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ENTREPRENEURSHIP

Sir. Zia Ul Haq

Group#5

TABLE OF CONTENT
TABLE OF CONTEN DESCRRIPTION OF BUSINESS MISSION KEY TO SUCCESS FINANCIAL NEED EXECUTIVE SUMMARY OUR ORGANIZATIONAL CONCEPT DESCRIPTION OF VENTURE PRODUCTION PLANNING OPERATION PLAN INTRODUCTION TO INDUSTRY FUTURE OUTLOOK AND TRENDS INDUSTRY DEMAND ANALYSIS OF COMPETITOR MARKET SEGMENTATION DESCRIPTION OF VENTURE PRODUCTS SERVICES SIZE OF BUSINESS OFFICE EQUIPMENT PERSONNEL PLAN BACKGROUND OF ENTREPRENEUR PRODUCTION PLANNING PRODUCRION TECHNIQUES CATERING PROCESS MANUFACTURING PROCESS OPERATIONAL PLAN 1 4 4 4 4 5 5 5 6 8 9 9 9 9 10 11 11 11 11 12 12 13 14 15 16 16 18

2 DESCRIPTION OF COMPANY'S OPERATIONS STRATGIES TO INCREASE PROFITABILITY MARKETING PLAN OBJECTIVES IDENTIFICATION OF TARGET AUDIENCE MARKET SEGMENTATION BRNADING COMPETITORS BUDGETING THE MARKETING STRATEGY PRODUCT AND PRICING STRATEGY PROMOTION STRATEGY PLACING STRATEGY MARKET TRENDS COMPETITIVE EDGE SWOT ANALYSIS ORGANIZATIONAL PLAN OWNERSHIP MANAGEMENT SUMMARY ORGANIZATIONAL STRUCTURE ASSESMENT OF RISK FINANCIAL PLAN MANUFACTURING STATEMENT FOR THE YEAR INCOME STATEMENT FOR THE YEAR FORECASTED BALANCE SHEET FOR THE YEAR CASH FLOW STATEMENT FOR THE YEAR APPENDIX 18 19 21 21 21 21 22 22 22 22 23 23 23 23 24 25 25 27 29 30 31 31 31 32 33 35

Business City Plaza near Bosan road, Multan, Pakistan Tel: 0303-6385765 Email: www.foodiliious.com

DESCRIPTION OF BUSINESS
Foodilicous is a catering service, serving local, cultural and traditional food. The motive behind establishing this is to promote the traditional foods of local casts and communities in Pakistan. We are trying to revive our ancestors cuisine in this era of fast food with a new and modern touch that will be unique yet traditional and tasty in its own way.

Mission:
Foodilicious mission is to provide the highest quality of food, reliability and effectiveness in catering services, and to create elegant, memorable experience. Whatever occasion it is, we are committed to providing impeccable creativity, passion and professionalism in everything we do.

Key to success:
Key to success is to meet and exceed our customers expectat ions in term of quality, cost, excellence of service and hygienic conditions.

Financial needs:
Our financial needs are Rs.900000/- We have requested to Askari Bank to grant this loan. We are also looking forward to meet and incorporate some new investors.

Executive Summary
Information contained in this business plan is strictly confidential and is being presented to specific persons with the understanding that those persons will maintain confidentiality and not disclose or distribute any part of this plan to third parties without the prior written permission of the author. Information includes any data, reports, schedules, or attachments that may be contained in or referred to in this document.

Our organizational concept:


Foodilicious is a catering service, serving local, cultural and traditional food. The motive behind establishing this is to promote the traditional foods of local casts and communities in Pakistan. We are trying to revive our ancestors cuisine in this era of fast food with a new and modern touch that will be unique yet traditional and tasty in its own way. Market segmentation of Foodilicious is divided into two segments; Upper class and Upper middle class.

Description of venture:
Foodilicious offers a list of delicious and mouthwatering dishes which never let you stop to come at this place. Its name has its own uniqueness and become a source of attraction for consumers. It offers tasty and hygienic menu. Foodilicious offers quality service. Fast delivery, smart order placement, quick response is basic strength. The business size of Foodilicious at the stage of infancy is 200sq yards. This size will expand as it will progress. Initially we are 7 members who invested in it as well as being a part of it and doing specific jobs. Four of us are chefs and other three are into management and order delivery. We have hired two full time helpers.

Background of Entrepreneur:
Umer Shahzad is a strong business leader responsible for strategic planning and continued growth of catering services and business development. He has done various successful experiments of making international cuisines. Owais Ali is also expert at making local cultural cuisines and also will be the management lead for all public relations, financial and investor services Mehwish Fatima has better understanding of business management of day to day cash flow planning and staff management which is important to restaurant financial success.

Raheel Ahmed have great excellence in understanding & dealing with the need of internal and external customers. Mohsin javed & Farrukh Imran have excellance in understanding of resource management. Their job is to have day to day check and balance of all the resources utilized and needed. Qurat ul Ain is being responsible for taking all the orders and she has to check that right order is delivered to right customer before time.

Strategies to increase profitability:


Our prime motive is to increase profitability by providing variety of food at reasonable prices without compromising on quality & taste Our business concern is to consider our customers as our top priority. Therefore we are focusing on providing the highest quality to our customers and offering variety in order to capture a wide market segment. In successful business, everyone in the business thinks about creating, serving and satisfying customers throughout the entire day.

Production planning:
A production plan enlists the categories and amounts of finished food products needed, when they are required to be delivered, and when they should be produced so as to avoid unmanageable inventories. It also includes set-up timing and procedures. We can manage work schedules, inventories and production accordingly an a timely manner.

Operations plan:
Foodilicious is basically located at Bosan road, Multan, Pakistan. Occupying the space of 200sq yards, this capacity utilizes both the manufacturing area and storage area. As we provide service on daily basis so we keep stock of our inventory in order to meet the demand of our customers whenever there is a requirement.

Marketing plan:
A marketing plan for Foodilicious catering shapes the business plans to go through to promote the catering services and local culture in a different way. A catering business marketing plan includes information about the target audience, the business brand, the goals, the competition, the price and promotion of the catering can devote to its marketing efforts. Building knowledge in these areas place helps a catering business to attract the right potential customers and opportunity to convert the prospects into paying catering clients. The Foodilicious are as follows:

STRENGTHS: 1. Variation 2. Uniqueness 3. Exclusive taste 4. Hygienic environment Weaknesses: 1. Immature management 2. Less experience Opportunities: 1. Growing demand of variety in taste 2. Rapid process development 3. Able to capture large market share Threats: 1. Expected competition

Organizational Plan:
Foodilicious will be established as a partnership. There will be seven members: Qurat ul Ain, Mehwish Fatima, Raheel Ahmed, Owais Ali, Umer Shahzad, Mohsin Javed, Farrukh Imran. Each will assume an equal ownership in the business. The structure of our catering business has been designed to implement a system of responsibility and accountability, with a clear chain of command.

Assessment of Risk:
Our main focus is to bring back the culture of Pakistan in the society; our organization brings a new taste into the market of Pakistan. We are more into introducing local Pakistani food. People today have less opportunity to enjoy local and regional food. They are more into eating fast food, Chinese and international cuisine. But now people will recognize their regional food and would enjoy it.

Financial plan:
Foodilicious is equally contributed by partners and the profit is shared equally among the partners. For starting business we are in need of RS. 900000/- of capital of which partners contributed RS. 100000/- each with an aggregate total of RS. 700000/- we are thankful to askari bank who have provided us loan of RS.200000/- on easy term and conditions at 12% interest rate per annum. They have seen our dignity and interest in work due to which they have lend us the loan which can help us in our business.

Introduction to industry
Future outlook and trends:
1. Economy: Our economy is a developing economy, having large unemployment rate
and low disposable income. Thats why we are having average prices, which are affordable by both upper and middle class customers. We are at infancy stage thats why our market share is currently low but we have expected future market share will be rapidly growing because of growing taste of traditional cuisines.

2. Culture: We have a big advantage to run our business successful as we are focusing on
local cultural cuisines, Pakistan is a country having different local cultures and we are offering food accordingly.

3. Technology: Our business depends mainly on manual work more and less
technological work. Other than that we have computerized data base system, kitchen, appliances, electronic items and necessity technology for cooling.

4. Legal Concerns: Major legal issues were faced at the time of establishing and
constructing a restaurant with partnership agreement and its certification. Other legal certifications are insurance certificates, property tax and food tax.

5. Industry Demand: Multan is the best place to serve local cultural cuisine because
here people have love for traditional food.

Analysis of Competitors:
In Multan, Desi cuisine is our only competitor who is serving local foods. Their experience in food market is their strength but we are making good efforts to meet our competitors actions.

Market Segmentation:
Market segmentation of Foodilicious is divided into two segments; upper class and upper middle class. 1. Middle class clients: This group of people does not have huge amounts of disposable income, is willing to incur the expenses, but will try to minimize them. 2. Upper class clients: This group has Foodilicious values throughout their lives and is willing to spend whatever it takes. Typically, this group is characterized by a wealthy one-income family where the male works ang female does not. The female of the household typically thoroughly enjoys the planning of these events.

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Market Segmentation

Upper Class Middle Class

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Description of Venture
Products:
Foodilicious offers a list of delicious and mouthwatering dishes which never let you stop to come at the place. Its name has its own uniqueness and become a source of attraction for consumers. It offers tasty and hygienic menu. The lists of products offered by Foodilicious are as follows: Khausa: Its a memoni dish and not available easily in restaurants. Its a unique kind of dish taste so good and can be a perfect lunch for anyone. Gol Gappay: Foodilicious offer most tasty and hygienic gol gappay. It is one of most popular dish that nobody can resist.People love them but they sometimes have issue with the making of gol gappay but hygiene is one of the main concerns of Foodilicious. Others: Achar, Pappar, Chatni. Beverages: Chaach and coffee. Deserts: Cinnamons rolls. A much better view of our product and pricing strategies could be done by our menu card in appendix

Services:
Foodilious offers quality service. Fast delivery, smart order placement, quick response is basic strength. Producing best quality and appropriate quantity food for our customers and placed elegantly at the table of our customers. All of the menu offerings will be unique and healthy and some of them are of local culture. More inventive meals will also be offered to appeal to the higher end. Foodilicious catering will serve unique and some popular dishes. This is offered for two reasons. Uniqueness for those customers who like to taste something new and different. Popular dishes for customers, which have developed kind of taste and who avoid taking something different in food

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Size of Business:
The business size of foodilicious at the stage of infancy is at 200sq yards. This size will expand as it will progress. When foodilicious attains its growth the managers planned to increase the business size in term of branches at different locations and based on response at this vicinity it would like to expand premises as well.

Office Equipment:
Foodlicious will acquire the following: Dishwasher Sets of cookware Sets of dishwasher One van with rolling racks built in (a rolling rack is a wheeled rolling cart system that is insulated for both hot and cold food). Assorted serving trays and utensils, knives and cutting boards. Desk and chairs Commercial stove with ovens Computer with printer, CD-RW, Microsoft office, and QuickBooks Pro. Copier and fax machine.

Personnel Plan:
Foodilicious believes that the personnel plan is in good proportion to the size of the kitchen and projected revenues. Initially we are 7 members who invested in it as well as being a part of it and doing specific jobs. Four of us are chefs and other three are into management and order delivery. We have hired two full time helpers and their salary would be 10000 initially and we have hired driver for delivering the orders to customers and his wages and commission depends on the orders we get.

Background of Entrepreneur:
All the partners have a background in Business Management and Business Start-ups and coworkers are responsible for overall direction and operational management.

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Umer Shahzad is a strong business leader responsible for strategic planning and continued growth of catering services and business development. He has done various successful experiments of making international cuisines. Owais Ali is also expert at making local cultural cuisines and also will be the management lead for all public relations, financial and investor services Mehwish Fatima has better understanding of business management of day to day cash flow planning and staff management which is important to restaurant financial success. Raheel Ahmed have great excellence in understanding & dealing with the need of internal and external customers. Mohsin javed & Farrukh Imran have excellance in understanding of resource management. Their job is to have day to day check and balance of all the resources utilized and needed.

Qurat ul Ain is being responsible for taking all the orders and she has to check that
right order is delivered to right customer before time.

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Production Planning
A production plan enlists the categories and amounts of finished products needed, when they are required to be delivered, and when they should be produced so as to avoid unmanageable inventories. It also includes set-up timing and procedures. We can manage work schedules, inventories and production accordingly in a timely manner.

Production Techniques:
We have adopted the flow method as our production technique.

Flow method: Flow method can be defined as method of production adopted by an


organization in which task is worked on simultaneously, or the processing of inputs is ongoing and progressive. This method is analogous to batch method but it overcomes the problem of idle production/batch queuing. The objectives of above method are: Improved work, material and inventory handling. Reduced requirement of labor skills. Value added production and delivery systems

Quality Control:
The success or failure of a catering business is based on the quality of the products, services and atmosphere. Customers demand fresh and tasty food keeping the quality in check. Customers also want in time service with good taste.

Areas of Kitchen Quality Control:


We are focusing on conducting inspection on daily basis before the production for the day starts because we are concerned for the health and safety issues of our customers. Our quality control focuses on the following:

Great value and Food Safety:


A menu is prepared initially and it will be altered with the demand of customers and if customers love the food being served revenue will automatically will grow up. But if the customers found out the foods are not prepared safely, this will have a negative impact to the reputation of the restaurant or a ground for lawsuit if not settled at once.

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Food Production and Services:


The processing of food should maintain its freshness and must be served in a presentable manner. Customers are not only depending on the quality of the food but also to the quality of services or how the food are being served to them.

Kitchen Cleanliness:
The area of the kitchen is referred as the Back of the room Front of the room is the packaging area where the foods packed. It is crucial for owners to maintain the cleanliness of these areas to protect the health of the regular patrons.

Training of Staff:
Our chefs, our staff should go under different workshops to make certain that we can do the job properly and orderly.

Staff Management:
It is the obligation of the staff to keep the customers happy and all the staff should support each other and co-ordination should be good enough. Contented staff can do their job perfectly and can give excellent customer service.

Machinery & Equipment:


Starting a food business takes a great deal of time, consideration and money. Purchasing equipment for the kitchen requires high upfront costs, but you probably wont need every piece of equipment listed in the catalog. Sit down with your head chef and kitchen manager before you buy in order to use startup money most effectively. Choose quality, long lasting equipment that wont falter when your business is getting off the ground.

Oven and Ranges:


A number of oven and range designs and models are available to fit any style and space needs for the kitchen. Both standard and convection ovens are considered necessary, but combination ovens, which combine elements of the two, can be useful if space is an issue. Stove-top space for a griddle, char boiler and burners also need to be considered and will depend on the overall catering menu theme. On the line, a steam table for holding hot foods is also required.

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Pots and Pans:


Quality cookware sized for kitchen volume is a must. Stockpots from 4- to 10-quart capacity are a good place to start along with varying sizes of saut and sauce pans. These will be the staff of our kitchen, so buying the best quality will save money in the long run. We will also need 2- and 4-inch pans, baking sheets and loaf pans. Other equipment can include cookers, stremers, castiron cookware and woks.

Prep Area:
Having a good prep table, shelving and adequate equipment for preparing food will save time and money. An industrial mixer, food processor, microwave oven and commercial meat slicer are some of the bigger ticket items needed.

Other items:
Other items that we will need for our catering equipment include bowls for mixing, cutlery, a food scale, spatulas, long handled spoons, juicers, zesters, graters and peelers. Larger prep equipment that we need is bus tubs, cutting boards, salad spinners and food storage containers.

Catering process:
A process is a set of interrelated or interacting activities which transforms inputs into outputs. These activities use resources like people, material. E.g. food production process

Name of suppliers of Raw Material:


We have some unique and different suppliers. They are well own to town of their expert management design and control and effective management skills. The renowned CSD store for general food item like pulses, grains and masalas for their high tech electrical appliances and fresh and quality meat and grocery.

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Physical Plant:
This was a very cosmopolitan catering located in a core business community. The catering business is hidden in cross streets and away from general street traffic. This was a destination catering and secondary selection for the general customer base in this area. This was a destination catering and a secondary selection for the general customer base in this area. In the downtown core a large percentage of business is from walk-in traffic.

Manufacturing process:
A process is measured for both efficiency and effectiveness. These scores can be both at input stage or output stage. In addition to the above process it must be mentioned that our manufacturing process slightly varies according to the requirements of our recipes.

Inputs:
These refer to requirements specified. This could be in a catering requirements resources like specification of materials. Our inputs are man, material, method, machine and culture.

Outputs:
This is the outcome desired. Inputs refer to requirement specified and outputs requirements satisfied. Our outputs are Pakistani cultural foods, customers satisfaction, brand image and goodwill among our targeted customers.

Interrelated activities:
Some of the activities are purchasing, receiving, pre prep, cooking, holding, plating and serving. We should be aware how these activities run from purchase, to different parts of kitchen, to serve in order to keep them in control.

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Operations Plan
Fodilicious is basically located at abdali road, Mulatn, Pakistan. Occupying the space of about 200sq yards, this capacity utilizes both the manufacturing area and the storage area. As we provide service on daily basis so we keep stock of our inventory in order to meet the demand of our customers whenever there is a requirement. Our total utility expenditure is about PRs. 30000 per annum. Moreover, we have acquired the latest equipment and professional labor hired for carrying out the different operating activities. We have also developed long term profitable relationships with our suppliers providing us the required material at right time, at the right place, and in the right quantity. Our basic goal is to increase our profit margin by providing highest quality of food in different cultural varieties at reasonable prices.

Description of Companys Operation:


The basic aim of the companys operations is to provide our customers with the finest quality of food that intends to cater a wide group of people who prefer variety in their food. We want everyone to feel welcome and relaxed in a fascinating atmosphere with a wide and varied menu. It is our goal to have something for everyone everyday on our menu highlights different cultures. Furthermore it is also ensured that all operations are handled smoothly and maintaining customer satisfaction.

Location:
We have decided to open up our restaurant at a place where people from different segments such as the middle class and the upper class both can get the easy access to a wide variety of food of different cultures at affordable prices therefore we have selected Business City Plaza as our prime location.

Amount of space:
According to our selected location and requirements the amount of space acquired for our new venture would be 200sq yards that include our kitchen, storage and office. Both manufacturing and the warehousing can be done at the same time as the nature of our business requirement to satisfy the demands of the customers as needed.

Equipment and Other Utilities:


The forecasted utilities bills per year will be as follows: Electricity: up to PRs. 10000/-

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Sui Gas: up to PRs. 15000/Water and others: PRs. 5000/Equipment: PRs. 5000/Rent and Labor employed: PRs. 50000+20000/Advertisement: PRs. 10000/Interest: PRs. 12000/-

Inventory Control:
We are adopting first in first out (FIFO) inventory system because the nature of goods are mostly perishable. Inventory Control gives you easy access to accurate inventory information, keeping you mare informed so you can make better decisions. We are going to use manager inventory module system for managing our inventory levels. Its easy to create recipes that link inventory item to menu items. And once you activated, the system manages stock levels based on those recipes, keeping an accurate count of stock levels based on those recipes, keeping an accurate count of stock levels at all times.

Technology Utilization:
Foodilicious utilizes its technology in order to increase productivity & sales growth of the business. It helps to produce goods and services at a faster and desirable manner helping us to save time as well as increasing efficiency. It also helps us to save extra expenses such as high electricity cost, repair and maintenance expenses etc. Our business also believes that effective group communication is important to ensure all deadlines and goals are met. Three technologies that might be utilized to facilitate group communication are e-mail, mobile phone i.e. phone cells or text messages. Verily technological use is advancing day by day other technological machinery and equipment also help us to deliver the orders at the right time.

Strategies to increase profitability:


Our prime motive is to increase profitability by providing variety of food at reasonable prices without compromising on quality & taste Our business concern is to consider our customers as our top priority. Therefore we are focusing on providing the highest quality to our customers and offering variety in order to capture a wide market segment. In a successful business, everyone in the business thinks about creating, serving and satisfying customers throughout the entire day. Another basic factor we consider to increase profitability is through maintaining the offices and facilities necessary; the money necessary for rent, utilities and payroll; and all the little factors that go into making a

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business successful. Another way is through accurate tracking of profit margins that wil help us to identify the high margin items and making long term relationships with suppliers who are offering the desired quality and quantity of material at the right time and the lowest possible cost. High degree of determination, persistence and patience of our team members also contributes towards the increase of the profit margins as their commitment to their required tasks and duties in a professional manner creates a suitable environment for our desired customers. An effective inventory system contributes to our bottom line. Beyond just tracking inventory depletion, Restaurant inventory control gives you a detailed understanding of consumption so one can implement procedures that eliminate theft and waste.

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Marketing Plan
A marketing plan for a Foodilicous catering shapes the business plans to go through to promote the catering services and local culture in a different way. A catering business marketing plan includes information about the target audience, the business plan, the goals, the competition, the price and the promotion the catering business can devote to its marketing efforts. Building knowledge in these areas place helps a catering business to attract the right potential customers and the opportunity to convert the prospects into paying catering clients.

Objectives:
The objectives for the first five years of operation include: To create a service-based business whose primary goal is to exceed customers expectation. To increase the number of clients served by 20% per year through superior service. To develop a sustainable start-up business. To develop enough cash flow to pay all salaries as well as grow the business.

Identification of Target Audience:


The target audience for Foodilicious may vary according to the food offerings, experience and know-how of the caterer. Initially in the span of 5 years our target market would be Upper class and Upper middle class of Pakistan. This segment of Population have access to high discretionary income and other resources, making them adventurist who seek for new and one in kind of product. This product selection reflects the scarcity and uniqueness of this class. Initially we are targeting the upper class and upper middle class due to this we have to consider their income in which they are affordable and ready to taste the new variety which represents the local culture and uniqueness.

Market Segmentation:
Foodilicious have two distinct populations: Upper Class: there are two different views in analyzing this group. First, this group has intertwined Foodilicious people values throughout their lives and is willing to spend whatever it takes to throw a high-end breakfast, lunch and dinner function. Their wives are house makers; they design family entertainment and value gatherings and social work. Second and final the bachelor and newly married couples value uniqueness in their purchases and are more drawn to experimenting something new. Upper Middle Class: This group of people does not have very huge but sufficient amounts of discretionary income that they are willing to incur the expenses on trying new products and

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services. They position upper class as their reference group and thus most of their expenditure reflect keeping up with their reference group.

Branding:
Our marketing plan contains the brand image of our catering business. The brand we build directly co-relates to our target audience. A catering business needs to develop a reputation for high quality, tasty dishes, punctuality, strong customer service and varied menu choices, among other things. Through our service and product and great experience of our customers we will create a brand image of High in quality catering experience.

Competitors:
The Foodiliciouss direct competitors are catering businesses such as Desi cuisine. They have similar taste offerings and a competitive menu. Using this information, our business will build its image by maximizing its own strengths while improving upon the weaknesses of the competition. Indirectly, every other catering business located at bosan road is our competitor to whom customers can easily access at the same time as ours.

Budgeting the Marketing Strategy:


The financial aspect of our marketing plan pertains to the budget set forth in the written marketing plan. Allocate a portion of the catering business income to pay for marketing and advertising efforts. The first year of our business typically requires a higher marketing expenditure than latter years because we have established our business as the business to turn for lavish catering. In later years, our marketing budget would be approximately up to 10% of business revenue.

Product Strategies:
Our product would be different in term of their names, origin and their recipes. Our unique products that are cuisines of different cultures are not very common in Pakistani food streets. Awareness about these products is only with the people who love traditional foods.

Pricing Strategies:
As mentioned earlier our target audience are people from upper middle class and upper class of social segment in Pakistan thus we would keep our prices relatively reasonable. Our reasonable prices involve our cost incurred on making exquisite catering experience possible. Moreover reasonable price also symbolize high quality and our market segment.

Promotion Strategies:

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Foodilicious use following promotion strategy to increase market share of our catering business: Newspaper Advertising ( Using dawn, Times and those newspapers which are frequently read by our target market); Online advertisement (on Facebook, Twitter, LinkedIn etc.); Newsletters for vendors and clients; Broachers; Website development; Catering organization memberships; Other small scale promotional campaigns.

Placing Strategy:
Our location would be in that area where we can get more customers who prefer variety of food items depending upon their taste and traditional culture and where there is no one who would offering same as we are. Our strategy is to provide variety of food items at affordable prices and that is accessible to different segments of the society.

Market Trends:
Significant market trends for our caterers business are as follows: Consumers of Foodilicious are value-conscious, especially during the current economic climate. Consumers are health-conscious with an increasing number expecting hygienic environmental conditions. Consumers now a days wants a unique taste, superior quality and variety in their food.

Competitive Edge:
Our business competitive edges are: Our unique taste & efficiency The quality of food we are providing An extraordinary contemporary catering design Traditional menu representing local culture Offering a wide variety of food items Hygienic and fascinating environment.

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SWOT Analysis:
The SWOT analysis of Foodilicious is as following:

STRENGTHS: Variation Uniqueness Exclusive taste Hygienic environment Weaknesses: Immature management Less experience Opportunities: Growing demand of variety in taste Rapid process development Able to capture large market share Threats: Expected competition

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Organizational Plan

Ownership:
Foodilicious will be established as a partnership. There will be seven partners: Qurat ul Ain, Mehwish Fatima, Owais Ali, Raheel Ahmed, Mohsin Javed, Umer Shahzad, Farrukh Imran. Each will assume an equal ownership in the business.

Partnership agreement:
THIS PARTNERSHIP AGREEMENT is made this year, by and between the following individuals:

Mehwish Fatima, Pakistani Mumtazabad, Multan

Qurat ul Ain, Pakistani Qasim Bela, Multan

Umer Shahzad, Pakistani Gulgasht, Mulatn

Owais Ali, Pakistani Al-Jannet colony near Gulgasht, Multan

Mohsin Javed, Pakistani Sultanabad colony near Gulgasht, Multan

Farrukh Imran, Pakistani Meharban colony near MDA chowk, Multan

Raheel Ahmed, Pakistani Altaf town near Abdali road, Multan

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1. Nature of Business: Foodilicious is to provide the customers with finest local and traditional Pakistani catering. 2. Name: the partnership shall be conducted under the name of FOODILICIOUS and shall maintain our catering which is located at Bosan road, Multan, Pakistan. 3. Day to day operations: all the partners will give their full time service and work effectively on the behalf of their partnership. Each partner will equally have right to manage and control the business. Each partner will receive salary for their services. 4. Capital contribution: according to the following capital contribution each partner has right to own property service or cash:

Name Of Partner Qurat ul Ain Mehwish Fatima Raheel Ahmed Owais Ali Mohsin Javed Umer Shahzad Farrukh Imran

Capital Contribution 100,000 100,000 100,000 100,000 100,000 100,000 100,000

The partnership agreement states that each partner shall maintain a capital account record; should any partners capital account fall below the agreed to amount, then that partner shall; Have his share of partnership profits then due and payable applied instead to his capital account; and Pay any deficiency to the partnership if his share of partnership profit is not yet due and payable or, if it is, his share is insufficient to cancel the deficiency.

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5. Profits and losses: the profit and loss in the business will be equally among the profit as
6. the share of investment is equal among the entire partners. Terms/ terminations: the terms of agreement for this partnership are for 3 years. This agreement can be extended as per the mutual understanding of the partners. Voting would be done to terminate any of the partners. The assets and cash shall be used to pay all creditors. Disputes: This partnership agreement shall be governed by the laws of the State of Islamic Republic of Pakistan. Any dispute arising between the partners as a result of this agreement shall be settled by arbitration and judgment upon the award rendered may be entered in any court having jurisdiction thereof. Withdrawal/death of partner(s): In the event a partner withdraws or retires from the partnership for any reason, including death, the remaining partners may continue to operate the partnership using the same name. A withdrawing partner shall be obligated to give sixty days prior written notice of his/her intention to withdraw or retire and shall be obligated to sell his/her interest in the partnership. No partner shall transfer interest in the partnership to any other party without the written consent of the remaining partners. The remaining partners will pay the withdrawing or retiring partners, or to the legal representatives of the deceased or disabled partners, (1) the value of his interest in the partnership or the sum of his capital account,(2) any unpaid loans due him, (3)his proportionate share of accrued net profits remaining undisturbed in his capital account, and (4) his interest in any prior agreed appreciation in the value of partnership property over its book value. No value for good will shall be included in determining the value of partners interest. Non-compete agreement: if a partner retires or withdrawal from the partnership shall not directly or indirectly engage in a business which is or which would be competitive with the existing or then anticipated business of the partnership for a period of 3 years, where the partnership is currently doing or planning to do business.

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Management summary:
We are responsible for success and failure of our business. As it has a collaborative effort each one will be equally responsible for hiring the general manager and choosing the executive chefs. The chain of command is essential to an organization as it facilitate in the co-ordination of activities to ensure that an organization meets its strategic objectives. As time passes we will take on additional help in certain key areas. We will take care of our basic philosophy that will be able to run our executive management as a knowledge sharing fellowship. We will not add additional overhead until absolutely necessary. This means that we will allow our future

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business partners to recoup investment as quickly as possible and enjoy a higher return. This also means that the initial staff support team will have to work extra. By doing this, we will keep our overhead as low as possible, allowing us to adequately staff our outlets.

Management teams:
Development of management teams shows the importance of employees and their loyalty & commitment to the organization. Also significant to the potential investors is the management teams and its ability and commitment to the new venture. FOODILICIOUS is currently the creative idea of its eight partners. As the company is small in nature, it only requires a simple organizational structure. Implementation of this organization form calls for all seven individuals to make all major management decisions in addition to monitoring all other business activities. As we expand into multiple locations and bigger space, each kitchen will have a primary site manager.

Duties and Responsibilities:


Foodilicious is currently a small catering business headed by seven individuals. All seven partners & owners of the company are qualified professional. Umer Shahzad is a strong business leader responsible for strategic planning and continued growth of catering services and business development. He has done various successful experiments of making international cuisines. Owais Ali is also expert at making local cultural cuisines and also will be the management lead for all public relations, financial and investor services Mehwish Fatima has better understanding of business management of day to day cash flow planning and staff management which is important to restaurant financial success. Raheel Ahmed have great excellence in understanding & dealing with the need of internal and external customers. Mohsin javed & Farrukh Imran have excellance in understanding of resource management. Their job is to have day to day check and balance of all the resources utilized and needed.

Qurat ul Ain is being responsible for taking all the orders and she has to check that
right order is delivered to right customer before time.

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Organizational structure:
Catering business has a limited staffing need, and their organizational structure must be in line with those needs to function well. The structure of our catering business has been designed to implement a system of responsibility and accountability, with a clear chain of command.

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Assessment of Risk
Our main focus is to bring back the culture of Pakistan in the society; our organization brings a new taste into the market of Pakistan, more specifically in Multan. We are more into introducing local Pakistani food. People today are having less opportunity to enjoy local and traditional food. They are more into eating fast food, Chinese and international cuisines. But now people will recognize their regional food and would enjoy it. We do not have a restaurant but have a catering business in which we prepare food according to the demand of the customers. Now the main risk is that people might not be aware of our local variety and its taste. It will take time for us to make our place in the market. Our risk is that we can currently visualize is that our decision to proximity to market might not turn out to be our asset rater turn into risk or severe competition. In which case we will consider of our expanding our range of products by adding more traditional and typical dishes. These dishes would be dishes from more of the interior side so that their recipes would be harder to track by our competitor. Our food is traditional in nature and we are planning to reserve that and that is only possible if we continue to preserve the actual cooking procedure for that dish. Therefore any changes in technology would not affect our organization. Risk of staff being not in sync with each other could result in some serious mismanagement and less effective customer service. To prevent this situation or to minimize the chance of occurrence of this event we will exercise a more strict management roll which would keep check upon all other employees. Interference is observed to be the key reason of stressed employees and poor performance. To minimize the stress and conflicts among employees we have fully described the duties and responsibilities of each and every employee. This would keep individuals restricted to their work and less to no interference in others works.

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Financial Plan
Foodilicious is equally contributed by partners and the profit is shared equally among the partners. For starting up the business we are in need of RS. 900000/ - of capital of which partners contributed Rs. 100000/- each with an aggregate total of Rs. 700000/- . we are thankful to Askari Bank who have provided us loan of 200000/- on easy terms and conditions at 12% interest rate per annum. They have seen our dignity and interest in work due to which they have lend us the loan which help us in our business.

Manufacturing Statement for the Year


ACTIVITY Projected sales (units) 58800 Desired ending inventor(units unserved) 1200 Available for sale 60000 Less: beginning inventory(food remain un 0 served) Total production required 60000

Operating budget
Expense Salaries Rent Utilities Advertising Depreciation Interest expense

20,000 50,000 30,000 10,000 5,000 12,000 127,000

Income Statement For The Year

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Sales Less: cost of goods sold Gross profit Operating expenses: Salaries Rent Utilities Advertising Depreciation Interest expense Other expenses Total operating expense EBIT(earnings before income & tax) Taxes Net profit

RS 850,000 400,000 450,000 20,000 50,000 30,000 10,000 5,000 12,000 40,000 (167,000) 283,000 113,200 169,800

Forecasted Balance sheet for the year


TOTAL ASSETS Current assets: Cash Account receivables Inventory Total current assets Fixed assets: Equipment Less: accumulated depreciation Total fixed assets 150,000 10,000 140,000 RS. 700,000 90,000 70,000 860,000 TOTAL LIABILITIES & EQUITIES Current liabilities: Accounts payable Salaries payable RS. 50,000 20,000

Long term liability: Long term borrowing 200,000

Total long term liabilities Equity : Qurat ul Ain Mehwish Ftima Umer Shahzad Owais Ali Mohsin Javed Raheel Ahmed Farrukh Imran Retained earnings

170,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 30,000

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Total assets

1000,000

Total liabilities & equity

1000,000

Cash-flow statement for the year


Net income Cash flow from operating activities: Expenses Gain from sales Depreciation Cash flow from investing activities: Purchase of equipment Cash flow from financing activities: Long term borrowing RS169,800 167,000 400,000 10,000

150,000

100,000

We also borrowed a room on rent from where we have started our work of taking order and delivering it on time. Other major and minor expenses were recovered from partners share of capital. Partners will not be designated to monthly salaries they will get share of profit and will bear share of losses too. Retained earnings will be kept for bad times and for future investments. Employees salaries and other operating expenses will be given from business income. Other expenses of 40,000 include kitchen utensils, table cover, laundering, decoration, cleaning bar and paper supply, music and entertainment, uniforms etc. Our chefs are working very hard to bring new flavors to the food so that our market share can increase so that we can compete side by side with our competitors. Our other partners checks quality and delivers the order on time. Efficient way of cooking and delivery is being observed Tax rate is 40%f EBIT

Break-even Analysis:
Break even analysis is the point where volume of sales neither makes profit nor incur a loss.

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Break even =total fixed cost/ (SP variable cost) For new ventures it is better to take depreciation, salaries, wages, and rent as fixed cost. For variable cost we take material, direct labor and selling expenses. Breakeven =300000/ (46-30) Break even=18,750

Marketing Activities:
Our strategies for marketing were promoting through website, social media, billboards and going to different universities and colleges to give awareness of our business to the customers.We are new in the market but by coming up in the market its really good experience to know about how often entrepreneurs have to take risk and decision on daily basis.