that if one uses the other will definitely use it.

* Thirdly, the brand positioning will not take hold fully unless everyone in the company lives the brand. Therefore Kumas Wears would be training its people to be customer centered. Because there is a need that employees should know about the product & are enthusiastic about the product.

* Fourthly, Kumas Wears would be periodically auditing its brand strengths and weaknesses. it would be helpful in knowing what can be done to overcome the existing problems if the firm is facing it or not

Competitive position with target market

Competitor Analysis

To establish competitive analysis entrepreneurs need to focus on what their competitors of capable of, what kind of opportunities are available in the market, what you can do it improve yourself and to see where do we stand in the present scenario.

Identifying Competitors

The first step in a competitive analysis is to determine who the competition is. So the different type of competitor’s Kumas Wears will face.

Direct Competitors

These are the kind of competitors with whom Kumas Wears has to face a serious threat as they are going after the same competitor as a local firm. So we need to stern & be patient enough to face this threat as it is difficult for a new firm to break their loyal customers even having a better product. Kumas Wears are direct competitor include Libas, Rijas, Iffy etc.

Indirect competitors

These Competitors can also create a threat to Kumas Wears as they are offering the products that are close substitutes to our product like by making Embroidered stickers, tailor (Stitch on order) etc.

Future Competitors

These are the kind of competitors that are neither direct nor indirect but can become a threat to Kumas Wears by coming with new technology & high budget.

Porter’s Generic Competitive Strategy:

We are following differentiation strategy as a competitive strategy as we are competing on the basis of the focused differentiation of our reliable domestic products. Our products offer such attributes which are different from our competitors. So we are keeping product focused differentiation as our competitive strategy.

Sources of Competitive Intelligence

To deal with our competitors & to know their strategies we would be focusing on following points.

* Attended conferences & trade shows that were organized by our competitors.

* Talked to patrons about what motivated them to buy competitors product.

* By purchasing our competitors product.

* Studied our competitor’s website.

* Studied also information given on various websites by our competitors.

In above these simple rules we came to understand the present problems in the market which was quite helpful for us by making our competitive analysis grid.

Positioning

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the mind of target customers is known as positioning.

This is something very important because as it creates an image about our product in the minds of our patrons that how they perceive Kumas Wears. This positioning would be helpful in a sense as it would tell us that our patrons are willing to buy our product or not the more effectively we position our product the more will be demand for our product.

Positioning Statement:

When your clothes matter, when your image matters, when it’s important to communicate success & style, Kumas Wears dedicated to dressing “Ready to stitch” whatever the occasion is.

Competitive Analysis Grid

Competitive analysis grid is a tool for organizing the information a firm collects about its competitor.

Name | Kumas Wears | Libas | Rijas | Zardosi |

Product Features | Embroidered fabrics, customer focused embroidered stuff, customization | Ladies Embroidered or other stuff fabric. | Light weight, Medium Quality embroidered fabric | Embroidered stuff also have Handmade Embroidered Fabric |

Brand Name Recognition | Less cost high quality, customer’s choice | More Stuff | Medium quality | Durability |

Access to distribution Channels | _ | Whole sellers & Retailers | Retailers | Retailers |

Quality of Products | High | Medium | Medium | Low |

Ease of use | Yes | Yes | May be | Yes |

Price | Low | High | Medium | Medium |

Marketing Support | Advertising & Promotional campaigns | Adverting | Adverting | Bill Boards |

PEST Analysis

Political Factors

If we analyze the political situation of our country, we come to know that it is not in very good condition. Currently these problems are main and most important problem which our country is facing.

* The continuous change in power affects the policy making of the industry thus affecting our business in a negative way.

* Government seems failing in solving the problem of shortage of most important resource required to operate any industry and business that is electricity.

* The legislation is in hands of few people and they keep on changing it in ways that would benefit their sole interests.

* Government does not take interest in new establishing industries.

* Nowadays we are also facing an internal war situation in our Frontier Province which is also affecting us a lot and adding to already worsening political situation.

* International pressure groups are also there which are indirectly ruling our country

* For past many years like USA and others are used to interfere in our internal matters and they dictate our government according to their sole interests.

* In short, the political condition of Pakistan is not good or unstable.

Economical Factors:

Economic condition affects both capital availability cost and demand. Timing and relative success of particular strategies can be influences by economic conditions.

* As we look at the economical trends of Pakistan there is a high inflation rate which decreases the purchasing power of customers so economical factors might affect Kumas Wears.

* We can categories our economy into different segments, although the general economy of Pakistan is not in very good condition but still we can see development in some industries and sectors.

* There are some industries which are not affected by the current economic situation and we are seeing growth in these industries. Although the cost of goods manufacturing has increased and profit margins have decreased.

* Not only in Pakistan, but overall world economy is unstable.

* Our Pakistani industry is in introduction and growth stage in the trade cycle and we can hope for good in future, provided the political situation and overall world economy also stabilizes.

* We have got loan from IMF and World Bank on certain conditions. These conditions are also affecting our economy.

Social Factors:

Social factors include the demographic and cultural aspects. These factors affect customer needs and the size of potential markets.

* According to the current lifestyle people are getting busier in their work in some place husbands and wives both are the earners in case of this trend it create a demand of domestic help services so that people could get reliable services in their absence.

* Consumer attitudes and opinions are favorable towards trustworthy services which would bring comfort and ease to them.

* Now people are more aware of quality of services and are ready to pay a slightly higher price for durable and reliable services.

* Advertising and publicity has a major role in forming consumer attitudes and changing consumer buying behavior.

Technological Factors:

The frequent change in technology is a challenge these days. Pakistan is still far behind rest of the world in technology development, innovations, and research and development.

* Our product would be based on latest technology being used all over the world.

* Our R&D activities will continuous in our factory.

We have latest automated machines that would surely create big difference in the market.

SWOT Analysis

Strength

1. Kumas Wears defines the embroidered fabric in a different way on jeans and shirts as well which would act as a real success.

2. Kumas Wears includes all consumers ranging from almost every class especially for youngsters.

3. Mostly ladies want embroidered stuff in parties, functions, weddings etc.

4. It has different varieties of designs which look good when one apply on his cloth.

5. Kumas Wears provides their customers to choose their designs on their own choice.

6. It helps in choosing a suitable gift when one stuck in many choices.

7. Kumas Wears advertisement will be one of its biggest strengths.

8. Everlasting demand. 

Weakness

1. Kumas Wears requires patience as it will take to overcome its competitors.

2. Good advertising campaign needs high costs which is a setback to the company.

3. Our competitors can very easily copy our designs.

4. Kumas financial resources are limited.

Opportunity

1. Kumas wears requires more design in its products by time as it won’t earn the status of being a designers outlet.

2. As it is only launching in Lahore & when this concept of designing fabric gets success then we can target customers all over Pakistan.

3. It needs more designs by time to be resistant enough to fight back against its competitors.

Threats

1. Economic crisis of the country.

2. Political crisis of the country.

3. World over recession can have a great impact on firms profitability.

4. Its present competitors can create design that is similar to our designs.

5. It can become a magnet for new entrants as retailing is an easy business to start with.

SWOT Portfolio Framework

Competitive status of the Corporation Business Units

Strong | Average | Weak |

Compartment-A | Compartment-D | Compartment-G |

1. Internal Growth 2. Vertical integration of related business 3. Horizontal integration | 1. Merger 2. Vertical Integration 3. Strategic Alliance | 1. Turnaround 2. Divestment |

Compartment-B | Compartment-E | Compartment-H |

1. Vertical integration of related business 2. Horizontal related diversification | 1. Stability 2. Mergers 3. Horizontal Integration 4. Strategic Alliance 5. Divestment | 1. Turnaround 2. Divestment |

Compartment-C | Compartment-F | Compartment-I |

1. Horizontal related diversification 2. Conglomerate 3. Vertical Integration of business 4. Divestment | 1. Divestment 2. Horizontal related diversification 3. Horizontal unrelated diversification 4. Stability | 1. Liquidation |

TOWS Matrix

INTERNAL FACTORS | STRENGTH | Weakness |

EXTERNAL FACTORS | STRATEGIES – (SO) | STRATEGIES – (WO) |

O

P

P

E

R

T

U

N

I

T

I

E

S

S

| 1. Kumas wears has bring a idea of customization & style of wearing they should keep on making different types of embroidery designs to target market it at a large scales. 2. Learning the youngsters through new designs of embroidery is a unique idea 3. The way of advertisements is already a big strength of our product they should be very confident what type is designed & make appropriate strategies according to that. | 1. Good advertising campaign needs high costs & which may loss the masses of customers Kumas wears should overcome it by financial resources from different sources. 2. Distribution channels are limited for Kumas wears they loss the opportunity to get their product to their customer 3. Kumas wears financial resources are limited which can a loss of opportunities they should find new investors & banks for support them. |

| STRATEGIES – (ST) | STRATEGIES – (WT) |

THREAT

S

| 1. Economic crisis of the country is a big setback them can overcome it by focusing on the demand of the customer & design their product accordingly. 2. Threat of competitors can we overcome by product differentiation. 3. New entrant can be blocked by proper copy act rights & patent. | 1. Benchmark with strong competitors. 2. Join unions & trade associations. |

BCG MATRIX

BCG (Boston consulting group) matrix consists of four stages.

* Stars

* Question marks

* Cash cows

* Dogs.

STARS (High growth, high market share)

As far as textile industry (retailing) is concerned it is not having a very large share in market although it is having a higher growth rate in its industry & when Kumas Wears will be introduced it will surely attain a high share in market to reach at this stage it will take some time because it is just at introduction stage.

CASH COWS (Low growth, high market share)

Kumas Wears at start will surely have a low growth but by time as compare to its competitors it would be trying its best to become a star product and achieve highest market share as compare to its competitors.

DOG (Low market share, Low growth)

Textile industry (retailing) in Pakistan will never reach at a dog because it is the kind of industry that would never be closed as it is fulfilling the present needs of its customers. So, Kumas Wears has a great opportunity to reach at the highest rank unless some other competitors would come up with more innovative idea and new design that will create a big problem for it.

QUESTION MARKS (High growth, Low market share)

When comparing our company we will be a “Question mark” in the BCG Matrix because it will be new in the market and hence it will have a low market share initially. The market growth rate of our company will be relatively high because it will be in the introduction stage. Kumas Wears will be focusing towards the market growth by creating awareness in youngsters and it will help us in increasing the market share.

Revised BCG Matrix |

Maintain & Support | Divest |

Volume | Stalemate |

Specialization | |

| Unprofitable Fragmented |

Profitable Fragmented | |

Porter Model

Porter’s model is basically focused on analyzing the product in the industry that will it be worth of it or not. Kumas Wears is focusing on the five steps define by Michael porter to understand & analyze where does our product stands.

The five competitive forces that determine industry profitability are described below.

1. Threat of substitutes

The price that consumers are willing to pay for which customers are willing to pay depends upon on the availability of substitute products.

For example

Kumas wears has an average threat of substitutes which are Embroidered stickers, tailor (Stitch on order) etc. For this threat Kumas wears is ready to face this threat as we are confident about our product that it will surely bring a big change in the market & will bring a big threat to its substitutes.

2. Threat of new entrants

If the firms in an industry are highly profitable it becomes a magnet to new entrants .As Kumas wears is coming as a similar design but with some uniqueness in it would be facing a big threat of new entrants.

For example

Kumas wears is coming up with following measures that will bring a barrier to entry for new entrants.

* Product differentiation

Kumas wears has a separate budget for advertising that would bring a big barrier for other entrants as they would be having the first mover advantage.

* Cost Advantages Independent of Size

As it started with having its own suppliers it having a cost advantage because it is not paying a worth penny to anyone & if a new entrant will come as a competitor he will be bearing the cost of supplier in its business to start.

* Government and Legal Barriers

Kumas wears has already registered its patent trademark and copy right which will bring a big barrier to entry for other entrants in the market.

* Effective Management Team

Kumas wears brings effective management teams that are highly skilled, qualified and well experienced which will act as a barrier to entry for the new entrants

3. Rivalry among Existing Firm

In most industry the major determinant of company profitability is the level of competition among the firms already competing in the industry.

Kumas wears will focus on following factor to determinant the nature and the intensity of rivalry among the existing outlet it is facing.

* Number and balance of competitor

As our existing competitor have already gain a good status in market so if we will introduce our self with a product that is similar to theirs and will be attracting man of its customers. So what they will do is they will try to cut their prices that will affect Kumas Wear profitability. But Kumas Wears is ready to tackle this problem by having the kind of design & uniqueness that would surely not let its patrons go astray.

* Degree of Difference between products

As Kumas wears is offering a product which differs from its competitors it definitely bring out rivalry among them which will be cause of big competition as embroidery designs are made from same raw materials so Kumas Wears would not be able to compete on price because of using almost the same raw material for its product.

* Growth rate of an industry

As retailing industry is fast growth industry so it has enough customers to go around and fill the capacity of the most firms by making price cutting less likely. So this is the kind of threat that would rarely have an impact on Kumas Wears.

* Level of fixed cost

As Kumas Wears is having low fixed cost because of that reason it would not lead them towards price-cutting.

4. Bargaining power of Suppliers

We have no threat from suppliers because we are cutting the distribution and suppliers cost.

5. Bargaining power of buyers

Buyers can suppress the profitability of the industries from which they purchase by demanding price concessions or increase in quality.

As Kumas Wears in having a good quality product that would be having a low price it might not be affected by the following factors.

* Buyer group concentration

For Kumas Wears its customers would be its buyers & they have the ability that they might affect its profitability by exerting pressure on our firm by saying to reduce the price of our product otherwise they would stop buying our product.

* Buyers Cost

The greater the importance of an item is to a buyer the more sensitive the buyer will be to the price it pays. Customer might use this tactic to manipulate the price of our product but we have a backup plan for it which is that we would promise them the quality that is by giving them the same product anywhere they go by having a fixed cost. One thing more it is a customer psyche that some bargain for price & some may not.

* Degree of Standardization of suppliers product

The degree to which a supplier’s product differs from its competitors affects the buyers bargaining power. And as far as Kumas Wears is concern it’s not the issue as it’s his own supplier.

* Threat of Backward Integration

As Kumas Wears is a buyer itself so it has an opportunity to have backward integration if its manufacturers are not in favor of making quality product it can think to manufacture as well but not in early stages.

Determining the attractiveness of our industry using the five forces model

| Low | Medium | High |

Threat of Substitute | | | |

Threat of New Entrants | | | |

Rivalry Among Existing Firm | | | |

Bargaining Power of Supplier | | | |

Bargaining Power of Buyer | | | |

Product Feasibility & Strategy

Product Feasibility & strategy is an assessment of the overall appeal of the product or service being proposed. So, Kumas Wears benefited from following 2 products testing before introducing it in the present market.

Concept Testing

A Concept Test entails showing a distribution of the product to prospective user to gauge customer interest desirability & purchase intent. It will go through validation process which will help the company understand whether there product is compelling or not.

Kumas Wears will be focusing on following measures to check whether their product is compelling or not. They are as follows.

* Via phone interviews

* Personnel interviews

* Focus groups etc.

* To help develop an idea

Kumas Wears will show its product idea to prospective customers, get feedback & tweak the idea so that if there a need of change in our product before introducing it publicly.

* Estimate the potential market share product might command:

For that Kumas Wears will be making various survey questioners to check the potential of the product whether it has the capability to stay in market or not. For example our sample questionnaire would be like this.

Usability Testing

It requires that user of a product performs a certain task in order to measure the ease of use and the users perception of the experience as we have the limited budget so we will develop a fairly basic prototype and ask our friends and colleagues to use the product to complete an evaluation form or give a verbal feedback.

QUESTIONNAIRE

1) What age groups do u belongs?

* 13-18

* 18-25

* Above 25…

2) Is today’s youth conscious about their dressings?

* Yes

* No

* Depends

3) What do you think today’s youth like the most?

* Formal dressing

* Informal dressing

4) What kind of dressing do you like for formal occasions?

* More embroidered

* Medium

* Light

* Simple or Others

5) What of dressing do you like for informal occasions?

* More embroidered

* Medium

* Light

* Simple Or Others

6) Which brands do you like to wear?

* Libas

* Rijas

* Banarsi

* Zardosi

7) What is the most appealing factor to you?

* Price

* Brand

* Quality

8) What is your unmet need which could not satisfy you from other brands?

* Fine fabric

* Design

* Embroidery

* Quality at cheap price

9) If we fulfill your desired need under your disposable income, will you buy clothes from us?

* Definitely

* Probably

* Might be

10) If we launch innovative collection & designs, how much of you will adopt it?

* 20-30 %

* 40-50 %

* 60-70 %

* 80-90 %

11) Does price really matters in acquiring branded clothes?

* 50 %

* 60 %

* 75 %

* 85 %

12) According to you, which place is more convenient to you for shopping?

* M.M Alam road

* Calvary Ground

* Liberty

* Pace

13) Would you suggest our clothes to you friend and family?

* Yes

* No

* It depends

14) Which culture youngsters mostly follow now days?

* European culture

* Western culture

15) Would you be interested in accessories of male, like belts, cuff links and valets?

* Definitely

* Probably

* Might be

16) What do you think we can do best than our competitors?

* Suggestions.

We conducted a survey using the most appropriate tool i.e. the questionnaires in which we asked customers if concept of customization introduced in the market, would they like to but that innovative product or not. For this purpose we used a sample size of 100 and response we got is shown bellow graphically.

Pricing Strategy

In the current era companies are playing with the price. Price is the only factor which can generate revenue. So this is very necessary to make effective pricing strategies to compete in the market in long run.

The Kumas Wears product introduce to market with low pricing because we are cutting the distribution cost and has a help of a business angel which is promoting heavily in order to gain a large market share and associated economies of scale as quickly as possible and before competition builds. This method assumes that consumers are price sensitive.

Channels of Distribution

In our business model it is mentioned that our fabric is directly transferred to the outlet we are not involving any retailer and supplier we are directly dealing with manufacturer that is why we do not need any distribution channel.

Promotional

Promotion strategy is the heart of our marketing plan. It helps us to communicate to our target market to obtain our sales projections.

* Promotional Strategy and advertising

Kumas Wears will follow PULL Strategy by running a heavy promotional campaign to give our target market a happy learning in a different ways. Once people get well aware of the importance of our product specification, they will demand the product themselves, which makes our company to enhance the sales of the product.

Our promotions and advertisement instruments include:

* Billboards

* Business cards

* Bus boards/shelters

* Newspapers

* Internet – Banner advertising

* Magazines

* Personal selling

* Radio

* Signs board

* Television (cable TV)

* Campaigns in school, colleges and universities

Operations Plan

Method of production and service delivery

Our method of production is of two types one is commercial and other is through business angel. A fabric which is ready to stitch or you can call it un stitch fabric includes all the latest designs made by our designers which will b provided on the shelf’s of our outlet. Design will b provided by us on all type of base.

Second and most important part of our business is customization we allow our customer to select the base of their own choice and design as well which will b provided by us on promised time. Now questions arises is that from where we will make our customized fabric so let me tell u that it will be done by our business angel. Business angel provides us ease to design even a one suit.

Steps in Selling Process

Following are some of the steps Kumas Wears would be following to sell its products to prospective customers.

* Prospecting & Qualifying

The first step in the selling process that Kumas wears would be following is prospecting which would be that we will be identifying the qualified potential customers who will be buying & using our products. Our salespeople will be asking prospecting customers for referrals & cultivate other referral sources. There is also a great need to know how to qualify leads that would be done for identifying the good ones & screen out the poor ones.

* Reproach

As we know the best seller is one who has done homework on its patrons. This is what pre approach strategy and we would be giving training to our sales persons in way that when they meet their customers they know what they want.

* Approach

During the approach step, Kumas wears would be focusing on giving the sales person the training of how to meet and greet the buyer and get a good relationship start which would be include :-

* Appearance of the salesperson

* Opening ones

* Remarks

* Presentation and demonstration

This step would be consisting of the way our salesperson tells the product story to the buyer, highlighting the benefits it would be providing to its customer

The Kumas wears would be focusing on to create value for its products would be

* Good listening

* Empathy

* Honesty

* Dependability

* Thoroughness

* Follow through

* Handling Objections

This would be include about handling all the misconceptions that buyer would be having regarding that products, so that Kumas Wears would be arranging proper training program to give knowledge to its employees about the products to handle any queries regarding it.

* Closing

Closing is somewhat very important part of selling and Kumas wears knows that for this it will be having those candidates who are confident enough to click the sale and get the order from prospective customer.

* Follow up

The last step would be given attention by Kumas wears would be having the follow ups to after the sale to ensure customer satisfaction and repeat business because there is a wide chance that they can become our permanent customer.

Quality Control

The aim of Kumas wears is to follow the product concept which shows that the Kumas wears is very particular and do not compromise on quality of its product. We have the different level on checking the quality of the fabric as well as thread. Our aim is to provide the best quality to our customer on low price In terms of quality control the Company is relying on the following approach:

Quality Level

Ability of the product to perform its functions is performance quality. Kumas Wears focuses on quality levels as it supports its position in the market e.g. Kumas Wears will be offering various types of designs threads and bases like chiffon, cotton, khaddar etc to cater all levels of consumer market.

Quality Consistency

KUMAS WEARS relies on quality consistency as this product is free from defects and is consistent in delivering a targeted level of performance.

Customer Support

Customer Support Strategies

KUMAS WEARS would be following these simple rules that would surely support are product to be a big success

Make monitoring Integral to training

KUMAS WEARS will provide training to its employees and monitor them how they are working and telling them what are their demerits so that when they come in contact with its customer they would be fulfilling their needs & demands.

Making product delivery uniform across all distribution areas

KUMAS WEARS will be focusing on providing its customers same delivery services so that they won’t feel bad that they are not been given much importance.

Explaining real business needs to partners

It becomes immediately clear that a lack of communication between many organizations & their partners has forced heavily into climate disenchantment. So Kumas wears has planned a right game plan that would surely deal with its partners for its being a successful business.

Giving customer priority as no 1

Our mission statement is “our profit is our customer satisfaction”. So Kumas wears will never try lose focus on its customers and try to make thing better for them not worse otherwise what they will do is they will be going to vote us with their foot.

Customer Support Obligations

For Kumas wears ‘’our profit is our customer satisfaction’’. Customer are the reason of our business It is our aim to ensure that the customers enjoy the highest level of satisfaction from use of our reliable product. To fulfill this obligation towards its customers Kumas wears will provide easy access to its customers to get the most reliable, quality and assured product in town. Kumas wears receives feedback from its customers relating its product and we will try our best to maintain the kind of quality of the product. We will also be making surveys time to time through questionnaires to improve our product so next time we will provide the better product to customers through these kinds of strategies that will help strengthen customer relationship and build customer loyalty.

Financial Projections

Drive from financial advisers our business will start with the low amount of capital and not having very large capital in start but after starting the business after the certain periods the business will need the more capital to lead the business at specific level. All the partner of the business will invest in the business in equal ratio at which partners are agree to avoid any complication and the further amount will be get from the business angel and all the investor are bound to be the partner at least up to the five year. Before the five year no one can leave the business. This condition will help our business to have a required capital until to reach at the breakeven point and the business will able to provide something in return. The entire partner will be equally having the right of profit and liable for the loss as they invest equal ratio of amount.

Share Division:

As the equity amount presented by each member is equal so they would be equally share holder in profit or loss. This is described according to the percentage in the table presented below.

C.E.O | 16.6% |

Finance Manager | 16.6% |

Marketing Manager | 16.6% |

Operation Manager | 16.6% |

Brand Manager | 16.6% |

Designing Manager | 16.6% |

Chart of Share Division

Financials

Advertisement Plan

Medium | Channels/locations | Size/ duration/ day | Cost |

Cable | Sony , movie channel, music channel, | Duration (45sec ) | 75,000 |

News Paper Add | Express, dawn | Sunday | 35,000 |

Broacher | In newspapers | 5000 broachers | 25,000 |

Banners | 4 different places | – | 15,000 |

Billboard | 4 different places–change location every week | | 32,000 |

FM | CITY FM 89 | 15sec | 18,000 |

Total cost of advertisement per year | – | – | 200,000 |

Startup Cost | | | |

| | | |

Total Investment | | | 5,000,000 |

Building | | | 240,000 |

Furniture & Fixture | | | 400,000 |

Equipment & Machinery | | | 100,000 |

Misc. Expense | | | 200,000 |

| | | |

Stocks | | | 2,500,000 |

| | | |

Remaining | | | 1,560,000 |

Total Cost | | | 3,440,000 |

| | | Year 1 | Year 2 | Year 3 | Year 4 |

Income Statement | | | | | |

| | | | | | |

Sales | | | 2,920,000 | 3,112,000 | 3,323,200 | 3,968,844 |

| | |   | | |   |

Cost of goods sold | | 1,524,000 | 1,614,400 | 1,818,040 | 2,029,844 |

| | | | | | |

Gross Profit | | 1,396,000 | 1,497,600 | 1,505,160 | 1,939,000 |

| | | | | | |

Less: Expenses | | | | | |

Administrative | | 1,200,000 | 1,200,000 | 1,200,000 | 1,200,000 |

Marketing | | 620,000 | 400,000 | 200,000 | 200,000 |

Financials | | – | – | | – |

| | | | | | |

Total Expense | | | (1,820,000) | (1,600,000) | (1,400,000) | (1,400,000) |

| | | | | | |

Net Profit/Loss (before tax) | | (424,000) | (103,000) | 105,160 | 539,000 |

Income Tax | | 0 | 0 | 0 | 0 |

Net Profit/Loss | | (424,000) | (103,400) | 105,160 | 539,000 |

| | | | | | |

Balance Sheet | | | | | |

| | | | | | |

Current Assets | | | | | |

| | | | | | |

Cash In hand | | 1,626,000 | 1,791,600 | 2,140,660 | 2,010,950 |

Stock | | | 2,500,000 | 2,700,000 | 2,600,000 | 3,200,000 |

Non-current Assets | | | | | |

Machinery | | 100,000 | 90,000 | 81,000 | 72,900 |

Depreciation at 10% | | 10,000 | 9,000 | 8,100 | 7,290 |

| | | 90,000 | 81,000 | 72,900 | 65,610 |

Furniture & Fixture | | 400,000 | 360,000 | 324,000 | 291,600 |

Depreciation at 5% | | 40,000 | 36,000 | 32,400 | 29,160 |

| | | 360,000 | 324,000 | 291,600 | 262,440 |

| | | | | | |

Total Assets | | 4,576,000 | 4,896,600 | 5,105,160 | 5,539,000 |

| | | | | | |

Liabilities & Equity | | | | | |

| | | | | |

Capital | | | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 |

Retained Profit / Loss | | (424,000) | (103,400) | 105,160 | 539,000 |

| | | | | | |

| | | 4,576,000 | 4,896,600 | 5,105,160 | 5,539,000 |

Projected Cash Flows | | | | | |

| | | | | | |

Receipts | | | | | | |

| | | | | | |

Sales | | | 2,920,000 | 3,112,000 | 3,323,200 | 3,968,844 |

| | | | | | |

Total Inflows | | 2,920,000 | 3,112,000 | 3,323,200 | 3,968,844 |

| | | | | | |

Payments | | | | | |

| | | | | | |

Administrative Expense | | 1,200,000 | 1,200,000 | 1,200,000 | 1,200,000 |

Marketing | | 620,000 | 400,000 | 200,000 | 200,000 |

| | | | | | |

Total Outflows | | 1,820,000 | 1,600,000 | 1,400,000 | 1,400,000 |

Opening Balance | | | – | 1,100,000 | 2,612,000 | 4,535,200 |

Closing Balance | | 1,100,000 | 2,612,000 | 4,535,200 | 7,104,044 |

Sales Expected first year | 2,920,000 |

Contribution Margin= Net sales-Total Variable Cost

C.M= 2,920,000-912,000

= 2,008,000

C.M% of sales= Total Variable Cost/Net Sales

C.M%= 912,000/2,920,000

= 0.31

So psychological consultancy firm uses 0.31 out of every sales rupee to cover variable expenses, leaving 0.69 as a contribution margin to cover fixed cost and make a profit.

Break-even Sales= Total Fixed Cost/C.M% of sales

Break-even Sales= 2,008,000/.31

=647,741

Cash Inflows | | |

Year 1 | | | 4,546,000 |

Year 2 | | | 4,903,600 |

Year 3 | | | 5,463,860 |

Year 4 | | | 5,979,794 |

Cash Outflows | | |

Year 1 | | | 1,820,000 |

Year 2 | | | 1,600,000 |

Year 3 | | | 1,400,000 |

Year 4 | | | 1,400,000 |

Operating Cash Flows | | |

CF 1 | | | 1,100,000 |

CF 2 | | | 2,612,000 |

CF 3 | | | 4,536,200 |

CF4 | | | 7,104,044 |

Total | | | 15352244 |

Startup cost (CF 0) | | 3,440,000 |

Net Present Value

NPV= CF0 + CF1 + CF2 + CF3 + CF4

(1+r)1 (1+r)2 (1+r)3 (1+r)4

NPV = 3440000 + (1100000)/(1+.13)1+(2612000)/(1+.13)2+(4536200)/(1+.13)3+7104044/(1+.13)4

NPV = 2,016,044

As our NPV is positive therefore this project is feasible.

Note: After 7 year, we assumed a growth rate of 13% because with the passage of time awareness about our services will enhance resulting in increase in number of our customers and the it is the current rate of return in market.

Internal rate of return:

IRR = 16.55% (IRR>cost of capital)

As IRR is positive and greater than cost of capital i.e. 13% therefore this project is feasible.

Operating Risk:

For minimizing this risk in our company we are hiring less people because smart business plans are done on the basis of small structural business modules. For cutting the operational cost we are making our policies and operations more strong rather than increasing the staff members and increasing other related costs.

Financial Risk:

As we are doing boot strapping in shape of land, under the contract of certain years so

* if we could not recover the cost it can become our financial risk and

* our creditors may cause us trouble as well if we become fail in making profits and recovering our cost, due to some reasons

* If the demand decreases or the inflation becomes high in society etc.

* if our currency devaluates it can also cause some troubles in financing needed right accounting treatment

* finance – Wealth Management

Intellectual property infringement:

Our intellectual property is our designs of dresses; a great risk exists here because that can be easily copied by other brands and companies so for avoiding this factor we made our designs registered so that we can reduce this risk.

Management Risk

The management risk for ready to stitch that the management team is handling the business day to day routine and also dealing with the staff of servants it may be too much work for the management to work on at the same time. So we are suggesting that the company can hire managers trained in human resource to work with the staff so management can focus on the company’s big picture. Our focus goal is minimizing risk exposures. We thrive to deliver innovative solutions, tailor-made products and services at competitive costs. By working together, we help to develop best practice systems to identify gaps in your risk management system, operational insurance program, and to reduce these adverse exposures to the minimum.

Our Capabilities

* Property Damage & Business Interruption

* Machinery Breakdown & Machinery Breakdown Business Interruption

* Public Liability

* Product Liability / Product Recall

* Transit

* Environmental Liability

* Business Interruption Review

* Risk Retention Analysis

* Risk Management / Risk Improvement

* Merger & acquisition

Marketing Risk

Marketing department is the part which plays important role; risk in this the factor which we cannot ignore so we need to assure that risk factor must be tackled in a way that it cannot affect the co. Our company is about the stuff which focuses on ready to stitch material so our marketing department is focusing on very strong marketing technique because it is the back bone of our business type because it is retailer type business rather than manufacturing and producing.

Exit Strategy

If we somehow wanted to sell our business we would be focusing it to sell our business to someone who is a friendly buyer. As we had launched the business with great effort we would be emotionally attach to that business as we know it is easier than liquidating the business than to sell the business to someone who would surely preserve legacy of our business. This may include anyone like customers, employees, children or other family members.

Although it has some pros and cons but we will make such kind of backup plan that will not ruin our business afterwards by making a legal contract that would be signed by the buyer with some terms & conditions mentioned in it.

Its pros & cons are as follows.

Pros

1) You know them. They know you. There’s less due diligence required.

2) Your buyer will most likely preserve what’s important to you about the business.

3) If management buys the business, they have a commitment to making it work.

4) Selling to family makes good on that regrettable offhand promise made 30 years ago,

“Someday, son/daughter, all this will be yours.

Cons

1) You can get so attached to being bought by someone nice that you leave too much money on the table.

2) If you sell to a friend, they’ll be peeved when they discover they just bought the liability for that decade’s worth of taxes you forgot to pay.

3) Selling to family can tear the company apart with jealousies and promotions that put emotion way ahead of business needs.

Back up Exit Strategy

As we know that entrepreneurs are those who make right decision at right time. So if somehow we would not be able to find the right person whom we would think that he will not do justice to our firm what we will do is we will use the Acquisition strategy in which we would be having a joint venture with another company that would be helping our firm to sustain in market like we would merge our firm with any other firm.