Introduction tobusiness

Instructor:Zakia Binte Jamal

Course: BUS 201 ; Section: 02

Report Submission date: 05/08/2015

ASSIGNMENT:
Submitted by : (business soldiers)

1 1420298 Md al Rafi

2 1420963 Mohammad yusuf Hossain

3 1420936 Md Nurul Anuwer Siddique

4 1410284 Nusrat Jahan Orithree

5 1421401 Tanay Saha

6 1420943 Md kamrul Hasan

7 1421377 Jisan Ara Jami

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 Title page :

Name of our business : 7 STAR

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3.LETER OF TRANSMITTAL

AUGUST 5th, 2015

Zakia Binte Jamal

Lecture

School of Business

Independent University, Bangladesh

Subject: Submission of the business report on Fire Ash Bricks.

Dear Miss,

It is an enormous pleasure to submit the business report on fly ash bricks of

Bangladesh. It was a great opportunity to work on such a project which helped us
to understand and also evaluate the general trend in the financial health of this
project and also execute the marketing knowledge in the practical ground of
area.

We tried our level best to arrange this business report to the requisite standard
even facing few obstacles while collecting data information. We all thoroughly
enjoyed and efficiently put all efforts to successfully complete the report.
Throughout the whole planning we gained immense knowledge and experience
which would enhance our career development.

Therefore, we request fervently to accept our business report and enlighten us

with your valuable suggestions. We sincerely thank you for giving us the
opportunity and support. We would be glad to answer any queries that you may
have in this regard.

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4.Acknowledgement

We, the group members of group 7 in BUS 201 course sincerely thankful to all
those people who have been giving us any kind of assistance to work on this
report.

We express our gratitude to our honorable faculty Zakia Binte Jamal miss, who
has through her vast experience and knowledge has been able to guide us to
accomplish this report. She gave us the golden opportunity to do this wonderful
report on the topic which also helped us in doing a lot of analysis and we came to
know about so many new things.

We are making this report not only for marks but to also increase our knowledge.

Thanks again to all who helped us.

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Table of contents:
NO CONTENTS PAGE NO
6 Executive Summary 06
7 Company Overview: 07
8 Product Description: 08
9 .Industry Analysis: 09
10 Market Analysis: 09
11 SWOT Analysis 11
12 Marketing plan: 12
13 .Operational plan: 14
14 Human Resources Management Plan: 16
15 Financial plan: 17
16 Conclusion 22
17 Reference: 23

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6.Executive Summary
We are Introducing the business of manufacturing Fly Ash Brick with a viewpoint of elimination
Fly Ash from The ecosystem as an environmental Pollutant, which will provide huge benefits to
organizations as well as to the environment. The Fly Ash Brick business is very new Bangladesh.
As the need and demand of Bricks in Bangladesh we develop this business. As the Law of
Partnership business we are going to Star Fly Ash Business in Bangladesh.Fly ash is a fine
grained material consisting of spherical, glassy particles .The chemical composition of fly ash
varies depending upon source and use. It chiefly consists of oxides of different elements,
namely SiO2, Al2O3,Cao, Fe2O3 and SO3, to name a few .It is nearly insoluble in water.
Negligible amount of heavy metals (less than 1%) is also found bonded to the fly ash. Due to the
presence of these heavy metals, fly ash is often suspected to be a cause of metal leaching
However, the latter claim is often refuted and there is a persistent demand for fly ash to be
classified as a non-hazardous industrial waste.

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7.Company Overview:
Our company is doing business to consumer types of business.

Mission: To Provide and promote business as well as services that strengthen the brick
manufacturing sector for the ultimate benefit of its customer and society.

Vision: To be at forefront in creating awareness about the environment and to be the largest
player in field of Fly Ash Brick Manufacturing.

Business Industry Identification:Benefits and specialty of our Product .

Product Value:Fly Ash bricks are a new idea in Bangladesh. We are going start this business first
time in Bangladesh. As we are first we have a large value in bricks market. Our product cost is
lower than other bricks and strong than other bricks.

Companys Core Competency:The core competency of our Company is low price of fly ash
bricks. Though its stronger than other bricks but we are demanding a very low price than
others.

Legal form of ownership:Our Business is a Partnership Business. We Seven Friends research

about the Fly Ash Brick and find out the importance and demand of Bricks in Bangladesh. We
are seven people build up this business as following the law of partnership business. We are
following general partnership law. Each partner has a right to share in the profits of the
partnership. Unless the partnership agreement states otherwise, partners share profits equally.
Moreover, partners must contribute equally to partnership losses unless a partnership
agreement provides for another arrangement. In some jurisdictions a partner is entitled to the
return of her or his capital contributions. In jurisdictions that have adopted the RUPA, however,
the partner is not entitled to such a return. In addition to sharing in the profits, each partner
also has a right to participate equally in the management of the partnership. In our
partnerships a majority vote resolves disputes relating to management of the partnership.
Nevertheless, some decisions, such as admitting a new partner or expelling a partner, require
the partners' unanimous consent.

Each partner owes a fiduciary duty to the partnership and to copartners. This duty requires that
a partner deal with copartners in Good Faith, and it also requires a partner to account to
copartners for any benefit that he or she receives while engaged in partnership business. If a
partner generates profits for the partnership, for example, that partner must hold the profits as
a trustee for the partnership. Each partner also has a duty of loyalty to the partnership. Unless
copartners consent, a partner's duty of loyalty restricts the partner from using

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partnershipproperty for personal benefit and restricts the partner from competing with the
partnership, engaging in self-dealing, or usurping partnership opportunities.

8.Product Description:

Features:

Size of bricks will be 230 x 110 x 76 mm (as per the International Norms).
Faster construction.
Less mortar consumption.
Most suitable for walls as the bricks are earthquake and water resistant.
Decorative like stone masonry.
Ash content as high as 60%.
Color and design: ash or gray

Advantage of Fly Ash Bricks:

Fly Ash bricks are produced with/ without frog.
The bricks are uniform in shape and size; therefore, require less mortar in brick
work.
Plaster thickness required will be less compared to clay bricks, thus saving of cement
mortar.
These bricks are environment friendly as:
- It uses fly ash, which is by product of thermal power stations.
- Saves agricultural land which is used for manufacturing clay bricks.
- Less energy intensive compared to clay bricks and helps in keeping clean
environment.

The specific benefit: It is a proven fact that Fly Ash bricks which is made with Following THE
BUET Standards in Bangladesh are 100% reliable and long lasting than normal red clay bricks
of any other conventional building material

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9.Industry Analysis:
Fly Ash Brick Is very new product in the bricks industry of Bangladesh.The core competency of
our Company is low price of fly ash bricks. Though its stronger than other bricks but we are
demanding a very low price than others.

This product is not used in Bangladesh so Fly Ash Brick in going to be a very unique product in
Bangladesh bricks market. This bricks are lightweight, therefore, transportation is easy. Its
uniform in shape and size in comparison to burnt clay brick,therefore,require less mortar in
brickwork and finishing work resulting saving of cement mortar.

Our business Started with the given low of government . The law or guidelines which issued by
the board of brick industry.

As the base of raw materials and proper business area we develop our business In ''shaver''. We
also choice a place which is very easy to communication and we build our industry after analysis
on environment.

10.Market Analysis:

Current Market Scene no.

Market is dominated by clay bricks.

Fly Ash brick is a new product to the market.
The government has imposed rules for the use of 100% y ash bricks in a radius of 100
Kms from thermal power plants. However, the government is itself not implying to the
norms. The govt. can be forced to imply to such norms by NGOs and when such a
scenario occurs, the demand for the bricks from the side of the govt. will increase many
folds.
Use of these bricks result savings of almost 37% in the construction cost.
The unit will also require a no objection certificate from the state government other
hand regard to pollution and other concerns.

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SEGMENTATION

- Based on the geographic location.

Country size ( Whole Country)

- Based on demographic location.

- Demographic factors will help greatly in determining the target customers.

Life stage (All Stage)

Income
- Based on benefit location.
Lifestyle (Upscale & Moderate)
Comfort

Targeting and positioning:

Positioning Targeting

Positioned as Builders
Environmental
pollutant cleaner
Consultants
po

Architects

Government

Major competitors :

We dont have so many competitors in the market. We have just only one competitor in the
whole market that is Clay Bricks factories. Most of the people use it because it is available in the
market but we belief when our product will launch in the market it will gain huge response
from customer.

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11.SWOT Analysis
STRENGTH:

Planning, co-ordination, use of latest technology.

Long lasting product than normal red clay bricks.
Cheap price than clay bricks.
Environment conscious product.
Less energy intensive compared to clay bricks and helps in keeping clean environment.

WEAKNESS:

High cost structure.

Totally new product in the market.
Not a lot of brand recognition.
Product bonding is lower due to smooth finish.( But this can be easily corrected by using
a cement: sand mortar of 1:4 and proper curing.)

OPPORTUNITIES:

Little competition
Favorable economic condition.
Support from local authorities.
Developing country & has a huge service market ahead.
Available workers facility.
Favorable environment facility.

THREATS:

Political instability.
Entrance of newer companies every year with strong concept and superior technology.
A change in certain industry related laws.

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12.Marketing plan:
Overall marketing strategy:

Market is dominated by clay bricks

Fly ash bricks is a new product to the market
Use of these bricks result savings of almost 37% in the construction cost
Its a huge market in Bangladesh
Fly ash bricks is 28% lighter than clay bricks so that will be our main strength in this
market

Pricing strategy:

Pricing plays a very vital role during sales of a product. As we can find a large number of
products in the market with the some contents, so by this consumers will be having choice to
buy, so while fixing the price the company will look at the prices of the other competitors in the
market & we will fix the price by keeping the Low class consumers also. As ash fly bricks is now
started growing in the market, the company had decided to offer the product is reasonable
price, which would help the company product to reach more people, by the price that the
product will be kept.

In this market, no one is making fly ash bricks in this moment we are doing monopoly business
but we are demanding low price for getting high amount consumer. We can provide low price
because our making cost less than clay bricks.

Our starting product price for first two years:

Product name Making cost(per brick) Selling price(per brick)

BNB fly ash 12.75 TK 13.00 TK

After two years selling price will be increase 12%, this 12% will be set on that times making
cost.

Competitors product price:

There are lots of competitors and they are providing clay bricks and there price is:

Product Price range (per brick)

Clay brick of competitors 15.00 to 18.00 TK

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Promotional strategy:

Promotion also plays a very vital role the success of a product. The way a product is promoted
clearly has a major impact on the way it succeeds. Bad promotion can lay a good product to
failing the market. Hence the promotion strategy adopted by a company should be carefully
planned & should be meticulous by nature.

Our promotional way will be:-

Personal selling: we will go developer company for convince them to buy our product and
we will also give them offer and low price for long term agreement.

Newspaper- Here we will give our product ads

Social media- A Facebook page which will have all the information of our services.

Banners- Our banners will be posted in main areas of cities.

Website- There will be all kind of information of our product.

We will change our promotional strategy by our work season

Distribution:

Our distribution channel way will be:

We

Wholeseller Developer Consumer

Consumer Consumer

Sales strategy:

We will give offer at our working season

When our consumer will order big amount of our product we will give discount.
For our developer agreement we have special offer for them

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13.Operational plan:

A. Facilities (Factory facilities):There are different factory facilities that can be describe. These
are:

* Overtime bonus overtime bonus should be given to the workers who are actually doing
overtime work. This will increase their efficiency in work.

* Insurance- Insurance facilities should be given to every workers so that they can get help in
their problems..

B. Production planning and process- Capital, lace, machineries, worker,Safely,ready for work
are required for production planning. Firstly capital should be required then a suitable place
should be chosen, after those suitable machineries a platform for workers should be withheld.

Fly ash, Lime, Gypsum and sand are manually feed into a pan mixer where water is added to
the required proportion for homogeneous mixing. The proportion of raw material may vary
depending upon quality of raw materials. After mixing, the mixture are allowed to belt
conveyor through feed in to automatic brick making machine were the bricks are pressed
automatically. Than the bricks are placed on wooden pallets and kept as it is for two days there
after transported to open area where they are water cured for 10 -15 days. The bricks are
sorted and tested before dispatch.

C. Inventory management- perfect and required inventory should be chosen so that there cant
be any difficulty at the time of production making.

FLY ASH: We will buy our main raw material FLY ASH from BOROPUKRIYA coal power
plant.

LIME & GYPSUM: We will collect LIME & GYPSUM from local market.

SAND: We will manage SAND from DEMRA

D. Supply- raw materials and machineries should be taken to the production place in order to
maintain a proper product . This time workers need to be careful because a simple glance of
mistake can incur the product.

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Rawmaterials:

Fly Ash: About 50 to 80% fly ash may be used for the production. Fly ash conform to IS
3812/1981is one of the important aspects.

GUPSUM: Hydrated calcium sulphate are called gypsum. (Caso4 2H2O). Gypsum
should have minimum 35% purity and 5 to 15% may be used.

Lime: Quick Lime or hydrated lime or both can be mixed in the composition. Lime
should have minimum 40% Cao content.

Sand: River sand should be clean & coarse. About 10 to 20% may used.

All the raw materials are indigenous and readily available from the manufacture or traders

Electrical HP Details:

S.N Name Of Machine No:m/s H.P

Connected

1 Automatic Fly Ash Brick Making Machine 1 12

2 Pan Mixer7.5+7.5 2 15

3 Belt Conveyor 1 2

4 Other Electrical Fitttings/Lighting e.t.c --- 6

Total H.P Conceted 35

E. Distribution- Finished goods should be distributed properly. We use LIFO process which last
in first out.

F.Order fulfillment- Distributed things should be place according to order as per client wish. A
bunch of products need to be match so that no complains can come. We will try fulfilling our
order monthly.

G. Research and development- how the products are working or what is the need of the
customers that should be taken under research. According to public or location or system these
should be confirmed and if there is any problem then that should be develop as soon as
possible.

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H.Financial control- it is the most important fact of operational plan. Finance should be taken
under special care so that shortage or loss of money doesnt occur. Excess shortage of money
can cause inflation of productivity. Here the department of finance plays an important role.

14.Human Resources Management Plan:

CEO: Typically the CEO has responsibility as a director decision maker , leader, manager, and
executor.

Marketingmanager: Who control the total market, strategy, distribution process, inventory
management, product standard customers demand, and overall marketing planning.

Finance manager: fianc manger is a manager whom works are auditing, managing taxes,
advising top management on financial matters, collecting funds( credit & fund management) ,
obtaining funds, budgeting, planning.

HR Manager: HR manager is a manager who controls the workers and determining human
resource needs and then recruiting, selecting, developing, motivating, evaluating, and
scheduling employees to achieve organization goal.

Account manager: Who oversees the total accounts department including ( workers salary ,
account receivable, note receivable, total sales, cash, account payable, note payable, profit or
loss, incomes, cost, cash flows etc) to achieve goals.

Production manager: A manager who oversees the product production, product standard,
inventory management.

CEO

Marketing Finance HR Account Production

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15.Financial plan:

FIXED CAPITAL & INNITAIAL INVESTMENT:

(a)Land & Building:

S.N DESCRIPTION AMOUNT Rs

1 Land Lease hold 45,000 Sq.f
2 Building (60 x 40 = 2400 Sq. feet.) 30,00,000
3 Overhead water tank 50,000
TOTAL 30,50,000

(b)Machinery and Equipment:

S.N DESCRIPTION QTY RATE AMOUNT
1 Automatic Fly ash Brick making 1 12,00,000 1,500,000
machine hydraulic operated with all
accessories and fitting with 18HP
Motor
2 Pan Mixture 500 KG Capacity with 7.5 1 3,50,000 3,50,000
HP Motor
3 Belt Conveyor with necessary fittings 1 50,000 50,000
and 2 HP Motor
TOTAL 1,900,000
4 VAT 15% 2,85,000
GRANT TOTAL 21,85,000
Erecting and Electrification Charges 32,000
5 Office furniture 80,000
TOTAL 22,97,000

13. RECURRING EXPENDITURE (PER YEAR):

(a)Raw Material Per Year:

S.N DESCRIPTION QTY RATE AMOUNT
1 Fly ash 5,280Mt 250 1,320,000
2 Gypsum Lime 960 1900 1,824,000
3 Lime 1,320 1300 1,716,000
4 Stand 480 800 3,84,000
TOTAL 5,244,000

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(b) Salaries & Wages( Per YEAR) :
S.N DESIGNATION NO SALARY Amount
1 Production Manager 1 -- Self
2 Un skilled workers 60 (5000*60)=3,00,000 36,00,000
3 Office assistant 1 8000*12 96,000
4 Watch man 1 4500*12 54,000
Total 63 37,50,000

(c)Utilities perYEAR:
S.N DESCRIPTION AMOUNT
1 Power 35 HP 3916 Units@ TK.5 per Unit 2,34,996
2 Water 1,2000
TOTAL 2,46,996

(d)Other Expenses Per YEAR:

S.N DESCRIPTION AMOUNT
1 Postage and stationery 12,000
2 Repairs and maintenance 36,000
3 Traveling and transportation 80,000
4 POL 60,000
5 Insurance 1,20000
6 Telephone 36,000
TOTAL 3,44,000

RECURRING EXPENDITURE PER YEAR:

A+B+C+D= 95,84,996 TK/ 95,85,000 TK

RECURRING EXPENDITURE FOR 5 YEARS:

95, 85,000*5 = 4,792,5000 TK
Cost of production: TK.

S.N DESCRIPTION AMOUNT

1 Total recurring cost 14,932,000
2 Total Depreciation on Building @5% 150,000
3 Total Depreciation on Machinery and furniture 2,29,700
equipments @ 10%
TOATL 15,311,700
Break Even Point = FC / (P-VC)
=53, 47000 / ( 13- 8)
=1,069,400 units

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Turnover 1stYear:
Expected sale 12 lakh bricks @ 13 TK per bricks 15,600,000 Tk

Profit 1st year:

Turnover - cost of Production
15,600,000 - 15,311,700
= 28, 8300 TK

(a) % of profit on sale = (profit / Turnover) * 100

= (28, 8300 / 15,600,000) * 100
= 1.85 %

Turnover 2ndYear:
Expected sale 12.5 lakh bricks @ 13.25 TK per bricks 16,562,500 TK

Profit 2ndYear:
T - COP (5% prowled)
16,562,000 - 16,077,285
= 484,715 TK
(a) % of profit on sale = ( profit / Turnover) *100
= (484,715/ 16,562,500) *100
= 2.92%

Turnover 3rdYear:

Expected sale 13 lakh bricks @ 13.50 TK per bricks 17,550,000 TK

Profit 3rdYear:
T - COP (5% prowled)
17,550,000 16,881,150
= 668,850 TK

(a) % profit on sale = (profit /Turnover) * 100

=(668,850/ 17,550,000) * 100
= 3.81%

Turnover 4th Year:

Expected sale 13.5 lakh bricks @ 14 TK per bricks 18,900,000 TK

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 Profit 4th Year:

T - COP (5% prowled)

18,900,000 - 17,725,208
= 1,174,792 TK

(a) % profit on sale =( profit/ Turnover) * 100

= (1,174,792 / 18,900,000)
= 6.21%

Turnover 5th Year:

Expected sale 14 lakh bricks @ 14.50 TK per bricks 20,300,000 TK

Profit 5th Year:

T - COP (5% prowled)

20,300,000 - 18,611,470
= 16, 885,32 TK

(a) % profit on sale =( 16,88532/ 20,300,000) *100

=8.31%

INCOME STATEMENT:

DETAILS INCOME INCOME INCOME 3rd INCOME 4th INCOME 5th

1st year 2nd year year year year
Sales 15,600,000 16,562,500 17,550,000 18,900,000 20,300,000
(-) Cost of (5,311,700) (16,077,285) (16,881,150) (17,725,208) (18,611,470)
goods sold
EARNINGS 28,8300 4,48,715 6,68,850 11,74,792 16,88,532
AFTER
COST
(-) P Stock 77,841 1,21155 1,80,590 3,17,193 4,55,905
27%
Common 2,10,460 3,27,560 4,88,260 8,57,600 12,32,627
share
holder

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PAYBACK PERIOD:

INVESTMENT = 15,500,000 TK

YEARCASH FLOW

1st 15,600,000

Using payback method we can see it will gives us total return in 1st year. Thats why we can
choose this project.

Our total investment 15,500,000 TK. We provide 60% and we hope residue 40% money give us
our investor to start the business.

RISK:

Uncontrollable Risks:
The political instability in Bangladesh
Inflation of money

Controllable Risks:

Employee conflict
Competitive risk
Dissatisfied customers
Accident cause during transportation

RISK MANAGEMENT

Making a satisfactory working environment for employees

Maintaining and Upgrading equipment
Shift the risk by obtaining suitable insurance policy
Make adequate planning to absorb the risk

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16.Conclusion:
The following main conclusions can be drawn from this study:

The optimum composition of fly ash-sand-lime-gypsum unfired bricks was

fly-ash 55 percent, sand 30 percent, lime 15 percent and gypsum 14 percent
and optimum brick forming pressure was 3000 psi.

Increased brick forming pressure showed an increase in compressive

strength and unit volume weight and a decrease in IRA, absorption capacity,
apparent capacity and open pore volume. Impervious pore volume was
found to be virtually independent of the brick forming pressure.

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Reference:
1. Foundation Of financial management, edition -13th . Published by
McGraw-hill/Irwin,.
2. Principles of Marketing,edition -13th A south Asian Perspective, by
Philip Kotler | Gary Armstrong | Prafulla Y.Agnihotri | ehsan ul Haque
3. Understanding Business edition -9th. By William G.Nickels | james m.
McHugh. | Susan M.McHugh
4. http://www.nbr-bd.org/valueaddedtax.html

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