Introduction to

Business
PROJECT: SMALL BUSINESS PLAN

PROJECT NAME: PAK FOOD AND BEVERAGE

MANUFACTURING COMPANY (FRESH UP JUICE)

PRESENTED TO: MS ABIDA SHAEN

PERPARED BY:
FARAH NAZ
ABDUL SAMAD
M.FARRUKH SIDDIQUI

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 Table of Content

Sr. # Topic Page#

1. Mission, Our Vision, Objectives, SWOT 3
2. Industry Environment, Firm Type, Location
of the business, Raw material, Raw 4
material purchasing, Machines, Machines
purchasing
3. Frest up juice (our product), Nutritional 5
value of Mango, Nutritional value of
Oranges
4. Health benefits of juices, Product 6
5. Marketing plan, Marketing strategy and 7
segmentation
Purchasing behavior of customers, Target
market ,
Price
6. Promotion Strategy, Distribution channel, 8
Implementation control, Related Business
Association for This Industry
7. Competitors 9
8. Organization Structure 10-11
9. Policies Regarding Labour 11-13
10. Feasibility Report 13-14
11. Budget 15
12. Financial Plan 16
13. Arrangement Of Finance 16
14. Bank Requirements, 17
Methods Of Accounting
15. Tax Liability Issues 18
16. Cash flow sensitivity analysis work sheet 19
17. Measurement of the price of the unit 20
18. Registration requirements 21-22
19. Assumed cash flow 23
20. Assumed balance sheet 24

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 Mission

Build branded food business to improve quality of life by offering tasty,

affordable and highly nutritional products to our consumers.

Our Vision

Most innovative and newly emerged juice manufacturing company

offering product enjoyed by “every one every day”.
Dedication to quality is a way of life at our company.
In its activities company will pursue goals aimed at the achievement of
quality and succeed as a profitable business.

Objectives

 To become an eminent, progressing and stable company within 5

years.
 Gain customers trust through quality.
 Spread awareness and information (about product, quality and
taste) on large scale through marketing, within 3 to 5 years.
 To enhance the quality of life of our customers
 To pay our role in the economic development of our company

SWOT

Strengths:

Our product’s quality will be our main strength and also, there is
always a presence of demand in market for the whole year for our
product

Weakness:

People don’t have awareness about our product yet.

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Opportunities:

Since Pakistan is an agricultural country, so there are a lot of

opportunities in food manufacturing Industry.

Threats:

Established competitors and afterward new entrants can bring better

products and use much better promotional activities to compete our
product.

Industry Environment

Pakistan is blessed by the climate ideally suited to the farming of all

kind of fruits-rich in taste and flavour: sweet, mellow and juicy. For
centuries Pakistani farmers have been developing newer strains of fruit
by grafting one exotic variety by another. Right now in Pakistan there
are many eminent names in food and beverages manufacturing
industry, nationally and internationally for instance: Shezan, Mitchells
and Haleeb Foods. The demand of Pakistani food products is increasing
day by day, both at home and abroad.

Firm Type: Partnership

Location of the business: Site area Karachi

Raw material:

Water, sugar, orange juice, acidity regulators, Ascorbic acid,

stabilizers, mango juice, natural and imitation flavors, color.

Raw material purchasing:

Water, sugar, Oranges, Mangoes, stabilizers, color and natural and

imitation flavors will be purchased from Joriah Bazaar
And acidity regulators and ascorbic acids will be import from Europe.

Machines

 MAX PACK machine will be used for packaging purpose

 SIMENS manufacturing machine

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 Machines purchasing

 MAX PACK will be purchased from Spain

 SIMENS manufacturing machine will be purchased from Germany

Frest up juice

Frest up juice is a product of Pakistan food industries is going to be

launched in market very soon.

It’s a pure fruit juice product hat has very different and unique flavor
mango and orange.

It is very well received by the customers when we were doing market

sanvey for our product.
Nutritional value of Mango

• Mangoes are a rich source of vitamin A and E.

• Have good amount of vitamin B and C.

• They are high in fiber, contain calcium, iron and potassium and
also a small amount of carbohydrates and protein.

• Mangoes also contain useful amount of iron, nicotinic acid and

potassium.

• Mangoes are good for immune system and reduce the risk of
cancer and heart disease.

• Only one serving that is ½ medium mango, contain 40% of your

daily vitamin A and 15% of your daily vitamin C requirements.

• Mangoes will not even interfere with your diet because a ripe
mango contain water, but little carbohydrates and no fat so a
medium sized mango has an average calorie count of only 95!

No wonder mangoes are so popular-They are

deliciously healthy!

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 Nutritional value of Oranges
• Oranges, as part of citrus family, is rich in vitamin C as well other
micro-nutrients , fiber and also protects against infection and
cancer.
• It is also rich in beta-carotene and bioflavonoid.
• A small orange contains generous levels of folates, potassium
and thiamine as well as some calcium and magnesium.
• Oranges are low in calories
• It also contain no sodium, saturated fat or cholesterol.
• One average orange contain 60 calories.
Oranges are so appealing-No wonder they are loved
by every one!

Health benefits of juices

Juices are consumed for health benefits. for example: Orange juice
is a good source of vitamin C and apple juice is rich in IRON and
mango juice is rich in vitamin A and E.
Fruit juice consumption all over Europe, Australia, U.S.A and
Pakistan has increased in recent years probably due to public
perception of the juices as a healthy natural source of nutrients and
increased the public interest in health issues.
The perception of fruit juice as equal in health benefits to
consumption of fresh fruit has been questioned due mainly to the
lack of fiber and processing they endure. The amount of fructose in
fruit juice when not used with fiber, have been suggested as a
contributor to the growing diabetes epidemic in the west. High-
fructose corn syrup an ingredient of many juice cocktail, has also
been linked to increased incidence of type 2 diabetes. The high
consumption of juices also linked to people putting on extra weight.

Product

Feature:

A fruits juice product made from best quality orange and magoes
which will provide both good heath and scrumptious taste.

Flavor

Orange mixed with mango.

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Packaging

Standard packaging will be available in packaging 400 ml

Place

Our product will be available in all the urban area of country. And our
object is to make sure the fresh up juice is available in all the super
stores local shops, canteen of school, college universities of all the
cities

Marketing plan

Our marketing plan for frest up juice is made to achieve following goals
or objective.

 To create awareness about the product and is taste through

advertisement and sales promotional activities and like free
sample distribution big discount on the launch of the product

 To ensure availability product.

 Time required for the campaign is at least 1 year.

Marketing strategy and segmentation

We will be using undifferentiated marketing strategy and segmenting

marketing on geographic and demographic variable in demographic we
will be targeting consumers of all ages especially and consumers of
middle to upper class.

In geographic segmentation we will be segmenting the market of

urban areas

Purchasing behavior of customers

 30% customer of fruit juice are of ages 5-13 years

 50% customer are of age 13-30 years

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  20% of then are above 30

Target market

The target market of frest up juice will be customer who likes to drink
juices and energy drink on daily basic. Observing buying behavior of
fruit juice lovers we came to know that for marketing purpose we
should target following area.

 School
 College and universities
 Parks and melas

Price

Looking at competitors strategies and making a product affordable we

have set the pricing approach and strategies.

 Pricing approach used for the product is cost plus margin and
competitive base approach.
 Pricing strategy used for setting the price is market penetration
pricing
 Price of the product is Rs.31
Promotion Strategy
Keeping in view the fresh up juice’s current status, we have
to work hard on promotional activities. We have to make
sure that through competitive and powerful marketing
strategies we create strong image in mind for that we will be
using push strategies which is used when consumer aren’t
much aware of the product & company wants to create
demand for the product.
Distribution channel

For our product we will be using following channel for

distribution our product.

Indirect distribution channel

Company--------------> wholesaler---------->retailer
-----------------> consumer
Direct distribution channel

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Company---------------> retailers
Company -------------->consumer

Implementation control

To make sure that our plan became successful we have to

make sure that following thing are being checked and
controlled for making our plan successful.
 To meet the demand there is a stock of product
available.

 To know what are customer needs and their demand.

 To get customer feedback and get customer informed

about our product frest up juice

Related Business Association for This Industry

Karachi Chamber of Commerce

Phone: 92-21-9218001-9
E-mail: info@karachichamber.com

Pakistan German forum (PGBF)

Phone: 92-21-5655701-02
E-mail: PGBF@super.net.pk

Competitors

Company: Coca Cola

Location: Site Area, Karachi
Competing product: Minute maid
Industry: food and beverages manufacturing
URL: www.thecocacolacompany.com

Company: Shezan
Location: 56-bund road, Lahore- 54500
E-mail: Shezan@brain.net.pk
Industry: food& beverages manufacturing
URL: Http://Shezan.info
Competing product: bottle juice

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 Company: Halab food limited Pakistan
Location: ferozpur road, Lahore, Pakistan
Revenue: 9 billion
Competing product: Haleed tropico
URL: www.haleebfoods.com

Company: Mitchell fruit farms limited

Location: 39-A, D-1, Gullberg 111, Lahore
Industry: food manufacturing
Company product: fruit juices.
E-mail: www.mitchells.com.pk

ORGANIZATION STRUCTURE

FAINACE DEPERMENT

Initially organization required 1 manager, one assistant

manager and 3 employees

JOB DESCRIPTION

To maintain the work sheet, income statement, balance

sheet, organization budget and accounting cycle.

QUALIFICATION REQUIRMENT

Assistant manager qualification required MBA in FINANCE

(2.5 GP) and one year work experience and BBA or B.com in
(1division or above 2.5 GP)

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MARKETING DEPERMENT

Initially organization required 1 manager, 1 assistant, 3 sale

promotions staff, 1 store manager and 3 salesmen.

JOB DECRIPTION

To analyze the market environment, sale analysis, check the

market demand of product, promotion of product and ability
to create new ideas.
QUALIFATION RQUIRMENT

Qualification required MBA in marketing (2.5 GP) with one

year experience and
BBA or B.com (1 division or 2.5 GP)

PRODUCTION DEPERMENT

Initially organization required 1 manager, 1 assistant

manager, 3 employees.

JOB DECRIPTION

To maintain the production, manage the agents of company,

control the production area.

QUALIFATION RQUIRMENT

Qualification required MBA or M.com (2.5 GP) and BBA OR

B.com (1 division or 2.5 GP)

IT Department

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Initially organization required 1 manager, 1 assistant
manager and 3 co-workers

JOB DECRIPTION

To control the networking and maintains the database.

QUALIFATION REQUIRMENT

Qualification required MS in IT and diploma in IT.

TECHICNAL DEPARTMENT

Initially organization required 1 manager, 1 assistant

manager and 140 co-workers.

JOB DECRIPTION

To maintain the performance of machine and operate

machine. Supervision, Trouble-shooting of all technical
problems, Maintenance.

QUALIFATION REQUIRMENT

BE in mechanical engineering and diploma in mechanical.

POLICIES REGERDING LABOUR

COMPENSATION AND BENEFIT

 Organization provides 2 bonus of the year.

 Performance base promotion.
 Medical allowances.
 Mobile phone facility for marketing staff
 Organization arsine a 14 day’s leave yearly

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ORGANIZATION RULES:

 Don’t smoke in working place.

 Be helpful
 Be punctual

ENPLOYEE AND MANAGEMENT RELATIONSHIP

POLICIES:

 Meeting which employee every month.

 Check the performance of employee every month.
 Maintain work sheet of no of employee.
 Arrangement of staffing

PAYROLL POLICIES

POST MONTLY SALARY

MANAGER (30000-32000)
ASST.MANAGER (25000-27000)
TECHICNAL& IT ENGINERS (25000-25500)
ACCOUNTANT (6000-7000)
SALE PROMONTION STAFF (6000-7000)
LAB.ASSIT (6000-7000)
MACHINE LABOUR (5000-5500)
PEON (5000-5500)
GUARD (5000-5500)

FEASIBILITY REPORT

• Money.

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 1. 3 Million For Building.

2. 3 lacks For Furniture

3. 2 Million For Machines.

4. 1 million For Advertising.

• 15000 square feet plot.

• Location (SITE AREA KARACHI)

.
• Two Machine

1. Packing Machine (Max Pack) got from SPAIN.

2. Manufacture Machine (Siemens) got from GERMANY.

• Management Team

1. General Manager.

2. Manpower Manager.

3. Finance Manager.

4. Plant Manager.

5. Marketing Manager.

• Two Store Rooms.

1. One Raw Material Store Room

.
2. Production Store Room.

• One Chemical Lab.

1. Checking.

2. Chemically Experiments.

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• Security

1. Five Securities hidden Cameras.

2. One Security Supervisor.

3. Five Security Guards.

• Labors.

1. 15-Skilled Labour.

2. 150-Unskilled Labour.

BUDGET
PAK-FOOD INDUSTRIES

Income Projected Actual

Grants:
Registrations:

TOTAL INCOME:
Direct Expenses
Building 20,00,000
Machinery 20,00,000
Furniture 300,000
Raw Material
Ingredients 60,000
Packing Material 40,000
SUB TOTAL DIRECT 44,00,000 44,00,000
EXPENSES
Indirect Expenses
Salaries
Management Staff 150,000

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 Skilled Labors 120,000
Unskilled Labors 750,000
Security Charges 50,000
Transportation 2,00,000
Advertisement 300,000
Other Expenses 500,000
Electricity Bills 1,00,000
Telephone Bills 10,000
Water Bills 5,000
SUBTOTAL INDIRECT EXPENSES: 1,985,000 1985000

TOTAL BUDGET: 63,85,000 63,85,000

PROFIT / (LOSS)

FINANCIAL PLAN:-

All financial activities handle by FINANCE MANAGER; He is head

of all accounts of company. His some characteristics are given
below.

• Responsible for Employees Salaries.

• Expansive of Maintenances.

• Payment of RAW Material.

• Paying Government Taxes.

• Paying Advertising Company's Dues.

• Collection of account receivable.

• Avail Emergency funds.

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 • Making Budget Policy.

ARRANGEMENT OF FINANCE:-

Initially we need heavy amount for starting good Business, we have

amount but it's not sufficient to start good Business that’s why we
have to arrange amount from external sources. That's we have to avail
loan from Bank through the plot. But we have to choose that Bank
which give us loan easily with low interest and easy installment. After
visiting different Banks we have satisfied with NATIONAL BANK OF
PAKISTAN.

BANK REQUIREMENTS

1. Initially we have to pay 30% money to Bank.

2. We have to pay 18% interest.

3. Documents Submit.

• Original Documents of Plot

.
• Feasibility Report.

• No Objection Certificate.

• Show Machinery.

• Show Working Capital.

Methods of Accounting

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Before you start you will need to decide what form of
accounting that your business will use. There are two major
types:

• Cash Basis Method:

This is what the name implies; you recognize

income when you receive the cash and you
recognize expense when you receive the bill.
Most service businesses operate on the cash
basis because it is much simpler to understand
and account for.

• Accrual Method:
Here you match revenue with expense regardless
when the cash may or may not be collected. If you sell
a product to a customer and he doesn't pay you for 30
days, the sale is recorded in the books on the day that
you made the sale. When the money comes in the
"accounts receivable" account is then turned into cash.
The same with expenses: if you incur an expense on
one month but don't pay until the next month, the
expense will be recognized in the month which you
incurred the expense. If you're in manufacturing or deal
with inventory, the internal revenue service generally
requires that you be on the accrual basis.

Keeping separate business records

Even in a small business you should, before you start, set up
a business account even if you're a sole proprietor. It will be
important to keep your business records separate from your
personal records. This will make it easier for you and your
accountant to pull records together for income taxes when
the time comes. Your accountant can help you prepare and
set up your company accounts, including establishing your
checking account and or savings accounts for operating your
business.

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Tax liability issues:
There will be a number of tax liability matters that you and
your accountant will need to deal with:

 Income taxes.
If you start as a sole proprietor you will be reporting your
business activity on a schedule that is attached to your IRS
form 1040, called Schedule C. Not only will the sole
proprietor pay income tax on business income, but the sole
proprietor will also pay social security tax on this income.
This is reported as a separate item on the income tax
return. The social security tax can be quite a surprise for
the new small businessperson who does not expect to pay
roughly 15% of net income for social security tax on top of
the income tax. Operating as a partnership or LLC does not
relieve a partner of the obligation of paying self-
employment tax. Your accountant can help set up
estimated tax payments that will lessen the burden of your
final tax bills well as avoid penalties for not paying taxes
as you go along.

 Payroll taxes.
If you have employees your accountant can help you
apply for necessary state and federal payroll numbers
that you will need to file payroll tax returns. The federal
number is called a "federal employer identification
number" or FEIN, and these are obtained by form SS-4.
Also, in every state there are local and state taxes that
are required. For instance, in California, you need to
apply for a state identification number that will establish
an account for you to pay the state withholding tax that
you withhold from employees and the state disability
insurance monies withheld. There is also a state

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 unemployment tax that you pay. There may be other
taxes that may be unique to your local situation

Cash Flow Sensitivity Analysis Worksheet

Benefits:

This worksheet is set up to be used for forecasting changes

in your receipts and disbursements and the effects the
changes will have on your cash requirements of your start-
up new business. This worksheet will show you what will
happen to your cash flow when your forecast is off by 5
percent. We've formatted the worksheet and put in most of
the inflows (income) and outflows (disbursements)
categories for you. All you have to do is put in your numbers
and print it.

This worksheet lists all the descriptions of the cash inflows

and outflows of the new business. If you need additional
categories of expenses you can quickly modify it. Just plug in
your amounts and the spreadsheet will automatically
compute the totals.

File Description:
The file is a Microsoft Excel (version 5.0 or later) spreadsheet
template. Once you've downloaded the file, you must copy it
to your EXCEL\XLSTART directory in order to use it.

Special Features:

 Download this spreadsheet template just once, and be

able to use it over and over again.
 The spreadsheet contains the formatting for a cash flow
sensitivity analysis.
 The spreadsheet can be completely customized — you
can quickly add or delete items or revise the format to
meet your needs.

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  The spreadsheet is easy to use. Just plug in your inflows
(income) and outflows (disbursements) and it will
automatically show you what will happen to your cash
flow when actual results are not what you expected.
 The spreadsheet shows what will happen when your
cash results are 5 percent better than what you
expected.
 The spreadsheet will also show you what will happen to
your cash when sales are 5 percent less than
what you forecasted and outflows (disbursements) are
5 percent more than what you forecast.

MEASURE THE PRICE OF UNIT:-

1. Ingredients.

• Sugar 10000
• Orange Juice 10000
• Mango Juice 10000
• Acids 10000
• Water 10000
• Colours 10000

VARIABLE COST = 60000

2. Labour Salaries

• Skilled labors 120000

• Unskilled labors 750000

• Management Team 150000

FIXED COST = 1020000

CP= VC + FC

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 CP= 60000 + 1020000

CP= 1080000

Production = 100000/per month

Per Unit= 11

Sale price= 20

Profit= 09 per unit

Registration Requirements:

Time to Cost to complete:

No: Procedure
complete:
Seek the availability of a
name proposed for the
1 company from the 1 day 200
Registrar of Companies.

Pay the fee for

procedures 1, 3, and 4,
2 and obtain bank receipt/ 1 day no charge
copy of treasury challans

Obtain stamp paper on

which the Declaration of
3 1 day 100
Compliance will be
drafted
registration fee + 200,
Register the company at filing fee per document,
4 the Registrar of 3 days 4 documents +50 for the
Companies. Certificate of
Registration
5 Make a company seal 2 days 1000
Apply for a national tax
number (NTN) and 2 days no charge
6
register for income tax.
Register for sales tax 12 days no charge

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7
7 days
Register for the
(simultaneous with
8* Professional Tax with the no charge
the previous
local tax authority
procedure)
11 days
Register with the
(simultaneous with
9* Employee Social no charge
the previous
Security Institution
procedure)
Register for old age
11 days
benefits with Employees
(simultaneous with
10* Old-Age Benefits no charge
the previous
Institution (EOBI).
procedure)
Register with Pakistan
11* Shops and Establishment 7 days 10
Ordinance, 1969

ASSUMED CASH FLOW CONTROL

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ASSUMED BALANCE SHEET

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.

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