Declaration

We hereby declare that the project work entitled “TOCAR” submitted

to the University of Management & Technology, is a record of an
original work done by us under the guidance of Mr.Khalil Muhammad
(Chairperson of entrepreneur club) , and this project work has not
performed the basis for the award of any Degree or diploma/associate
ship/fellowship and similar project if any.

Abrar
Ahmad

Asma Zafar

Mohsin
Rehman

Usman
Sohail
 Zain Sajjad

Executive Summary

This executive summary will give you key facts concerning the “LEAP
TECH”. These facts will help to find out how well the Leap Tech
opportunity can match your business goals. A business purpose is to
attract, keep customers and bring technology in the daily life of its
customers. Our company is providing a product which would change
the trend of traditional menu system in restaurants. We are offering
touch pad with menu software in it, by which a person can place order
by one touch. Our product would be available at our outlet located at
JEFF HEIGHTS. We are targeting niche market that restaurants of
Lahore we are offering them our product because we have a survey
and identified a gap. Technology is touching every field so why not
restaurants, for fulfilling this gap we are introducing TOCAR. For
developing the software of Tocar we have outsourced. The REHMAN
BUSINESS SYSTEM is the software developers.

In the existing market we are not having any competitor at present but
we are expecting to have competitors in future. The aim of our
company is to provide every good quality restaurant with new
technology and to make good relationship with them. And we foresee
that we would attain our goals within couple of years. For attainment of
goal, management of our company would give their best and the
management handled by all the partners of our Partnership Company
and equal profit sharing is done in our partnership.

1st year we plan to sale 360 devices and the revenue that will be
generated by selling these devices will be Rs. 9,000,000. In 2nd year we
expect that our sale will grow by 10%, so the devices that will be sold
in 2nd year will be 396 and the revenue generated by selling these
devices will be Rs, 9,900,000. Regarding investment plan, we are
hoping to sell our idea and report to the investor who is interested in
doing this business.
 Our Business

Form of Business

As we are introducing a touch menu pad, so our target market will be

restaurants industry. So, the form of our business will be B to B.

Name of Business

The name of our business is “LEAP TECH”

Business Description

Our business is entrepreneurial in nature. We are introducing a new

menu device (Order placement device) in the market so we are the
pioneers in this industry. This device will help the restaurants to reduce
the cost because by using these devices, the restaurants can cut off
the cost of the waiters. In future we will bring changes in our product
according to the demand and need of the market and our customers.
 Our mission statement

“We work to help businesses throughout the world of food, to

realize their full potential and use technology for this purpose. We
would act honestly and provide quality and after sale service for our
product. Our product reflects this mission and the values that make
it possible”
 Our Corporate Goals and Objectives

:
 • To make and provide highest level of quality and after sale service in
cost efficient manner.

• To be more creative and satisfying our customers.

• To undertake new research and development programs aimed at

developing new features.

Product Description

The product that we are introducing in the market is an order

placement device. With the help of this device, now the customers do
not have to wait for the waiters. They can place their orders by using
this touch menu device. When they place order the order would be
received at the main terminal which would be placed in the kitchen,
the receiver of order could know which food items, what quantity and
from which table the order is generated.

Gap Identification

Now we can see technology is playing its role in all the fields of life. So,
there was a gap in the market, which we have identified. People are
now bored of the traditional menu cards, they want something new.
Moreover the restaurants also want to cut off their costs and they also
want to bring changes. So we have come up with the “TOCAR” to fill
this gap.

Our Innovation
Explanation of our innovation:

We are introducing a terminal of order placement. A terminal can be

used to look up the menu items within specific category with the prices
for each item, and order can be easily placed by just clicking the item
you want to order, . You can also pay easily by cash, credit or debt
cards just by punching code and a single click, there you can also give
feed back & suggestions. You can also pay easily by cash, credit or
debt cards just by punching code and a single click. This system would
reduce the cost of waiters and customers would feel more convenient
in eating in a restaurant where no waiter is around to peek.

How TOCAR™ is creating a differentiation?

• Its technology

• Order on just one touch

• And its existence is itself creating differentiation

TOCAR creates differentiation by its innovative idea of technology, as

this technology is introduced first by us, now people can order easily
and restaurants can cut expenses of salary to waiters. No one has
introduced this type of product before we are the first one to introduce
this.

Justification of the Innovation-why we think it’s going to sell?

We think TOCAR™ is going to sell in the market

because of the following reasons.

1. We think TOCAR™ is going to sell because people

want something different and liking the technological
changes.
2. Restaurants that want to give quality services to its customer would
happily want to buy our product.

3. It would be very good for decreasing the expenses of restaurant.

Marketing
Section
• Potential Entrants: (High pressure)

o Big companies like Sony, LG etc can enter the market

easily.
o Entry barriers are relatively low, as we (Tocar) are new in
the market.

• The Bargaining Power of Buyers: (Low pressure)

o The individual buyer has little to no pressure on Tocar

because we are the only one who is providing this order
placement gadget.
o Consumer advocate groups cannot complain about Tocar
pricing.
 o Consumer could not shop at a competitor because we
don’t have any competitor yet.

• Bargaining Power of Suppliers: Low to Medium pressure

o Tocar had a lot of power because by Tocar threatening to

switch to a different supplier would create a scare tactic to
the suppliers.
o Tocar could vertically integrate.

• Substitute Products: Low pressure

o When it comes to this market, there are not many

substitutes. Only the traditional menu card is the
substitute.
o The customer has the choice of going with traditional menu
card or our product.

• Rivalry Among Established Companies: (Very low

Pressure)

o Currently, there are no main current companies that exist

in the same market as Tocar.

This is a favorable business to entre because if have a look at the

Porters Model, we will come to know that three out of four forces are
favorable and only new entrants is not favorable. So it is a good
business to entre.
 PEST Analysis

Political Environment:

TOCAR is not affected by any change in the political environment.

Economical Environment:

All restaurants with good financial position and name in the market can
easily afford it. With the help of this device restaurants can reduce
their costs and expenses and will help to increase the profit margin.

Social Environment:

Tocar™ is not specifically concerned with any religion, race,

occupation, family life cycle or gender and has a target market in
every societal group where there are food lovers. Main concerned
segment is restaurants which want to give their restaurants new way
of hospitality to their customers.

Technological Environment:

As we know that technology plays a vital role to reduce cost and

improve quality so, we have introduced “TOCAR” to fill the gap. It will
dramatically change the traditional menu card system wit one touch
device. Data base would be automatically maintained and you can
know easily about the customer preferences and feed back of
customers for all the food items.

FAB Analysis (Features Attribute Benefits Analysis)

Features

• Digital menu with prices and quantity

• Assemble order on touch

• Easy to operate

• Generating data base

• Instant and flexible billing facility

Attributes

• Connected to main screen where order is processed

• It can be customized according to the customer requirements

 • It can also be updated

• Free services for one year

• No installation charges

• Free training

Benefits

The concept allows restaurant customers to order and pay for their food
directly from one device without having to hand over any credit cards. The
menu is displayed on the tablets touch screen and once you have chosen
your meal it is then transmitted via Wi-Fi to the kitchen ready for preparation.
The device keeps itself in topped up by charging itself at any time it is placed
on the table top.

SWOT Analysis

The overall evaluation of a company’s strengths, weaknesses,

opportunities and threats is called SWOT analysis. It’s a way of
monitoring the external and internal marketing environment.

Strengths:

• New and different product in the market

• Distribution
• Niche target market
• New technology is accepted very swiftly
• Our product is the need of the market

Weaknesses:
• Low Diversification
• We have a limited target market

Opportunities:

• No direct competitor
• Can introduce more features to improve
• Our product is at small scale we can do it on larger scale
• Now we are doing selective specialization, we have opportunity to
do market specialization
• We can make ourselves as a strong brand in future

Threats:

• No awareness about the product to the people

• “Tocar” can be introduced by any other re-known company
• Unstable economic situation in Pakistan can also affect our
product

Key Success Factor:

“Differentiation and continuous innovation

is the key success factor”
 IFE/EFE

Internal Factor Evaluation:

Key Internal Weighted

factors Weight Rating Score

Strengths

Strong management 15% 2 0.3

Niche Market 5% 1 0.05

Up-To-Date
technology 25% 4 1.0

Distribution 20% 3 0.6

Need of Market 10% 2 0.2

Weakness

Low diversification 10% 2 0.2

Limited market 15% 2 0.35

Total 100% 2.70

Total weighted scores well below 2.5 point to internally weak business.
Scores significantly above 2.5 indicate a strong internal position. We
have scored 2.70 so we assume that we have strong internal position.

External Factor Evaluation:

Weighted
Key External factors Weight Rating Score

Opportunities

No direct competitor 20% 3 0.6

Introduce features to
improve 20% 4 0.8

Can do it on larger scale 10% 2 0.2

Market specialization 10% 3 0.3

Strong brand in future 5% 2 0.1

Threats
No awareness to the
people 15% 1 0.15

Copy able Idea 20% 3 0.6

Total 100% 2.75

Total weighted score of 2.75 indicates that the business has more than
average ability to respond to external factors.

7P’s of “TOCAR”

Product:

Tocar is a product by which you can order by

clicking the item you like, you can pay bill at the
spot. Tocar can replace the traditional menu
cards.

Price:

Product Cost Price Sale price Profit Margin

TOCAR 18,700 25,000 6,300

As we are entering in the market with new product so, the strategy
that we will be following is price skimming. It means that we will enter
in the market with high price. The purpose of skimming is to maximize
the profit.

Place:

Tocar would be available on our one and

only outlet at JEFF HEIGHTS. We have
chosen this area because it is central place
of the restaurants. Many re-known
restaurants are operating at this area so it
would beneficial for us to market our product in a proper manner. We
are very optimistic about product being marketed at a good level.

Promotion:

We are not using any free sampling are advertisement for promoting
our product because our target market is limited.

• Promotion would be done by making presentations of how is

product work and acknowledging our customer it would be
beneficial for them.

• Restaurant to restaurant promotional programs would be

conducted

Physical evidence:

We will be having our outlet at JEFF HEIGHTS. The shop that we have
rented is at the 1st floor and we will pay Rs. 100, 00/month rent for it.

Process:

The above given diagram shows the process of our business that how
will we receive the orders and how will we provide the finished goods
to our customers.

People:

As we are new in the market so we don’t have contacts with people.

We hope to have good relations with the people. If we came up with
the problem with our suppliers which are the touch screen maker and
the software developer we can switch them easily because of low
bargaining power of the suppliers.

Marketing Plan to Launch

Market Segment

a) Demographics:

TOCAR is not concerned with any religion, race, occupation, family life cycle
or gender and has a target market of specific niche. Main concerned segment
is restaurants who want to be more attractive and welcoming to their
customers.

b) Geographic:
In start we are just launching our product in Lahore via University of
Management and Technology. After its successful launching in Lahore, we will
launch it in all the big cities of Pakistan like Islamabad, Karachi, Quetta,
Faisalabad and later on in all the cities of Pakistan.

c) Psychographics:

We are launching a product that is for restaurants businesses who believe

they serve people of class who love to live luxurious life and our product
would provide luxury to the food lovers when they feel much comfortable in
placing orders by one touch.

Target Market of TOCAR

Target Market Analysis:

There are five patterns of target market

selection:

• Single segment concentration

• Selective specialization
• Product specialization
• Market specialization
• Full market coverage
 TOCAR is doing single segment concentration, to target the market
because we have a certain product that is sold to certain market
segments.

As you can see in this figure, a single product is sold in a single market.

P = Product M = Market

Manufacturing Analysis or Supplier Analysis

As we are selling a physical good so we have to maintain the

inventory. We will import Android touchpad from China, which will cost
us 12,600 Rs. including handling and transportation costs. We have a
contract with a local software house, which is situated at Defence
Road. They will make software for us. We are outsourcing a software
house. Our task is to convince the customers to buy that device. Then
the software house will develop customize software for customers.
They will also install software in their restaurants and do networking so
that the device can work properly. After installation of the software, if
any problem comes then that software house will go on behalf of us to
fix that problem. We are sharing a profit percentage with them. We are
outsourcing a software house because if we maintain our on software
house, it will be costly for us. We are choosing the current supplier
because he is selling us the android hardware cheaper then any other
supplier. In case of any failure, if he could not supply us the Android
hardware, we will buy it from any other supplier. As we have
mentioned earlier that there are many suppliers available in the
market, we can buy the device from them. As we know that it is
software so there are chances of copying, in this regard we have a plan
that we will introduce new technologies in the device and our main
focus is on developing the strong relationship with our customers.
Following are the suppliers that are available to us. Currently our
suppliers are Shenzhen Easydy Electronic Technology Co., Ltd. We are
using the current supplier because he is cheaper then any other available
supplier. In future if dollar rate changes it can effect us.

• Shenzhen Easydy Electronic Technology Co., Ltd.

• Show China Industry Co., Ltd.

• TGF Group Co., Ltd.

• SD-Omega Electronics Industry Co., Ltd.

PERT CHART OF TOCAR

TASK time
Tasks ES
DescriptionEF LS
Preced LF
Durati Slack
ent on
A 1 0 1 0 1 0
A Order - 1
B7 Purchases A 108
B 1 8 1 0
C Customization of software A 2
D D1 Installation
8 of software
9 B,C
8 19 0
E Check either working D 3
E 2 9
accurately 11 9 11 0
F Delivery E 1
F g1 Teach11 them how it 12
works 11
A 9 12 0

TOTAL 26

TASK TIME ES EF LS LF FLOAT

C 3 1 3 6 8 5

Activities on node diagram

• Critical path is A,B, D,E,F

Information Technology Analysis

 Software:

We are going to provide a new JAVA™ based software that will be the
graphical interface for the product which is an android based touchpad.
The software will be friendly user which will help in navigating an e-
menu of a restaurant. This software will be a simple to use software
and every one will be able to understand it without having any
problem. There is no need of special training for the use of such
software and any person who is familiar with using a normal computer
will be able to use this software. There are not many chances of
software failure but still there will be an active backup of the software
that can be installed if there is a need of the software.

Hardware:

Some of the main specification of the Hardware to be used is as follow.

10inch android touch pad specifications

Processor rock chip 2808 (ARM926EJC+DSP) 600mhz/1GHZ

OS Android1.5
Memory DDR2 128MB
HDD MLC NAND 2GB (TF2GB/ 4GB/8GB/16GB/32GB and Flash)
Screen Size 10.1 inch TFT (1024x600)16:9
Resolution 1024*600
Touchpad full mirror face, HIGH sensitive touch screen operation, Touch Pad
Camera N/A
WIFI CSR / MARVELL WIFI B/G/N 802.11 b/g
Size 10.1 inch
USB Port 30PIN USB2.0 Max Speed 480Mbps/s
Keyboard resistive touch panel
Power Adaptor 220V Input, 5V DC Output, 2A
Sound Audio build-in 0.5w*1 stereo sparkers
Support hifi audio frequency
Built-in microphone
Battery 5000 mAH / 3.7V (Li-On rechargeable)
Time Working time lasts 5-6hours Standby time is 15-20hours

Language English/chinese/French/Spanish/Portuguese/Italian/German/Indonesian/Vietnamese/Poland /
Turkic/Russian/Hindi/Thailand/Arabic /Greek/ Malay/Swedish/Urdu
Remarks 3G function is Optional for custom-make
Earphone, USB charger, Wall Charger convention wire, Manual

Organization Structure and Personnel Requirements

Include a chart and brief job descriptions, what staff is needed?

Who has committed to the project and what openings remain to be
filled? In the entrepreneur's mind, what positions are critical for
success? For each box in the organizational chart, define the
responsibilities, qualifications, and pay rate for that person. If a
position is to be added after start-up but within a three year time
horizon, use a dotted or dashed outline for the box. The reader will
look to see that appropriate skill sets are present and levels of
compensation appear appropriate. The reader will also look for a
match with the entrepreneur's skills/talents.

For our Business Following staff would be needed:

 CE
O

Marketin Supply
General Finance
g Chain
Manager Manager
Manager Manager

• General Manager:

Duties: supervision of finance, project, marketing, supply chain

managers

Qualification: Enough good manager for managing all positions

and company

• Finance manager

Duties: managing Accounts and doing financial analysis

Qualification: MBA (finance)

• Project manager

Duties: overall project handling and ensuring smooth working

Qualification: MBA

• Marketing manager

Duties: must be able to handle client and find new clients

Qualification: MBA (Marketing)

• Supply chain manager

Duties: Must integrate the supply and demand of the raw

material

Qualification: MS-Supply Chain

• Telephone operator

Duties: Basic duties of attending calls and orders

Qualification: B.A

Compensation: 10000 /= Rs

• Office boy

Duties: simple office work involves limited work

Qualification: F.A
 Compensation: 6000 /= Rs

Position critical for success:

Marketing manager position would be very critical for our success,

because to promote and convince restaurants to buy our product role
is very important and they are the one who can make our company
successful and profitable

Business Model
• How do we create Value?

Heavy Mix:

We are offering product with services of warranty and repairs to our

customers.

Some customization:

We are offering some customization to our customers according to their

hotels and services.

Narrow line:

We are using narrow line strategy because we have a specific target market
to which we will cater.

Shallow lines:

We are dealing specific customers so we are using shallow line strategy

Product itself:

We are selling a complete product so we are using product itself strategy

Value added reselling:

As we are using android hardware and installing our customize software so

we are using value added reselling

Direct distribution:

As we are not using any indirect selling distribution channel so we are selling
our product directly to our customers
 • Who do we create value for?

Type of organization:

As we are selling our product directly to hotel industry so we are dealing in b-

to-b industry

Local:

Currently our target market is all the hotels in Lahore so we are operating
locally.

Service provider:

We are selling our product to hotel industries and hotels are providing
services to their customers.

Niche market:

We are targeting just restaurants and its our niche market.

Transactional:

As we are going to sell our products against money so we are using

transactional strategy.

• What is our source of competence/advantage?

Creative and innovative:

Our product is creative and new in the market and with the passage of time
we have to add new features in our product so we are using creative and
innovative strategies.

• How do we differentiate our self?

Innovation leadership:

As we are introducing a new product in the market that’s why we are creating
difference in the market and we are differentiating our self on the bases of
innovation leadership.

• How do we make money?

Pricing & revenues resources:

 o Fixed:

As we are having just one product and generating our revenue from that
product so we are using fixed strategy for making money.

Operating leverage:

o High:

We are using our resources up to maximum level so we are adopting high

operating leverage strategy.

Volume:

o Medium:

As we are going to start our medium now so we accept that our sales volume
will be medium.

Margins:

o High:

As we are introducing a new product in the market so we are expecting high

margin on our product.

• What are our time, scope and size ambitions?

Subsistence model:

With the subsistence model, our goal is to survive and meet basic financial
obligations in the future. In future we are expecting that our competitor will
entre in the market, so at that time we have to make strategies to compete
with the competitors
 Income Statement of “LEAP TECH”

2011 2012 2013

90000 99000 10890
Revenue 00 00 000

Less: Cost of goods sold

21000 66000
Opening Inventory 0 00 0
75000 45000 75000
Add: Purchases 00 00 00
21000 54000 66000 59400 16050 655500
Less: Closing Stock 00 00 0 00 00 0

36000 39600 43350

Gross Profit 00 00 00

Less: Commercial Expenses

Operational & Admin 59900 65890 72479
Expenses 0 0 0
11500 71400 11500 77390 11500
Depreciation Expense 0 0 0 0 0 839790

28860 31861 34952

Operational Profit (EBIT) 00 00 10

Less: Interest Paid 85000 85000 85000

28010 31011 341021

Earning Before Tax 00 00 0

Less: Tax Paid 0 0 0

28010 31011 34102

Net Profit 00 00 10
 Balance Sheet For “LEAP TECH”
As on December 31st 2011

Assets
Current Assets

Cash In Hand 47100

37875
Cash At Bank 0
15000
Accounts Receivable 00
21000
Closing Inventory 00
40258
Net Current Assets 50

Non-Current Assets
21000
Machinery 0
25000
Furniture & Fixtures 0
Equipments 10000

47000
Total Non-Current Assets 0

Less: Accumulated Depreciation

Plant & Machinery 63000

Furniture & Fixtures 50000
Equipments 2000

11500
Total Accumulated Depreciation 0

35500
Net Non-Current Assets 0

43808
Total Assets 50

Owner's Equity + Liabilities

Owner's Equity
 15000
Capital 00
23808 38808
Add: Net Profit 50 50

Non-Current Liabilities
50000
Long-Term Loan 0

43808
Total Liabilities & Owner's Equity 50
 Net Sales for three Years

Sales Chart
Years Sales
2011 9000000
2012 9900000
2013 10890000

From this graph we can see that our sales are growing at a healthy
growth rate. 1st year our sales is Rs. 9000000 and in 2nd year it is
9900000 and in last year the sales are 10890000.
 Profit for Three Years

Profit Chart
Years Profits
2011 2801000
2012 3101100
2013 3410210

Annual profits are increasing at a good rate. Profit for the 1st year is Rs.
2801000 and in the 2nd year the annual profit is Rs. 3101100 and in 3rd
year the annual profit is Rs. 3410210.
 Calculation of Breakeven Analysis

• Cash break even point = Fixed cost /Price-Variable cost

= 6, 70,000 / 25,000-18700

= 106 units

• Accounting break even point = Fixed cost + Deprecation/Price-

Variable cost

=6, 70,000 + 1, 15,000 / 25,000-18700

=125 units

• Financial break even point = Fixed cost + OCF/Price-Variable

cost

= 6, 70, 000 + 23, 18, 000 / 25,000-18700

= 29, 88,000 / 6300

= 474 Units

Calculation of OCF

OCF = [(SP-C) (Q)-F.C] (1-Tax) + DEP (Tax %)

= (25000-16700) (360) – 6, 70,000 +115000(0%)

= 23, 18, 000

 Best, Base, Worst scenario:

Best Base Worst

Price 27,500 25,000 22,500

V.C 15,030 16,700 17,600

F.C 1,800 2,000 2,200

Q 396 360 324

Base Case NPV:

0 1 2 3

OCF 23, 18, 000 23, 18, 000 23, 18, 000

I.I (15,00,000)

NWC (4,70,000) 4,70,000

Cash Flows (1,970,000) 23,18,000 23,18,000 27,88,000

Base Case NPV = 3445272.104

Best Case NPV:

OCF = [(SP-VC) (Q)-FC] (1-TAX %) + DEP (TAX %)

= [(2700-15030) (396) – 6, 50,000]

= 42, 88,120

Calculation of NPV:
 0 1 2 3

OCF 42,88,120 42,88,120 42,88,120

I.I (15,00,000)

NWC (4,70,000) 4,70,000

Cash Flows (1,970,000) 42,88,120 42,88,120 47,58,120

Best Case NPV = 7798419

Worst Case NPV:

OCF = [(SP-VC) (Q)-FC] (1-TAX %) + DEP (TAX %)

= [(22,500-17,600) (324) -6, 90,000]

= 8, 97,600

Calculation of NPV:

0 1 2 3

OCF 8,97,600 8,97,600 8,97,600

I.I (15,00,000)

NWC (4,70,000) 4,70,000

Cash Flows (1,970,000) 8,97,600 8,97,600 13,67,600

Worst Case NPV= 3, 06,777.62

Sensitivity of NPV to change in sale figure:

Our current sale is 360 units but to calculate sensitivity of NPV to
change in sales we will assume that our sales decrease to 340 units.
For this purpose we have to calculate new OCF and new NPV.
Calculation of new OCF and NPV is as under;

OCF = [(SP-VC) (Q)-FC] (1-TAX %) + DEP (TAX %)

=[(25000-16700) (340) – 670000]

= 28, 22,000 – 6, 70,000

= 21, 52,000

0 1 2 3

OCF 21,52,000 21,52,000 21,52,000

I.I (15,00,000)

NWC (4,70,000) 4,70,000

Cash Flows (1,970,000) 21,52,000 21,52,000 26,22,000

NPV= 3078481

Sensitivity = ∆NPV/∆Q

= 3078481- 3445272/340-360

= 18339.55

Sensitivity of NPV to change in Price:

When we want to calculate sensitivity of NPV to change in price, we
have to assume that we will change the price. Our initial price is Rs.
25,000 and we will suppose that the new price is Rs. 26,000. So, we
have to calculate new OCF.

OCF = [(SP-VC) (Q)-FC] (1-TAX %) + DEP (TAX %)

= (26000-16700) (360) -670000]

= 2678000

Calculation of NPV=

0 1 2 3

OCF 26,78,000 26,78,000 26,78,000

I.I (15,00,000)

NWC (4,70,000) 4,70,000

Cash Flows (1,970,000) 26,78,000 26,78,000 31,48,000

NPV= 42, 40,722.69

Sensitivity = ∆ NPV/ ∆S.P

= 42407722.69 - 3445272.104/ 26000-25000

= 795.45