hi milk n slice final slidess latest
Post on 06-Apr-2018
228 Views
Preview:
TRANSCRIPT
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
1/52
Roots College International
Team MembersFaaiz Irfan
Raahim Khan
Sania Ahmed
Zahra Urooj
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
2/52
The Business in which we deal
BASIC IDEA
Supplying fresh milk in transparent glassbottles along with freshly baked bread.
Door step service
Ensuring quality & hygiene
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
3/52
The Business Continued
Name of the company
HI Milk n Slice
Company logo
Now Health is Safe and Rich
HI stands for
Hygiene
Health
High standard
High quality
Integrity in dealing
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
4/52
The Business Continued
Vision:
To be known as pioneer of healthy enriched dairyproducts in the town and to increase customersatisfaction.
Mission:We strive to use our God given talents to provide wholesome products,
honest service and value to our customers.This means: Our standard is to produce the highest quality milk.
We strive to serve our customers beyond their expectations. We intend to provide a safe and pleasant workplace, and reward our team
members for achieving the highest quality and service to customers.
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
5/52
Objectives
Achieve an increase of 30% in sales in first 6months.
Maintain a healthy average gross profit margin.
Develop a business model that is favorable toexpansion.
Offer our customers a superior product, at affordableprice, and provide quality customer service
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
6/52
Keys to Success
Unique product combination
Quality controls: consistency, cleanliness.
Service: professional, on-time.
Marketing: positive image, word-of-mouth
advertising.
Customer focus: convenience
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
7/52
Description Of The Business
The company aims to provide high quality, fresh &healthy milk and bread to all customers.
4 business partners
10-12 employees
3 delivery vans & 2 motor bikes
Service provided to some areas of Islamabad
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
8/52
Description Of The Business
Procurement of milk and bread will be outsourced.
Contract with the local glass manufacturing company
Empty glass bottles will be recollected
Payment from customers will be on monthly basis and inadvance
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
9/52
Profit Plan
The business will build profitable relationships andcreate customer delight, by observing the following;
Good quality Health and safety
Reasonable price scale
Delivery
Speed
Moral values
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
10/52
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
11/52
Our Principal Of Cost Reduction
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
12/52
Marketing Plan
The business targets a wide market aspure milk and bread are the primaryneeds of every house
Product
Fresh milk in glass bottles alongwith fresh bread supplied at thecustomers doorstep.
Milk will not be pasteurized orchemically treated.
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
13/52
Packaging
For milk packaging, glass bottles will be used withthe companys logo on it.
Glass is a heat insulator and will help in preventingthe milk from being spoiled in summers.
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
14/52
Price
Competitive price
Milk will be provided at a price of Rs.78/ 1 x litre
bottle, Rs. 155/ 2 litre bottle,Rs.385/5 litre andRs.40/ half a litre.
Bread will be sold for Rs.56.
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
15/52
Promotion
Effective advertisement through word of mouth.
Other sources will also be used;
Newspapers
Pamphlets Media
Internet
Promotional slogan: Lets start getting healthy..
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
16/52
Place (distribution)
Three air-conditioned vans and two motor bikes will be
used for delivery purpose.
Vans will have proper containers for milk bottles.
Milk and bread will be delivered in the morning between6:45:00-8:30 A.M
This service will be available, on request basis, in theevening as well .
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
17/52
Procurement Plan
Contract with local farm (s) for milk procurement
Contract with a local bread manufacturer
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
18/52
Quality Control Plan
Strict check on quality control by quality coninspector employed for the purpose
Separate department for quality management Quality management principles will be kept in
mind
5 S will be followed Kaizen will be followed
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
19/52
Financial Plan
Initial investment available: Rs. 2,000,000 Initial Estimated Costs (Including capital
expenditure): Rs.1,852,000
Required Profit per quarter: Rs. 120,000
20% of the profit will be kept as contingencyreserves.
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
20/52
Cost of milk per litre: Rs.60 Estimated milk requirement: 300 litres/ day
Daily purchasing cost of milk: 300x60= Rs.18000
Quarterly purchasing cost of milk: 18000x90= Rs.16,20,000
Cost of bread per loaf: Rs.50 Estimated bread requirement: 50/day
Daily cost on bread: 50x50= Rs.2,500
Quarterly cost on milk: 2500x90= Rs. 225,000
Financial Plan contd
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
21/52
Cost of Milk& Bread Calculated
Milk Purchase price per liter 52
Fuel (Calculated per liter) 5
Other(Octroi,etc) 3 60
Bread
Purchase price per loaf 45
Fuel (Calculated per liter) 2
Other(Octroi,etc) 3
56
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
22/52
Financial Plan contd
Sale price of milk per litre: Rs.78
Estimated milk requirement: 300 litres/ day
Daily sales (milk): 300x78= Rs.23400
Quarterly sales (milk): 23400x90= Rs. 2106000
Sale price of bread per loaf: Rs.56
Estimated bread requirement: 50/day
Daily sales (bread): 50x56= Rs.2800
quarterly sales (milk): 2,800x90= Rs. 252000
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
23/52
Comparison Customer Vs Milk
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
24/52
Initial Cost
Total
requirement Price (Rs) Total Cost (Rs)
Delivery Vans1 350,000/
each100,000(installments)
Motor bikes4 45,000/
each180,000
Equipment (Deep
freezers)*som
e others
equiptments
85,000 85,000
Bottles 1000 8/each 8,000
Computer 1 8000 8000
OfficeFurnishing
25,000 25,000
Big Drums(150liters)
3 5000/each 15000
Rs. 421,000
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
25/52
Salary Expense
Number of
people
Salary per
head (Rs)
Aggregate
Salary (Rs)
Total (Rs)
Quality Manager 1 12,000 12,000 12,000
Labor force
Driver (full time) 2 8,000 16,000
Driver (part time) 1 4,000 4,000
Delivery boy (fulltime) 2 5,000 10,000
Delivery boy (part
time)
2 2,500 5,000
Labor 2 3,500 7,000
42,000Office Staff
Computer operator 1 9000 9000
Assistant 1 8000 8000 17,000
Sub total 71000
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
26/52
Market
Target MarketMarket Analysis
Competitors
Competitive Advantage
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
27/52
SWOT Analysis
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
28/52
Strengths
Dairy industry is the major source of food i.e. milk,meat, butter, cream, cheese, ghee. There is an extensive scope of milk production as
Pakistan is the 5th largest milk producing country in theworld.
The business is aimed to provide High Quality, pure,fresh and hygienic milk to its customers
Delivering fresh bread with milk is a new concept Free delivery at the doorstep of the customers. Business will use the valuable concept of Total Quality
Management
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
29/52
Weaknesses
Maintenance and sustainability of quality of thetwo products (milk & bread) is a challenging anddemanding task.
The business is a new entrant in the market inPakistan .
Business lacks the brand power.
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
30/52
Opportunities
Government of Pakistan and institutions like,SMEDA are taking immense interest in developingthe dairy sector. The same is true for private dairyfarms/ industry
Dairy products needs are much higher than thesupply.
Supplying fresh milk in glass bottles is a new andunique idea in Pakistan. It has not been used byany company in the country.
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
31/52
Threats
Monopoly of multinational firms.
General public is usually resistant to change andhesitate to adapt quickly to new products.
Competition in the market.
Bargaining power of suppliers
Risk of rejection of the idea by the masses.
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
32/52
Management Structure
Partners will enact the overall plan
Communication
Employee Policies
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
33/52
Income Statement
HI Milk n SliceIncome statementFor the year ending December 31,2008
Sales (Included sales tax Rs.1509120) 9432000Cost of goods sold (7380000)Gross profit 2052000
Operating expenses :Salary expense(as per statement) (852000)Rent expense (160000)Utility bills expense (120000)Office supplies expense (60000)Fuel expense (120000)Maintenance expense (40000)Advertising expense (22000)Depriciation (32100)Installement(Delivery Van) (96000)
(1700100)
------------
Net income 351900
*It is assumed that installment paid for delivery van is equal to its depreciation, so installment
paid is considered as revenue expense.
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
34/52
Appropriation A/c
HI Milk n SliceProfit/Loss Appropriation A/c
For the year ending December 31,2008
Net Profit 351900351900
Less: Share of Profit:Raahim (30%) 105570Sania(20%) 70380Faaiz(20%) 70380Zahra(30%) 105570
(351900)X
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
35/52
Current A/cFor the year ending on December 31,2008
DrRaahim Sania Faaiz Zahra
CrRaahim Sania Faaiz Zahra
Drawings
Bal c/d
80000
25570
60000
10380
60000
10380
80000
25570
Share of
profits
105570 70380 70380 105570
105570 70380 70380 105570 105570 70380 70380 105570
Bal b/d 25570 10380 10380 25570
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
36/52
Cash BookFor the year ending on 31st December,2008
Investment(Capital) 2000000 Purchase of Assets 321000
Sales 9432000 Cost of Sales 7380000
General Sales Tax(Received) 1509120 Miscellaneous Expense 1668000
Drawings 280000
Balance 3292120
12941120 12941120
HI Milk n SliceCash Book
HI Milk n Slice
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
37/52
Balance SheetFor the year ending on December 31,2008
.Fixed Assets: Cost Dep(@5%/annum) Book Value
Motor Bike 180000 18000 162000
Equipment 85000 8500 76500
Bottles 8000 800 7200
Computer 8000 800 7200
Office Furniture 25000 2500 22500
Big Drums 15000 1500 13500
288900
Current Assets:
Cash 3292120
Less: Current Liabilities
General Sales Tax Reserve (1509120) 1783000
Capital Employed 2071900
Financed By:
Capital: Raahim 600000
Add: Current A/c 25570 625570
Capital: Sania 400000
Add: Current A/c 10380 410380
Capital: Faaiz 400000
Add: Current A/c 10380 410380
Capital: Zahra 600000
Add: Current A/c 25570 625570
Capital Employed 2071900
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
38/52
Income Statement
HI Milk n SliceIncome statement
For the year ending December 31,2009
Sales: 10375200Cost of goods sold (8118000)Gross profit 2257200
Operating expenses :
Salary expense(as per statement) (90000)Rent expense (180000)Utility bills expense (135000)Office supplies expense (75000)Fuel expense (132000)Maintenance expense (75000)Advertising expense (100000)Depreciation (32100)Installement(Delivery Van) (96000)
(1725100)
------------
Net income 532100
*With the start of the new year, the sale price has increased by 15%; whereas, cost
prices are increased by 10%
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
39/52
Appropriation A/c
HI Milk n SliceProfit/Loss Appropriation A/c
For the year ending December 31,2009
Net Profit 532100532100
Less: Share of Profit Raahim 159630Sania 106420Faaiz 106420Zahra 159630 (532100)
X
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
40/52
Current A/cFor the year ending on December 31, 2009
Dr Raahim Sania Faaiz Zahra Cr Raahim Sania Faaiz Zahra
Drawings
Balance
c/d
40000
105200
35000
56800
37000
56800
45000
105200
Bal b/d
Share of
profits
25570
159630
10380
106420
10380
106420
25570
159630
185200 116800 116800 185200 185200 116800 116800 185200
Balance
b/d
105200 56800 56800 105200
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
41/52
Cash BookFor the year ending on 31st December,2009
Cash Balance 3292120 Cost of Sales 8118000
Sales 10375200 Miscellaneous Expense 1693000
General Sales Tax(Rec) 1660032 Drawings 280000
General Sales Tax(Paid) 1509120
Balance 3727232
15327352 15327352
HI Milk n SliceCash Book
HI Milk n SliceBalance Sheet
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
42/52
Balance SheetFor the year ending on December 31,2009
.Fixed Assets: Cost Dep(@5%/annum) Book Value
Motor Bike 180000 36000 144000
Equipment 85000 17000 68000
Bottles 8000 1600 6400
Computer 8000 1600 6400
Office Furniture 25000 5000 20000
Big Drums 15000 3000 12000
256800
Current Assets:
Cash 3727232Less: Current Liabilities
General Sales Tax Reserve (1660032) 2067200
Capital Employed 2324000
Financed By:
Capital: Raahim 600000
Add: Current A/c 105200 705200
Capital: Sania 400000
Add: Current A/c 56800 456800
Capital: Faaiz 400000
Add: Current A/c 56800 456800
Capital: Zahra 600000
Add: Current A/c 105200 705200
Capital Employed 2324000
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
43/52
Income Statement
HI Milk n SliceIncome statement
For the year ending December 31,2010
Sales: 11412720Cost of goods sold (8918000)Gross profit 2494720
Operating expenses :
Salary expense (as per statement) (940000)Rent expense (200000)Utility bills expense (150000)Office supplies expense (85000)Fuel expense (180000)Maintenance expense (100000)Advertising expense (50000)Depriciation (32900)Installement(Delivery Van) (96000)
(1833900)
------------
Net income 660820
*With the start of the new year, the sale price has increased by 15%; whereas, cost
prices are increased by 10%
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
44/52
Appropriation A/c
HI Milk n SliceProfit/Loss Appropriation A/c
For the year ending December 31,2010
Net Profit 660820660820
Less: Share of Profit Raahim 198246Sania 132164Faaiz 132164Zahra 198246 (660820)
X
/
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
45/52
Current A/cFor the year ending on December 31, 2010
Dr Raahim Sania Faaiz Zahra Cr Raahim Sania Faaiz Zahra
Drawings
Balance
c/d
200000
103446
100000
88964
100000
88964
200000
103446
Bal b/d
Share of
profits
105200
198246
56800
132164
56800
132164
105200
198246
303446 188964 188964 303446 303446 188964 188964 303446
Balance
b/d
103446 88964 88964 103446
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
46/52
Cash BookFor the year ending on 31st December,2010
Cash Bal b/d 3727232 Purchase of New Bottles 8000
Sales 11412720 Cost of Sales 8918000
General Sales Tax(Rec) 1826035 Miscellaneous Expense 1801000
Drawings 600000
General Sales Tax(Paid) 1660032
Balance 3978955
16965987 16965987
HI Milk n SliceCash Book
HI Milk n SliceBalance Sheet
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
47/52
Balance SheetFor the year ending on December 31,2010
.Fixed Assets: Cost Dep(@5%/annum) Book Value
Motor Bike 180000 54000 126000
Equipment 85000 25500 59500
Bottles 16000 3200 12800
Computer 8000 2400 5600
Office Furniture 25000 7500 17500
Big Drums 15000 4500 10500
231900
Current Assets:
Cash 3978955
Less: Current Liabilities
General Sales Tax Reserve (1826035) 2152920
Capital Employed 2384820
Financed By:
Capital: Raahim 600000
Add: Current A/c 103446 703446
Capital: Sania 400000
Add: Current A/c 88964 488964
Capital: Faaiz 400000
Add: Current A/c 88964 488964
Capital: Zahra 600000
Add: Current A/c 103446 703446
Capital Employed 2384820
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
48/52
Social Benefits
Environmental Friendly
No waste ( In terms of used Milk Cartons)
More Close to Nature No added Preservatives
Direct from Farm Approach
Guaranteeing convenience by providing the products
at doorstep
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
49/52
Economic Benefits
Employment opportunities.
By ensuring /Business will provide hygienic milk andbread so it will help in lessening diseases that willindirectly help in improving economic conditions.
Competition will increase with the introduction of thebusiness. This will have a positive impact on themarket.
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
50/52
Future Plans
Acquisition of a farm
Diversification
Other Dairy products
Cottage Cheese Butter
Skimmed/ Unskimmed milk etc
Different types of bread
Cookies, Plain cakes
Net present value analysis
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
51/52
Net present value analysis
Year Cash flows Present value
interest factors @20 %
0 (20,00,000) 1 (20,00,000)
1 3292120 .83 2732460
2 3727232 .69 2571790
3 3978955 .57 2268004
Net present Value(7572254-20,00,000) 5572254
The Net present Value is Rs 5572254 is Positive ,so the it is feasibleto start the business.
-
8/3/2019 Hi Milk n Slice Final Slidess Latest
52/52
Thank You!!!
top related