Project Report On

Business Policy and Corporate Strategy

By:-

YPM Inc. Group BBA VI Semester

Under the Supervision of

Mr. Abdoulie Sallah

Asst. Professor School of Business Studies, Sharda University

In Partial fulfillment of Award of Bachelor of Business Administration

Session: 2011-2012

SCHOOL OF BUSINESS STUDIES SHARDA UNIVERSITY KNOWLEDGE PARK- II, UTTAR PRADESH, INDIA

ACKNOWLEDGEMENT
This project report has been an eye-opener for us as it has opened new vista of information. We are grateful to Dr.Abdoulie Sallah ; he has helped us developing a structure of report in our mind. We were well guided by Dr. Shalini Sharma; in absence of Dr. Abdoulie Sallah. Words shall never be sufficient to describe our experience while doing this project. Nor shall they ever be able to express the feeling of our utmost gratitude towards our faculty guide Dr.Abdoulie Sallah.

This project was a struggle that was made much more difficult due to numerous reasons mostly beyond our control.

Finally, we are very thankful to one and all who directly and indirectly helped me in the successful completion of my project.

DECLARATION & CERTIFICATION

We hereby declare that the Project work entitled Business Policy and Corporate Strategy submitted by YPM- Group for the BPCS Continuous Assesment during the Bachelor of Business Administration to School of Business Studies, Sharda University, Greater Noida is our own original work and has not been submitted earlier either to the SBS or to any other Institution for the fulfilment of the requirement for any course of study.

NAME OF THE STUDENT

SIGNATURE

1.Doucoure Tidiane 2.N.Sharada Prasanna 3.Puja Gupta 4.Rupesh Chandra 5.Sweta Dey 6.Rahul Bhatnagar

NAME OF THE FACULTY

SIGNATURE

Mrs.Swati Bansal

Place : Date :

CONTENTS

S.no 1. 2. 3.

TOPIC Executive Summary Introduction Vission and Mission Goal

PAGE NO. 5 8 7 9 10 13

4. 5.

Environmental Scanning Action and Planning

6.

Strategic Formulation

15

7.

Strategic Action Programme

17

8. 9. 10. 11. 12.

HR Department Marketing Department Finance Department Learning Annexures

20 21 24 30 32

EXECUTIVE SUMMARY Business education market in India is growing at a rapid rate. Currently 1,550 business schools producing over 1, 00,000 management graduates every year which is not enough to meet the growing demand for management education in India. As a result, opportunities in management education in India are immense. Hence, business education in todays environment plays a significant role and should prepare the students to face the challenges boldly. The education service gap can be defined as a discrepancy between what students are taught in the classroom setting and what they experience in the field work. This is why, Prof.Abdoulie gave the Final year students an opportunity to explore their potential individually and as a team.

INTRODUCTION

Business Project given by Abdoulie Sir (Entreprenuel Opportunity)

Collection of funds--- 6 Partners (Rs.200/head) & From Abdoulie Sir as an investor (Rs.900). Total:Rs.2100

Idea for Business proposition- by Environmental Scanning = ETOP Decided to start a food business- evergreen for our campus (Preferred Manufacturing rather than outsourcing)

Products: Maggi,

Bread Omlett

Idli sambar

Bhel puri

Formulating various strategies to operate the business and use resources optimally Daily OCP & SWOT analysis - Value addition to sustain competitive market Managing and effective performance of various departments

Feedback from Faculties Emerging as the maximum profit making company & gaining lot of appreciation through out the campus.

LONG TERM VISION-MISSION STATEMENT

VISION To be the most profit gaining and customer satisfying team.

MISION To be a respected as a team fostering practical learning spirit, academic and professional excellence, and innovation. Developing a culture that strongly promotes innovation and continued betterment in all facets of project duration.

Vision
The promoters' vision of YAMLA PAGLA MAGGI in one week is: YPM Inc will be operating infront of SBS between SDS and SET. It will be profitable and have weekly sales of Rs... ,YPM Inc will employ 6 people mainly engaged in the required daily activities of YPM having knowledge in different department such as marketing, Finance, IB and HR. YPM will offer MAGGI as core products and provide added-value services to its customers i.e Cold drinks. YPMs offerings will be advanced with clear goal and offer many clear-cut advantages and improvements over competitors' possible offerings.

Mission Statement
The central purpose and role of YPGInc is defined as: YPG markets and sale Maggi to its prospective customer such as Students and Faculties in Sharda UniversityCampus. YPMoperations are distinguished from competition by its sophisticated timing and way of targeting its customers.Sales are made directly through major central distributor of YPM located in front of SBS in Sharda University.

Business Objectives

Short term business objectives of YPM Inc are summarized as:

To expand the business aggressively and offer above-average returns to shareholder (Tidiane ,Rupesh, Puja , Sharada, Sweta) and return the investors money which is at least 75% of the total fund raised for the Business operation from the investors market (Dr AbdoulieSallah). To become the leading, innovative systems company in theUniversity premises and among competitors.

Major Goals

The following key targets will be achieved by YPMInc over the one Week time:

Achieve sales of Rs by the end of the week Report weekly profits of Rs.. Secure 80% of the targeted market segment by the end of the week Become largest seller of Maggi and lays in the campus within a Week

ENVIRONMENTAL SCANNING

What

How
Environmental Scanning

Why

Who

When

10

Defined:
Knowing and predicting the trends, events and the relationship in Sharda Universitys internal Environment and using the information we got and using them to plan YPMs operation and future course of action.

Why the Environmental scanning?

In other to Systematically strategies the decision making process and forecast the future of YPM. We had to grasp the interrelated and dynamic environment that impact the pocket of the people within Sharda University.

Objectives :
Trend Projections Opportunities Threats

11

Environmental Factor:
Strengths: Consortium characteristics that allow it to take advantage of opportunities (or reduce the impact of barriers) regarding this environmental factor.

Within Consortium
More than Five thousand (5000) students Large number of eligible and ready to buy consumers Mixed consumer targeting Average daily money spend by a student or faculty is more than or equal to Rs 40 First Mover Opportunity More Gen-Y consumers ( they like ready made ,fast consumer goods such as Maggi, Cold drinks , Facebooking etc) No specific Area to setup the Business No rules and guidelines as to where the Business are to be set up Not all targeted customers might buy the offered product Competitive Environment No safe place to keep the inventories

Weaknesses: Consortium characteristics that could stand in the way of its members taking advantage of opportunities (or reducing the impact of barriers) regarding this environmental factor.

External to Consortium
Opportunities: Factors external to the consortium/area that allow it to take action regarding this environmental factor. Access to the Market Hand in Hand with direct suppliers Easy Transportation Cheap commodities Ad on Facebook Time Gap Hike in transportation Competitors bringing professionals

Threats: Factors external to the consortium/area that stand in the way of taking action regarding this environmental factor.

in

More

skilled

12

Environmental Scanning Action Planning

1. After a thorough brainstorming and discussion among the group memebers ,we have decided to come out with products that are mostly consumed by the all kind of customers daily whether in the streets or restaurants and are cheap to afford. So we came out with MAGGI , COLD DRINKS(PEPSI, MRINDA,LIMCA etc..), IDLI, VADA, these were the initial product we decided to offer. After Making these decision we thought of giving A name to the company were everybody suggested some names and looking at the taste of the consumers that dominate the market size (students) we have decided to come out with a name that is more Gen-Y oriented and funny to say and on the course YAMLA PAGLA DIWANA which is a Bollywood movie liked by many students and faculties and everybody talked about it ,and the name alone makes someone lough ,so we agreed to choose the first two words and add MAGGI as the third as the companys name (YAMLA PAGLA MAGGI). 2. We had 1 week time to accomplish the Business project

13

Internal Factors
Strengths We had a team that believes in each other We believed in our Mission ,Vision ,Objective and Goals Solidarity and focused-minded members Pro-active

Weaknesses Level of commitment by some members was very less

External Factors
Opportunities

We had members who know many of the key people from who we could easily get the required inputs without spending much.

Threats

We didnt know what our competitors were planning to do which could hamper our Business

3. Issues that had to be addresses before we start the activities were to:

Get some Documents signed to get the Location to set up Our Business To acquire 75% of working capital from the University To assess what other competitors were about to do We Acted as First Movers By capturing the most attractive and easy accessible location in the campus

4.The internal and external factors that impacted our ability to carry out this activity.

14

STRATEGIC FORMULATION Strengths, Weaknesses, Threats & Opportunities This strategic plan addresses the following key strengths, weaknesses, threats and opportunities for YamlaPagla Maggi (YPM):

Strengths:

Weaknesses:

Strong Organic Team Students and faculties are more in number Initial product can evolve into only two ranges of offerings (Maggi, lays) Located in front of SBS centre of the whole University. Very focused team

dependent on borrowings Insufficient cash resources very little Time boundary (1 week) Absence of strong sales/marketing expertise Only two persons operates the company at a time per day except the weekend Transportation cost of the basic materials/resources used for cooking such as: cooking Gas, kitchen utensils.

Threats:

Opportunities:

Other students may enter targeted market segment Diefferent strategies may make drag our sales down Season (winter) may slowdown or could reduce demand Variation in the value of the commodities we will be using may become price sensitive

Market segment is poised for rapid growth (as we pre-informed some faculties and students) Maggi business offer great potential specially from the students point of view The geographical location of the distribution center is located at the center of the targeted market

15

Corporate Values
The corporate values governing YPM development will include the following: YamlaPagla Maggi operates in accordance with the standards in all relationships with customers, suppliers and the University Environment by providing them meals such as snacks, Maggi and cold drink.

Business Objectives
Short term business objectives of YPM Inc are summarized as: To expand the business aggressively and offer above-average returns to shareholder (Tidiane ,Rupesh, Puja , Sharada, Sweta, Akshay) and return the investors money which is supposed to be 75% of the total fund raised for the Business operation from the investors market (DrAbdoulieSallah).

To become the leading, innovative systems company in the University premises and among competitors.

Key Strategies
The following critical strategies will be pursued by YPM Inc: 1. Accelerate product launches by strengthening and starting the Business in the first day of the given starting date. 2. Raise additional capital from shareholders 3. introduce share options for staff 4. Appoint advisers for finance, Marketing, Operation Mnagement. The following important strategies will also be followed: 1. 2. 3. 4. Develop a flexible Business strategy. Merger and Acquisition if possible with other students (competitors company) Ads inside the campus and promotion on the Net such as Facebook Seek new market segments/applications for products maybe selling our products to the building constructors building within Sharda University.

16

Major Goals
The following key targets will be achieved by YPM Inc over the one Week time:

Achieve sales of Rs by the end of the week Report weekly profits of Rs.. Secure 80% of the targeted market segment by the end of the week Become largest seller of Maggi and lays in the campus within a Week

Strategic Action Programs

The following strategic action programs will be implemented: We will Work as a team instead of CEO CFO etc, to avoid miss understanding of the task and responsibilities of each and every Team member. 1. Team Leader: Prepare comprehensive business plan and develop contacts to raise customers within 1 to 2 days . 2. Assigned team member: take care of the finance and other financial expenses of the company 3. All: Develop and implement accelerated market entry and development plans.

Total Capital for the Business Operation :

Each member of the Group will contribute:..Rs 200/Total Group member : 6 Total : 6 X 200 =...Rs 1200/75% of the total fund will be given by the investor, which is...... Rs 840/Overall..Rs 2040/-

17

What Should be Our Growth Objective and Strategies?

Growth objectives can range from drastic retrenchment through aggressive growth. YPM at some point needed to revise and make decisions about the growth objectives and the fundamental strategies it will use to achieve the goals and objectives . There are forces that tend to push YPM decisionmakers toward a growth stance even when a YPM was facing intense competition in the same product range with other competitors and should be trying to grow. For Example : We Didnt have some products initially in our Menu but later on found them vulnerable and worth being part and we were sure that they will be sold and are highly in demande so we quickly push them into our product range which has led to an increase in our demand curve curve to the right and supply was limited , we did knew how to manage it and were able to do so ,to avoid bubbling attempting to make as much profit as we can with speculation , all our steps were calculated decision making .we needed to resist such temptations and select a growth strategy stance that was appropriate for YPM Inc and its situation.

Our major strategic alternatives for each of the primary growth stances were:
Stability and Growth are summarized in the following three sub-sections.

Stability Strategies
There are a number of circumstances in which the most appropriate growth stance for a company is stability, rather than growth. Often, this may be used for a relatively short period, after which further growth is planned. Such circumstances usually involve a reasonable successful company, combined with circumstances that either permit a period of comfortable ,suggest a pause or caution.

18

 Pause and Then Proceed: This stability strategy alternative (essentially a timeout) may be appropriate in either of two situations: (a) the need for an opportunity to rest, digest, and consolidate after growth or some turbulent events - before continuing a growth strategy, or (b) an uncertain or hostile environment in which it is prudent to stay in a "holding pattern" until there is change in or more clarity about the future in the environment.

Growth Strategies
All growth strategies can be classified into one of two fundamental categories: concentration within existing industries diversification into other lines of business or industries. This was made on the assumption that if the business become more attractive and is conducted by other competitors and it has good growth potential, and do not face serious threats diversification tends to have greater risks in short term business such as ours ,we had 1 week. So we chosed concentration strategies. There are two basic concentration strategies, vertical integration and horizontal growth. Thus producing eight major growth strategy categories.

1. Vertical Integration: YPM Inc tried to be vertically integrated since

the first day of its operation , it was part of the strategy to add things bought from the suppliers to our product line ,so we avoided MAGGI Walla and cook ourselves, we avoided processed foods and cook everything on our own .

2. Horizontal Growth: YPM Inc has also adopted this growth strategy
by adding they by day new product range to its existing products

Mergers, Acquisitions, and Strategic Alliances:

This was part of our strategy as a back up strategy when the YPM business is seen intense decrease in its profit and daily transaction.
19

The Human Resource Department deals with management of people within the organisation. It also clarifies and sets day to day goals for the organisation. It is responsible for organisation of people in the entire Company and plans for future ventures and objectives involving people in the Company. Research has shown that the human aspect of resources within an organisation contributes approximately 80% of the organisations value. This implies that if people are not managed properly, the organisation faces a serious chance of falling apart. The Human Resource Departments main objective is to bring out the best in their employees and thus contribute to the success of the Company.

Distribution of Responsibilities

YPM

Rupesh

Tidiane

Puja Finance Head

Sharada

Sweta Delivery Dept

Chef Preparing Maggi, Breadomlett

Cash Counter

Serving

Supply

Serving

Marketing

Billing and collecting payments

Daily cash mgt & generating financial statement

Bringing Idlisambar,Cold drinks, and other raw materials

Order taking and delivering the eatables

20

Marketing Department
Marketing is defined by the AMA as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the customer as the focus of its activities, marketing management is one of the major components of business management. The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions.
MARKETING TECHNIQUES ADOPTED BY YPM INC.

POSTERS ADVERTIZING ON SOCIAL NETWORKING SITES(SNS) DIRECT MARKETING SMSs & E-MAILS

-Displayed through-out the campus -On Facebook,Twitter and Orkut

-Informing directly -To all possible students in contact

NOTE: Additionally Word-of-mouth also was an aid to increase our sales as many people who tasted food at our counter, recommended several others to try.

21

Poster Ad:

JUST FOR A WEEK

ATTRACTIV E PRICES & SPECIAL

OFFERS

OFFERINGS: MAGGI COMBO SOUTH INDIAN COMBO And Many More

ONLY FOR A WEEK:

HURRY!!

30th January(Monday) to 5th February(Sunday)

LOCATION : infront of sbs building For queries contact : RUPESH CHANDRA 8447469036 Sponsored by : YPM Inc.
22

Ads on Social Network:

23

FINANCE DEPARTMENT
Financial Management can be defined as: The management of the finances of a business / organisation in order to achieve financial objectives Taking a commercial business as the most common organisational structure, the key objectives of financial management would be to: Create wealth for the business Generate cash, and Provide an adequate return on investment bearing in mind the risks that the business is taking and the resources invested The key elements to the process of our financial management are: (1) Financial Planning Team need to ensure that enough funding is available at the right time to meet the needs of the business. In the short term, funding may be needed to invest in raw materials, and fund sales made on credit. In the medium and long term, funding may be required for significant additions to the productive capacity of the business or to make value addition. (2) Financial Control Financial control is a critically important activity to help the business ensure that the business is meeting its objectives. Financial control addresses questions such as: Are assets being used efficiently? Are the businesses assets secure? Does the team act in the best interest of shareholders and in accordance with business rules? (3) Financial Decision-making The key aspects of financial decision-making relate to investment,& financing: Investments must be financed in some way however there are always financing alternatives that can be considered. For example it is possible to raise finance from selling new value added products. A key financing decision is whether profits earned by the business should be retained rather than distributed to shareholders. If distributions are too high, the business may be starved of funding to reinvest in growing revenues and profits further.
24

BALANCE SHEET OF YAMLA PAGLA MAGGIE

Liabilities
Expenses Incurred By Each Member
SHARDA
Tomato Ketchup Forks Spoons Tissues Glasses Bowls Plates Dustbin Packets (1 packet) Colddrinks (8 bottles of 2 litres each) Gas Cylinder Centafresh Delivery packets Less : Sharda suppose to give Puja Rs 200 as her contribution 115 20 30 10 70 80 120 15 389 390 160 60

Amount (Rs)

Assets
Contribution By Each Member (200X6) Abdouli's Investment (75% of 1200)

Amount (Rs)
1200 900 2100 420

TOTAL
Difference to be contributed (420/6=70)

1459

-200 1259 600 100 110

TOTAL
RUPESH
CNG

TIDIANE
Petrol Maggie 210 450 0 0 0 0

SWETA
Gas Cylinder

Expenses with no cost

Printout of Pamphlets Cardboards Vessels Stamps

GRAND TOTAL (round off figure)

2520

GRAND TOTAL

2520

25

30-Jan-12
Labor Cost
Total Revenue Earned less: Rs 350 which was suppose to be contributed (Rahul hasn't given yet) 485 TOTAL 2900

Idli (23 plates X 13) Wada (9 plates X 20

305 180

350 2550

Expenditure Incured in buying raw material

SHARDA (inclusing Rs. 200 for bhelpuri) Colddrinks (10 bottles of 2 litres each) Chat Masala Delivery Packets Forks Glasses Plates for bhelpuri Onion, Tomato Stamp pad Bhelpuri material RUPESH Maggie (210) Eggs (220) Breads (30) Mirch dhaniya (10) Refined Oil (20) TOTAL Balance to be carried forward as on 31 January [2550-(1900)] 400 40 60 20 70 35 50 30 200 500 210 220 30 10 30 1900 915

650

2550

2550

26

31-Jan-12
Labor Cost Balance brought down as on 31 Jan ADD: Amount given by members back to YPM after buying 416 raw material Rupesh TOTAL ADD: Revenue earned on 31 210 January 2012 1060 250 65 165 10 25 480 25 40 1690 650

Idli (32 plates X 13) Expenditure incured in buying raw material Rupesh

10 660

Maggie Sharda bhelpuri material delivery packets centafresh box Tissue Spoons Colddrinks (12 bottles) Bhelpudi plates Maggie bowls TOTAL Balance to be carried forward as on 1 Feb [41601690]

3500

2470

4160

4160

27

1 FEBRAURY 2012
Labor Cost Balance brought down ADD: Revenue earned as on 1 455 Feb 2470

Idli (35 plates X 13) Expenditure incurred in buying raw material Rupesh Maggie Sharda Bhelpudi material Colddrinks Delivery packets Vegetables Sticks Glasses Other Expenses transportation TOTAL Balance to be carried forward as on 2 Feb [61151575]

3645

210 840 195 480 30 55 30 50 100 1605

4510

6115

6115

2 FEBRAURY 2012
Labor cost Balance brought down ADD: Revenue earned as on 2 377 Feb 23 50 60 70 4510

Idli (29 plates X 13) Other Expenses Sharda Sweta Tidiane Rupesh

32707

203 580 7200

NET PROFIT

7780

7780

28

Analyses of Financial Statement

Chart Title
3000 2500 2000 1500 1000 500 0
0 650
Increases at an Increasing Rate

2650
Increase at a Decreasing Rate

2070 1810

1 DAY

2 DAY

3 DAY

4 DAY

5 DAY

Distribution of Profit among Members of YPM Inc.

Days PARTNERS
Rahul (Silent Partner)
0 0 0 0

Rupesh

Puja
360 360 450 450

Sharda
360 360 450 450

Tidiane
360 360 0 0

Sweta
360 360 450 450

MONDAY TUESDAY WEDNESDAY THURSDAY

360 360 450 450

TOTAL 1620

1620

1620

720

1620

29

LEARNING
We got a taste of imperial business experience. We understood the concepts like: Consumer Buying Behaviour; Consumer Mind set; Value addition in products offered; Dynamism; and Gaining competition advantage through strategy formulation; and Consumer satisfaction. We learned how to work in a team. Project allowed us to understand team dynamics. It has also helped us to learn how o allocate the resources. It has helped us to understand the concept of optimization. It helped us to learn the role of evaluation and control in business operation through finding deficiencies and taking a corrective measures. We understood how porters five forces influences the decision making process in a business. We learned : Segmenting; Positioning; and Targeting To conclude, the whole business project was an eye opener to understand the differences between theoretical and practical aspects of doing a business with emerging strengths, weaknesses, threats and opportunities.

30

Annexures
Business Photographs

31

FEEDBACK FORMS

32