Human Resource management

ASSIGNMENT:
Business Plan
Submitted to:
Dr. Zeeshan Shoukat
Submitted by:
M. Nabeel Shafqat 2017-MBA-544
Gohar Fareed 2017-MBA-539
Ali Hamza 2017-MBA-540

Page 1 of 26
Executive Summary
Cellular telephones have revolutionized the communications arena, redefining how we
perceive voice communications. Traditionally, cellular phones remained out of the hands
of most consumers due to their high cost. As a result, cell phone carriers have invested
time and resources into finding ways to give the systems higher capacity and thus lower
cost. Cell systems are benefiting from this research and starting to develop into large-
scale consumer products.

Today, cellular phones are truly consumer electronics devices with over 59 million
subscribers. The Nokia Bowl and Qualcomm Stadium are further evidence of the idea
that cell phones are consumer electronics devices. Cell phones have ceased to be an
exclusive status symbol of high-powered lawyers and are now in the hands of millions of
consumers.

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Master Mobile, Inc. is taking advantage of an opportunity to become a highly
distinguished and recognized leader in the cellular communications industry. It is the goal
of our company to become established as the leading distributor of wireless
communications services in the metro Nice burg area.

In order to achieve this goal, Master Mobile' critical success factors will be to identify
emerging trends and integrate them into our company operations, respond quickly to
technology changes/be there early, provide high-quality services, invest time and money
in marketing and advertising, expand into specialty markets, and stay ahead of the
"technology curve."

The company was initially formed as a partnership business by Mr.syed mukhtar , Nabeel
Shafqat Gohar freed in the main boulevard Guldberg 3, and succeeded tremendously in
that market. Capitalizing on the growing wireless communications industry and based
on their success in Pakistan and create a niche market for its products and accessories.

Highlights
800000

700000

600000

500000

400000

300000

200000

100000

0
Year1 Year2 Year3

Sales Gross Margin Net Profit

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Keys to Success

Our company keys to success will include:

1. Provide excellent customer service

2. Grow and maintain a referral network of customers

3. Respond rapidly to customer problems with product or plan

Mission
Master mobiles mission is to offer its customers the highest quality cell phone products
and services. Its owner focuses on personalized service to his customers by offering
convenience and rapid service. Additionally, Master Mobile has the technological
expertise to assist customers in picking the product and service that best meets their
needs. Finally, our staff will have strong vendor relationships with the product suppliers
and will be able to meet customers' demand for the newest innovation in cellular phone
technology.

We believe it is important to remain an active member of the community, and to impact

people's lives in more ways than deriving a profit from them. We propose to host
community events that bring out the best in people.

Objectives
The company plans to focus on the following target markets that will provide us with the
greatest market penetration: the specialty business users, the general business users, and
the personal users. We intend to offer products and service packages that are priced
appropriately for each segment and will offer the services that best suit each segment's
needs.

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Our company will concentrate on selling Global System for Mobile Communications
(GSM) protocol cellular phones - sales, services and support.

Business Objectives
 Company growth

 Become established as the leading distributor of cellular phones and wireless

communications services

 Increase number of retail outlets

Financial Objectives
 Create and increase revenue

Marketing Objectives
 Increase marketing efforts

 Expand market area

 Expand marketing reach

 Brand recognition

 Increase telemarketing efforts

Company Summary
Master Mobile, Inc. will offer its customers GSM cellular phones, and cellular phones
accessories.

GSM stands for "Global System for Mobile Communications." GSM is originally a
European system and is largely being adopted today in the Pakistan. Its greatest

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advantage, a technical one, is that the owner can use the phone all over the world since
the system is used mostly anywhere.

Market demand drives cell phone manufactures and service providers to offer new and
improved services and functions in their cell phones. The demand for more visual
interaction and entertainment with cell phones in the Japanese market, for instance, is
great and as such, their phones are many years ahead of what we will see in the Pakistan
Phones have definitely become an important part of people's lives all over the world,

Company Ownership
Master mobiles is properly owned by mr. syed mukhtar ,mr. Nabeel Shafqat and mr. Gohar fared which
is located in the heart of Lahore main boulevard Guldberg 3

Start-up Summary
Mr. Nabeel, Gohar and Mukhtar will invest 43,00,000 in Master Mobile, Inc. He will
also invest an additional $50,000 when operation takes off in April Year 1. The following
chart and table show projected initial start-up costs for Master Mobile, Inc.

START-UP REQUIREMENTS

Start-up Expenses
Legal 5,00,000
Insurance 50000
Rent 40000
Equipment 2,00,000
Other 1,00,000
TOTAL START-UP EXPENSES 8,90,000
Start-up Assets
Cash Required 2,00,000
Start-up Inventory 3,00,000

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 Other Current Assets 0
Long-term Assets 0
TOTAL ASSETS 5,00,000
Total Requirements 13,90,000

Products
The following are the products that will be offered by Master Mobile:

 GSM Cellular Phones: Motorola, Nokia, Q mobile, Samsung, Huawei, oppo,

sonny, LG Electronics, and others.

 Cellular Phone Accessories: antennas, batteries, belt clips, cables and adapters,
cases, chargers, faceplates, and modems.

Market Analysis Summary

The market potential is huge for our products, evidenced by what appears to be the
unstoppable growth of the telecom industry. Currently, the telecom industry is among the
strongest growth industries and is responsible for huge gains in the capital markets. The
proliferation of cellular phones is increasing at rates which at one time were
unimaginable. One illustrative example is that it is forecasted that within two years over
65% of children from age of 10-15 will have cell phones.

Future growth of the market/products is projected in the following areas:

Text messages between friends. Users can send regular Short-Message Service (SMS) or
email on their phones. Email is of course limited to small file sizes, but many of the
phones allow for English characters to be sent. Each provider also allows special
characters to be sent, such as an array of happy and sad faces, small animated images,
animals, people, hearts, etc. When special characters are not available, people often use a
specialized set of faces to show emotion. Email can also be sent between different
provider phones, but many of the special characters are lost, hence users may try to

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keep a circle of friends on the same provider to receive the special characters. Email, of
course, may be sent from computers as well, but files are often stripped of headers and
attachments when received on cell phones.

One of the recent popular additions to many of the Japanese and Korean phone models is
a CCD Camera that is mounted either on the outside of the clamshell or on the clamshell
hinge. The camera lens is slightly smaller than a dime and takes 4x4 cm pictures to
display on the phone's screen or to send to others. Not only can users take pictures, they
can take video clips as well. Our company will try to take advantage of these
developments and serve its customers in all these new trends and developments.

Market Segmentation
Master Mobile, Inc. will focus on five customer groups,

 Children in the age group of 10-17 years old

 Students

 General public

 Professionals

 Service organizations and companies that need to be in constant communication

with their employees.

Page 8 of 26
 Market ANAlysis

Elder
Working Class 20%
34%

Student
46%

Elder Student Working Class



MARKET ANALYSIS
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Potential Growth CAGR

Customers
Children 10-17 3% 90,000 92,700 95,481 98,345 101,295 3.00%
years old
Students 2% 50,000 51,000 52,020 53,060 54,121 2.00%

Professionals 2% 40,000 40,800 41,616 42,448 43,297 2.00%

General Public 2% 250,000 255,000 260,100 265,302 270,608 2.00%

Operating 4% 40,000 41,600 43,264 44,995 46,795 4.00%

Service
Companies
Other 1% 30,000 30,300 30,603 30,909 31,218 1.00%

Total 2.29% 500,000 511,400 523,084 535,059 547,334 2.29%

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Industry Analysis
The Pakistan market is dominated today by three large companies:

Nokia wireless - owned by a subsidiary of United company since May 31, 2001.

 Revenues: Exceeding 13.6 billion in 2001.

 Wireless Phone Service Subscribers: Cellular voice, messaging and high-speed

wireless data services to more than 8 million customers.

 Cellular Phone Service and Technology: Nokia Mobile Wireless operates the largest
all digital, wireless network based exclusively on GSM (Global System for Mobile
Communications) technology. GSM is the most widely used digital standard
worldwide, accounting for more than 70 percent of the total digital wireless market.

Samsung Wireless is the second largest wireless company in the Pakistan. A leader in
mobile voice and data communications, Samsung is a wireless company determined to
promote the individual to a new level.

 Revenue on the cellular service in Year 2002 was more than $14.7 billion.

 Cellular Phone Service Subscribers: more than 22 million voice and data customers
across the Pakistan

Sony Erickson, is third largest and, is a leading provider of fully integrated, wireless
communications services on the largest guaranteed, all-digital, wireless network in the
country.

 Revenue on the cellular service $8.7 billion (2002).

 Cellular Phone Service Subscribers: 10.61 million (2005).

Master Mobile is aiming to gather a share of the market from these three.

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Competition and Buying Patterns
Brand names are of little, if any, importance. The key to the buying decision on the part
of the consumer is the salesman and the cell phone being in front of them. As has been
pointed out in the Competitive Analysis section there are other sellers with similar brand
names as those supplied by Master Mobile, Inc. which may even be less expensive. It is
essential that the salesman point out the salient features and selling points favoring our
products. Most importantly, our products must be available in the retail outlet,
since whatever products our store carries are the ones that are going to be sold.

The need to attract, acquire, leverage, and retain customers remains a primary concern to
business. Revenue growth through customer acquisition and retention is as important a
requirement in e-commerce as it is in other business. Customers, especially in the Asian
business culture, count speed of service as a key reason why they do business with a
company.

Customers also want consistent, reliable, and easy-to-use service. As the speed of service
increases, customer expectations grow, making friendly, easy, and solution-oriented
customer service an important business trend.

Reflective shoppers get some support from e-commerce as well. They like to investigate
products precisely and consciously. However, when browsing costs a lot because of on-
line charges, they do less of it. Consequently, they do not get a holistic view of the
available options, and their expectations often are not met. Reference-spending customers
do not let themselves be hurried or forced. They use alternative offline sources to get
information. They refuse aggressive marketing, which is accepted in Asian e-commerce.

Master Mobile is planning to take advantage of these trends of buying patterns. We shall
also be very quick in establishing our own website to take advantage of E-trade.

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Strategy and Implementation Summary
Master Mobile will use a strategy of total market service. Assumptions:

1. Every person is a potential customer and all our potential markets will experience
growth.

2. Marketing to one segment of the population will lead to an expansion in overall

market growth.

The following sections review the various strategies that will support this effort.

Competitive Edge
The Seramed Communication's competitive edge will be:

Location: Locating the company in a heart off Lahore Gullberg 3 enables the company
to cover a large and rapidly developing customer populace.

Customer Service: Master mobiles Cellular Inc., their partners has accumulated a vast
knowledge and experience in the cellular phone market, with a special expertise in GSM
phones. He is very familiar with his target customer base. He has an excellent reputation
for customer service.

E-Commerce: The company will make an effort to enhance its sales through a serious
and advantageous website in order to attract customers that are reluctant to do business
with large companies.

Marketing Strategy
Short-term marketing strategies are those that bring will bring us a temporary boost in
traffic. Although these techniques are very important to our over-all plan, they are only a

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temporary traffic source and must not be solely relied upon. Short-term marketing
strategies include:

 Purchasing Advertising

 Bulletin Boards

 Search Engines

Long-term marketing strategies are those that will bring us a steady stream of targeted
traffic over time. These strategies will continue to produce results even years down the
road. Long-term marketing strategies include:

 Opt-in Lists

 Discount promotion

 Content

By creating and implementing a balanced marketing strategy, using both short-term and
long-term strategies, Master Mobile will drive a steady stream of targeted traffic to our
website.

Using this simple formula when creating our Internet marketing strategy and excelling at
all three, we hope to guarantee our success.

Our short-term marketing strategy will focus heavily on sales promotion, niche
positioning in the market and customer service with loyalty and retention in sales.

Our promotions will always stay in tune with our company objectives and mission
statement.

Sales Strategy
Constructing our Sales Strategy we shall follow the following steps:

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Sales Success Requires Planning - we shall formulate our sales strategy and tactics to
achieve our sales success.

Analyze Our Potential - we shall step through a structured process that will prepare us
for the development of our sales strategy.

Strategize Around Strengths - the description of our sales activity will be analyzed
producing a report that reveals factors impacting our sales potential.

Develop Our Tactics - we shall receive guidance to develop a comprehensive tactical

plan to achieve our success.

Measure Our Success - we shall constantly develop key measurements that mark the
progress of financial estimates that guide our growth.

Employ An Action Plan for Success - we shall provide our sales force a clear tactical
plan that is also aligned with management's strategic objectives.The sales strategy of
Master Mobile is simple. The key to customer satisfaction is having the product
and services that meet the customer's needs. A crucial part of that is to also have
knowledgeable employees to help customers quickly find what they want.

Sales Forecast
Sales forecast displayed here is very conservative — although we aim very high, we
decided to show a very slow growth and revise the plan on a yearly basis. As a rule we
expect to expand the volume much more rapidly.

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 Sales by Year
600000

500000

400000

300000

200000

100000

0
Year1 Year2 Year3

Cullular Phones Cullular Phone Assesories Fixed Wireless Phones Other Services

SALES FORECAST
YEAR 1 YEAR 2 YEAR 3

Sales

Cellular Phones 138,000 190,000 270,000

Cellular Phones Accessories 126,000 160,000 200,000

Fixed Wireless Phones 46,500 60,000 90,000

Other Services 46,500 90,000 150,000

TOTAL SALES 357,000 500,000 710,000

Direct Cost of Sales Year 1 Year 2 Year 3

Cellular Phones 31,650 43,560 61,900

Cellular Phones Accessories 30,450 41,500 51,800

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 Fixed Wireless Phones 11,700 15,500 23,300

Other Services 11,710 23,300 38,900

Subtotal Direct Cost of Sales 85,510 123,860 175,900

Milestones
The Milestones table hereunder is destined to be a working plan for the formation of the
new organization, including legal negotiations, hiring of personnel, rental of the facility,
building of initial inventory, beginning of marketing and start of physical operation.

The team to execute the chores will have to follow up on the timetable and make sure that
everything falls in place — to ensure smooth start of sales and success of the
organization.

MILESTONES

Milestone Start Date End Date Budget Manager Department

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 Preview of Business 1/1/2019 1/15/2019 20,000 CEO Department
Plan by Investor

Concluding Legal 1/10/2019 2/10/2019 50,000 Owner Department

Matters

Hiring of Operators 2/1/2019 3/1/2019 10000 CEO Department

Conclussion of 1/15/2019 2/15/2019 40,000 Owner Department

Rentals

Preparation of 1/15/2019 3/1/2019 2,5000 Programmer Department

Website

Acquiring Initial 2/15/2019 3/15/2019 3,00,000 Store Department

Inventory Personnel

Start of Marketing 3/1/2019 4/1/2019 0 Marketing Department

Mgr.

Start of Operation 4/1/2019 4/10/2019 5,0000 All Department

Management Summary
The management of Master Mobile, Inc. is made up of the parrtners, a Marketing
manager and three other members who will be hired locally and will be added: a
Programmer, and two store attendants with one serving at the beginning as secretary.

Personnel Plan
The Master Mobile' store will operate virtually 112 hours a day 7 days a week. Although
the store opening hours will be officially 10:00 a.m. to 6:00 p.m., it is clear that due to
our Internet operation the customer support will be a non-stop one.

PERSONNEL PLAN

YEAR 1 YEAR 2 YEAR 3

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 CEO 42,000 48,000 54,000

Marketing Manager 26,400 28,800 31,200

Programmer/Office Administrator 21,000 22,200 23,400

2 Store Attendantds 33,600 36,960 40,000

Other 0 0 0

TOTAL PEOPLE 0 0 0

Total Payroll 123,000 135,960 148,600

Financial Plan
It is assumed that the partners private resources will be sufficient to finance any monthly
cash-flow shortage. However, it would be advisable to establish a bank relationship as
soon as possible. Sales could very well increase at a much sharper rate than assumed in
these conservative projections. Sharper sales will result in a greater need for funds in
support of inventory and receivables. An over-draft line of credit with the bank will be an
excellent cushion to fall back on.

This is considered a very good time to start a new business. The economy is beginning its
trek up, and consumer spending is up. The Commerce Department reported, "Consumers
had increased their spending, the largest advance in nine months."

A shorter learning curve will be brought to the business by the owner due to his extensive
background and in-depth market knowledge. He has a clear understanding of the need to
manage costs and forecast future needs so that the business is not "broadsided" by the
unexpected.

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One other component on which the financial plan is based is wise purchases. Finding the
right product, at the right price will enable the business to meet planned margins and
maintain inventory at an attractive level with a high turn rate.

Start-up Funding
Partners of master mobiles will invest 43,000 in Master Mobile, Inc. to cover start-up
costs. He will also invest an additional 50,000 when operation takes off in April 2019.
The table below illustrates funding sources for our start-up costs.

START-UP FUNDING

Start-up Expenses to Fund 11,000

Start-up Assets to Fund 32,000

TOTAL FUNDING REQUIRED 43,000

Assets

Non-cash Assets from Start-up 30,000

Cash Requirements from Start-up 2,000

Additional Cash Raised 0

Cash Balance on Starting Date 2,000

TOTAL ASSETS 32,000

Liabilities and Capital

Liabilities

Current Borrowing 0

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 Long-term Liabilities 0

Accounts Payable (Outstanding Bills) 0

Other Current Liabilities (interest-free) 0

TOTAL LIABILITIES 0

Capital

Planned Investment

Owner 43,000

Investor 0

Additional Investment Requirement 0

TOTAL PLANNED INVESTMENT 43,000

Loss at Start-up (Start-up Expenses) (11,000)

TOTAL CAPITAL 32,000

TOTAL CAPITAL AND LIABILITIES 32,000

Total Funding 43,000

Important Assumptions
As a general rule our company will not sell on credit. However, for very special cases we
might offer short-term credit against valid assurances. We shall accept cash and checks,
Visa, MasterCard, Discover and American Express, and PayPal on the Internet. All sales
paid via credit cards will be deposited in our business checking account within 48 hours.

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Projected Profit and Loss
There are many factors to include when determining a projected profit and loss statement,
these are included in the following table.

Profit Yearly
200000
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
Year1 Year2 Year3

Series 1

Gross Margin Yearly

600,000

500,000

400,000

300,000

200,000

100,000

0
Year1 Year2 Year3

Series 1

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 PROFORMA PROFIT AND LOSS

YEAR 1 YEAR 2 YEAR 3

Sales 357,000 500,000 710,000

Direct Cost of Sales 85,510 123,860 175,900

Other Costs of Sales 26,824 30,000 45,000

TOTAL COST OF SALES 112,334 153,860 220,900

Gross Margin 244,666 346,140 489,100

Gross Margin % 68.53% 69.23% 68.89%

Expenses

Payroll 123,000 135,960 148,600

Marketing/Promotion 4,500 10,000 25,000

Depreciation 0 0 0

Rent 24,000 24,000 24,000

Insurance 12,000 12,000 12,000

Payroll Taxes 0 0 0

Other 0 0 0

Total Operating Expenses 163,500 181,960 209,600

Profit Before Interest and Taxes 81,166 164,180 279,500

EBITDA 81,166 164,180 279,500

Interest Expense 0 0 0

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 Taxes Incurred 24,350 49,254 83,850

Net Profit 56,816 114,926 195,650

Net Profit/Sales 15.91% 22.99% 27.56%

Projected Cash Flow

Our projected cash flow is outlined in the following table.

PRO FORMA CASH FLOW

YEAR 1 YEAR 2 YEAR 3

Cash Received

Cash from Operations

Cash Sales 357,000 500,000 710,000

SUBTOTAL CASH FROM OPERATIONS 357,000 500,000 710,000

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0 0 0

New Current Borrowing 0 0 0

New Other Liabilities (interest-free) 0 0 0

New Long-term Liabilities 0 0 0

Sales of Other Current Assets 0 0 0

Sales of Long-term Assets 0 0 0

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 New Investment Received 50,000 0 0

SUBTOTAL CASH RECEIVED 407,000 500,000 710,000

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending 123,000 135,960 148,600

Bill Payments 139,315 247,800 360,927

SUBTOTAL SPENT ON OPERATIONS 262,315 383,760 509,527

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out 0 0 0

Principal Repayment of Current Borrowing 0 0 0

Other Liabilities Principal Repayment 0 0 0

Long-term Liabilities Principal Repayment 0 0 0

Purchase Other Current Assets 0 0 0

Purchase Long-term Assets 0 0 0

Dividends 0 0 0

SUBTOTAL CASH SPENT 262,315 383,760 509,527

Net Cash Flow 144,685 116,240 200,473

Cash Balance 146,685 262,924 463,397

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 Projected Balance Sheet
The table shows the annual balance sheet results, with a healthy projected increase in net
worth. Detailed monthly projections are in the appendix.

PRO FORMA BALANCE SHEET

YEAR 1 YEAR 2 YEAR 3

Assets

Current Assets

Cash 146,685 262,924 463,397

Inventory 8,000 11,588 16,457

Other Current Assets 0 0 0

TOTAL CURRENT ASSETS 154,685 274,512 479,854

Long-term Assets

Long-term Assets 0 0 0

Accumulated Depreciation 0 0 0

TOTAL LONG-TERM ASSETS 0 0 0

TOTAL ASSETS 154,685 274,512 479,854

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable 15,869 20,770 30,462

Current Borrowing 0 0 0

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 Other Current Liabilities 0 0 0

SUBTOTAL CURRENT LIABILITIES 15,869 20,770 30,462

Long-term Liabilities 0 0 0

TOTAL LIABILITIES 15,869 20,770 30,462

Paid-in Capital 93,000 93,000 93,000

Retained Earnings (11,000) 45,816 160,742

Earnings 56,816 114,926 195,650

TOTAL CAPITAL 138,816 253,742 449,392

TOTAL LIABILITIES AND CAPITAL 154,685 274,512 479,854

Net Worth 138,816 253,742 $449,392

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