Kehwa Inn

feel young craze

2010
Submitted to: Sir Irfan Saddique

Group Members :
Muhammad Awais Safdar (MBA02093097) M.Waqas Shabbir Sunil Ahmar Rizwan Saddique Mehboob Elahi Adeel Ashraf The University of Lahore 12/20/2010

Kehwa Inn
feel young craze
Kehwa Inn

Table of Contents:
1. 2. 3. 4. 5. 6. 7. 8. 9. Executive Summary The Business Management team Company Structure Industry Analysis Marketing Plan Operational Plan Financial Plan Appendix

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Kehwa Inn

1.Executive Summary: We look forward some real opportunities to start this fabulous project of Kehwa inn these opportunities includes, Human Recourse , A team with reasonable capital and health conscious youth so we come to the idea of Kehwa with different flavors and convince store in Kehwa Inn. We will be the first one in the market who is going to introduced Kehwa especially in the proper sitting place, so we have first mover advantage. Our Target Market is University students and youth. In the beginning we have decided to start our business with six partners and these six partners are directly part of management. Convince store is the unique addition in caf business in this store we are offering basic needs of students like preserve foods, drinks and some stationery. We have a mission to capture the student market with customer satisfaction and loyalty. Kehwa Inn is a partnership firm and is legacy registered by (SECP) Security and Exchange Commission of Pakistan. Kehwa Inn has been started with the capital of Rs /-500000, this capital is generated by all six partners all the partners invest equally and share will be distributed at the end of every month. as a partner have good understanding, all of us are highly motivated and we have the ability to face any kind of hard challenges of business, special thing in our partnership is we all have done our master degree from same institute so good understanding is expected.

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Kehwa Inn
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Kehwa Inn

2.The Business
The opportunity: We look forward some real opportunities to start this fabulous project of Kehwa inn these opportunities includes: A. Human Recourse that we have in a form of six partners that are highly qualified and very innovative, as team these persons are perfect to run a newly opened Kehwa Inn. B. Capital is the basic requirement of any business for this purpose we have a team with reasonable capital. C. Perceptions of youth is changing rapidly and they are more health conscious so its easy to market this Kehwa as a healthy product. Description of Business: Our product is Peshaeari Kehwa with different flavors initially well offer ADRAK, MINT, LEMON & ILLACHI flavors, and season products like Ice cream in summer and convince store in Kehwa Inn. Competitive Advantage: We will be the first one in the market who is going to introduced Kehwa especially in the proper sitting place. Our marketing policy is to maintain loyal relations with the students. Flavored Kehwa at one Spot with touching environment. Our target market: Our Target Market is University students so we have decided to open our cafs initially at university area and then in future all over the global market.

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Kehwa Inn
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Kehwa Inn

3. Management Team:
In the beginning we have decided to start our business with six partners and these six partners are directly part of management. Names of Management: Muhammad Awais Safdar Muhammad Waqas Shabbir Sunnil Ahmar Rizwan Saddique Mehboob Elahi Adeed Ashraf Additional Staff: Kehwa Makers Convince Store Keepers Sweepers Management experience: Fresh Management. Management Ability: We as a partner have good understanding, all of us are highly motivated and we have the ability to face any kind of hard challenges of business, special thing in our partnership is we all have done our master degree from same institute so good understanding is expected. (CEO) (HRM) (Marketing Manager) (Finance Manager) (Assistant Marketing)) (Labor Supervisor)

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Kehwa Inn

4.Company Structure:
Organizational Chart

Legal Structure: Kehwa Inn is a partnership firm and is legacy registered by (SECP) Security and Exchange Commission of Pakistan. Partnership agreement is attached at the Appendix. Note: (All designations appointed to partners are according to their capabilities and willingness)

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Partnership Agreement of Kehwa Inn

THIS PARTNERSHIP AGREEMENT is made this year 2010 December 13 day of Monday, between partners of Kehwa inn, members are; Muhammad Awais Safdar, Muhammad Waqas Shabbir, Sunil Ahmar, Rizwan Ahmad, Mehboob Elahi, Adeel Ashraf. Explanatory Statement The parties hereto desire to enter into the business of purchasing, acquiring, operating, leasing, owning and selling Kehwa through registered business Kehwa Inn, including but not limited to that certain parcel of land, and all improvements constructed thereon, described as 1 KM Riawand road Lahore and engaging in any other lawful phase .In order to accomplish their aforesaid desires, the parties hereto desire to join together in a general partnership under and pursuant to the Uniform Partnership Act. NOW THEREFORE, in consideration of their mutual promises, covenants, and agreements, and the Explanatory Statement, which Explanatory Statement is incorporated by reference herein and made a substantive part of this Partnership Agreement, the parties hereto do hereby promise, covenant and agree as follows: Section 1. Name The name of the Partnership shall be Kehwa Inn. Section 2. Principal Place of Business The principal office and place of business of the Partnership shall be located at 1 Km Riawand road Lahore. The Partnership shall have such other or additional offices as the Partners may, from time to time, determine in this Agreement. Section 3. Business and Purpose 3.1. The business and purposes of the Partnership are to acquire, hold, manage, operate, develop, sell and lease real property (the "Property"), or interest therein, including but not limited to that certain parcel of land, and all improvements constructed thereon 3.2The Partnership may also do and engage in any and all other things and activities and have all powers incident to the said acquisition, holding, management, operation, development, sale

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Kehwa Inn
Kehwa Inn feel young craze and leasing of the Property, or any part or parts thereof, including, by way of illustration and not by way of limitation, arranging for and delivering contracts of sale, deeds, leases, deeds of trust, ground leases, mortgages, notes and other evidence of indebtedness, security agreements, and other security instruments; entering into agreements for the construction, design and management of improvements; and doing all things reasonably incident to the development, management, leasing and sale of the Property. Section 4. Term The Partnership shall commence upon the date of this Agreement, as set forth above. Unless sooner terminated pursuant to the further provisions of this Agreement, the Partnership shall continue until the close of business or until renewed. Section 5. Capital Contribution 5.1. The original capital contributions to the Partnership of each of the Partners shall be made concurrently with their respective execution, acknowledgement, sealing and delivery of this Agreement in the following amounts set forth after their respective names:

Name Muhammad Awais Safdar Muhammad Waqas Shabbir Sunnil Ahmar Mehboob Elahi Rizwan Ahmad Adeel Ashraf

Rs 83334 83334 83334 83334 83334 83334

5.2. An individual capital account shall be maintained for each Partner. The capital account of each Partner shall consist of his or her original capital contribution, increased by (a) additional capital contributions made by him or her, (b) his or her share of Partnership profits, and decreased by (i) distributions of such profits and capital to him or her, and (ii) his or her share of Partnership losses. Section 6. Profit and Loss The percentages of Partnership Rights and Partnership Interest of each of the Partners shall be equally distributed. Section 7. Management of the Partnership Business

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Kehwa Inn feel young craze All decisions respecting the management, operation and control of the Partnership business and determination made in accordance with the provisions of this Agreement shall be made only by the CEO of the Kehwa Inn.

IN WITNESS WHEREOF, the parties hereunto set their hands and seals and acknowledged this Agreement as of the date first above written.
(1)WITNESS: ________________________________

NAME OF PARTNER: _________________________

DATE: ____________________________

(2)WITNESS: _________________________________

NAME OF PARTNER: _________________________

(3)WITNESS: ________________________________

NAME OF PARTNER: _________________________

(4)WITNESS: ________________________________

NAME OF PARTNER: _________________________

(5)WITNESS: ________________________________

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Kehwa Inn
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NAME OF PARTNER: _________________________
Kehwa Inn

(6)WITNESS: ________________________________

NAME OF PARTNER: _________________________

DATE: ____________________________

5. Industry Analysis:
Over view of Industry Environment Industry environment is also called five forces model.
Threats of new entrance

Bargaining power of supplier

Rivalry
Threats of subsitutes

Bargainin g power of Custimer

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Kehwa Inn
feel young craze Threats of new entrance: The first challenge which we face is existing competitors of our product KEHWA . Existing Competitors of KEHWA INN are Tea Shops & Coffee Shops. The second Barrier is Economic of Scale, there is huge market of restaurants that is serving tea and coffee, to overcome this threat we need much capital to expand our branches. The third major challenge that we expect is the mind set of customers about Kehwa, people usually think that Kehwa is only used by off age peoples so we accept this challenge and working on a very different campaign, the motto of our campaign is feel young craze because our target market is university students. Bargaining Power of Supplier: If bargaining power of supplier is high it means there are some supplier which controls the whole market according to their own wish in this case its a barrier for new entrance but in our case we have limited competitors but their bargaining power of supplier is high.
Kehwa Inn

Bargaining power of Customer: According to our target market where we have very few competitors and our plus edge product differentiation increase our bargaining power and decrease the customers bargaining power. Threats of substitutes Products: Our main substitutes are Tea & Coffee , almost 80 percent people like tea and remaining use to take coffee and very few people use to take Kehwa in this case second problem

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Kehwa Inn
Kehwa Inn feel young craze is time and cost as compared to tea and coffee Kehwa take much time and cost in this condition we have to think strategically because if we increase prices people will switch to tea again.

Rivalry among Competitors: Firms are mutually dependent, if some business make strategy then related firms usually adopt the same way with little bit difference. Competitive rivalry intensifies when a firm competes against one another by improving its market position. In KEHWA INN we are working on the same principal. Why Only Kehwa Inn??? 7 reasons to take our special Kehwa. Quality Product Different flavors Completive Price Specially for Students Energy product with traditional touch Available at your own university It keeps you going on

6.Marketing Plan:
Marketing Campaign:

Feasibility analysis: There are four areas of feasibility analysis:-

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Kehwa Inn feel young craze Product feasibility analysis is been done by our marketing department and it is concluded that our product is feasible for further proceeding, for this purpose we have arranged a panel of experts from quality control department which have already test our product and passed it.

The second area is market feasibility for this purpose we have followed the market trends and collect all the initial information related to market and its perfect for Kehwa Inn stalls in different universities have been arranged which results a very good positive result. Organization has been totally feasible for operations, all the necessary formalities have been full filled by Kehwa Inn team. Financial requirements have been managed and legal documentation have been don. Note: (ALL LEGAL DOCOMENTS ARE ATTACHED IN THE APPENDIX PORTION)

The Challenge: We have to change the perceptions of people that Kehwa is only used by pathans and pakhtuns Hot drink caf and local restaurants Company Analysis Goals Positive change in peoples perception about Kehwa, Financial achievements, Brand Image, capture the market of Lahore within five years. Focus Customer Satisfaction, Quality, Taste and Service Culture Traditional desi with modern trends Strengths Management, Ability, Strong Direct relations, Student Support Weaknesses Capital & Experience Customer Analysis

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feel young craze Number Type Decision process Competitor Analysis Market position Strengths Weaknesses Normal Capital &Experience New Ideas 5 to 6 thousand Students and Youth Depends
Kehwa Inn

Market Segmentation

(Riawand Road Lahore Student area) University Area Tea & Coffee daily Quality and Budgeted Average because some are quality conscious and some are

Description What they want How they use product Support requirements Price sensitivity rate.

The product decisions should consider the product's advantages and how they will be leveraged. Product decisions should include: Brand name Quality Scope of product line Kehwa Best good

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feel young craze Pricing Strategy: Market Research of Kehwa Substitute prices: Product Coffee Tea Kehwa cup Price /Rs 40-120 apx 15-50 apx 10-15 apx
Kehwa Inn

Our simple Kehwa cup is available in Rs 15. This is the limited offer price of Kehwa cup we are also introducing different flavors and dry fruits Kehwa that is available at 30 to 40 Rs. So we are going with Product Differentiation strategy of price Distribution Channels: Initially we have caf at Riawand Road Lahore near University of Lahore. This is the only channel at which our product will be available. Promotions and Advertising: Promotions and advertising will be done through: University Stalls on which we will have small music concerts and some game activities. Cable Advertising Bill Boards

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Kehwa Inn
feel young craze 3-D Add for Bill boards and News Paper:
Kehwa Inn

7.Operational Plan
The operational plan is an essential component to your business plan and it tells the reviewer how your going to get your product/service out to market. That is, how are you going to get your product out of the production stage to the doorstep of you target customer. I know, the operational plan may seem mundane but it will outline some very important answers to such fundamental questions such as: Who is doing what? What are the day to day activities? How will the suppliers and vendors be used?

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feel young craze Who are the suppliers? What are the labor requirements? What are the sources of raw materials?
Kehwa Inn

8.Financial Plans
Kehwa Inn has been started with the capital of Rs /-500000, this capital is generated by all six partners all the partners invest equally and share will be distributed at the end of every month. Total capital 500000 Fixed assets 300000 Net working operating capital (NOWAC) 2000000 1st year Rs Revenue Salaries Utility bills Fuel expanse Rent Furnish Depreciation No pat edit(1-t) 63000 CA CL NOWAC 600000 200000 60000 60000 100000 80000 30000 63000 90000 60000 30000 2nd year Rs 690000 230000 66000 66000 100000 92000 60000 68400 103500 69000 34500 3rd year Rs 793500 264500 72600 72600 100000 105800 60000 111240 119025 79350 39675 4th year Rs 912522 304175 79860 79860 100000 121670 60000 150273 136878 91252 45627 5th year Rs 1049403 349801 87846 87846 100000 139920 60000 201591 157410 104940 52470
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CHANGE IN NOWAC GFA FCF 170000 300000 1035900 feel young craze 4500 5175 300000 123900 300000 166065
Kehwa Inn

5952 300000 204321

6843 300000 254748

Important Information (Assume) Revenue 600000 first year and grow 15% per year Salaries expenses 200000 at first year and grow 15% following years Utility bills 10% of revenue Fuel expense also 10% of revenue Rent is fix for all the five years that is 100000 per year Furnish expenses 15% of revenue C Current assets are 15% of revenue Current liabilities are 10% of sales Gross fixed assets are same for whole the 5 years

Total Depreciation= 270000 Total assets= Book value= 300000 30000

At the end of 5 years we sell our assets at the cost of 900000 because now it is a going concern. Total capital gain =9, 00,000 =8, 70,000 Now we will earn almost 8 lack and seventy Rs (8, 70,000) thousand rupees through this five year project. 300, 00

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9.Appendix Logo

Kehwa Inn

Slogan
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CV of CEO & HRM

P.T.O

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