Executive Summery

The new furniture company is Pacific furniture. It will start in 2013 with quality full furniture in various designs. We take a big plan which is for five year. And we hope we can establish our brand within 3 years and till that time our profit will reach 1.5 crore tk. We hope we can earn 1.5 laks within one year. We produce and sale five types of furniture like bed sheds, sofa, dining table etc. We use a big amount for our establishment in advertisement and promotion. We spent more than 10 lak taka for advertisement. And for that we hope we can establish our brand name within three year. Our advertisement main area is tv and radio channels. We launch new product on 4.5 year later when our company will stay in maturity stage of product life cycle. Our main target area is Dhaka, but after this we will cover our country. We promise that we will provide quality full furniture for our customers.

Page

Description of Bangladesh Furniture Industry

The Bangladesh furniture industry is one of the most promising growth sectors with high export potential. According to a Household Income and Expenditure Survey of 2005, the domestic consumption growth rate is around 20% and export markets are almost entirely untapped. There are approximately 40,000 furniture SMEs all over the country, employing around 180,000 people, turnover is in excess of BDT 100b (GBP 1b). Currently dominated by thousands of small workshops, the furniture sector is in a transition phase towards industrialization. Simultaneously, there is a small but growing segment of larger firms who are gradually entering the export market. Nevertheless, the furniture sector is struggling to reach its full potential due to various factors in habiting its growth. Inadequate supply of production technology and consultancy services, limited access to quality inputs, absence of skilled workforce and limitations in local and international marketing are some of the main problem areas. The biggest challenges for export include: government recognition as a potential export sector, limited export order processing facilities, lack of credibility in international markets, uncoordinated association activities and absence of effective initiatives for facilitating foreign direct investment.

Leading companies of Furniture Industry

Bangladeshi leading furniture companies are given belowAkhtar furnishers ltd. Aftab furnitures ltd. Otobi ltd. Hatil furniture ltd.

Business Description
Pacific furniture will launch on year of 2013. Pacific Furniture manufactures basic, durable home and office furnishings. Principal among these is a line of hardwood desks, dressers, bed sheds, dining tables, chairs, and home entertainment centers. The company's typical retail and service customers include upper-middle class residents of the residential area who seek to maximize the purchasing power of the interior decorating budget. These customers are attracted to Pacific Furniture because it provides quality products, and many are second generation clients. These loyal customers have consistently provided Pacific Furniture with annual sales of over 30,00,000tk in each year. Pacific Furniture intends to expand its customer base in the residential area by aggressively promoting the Additional value of consulting

Page

services it now provides and by capitalizing on its reputation more extensively. A complete retraining of the sales force coupled with significantly increased advertising expenditures will accomplish this objective.

COMPANY PROFILE

Name Address Website Form of Business Product Type Brand Name Physique

Pacific Furnitur ltd.

Office: 72, Mirpur Dhaka-1208 Factory: Gazipur, Dhaka

www.pacificfurniture.com

Partnership Wooden Furniture

Pacific
Attractive Brand Logo, Quality Protective

Culture
Mission

Corporate Image
To creat clear brand Image, demand by ensuring Quality, Availability & Rich Communication With Customers

Our logo

Page

Our Slogan
Modern Living, Create your own fashion.

Company visiting card

Nature of business
We form our business as a partnership business. The types of our business are Manufacturing Furnitures, Distributor/ Wholesaler. There will be 7 partners in their respective posts.

Page

Partners Visiting cards:

Page

Page

Size of Business
This business will produce & provide consumer product and organize medium size business. Initially we will cover the 1 division of the country but our prospect will be whole of the country.

Statement of startup Finance

Initial financing requested of the company is 2, 00, 00,000 taka loan to be paid off over five years from Dutch Bangla Bank Ltd. This debt will cover office space, office equipment, and for supplies two leased vans, advertising and selling cost. The partners provided 3, 00, 00,000 taka jointly. So, the total cost of the project estimated at 5, 00, 00,000 taka.

Objectives
Objectives of Pacific furnitures are given below1. Establish relationships with designers of unique, fine furniture 2. Establish relationships with quality wholesale suppliers of lumber and hardware. 3. Establish our name and image in the community as a specialty manufacturer of custom designed furnishings within the next three years
4.

Page

Focus our product in various way like advertising, promotion, fair etc and increase our sales and make profit to 1,50,000tk by year.

5. To increase sales at least 1,40,00,000tk by the third year of operation. 6. To sell some different designs furnitures.

Keys of success
Keys of success are given below1. Business will be located on major city shopping malls, residential areas, and college and university hostel areas. 2. We need to find the quality-conscious customer in the right channels, and we need to make sure that customer can find us. 3. We can't afford to ship fully-assembled desks, but assembly must be so easy and automatic that it makes the customer feel better about the quality, not worse. 4. We committed to quality full wood, quality full workmanship, quality full design for customers.

Page

5. Pacific furniture will employ local craftsmen who have plied their trade for decades. 6. By using only the finest hardwoods available, our craftsmen ensure that our furniture will last for generations to come.

Mission
Pacific furniture helps to decorate home in a very attractive designs and it helps to create pleasant, productive office environments with well-designed furniture that incorporates new technology into the classic office mode, in which real people can work happily. Also in home decoration pacific furniture help to spent a happy moment with all family persons. We are sensitive to the look and feel of good wood and fine furniture as well as to high-powered personal computing. We always provide the best possible value to our customers who care about quality office environments, home decorations, and we want you spent with us to be well spent.

Future outlook and trends

We mainly want to produce furniture. It is a partnership business. Initially we prepare our business plan for five years. Next five year we target that we capture 6% of total market share. When our company will start, only one product available in five types, we produce at that time. We wish to achieve a so much customer and consumer response in 1 year. It wills our betterment of our company. We get best wishes to our target customer and also the mind of the customer will obviously great beliefs of our products. Because we mention that, our product is the best product in Bangladesh. We expect the sales will be in next year approximately TK 1 corer. Our production cost is TK 2, 70, 50,000. The return on investment is 20% expected

Page

Goals
Our main goal is to provide good and best quality furniture to the customers. As Pacific is a new company, so our goal is also to raise the brand value of Pacific and creating a good number of loyal customers.

Focus
We concentrate on the continuous improvement of the product according to the customer needs. So we specifically follow the product concept.

Our product description

Our products list is given belowBed sheds Almira Sofa Dining table Dressing table

Bed sheds:
Pacific furniture made Bed Sheds in various types and various design. The Bed Sheds are very much attractive. See some sample of Pacific furniture Bed Sheds in below-

Page

10

Almira:
Pacific furniture produces Almira by pure wood which is collect from forest. And the Almiras are very much attractive and nice designed. Some samples are given below-

Sofa:
The main and most used home decorates furniture is Sofa. There are several designed sofa are also produced by Pacific furniture. This sofas are used for office and home decoration. Some designs are given below-

Page

11

Dining table:
Another main and most used home decorates furniture is Dining table. There are several designed Dining table are also produced by Pacific furniture. Some designs are given below-

Page

12

Dressing table: Most used other furniture is Dressing Table. There are several designed Dressing Tables are also produced by Pacific furniture. This Tables are used for home decoration. Some designs are given below-

Page

13

Product quality
Pacific Furniture brings quality in life. Their products contain following qualities:
Performance. Will show well performance. Features. Good features. The Name. A name that contains quality Reliability. Each person use will results in the same satisfaction. Serviceability. The service system efficient, competent,

convenient.

Market Analysis

Page

14

Market segmentation

Geographical Segmentation:
The market is segmented according to geographic criteria like, Nations: Our customers nation will be Bangladeshi. Regions: Dhanmondi, New Market, Azimpur, Panthopoth, Green road, Farmgate, Mirpur, Jatrabari, Motijhil and Mohammedpur.

Page

15

 Cities: At first we cover only Dhaka city after that we cover other cities which is beside of Dhaka. The other cities areNarayanganj Comilla Chittagong Sylhet Bagherhat Bogra Maymensing Khulna etc Zip codes: The zip codes are 1205,1209,1000,1206, 1100, 1208 etc.

Demographical Segmentation:
Demographic segmentation consists of dividing the market into groups based on variables such as Age: The age range of the customers are 2-5year old, 20-30years old and 40-70years old people. Gender: The gender of the customers are Male and Female. Family size: In Dhanmondi and its side areas families are maximum small family. Our targeted families are

Big family

Page

16

Small family and

 Income: The customers income level will be 10,000tk to 30,000tk per month 30,000tk to 50,000tk per month 50,000tk to 70,000tk per month 70,000tk to 1,00,000tk per month Occupation: Occupation is not clearly defined for the target market of our product. But the customers are Job holder and Business person Education: The education level of the target customer is HSC Higher graduation like BBA & MBA PHD and others. Religion: The religion of the most customers is Muslim. There is also having some other religion peoples. The religions of our customer are Muslim Hindu Buddhist Christian And others Nationality: Most customers nationality is Bangladeshi but there have also some other nationality people like American English Nigerian etc.
Page

17

 We have targeted for the upper part of the lower class, middle class, upper middle class, and lower part of the upper class of the society. Middle Class Upper- Middle Class Some portion Upper class

Psychographic Segmentation:
Psychographics is the science of using psychology and demographics to better understand consumers. By Psychographic segmentation we segment our consumers according to their lifestyle, personality, values. Aliens within the same demographic group can exhibit very different psychographic profiles.

Target market
As a manufacturer supplying to distributors, our target market would be furniture distributors of high quality product. The income level of the average client seeking high quality furniture will be in the middle and upper class range. Marital status will not make a difference. Education level will be college graduates, professionals, and some skilled trades. Many of these customers are returning to Dhanmondi area after living elsewhere and yearn for a simpler life for their family. Many others are transferees with large corporations, having come from more expensive living areas of the country. Therefore we feel we can target this niche for our direct sales outlet. As we expand into the office and industrial furniture markets, we will target corporations, hospitals, and businesses of all sizes. The end user for our product will be those who appreciate fine workmanship, durability, quality craftsmanship and fine wood; the discriminating buyer who is selective and does not want a typical, mass-produced product. Our customers will not hesitate to pay for top quality and workmanship that will last for decades, even centuries that will become heirlooms. Our initial primary market will be small independent furniture retailers within a 250 mile radius of the Dhanmondi, which will include such major markets as New Market, Azimpur, Panthopoth, Green road, Farmgate, Mirpur, Jatrabari, Motijhil and Mohammedpur. We will target them until we are able to craft enough quality furniture to distribute to larger furniture chains.

Page

18

Target market by categories: Age: The age range of the customers are 2-5year old, 20-30years old and 40-70years old people. Gender: The gender of the customers are Male and Female. Family size: In Dhanmondi and its side areas families are maximum small family. Our targeted families are Small family and Big family Income: The customers income level will be 10,000tk to 30,000tk per month 30,000tk to 50,000tk per month 50,000tk to 70,000tk per month 70,000tk to 1,00,000tk per month Occupation: Occupation is not clearly defined for the target market of our product. But the customers are Job holder and Business person Education: The education level of the target customer is HSC Higher graduation like BBA & MBA PHD and others. Religion: The religion of the most customers is Muslim. There is also having some other religion peoples. The religions of our customer are

Page

19

Muslim Hindu Buddhist Christian And others Nationality: Most customers nationality is Bangladeshi but there have also some other nationality people like American English Nigerian etc. We have targeted for the upper part of the lower class, middle class, upper middle class, and lower part of the upper class of the society. Middle Class Upper- Middle Class Some portion Upper class

Competitive comparison
Within our niche we have two significant competitors, Akhter Furniture and Hatil Furniture. Akhter is a bigger company but like us, operating mainly in our same niche, whose marketing is better than its product quality. Akhter and Hatil furniture are the market leader and we are the follower because we are new in this market. But to stay in market we use our quality to attract our consumers. Competitors profile: Our competitors profile are given below1. Hatil Complex Ltd. is a leading doors and furniture manufacturer in Bangladesh. Hatil has been established in 1989 following the footsteps of H.A. Timber Industries Ltd. - a

Page

20

company running from 1966 with reputation in timber processing sector. Strengths: Good marketing, strong advertising budget, relationships with distributors, strong direct sales. Weaknesses: The product is more standardized, and of lesser quality, with less sense of design and materials and workmanship. 2. Akhtar Furnishers Ltd (AFL) started their business in1976. Akhtar Furnishers Ltd (AFL) has been committed to the ideal of creating furniture of such impofessionals who sell and deliver it. Today, every employee feels it is a brand created by them, and each of us is dedicated to earning your confidence and building on this tradition of excellence. Strengths: Financial backing, product quality. Weaknesses: AFL has not seemed to understand our niche, where to find the buyers, how to market as a specialty niche instead of the more traditional furniture channels. Other competitors are Ahmed furnishers, anarkoli furnitures, antara farnishers, anupam furniture, asha furnitures, aver green furniture etc

Page

21

Overall Marketing Strategy

We focus on a special kind of customer, the person who wants very high quality office furniture customized to work beautifully with modern technology including personal computers, scanners, internet connections, and other high-tech items. Our customer might be in larger corporations, small or medium business, or in a home office with or without a home-office business. What is important to the customer is elegance, fine workmanship, ease of use, ergonomics, and practicality. Our marketing strategy assumes that we need to go into specialty channels to address our target customer's needs. The tie-in with the high-end quality catalogs like Sharper Image is perfect, because these catalogs cater to our kind of customers. We position as the highest quality, offering status and prestige levels of purchase. The product strategy is also based on quality, in this case the intersection of technical understanding with very high quality woodworking and professional materials, and workmanship. Our most important competitive edge is our assembly strategy, which is based on interlocking wood pieces of such high quality that assembly is not only a pleasure for our customers; it is actually a feature that enhances the sense of quality.

Page

22

Our marketing objectives

Maximize profit margin Objective of the Pacific Furniture is to provide high quality product and satisfy our customer by our product. We will take premium price to our customer other than our competitors. Thus we will try to maximize our product. Quality leadership The main objective of Pacific Furniture that its responsibility to provided best quality what we will promise to our customers. Pacific Furniture sets main objective to provide quality products that satisfy the customer need and their requirement. So Pacific Furniture will deliver the quality product. Long relationships with customer We will try to provide superior value to our customer what we have promised through advertising. So we believe the customers will be loyal to our brand and build long term relationships. Communication objective We will use different sources to attract their customer. The objective of Pacific Furniture is to create awareness in our customer about our new product. Pacific Furniture also tells their customer that they provide pure wooden furniture to their customers. Strategy marketing objective To build unique distribution system that provides ubiquity at low cost. To build high speed, efficient and vertical integrated manufacturing capabilities to gain low cost advantage.

Page

To redesign packaging to a more attractive and familiar.

23

To increase advertisement activities.

 To make innovation in product so that it become more portable and in convenience oriented form. To improve product quality as ever provide To maintain positive and steady growth each month. To experience an increase in new customers i.e. we have to ensure that our products have a high trial rate which will help us to turn these new customers into long term customers. Generate brand equity at the markets we are catering to as well as within the supplier and distribution networks.

Positioning
Pacific Furniture handcrafts furniture from selected and custom designs. By doing custom design work, we have the ability to meet any special requirements of customers be it design, wood, color or type of construction. Our personalized service provides our customers with their own personal specialist. Our personal specialist will maintain a database of their clients valuable information such as client name, personal likes and dislikes, wish list information, past purchases including dates, price, and style, serial numbers and any other data which will assist our customer in target their marketing efforts. We also keep a photo inventory for insurance purposes as a part of our customer service. Many of our customers have returned to a smaller community and have purchased expensive homes and wish to furnish them with exquisite furnishings which they can pass on to their children, family and friends. They have a higher education background and are employed by large companies. They use the internet frequently and appreciate the convenience of having access to shopping and personal records online. Our main retail competitor, Akhtar furnishers ltd, is located in New Elephant road, 25 minutes away. We plan to beat this competition by offering more variety and having a personal service. Our other competition is from chain stores, some of which we plan to supply as a wholesaler.

Page

24

Risk and Overcome

Our main risks are given belowRaw material: Some time our supplier will not capable to supply us raw material and its a big risk for us. And for that we will buy it from our local wood seller who are sale wood locally. Strike: The workers will strike from their work. On that time we will take an emergency action to cool down them and back them to work. Advertisement problem: Some time we will face Advertisement problem and for that problem our Marketing will slow down. On that time we will make some campaign for recover that risk. Poor management: Poor management also a risk for our business. If we see that we have poor management then we will recover it and increase our management strength. Natural disaster: For uncertainty of Natural disaster we stock some wood for our future production and recover this type risk.

Pricing
Our products prices are given below by categorically:1. Bed sheds: Single Bed sheds Semi double bed sheds Double bed sheds 2. Almira : Small Medium Big 12000 25000 20000 9000tk 14000tk 20000tk

Page

25

3. Sofa: Single Long Set 8000 18000 40000

4. Dining table: Table with 4 chares Table with 6 chares 5. Dressing table: Small Medium Large 8000 15000 23000 13000 20000

Distribution
In the next five year we want to increase our sell 25.45%, for this we have to increase our main distributors number in the remote area of Bangladesh. We have to evaluate their capacity and then try to sell our product in their distribution network more frequently. We have a plan an action program for our distributors sales persons. We are new in this market but still we have already covered Dhaka and some other districts by our strong distribution network. We have divided Dhaka and other districts into some operational zones and each zone has its separate distributor. Beside this we are trying to cover all the districts and some of the major Thanas by appointing new distributors.

Page

26

Following is the flowchart of our distribution network:

Factory

Super Shops

Distributors

Final consumer

Final consumer

A distribution strategy defines how you are going to move products from point of creation to points of consumption, in a cost-effective manner. The effectiveness of distribution coverage and practice is of paramount importance in achieving the desired furniture sales.

Location
Our companys factory will locate in Gazipur. And our outlets are located in Dhanmondi, New Market, Azimpur, Panthopoth, Green road, Farmgate,Mirpur, Jatrabari, Motijhil and Mohammedpur.

Page

27

The advantage of this location are given belowo Raw materials: We collect our raw materials like wood from various areas for the easy accessibility and less barriers. The transport facility is good for truck and Lorries. The areas areSundarban Khagrachari Chittagong Bandorban o Place of Factory establishment: Our factory will locate in Gazipur because there have easy and low cost labor accommodation, easy transportation to Dhaka and easy transportation of raw materials from Sundarban. o Required skills with work force availability: Gazipur is suitable for getting much labor in low cost. And for that reason we will locate our factory to Gazipur. o Ecological requirement: Gazipur is stay beyond the prohibition of ecological disasters like flood, earthquake etc.

Page

28

o Public utility: The public utilities like Electricity, Gas, Water and other security service are available here and also for this reason we will locate our factory there. o Transportation of finish goods: Gazipur is most popular for availability of delivery vehicles. And for that reason we locate our factory for easy transport of our finish goods. o Scope for expansion of our factory: Our head office will be locate in Mirpur and outlets are locate in Dhanmondi, New Market, Azimpur, Panthopoth, Green road, Farmgate,Mirpur, Jatrabari, Motijhil and Mohammedpur. And we can expand our factory to other area like Narayangonj, Savar etc. because that areas also famous for transportation affordability and customer convenience.

Advertising and promotion

Pacific Furniture will use different sources to communicate their target marketing. We will use those sources on that the more customer attract like Local Cable, Newspapers, Billboard and when they lunch any scheme in Furniture they use pamphlets to aware their customer. Pacific Furniture will use the channel to attract the customer and give fully information about Furniture through these Electronic media. As our target consumers are middle and old age people, for this reason we promotion our product to give advertise in television, radio. We also use vehicle writing method and posturing for our product advertisement.

Page

29

We choose some media for our products advertising. This are1. Internet 2. Television 3. Radio 4. Newspaper

Internet: We use internet based advertising like Facebook, Prothom-alo.com, dailykalerkantha.com, bdpratidin.com etc. In facebook and other daily newspapers website there have so much visitor every day. And the total amount of visitor from those website is more than 10,00,000 visitor every day. And this the most effective advertising plot for us.

Page

30

Television: Television is also a most popular media item. Every people of our country use it for entertainment. And its our platform to advertise our product. We use Channel I and Ekushey television for our advertising.

CHANNEL I
Frequency- Continuous -Alernating Basis Cost-100,000

Ekushey TV
Frenquency- Intermitted basis Cost- 300,000

Radio: Radio also a most popular media item in Bangladesh. Many people of our country use it for audio entertainment. And its also our platform to advertise our product. We use Radio today, ABC Radio, for our advertising.

RADIO TODAY
At Somrame popular Prog Cost-30,000

ABC RADIO
Same policy Cost-30,000

Newspapers:Most people of Bangladesh read newspaper in morning after wake up. And for that reason we use most popular newspapers for our advertising. The newspapers are Prothomalo.
PROTHOM ALO
5th page- Once aweek Cost-30,000

Page

31

Sales promotion
Offering free samples: To promote our product we give free samples to our customers to understand our product quality. And its a popular promoting policy in Bangladesh.

Coupons Coupons are also given to our consumers when they are come to buy our product. By that coupon a customer can win an exclusive prize. And for that customer will increase.

Discount on sale: We give some discount on our sale for getting more customer easily.

Publicity: Product launches: On the time of product launches we arrange a meeting or function for our product publicity. By this type action product publicity is increased very much.

We arrange some special events including community involvement with name of our brand. And also for that our popularity will increase. By writing articles on newspapers or magazines we can increase our publicity. By sponsor on local festival fair we can gain publicity. We can also increase publicity by attend on business fair.

Company website:

Page

32

By our company website every one can know with us and our products. And they also can buy products from there.

Sourcing
We work with three wood suppliers, all local. CTG Wooden Complex supplies most of our oak and a bit of cherry and some other specialty woods. CTG Wooden Complex has been in business for as long as we have, and has given us good service and good prices. This is a good, stable supplier. Golden aero wooden manufacturing is a good second source, particularly for cherry and specialty woods. We've used Dhaka wood for filling in when either of our main two suppliers were short. We also work with a number of specialty manufacturers for furniture fittings, drawer accessories, glass, shelving accessories, and related purchases. Although we aren't a major player compared to the major furniture manufacturers, we are one of the biggest buyers of the custom materials we need.

Product life cycle strategy

Page

33

Introduction: The product life cycle is based use to interpret product and market dynamics. At the introduction stage we launch our product, Furniture. As we are new in the market thats why our market is small, our sales is low, and our competition is also low. For this reason we need to spend more for our product promotion. For beginning a new business our cost per product will be high. So our prices will also being high. For this reason first year our profit will be low or we will face loss.

Growth: Pacific furniture is serve furniture product but in the growth stage we think our seals will increase than the introduction stage. For our strong marketing strategy people will know about product rapidly and our sales will increase. Here our product market is growing, our sales are high, and our competition is on moderate. To compete with our competitors we have to decrease our cost how much we can. At the growth stage our profit will increase day by day. Because in this stage we can decrease all cost of our product. We will expenses more money in advertising and promotion of our product and give much importance in these two sectors. So that more customers will be attract to our product. As our product will move toward maturity stage, the number of competitors will increase day by day. Then it will be challenge for us to stay in the market. In this stage we can create awareness about our product. For this reason we will be able to maximize our product share.

Maturity: In the maturity stage our product will reach top most level of sales. At this time our production cost per unit will be low. Number competitors will be falling in this stage. Here our product market is large, our sales are flattening, and our competition is high. In this stage our profit will me be at top level because in maturity stage (4.6 years) we will reach break event point. In this stage our market share will be increasing and distributors will increase. To hold the market we will launch new product.

Decline: In this stage our products sales will decrease day by day. We will expend more for R & D. We will try to extend our product. Different problems will be faced in this stage such as old looks.
Page

34

SWOT Analysis

SWOT is the combination of 4 key words, which constitutes the internal and external issues of a company. Strength: Strength refers to the competitive advantages and the other distinctive Competencies that a company can exert in the market place. Weaknesses: Weakness is constraints that hinder movements in certain directions. Opportunities: A marketing opportunity is an area of buyer need in which a company can perform profitable. Threats: A threat is challenge posed by an unfavorable tend or development that would lead, in the absence of defensive marketing action, to deterioration in sales or profit.

Page

35

A Snapshot of SWOT Analysis: Strengths Innovative product Competitive Pricing Strong Distribution Channels Opportunities Growing number of customers Creation of Loyal customers Increasing customer awareness Cost efficient Technology Rise of the brands value Threats Increased Competition Down-ward pricing pressure Large number of indirect competitor Economic factor Copyright threats Weaknesses Lack of Brand Awareness Similarity of packaging

Duties and responsibilities of partners

The responsibilities and duties of all partners are given belowManaging Director Our companies managing director will be Zia-ur-Rahman Galib. Managing Director (MD) of a company is the leader of an organization. The position of our company will be held by MD. This the highest position in an organization and have the responsibility for the success or failure of that organization. The main duties and responsibility of a MD is Welcome new employees in the organization. Making the organization Effective -capable of doing the right things. Making the organization Innovative for doing new things. Managing all forms of incoming and outgoing communication.

Responsibilities of Marketing Manager:

Page

36

Md. Yeasin Khan is the Marketing manager of our company. The Marketing departments works are operated by Marketing Manager. Marketing managers major duties are-

Determine the eligibility of those wanting to sell at the market based

on the rules established by markets governing body. Actively recruit new producers to expand the variety or products for sale.

Collect

rental fees from vendors and maintain accurate records of payment. Many markets charge a flat daily fee, while others collect fees based on a percentage of a vendors sales (usually between 5 and 8%) selling spaces if they are not allocated on a firstcome, firstserved basis. It is recommended to keep vendors in the same space throughout the season to avoid both vendor and shopper confusion. is one of the main motivations for buying local produce, and your image should project freshness, quality, and value. Promotions may include special events, banners, signage, radio spots, and free coverage in local newspaper.

Assign

Advertise and promote the market. Research suggests that freshness

Responsibilities of R & D Rafiqul Islam is the R & D manager of our company. The R & D departments works are operated by R& D manager. R& D managers major duties are-

Research for the new product idea or modify the existing one. Eliminating cost for producing by using different method. Design of new product process and type. Focus on improvement, development, modification and introduction of
new product, features, process. Be up to date with new technologies, approach. Responsibilities of Production Manager For this position we have selected Fahima Akter Aurin. She will also organize the production/operation department of the organization. The key responsibilities of this position are stated below
Control the whole production process.

Page

37

 Ensuring raw material is providing timely and made into finished

goods effective. Set standard and targets for each section for production process. Monitoring the quantity and quality of raw material used and produced goods of a production line. Strictly monitoring each stage of production. Human Resource (HR) Manager Arif Hossain is the HR manager of our company. The human resource (HR) departments works are operated by HR manager. HR managers major duties are-

Recruiting is the main duty of a HR manager. Arrange training programs for those who are newly selected to join
the organization and also or existing employee. See the performance of the employee. Post advertisement in printed media, Internet or business magazines to hire new employee. Identification of job, responsibility and duty of the organization. The Responsibility of Finance Manager Sarkar Rajibul Hasan is the Finance manager of our company. The Finance departments works are operated by Finance Manager. Finance managers major duties are-

Finance manager oversees the preparation of financial reports, direct

investment activities, and implement cash management strategies. Develop and implement accounting and internal control systems, standard operating procedures. To deliver accurate and timely finance transactional processing in finance shared service centre. A financial manager is responsible for providing financial advice and support to elements. Formulating strategies and long-term business plan. Developing financial management mechanisms that minimize financial risk.
Page

38

Key Responsibilities of Accountants Omar faruk is the Accounts manager of our company. The Accounts departments works are operated by Accounts manager. Account managers major duties are-

Prepare Compile

profit and loss statements and monthly closing and cost and analyze financial information to prepare entries to

accounting reports. accounts, such as general ledger accounts, and document business transactions.

Establish, Analyze Monitor

maintain,

and

coordinate

the

implementation

of

accounting and accounting control procedures. and review budgets and expenditures for local, state, and review accounting and related system reports for federal, and private funding, contracts, and grants. accuracy and completeness.

Marketing Manager

R & D Manager

Production Manager Managing Director Human Resource Manager

Finance Manager

Page

39

Accounts Manager

Partnership Agreement
FORM OF OWNERSHIP The form of the business is partnership business and all the partners are responsible for the business. The partners are jointly and severally liable for all debts of the firm. Partnership Agreement 1. The name of our business will be Pacific Furniture Company. The factory address of the firm will be Gazipur, Dhaka and the office will be in 72, Mirpur, Dhaka-1208 2. There are 7 Partners of this company. The partners name and address is given belowZia-ur-rahman Galib Managing Director Phone: 02 8645781 (Ext- 08) Mobile: 01558845845 Email: md@pacificfurniture.com Web: www.pacificfurniture.com Md. Yeasin Khan Marketing Manager Phone: 02 8645781 (Ext- 07) Mobile: 01685485625 Email: mktg@pacificfurniture.com Web: www.pacificfurniture.com

Fahima Akter Aurin Production Manager Phone: 02 8645781 (Ext- 02) Mobile: 01685485625 Email: production@pacificfurniture.com Web: www.pacificfurniture.com

Arif Hossain HR manager Phone: 02 8645781 (Ext- 03) Mobile: 017215845865 Email: hr@pacificfurniture.com Web: www.pacificfurniture.com

Page

40

Rafiqul Islam R & D Manager Phone: 02 8645781 (Ext- 05) Mobile: 01925452157 Email: rd@pacificfurniture.com Web: www.pacificfurniture.com

Sarkar Rajibul Hasan Finance Manager Phone: 02 8645781 (Ext- 04) Mobile: 01723512458 Email: finanace@pacificfurniture.com Web: www.pacificfurniture.com

Omar Faruk Accounts Manager Phone: 02 8645781 (Ext- 06) Mobile: 01821454781 Email: accounts@pacificfurniture.com Web: www.pacificfurniture.com

3. Its a furniture business. It will produce furniture and sale them to the local market. 4. The investment amount of the each partner is same. Their total investment is 3 crore tk. And every partner gives 42,85,715tk. 5. The partners will share profit and loss equally. 6. Every partner can withdraw not more than 50,000tk every month. 7. The partners job description and the duties and responsibilities is given below:Managing Director Our companies managing director will be Zia-ur-Rahman Galib. Managing Director (MD) of a company is the leader of an organization. The position of our company will be held by MD. This the highest position in an organization and have the responsibility for the success or failure of that organization. The main duties and responsibility of a MD is Welcome new employees in the organization. Making the organization Effective capable of doing the right things. Making the organization Innovative for doing new things. Managing all forms of incoming and outgoing communication.

Page

41

Responsibilities of Marketing Manager: Md. Yeasin Khan is the Marketing manager of our company. The Marketing departments works are operated by Marketing Manager. Marketing managers major duties are: Determine the eligibility of those wanting to sell at the market based on the rules established by markets governing body. Actively recruit new producers to expand the variety or products for sale. Collect rental fees from vendors and maintain accurate records of payment. Many markets charge a flat daily fee, while others collect fees based on a percentage of a vendors sales (usually between 5 and 8%). Assign selling spaces if they are not allocated on a firstcome, firstserved basis. It is recommended to keep vendors in the same space throughout the season to avoid both vendor and shopper confusion. Advertise and promote the market. Research suggests that freshness is one of the main motivations for buying local produce, and your image should project freshness, quality, and value. Promotions may include special events, banners, signage, radio spots, and free coverage in local newspaper. Responsibilities of R & D Rafiqul Islam is the R & D manager of our company. The R & D departments works are operated by R& D manager. R& D managers major duties are: Research for the new product idea or modify the existing one. Eliminating cost for producing by using different method. Design of new product process and type. Focus on improvement, development, modification and introduction of new product, features, process. Be up to date with new technologies, approach. Responsibilities of Production Manager For this position we have selected Fahima Akter Aurin. She will also organize the production/operation department of the organization. The key responsibilities of this position are stated below: Control the whole production process. Ensuring raw material is providing timely and made into finished goods effective. Set standard and targets for each section for production process. Monitoring the quantity and quality of raw material used and produced goods of a production line. Strictly monitoring each stage of production.
Page

42

Human Resource (HR) Manager Arif Hossain is the HR manager of our company. The human resource (HR) departments works are operated by HR manager. HR managers major duties are: Recruiting is the main duty of a HR manager. Arrange training programs for those who are newly selected to join the organization and also or existing employee. See the performance of the employee. Post advertisement in printed media, Internet or business magazines to hire new employee. Identification of job, responsibility and duty of the organization. The Responsibility of Finance Manager Sarkar Rajibul Hasan is the Finance manager of our company. The Finance departments works are operated by Finance Manager. Finance managers major duties are: Finance manager oversees the preparation of financial reports, direct investment activities, and implement cash management strategies. Develop and implement accounting and internal control systems, standard operating procedures. To deliver accurate and timely finance transactional processing in finance shared service centre. A financial manager is responsible for providing financial advice and support to elements. Formulating strategies and long-term business plan. Developing financial management mechanisms that minimize financial risk. Key Responsibilities of Accountants Omar faruk is the Accounts manager of our company. The Accounts departments works are operated by Accounts manager. Account managers major duties are: Prepare profit and loss statements and monthly closing and cost accounting reports. Compile and analyze financial information to prepare entries to accounts, such as general ledger accounts, and document business transactions. Establish, maintain, and coordinate the implementation of accounting and accounting control procedures. Analyze and review budgets and expenditures for local, state, federal, and private funding, contracts, and grants. Monitor and review accounting and related system reports for accuracy and completeness. 8. Conforming of all orders by all partners. 9. By board meeting of the partners will resolve the major and minor problems. 10. When any partner will die or retire or insufficient to stay with us then the partnership will dissolve. It not mean that the company is switched off.
Page

43

11. A partner may, after giving written notice to the other partners, transfer his/her interest in the partnership to a revocable living trust of which he/she is the grantor and sole trustee. 12. When every partners want to disclose the business and if government will find any unethical work on the business then the business will closed.

Staffing plan
Strategic Staffing: When we are hiring team members, we need to look at them a little differently. Before, we looked for the ability to cover a shift, where now we look for people that can stretch two more levels from where they are today. Delivering our customer experience is not easy. We need to find people who are passionate about Pacific Furniture and our culture Fun, Integrity, Balance, Empower, and Respect." It's not about getting a group of people to interview; it's about getting the right people. To find these potential employees, we will try new ways to attract and reach the new talent pool of Generation. To support the general managers in the seasonal swing in staffing their stores, the recruitment team had given some stores access to online tools for their hourly team members. We can get help from many web site, University, Newspaper and Business Magazine to find this more qualified talent pool. Performance Management: Performance Management including Individual Development Plans (IDP), examines the employee as a whole, measuring skills, behaviors, and results. The mindset will shifted once again; before performance evaluations will be very tactical and activity based, where as today, leaders are asked to dig deeper into the behaviors that drive results.

Page

The focus is more heavily weighed on assessing potential correctly and then developing the plan based on their strengths, weaknesses, or opportunities.

44

POSITION

EDUCATIONAL
BACKGROUND

Experience

OTHER QUALIFICATION

Managing Director

MBA (Major in HR)

7yrs

Excellent interpersonal communication skill, excellent leadership.

HR Executive

BBA(Major in HR)

5 yrs

Managerial experience.

Marketing Manager Brand Executive

MBA(Major Marketing) M Sc / B Sc

10yrs

Innovative and hard working

4 yrs

Good English

command

in

Production Manager Executive

MBA

4 yrs

Command Production

over

Graduate Marketing

in 3 yrs

Command over office Experience Decision as

Ms

Finance Manager

MBA, Major in 8 yrs finance.

provider,

financial analyst. Accountant BBa Major Accounting. National manager Sales MBA 7 yrs Excellent interpersonal communication skill, excellent leadership. Supervisors Bachelor Degree 3 years Good about business. knowledge or MBA, 3 years in Skill terms. in accounting

Page

45

Furniture

Recruitment This is the process of discovering potential candidates for actual or anticipated organizational vacancies. Employees can be recruited from internal search and/or from external search. However, Pacific Furniture will be recruiting through external search. External search can be done through advertisements in newspapers, employment agencies, colleges and universities and from other professional organizations. The recruitment process of Pacific Furniture will start by giving advertisement in newspapers, where the applicant will be told to collect application form from the main office in Mirpur. The applicant will have to fill the application form and submit it along with a cover letter and curriculum vitae. The search for employees can also be done through online employment agencies like bdjobs or in prothomalo jobs. Circulation can also be done in colleges and universities. Selection Selection activities follow a standard pattern, beginning with an initial screening interview and concluding with the final employment decision. The selection process for Pacific Furniture will follow the steps given below: Preliminary Screening: The first step in the selection process whereby job inquiries are sorted. This will consist of two steps: screening inquiries, and screening interviews. The applications will be screened and sorted, and then the selected applicants will be called for an interview, and the final applicants will be screened and selected from the final interview. Final Selection: The final candidates selected will be therefore, be assigned their work.
Page

46

Employment Test: After the employees are selected, they will have to go through an employment test. This is not applicable for the blue collar workers but mandatory for the white collared employees and for the sales assistants and the cashiers.

Sales Forecast
For the year 2013

Month/Product name January February March April May June July August September October November December Total Net total

Bed shed 50000 60000 80000 150000 140000 70000 90000 80000 170000 70000 75000 78000 1113000

Almira 60000 40000 85000 65000 50000 90000 80000 65000 45000 30000 70000 55000 735000

Sofa 120000 140000 70000 150000 65000 54000 65000 25000 50000 45000 65000 85000 934000

Dining table 20000 90000 53000 85000 45000 65000 75000 64000 85000 45000 150000 60000 837000

Dressing table 20000 40000 35000 25000 50000 15000 5000 12000 65000 40000 38000 54000 399000 4018000

Page

47

Sales Forecast - 2013

Total Production Total Sales

: 40,50,000 : 40,18,000

Explanation of sales forecasting: By considering several factors we have estimated future sales throughout the year of 2013. We are going to start production and selling from the Jan of 2013. We are launching five products. Bed sheds Almira Sofa Dining table Dressing table

Page

48

1) January: Our production and selling will be start from January. As the market is unaware about the product, so we will produce 25 units.

2) February: Considering cultural environment and our product capability, we will increase our product 40 and sales will be 35 units. 3) March: We will sustain of production level but the sales will increase 45 units because of increasing awareness. 4) April: As summer started, the factor weather and easy availability of material will increase our production to 75 as well as sales to 60. 5) May: In this month both production and sales will increase due to middle of the year. 6) June: We will sustain the production level and sales will be in acceptable level for weather factor the sales will down for some unit. 7) July: As Ramadan will start for end of July, it will affect our sales positively, it will be 60 units. 8) August: Because of Ramadan and biggest festival Eid-Ul-Fitar, our sales will be the highest of the year, as we estimated. 9) September: In these months, the sales will be in normal level. 10) October: Two religious festivals will be occurring in this months Eid-Ul-Azha and DurgaPoja. So, the sales will be second highest. 11) November: As because of weather and less material availability, the sales will decrease. 12) December: For some factors like weather and social forces, the sales volume will decrease.
Page

49

Sales Forecast for year 2013-2017

2013 Total Sales Total production Bed shed Almira Sofa Dining table Dressing table 4018000 4050000 1113000 735000 934000 837000 399000 2014 9854000 9953000 2854000 1900000 1500000 2500000 2100000 2015 14500000 15000000 4200000 3800000 2000000 3500000 1000000 2016 23500000 23600000 6500000 4500000 3500000 6000000 3000000 2017 32000000 32200000 10000000 7000000 5500000 6500000 3000000

Page

50

Pacific Furniture
Cash flow statement 2013
Cash in Cash sales Bed sheds Almira Sofa Dining table Dressing table Total Collection from A/R Term loan processed Sales fired asset Total cash in Cash out Rent Magi Salaries Other Salaries wage Telephone Utilities Repair License municipal Insurance Other Operation Pay of purchase of net asset Pay of Income Pay of A/B Total cash out Opining balance Add : Cash in (-) Cash out Surplus 50000 500000 50000 2506400 50000000 1270400 2506400 48764000 50000 500000 30000 2206400 30000000 1370300 2206400 29163900 50000 60000 30000 1916400 30000000 1323400 1916400 29407000 50000 70000 20000 1912400 30000000 1475400 1912400 29563000 50000 60000 30000 1722400 30000000 3350080 1722400 31627680 50000 70000 30000 1734400 25000000 1294000 1734400 24559600 50000 80000 20000 1785400 25000000 2115400 1785400 25330000 50000 80000 30000 1764000 25000000 1046400 1764000 24282400 300000 732000 192500 900 30000 1000 40000 10000 10000 1000000 10000 10000 800000 10000 10000 500000 10000 5000 500000 10000 5000 300000 10000 7000 300000 10000 7000 300000 10000 7000 200000 300000 732000 192500 900 30000 1000 300000 732000 192500 900 30000 1000 3000000 732000 192500 900 30000 2000 300000 732000 192500 900 30000 2000 300000 732000 192500 900 40000 2000 350000 732000 192500 900 40000 3000 350000 800000 193000 1000 40000 3000 50000 60000 120000 20000 20000 270000 400 1000000 60000 40000 140000 90000 40000 370000 300 1000000 80000 85000 70000 53000 35000 323000 400 1000000 150000 65000 150000 85000 25000 475000 400 1000000 140000 50000 65000 45000 50000 350000 80 1000000 2000000 1270400 1370300 1323400 1475400 3350080 1294000 70000 90000 54000 65000 15000 294000 0 1000000 90000 80000 65000 75000 5000 315000 400 800000 1000000 2115400 1046400 80000 65000 25000 64000 12000 246000 400 800000 January February March April May June July August

Page

51

Pacific Furniture
Cash Flow Statement- year 2013

Page

52

Cash flow statement 5 Years

Pacific Furniture Company
Cash Flow Statement- Year 2013-2017
2013 Cash In Cash sales Collect from A/R Term loan Process Sales of fixed Assets Other Cash receive Total Cash in Cash Out Rent Mgt Salaries Other Salaried wage Telephone expense Utilities Repair and maintenance License and main. Insurance Other operating expense Pay of purchase of fixed assets Pay of long term loan Income tax payment Pay of AIP Total cash out Opening Balance Ad : Cash In Less: Cash out Sur plus 3,50,000 2,25,32,2000 325000000 15351720 22917200 317434520 4,50,000 23,34,000 317434520 20000000 23340000 314094520 5,00,000 2,61,80,000 314094520 28066400 26180000 315980920 5,50,000 2,88,35,000 315980920 30048000 28835000 317193920 5,00,000 3,84,50,000 317193920 36400000 38450000 315143920 45,50,000 6,00,000 50,00,000 6,00,000 60,00,000 6,00,000 70,00,000 12,00,000 1,00,000 1,20,00,000 1,20,000 1,20,000 1,20,000 2,20,000 4,00,000 39,50,000 91,24,000 23,12,500 11,200 4,41,500 40,00,000 95,30,000 25,00,000 20,000 6,00,000 41,00,000 98,00,000 28,00,000 30,000 7,00,000 45,00,000 10,00,000 30,00,000 35,000 8,00,000 50,00,000 1,30,00,000 50,00,000 50,000 10,00,000 40,50,000 15351720 4018000 30,000 11200000 9854000 50,000 8800000 5,58,000 66,00,000 18704000 14500000 60,000 10000000 10,00,000 60,00,000 24560000 23500000 80,000 1000000 20,00,000 80,00,000 24580000 32000000 2,00,000 8000000 30,00,000 1,00,000 40000000 2014 2015 2016 2017

Page

53

Pacific Furniture
Cash Flow Statement- year 2013-2017

Page

54

Pacific Furniture Income Statement

Pacific Furniture Income Statement For the year 2013-2017
Year 2013 Sales Less: Sale return and allowance Net Sales Cost of goods sold Gross margin Less: Expenses Selling Expense Administrative Expense Depreciation Expense Utilities Expense Miscellaneous Expense Advertising Expense Earnings Before Income & Tax Income Tax (15%) Net Profit After Tax 90,000 99,000 10,00,000 20,000 50,000 10,00,000 -2259000 244,000 36,600 207,400 1,10,000 1,20,000 12,00,000 30,000 50,000 10,00,000 -2710000 4,944,000 741,600 4,202,400 1,50,000 1,60,000 13,50,000 50,000 80,000 15,00,000 -3290000 7,900,000 1,185,000 6,715,000 2,00,000 2,60,000 16,00,000 80,000 1,50,000 15,00,000 4018000 -30,000 3,988,000 -1485000 2,503,000 Year 2014 9854000 -50,000 9,804,000 -2150000 7,654,000 Year 2015 14500000 -60,000 14,440,000 -3250000 11,190,000

Year 20

Page

55

Pacific Furniture
Balance Sheet As for year 2013-2017
2013 Asset Current assets : Cash Accounts Receivable Total current assets Long term Assets : Land Building Machinery Less: Accumulate Depreciation Total long term assets Total assets Liabilities : Bank loan Net worth Total liability 4000000 25,862,000 30,002,000 4000000 30,374,000 34374000 4000000 37,450,000 41450000 4000000 49,700,000 7000000 10000000 10000000 -1096000 7500000 12000000 11000000 -6100000 8000000 13500000 12000000 -6700000 9000000 15000000 13500000 -7500000 4018000 80,000 40,98,000 9854000 120000 9,974,000 14500000 150000 14,650,000 23500000 200000 2014 2015 2016

23,7

25904000 30,002,000

24400000 34,374,000

26800000 41,450,000

300

53,7

537

Break even analysis

Break even analysis is a technique widely used by production management and management accountants. It is based on categorizing production costs between those which are "variable" (costs that change when the production

Page

56

output changes) and those that are "fixed" (costs not directly related to the volume of production). Total variable and fixed costs are compared with sales revenue in order to determine the level of sales volume, sales value or production at which the business makes neither a profit nor a loss (the "break-even point"). For our business, it is very necessary to do break-even analysis. After knowing our break-even quantity, we will be able to make our business profitable. Fixed Costs Fixed costs are those business costs that are not directly related to the level of production or output. In other words, even if the business has a zero output or high

Total Fixed cost Land Building Equipments Vehicle Machineries Furniture Insurance Ex. License Ex. Total Fixed cost

70,00,000 1,00,00,000 50,00,000 60,00,000 1,00,00,000 20,00,000 5,00,000 2,00,000 40700000

Variable Costs Variable costs are those costs which vary directly with the level of output. They represent payment output-related inputs such as raw materials, direct labor, fuel and revenue-related costs such as commission. A distinction is often made between "Direct" variable costs and "Indirect" variable costs.

Page

57

Total variable cost : Factory overhead cost Transportation Exp Utility Bill Production payroll Telephone Bill Advertisement Administration payroll Total

80,000 50,000 1,50,000 10,00,000 11,200 10,00,000 12,00,000 34,91,200

Total cost Total sales Sales unit Sales per unit

= 40700000 = 4018000 = 300 unit = 4018000/300 = 13393.33

Variable cost per unit

= 3491200/300 = 11637.33

BEQ

= 40700000 / (13393.33-11637.33) = 40700000/ 1756 = 23177.68 unit

Total cost: Fixed cost + Total variable cost Fixed cost Total variable cost (23177.68*11637.33) Total cost Total Revenue = 40700000 = 269726310.8 = 310426310.8

Page

58

= 23177.68*13393.33 = 310426316.8

So, TOTAL COST= TOTAL REVENUE

Figure: Break-even point

Ratio Analysis
Roles Current ratio Curren Asset/ Current Liabilities current asset - inventory - prepaid expense/curent liabilities debt/equity Total operating expenseinterest expense 1. Cost of good sold/ Avg inventory 2. Avg days to turnover Average collection period Accounts receivable/Sales 2013 4098000/30002000 0.14% Quick or asset Ratio (4098000-300000200000)/30002000 0.12% Debt equity ration Operating expense ration Inventory turnover ratio 2000000/3000000 0.67% (2259000200000)/4018000 0.51% 1485000/660000 2.24 365/2.24 162.22 days (80000/4018000) * 365 365/3.25 111.96 days (120000/9854000) * 365 2014 9974000/34374000 0.29% (9974000-700000200000)/34374000 0.26% 2000000/3000001 0.67% (1090000200000)/9854000 0.09% 2150000 / 660000 3.25 365/4.92 2015 14650000/41450000 0.35% (14650000-700000200000)/41450000 0.33% 2000000/3000002 0.67% (1900000-200000) / 14500000 0.12% 3250000/660000 4.92 74.04 days

237

(23 200

200

(27 200

390

Page

(150000/14500000) * 365

59

365

(20 * 36

7.29 days Return on total asset Return on Equity on investment operating income/total asset Net income/ Share holder equity 226000/30002000 0.01% 192100/7500000 0.03%

4.46 days 1090000/34374000 0.03% 926500/7500000 0.12%

3.79 days 1900000/41450000 0.05% 1520000/7500000 0.20%

276

220

Page

60