Group 8

Presented by:
Anushka Gambhir, Noopur Jain, Abhishek Rathi, Ram Agarwal,
Himanish Bhandari, Saurabh Mishra
Market Potential
• Target Customer : Atlantic Canada, New York and New England.
• Environmental Factors:
• Technology Advancement. Market Size
• Increase in demand for on the go organic products
• Growing market in Canada while well developed in U.S.
• Low Labour cost, ingredient cost, operating cost, etc.
4400000
4200000
• Competition:
668332.745
4000000
• No competition for frozen biscuits in Canada. 3800000
3600000 3639935
• CBC holds 50% share for frozen foods in USA.
3400000
• USA is the main exporter of Canadian Baked products. 3200000
1

• Consumer Base:
Sales Forecast
 Expenses
Expenses (June-December)per month
EXPENSES(January-May) in USD

Rent 7500

Rent 7500 Manager Salary 6666.666667

Manager Salary 6666.666667

Labour 14000
Labour 14000
Interest payments 625
Interest payments 625
Marketing and Travel 1583.333333
Marketing and Travel 1583.333333
Employ Related Cost 1680
Employ Related Cost 1680
Variable cost 163380
Variable cost 0
Total 195435
Total 32055

Chart Title Chart Title

5%5%
2% 0% 23% Rent
4%3%
44% 21% 7%
0% Manager Salary
1%
1%
Labour
Interest payments
84% Marketing and Travel
Employ Related Cost
Rent Manager Salary Labour
Variable cost
Interest payments Marketing and Travel Employ Related Cost
Variable cost
 Income Report(June to December)
Chart Title
700000.000
Month(June- Revenue(US Exppenses( Profit
December) Cases sold D) USD) /Loss(USD)
600000.000
-
8754
June 118174.526 195435 77260.47374 500000.000

July 17507 236349.1412 195435 40914.14119

400000.000

August 26261 354523.7118 195435 159088.7118

300000.000
September 35015 472698.2824 195435 277263.2824
200000.000
October 43768 590872.853 195435 395437.853
100000.000
November 43768 590872.853 195435 395437.853
0.000
December 43768 590872.853 195435 395437.853 June July August September October November December

-100000.000
Total profit 1586319.22
-200000.000

Revenue(USD) Exppenses(USD) Profit /Loss(USD)

Break Even Point

• Break Even point is 7th month i.e. the month of July.

Key Risks
• Fluctuating currency exchange
• Major competitors don’t launch the same product which could affect
our sales
• Ingredient, labour, operating cost and other logistics cost might
increase
• Natural calamity might affect raw materials like wheat, etc.
Income Expense Report for Canada for 1Year
Assumptions required for analysis for Canada
• 5% growth rate annual for biscuit dough accounts from 1997 to
2006.
• 15% difference between the per capita expense for frozen biscuits
products between US and Canada population.
• Variable cost is included cost of raw materials which is taken 0 for
initial 5 months.
• Labour is included right from the first month of the company, initially
for the set up of the plant and later for production of product.
Final recommendation
• The recommendation to Finney and Jobe is that they should start the
company as the analysis shows they will have the profit as shown in
the previous slides.
Thank you