Al-Madad Stone Crusher

Margallah Hills, Taxila Pakistan

International Islamic University Islamabad

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In the name of Allah, The most Merciful and The most Beneficent

ACKNOWLEDGMENT

Praise is to Allah, the Merciful, and the Beneficent; as without His mercy it would have never been possible for us to complete this project. It is all because of His kindness that this Business Proposal is seeing the daylight. I would also like to thank Mr. Khurram Rizvi our course instructor, for his help in completing this Business Proposal.

E-Commerce Business Proposal

INESS PROPOSAL E-BUSINESS

Submitted to: Submitted By: Members:

Mr. Khurram Rizvi BBA-ITM (15) Mr. Yar Muhammad Khan Mr. Malik Abdullah Niaz Mr. Waseem
553-FMS/BBAIT/F08 566-FMS/BBAIT/F08 545-FMS/BBAIT/F08

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TABLE OF CONTENTS SR.# 1.0 2.0 2.1 2.2 2.3 2.4 2.5 2.6 3.0 3.1 4.0 5.0 5.1 5.2 5.3 5.4 6.0 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 7.0 8.0 8.1 8.2 8.3 8.4 PARTICULARS EXECUTIVE SUMMARY BUSINESS DESCRIPTION Industry Analysis Vision, Mission, Goals Objectives Value Preposition , Business Model Revenue Model, Product Production Sales COMPETITOR ANALYSIS Strength , Weakness, Opportunities, Threats COMPETITIVE ADVANTAGES MARKET ANALYSIS Target Markets Physiographic Analysis Demographic Analysis Pricing Strategy, Promotional Plan, Distribution Plan OPERATIONS: Business location Operating Facilities and equipment Availability of employees Production and operation procedures Purchase of Raw materials Inventory management procedures Quality control procedures, Website Host Website Development Selecting Domain Name FINANCIAL ANALYSIS ORGANIZATION STRUCTURE Form of Business , Liability, Decision Making: Management Plan Human Resource Management: Duties and Responsibilities: PAGES 4 5 5 6 7 7 8 9 10 10 11 11 11 11 11 12 13 13 13 13 13 13 14 14 14 15 15 16 16 16 16 17

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1.0

EXECUTIVE SUMMARY Al-Madad is the stone crusher and supplier which is operating at Margalla Hills, Taxila, Pakistan since 1986.This business is govern by three partners, Muhammad Niaz Malik who is acting as head, Zulfiqar Raja who is acting as deputy head and Basharat Khan who is acting as finance and sale manager. The main three competitors are Rohi, Pathar Ghar and Ahata which are located locally but they arent transformed to e-business. We dont have such direct competitor in the e-business in Pakistan but do have indirect competitor such as alibaba which is outside Pakistan. So we will be the first company to be transformed into e-business in Pakistan, which will have access throughout country and around globe to access maximum customers and catch maximum customers. Our business models are B2B and B2C and the Revenue models are sale, advertisement, subscription, and affiliate and transaction fee revenue model. The distribution plan will be direct sale and whole sale to our customer either to individual customer or entire business and these both are our target margets.Our business will follow the pricing strategy of two methods either demand price or competitive price. The promotion plan which will promote our business can be newspaper, television and social commodities like Facebook, twitter, YouTube and blogs etc. Our company will build website completely outsources from the best vendor in Pakistan which will give an opportunity to the customers who can seek information about our products and their prices and will host that website through Comsats Internet Service Provider (ISP) who is giving 10% discount on all packages till December 31, 2011.Al-Madad is very much focusing on the quality of finished product and customer satisfaction so we take some measures in the form of quality control procedures and inventory management system which will fulfill those needs.

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2.0 2.1

Business Description INDUSTRY ANALYSIS

Our industry is crush manufacturer and crush supplier which will operate in e-business. The economy of Pakistan is the 47th largest in the world in nominal terms and 27th largest in the world in terms of purchasing power parity (PPP). Pakistan has a semi-industrialized economy, which mainly encompasses textiles, chemicals, food processing, agriculture and other industries. Growth poles of Pakistan's economy are situated along the River, diversified economies of Karachi and Punjab's urban centers coexist with lesser developed areas in other parts of the country. The economy has suffered in the past from decades of internal political disputes, a fast growing population, mixed levels of foreign investment, and a costly, ongoing confrontation with neighboring India. However, IMF-approved government policies, bolstered by foreign investment and renewed access to global markets, have generated solid macroeconomic recovery the last decade. Substantial macroeconomic reforms since 2000, most notably at privatizing the banking sector have helped the economy. GDP growth, spurred by gains in the industrial and service sectors, remained in the 68% range in 200406 due to economic reforms in the year 2000 by the Musharraf government. In 2005, the World Bank named Pakistan the top reformer in its region and in the top 10 reformers globally. Islamabad has steadily raised development spending in recent years, including a 52% real increase in the budget allocation for development in FY07, a necessary step toward reversing the broad underdevelopment of its social sector. The fiscal deficit the result of chronically low tax collection and increased spending, including reconstruction costs from the devastating Kashmir earthquake in 2005 was manageable. Inflation remains the biggest threat to the economy, jumping to more than 9% in 2005 before easing to 7.9% in 2006. In 2008, following the surge in global petrol prices inflation in Pakistan reached as high as 25.0%. The central bank is pursuing tighter monetary policy while trying to preserve growth. Foreign exchange reserves are bolstered by steady worker remittances, but a growing current account deficit driven by a widening trade gap as import growth outstrips export expansion could draw down reserves and dampen GDP growth in the medium term. Manufacturing industry analysis suggests that the manufacturing industry has served as the pivotal factor in the economic development of a country. Manufacturing industry analysis also indicates that the manufacturing industry provides employment too many thereby contributing to the gross domestic product and per capita income of the country. Approximately 75% of the engineers as well as the scientists get employed in the manufacturing industry as recorded by a manufacturing industry analysis. The Census bureau categorizes a particular manufactured product depending on the primary goods produced by the manufacturing industry.

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2.2

VISION STATEMENT:

The vision of the company is to expand its business not only to the parameter of traditional market of Pakistan but also to transform it in to virtual business across the globe to catch maximum market share and to build strong and reliable relationship between businesses and individual customers. MISSION STATEMENT: Al-Madad Stone Crusher has a mission to provide high quality finishing products and service to customers in time which result in greater satisfaction and to transform business into E-Business to catch maximum market share around the globe. Our company will reduce the unemployment and will become an important cause to increase in Gross Domestic Product (GDP) of Pakistan, by exploding, producing and delivering the best natural resource Lime stone to all over Pakistan and later to the world. GOALS 1. 2. 3. 4. 5. 6. 7. 8. Transforming business from traditional marketing towards E-Business marketing. High quality finishing product. Provide opportunities. Easy Access to place an order. Delivery of product in time. Customer satisfaction. Customer loyalty. Maximum market Share.

Plan to achieve the above goals The first priority of our business is to gain the customer satisfaction by providing a sophisticated website through which an individual customer or an entire business will place an order. Other they will be satisfied and will maintain long term relationship with a company by receiving a high quality finishing product in time. Finally market share can be maximum by gathering maximum loyal customers to the business to enhance the market not to the limited area but can be access throughout Pakistan and around the globe. The aim of our company is to reduce the rate of unemployment by hiring skillful labor on wages with respect to the enhancement of business to all over Pakistan which will result in the increase of Gross Domestic Product (GDP) of the country.

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2.3

Objectives

Short Term Objective 1. Transform into E-Business. 2. Team Oriented. Long Term Objectives 1. 2. 3. 4. 5. 6. 7. 8. 2.4 Customer Satisfaction. Customer Loyalty. Maximum Market Share. Decrease the Rate of Unemployment. Provide Opportunities. Increase in the rate of GDP. Feedback from the customer. Market Position. VALUE PREPOSITION:

The value proposition of our e-business can be stated in the following points. 1. 2. 3. 4. 5. Customer can gather information about our company, their products and prices. Customer can place an order online. Delivering high quality finished products in time. Easy Access throughout Pakistan to reduce time cost. The Only Local and domestic E-Business

We can give a platform to our customers or an organization where they can easily access throughout Pakistan 24 hours clock around. Customers can overview our business, place an order online and can invest in the desired investment segments. Our Company is the only local and domestic E-Business in the Pakistan which will gather maximum loyal customers on the single platform and to establish prominent market position in the market by delivering high quality finished products in time. 2.4 BUSINESS MODEL

Business model is defined as set of planned activities to earn profit in the market space. Our Business will focus on Business to Business (B2B) model and Business to Customer (B2C) model because our target will be business and individual customer. The products we are producing for this purpose is for both the customers (individual) and businesses.
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The value proposition of our e-business can be stated in the following points. 1. 2. 3. 4. 5. 2.5 1. 2. 3. 4. 5. 2.5 Customer can gather information about our company, their products and prices. Customer can place an order online. Delivering high quality finished products in time. Easy Access throughout Pakistan to reduce time cost. The Only Local and domestic E-Business. REVENUE MODEL Sale revenue model. Advertisement revenue model. Subscription revenue model. Affiliate revenue model. Transaction fee revenue mode. PRODUCT

There are different types of product that is producing for our customers are as follows: 1. General Type 2. Special Type General type: General type is one of the types of our product which having different types further and stated below. "*3/4" inches. 3/8" inches. Pan Lime Stone Special type: Special type is another type of our product which is used as follows: Road. Dams. Airport Runway.

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The number of materials that is used for general type is shown in table below: Sr.# Name 01 02 03 04 05 06 Dams Runway Base Road Carpeting Plazas Bridges Lime Powder Material Used Water bow (2* 1/2"inches) 2"*1/2"mix Pan+3/8"inches 3/4"*1/2"*3/8" 3/4"*1/2"*3/8" Stone Cement

2.6

Production Sales in %age: Selling Price 9 12 15 16 2 Daily Sales Working days in a year Total Annual Sales Amount(Rs) 180.00 240.00 450.00 480.00 40.00 1390 264 3, 66,960

Serial# Production Name %age in Share 01 02 03 04 05 1" inch Crush 3/4" 1/2" 3/8" Stone Powder 20% 20% 30% 30% 20%

We are in this business since 1986.Our business focus on the high quality finished products and its size. Our sale revenue model will work by improving our product finishing and its size to achieve the high satisfactory level of the customers.

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3.0

COMPETITIVE ANALYSIS

There is no such direct competitor of us in the e-business but we do have three main competitors who are running the same business but without the transforming of e-business are Pathar Ghar, Rohi and Ahata, so we will be the first to edge our competitor for transmitted our business into ebusiness. The indirect competitor is alibaba who is running its web portal outside Pakistan. The physiographic analysis of customers and businesses are changed due to any natural disaster (earthquake, storm and other climatic or environmental changes).The Rehabilitation demand is high and reach its peak where customer wants to build houses, roads, plazas and shopping mall etc. for their living and for running business to earn profit. Strength: We are in the business since 1986 and will be the first to introduce this kind of a business in
Pakistan, which will be totally based on electronic business. Electronic business will give us the chance to meet maximum customers throughout Pakistan and around the globe. The strengths of the manufacturing industry are that it is relatively stable. Although the demand for manufacturing tends to fluctuate with the ups and downs of the economy, it is characterized by regular periods of recovery following any downturns. Moreover, manufacturing has become highly efficient over the last century, with the ability to maximize both the productivity of the workers and machines to maximize profits.

Weaknesses: A weakness of the manufacturing industry is that much of it is built on the production of non-essential goods. This means that a severe downturn in the economy can have a crippling effect on it. Another weakness is that it is a mature industry. This means that there is heavy competition and little room for growth. As a result, the manufacturing industry can be a cash cow for those who are already in it but may be unattractive to new entrants. Opportunities: Opportunities in the manufacturing industry are in the technology and biotechnology areas. These are growing market segments with higher profit margins. Additionally, they are knowledge-dependent market segments that require highly specialized workers, which make it difficult for low wage countries to compete in this market segment, thereby providing an edge to more industrialized countries. Foreign markets with a growing middle class are providing opportunities for technology and bio-technology manufacturers to increase their profitability through exports. Threats: The largest threats to the manufacturing industry in developed nations are from low wage countries. The low wages of these countries have made it impossible for many businesses in developed nations to compete, requiring them to either close or move overseas to find cheap labor. Increasingly, India is an even bigger threat to the manufacturing industry, with its ability to supply highly educated workers at low wages to fill roles in the high-tech manufacturing market segment.

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4.0

COMPETITIVE ADVANTAGE:

The big advantages over our competitors are as fallow: The Only Local and domestic E-Business. Website. Database. Customer can place an order online. Customer can gather information about our company, their products and prices. Delivering high quality finished products in time. Easy Access throughout Pakistan to reduce time cost.

The above facilities make our business superior from our competitor that is the advantage for us which is not for our competitors have. 5.0 5.1 MARKET ANALYSIS: Target Market: Customers Businesses

The target markets are as:

Our business gives the opportunity to the customers to customize what type of products they want. We delivered according to their demand in time except during rainfall where delay will be the result in postponed. 5.2 Physiographic Analysis

The physiographic analysis of customers and businesses are changed due to any natural disaster (earthquake, storm and other climatic or environmental changes).The Rehabilitation demand is high and reach its peak where customer wants to build houses, roads, plazas and shopping mall etc. for their living and for running business to earn profit. 5.3 Demographic Analysis

The demographic survey of Pakistan shows that people and the business had changed their minds about construction which can be explained in the following. Education. Internet Access. NGOs. Investment. E-Business

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5.4

Pricing strategy: Our price strategy is based on the following methods. Demand Price. Competitive Price.

5.4 Promotion plan: The promotion of our products will be proceeding in the following methods. Facebook Twitter RSS

Blogger

Television

Newspaper

5.4 Distribution plan: The distribution channels of our business that would easily reach customers are as follows. Direct Sale. Wholesale.

To our target markets which are as follows: Customer (Individual). Business

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6.0

OPERATIONS:

6.1 Business location Our business is located in Taxila, which is located near G.T road, which gives the easy access to the people of both the twin cities and here we can supply our goods to all parts of Pakistan. 6.2 Operating Facilities and equipment In terms of selection of our business location, there is a list of very important factors we have considered for our business consequently they may lead to minimize costs and maximize the profit. We have an easy access to sell our products to Federal and both the provinces Khyber PakhthunKhwa and Punjab, because of the lesser amount of cost bearded on it 6.3 Availability of employees All required employees for production process already available in near vicinity. 6.4 Production and operation procedures Our products will be manufactures in our production unit located at Taxila. Production process involves following steps: 6.5 Purchase of Raw materials As our business required blasting materials for cutting of mountains for extracting a limestone from it, so that it is available for the use of other people. Production Process

Shipment After manufacturing the finished product, we load them in a dumper, and this shipment process starts, dumper takes this product to the customers final destination.

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6.6 Inventory management procedures Our inventory control procedure will be based on following guidelines: Producing better lime stone in Pakistan. Store finished products in warehouse. Affiliate transportation facility if needed. Delivery place must be clear and defined. Giving the products in time.

6.7 Quality control procedures We will much focus on quality of our finished product and we will use following procedures for checking the quality of products: When raw materials are received prior to entering production. Whilst products are going through the production process. When products are finished inspection takes place before products are dispatched to customers. WEBSITE Presence 6.6 Website hosts

Website hosting is one of the main components of our e-business. There are several options which we analyzed regarding web site hosing such as store builder service, dedicated web hosting, self-hosting and internet service provider. We will choose internet service provider because it can host web sites and offers additional services like more storage space, simple site statistics and backup which fulfill our intended website host requirement. We will prefer to host our website locally. For this purpose we search many ISPs which provides website hosting service like http://www.unique-links.com.pk/ http://www.cybercity-online.net/ http://comsats.net.pk/hawaii/ We select the services of comsats because its package for web hosting are affordable for our business requirements, and also there is one reason for choosing comsats is that they are giving 10% discount on all packages till December 31, 2011. We will select hosting space 500MB and monthly data transfer 25GB. 6.8 WEBSITE DEVELOPMENT

We will build our website completely outsource from the best vendor in Pakistan. A quality assurance website will be the only efficient operation in our e-business and we will not take any risk to provide any hurdle to achieve our business goals. Our company will select external development of website.

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6.9

SELECTING DOMAIN NAME

For this purpose we suggest many names for our website and also check availability of those names but finally we have selected www.almsc.com because this domain name is available. We select this domain name because Al-Madad Stone Crusher can be abbreviated as almsc so thats why we choose www.almsc.com 7.0 FINANCIAL ANALYSIS

FINANCIALS: SR.# 01 02 03 04 Total FIXED COST: Land and Building (Note) Plant and Machinery Furniture and Fixed Vehicles AMOUNT (RS.) 1,530,000 4,000,000 90,500 1,404,000 7,024,500

WORKING CAPITAL: SR.# 01 02 03 04 Total DESCRIPTION: Production Staff Fuel Inventories (Diesel) Misc. expenses Wear & tea AMOUNT (RS.) 3,12,000 2,60,000 15,000 1/3 of Machinery 5,87,000

OVERHEAD COST: SR.# 01 02 03 04 05 06 Total EXPENSES: Utilities Depreciation Maintenance Selling and Distribution Miscellaneous Website Hosting YEARLY AMOUNT (RS.) 1,20,000 2,000,000 2,61,000 4,50,244 5,50,000 7,000 33,88,244

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8.0 8.1

ORGANIZATION STRUCTURE Form of Business

Our e-business will be established on base of Partnership act, 1932. In which 5 partners are contributing towards capital of business. These members include:
1. Muhammad Niaz Malik. 2. Basharat Khan. 3. Zulfiqar Raja. 4. Shahista Khan. 5. Tahir Khan.

8.1

Liability:

Liability of all the members is unlimited so that to maximize the interest of all members in venture. All the members have the basic right to point out the steps taken by other in meeting and others have to answer in reasonable manner. 8.1 Decision Making:

Every member is authorized to take decision in his under sudden conditions. They follow the same rules of decision in which whole business will be governed by majority members meetings. 8.2 MANAGEMENT PLAN: WE will run our business by the current team, composed of 5 members. Each of team members has developed skills in specific area that will help the firm to reach its goals. In future we may hire more workforce as per requirement of business. 8.3 Human Resource Management: MONTHLY SALARY 15,000 10,000 15,000 8,000 20,000 15,000 18,000 10,000 1,11,000 ANNUAL SALARY 1,80,000 1,20,000 1,80,000 96,000 2,40,000 1,80,000 2,16,000 1,20,000 13,32 ,000

SR.# STAFF TITLE NO.OF PERSONS Shawl 2 01 Shawl Helper 2 02 Dumper driver 4 03 Helper 2 04 PRODUCTION STAFF Crusher in charge 1 05 Assistant crusher in charge 1 06 GENERAL ADMINISTRATION/SELLING STAFF Manager 1 07 Office Assistance 1 08 Total 14

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8.4

Duties and Responsibilities:

Duties and responsibilities of each member are assigned according to the interest and qualification of each of the member. Muhammad Niaz Malik: Head He is the supervisor or the head of our business; he has to manage the things of fallowing matters: 1. Financial Status 4. Expenses Zulfiqar Raja: Deputy Head He is the second supervisor of our business, who leads the business if the head of business is not available so he has the same responsibility which is as fallow: 1. Financial Status 4. Expenses Basharat Khan: Finance & Sales Manager He has a dual role in our business, he take care of fallowing things which are as: Financing. Taking of order. Delivering of order. Keep the record updated. Preparing of balance sheet. Preparing of income statement. 2. Labor wages 3. Liabilities of the other contractors 5. Utilities Bills and other kind of small activities. 2. Labor wages 3. Liabilities of the other contractors 5. Utilities Bills and other kind of small activities.

Other Partnership: The partnership between the three members is done for having a dumper for their business which takes their products to their destination in time. On the other hand there is partnership of Shawl which is used for dinging the mountain for bringing out the best lime stone from it.

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