REPORT ON ENTREPRENEURSHIP

SUBMITTED TO,
SIR YAWAR ABBAS
SUBMITTED BY,

NAMES Reg. #
MUHAMMAD SHAHNAWAZ 2008-Ag-43

MBA (Reg) 4th SEMESTER

DEPARTMENT OF BUSINESS MANAGEMENT SCIENCES

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 ACKNOWLEDGEMENT

Countless thanks to ALLAH Almighty for giving us such extraordinary abilities and
making us privileged enough to take part in such activities and all respects and regards to
Holy Prophet Hazrat Muhammad (PBUH) for giving us the faith paving us on the
right path with the essence of faith in GOD.
We would like to thank our Supervisor Mr. Yawar Abbas for his cooperation and help.
He fully supported us throughout our work. We express our heartiest gratitude to him.
His cooperation made this project a lot much easier..
We also express our profound gratitude to ALL OUR Friends who supported us a lot not
during this project but through out the whole semester.
Finally, we wish to record our deepest obligations to our Parents and Family for their
prayers and continuous support.

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 GOALS

The primary goal of this project is:

o To provide the reader (i.e. Investors, Retailers and consumers) with a basic
understanding about our product, that is, INSTANT TEA manufactured by
GREEN LAND MANUFACTURES a private limited company.

o To let them know the features of the product that what are the ingredients of the
product and how this tea is different from the others in the market.

Green Land Manufactures

Saddar Bazaar Gulam Muhammad Abad

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 Shop number 165, Commercial Market

(041) 8862348

www.greenlandmanufactures.com

Description of Business:

Green Land Manufacturers is a company which provides a unique product Instant Tea.
The Instant Tea is basically a ready to use tea with all the required quality ingredients
(tea, powdered milk, and powdered sugar) with different flavors, just put the teabags
into the hot water and a refreshing hot tea is ready.

Financing

Initial financing requested is Rs 4,000,000 loan to be paid off over ten years. This debt
will cover office space, office equipment and suppliers, two leased vans, advertising
and selling costs.

This report is confidential and is the property of the co-owner listed above. It is
intended for use only persons to whom it is transmitted, and any reproduction or
divulgence of any of its contents without the prior written consent of the company is
prohibited.

EXECUTIVE SUMMARY

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Many Pakistanis have a perception that not having a cup of tea in the morning will leave
a day blank for them, tea one of the most used beverage after water in Pakistan and it is
so popular that its nearly impossible to start a day with out a cup of tea. Serving guests
with hospitality is that guests are always asked for tea in Pakistan, in offices people
always want a tea for refreshment this is explaining how much tea is given importance in
Pakistani peoples life.

The goal of this business plan is to outline the strategies, tactics, and programs that will
make the sales goals outlined in the Green Land Tea Manufactures business plan into
reality in the year 2010. Basically there are 9 persons which are going to establish a
unique business in Pakistan as entrepreneurs. We needed Rs 10.0 billions to start this
business. We have Rs 4.0 billions as owners equity and remaining Rs 6.0 billions will
get from banks in the shape of loan. Pay back period of our investment is 7.83 years.
Capital budgeting showing that our project has a positive net present value and higher
internal rate of return than to the market opportunity rate 13%.
Green Land Tea Manufactures, unlike a typical company, provides a unique form for
taste and high quality tea within no time. The name of the product is Instant Tea. Actually
Green Land Tea Manufacturers is the answer to an increasing demand for quality tea in
shortest possible time.

The instant tea is basically a ready to use tea just put the teabags with all the required
quality tea ingredients (tea, powdered milk, and powdered sugar) into the hot water and
your refreshing hot tea is ready. We are getting the sugar from the local supplier, for the
milk powder we have contracted with 'Everyday' and we are importing tea from Kenya.

As a new brand is get underway in the market there are chances of failure so for that we
have conducted a market research & from that research we came to know that this
product will be a super hit in the market and exactly the customer want this product to
come into the market.

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Marketing will play a vital role in the success of Green Land Tea Manufacturers. The
company will build a brand around the services it offers by heavily promoting itself
through local television, radio, and print advertising. Marketing efforts are just beginning
by the time a potential customer enters Green Land Tea Manufacturers for the first time.
A strong emphasis will be put on keeping customers and building brand loyalty through
programs focused on staffing, experience, and customer satisfaction.

The basic motive behind every business is to generate profits out of it. We also need
profits to manage our needs and growth of the business. We will focus on superior quality
as well as reasonable price that customer can afford.

Basically the idea behind this company is that think big by thinking small means that we
want an entrepreneurial change in the culture of tea. For starting our entrepreneurial
activities we have targeted the small part of working class people because this working
class has one of the major effects on the economy of the country.

For that we are moving with the Motto:

We are not just asking for your money; but we are anxious about your
time

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 TABLE OF CONTENTS

Introduction to product .....9

Vision statement........10
Mission statement.........10
Situational analysis.11
Environmental analysis...11
Swot analysis..12
Pest analysis13
Competitors....14
Direct competitors..14
Indirect competitors....14
Competitor's analysis...15
Keys to success....16
Industry analysis..16
Market share picture...17
Future outlook & trends...18
Venture description..18
Organizational plan .19
Form of business.19
Management team19
Organizational structure21
No of employees22
Check signing authority 23
Salaries..23
Plan to meet personnel needs.23
Performance management system23
Roles & responsibilities of members of organizational charts..24
Production plan.29
Operational plan30
Marketing plan analysis.33

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Marketing mix...39
Product..39
Price..42
Placement..42
Promotion ....46
Assessment of risk....47
Financial plan analysis 48
Contingency plan.55
Harvesting strategy..55
Appendix 56

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 INTRODUCTION TO PRODUCT

It is a new product to be launched in the market about which you have never listened and
even never thought before. It will be launched and come in the market in year 2010. It is
basically a consumer product and is necessity of almost every house and it is usually used
in routine in many houses and offices. The name of the product is: INSTANT TEA.
Instant Tea is manufactured by the GREEN LAND MANUFACTURES. Our tea has
special feature that it is prepared within few seconds and all ingredients (tea, powdered
milk, and powdered sugar) are combined in a balanced quantity in the Quick Time. It is
in the form of teabags. You have to do nothing, just boil water and dip the teabag in that
and your delicious tea is prepared in few seconds time. There was never such an easy
way to prepare a quality tea that we have made possible

WAS IT DREAM?

We strongly believe in an idea and a vision rather than a dream. What we have always
wanted for ourselves, we want this for others as well. We want to make people realize
that they can have the quick time making of tea to save their time.
We would promote Healthy & Tasty living.

Instant tea bags will be very proficient for the users and customers as all want something
that can be prepared quickly and within a blink of an eye. So we have firm belief that as
this product has not been introduced in Pakistan it will have its unique attraction and rare
importance among the consumers. The whole idea behind this concept was to introduce
new and improved drinking habits of the people.

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 VISION STATEMENT
We aim to be the market leaders of Tea Industry

MISSION STATEMENT
We provide instant flavored tea with all required contents in a tea bag to
our time starved customers in urban areas. Our aim is to become market
leader in instant tea with our committed employees.

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 SITUATION ANALYSIS

Tea is the cheapest and most popular beverage that is served at both professional and
social gatherings all over the world. In Pakistan it is counted as a staple food item of
common man and is an integral part of our culture and heritage. Due to these causes
Pakistan consumes a substantial quantity of tea. There are many brands like Lipton,
Tapal, Supreme etc that are fulfilling the Pakistans demand for tea but no one pay
attention to that now people are becoming time conscious. They dont want to waste their
time, they want to utilize their time in productive things, here we found a gap so keeping
in view this need of our customers on which no one is paying attention we are going to
provide tea in the form of tea bags that will be proficient for the customers and the users
as all want some thing being prepared quickly with in blink of an eye.

ENVIRONMENTAL ANALYSIS

We have conducted the SWOT and PEST analysis that what kind of situation we are
going to face when we launch our product. By knowing that what our strength and
weakness and with help of that we can convert the threats into opportunities. Also we
conducted PEST analysis to know the political, economical, and social & technological
situation in the country.

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 SWOT ANALYSIS

The SWOT analysis provides us with an opportunity to examine the internal strengths
and weaknesses we must address. It also allows us to examine the opportunities presented
to the company as well as potential threats.

STRENGTHS:

i. Strong Partners; All of our business partners are knowledgeable, friendly and
strong. Also our suppliers such as EVERYDAY very strong and supportive to us.
All are committed to enhance the quality of product with their support and hard
work.

ii. Clear Vision of the Market Need; Green Land Manufacturers clearly know the
need of their customers and they aim at satisfying their customers in best possible
way.

iii. Easy Changes in Strategies; As we are engaged in a small business unit so it is

our strength that we can change our strategies with changing mood of the
environment.

iv. Unique Product; We have no direct competitors in the market because we are the
first movers and introducing a unique product.

WEAKNESSES:

i. Low Capital: We dont have much capital to fianc our business and it is one of
our weaknesses.

ii. Dependence on Quickly Changing Technology: This is the era of rapidly

advancements in the technology that is bought only with huge capital and in start
we would have low capital to spend on that.

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OPPORTUNITIES:

i. Growing Population of Daily Tea Users: Now-a-day, tea has almost a necessity
of every individual. As the population of daily tea users increases, we have an
opportunity to capture more of the market share.

ii. Stable Industry: Tea industries comparatively a stable industry as compared to

other industries. So our product has opportunity to grow in the market and we can
make huge profits out of it.

THREATS:

Cheap Technology: As the technology is being getting cheap and cheap day by
day it is possible that in future we might have number of competitors.

PEST ANALYSIS

PEST analysis tells us about political, economic, social and technological effects faced by
our product in the market.

Political Effect:

The Government policies regarding the business class in Pakistan and regarding other
matters may affect our business too. But we do not expect that we would have many
problems regarding political conditions in Pakistan.

Economical Effect:

Our teabags formed tea would not be much expensive for our customers and would be
sold at affordable price. It will also be economic for us as manufacturers because we
would be able to make it on lower cost and sell on high price and will gain profits for us
as well.

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Social Effects:

We may face certain problems regarding the peoples response to our product. In this
region the people are conservative and loyal with their already using brand, not want
changes in their lives. So, it will effect or difficult for people to change their traditional
taste of tea with a newly emerged tea. But we shall formulate the strategies to overcome
their problems and make the people addicted to our product.

Technological Effects:

We dont require high technology to prepare this tea. So, technology factor will not effect
as much as in other industries.

But one threat we face is that there are big giants sitting in the market like Lipton, Tapal
and Supreme etc. as technology is going on cheaper and cheaper day by day, so, they can
make a prodct like us in the future and our sales may deteriorate.

COMPETITORS

Direct Competitors:

We have no direct competitors in the market because we are the first movers and
introducing a new product.

Indirect Competitors:

Our indirect competitors brand names are:

Lipton

Tapal Tea

Lemon Grass Tea

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Citron Slimming Tea

Pepsi Cola, Miranda

Coca Cola, Sprite, Fanta

Shezan Jucies and bottles

Haleeb Condensed Lassee

Nescafe Coffee

COMPETITOR ANALYSIS

Competitors Strength:

i. They are in the market since long time.

ii. They have created an image in the market.
iii. They have huge capital to do every thing they want.
iv. They have plenty of brand loyal customers.

Competitors Weaknesses:

i. They engaged in huge business so cant change strategies early.

ii. They cant get the feed back from customers directly.
iii. Cant easily cope with changing environment and trends.

Opportunities for us:

i. We are engaged in small business can easily change our strategies on early stages.
ii. We get direct feed back from customers.
iii. Can cope with changing environment and trends.

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 KEYS TO SUCCESS

The keys to the success for Green Land Tea Manufacturers are:
The creation of a unique, innovative, upscale tea that will differentiate us from
other local and future tea competitive companies.
The establishment of Green Land Tea Manufacturers as a community hub for
socialization and entertainment.
High quality tea within a few seconds.
Educating the consumer about a unique idea.

INDUSTRY ANALYSIS

Tea is the most popular beverage in many countries. More than 2.60 billion kilograms of
tea are produced annually in the world. There are three main kinds of tea, i.e. black, green
and olong. But generally black tea is liked and all tea producing countries manufacture
black tea.

In Pakistan, Pakistan is not a tea producing country but is an important consuming

country, being the third largest importer of tea in the world and therefore of considerable
interest to the main tea exporting countries.

The consumption of tea is about 175 million Kilograms, but custom statistics show tea
import of 105 million kilograms. According to the estimates, 70 million kilograms tea is
being smuggled in Pakistan through illegal channels.

Of the tea sold in Pakistan, 55% is unbranded or in loose form. 85% of this is based on
smuggled tea. The players in the remaining 45% segment are Unilever, Tapal, Vital, and
Tetley.

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 MARKET SHARE PICTURE

Our main focus is on organized tea market. Where different companies like UNILEVER
and TAPAL are holding the main market share. Some other companies also present in the
market but having very low share of the market.

Unilever Pakistan limited has 43% market share.

Tapal private limited has 41% market share.
Vital tea limited has 6% market share.
Tetley has 4% market share
The remaining 6% belongs to other market share in the organized market.

45%
40%
35%
Unilever
30%
Tapal
25%
Vital
20%
Tetley
15%
Others
10%
5%
0%

Unorganized market also captures a good market share in the total tea market of Pakistan.
55% is of unorganized tea.71% of total population of Pakistan are living in rural areas.
Due to illiteracy and lack of awareness they are consuming unorganized tea which is
mainly affecting the organized tea market. Due to this they are enjoying a very big
market share of the total tea market.

Organized segment mainly depend on the imported tea. Mainly big players are importing
tea from different countries like Kenya, UK, and Bangladesh

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Future Outlook & Trends:

Tea industry is a growing industry in the world. In the most countries like Pakistan, the
tea is use as a second most popular beverage after water. But the market for quality tea
has unlimited upside potential for tea drinkers in this country. The market for high quality
tea is experiencing strong growth and this is expected to continue for foreseeable future.
The growth of revenue and profits for tea companies is very strong popularly.

VENTURE DESCRIPTION

Green Land Tea Manufactures, unlike a typical company, provides a unique form for
taste and high quality tea within no time. Green Land Manufacturers is the answer to an
increasing demand for quality tea in shortest time.

Product:

Instant Tea

The Instant Tea is basically a ready to use tea with all the required quality ingredients
(tea, powdered milk, powdered sugar) with different flavors, just put the teabags into the
hot water and your refreshing hot tea is ready.

Size of Business:

We would start of our business at a normal scale so that in the start we will be able to
know market circumstances and reactions shown by customers.

Giving the customers what they want and they will dig deep into the packets.

We dont want to crash into the market but we will slowly grow through word-of- mouth
and other means.

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Background of Entrepreneurs:

We are basically 9 ambitious persons to start this venture, each person would participate
in particular area to run this enterprises and to provide finances for the purpose. A brief
introduction the entrepreneurs involved in establishing Green Land Manufactures is as
follows:

M. Yaseen Tahir: He is an extrovert person with a special quality to convince people, he

is just to complete his Master in Business Administration with major in Finance.
M. Rafique : He has good analytical skill and sense of humor. He is also about to
complete Master in Business Administration with major in Finance.
Majid Ali: With good speaking style, he is near to get is his degree of Master in Business
Administration with major in marketing.
Irfan Yasin: An introvert person, presently doing MBA in marketing.
Asma Ramzan: Doing MBA in HRM form University of Agriculture, Faisalabad. She
has good management skills, and is responsible to design management plan for Green
Land Manufactures.
Amber Gill: She is exciting lady, doing MBA in HRM form University of Agriculture,
Faisalabad. She loves to work in groups and teams. Amber has been assigned the
responsibilities of designing the management plan for our organization.
Maria Ali: She is currently doing Master in Business Administration with major in
finance from UAF. Maria got good financial knowledge, and she is capable of handling
multiple tasks at the same time.
Noor Tanveer: Belongs to a family of business graduates, she got good concepts of
business management studies. She has been given, along with the Maria Ali, the
responsibility of designing operational plan for our venture.
Ayesha Nawazish: With good problem solving attitude, she is just to complete Masters
in Business Administration with major in HRM. She is obliged with the responsibility of
designing vision, mission and conducting industrial analysis for our venture.

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 ORGANIZATIONAL PLAN

FORM OF BUSINESS:
We have formed a Partnership business.
We are 9 partners with equal rights and shares.
Responsibilities of each partner are with respect to their specializations.
It would be registered partnership.
Our liabilities and responsibilities would be the same and will work as a unit.

The Overall Management

Team

CHIEF EXECUTIVE OFFICER Mr. Mohammad Yasin Tahir

VICE PRESIDENT Miss. Asma Ramzan

MANAGER MARKETING Mr. Majid Ali

MANAGER FINANCE Mr. Mohammad Rafique

MANAGER PRODUCTION & QUALITY Miss. Maria Ali

MANAGER HR Miss. Amber Gill

MANAGER IT Miss. Noor Tanveer

MANAGER R&D Miss. Ayesha Nawazish

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MANAGER SALES Mr. Irfan yasin

ORGANIZATIONAL STRUCTURE

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 CHIEF
EXECUTIVE
OFFICER

VICE
PRESIDENT

PRODUCTION
& QUALITY HR MARKETIIN FINANCE R&D IT
MANAGER MANAGER GMANAGER MANAGER MANAGER MANAGER

MANAGER
SALES

Clerical staff-
Non-Clerical staff:
ACCOUNTANTS,
GURADS,
TYPIST, CLERKS
MESSENGERS
& ASSISTANTS

NO OF EMPLOYEES

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 o CEO
o Vice President
o 1 Finance manager
o 1 HR manager
o 1 Sales manager
o 1 Marketing manager
o 1 R&D Manager
o 1 Production & Quality Manager
o 1 IT Manager
o 5 Salesmen
o 1 Cost Accountant
o 2 Drivers
o 2 Guards
o 2 Sweepers
o 12 Labors
o 2 Peon

Total Employees= 35

Check-signing authority: Check-signing authority is given to Mr. M. Rafique

(the Finance Manager)

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Salaries:

In order to free up enough capital to continue operations and possible expansion, our
executive team will not receive more than a living wage salary until the product is well
into the black. We understand that as a new product we will need technical support and
legal advice; this will be currently outsourced to various consultants.

Plan to Meet Personnel Needs:

All sales for the first year of operation will be closed by the executive management
team. Starting from the second year, we will employ a Sales Associate who will handle
sales transactions. His/her compensation will be a combination of fixed salary and
commission on sales. For the purposes of financial planning, we combined the Sales
Associate's compensation into an aggregate forecast.

To be flexible in meeting the customer demand, we plan to stock a minimum amount of

product in a rented warehouse. At the beginning, all incoming product stock will be
accepted and later dispatched to customers by the company's executive team. Starting in
the second year, we plan to hire a full-time Inventory Manager to handle these tasks.

Performance Appraisal System:

Performance of the employees is continuously observed on daily basis. Employees are
appraised on weekly basis. Their appraisals send to the main head office. According to
the head office recommendations employees are rewarded.

ROLES AND RESPONSIBILITIES OF MEMBERS OF

ORGANIZATIONAL CHART

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CHIEF EXECUTIVE OFFICER (CEO)

Major Functions:
To implement the strategic goals and objectives of the organization

To give direction and leadership toward the achievement of the organization's

philosophy, mission, strategy, and its annual goals and objectives

Reports to: Board of Directors

1. Board Administration and Support -- Supports operations and administration of

Board by advising and informing Board members, interfacing between Board and staff,
and supporting Board's evaluation of chief executive

2. Program, Product and Service Delivery -- Oversees design, marketing, promotion,

delivery and quality of programs, products and services

3. Financial, Tax, Risk and Facilities Management -- Recommends yearly budget for
Board approval and prudently manage organization's resources within those budget
guidelines according to current laws and regulations

4. Human Resource Management -- Effectively manages the human resources of the

organization according to authorized personnel policies and procedures that fully
conform to current laws and regulations

5. Community and Public Relations -- Assures the organization and its mission,
programs, products and services are consistently presented in strong, positive image to
relevant stakeholders

6. Fundraising (nonprofit-specific) -- Oversees fundraising planning and

implementation, including identifying resource requirements, researching funding

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sources, establishing strategies to approach funders, submitting proposals and
administrating fundraising records and documentation

VICE PRESIDENT

Job Description: To provide provides strategic leadership for the development of the
service line so that a full continuum of services is created and structured in response to
customer needs (patient, payer, physician). The vice president will guide the
development of the overall leadership structure and strategic plan and create goals and
plans for quality and financial management of the service line.

PRODUCTION & QUALITY MANAGER

Develop and implement quality management strategy and plans, including resource,
systems, timescales, financials, to support, contribute to, and integrate within, the
organizations annual business plan and long term strategy. Develop and maintain
systems to establish standards relating to activities and products. Develop and maintain
systems to measure performance against established standards. Monitor performance (in
relevant areas) according to agreed standards and take necessary action to
communicate/advise/assist according to performance levels. Monitor and
inform/communicate/apply standards created/maintained by external bodies, and
integrate within internal quality management systems.

MARKETING MANAGER
Main Job Tasks and Responsibilities:

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 o manage and coordinate all marketing, advertising and promotional staff and
activities
o conduct market research to determine market requirements for existing and future
products
o analysis of customer research, current market conditions and competitor
information
o develop and implement marketing plans and projects for new and existing
products
o manage the productivity of the marketing plans and projects
o monitor, review and report on all marketing activity and results
o determine and manage the marketing budget
o deliver marketing activity within agreed budget
o develop pricing strategy
o liaison with media and advertising

FINANCE MANAGER

Typical activities include:

o providing and interpreting financial information;

o monitoring and interpreting cash flows and predicting future trends;
o analysing change and advising accordingly;
o formulating strategic and long-term business plans;
o analysing competitors and market trends;
o developing financial management mechanisms that minimise financial risk;
o conducting reviews and evaluations for cost-reduction opportunities;
o liaising with auditors to ensure annual monitoring is carried out;
o arranging new sources of finance for a company's debt facilities; supervising
staff;
o Keeping abreast of changes in financial regulations and legislation.

SALES MANAGER

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 Main Job Tasks and Responsibilities:
o Resolve customer complaints regarding sales and service.
o Monitor customer preferences to determine focus of sales efforts.
o Direct and coordinate activities involving sales of manufactured products,
services, commodities, real estate or other subjects of sale.
o Determine price schedules and discount rates.
o Confer or consult with department heads to plan advertising services and to secure
information on equipment and customer specifications.
o Advise dealers and distributors on policies and operating procedures to ensure
functional effectiveness of business.
o Prepare budgets and approve budget expenditures.
o Represent company at trade association meetings to promote products.
o Plan and direct staffing, training, and performance evaluations to develop and
control sales and service programs.

RESEARCH & DEVELOPMENT MANAGER

General tasks include:
o To monitor and evaluate project research activities
o To supervise field staff activities and ensure all reporting requirements are
adhered to,
o To promote company and project activities and capability to potential
collaborators, sponsors, partners, academic institutions and the scientific
community,
o To identify sponsorship and grant opportunities and liaise with existing
and potential donors
o To prepare proposals for donor funding and sub-contracts in collaboration
with overseas partners and overseas paid staff
o To oversee, renew and develop in-country collaborations
o To oversee dissertation students at under-graduate and post-graduate level
HUMAN RESOURCE MANAGER

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 Duties and Responsibilities:
o Administer compensation, benefits and performance management systems, and
safety and recreation programs.
o Identify staff vacancies and recruit, interview and select applicants.
o Provide current and prospective employees with information about policies, job
duties, working conditions, wages, and opportunities for promotion and employee
benefits.
o Analyze and modify compensation and benefits policies to establish competitive
programs and ensure compliance with legal requirements.
o Serve as a link between management and employees by handling questions,
interpreting and administering contracts and helping resolve work-related
problems.
o Analyze training needs to design employee development, language training and
health and safety programs.
o Maintain records and compile statistical reports concerning personnel-related data
such as hires, transfers, performance appraisals, and absenteeism rates.
o Prepare personnel forecast to project employment needs.
o Prepare and follow budgets for personnel operations

IT MANAGER JOB DESCRIPTION

o Assists in the planning and implementation of additions, deletions and major modifications to the
supporting regional infrastructure.
o Implements network security at the regional level

o Oversees the administration of the company's WAN.

o Interacts with internal clients on all levels to help resolve IT-related issues and
provides answers in a timely manner.
o Builds and maintains vendor relationships and manages the purchase of hardware and
software products.
o Manages the purchasing of all software, hardware and other IT supplies at the
regional level.
o Ensures that company assets are maintained responsibly.

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 PRODUCTION PLAN

Plant and Machinery Required:

Distillatory,
Rotary evaporator
Vacuum dryer,
Grander,
Freeze dryer,
Colorimeter,
Water activity meter

Major Suppliers: We are getting the sugar from Local supplier, for milk powder we
have contracted with Everyday and we are importing tea from Kenya.

SUPPLIERS NAMES ADDRESS

FOR TEA Mr. JEFF KARANJA Kenya

FOR SUGAR Mr. Abid Awan Faisalabad

Mr. Shakeel Butt Faisalabad

FOR MILK Mr. Zeeshan malik Faisalabad

Mr. Tauqeer Ahmed Faisalabad

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 OPERATIONAL PLAN

The following section will identify the proposed operational plan for Green land
Manufacturers. Included are the general operating procedures, human resources,
insurance and an outline of Green land Manufacturers' operational workflow.
General Operating Hours
Green land Manufacturers intends to operate whole week from 9 am to 8pm. It will be
operational year around.
Human Resources
Our company has 35 employees as a part of its management including the top
management. When additional human resources are needed, Green land Manufacturers
has identified the persons qualified and able to assist on a contract basis.Job
advertisements will be put in the local papers and organizations to attract a good pool of
respondents.
Insurance Requirements
Green land Manufacturers will have to incur costs for business liability insurance. The
estimated cost for this requirement is Rs. 100,000 per year
Operational Workflow
Step 1: Green land Manufacturers, will first of all procure all required items from
different suppliers:
Main suppliers of milk will include:
Mr. Zeeshan Malik (Faisalabad)
Mr. Tauqeer Ahmad (Islamabad)
The supplier of tea will include:
Mr. JEFF KARANJA (Kenya)
The supplier of sugar will include:
Mr. Abid Awan (Faisalabad)
Mr. Shakeel Butt (Faisalabad)

31
Step 2: To provide customers with healthy product, Green land Manufacturers has
arranged the preservation of necessary items. The process of treating and handling
product is to stop or greatly slow down spoilage (loss of quality).
Common methods that will be used for preservation includes:
Drying,
Spray drying,
Freeze drying,
Freezing,
Vacuum-packing,
Canning, etc. etc.
These methods help to preserve and to add flavors.

Step 3: Green land Manufacturers pack all the items in attractive packing:
Tea Bags
Boxes
Wrappers
It will be used as packaging material. It provides protection against tampering resistance,
and special physical, chemical effects. It also shows nutrition information on the product
being consumed.
Physical protection,
Convenience,
are the Main Objectives of packaging

Step 4: After the completion of 3rd step items will be sold to customer with the help of
our distribution channel

Step 5: As feed back is necessary for success of any business venture so Green Land
Manufacturers also will arrange the Response section for its customers. Customer
representatives compensate accordingly, like expired items will be replaced.

32
The above operational workflow is very standard, easy to understand and within
industry's norm.
The graphical presentation of the OPERATIONAL PLAN is given below

Milk

PROCUREMEN
Sugar
T
(Collection of Items)
Tea

Freezing,
Drying, &
preserve.

PRESERVATIO
N
Used To Stop Spoilage
& Bacteria And To
Maintain The
freshness.

Tea Bags,
Boxes, cartons,
wrappers.
PACKAGING

It Provides Physical
Protection & Labels
Are Act As
Information
transmission.

(Through Sales
distributio
n
channel)

Response Centre
Receives feedback Feed
from customers Back

33
 MARKETING PLAN ANALYSIS

MARKETING GOALS:

To create a strong consumer value,

To establish a wide brand recognition through the capture of market shares in the
multi segment, and
To become the top market leader in that particular segment with the strong
research and development.

MARKET RESEARCH

As we are launching a new brand in the market there are chances of failure so for that we
have conducted a market research, prepared a QUESTIONNAIR and we went in the
certain offices and in certain locations to gather information about the responses of the
people about our product. We went into the UNIVERSTIES, PROPERTY DEALERS
OFFICES, and BANKS and in certain other locations for that we also took personal
interviews of the people in the certain markets and offices to get the information about
the customers response at our own.

QUESTIONNAIRE

1. What type of hot drink you use very often?

Tea
Coffee
Both
None
2. How much time you take in preparation of tea?
3 minutes
5 minutes.
More than 5 minutes.

34
3. What would be your reaction if the tea be prepared in few seconds?
Like such a tea.
Dont like such a tea
No idea
4. Would you like to switch on to another brand of tea if new brand provides better taste
with easy and time saving preparation?
Yes
No
5. How many cups of tea you usually take in a day?
1 cup
2 cups
3 cups
More than 3 cups
6. What is your taste in tea?
Strong
Medium
Light
7. What do you consider the most while choosing your tea?
Taste
Brand name
Availability
8. To which attribute you give more importance?
Taste
Brand
Price
Quality
9. If a tea is introduced in the teabag form where you just have to dip that
in hot water and tea is ready what will be your response?
Will buy such a tea

35
 Wont buy such a tea
No idea
10. If a tea is introduced in the teabag form with different flavors like chocolate,
strawberry, mango etc then what will be your response?
Like such a tea.
Dont like such a tea
No idea
11. According to you, what medium should a Tea Company use more frequently to
advertise itself?
Television
Billboards
Newspaper
Radio
Fashion or Business Magazines
Others________________
12. Income per annum?
15,000-20,000
20,000-25,000
25,000-35,000
Above 35,000
Dependent
13. In which category you stand?
Children
Young
Middle Age
Old people
14. Gender
Male
Female
15. Occupation

36
 Households
Property dealers-other offices
Students

RESULT OF QUESTIONNAIRE

FEEDBACK

o We found a positive response from everywhere in the market as well as in the

offices.
o Everyone was found eager to welcome this new idea and product. People are short
of time and it is not less than a gift in their busy routine lives.
o Especially office workers were in need of such product which is prepared in just
no time.
o People are ready to pay more for quality products.
o They literally said to us that we were in the need of such a product to come in the
market.

37
 SEGMENTATION
Based on three bases:

Demographic.
Psychographic.
Behavioral Style

Demographics Segmentation

Age Above 18
Gender Male and Female
Family Size Average
Family Life Cycle Young
Income Rs. 20,000 and above
Occupation Professional, Managers, Students, Clerks etc

Psychographics Segmentation

Social Class: Working Class, Upper Middle, Lower Upper, Upper

Life Cycle: Fast, Struggle, Always short of time.
Personality High Society, Ambitious

Behavior Segmentation

Occupations Regular Occupation

Benefits Quality and Time Consuming
User Status Regular User

38
Readiness Stage Intending to buy
Attitude towards Product Positive

TARGET MARKET

Green Land Manufacturers customers can be divided into three groups.

The first group is familiar with the quick time concept and desires a progressive and
inviting atmosphere with their offices and workplace where they can enjoy a delicious
cup of tea with in few seconds. This group is made up of business people from different
offices and professional centers means people in Corporate Level.

The second group is not familiar with quick time tea concept. This group is made up of
seniors from the different retirement centers. Seniors represent a growing segment of
tea users. They use the tea with friends and family and they will be regular users of the
Instant Tea.

The third group is somehow familiar with this concept. This group is made up of
students. They represent the young segment of tea users. They use the tea during their
studies to refresh themselves and they will be regular users of the Instant Tea.

SIZE OF MARKET:

On the basis of our research and on demographic studies conducted in the city of
Faisalabad, about 15,000 people our target market in first year then 16500 in the 2nd
year (10% increase) and in third year 18150. This would consist of individuals between
the ages of 28 and 65, male and female, with high disposable income, employed as
professional businesspersons or office staff.

39
There is a potential to reach an additional customers who work on the fringe of this area
and may not directly pass our office on a regular basis. This secondary market may be
penetrated through advertising, word of mouth and distribution of marketing literature.

Positioning Statement

For busy, mobile people whose time is already at a premium, but desire a refreshing,
high quality beverage.
Positioning: Time Saving

MARKETING MIX

We have focused also on 4 Ps of marketing in our project to launch new tea. 4 Ps mean
a mix of:
PRODUCT
PRICE
PLACEMENT
PROMOTION

PRODUCT:
Tea bags including all needed quality tea ingredients which includes world class tea
leaves, fresh milk powder, moderate sugar and different flavors.

Product Line Length:

In start our product line will include:

With high sugar and milk

Regular

With light sugar and milk

With Canderal

40
 Brand Elements
Slogan:
Ready when you want
Brand Association:
Princess Fairy Cartoons
Logo:

Insignia:

41
Packing:

Tea in the form of teabags that is ready to take form with good and attractive packing.
Primary Packing; Poly Tea Bags
Secondary Packing; Box

Labeling

Ingredients:
Kenya Danedar Tea.
Every Day Dry Milk
Powdered Sugar.
Powdered Canderal
Recipe of tea:
Bring 100ml water boil.
Put 1 teabag in a cup.
Pour boiled water into the cup.

42
 Allow infusion for 2-3 minutes.

After 2-3 minutes, dip tea gag in the cup 8-10 times and your tea will be ready.
Instant tea made from 4.3 grams of tea, 10 grams of milk and 2.7 grams sugar in 100ml
of fresh boiling water.

Nutritional Information:

Calories: 73
Total Fat: 2.4g
Carbohydrates: 12g
Protein: 1g

Instructions:
Store in a cool dry place away from direct sunlight.

Date of MFG & Date of EXP

Contact:
www.greenlandmanufacturs.com

PRICE

PRICE OF THE PRODUCT:

Price per teabag is Rs.10 whereas,

43
Price per Box is Rs.300 (contains 30 teabags)

PRICE PER TEA BAG:

Packing price per tea bag Rs. 0.50

Price of tea (4.3 grams) Rs. 1.00

Price of powder milk (10 grams) Rs. 1.50

Price of powders sugar (2.7 grams) Rs. 1.00

Total cost: Rs. 4.00

Gross Profit per teabag: Rs. 6.00

Retail price: Rs.10.00

\
Pricing Strategy
The pricing will be comparable to the competition, but with the value-added
feature of immediate, drive-thru service and convenience

PLACEMENT OF PRODUCT

Location:
We have chosen the location for our business in the Faisalabad. In Faisalabad the shop
number is 55/C Batala Colony main road and in Shaheen Chok Saddar Bazaar Gulam
Muhammad Abad the shop number is 165 Commercial Market. Both shop size is of 20
by 20. This is enough for us to store our imported material and to use it as sales outlet
initially.

Placement is the 4th element or P in the four Ps of the marketing and it is very
important as it helps the businessman to bring product into the market. Also it is very
difficult decision to select an appropriate location. We have also worked on this element.

44
 DISTRIBUTION CHANNELS

Manufacturer ------ Distributor--------- Retailers--------- Consumer

As Every Day is our partner, they supplied as powdered milk so we can also use their
distribution channel and has an agreement with the different distributors to deliver our
products to the final customers. Our distributors are focusing on the areas where there are
opportunities like bank square, commercial zones, small companies etc with in
Faisalabad. We are targeting these areas because our most of the target market is the
working class. The areas which the distributors are covering are as under:

D-Ground Faisalabad
Rail Bazaar Faisalabad
D type Colony Faisalabad
Millat town Faisalabad

Now the question comes that how our distribution channel works. Firstly we assemble the
product which we get from our source like tea, milk powder and sugar in the bulk to our
distributors. Then the order is placed by the customers to the distributors about their
required demand. After that the distributors set the order according to customers required
demand.

We will use several distribution channels according to the need of the time and nature of
the market. Whenever we will enhance our distribution channel it will also increase our
cost on the sale of the product as we will have to pay several. Intermediates involved in
the process of the distribution. So, we will keep our distribution cannel simpler in the
start of our business.
But as certain Offices are our target market, thats why, our representative distributors
will continuously make delivery in the banks and other offices. We will hire such a

45
person for this job who would have relationships in certain offices and who can convince
them to use our product.

In start of our business we will open our business outlet store in the almost centre of
Islamabad and Rawalpindi where the imported tea and powdered milk will be stored and
after the filling and packing process our tea would also be sold over there initially. At this
initial stage our distribution channel would be as:

MANUFACTURER DISTRIBUTORS CUSTOMERS

Distribution Strategy

Our representative distributors will continuously make delivery in the banks and
other offices in the city

PROMOTION

We believe that it is not enough to have good products just sold at attractive prices. To
generate sales and profits, the benefits of products have to be communicated to
customers.
Our Promotional Mix will be based on the following things:
Web promotion.
Advertisement.
Billboards.
Newspapers.
Broachers and Posters.
Cloth Banners.

46
Among all of these blends of promotional mix we will be focusing at most on the
Advertising blend. Other blends will be used whenever we would find any situation in
which they might be helpful to us.

OBJECTIVES OF PROMOTION

We will have several objectives of promotion which we will use to make our product
accepted. Those objectives might be:

To Inform:
As we are launching a new product in the market so we will promote our product in a
way that our customer might know about our product to be existed in the market

Persuade:
We will create a perception about our product in the minds of the customer that our
product is superior to the products currently available in the market.
Image Creation: By promotion we will create an image in minds of the customer that our
product is different than others in the market.

Reassurance:
We will also promote to make customer reassure that he/she has made right decision to
buy our product. We might use several blends of the promotional mix while creating my
promotional strategies like direct selling, advertising, sales promotion etc.

Advertising:
Through advertising we will try to deliver our most persuasive possible selling message
to the right audience at minimal cost we can have.
PROMOTIONAL MIX

47
 PROMOTION MIX

Promotional Mix will be based on these elements as discussed under:

Word Of Mouth: It is a personal communication about product between target buyers

and neighbors, friends, family members and associates. It is a very effective strategy in
which we plan to use word of mouth to introduce our product and also the benefits of our
product to the customers.

Advertising: We will use advertising to communicate our product into the market
through "prime media": i.e. television, newspapers, magazines, billboard posters, radio,
etc. Our advertising would be intended to persuade and to inform.

Direct Marketing: Through direct marketing we shall create direct relationship between
us and our customers.

Personal Selling: We will also use personal selling technique to make our product sell.
For that we will hire people on commission who will communicate with people and try to
manage sale of our product.

Sales Promotion: We will offer certain incentives to our customers to increase the sales
volume of our business such as coupons, extra quantity etc.

48
 RISK ASSESSMENT

Green Land Manufacturers although free from any direct competition, has a very low
barrier to entry. But there are certain risks which can affect the overall value of a
business. In order to ensure that a current business owner receives the best value for
their company, it is important to take certain steps to avoid sale delays, obtain the
necessary resources to help the sales process along and retain the help of knowledgeable
professionals in areas where they are needed.

Financial Risk

Risk which affects the overall value of a business with regard to the sale thereof has a
lot to do with the lack of resources. Unlike corporate counterparts, smaller business
owners do not have attorneys, accountants and financial advisors at the back and call
who can aid them in the sale of the business.

Competitors: Possible Competitors are global leaders so they have more technology as
compared to us.

Management Team Conflicts: There may be conflicts due to so many people in the
management.

People Risk: In the future may be the trend and demand of the consumer changes.

Technological Risk: This is the era of rapidly advancements in the technology as the
technology is being getting cheap and cheap day by day it is possible that in future we
might have number of competitors.

49
 FINANCIAL PLAN ANALYSIS

IMPORTANT FACTORS FOR THE PROJECTION

Sales are the most dominant fact in the construction of the financial statements. Our sale
is Rs.84496165 in the 1st year and it is calculated on the basis of following factors.

On the basis of previously designed marketing plan.

Stable environment of tea industry.
On the basis of our prices.
On the basis of advertisement and product promotion.
Market research study.

50
 Balance Sheet(PROJECTED)
As on June 30, 2010-12
ASSUMPTIONS

Financing needed is 1,000,000 PkR of which 0.6 Million PKR is personal

financing and 0.4 Million PKR is Debt Equity.
We have 35 employees & total compensation paid to them will be 450,000.
In 2nd & 3rd year, the sales are expected to grow 10% per year.
The aggregate cost of goods sold is assumed to be 40% of the sales.
Fire insurance policy amounted to 100000 will be taken for safety purposes.
Interest on bank loan will be paid every month & interest rate is assumed to 8%

2010 2011 2012

Rupees Rupees Rupees

CAPITAL AND RESERVES

Share Capital 60,00,000 66,00,000 7,260,000

Accumulated profit 9,00,000 9,90,000 10,89,000

NON-CURRENT LIABILITIES

51
 Long-term finances 40,00,000 44,00,000 48,40,000

CURRENT LIABILITIES
Electricity bills outstanding 100,000 1,10,000 1,21,000
Outstanding salaries 4,50,000 4,95,,000 5,44,500
Accounts payable 7,00,000 7,70,000 8,47,000
Provision for taxation 125,000 1,37,500 1,51,250
Rent outstanding 1,25,000 1,37,500 1,51,250
Short Term loans 3,00,000 3,30,000 3,63,000

Total 1,27,00,000 1,39,70,000 1,53,67,000

2010 2011 2012

Rupees Rupees Rupees

NON-CURRENT
ASSETS

Property, plant and 84,00,000 92,40,000 1,0164,000

equipments

DEFERRED COST

Advertisement 5,20,000 5,72,000 6,29,200

Registration fees 4,80,000 5,28,000 5,80,800

52
CURRENT ASSETS

Stock
Income Statement(PROJECTED)
20,00,000 22,00,000 24,20,000
For the Period ended June 30, 2009-11
Advances and 280,000 3,08,000 3,38,800
receivables

Cash and bank 10,20,000 11,22,000 12,34,200

balances

Total 1,27,00,000 1,39,70,000 1,53,67,000

2009 Projected Projected 2011

2010
Rupees Rupees Rupees

Sales 33,00,000 36,30,000 39,93,000

Cost of Sales 15,97,200 17,56,920 19,32,612

Gross Profit 17,02,800 18,73,080 20,60,388

Admin & selling 1,50,000 1,65,000 1,81,500

expenses
Rent 1,25,000 1,37,500 1,51,250
Insurance 1,00,000 1,10,000 1,21,000
Profit Before Tax 13,27,800 14,60,580 16,06,638
and Interest

Finance Cost 3,20,000 3,52,000 3,87,200

Profit / (loss) 10,07,800 11,08,580 12,19,438

53
before taxation

Taxation 1,078,00 1,18,580 1,30,438

Profit / (loss) 9,00,000 9,90,000 10,89,000

after taxation

Accumulated 9,00,000 9,90,000 10,89,000

profit carried
forward

Cash Flow Statement (projected)

For the period ended June 30, 2009
2011
Rupees

CASH FLOW FROM OPERATING ACTIVITIES

Profit / (loss) before taxation 10,0

7,800
Adjustments for:
Depreciation 5,00,0
00
Finance cost 3,20,
000

18,27,
800
Changes in working capital
(Increase)/decrease in current assets:
Stock and stores (2,00,000)
Advances and receivables (28,
000)

Increase/(decrease) in current liabilities:

54
Accrued and other liabilities 180
,000
(30
0,000)

Cash generated from (used in) operations (8,60,

000)

Payments for:
Finance cost (3,20
,000)
Income tax (1,07
8,00)

Net cash inflow/(outflow) from operating 4,27,

activities 800

CASH FLOW FROM INVESTING ACTIVITIES

Fixed capital expenditure (476250

0)

Preliminary expenses (10,00,0

00)

Net cash inflow/(outflow) from investing (57,62,50

activities 0)

CASH FLOW FROM FINANCING ACTIVITIES

Long-term finances 40,00

,000
Share Capital 60,00,
000

Net cash inflow/(outflow) from financing 1,000,

activities 000

Net increase/(decrease) in cash and cash 780,000

equivalents
Cash and cash equivalents at beginning of the (5,00
year ,000)

Cash and cash equivalents at end of the year 11,

22,000

55
 Statement of Changes in Equity (projected)
For the period ended June 30, 2009

Share Accumulated Total

capital profit / (loss)

Rupees Rupees Rupees

Balance as on July 1, 2008 6 9,00,0 69,

0,00,000 00 00,000

Net profit for the year ended

June 30, 2008 - - -

Balance as at June 30, 2009 6 9,00,0 69,

0,00,000 00 00,000

Ratio Analysis
GREEN LAND MANUFACTURED LIMITED

RATIOS ANALYSIS
2009
Rupees
PROFITABILITY RATIOS

Gross Margin% (Gross Profit / Net Sales) 51.6%

Net Margin % (Net Profit / Net Sales) 27.2%
Return on Assets% (Net Profit / Total Assets) 7.69%
Return on Equity% (Net Profit / Equity) 13.04%

ACTIVITY RATIOS

Inventory turnover (Cost of Goods Sold / Inventory) 0.7986times

Receivable turnover (Sales / Account Receivable) 11.78

56
Payables turnover (Cost of Goods Slod / Accounts Payables) 8.8
Assets Turnover (Net Sales / Total Assets) 25.98%
Fixed Assets Turnover (Net Sales / Fixed Assets) 0.38

LIQUIDITY RATIOS

Working Capital (Current Assets - Current Liabilities) 15,00,

000
Current Ratio (Current Assets / Current Liabilities) 1.83
Quick Ratio (Current assets less Inventory & Prepayments / Current Liabilities) 0.723
Cash Ratio (Cash+Marketables Securities / Current Liabilities) 0.57

LEVERAGE RATIOS
Debt to equity ratio (Total Debt / Total Equity) 0.60
Debt to capital employed (Total debt / Total assets) 0.32

Capital Budgeting
57
 Capital budgeting for 15 years

Initial investment = Rs. 10 millions

Discount Rate = 13% n = 3 years

It is assume that cash flows will increase by 10% every year.

58
Years CashFlows Discount at 13% Present Value
2010 900000 0.8850 796500.00
2011 990000 0.7832 775392.75
2012 1089000 0.6932 754844.84
2013 1197900 0.6134 734841.45
2014 1317690 0.5429 715368.16
2015 1449459 0.4805 696410.90
2016 1594404.90 0.4252 677956.01
2017 1753845.39 0.3763 659990.18
2018 1929229.93 0.3330 642500.44
2019 2122152.92 0.2947 625474.17
2020 2334368.21 0.2608 608899.11
2021 2567805.04 0.2308 592763.28
2022 2824585.54 0.2043 577055.06
2023 3107044.09 0.1808 561763.10
2024 3417748.50 0.1600 546876.37
2025 3759523.35 0.1416 532384.15
Total Present Value 10499019.97
Net Present value = Total Present value - Initial investment
10499019.97-10000000= 499019.97
SoNPVis PositiveProject is accepted

IRR
Years CashFlows Discount at 18% Present Value
2010 900000 0.8475 762750.00
2011 990000 0.7183 711073.69
2012 1089000 0.6087 662898.45
2013 1197900 0.5159 617987.08
2014 1317690 0.4372 576118.45
2015 1449459 0.3705 537086.43
2016 1594404.90 0.3140 500698.82
2017 1753845.39 0.2661 466776.48
2018 1929229.93 0.2256 435152.37
2019 2122152.92 0.1912 405670.80
2020 2334368.21 0.1620 378186.60
2021 2567805.04 0.1373 352564.46
2022 2824585.54 0.1164 328678.22
2023 3107044.09 0.0986 306410.27
2024 3417748.50 0.0836 285650.97
2025 3759523.35 0.0708 266298.12
Total Present Value 7594001.18
Net Present value = Total Present value - Initial investment
7594001.18- 10000000= (2405998.82)

IRR=LowDiscount rate+ (HNPV/HNPV-LNPV)(HDR- LDR)

0.13+ (499019.97/499019+2405998.82)(0.18- 0.13)
IRR 13.87%

59
 CONTINGENCY PLAN

Green Land Manufacturers will need to rely on its quality of service and being
first in the market to protect its market share. For this we do extra ordinary promotional
efforts to make consumers aware of our product, to create a positive image of our
product and to have maximum of loyal customers
Continuous efforts to research trends to meet consumer demands.
To get an edge over competitors we differentiated, bring variation in products.

So we must be prepared in a nice, attractive package in order to have the best positive
value. A company which is under great management sees good profits on the market
and is a good purchase opportunity overall will yield the best selling price.

HARVESTING STRATEGY
Exit Strategy
If we face any hurdles or crisis in future business then we will adopt Joint Venture with
TAPAL Tea (Pvt) Limited because our share remain in business and we will got a strong
shelter which already has a strong image in Pakistan.
Insurance
Our insurance company will provide a strong back up in case of business closing or
changing its shape. As above it is mentioned that joint venture is an exit strategy in case
of that our insurance company will pay full banks loan.
Finance
As our finical plan shows that our sales forecasting and our Owners Equity is a backup
of us in case of any crisis.
Employees
We signed a contract with our employees of 6 months. So in case of any serious
conditions we can fire any employee our employees.

60
 Appendix
MARKETING PLAN APPENDIX
Our Advertising campaign will pass through five stages

STAGE 1: SETTING THE ADVERTISING OBJECTIVES

We would have specific objectives regarding our advertising campaign which we would
feel the need of the time at the time we shall start our advertising. Our advertising
objectives will fall into three main categories:

TO INFORM e.g. to tell customer about my product and its features.

TO PERSUADE e.g. to encourage the customers to switch to a different andbetter
brand.
TO REMIND e.g. to remind the buyers that where they can find my product in the
market.

STAGE 2: SETTING THE ADVERTISING BUDGET

As we are launching a new product in the market, thats why, in start we would need
heavy investment on the advertisement because we first will have to create an image in
the minds of our potential customers. We not consider advertisement as our expense but
investment. For such a heavy investment we would also need heavy budget. We would
set our budget and would make required calculations before starting the advertisement
campaign and will conduct feasibility study.
When in the future we would be launching new product lines then our advertisement
budget would not be much heavy because at that time our image would have been created
in the minds of our potential customers and they would just welcome my product. We
would have to just inform them at that level that we have enhanced our product line.
Advertisement for that will not have heavy budget. But we will also calculate it before
time.
It would be really difficult for us to judge before time that how much expenses we would
have on the advertising campaign. For that, we shall use a rule-of-thumb"

61
(e.g. advertising/sales ratio) as a guide to set the budget. Means we shall estimate our
sales or would see sales of previous years and would spend on advertisement with respect
of the sales volume of particular product.

STAGE 3: DETERMINING THE KEY ADVERTISING MESSAGES

We believe that blindly spending on advertising do not guarantee success.
More important is your advertising message that your aim is to deliver to the customer.
Advertising must be done in a manner that your target customers must be addressed and
for that no heavy advertisement is required as such. We would also focus on carefully
designed message and not on such spending over. Our advertising message would have
the following characteristics:
MEANINGFULL: Our advertising message would be meaningful and customer
would feel it to be relevant.
DISTICTIVE: It would be designed in a manner that can attract the customers or
minimum can get their attention.
BELIEVABLE: Our advertising message would seem to be believable and not such
that customer feels just impossible to be. It is really a difficult and challenging job to
create such an advertising message but we have worked hard on it and would manage it.

STAGE 4: DECIDING WHICH ADVERTISING MEDIA TO USE

There are the varieties of advertisement Medias from which we can make
selection. But we would use such a media or media mix which would be more
appropriate for advertisement of our specific product. We would see the key factors while
choosing advertising media include:
RESEARCH: We would do research that what proportion of our target customers will
be exposed to our advertising message.
FREQUENCY: Research will also tell us about the frequency or number of times our
target customers will be exposed to my advertising message?
MEDIA IMPACT: We would also see that which media would be appropriate for our
product to be advertised which would have much impact on the customer. For example,

62
television ads or billboards or newspaper ads, which would be better for advertising our
product that will have more impact?
We would probably use the following medias for my advertising whichever we would
feel the need of time and my product to be advertised:
Television
Radio
Billboards
Transport
Direct mailing
Mail Promotion
Which Media we will use in the Start
We will use the strongest media of NEWSPAPER and CABLE in start of our business
and launching the product as the newspaper is read by most of people in our community
and cable is now days very common in the homes and shops of the customer. Thats why
I have selected such a media and it will help the customer to be familiar with our product

STAGE 5: EVALATING THE RESULTS OF THE ADVERTISING

We would also evaluate our advertising campaign on the routine basis and it will focus
on two key areas:

COMMUNICATION EFFECT: We would see whether the intended message is being

communicated effectively and to the intended audience?
SALES EFFECT: We would also see whether our campaign has generated the
intended sales growth. This area is much more difficult to measure but would be
beneficial for us to measure.

63
 BUDGET FOR MARKETING MIX::
We will use percentage to sale method to set our promotion mix budget which percentage
would be changed according to our share in the market.

CREDIT & DISCONT FACI

CREDIT FACILITY
Company would be providing credit facility for purchasing products of worth Rs.300,
000/-. Such credit facility would be provided for a maximum period of three months. In
this way company can get more control over distributors

DISCOUNT FACILITY

5% Discount will be given to wholesalers. If they purchase bulk of 10000 Packs. 2%

Commission will be given to wholesalers.

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 Partnership Agreement

This Partnership Agreement is made on 31 May 2010 among Nine Partners of Green
Land Manufactures.

Name and Business

Parties hereby form a partnership under the name of Green Land Manufactures to
produce Instant Tea. The principal office of the business shall be Saddar Bazaar Gulam
Muhammad Abad shop # 165 commercial market.

Term
The partnership shall begin on 31 May 2010, and shall continue until terminated.

Capital
The capital of the partnership shall be contributed in cash by the partners as follows:

A separate capital account shall be maintained for each partner.

Neither partner shall withdraw any part of their capital account.
Upon the demand of either partner, the capital accounts of the partners shall be
maintained at all times in the proportions in which the partners share in the profits
and losses of the partnership.

Profit and Loss

The net profits of the partnership shall be divided equally between the partners and the
net losses shall be borne equally by them. A separate income account shall be maintained
for each partner. Partnership profits and losses shall be charged or credited to the separate
income account of each partner. If a partner has no credit balance in their income
account, losses shall be charged to their capital account.

Salaries and Withdrawals

Neither partner shall receive any salary for services rendered to the partnership. Each
partner may, from time to time, withdraw the credit balance in their income account.

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Interest
No interest shall be paid on the initial contributions to the capital of the partnership or on
any subsequent contributions of capital.

Management Duties and Restrictions

The partners shall have equal rights in the management of the partnership business, and
each partner shall devote their entire time to the conduct of the business. Without the
consent of the other partner neither partner shall on behalf of the partnership borrow or
lend money, or make, deliver, or accept any commercial paper, or execute any mortgage,
security agreement, bond, or lease, or purchase or contract to purchase, or sell or contract
to sell any property for or of the partnership other than the type of property bought and
sold in the regular course of its business.

Banking
All funds of the partnership shall be deposited in its name in such checking account or
accounts as shall be designated by the partners. All withdrawals therefrom are to be made
upon checks signed by either partner.

Books
The partnership books shall be maintained at the principal office of the partnership, and
each partner shall at all times have access thereto. The books shall be kept on a fiscal year
basis, and shall be closed and balanced at the end of each fiscal year. An audit shall be
made as of the closing date.

Voluntary Termination
The partnership may be dissolved at any time by agreement of the partners, in which
event the partners shall proceed with reasonable promptness to liquidate the business of
the partnership. The partnership name shall be sold with the other assets of the business.
The assets of the partnership business shall be used and distributed in the following order:
to pay or provide for the payment of all partnership liabilities and liquidating expenses
and obligation;

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to equalize the income accounts of the partners;

to discharge the balance of the income accounts of the partners;

to equalize the capital accounts of the partners; and

to discharge the balance of the capital accounts of the partners.

Death
Upon the death of either partner, the surviving partner shall have the right either to
purchase the interest of the decedent in the partnership or to terminate and liquidate the
partnership business. If the surviving partner elects to purchase the decedent's interest, he
shall serve notice in writing of such election, within three months after the death of the
decedent, upon the executor or administrator of the decedent, or, if at the time of such
election no legal representative has been appointed, upon any one of the known legal
heirs of the decedent at the last-known address of such heir.

(a) If the surviving partner elects to purchase the interest of the decedent in the
partnership, the purchase price shall be equal to the decedent's capital account as at the
date of their death plus the decedent's income account as at the end of the prior fiscal
year, increased by their share of partnership profits or decreased by their share of
partnership losses for the period from the beginning of the fiscal year in which their death
occurred until the end of the calendar month in which their death occurred, and decreased
by withdrawals charged to their income account during such period. No allowance shall
be made for goodwill, trade name, patents, or other intangible assets, except as those
assets have been reflected on the partnership books immediately prior to the decedent's
death; but the survivor shall nevertheless be entitled to use the trade name of the
partnership.

(b) Except as herein otherwise stated, the procedure as to liquidation and distribution of
the assets of the partnership business shall be the same as stated in paragraph 10 with
reference to voluntary termination.

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Arbitration
Any controversy or claim arising out of or relating to this Agreement, or the breach
hereof, shall be settled by arbitration in accordance with the rules, then obtaining, of the
American Arbitration Association, and judgment upon the award rendered may be
entered in any court having jurisdiction thereof. In witness whereof the parties have
signed this Agreement.

Executed this from 1st day of business, 2010 in Faisalabad, Pakistan.

Signature of all partners ________________________

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