A BUSINESS PLAN ON CATERING

Submitted as an Internship Project Report in partial fulfillment of the requirement for the award of Masters of Business Administration (MBA)

20XX 20XX
SUBMITTED BY: ___________________

SUBMITTED TO:____________________

BHARATI VIDYAPEETH UNIVERSITY INSTITUTE OF MANAGEMENT & RESEARCH, NEW DELHI An ISO 9001:2008 Certified Institute NAAC Accredited Grade A University Ranked in Top 50 B-schools in India by Business India CRISIL Grading MBA Programme A*- National Level, A**- State Level

Recipient of B-School Leadership award from Star News

CERTIFICATE OF ORIGINALITY
This is to certify that the project report entitled ____________________ submitted to bharati vidyapeeths university in partial fulfillment of thee requirement for the award of the degree of <Course> is an original work under carried the out by of Mr/Ms______________________________________ guidance

Mr/Ms______________________________________ the matter embodied in this project is a genuine work done by ______________________ (student name) to the best of my knowledge and belief and has been submitted neither to this university for the fulfillment of the requirement of the course of study.

Signature of the Student Name

Signature of the Guide Name & Designation

CERTIFICATE
This is to certify that the Business Plan Titled ________________ is an academic work done by ______________________________ under the guidance of Mr/Ms __________________________ submitted in the partial fulfillment of the requirement for the award of the degree of MBA from Bharati Vidyapeeth University, Pune. The authenticity of the business plan will be examined by the viva examiner which includes data verification, checking duplicity of information etc. and it may be rejected due to non-fulfillment of quality standards set by the institute.

Dr. Sachin S.Vernekar Director

PREFACE
A hallmark of any premier business school is its willingness and ability to constantly explore and implement new ideas and practices in the field of management education. Institute constantly reorients their programs in order to keep abreast of changing development. The initial interaction between school students and industry takes place when the students undergo project is usually for knowing the process for recruitment, selection, industrial relations & training of that institution. It is often the exposure to corporate culture that a student receives, particularly true for students without prior work experience. The main purpose of the study is to know the policies of the bank regarding recruitment, selection & training, which helped me in gaining knowledge about the different working pattern of different departments of the company.

ACKNOWLEDGEMENT

I would like to thank for Mr. __________________ giving me the opportunity of giving Formal Presentation & submitting Business Plan as it would have been difficult for me to understand the details & completing this project in this shape without his necessary guidance & inspiration. I am hearty obliged to _______________ (project guide), who helped me in providing with necessary information on formatting our final project.

Executive Summary
Fressen Catering is a kosher catering company that serves the Philadelphia market. Fressen offers creative, colorful, and unusual food options for kosher as well as the traditional standbys. The service offerings are quite a change relative to the existing kosher catering market which is quite stagnant. Most people make the incorrect assumption that kosher food means ordinary, boring food. This assumption prevails throughout the Jewish community so there is not much demand for new offerings. Fressen catering will inject new life into the kosher catering market, leveraging Chef Susan Cheflly's culinary skills to develop creative new catering options. Susan's advanced skills, industry insight, and a great market opportunity will allow Fressen Catering to reach profitability by month 11 and generate Rs.395,000 in revenues for year three.

1.1 Objectives
The objectives for the first three years of operation include:

To create a service-based company whose primary goal is to exceed customer's expectations.

To increase the number of client's served by 20% per year through superior service. To develop a sustainable start-up business. To develop enough cash flow to pay all salaries as well as grow the business.

1.2 Mission
Fressen Catering's mission is to provide the customer with the finest kosher catering. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

1.3 Keys to Success

The key to success is to meet and exceed the customer's needs in terms of quality of food and excellence of service.

Company Summary
Fressen Catering, located in Philadelphia, PA will offer high-end kosher catering to the Philadelphia community. Fressen Catering will serve parties of 25-300 people with high-end kosher foods that are currently only available in New York City. Fressen Catering will offer a large menu repertoire, from traditional favorites to creative inventions. All of the food and drink items served will be done under strict supervision of the Orthodox Rabbinic authority. Fressen will rent space for the office and kitchen in an industrial area of Philadelphia. Renting in the industrial area will significantly lower the cost. Since the space will be used for food production it is not relevant for the store front to be aesthetically pleasing, or in a nice neighborhood. Fressen Catering is forecasted to generate Rs.395,000 in revenues for year three.

2.1 Start-up Summary

Fressen Catering will incur the following start-up costs:

Two commercial stoves with ovens. Dishwasher. Two sets of cookware. Two sets of dishware. One van with rolling racks built in (a rolling rack is a wheeled rolling cart system that is insulated for both hot and cold food). Assorted serving trays and utensils, knives and cutting boards (two each). Desk and chair. Computer with printer, CD-RW, Microsoft Office, and QuickBooks Pro. Copier and fax machine.

Please note that the following items which are considered assets to be used for more than a year will be labeled long-term assets and will be depreciated using G.A.A.P. approved straight-line depreciation method.

Start-up Requirements Start-up Expenses Legal Stationery etc. Brochures

Rs.500 Rs.150 Rs.150

Rent Other Total Start-up Expenses Start-up Assets Cash Required Other Current Assets Long-term Assets Total Assets Total Requirements Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Susan Family and friends Other Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Total Capital and Liabilities Total Funding

Rs.0 Rs.0 Rs.800

Rs.36,700 Rs.0 Rs.32,500 Rs.69,200 Rs.70,000

Rs.800 Rs.69,200 Rs.70,000

Rs.32,500 Rs.36,700 Rs.0 Rs.36,700 Rs.69,200

Rs.0 Rs.0 Rs.0 Rs.0 Rs.0

Rs.35,000 Rs.35,000 Rs.0 Rs.0 Rs.70,000 (Rs.800) Rs.69,200 Rs.69,200 Rs.70,000

2.2 Company Ownership

Fressen Catering is a sole proprietorship owned by Susan Cheflly.

Services
Fressen Catering will provide Philadelphia with high quality kosher catering. The catering service will be for weddings, Bar/Bat Mitzvahs, and other assorted parties. Kashrut is a specific, ritual/set of rules that applies to certain sects of Judaism in regards to food/drink preparation and consumption. A kitchen or catering service must be specially set up to provide kosher meals. The explanation below regarding the prohibition of dairy and meat served together or made in the same kitchen by the same pots and utensils is the reason that Fressen Catering will require two sets of everything, including two stove top ranges and ovens. The Hebrew word kosher means fit or proper as it relates to dietary (kosher) laws. It means that a given product is permitted and acceptable. The sources for the laws of kashruth are of Biblical origin and expounded in Rabbinic legislation. These laws are codified in the Shulchan Aruch (Code of Jewish Law). Though a hygienic benefit has been attributed to the observance of kashruth, the ultimate purpose and rationale is simply to conform to the Divine Will as expressed in the Torah. Kosher and non-kosher meat, poultry and fish:

The Torah (Leviticus Chapter 11) lists the characteristics of permitted mammals and fish, and indicates the forbidden fowl. The only mammals permitted are those which chew their cud and are cloven hoofed.

The Torah does not list specific characteristics to distinguish permitted from forbidden birds. Instead, it details 24 forbidden species of fowl. The Torah establishes two criteria in determining kosher fish. They must have fins and scales. All shellfish are prohibited. One, however, should not eat fish with meat.

Another element of Kosher meat consumption applies to the way in which the meat is slaughtered. There are several different methods:

Shechita. Only a trained kosher slaughterer (shochet) certified by rabbinic authorities is qualified to slaughter an animal. The trachea and esophagus of the animal are severed with a special sharp, perfectly smooth blade causing instantaneous death with no pain to the animal.

Bedika. After the animal has been properly slaughtered, a trained inspector (bodek) inspects the internal organs for any physical abnormalities that may render the animal non-kosher (treif).

Glatt Kosher. Some Jewish communities or people only eat of an animal that has been found to be free of all adhesions. "Glatt" means smooth, that the meat comes from an animal whose lungs have been found to be free of all adhesions. "Glatt Kosher" is used more broadly as a consumer phrase meaning kosher without question.

Koshering. The Torah forbids the eating of the blood of an animal. The two methods of extracting blood from meat are salting and broiling. Meat once ground cannot be made kosher, nor may meat be placed in hot water before it has been "koshered."

Salting. The meat must first be soaked in salt. After the salting, the meat must be thoroughly soaked and washed to remove all salt. Broiling. Liver may only be koshered through broiling, because of the preponderance of blood in it. Both the liver and meat must first be thoroughly washed to remove all surface blood. They are then salted slightly on all sides. Then they are broiled on a perforated grate over an open fire, drawing out the internal blood.

One of the main tenets is the prohibition of meat and dairy in the kitchen together. The Torah forbids cooking meat and milk together in any form, eating such cooked products, or deriving benefit from them. As a safeguard, the Rabbis extended this prohibition to disallow the eating of meat and dairy products at the same meal or preparing them on the same utensils. One must wait up to six hours after eating meat products before any dairy products may be eaten. Fressen Catering will serve a wide variety of dishes. This is offered for two reasons. 1. The larger repertoire of menu items is a benefit to the customers.

2. A large selection is required because meat and dairy cannot be mixed within the meal, therefore, in essence you have to have two different menus, one with dairy and one with meat. Some of the menu offerings will be traditional kosher/Jewish meals such as beef brisket with potatoes and vegetables and a roasted chicken with rice and spinach. More inventive meals will also be offered to appeal to the higher end, more discriminating customers such as chicken pesto dishes or a red pepper coulis sauce, or maybe salmon with curry coulis and plum chutney. Kosher catering is not cheap. The ingredients cost more, as well as the additional equipment that is needed to eliminate the mixing of dairy and meat products. Per person costs range from Rs.45-110.

Market Analysis Summary

The Philadelphia kosher catering market is an interesting one. There are several caters that offer services that are quite similar to each other in terms of price and menu options. For whatever reasons, there has been little demand by consumers to get caters to innovate their menu. This is not too say that consumers would not welcome new kosher menu items, it is just that people have incorrectly made the assumption that kosher meals have to be boring. Fressen will occupy a niche in the kosher catering market that offers new, creative menu items, broadening people's conception of kosher food. This market consists of two target segments that are differentiated by household income.

4.1 Market Segmentation

Fressen Catering has two distinct target populations: 1. Middle class kosher clients. This group of people does not have huge amounts of disposable income, recognizes that it is costly to sponsor a kosher dinner party, and is willing to incur the expenses, but will try to minimize them. 2. Upper class kosher clients. This group has intertwined kosher values throughout their lives and is willing to spend whatever it takes to throw a high-end kosher

dinner function. Typically, this group is characterized by a wealthy one-income family where the male works and the female does not. The female of the household typically thoroughly enjoys the planning of these events.

Market Analysis Year 1 Potential Customers Growth Middle-class kosher 8% customers Upper-class kosher 9% cutomers Other 0% Total 8.40% Year 2 Year 3 Year 4 Year 5 CAGR 120,547 130,191 140,606 151,854 164,002 8.00% 80,457 87,698 95,591 104,194 113,571 9.00%

0 0 0 0 0 0.00% 201,004 217,889 236,197 256,048 277,573 8.40%

4.2 Target Market Segment Strategy The target market segment strategy will not be significantly different to address the two different groups. Both groups, regardless of income typically belong to the same group of religious congregations. Therefore, to reach the different groups does not require a distinctly different strategy. What differentiation it will require is different menu offerings needed to satisfy the different groups. The upper-end menu items are cost prohibitive for the middle class target segment. 4.3 Service Business Analysis

The kosher catering business in Philadelphia is fairly unique. At the low- to mid-price point of the cost spectrum, there are four other kosher caters. These caterers tend to serve the part of the market that must have kosher food served at an occasion due to religious beliefs, but struggle to able to afford the cost variance between standard and kosher catering. All four of these caters have fairly standard menu offerings. There is a fifth caterer that also serves the lower end of the market (defined as middle class) but serves the high end of the market as well. Although there is a large wealthy population in Philadelphia that follows the laws of kashrut, they have been underserved. 4.3.1 Competition and Buying Patterns As stated in the previous section, there are four other kosher caterers that serve the low to middle end of the market. These caterers compete to some degree on cost (due to budget constraints of some clients), but more so on service. The quality and the serving of the food are the main areas of service that the caterers compete on. There is one high-end caterer who will compete with Fressen. This caterer, while serving the upper-end market, does not provide its clients with upper-end service. This company is not a strong competitor because of their overpriced service offerings relative to the service provided, and its business has been declining over the last few years. Lastly, one competitor for the high-end market is kosher caterers from New York City. When cost is no object, there are many people that are willing to pay the additional cost of bringing in the caterer from NYC. The buying habits of consumers of kosher catering is to some degree price sensitive at the middle end of the market. Between two different service providers, the middle class group will choose the service provider with the best services. However, cost is certainly an issue and some of the caterers are not even options because they are priced out of this consumer groups price range. The buying habits for the high end of the market is price insensitive. Choices are made by menu offerings, reputation, and attention to service.

Strategy and Implementation Summary

Fressen Catering will gradually gain market share in the kosher catering market by leveraging its competitive edges. These edges are superior attention to detail and innovative nouveau cuisine kosher meals. The edges that Fressen will leverage are areas that have been ignored in this market for some time now. These competitive edges coupled with a targeted advertising campaign and networking will be Fressen's game plan for increasing their market share.

5.1 Marketing Strategy

Fressen's marketing strategy will be based on developing visibility among Philadelphia's kosher community. This will be accomplished through two ways. The first method is a targeted advertising campaign. Advertisements will be placed in various Jewish newsletters. There are a couple of Philadelphia-wide newsletters. Additionally, Fressen will advertise in a few Synagogue-specific newsletters. These advertisements should yield a decent amount of service inquiries since they are fairly targeted toward the target population that utilizes kosher catering. The other marketing strategy which is less formal is a networking campaign among the Philadelphia Jewish population. Susan has been an active member of the Philadelphia Jewish community for five years. While the Jewish population is of decent size, numbering around 200,000, it is a fairly close knit community where people tend to know each other. Susan will leverage her contacts within the Jewish community to raise awareness for her catering activities. While the networking might not cast as large of a net as advertisements will, it costs far less and the relationships that it builds will be far stronger because of the trust relationship that has already been established.

5.2 Competitive Edge

Fressen Catering's competitive edge is its attention to servicing customers and inventive approach to kosher cuisine. Fressen's customer attention differentiates them in the world of kosher catering which is dominated by several companies that have plenty of demand. The consequence of market demand is a decreased pressure to accommodate customers. Fressen is approaching the market as if there was significant competition

between the different service providers. By making customer satisfaction a priority, over time, local customers will come to appreciate the attention that their needs are given and form a long lasting relationship with Fressen Catering. Fressen's other competitive edge is their nouveau cuisine approach to kosher food. Traditionally, kosher food has remained stable and unimaginative for a long time. Most people believe that there are large compromises that must be made when serving kosher. These compromises need not be made however, and Fressen is changing these misperceptions. Just because there are strict rules regarding the types of foods that may be used and the way it must be prepared does not eliminate creativity. Fressen is taking their knowledge of nouveau cuisine and creating inventive, colorful, and delicious kosher alternatives.

5.3 Milestones
Fressen Catering will have several milestones early on: 1. Business plan completion. This will be done as a roadmap for the organization. This will be an indispensable tool for the ongoing performance and improvement of the company. 2. Kitchen and office set up. 3. The first catering job. 4. Profitability.

Milestones

Milestone Business plan completion Kitchen and office set up The first catering job Profitability Totals

Start Date End Date 1/1/2001 1/1/2001 1/1/2001 1/1/2001

Budget

Manager ABC ABC ABC ABC

Department Marketing Department Department Department

2/1/2001 Rs.0 2/1/2001 Rs.0 3/1/2001 Rs.0 12/1/2001 Rs.0 Rs.0

5.4 Sales Strategy

Fressen's sales strategy will use a combination of superior customer attention and a comprehensive repertoire of dishes for the menu to turn information seekers into customers. Susan recognizes when a prospective customer calls to get information about Fressen, it is Susan's main opportunity to turn them into a customer. She will do this by spending as much time on the phone as necessary. Another benefit that Susan will leverage to develop sales is her comprehensive menu. In addition to all of the traditional kosher dishes, Susan will offer many innovative nouveau cuisine kosher items that she has developed over her years spent in the culinary industry. An innovative available menu should be seen as a large benefit. There is no intuitive or logical reason that people who adhere to kosher are any less adventurous when it comes to food other than the fact that they have been raised that way.

5.4.1 Sales Forecast

The first month will be used to set up the kitchen and office. There will be no sales activity during the first month. The second month will see a few catering jobs, but still will not be a significant source of income. Months three and four will see a steady increase in sales. Word will have gotten out from the advertising as well as networking that Fressen is the new kosher caterer in town and offers a very high-quality service. Throughout the year it is forecasted that sales will incrementally grow in size until profitability is reached toward the end of year one.

Sales Forecast Year 1 Sales Middle class Upper class Total Sales Year 2 Year 3

Rs.83,017 Rs.170,992 Rs.183,774 Rs.95,422 Rs.196,543 Rs.211,234 Rs.178,439 Rs.367,535 Rs.395,008

Direct Cost of Sales Year 1 Year 2 Year 3 Middle class Rs.24,905 Rs.51,298 Rs.55,132 Upper class Rs.28,627 Rs.58,963 Rs.63,370 Subtotal Direct Cost of Sales Rs.53,532 Rs.110,261 Rs.118,502

Management Summary

Susan Cheflly, the founder and owner received her Bachelor of Arts from the University of Pittsburgh. After college, Susan went to work in the restaurant industry because it was a good source of money. While serving at an upscale restaurant in Pittsburgh, Susan befriended one of the chefs there who began to teach her cooking techniques. Susan began to find this instruction very interesting and enjoyable. After six months of this tutoring, Susan decided that she wanted to remain in the restaurant industry, but wanted to learn the skills needed to be a chef. Susan decided to enter the Pennsylvania Culinary Institute, a well-regarded training school for chefs. Susan completed the one year program and graduated near the top of her class. With this education, Susan went to work as a chef at one of the nicer nouveau cuisine restaurants in Philadelphia. Susan thoroughly enjoyed the five years spent as head chef, but she longed to work for herself, running her own business. Susan thought she would appreciate the ability to set her own hours, to be her own boss. One day, while in temple, the thought hit her that she could operate a kosher catering company and do well because the upper-end of the market has been largely ignored by the current competitors. With this thought in mind, Susan began to do market research. After speaking with many different people as well as holding three focus groups, she recognized that her idea was viable and started writing this business plan.

6.1 Personnel Plan

Besides utilizing Susan's skills full time, Fressen Catering will require the following personnel:

Rabbi: a part-time position where the Rabbi serves as masgiach (supervisor) to inspect and confirm that all of the ingredients and preparation follow the rules of kashrut.

Servers: two will be hired. The servers will be the people who serve the food at the events as well as clear the plates and help with set up and take down of the event. In the event of a large party, the back end kitchen people will be trained to help out with serving.

Cooks: two will be hired to prepare the dishes that Susan has developed. Back kitchen help: these two people will be used to help clean up in the kitchen as well as assist at functions.

Personnel Plan Susan Rabbi Cook Cook Server Server Backend kitchen helper Backend kitchen helper Total People Total Payroll Year 1 Year 2 Year 3 Rs.36,000 Rs.36,000 Rs.40,000 Rs.11,000 Rs.12,000 Rs.12,000 Rs.30,800 Rs.33,600 Rs.33,600 Rs.22,400 Rs.33,600 Rs.33,600 Rs.9,240 Rs.10,800 Rs.10,800 Rs.6,720 Rs.10,800 Rs.10,800 Rs.9,240 Rs.10,800 Rs.10,800 Rs.6,720 Rs.10,800 Rs.10,800 8 8 8 Rs.132,120 Rs.158,400 Rs.162,400

Financial Plan
The following sections will outline important financial information.

7.1 Important Assumptions

The following table details important financial assumptions.

General Assumptions Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other Year 1 1 10.00% 10.00% 30.00% 0 Year 2 2 10.00% 10.00% 30.00% 0 Year 3 3 10.00% 10.00% 30.00% 0

7.2 Projected Cash Flow

The following chart and table will indicate projected cash flow.

Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) Year 2 Year 3

Rs.178,439 Rs.178,439

Rs.367,535 Rs.367,535

Rs.395,008 Rs.395,008

Rs.0 Rs.0 Rs.0

Rs.0 Rs.0 Rs.0

Rs.0 Rs.0 Rs.0

New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current

Rs.0 Rs.0 Rs.0 Rs.0 Rs.178,439 Year 1

Rs.0 Rs.0 Rs.0 Rs.0 Rs.367,535 Year 2

Rs.0 Rs.0 Rs.0 Rs.0 Rs.395,008 Year 3

Rs.132,120 Rs.75,198 Rs.207,318

Rs.158,400 Rs.160,615 Rs.319,015

Rs.162,400 Rs.175,363 Rs.337,763

Rs.0

Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.319,015 Rs.48,521 Rs.56,342

Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.337,763 Rs.57,245 Rs.113,586

Rs.0 Borrowing Other Liabilities Principal Repayment Rs.0 Long-term Liabilities Principal Repayment Rs.0 Purchase Other Current Assets Rs.0 Purchase Long-term Assets Rs.0 Dividends Rs.0 Subtotal Cash Spent Rs.207,318 Net Cash Flow Cash Balance (Rs.28,879) Rs.7,821

7.3 Break-even Analysis

The following table and chart show our Break-even Analysis. Break-even Analysis Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost

Rs.20,362 30% Rs.14,254

7.4 Projected Profit and Loss

The following table will indicate projected profit and loss.

Pro Forma Profit and Loss Sales Direct Cost of Sales Other Production Expenses Total Cost of Sales Gross Margin Gross Margin % Year 1 Year 2 Year 3 Rs.178,439 Rs.367,535 Rs.395,008 Rs.53,532 Rs.110,261 Rs.118,502 Rs.0 Rs.0 Rs.0 Rs.53,532 Rs.110,261 Rs.118,502 Rs.124,907 70.00% Rs.257,275 70.00% Rs.276,505 70.00%

Expenses Payroll Sales and Marketing and Other Expenses Depreciation Leased Equipment Utilities Insurance/ licenses Rent Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred

Rs.132,120 Rs.1,800 Rs.6,504 Rs.0 Rs.600 Rs.1,800 Rs.8,400 Rs.19,818 Rs.0 Rs.171,042 (Rs.46,135) (Rs.39,631) Rs.0 Rs.0

Rs.158,400 Rs.1,600 Rs.6,504 Rs.0 Rs.600 Rs.1,800 Rs.8,400 Rs.23,760 Rs.0 Rs.201,064 Rs.56,211 Rs.62,715 Rs.0 Rs.16,863

Rs.162,400 Rs.1,500 Rs.6,504 Rs.0 Rs.600 Rs.1,800 Rs.8,400 Rs.24,360 Rs.0 Rs.205,564 Rs.70,941 Rs.77,445 Rs.0 Rs.21,282

Net Profit Net Profit/Sales

(Rs.46,135) -25.85%

Rs.39,348 10.71%

Rs.49,659 12.57%

7.5 Projected Balance Sheet

The following table will indicate the projected balance sheet. Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth Year 2 Year 3

Rs.7,821 Rs.0 Rs.7,821

Rs.56,342 Rs.0 Rs.56,342

Rs.113,586 Rs.0 Rs.113,586

Rs.32,500 Rs.6,504 Rs.25,996 Rs.33,817 Year 1 Rs.10,752 Rs.0 Rs.0 Rs.10,752 Rs.0 Rs.10,752 Rs.70,000 (Rs.800) (Rs.46,135) Rs.23,065 Rs.33,817 Rs.23,065

Rs.32,500 Rs.13,008 Rs.19,492 Rs.75,834 Year 2 Rs.13,421 Rs.0 Rs.0 Rs.13,421 Rs.0 Rs.13,421 Rs.70,000 (Rs.46,935) Rs.39,348 Rs.62,413 Rs.75,834 Rs.62,413

Rs.32,500 Rs.19,512 Rs.12,988 Rs.126,574 Year 3 Rs.14,502 Rs.0 Rs.0 Rs.14,502 Rs.0 Rs.14,502 Rs.70,000 (Rs.7,587) Rs.49,659 Rs.112,072 Rs.126,574 Rs.112,072

Whats a startup plan? A simple startup plan includes a summary, mission statement, keys to success, market analysis, andbreak-even analysis. This kind of plan is good for deciding whether or not to proceed with a plan, to tell if there is a business worth pursuing, but it is not enough to run a business with. What is most important in a plan? It depends on the case, but usually its the cash flow analysis and specific implementation details. Implementation details are what make things happen. Your brilliant strategies and beautifully formatted planning documents are just theory unless you assign responsibilities, with dates and budgets, follow up with those responsible, and track results. Business plans are really about getting results and improving your company.

cash flow is both vital to a company and hard to follow. Cash is usually misunderstood as profits, and they are different. Profits dont guarantee cash in the bank. Lots of profitable companies go under because of cash flow problems. It just isnt intuitive. OBJECTIVES OF BUSINESS PLAN
First and foremost objective is to find out the reasons for using of Advance

Product from CAR RENTAL SERVICE. To find out the services that other bank given to their customer. To generate the leads through the survey. To sort out the prospective leads from the data I have collected through the survey. According to the system of management by objectives can be described as a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individual's major areas of responsibility in terms of the results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.

ENVIRONMENTAL SCANNING OF BUSINESS

Competitor analysis Competitor analysis identifies the strengths and weaknesses of competing products or services before starting work on prototypes. A 10 minute tour of each of 4 to 10 of the most popular competing products showing how typical tasks are achieved is presented to a half day meeting of stakeholders. The competitive advantages of each product are discussed, and a short summary of the market position is generated at the end of the meeting. Alternative methods are market surveys or lab tests of competitor products This method may also result in a list of desirable features that the new product could include. Method Planning The main objective of the planning phase is to obtain access to four to ten competitor products. The first question is always: what is a competitor? A context of use analysis of the intended product is important as it will identify the users, the tasks, and the context in which the product is planned to be used. A product is a way of satisfying a user need. A fundamental mistake in competitor analysis is to focus on the enabling technology and not on the user need to be serviced. What products or services are already on the market which satisfy the user need you are interested in? If you are dealing with web-based products or products advertised on the web then a useful methodology is as follows:

obtain a set of keywords which describe the service you intend to offer search the web using at least ten different search engines with this set of keywords make a list of the top ten sites from the results of the different search engines

If your results are too diffuse (i.e., there are no clear winners) then your set of terms is most probably too vague. If your results are too clear cut (i.e., all the search engines agree) then your set of terms is most probably too conventional.

This method is useful for identifying not only web based but also desktop products. However, using it for identifying desktop products only results in a list of products; using it for websites results in a list of URLs (some of which may require registering to access). If the products cannot be identified on the web then you must use conventional search and current awareness techniques to identify the competitors: look in the latest trade magazines for instance. It is also useful to ask domain experts or the marketing department to review the list of competitor products to ensure that the most important competitors are represented. This stage ends when you have acquired access to the most popular competitor products (i.e. if they are software you have to purchase them and possibly also get licenses; if they are web sites you may need passwords for some of them.) Opportunities and Reasons of Entry of Business Six major sources of barriers to market entry: 1. Switching costs. A switching cost refers to a one-time cost that is incurred by a buyer as a result of switching from one supplier's product to another's. Some examples of switching costs include retraining employees, purchasing support equipment, enlisting technical assistance, and redesigning products. High switching costs form an effective entry barrier by forcing new entrants to provide potential customers with incentives to adopt their products. 2. Access to channels of distribution. In many industries, established competitors control the logical channels of distribution through long-standing relationships. In order to persuade distribution channels to accept a new product, new entrants often must provide incentives in the form of price discounts, promotions, and cooperative advertising. Such expenditures act as a barrier by reducing the profitability of new entrants. 3. Government policy. Government policies can limit or prevent new competitors from entering industries through licensing requirements, limits on access to raw materials, pollution standards, product testing regulations, etc. It is important to note that barriers to market entry can change over time, as an industry matures, or as a result of strategic decisions made by existing competitors. In addition, entry barriers should never be considered insurmountable obstacles. Some small businesses are likely to possess the resources and skills that will allow them to overcome entry barriers more easily and cheaply than others. "Low entry and exit

barriers reduce the risk in entering a new market, and may make the opportunity more attractive financially," Glen L. Urban and Steven H. Star explained in their book Advanced Marketing Strategy. But "in many cases, we would be better off selecting market opportunities with high entry barriers (despite the greater risk and investment required) so that we can enjoy the advantage of fewer potential entrants." 4. Economies of scale. Economies of scale occur when the unit cost of a

product declines as production volume increases. When existing competitors in an industry have achieved economies of scale, it acts as a barrier by forcing new entrants to either compete on a large scale or accept a cost disadvantage in order to compete on a small scale. There are also a number of other cost advantages held by existing competitors that act as barriers to market entry when they cannot be duplicated by new entrantssuch as proprietary technology, favorable locations, government subsidies, good access to raw materials, and experience and learning curves. 5. Product differentiation. In many markets and industries, established competitors have gained customer loyalty and brand identification through their long-standing advertising and customer service efforts. This creates a barrier to market entry by forcing new entrants to spend time and money to differentiate their products in the marketplace and overcome these loyalties. 6. Capital requirements. Another type of barrier to market entry occurs when new entrants are required to invest large financial resources in order to compete in an industry. For example, certain industries may require capital investments in inventories or production facilities. Capital requirements form a particularly strong barrier when the capital is required for risky investments like research and development. LIMITATIONS OF BUSINESS 1. Very Expensive Process Planning is the big process so it is very time consuming and you can say money consuming.it may delay certain cases.the expenses on planning is directly proportional to the time spent on planning. if you plan to maintain your budget according the planning process, then result may vary in many cases.

company provide the basic tools to directing the organization. we use planning to ahieve the goals or objectives. but it has some limitations and you should know the limitations of planning . we later discusss how to overcome this problem. firstly Here simple list of the most common limitations of planning:

2. Non availability of data it is major problems on the everywhere you can not find the real data which you want. planning loses its value in absence.and the second problem is when you can not effort too much money for sufficiant information. 3. Inability of planner Planning is a forward looking process. if a planner has a tendency to follow rather than lead then he can not make a good plans. So you need a good planner. 4. Rigidity Planning involves the determination of a course of action in advance. It may lead to internal inflexibility and procedural rigidity. For example With the planning a business or organization may achieve certain goals. But this way planning may create rigidity or It locks business into certain goals. 5. Forcasting Planning has its limitation just as it can not forcast anything . Planning is the roadmap to achieving the certaqins goals. if the forcasts do not turn out to be true, the effectivness of planning is likely to be highly impaired. If authentic figures and information are not available, planning becomes unrealistic. 6. External Factors External factors are very difficult to predict. some external factors are War, goverment control and polocies, Market slump etc.these may make the implementation of plans very difficult. 7. Less Accurate Planning and prediction for future work may be a awful work for anyone. Business planning is done by fast, simple and accurate techniques. Inefficient techniques of data collection used by planners cause accuracy problems.

8. Over Ambitious Projections Sometimes Business owners and professionals set over ambitious projections then reality. Outline a clear vision. Business planning should be based on real facts and it must show a realistic path to targeted goal. Make it real and alive. 9. Top Level Commitment Everyone know that commitment is essential to success. And true commitment at the top level is the major challenges in business planning process. It gives power to people to make solid decisions within the limitations of planning.

V)

MANUFACTURING AND OPERATIONS

Location of production facilities Access to Markets. Though part of infrastructure, transportation merits special attention. Firms need to move their product, either goods or services, to the market, and they rely on access to different modes of transportation to do this. While transportation has become relatively inexpensive compared to other inputs, and transportation costs have become a less important location factor, access to transportation is still critical. That long-run trend, however, could shift because of decreasing funds to highway construction, increasing congestion, and increasing energy prices. Materials. Firms producing goods, and even firms producing services, need various materials to develop products that they can sell. Some firms need natural resources: a manufacturing sector like lumber needs trees. Or, farther down the line, firms may need intermediate materials: for example, dimensioned lumber. Entrepreneurship. This input to production may be thought of as good management, or even more broadly as a spirit of innovation, optimism, and ambition that distinguishes one firm from another even though most of their other factor inputs may be quite similar. The supply, cost, and quality of any of these factors obviously depend on market factors: on conditions of supply and demand locally, nationally, and even globally. But they also depend on public policy. In general, public policy can affect them through: Regulation. Regulations protect the health and safety of a

community, and help maintain the quality of life. However, simplified bureaucracies and straightforward regulations can help firms react quickly in a competitive marketplace. Taxes. Firms tend to seek locations where they can optimize their after-tax profits. But tax rates are not a primary location factor, they matter only after corporations have made decisions on labor, transportation, raw materials, and capital costs. Within a region, production factors are likely to be similar, so differences in tax levels across communities are more important in the location decision than are differences in tax levels between regions. Labor. Labor is often and increasingly the most important factor of production. Other things equal, firms want productivity, in other words, labor output per dollar. Productivity can decrease if certain types of labor are in short supply, which increases the costs by requiring either more pay to acquire the labor that is available, the recruiting of labor from other areas, or the use of the less productive labor that is available locally. Land. Demand for land depends on the type of firm. Manufacturing firms need more space and tend to prefer suburban locations where land is relatively less expensive and less difficult to develop. Warehousing and distribution firms need to locate close to interstate highways. Local Infrastructure. An important role of government is to increase economic capacity by improving quality and efficiency of infrastructure and facilities, such as roads, bridges, water and sewer systems, airport and cargo facilities, energy systems, and telecommunications. Plans for expansion Expanding your business is an exciting proposition. It means it's doing well and ready to grow to the next level. But often a business needs financial support to implement expansion ideas. A professional business plan that outlines the expansion details can earn the money needed to grow the business. Step 1 Write an executive summary that outlines the business' history, including its successes and accomplishments. It should also cover the business' goals, current facilities and

equipment, and employees. Include information on the proposed expansion, such as a larger facility or new equipment. Step 2 Describe your target market by demographics, such as age, gender and socioeconomic status. Indicate your current marketing tactics and how they are implemented. If you'll be changing your marketing plan with the expansion, outline these changes. Step 3 Provide details about your competition, including differences and similarities in services, target market and marketing tactics. Focus on how your business is unique from others that offer the same type of service or products. Elaborate on how your expansion will set your business apart from the competition. Step 4 Provide information about your management team. Give their names, duties to the business and information about their skills or training as it related to the business. If you'll be taking on new partners or managers in the expansion, provide details on the duties and attributes to the business. Step 5 Outline the daily operations of the business. Describe the day-to-day activities, such as providing services and marketing, as well as who is responsible for assuring these activities are completed. If the daily activities will change with the proposed expansion, provide information on what will be different. Step 6 Provide financial details about the business, including current statements that show expenses and income, and net worth. Outline the costs related to the expansion as well as projected profits over the next year. Step 7 Include an appendix for supplemental materials that don't fit in the other sections. For example, if your expansion is adding on to or building a facility, include blueprints of the proposed project. This section is also used to provide other documents, such as permits. Step 8 Create a professional business plan document to show to bankers and potential investors. Use quality paper and binding, and make sure it's easy to read and free of errors.

METHODS OF GROWTH Small businesses can expand their operations by pursuing any number of avenues. The most commonplace methods by which small companies increase their business are incremental in character, i.e., increasing product inventory or services rendered without making wholesale changes to facilities or other operational components. But usually, after some period of time, businesses that have the capacity and desire to grow will find that other options should be studied. Common routes of small business expansion include:

Joining industry cooperatives to achieve savings in certain common areas of operation, including advertising and purchasing public stock offerings Employee stock ownership plans Growth through acquisition of another existing business (almost always smaller in size) Offering franchise ownership to other entrepreneurs Licensing of intellectual property to third parties Establishment of business agreements with distributorships and/or dealerships Pursuing new marketing routes (such as catalogs)

Branding, Labeling, and Packaging Consumers are concerned with both the product itself and the product's supplementary features, such as packaging, warranties, and service. Branding and labeling products in foreign markets raise new considerations for the U.S. company such as:

Are international brand names important to promote and distinguish a product? Conversely, should local brands or private labels be employed to heighten local interest?

Are the colors used on labels and packages offensive or attractive to the foreign buyer? For example, in some countries certain colors are associated with death.

Can labels be produced in official or customary languages if required by law or practice? Does information on product content and country of origin have to be provided? Are weights and measures stated in the local unit? Must each item be labeled individually? Are local tastes and knowledge considered? A dry cereal box picturing a U.S. athlete may not be as attractive to overseas consumers as the picture of a local sports hero.

A company may find that building international recognition for a brand is expensive. Protection for brand names varies from one country to another. In some developing countries, barriers to the use of foreign brands or trademarks may exist. In other countries, piracy of a company's brand names and counterfeiting of its products are widespread. To protect its products and brand names, a company must comply with local laws on patents, copyrights, and trademarks. A U.S. firm may find it useful to obtain the advice of local lawyers and consultants when appropriate. The U.S. company may also find it advantageous to apply for a patent for its product, as well as applying for an international patent for the countries where it will be conducting business. For additional information about applying for patents, contact the Patent and Trademark Office of the U.S. Department of Commerce at 1-800-786-9199. Servicing Of special concern to foreign consumers is the service the U.S. company provides for its product. Service after the sale is critical for some products. Generally, the more complex the product's technology, the greater the demand for pre-sale and post-sale service. Therefore, there is pressure in some firms to offer simpler, more robust products overseas thereby reducing the need for maintenance and repairs. U.S. suppliers who rely on foreign distributors or agents to provide service backup must take steps to ensure an adequate level of service. These steps include training, periodically checking service quality, and monitoring inventories of spare parts. . VI) PERSONNEL STRATEGIES

TRAINING AND DEVELOPMENT POLICIES CAR RENTAL recognizes that effective training and development offers benefits to the individual and the organization as a whole, which ultimately contribute to the achievement of CAR RENTAL objectives. These benefits include:

higher standards of work performance greater understanding and appreciation of factors affecting work performance sharing of ideas and dissemination of good practice effective management and implementation of change encouragement of team spirit increased motivation and job satisfaction for the individual greater understanding of business.

CAR RENTAL aims to ensure that:

its stated objectives are met each member of staff understands what his or her work role involves each person is developed to enable them to achieve their work objectives staff are prepared and equipped to deal with changes in CAR RENTAL each individual is encouraged to develop his or her potential, both personally and professionally lifelong learning is supported and encouraged for all staff.

As evidence of its seriousness about staff development, CAR RENTAL has made a specific commitment to the Investors in People initiative. This policy applies to all staff. Principles of the training and development policy

CAR RENTAL is committed, through its performance review process, to the creation of training and development opportunities for all staff, and will work to ensure equality of opportunity across all training and development activity.

Equal opportunities will be monitored specifically and reported on annually to the Executive Committee.

CAR RENTAL will monitor and evaluate training and development activity so as to continually learn and improve provision. All staff are expected to participate in the evaluation of training and development.

CAR RENTAL believes that training and development is a continuous process. There is an expectation that staff will keep abreast of developments within their own area of expertise, and all staff are encouraged to undertake development activities throughout their working lives. The CAR RENTAL performance review system allows for specific input from individuals in relation to suggestions for development at least twice a year.

CAR RENTALs approach to the provision of training and development is to consider the development needs identified and how these should be met. This is in line with both Investors in People and CAR RENTALs definition of training and development, and it focuses attention on development activities that add value to the business, enabling CAR RENTAL to meet its strategic objectives.

Training and development makes CAR RENTAL a more effective organization. CAR RENTALs continued success depends upon meeting the objectives set by the Board and agreed with our founders and partners. This will be achieved through staffs that are competent in their roles.

Training and development can be defined as any activity designed to help individuals become more effective at their work by improving, updating or refining their knowledge and skills. It encompasses a range of activities including, for example, involvement in various projects, attendance at training courses, conferences or seminars, visits to other institutions, work shadowing, formal study, coaching and mentoring.

The responsibility for identifying training and development needs and carrying out agreed training and development activity is shared between the line manager and member of staff. CAR RENTAL will encourage and support appropriate training and development. Reasonable time and financial support may be allocated.

Line managers are responsible for providing support and guidance in relation to the training and development of those reporting to them, particularly in relation

to the identification of training and development needs and making sure that appropriate action can be taken as a result.

Each member of staff is expected and encouraged to take ownership and responsibility for their personal development in relation to their work, within the framework of support provided by CAR RENTAL. This includes analyzing ones own skills, aptitudes and potential development needs, as well as having a positive attitude and proactive approach to development.

The training and development policy, and accompanying guidance notes, provide a framework within which decisions can be made and supported with regard to the development of individuals and groups within CAR RENTAL. In addition, please refer to the policies and guidance notes on induction and the performance review process. VII) MARKET RESEARCH

Role of marketing research (MR) The task of marketing research(MR) is to provide management with relevant, accurate, reliable, valid, and current information. Competitive marketing environment and the ever-increasing costs attributed to poor decision making require that marketing research provide sound information. Sound decisions are not based on gut feeling, intuition, or even pure judgment. Marketing managers make numerous strategic and tactical decisions in the process of identifying and satisfying customer needs. They make decisions about potential opportunities, target market selection, market segmentation, planning and implementing marketing programs, marketing performance, and control. These decisions are complicated by interactions between the controllable marketing variables of product, pricing, promotion, and distribution. Further complications are added by uncontrollable environmental factors such as general economic conditions, technology, public policies and laws, political environment, competition, and social and cultural changes. Another factor in this mix is the complexity of consumers. Marketing research helps the marketing manager link the marketing variables with the environment and the consumers. It helps remove some of the uncertainty by providing relevant information about the marketing variables, environment, and consumers. In the absence of relevant

information, consumers' response to marketing programs cannot be predicted reliably or accurately. Ongoing marketing research programs provide information on controllable and non-controllable factors and consumers; this information enhances the effectiveness of decisions made by marketing managers.[5] Traditionally, marketing researchers were responsible for providing the relevant information and marketing decisions were made by the managers. However, the roles are changing and marketing researchers are becoming more involved in decision making, whereas marketing managers are becoming more involved with research. The role of marketing research in managerial decision making is explained further using the framework of the "DECIDE" model: The DECIDE model conceptualizes managerial decision making as a series of six steps. The decision process begins by precisely defining the problem or opportunity, along with the objectives and constraints.[5] Next, the possible decision factors that make up the alternative courses of action (controllable factors) and uncertainties (uncontrollable factors) are enumerated. Then, relevant information on the alternatives and possible outcomes is collected. The next step is to identify and select the best alternative based on chosen criteria or measures of success. Then a detailed plan todevelop and implement the alternative selected is developed and put into effect. Last, the outcome of the decision and the decision process itself are evaluated.

Consumer marketing research, and Business-to-business (B2B) marketing research Or, alternatively, by methodological approach:

Qualitative marketing research, and Quantitative marketing research

Marketing research is "the function that links the consumers, customers, and public to the marketer through information information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs

the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications."[1]Marketing research is the systematic gathering, recording, and analysis of data about issues relating to marketingproducts and services. The goal of marketing research is to identify and assess how changing elements of themarketing mix impacts customer behavior. The term is commonly interchanged with market research; however, expert practitioners may wish to draw a distinction, in thatmarket research is concerned specifically with markets, while marketing research is concerned specifically about marketing processes.[2] Marketing research is often partitioned into two sets of categorical pairs, either by target market: Consumer marketing research is a form of applied sociology that concentrates on understanding the preferences, attitudes, and behaviors of consumers in a market-based economy, and it aims to understand the effects and comparative success of marketing campaigns. The field of consumer marketing research as a statistical science was pioneered by Arthur Nielsen with the founding of theACNielsen Company in 1923.[3] Thus, marketing research may also be described as the systematic and objective identification, collection, analysis, and dissemination of information for the purpose of assisting management in decision making related to the identification and solution of problems and opportunities in marketing. Classification of marketing research Organizations engage in marketing research for two reasons: (1) to identify and (2) solve marketing problems. This distinction serves as a basis for classifying marketing research into problem identification research and problem solving research. Problem identification research is undertaken to help identify problems which are, perhaps, not apparent on the surface and yet exist or are likely to company image, market characteristics, sales analysis, short-range forecasting, long range forecasting, and business trends research. Research of this type provides information about the marketing environment and helps diagnose a problem. For example, The findings of problem solving research are used in making decisions which will solve specific marketing problems.

The Stanford Research Institute, on the other hand, conducts an annual survey of consumers that is used to classify persons into homogeneous groups for segmentation purposes. The National Purchase Diary panel (NPD) maintains the largest diary panel in the India. Standardized services are research studies conducted for different client firms but in a standard way. For example, procedures for measuring advertising effectiveness have been standardized so that the results can be compared across studies and evaluative norms can be established. The Starch Readership Survey is the most widely used service for evaluating print advertisements; another well-known service is the Gallup and Robinson Magazine Impact Studies. These services are also sold on a syndicated basis.

Customized services offer a wide variety of marketing research services

customized to suit a client's specific needs. Each marketing research project is treated uniquely.

Limited-service suppliers specialize in one or a few phases of the marketing

research project. Services offered by such suppliers are classified as field services, coding and data entry, data analysis, analytical services, and branded products. Field services collect data through mail, personal, or telephone interviewing, and firms that specialize in interviewing are called field service organizations. These organizations may range from small proprietary organizations which operate locally to large multinational organizations with WATS line interviewing facilities. Some organizations maintain extensive interviewing facilities across the country for interviewing shoppers in malls.

Coding and data entry services include editing completed questionnaires,

developing a coding scheme, and transcribing the data on to diskettes or magnetic tapes for input into the computer. NRC Data Systems provides such services.

Analytical services include designing and pretesting questionnaires, determining

the best means of collecting data, designing sampling plans, and other aspects of the research design. Some complex marketing research projects require knowledge of sophisticated procedures, including specialized experimental designs, and analytical techniques such as conjoint analysis and multidimensional scaling. This

kind of expertise can be obtained from firms and consultants specializing in analytical services.

Data analysis services are offered by firms, also known as tab houses, that

specialize in computer analysis of quantitative data such as those obtained in large surveys. Initially most data analysis firms supplied only tabulations (frequency counts) and cross tabulations (frequency counts that describe two or more variables simultaneously). With the proliferation of software, many firms now have the capability to analyze their own data, but, data analysis firms are still in demand.

Branded marketing research products and services are specialized data

collection and analysis procedures developed to address specific types of marketing research problems. These procedures are patented, given brand names, and marketed like any other branded product.

marketing research Marketing research techniques come in many forms, including:

Brand attribute research - what are the key traits that describe the brand Brand name testing - what do consumers feel about the names of the products? Commercial eye tracking research - examine advertisements, package designs, Concept testing - to test the acceptance of a concept by target consumers Coolhunting - to make observations and predictions in changes of new or

promise?

websites, etc. by analyzing visual behavior of the consumer

existing cultural trends in areas such as fashion, music, films, television, youth culture and lifestyle

Ad Tracking periodic or continuous in-market research to monitor

a brands performance using measures such as brand awareness, brand preference, and product usage. (Young, 2005)

Advertising Research used to predict copy testing or track the efficacy of

advertisements for any medium, measured by the ads ability to get attention (measured with AttentionTracking), communicate the message, build the brands

image, and motivate the consumer to purchase the product or service. (Young, 2005)

Brand equity research - how favorably do consumers view the brand? Brand association research - what do consumers associate with the brand? Buyer decision processes research - to determine what motivates people to buy Copy testing predicts in-market performance of an ad before it airs by

and what decision-making process they use

analyzing audience levels of attention, brand linkage, motivation, entertainment, and communication, as well as breaking down the ads flow of attention and flow of emotion. (Young, p 213)

Customer satisfaction research - quantitative or qualitative studies that yields an Demand estimation - to determine the approximate level of demand for the Distribution channel audits - to assess distributors and retailers attitudes Internet strategic intelligence - searching for customer opinions in the Internet:

understanding of a customer's satisfaction with a transaction

product

toward a product, brand, or company

chats, forums, web pages, blogs... where people express freely about their experiences with products, becoming strong opinion formers.

Marketing effectiveness and analytics - Building models and measuring results Mystery consumer or mystery shopping - An employee or representative of the

to determine the effectiveness of individual marketing activities.

market research firm anonymously contacts a salesperson and indicates he or she is shopping for a product. The shopper then records the entire experience. This method is often used for quality control or for researching competitors' products.

Positioning research - how does the target market see the brand relative to Price elasticity testing - to determine how sensitive customers are to price Sales forecasting - to determine the expected level of sales given the level of

competitors? - what does the brand stand for?

changes

demand. With respect to other factors like Advertising expenditure, sales promotion etc.

Segmentation research - to determine the demographic, psychographic, and Online panel - a group of individual who accepted to respond to marketing Store audit - to measure the sales of a product or product line at a statistically

behavioural characteristics of potential buyers

research online

selected store sample in order to determine market share, or to determine whether a retail store provides adequate service

Test marketing - a small-scale product launch used to determine the likely Viral Marketing Research - refers to marketing research designed to estimate

acceptance of the product when it is introduced into a wider market

the probability that specific communications will be transmitted throughout an individual's Social Network. Estimates of Social Networking Potential (SNP) are combined with estimates of selling effectiveness to estimate ROI on specific combinations of messages and media. All of these forms of marketing research can be classified as either problemidentification research or as problem-solving research. There are two main sources of data - primary and secondary. Primary research is conducted from scratch. It is original and collected to solve the problem in hand. Secondary research already exists since it has been collected for other purposes. It is conducted on data published previously and usually by someone else. Secondary research costs far less than primary research, but seldom comes in a form that exactly meets the needs of the researcher. A similar distinction exists between exploratory research and conclusive research. Exploratory research provides insights into and comprehension of an issue or situation. It should draw definitive conclusions only with extreme caution. Conclusive research draws conclusions: the results of the study can be generalized to the whole population. Exploratory research is conducted to explore a problem to get some basic idea about the solution at the preliminary stages of research. It may serve as the input to conclusive research. Exploratory research information is collected by focus group interviews, reviewing literature or books, discussing with experts, etc. This is unstructured and qualitative in nature. If a secondary source of data is unable to serve the purpose, a convenience sample of small size can be collected. Conclusive research is conducted to

draw some conclusion about the problem. It is essentially, structured and quantitative research, and the output of this research is the input to management information systems (MIS). Exploratory research is also conducted to simplify the findings of the conclusive or descriptive research, if the findings are very hard to interpret for the marketing managers.

VIII) MARKETING PLAN The 'four Ps' consist of the following:

Product - A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible good or an intangible service. Intangible products are service based like the tourism industry & the Car Rental industry or codes-based products like cellphone load and credits. Tangible products are those that can be felt physically. Typical examples of mass-produced, tangible objects are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Every product is subject to a life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales falls. Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product moves through each stage.[1] The marketer must also consider the product mix. Marketers can expand the current product mix by increasing a certain product line's depth or by increase the number of product lines. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company's resources and how to configure the product mix so that each product complements the other. The marketer must also consider product development strategies. [1]

Price The price is the amount a customer pays for the product. The price is

very important as it determines the company's profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on

the price elasticity of the product, often, it will affect thedemand and sales as well. The marketer should set a price that complements the other elements of the marketing mix.[1] When setting a price, the marketer must be aware of the customer perceived value for the product. Three basic pricing strategies are: market skimming pricing, marketing penetration pricing and neutral pricing. The 'reference value' (where the consumer refers to the prices of competing products) and the 'differential value' (the consumer's view of this product's attributes versus the attributes of other products) must be taken into account.[1]

Promotion - represents all of the methods of communication that a marketer

may use to provide information to different parties about the product. Promotion comprises elements such as:advertising, public relations, personal selling and sales promotion. [1] Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media and billboards. Public relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and public relations (see 'product' above).[1]

Place - refers to providing the product at a place which is convenient for

consumers to access. Place is synonymous with distribution. Various strategies such as intensive distribution, selective distribution, exclusive distribution, franchising can be used by the marketer to complement the other aspects of the marketing mix.[1] STP ANALYSIS OF THE COMPANY Segmentation Any industry has segmented its customer in the following ways:-

 Provide required product to meet targeted customers' needs and preferences -- Delivering up to the expectations of the targeted segment. Grouping customers based on their needs and preferences -Customers with similar needs and preferences are included in this segment. Understanding needs and preferences of consumers Targeting the segment that the company can best meet the needs and preferences of - The Company targets the customers, of which it can meet the needs and preferences. I.e. customer needs higherstrength or low price. Branding the commodity -- Though being a commodity product, branding is important for a company.

Targeting It targets the competitive companies like MNCs. It Targets all Indian customers & communities. Its customer base represents the masses of India. The company targets on the important sources like shops in the country It targets an individual (Retail Marketing)

Positioning A good brand positioning help guide marketing strategy by clarifying the brands essence but goals it help the consumer achieve and how it does so in a unique way. The result of the positioning is the successful creation of a customer focused value proposition, a cogent reason why the target market should buy the product. Market targeting Through segmentation, a firm divides the market into many segments. But all these segments need not form its target market. Target market signifies only those segments that it wants to adopt as its market.

Market targeting simply means choosing ones target market. It needs to be clarified at the onset that marketing targeting is not synonymous with market segmentation. Segmentation is actually the prelude to target market selection. One has to carry out several tasks beside segmentation before choosing the target market.

IX)

FINANCIAL DECISIONS

The purchase of stocks of raw materials and components to allow production to start The wages and salaries of the first employees to join the business (who may be needed before any goods or services are actually sold) To provide financial cover whilst the business waits for customers to pay The main ways in which an entrepreneur can find finance for a new business are: Own money Bank loans Bank overdraft Money from friends Grant assistance from government bodies These types of finance can be split into INTERNAL and EXTERNAL sources of finance. Internal sources of finance are generated from the business itself (e.g. cash from sales) and external sources of finance from outside the business (e.g. a bank loan). The business can also split the types of finance into categories relating to length of time the money is needed for Short-term: bank overdraft Medium term: bank loan; lease; hire purchase; government grants Long term: bank loan; mortgage; share issue (for limited companies); debenture PRIVATE FUNDING Private funding is from a particular company who has decided to fund a project or an event. You see that with athletes and race car drivers a lot. Those private companies are supporting them. The person may have more than one company or person supporting

them at a time and usually those companies advertise someway like with their names on the cars. Public funding is when everyone funds a project or person for example when they do the charity fund raisers to collect enough money to put up the city playground or put in a swimming pool for the city. The city will hold events to collect money from all the city people. The lottery is one of the ways that some states due public funding. So much proceeds collected go to education, etc. The entrepreneur will need to finance to the business. This means they will need to find money to pay for: The purchase of plant & machinery, office equipment etc Renting or buying premises and offices (e.g. the first 3 months rent may need to be paid in advance) Essential business services such as insurance

Business Plan
A business plan sets out how a business is going to achieve its aims and objectives. It is extremely useful for a new business to use a plan because it can be used to show potential investors how their money is going to be spent. A business plan will probably contain the following elements: Statement of aims and objectives Description of market the business is selling to Main competitors (how will they respond to a new competitor?) Production and sales forecasts Equipment needed Distribution plan for how to get product to customers In the plan, great care should be taken to estimate and forecast how the cash will come into and leave the business in the early weeks and months.

This is because in the early days of setting up a business, finance is hardest to manage. It is uncertain how easy it will be to find customers and will they buy the product or service at the price that is being asked? The business will be incurring significant start-up costs which will eat into the available funds.

X)

RISK IN BUSINESS

Operational risks Operational risks are associated with your business' operational and administrative procedures. These include: recruitment supply chain transportation accounting controls IT systems regulations board composition You should examine these operations in turn, prioritise the risks and make necessary provisions. For example, if you rely on one supplier for a key component you could source other suppliers to help you minimise the risk. IT risk and data protection are increasingly important to business. If hackers break into your IT systems, they could steal valuable data and even money from your bank account which at best would be embarrassing and at worst could put you out of business. A secure IT system employing encryption will safeguard commercial and customer information. See our guide on privacy and data protection in direct marketing for advice on dealing with IT risks. Compliance risk Compliance risks are those associated with the need to comply with laws and regulations. They also apply to the need to act in a manner which investors and customers expect, for example, by ensuring proper corporate governance.

You may need to consider whether employment or health and safety legislation could add to your overheads or force changes in your established ways of working. For advice on how to manage health and safety risks, read our guide on how to set up a health and safety management system and download advice on managing health and safety from the Institute of Occupational Safety and Health (IOSH) website (PDF, 215K) - Opens in a new window. You may also want to consider legislative risks to your business. You should ask yourself whether the products or services you offer could be made less marketable by legislation or taxation - as has happened with tobacco and asbestos products. For example, concerns about the increase in obesity may prompt tougher food labelling regulations, which may push up costs or reduce the appeal of certain types of food. Other risks include: environmental risks, including natural disasters employee risk management, such as maintaining sufficient staff numbers and cover, employee safety and up-to-date skills political and economic instability in any foreign markets you export goods to health and safety risks commercial risks, including the failure of key suppliers or customers Managing risk The types of risk your business faces The main categories of risk to consider are: strategic, for example a competitor coming on to the market compliance, for example responding to the introduction of new health and safety legislation financial, for example non-payment by a customer or increased interest charges on a business loan operational, for example the breakdown or theft of key equipment

These categories are not rigid and some parts of your business may fall into more than one category. The risks attached to data protection, for example, could be considered when reviewing both your operations and your business' compliance. Strategic and compliance risks Strategic risks are those risks associated with operating in a particular industry. They include risks arising from: merger and acquisition activity changes among customers or in demand industry changes research and development For example you might consider the strategic risks of the possibility of a US company buying one of your European competitors. This could give the US company a distribution arm in the UK. In this situation you might want to consider: whether there are any US companies which have the cash/share price to do this whether there are any European competitors who could be a takeover target, perhaps because of financial difficulties whether the US company would lower prices or invest more in research and development Where there's a strong possibility of this happening, you should prepare some sort of response.

Financial and operational risks Financial risks are associated with your business' financial structure and systems and the transactions your business makes. Identifying financial risk involves examining your daily financial operations, especially cashflow. If your business is too dependent on a single customer and they became unable to pay you, this could have serious implications for your business' viability. See our guide on how to identify potential cashflow problems. You might examine: how you extend credit to customers who owes you money how you can recover it insurance to cover large or doubtful debts For more information on dealing with customer debt see our guide on how to recover debt through court. Financial risk assessment should take into account external factors such as interest rates and foreign exchange rates. Rate changes will affect your debt repayments and the competitiveness of your goods and services compared with those produced abroad. If you are involved in international trade, you will be exposed to even greater financial risks. It can be more difficult to assess the creditworthiness of an overseas client and to recoup unpaid debts. You may also be adversely affected by movements in the currency markets. In addition, depending on the trading terms you choose, it may take longer to receive payment when compared with a UK client. For more information on managing the financial implications of international trade see our guides on getting paid when selling overseas and foreign currency and exchange risks.

How to evaluate risks Risk evaluation allows you to determine the significance of risks to the business and decide to accept the specific risk or take action to prevent or minimise it. To evaluate risks, it is worthwhile ranking these risks once you have identified them. This can be done by considering the consequence and probability of each risk. Many businesses find that assessing consequence and probability as high, medium or low is adequate for their needs. These can then be compared with your business plan - to determine which risks may affect your objectives - and evaluated in the light of legal requirements, costs and investor concerns. In some cases, the cost of mitigating a potential risk may be so high that doing nothing makes more business sense. There are some tools you can use to help evaluate risks. You can plot on a risk map the significance and likelihood of the risk occurring. Each risk is rated on a scale of one to ten. If a risk is rated ten this means it is of major importance to the company. One is the least significant. The map allows you to visualise risks in relation to each other, gauge their extent and plan what type of controls should be implemented to mitigate the risks. See an example FIRM risk scorecard to determine the level of risk you are evaluating Opens in a new window. Prioritising risks, however you do this, allows you to direct time and money toward the most important risks. You can put systems and controls in place to deal with the consequences of an event. This could involve defining a decision process and escalation procedures that your company would follow if an event occurred.

Use preventative measures for business continuity Risk management involves putting processes, methods and tools in place to deal with the consequences of events you have identified as significant threats for your business. This could be something as simple as setting aside financial reserves to ease cashflow problems if they arise or ensuring effective computer backup and IT support procedures for dealing with a systems failure. Programmes which deal with threats identified during risk assessment are often referred to as business continuity plans. These set out what you should do if a certain event happens, for example, if a fire destroys your office. You can't avoid all risk, but business continuity plans can minimise the disruption to your business. Risk assessments will change as your business grows or as a result of internal or external changes. This means that the processes you have put in place to manage your business risks should be regularly reviewed. Such reviews will identify improvements to the processes and equally they can indicate when a process is no longer necessary. See our guide on managing the risks in your business. How to manage risks There are four ways of dealing with, or managing, each risk that you have identified. You can: accept it transfer it reduce it eliminate it For example, you may decide to accept a risk because the cost of eliminating it completely is too high. You might decide to transfer the risk, which is typically done with insurance. Or you may be able to reduce the risk by introducing new safety measures or eliminate it completely by changing the way you produce your product.

When you have evaluated and agreed on the actions and procedures to reduce the risk, these measures need to be put in place. Risk management is not a one-off exercise. Continuous monitoring and reviewing are crucial for the success of your risk management approach. Such monitoring ensures that risks have been correctly identified and assessed and appropriate controls put in place. It is also a way to learn from experience and make improvements to your risk management approach. All of this can be formalised in a risk management policy, setting out your business' approach to and appetite for risk and its approach to risk management. Risk management will be even more effective if you clearly assign responsibility for it to chosen employees. It is also a good idea to get commitment to risk management at the board level. Good risk management can improve the quality and returns of your business. Choose the right insurance to protect against losses Insurance will not reduce your business' risks but you can use it as a financial tool to protect against losses associated with some risks. This means that in the event of a loss you will have some financial recompense. This can be crucial for your business' survival in the event of, say, a fire which destroys a factory. Insurance companies increasingly want evidence that risk is being managed. Before they will provide cover, they want evidence of the effective operation of processes in place to minimise the likelihood of a claim. You can ask your insurance adviser for advice on appropriate processes - see our guide on how to choose an insurance adviser and present your risk. Insurance products You can use a business interruption policy, for example, to insure against loss of profit and higher overheads resulting from, say, damaged machinery. Employers' liability

cover - required by law - enables businesses to meet the costs of compensation and legal fees for employees who are injured or made ill at work through the fault of the employer. You may also want to consider: products liability insurance key man insurance group life assurance Liability insurance - employers' liability, public and products liability insurance - is designed to pay any compensation and legal costs that arise from negligence or breach of duty. For more information, see our guide on liability insurance. Key man insurance is designed to cover you for the financial costs of losing key personnel. Group life assurance is provided by employers as part of a benefits package and pays out a lump sum to an employee's family should the employee die. See our guide on how to insure your business - people, life and health. Here's how risk assessment helped my business Wendy Shand started her online business Tots to Travel, which promotes and books holiday accommodation that's as safe as possible for children, in 2006. Carrying out risk assessments on each holiday home is vital to protect the brand, but Wendy realises that assessing risks in other parts of the business is key, too. Here she explains how it has helped her firm. What I did "Tots to Travel resulted from a holiday with our children in France. We rented a house which was lovely, but it didn't have things we took for granted at home such as stair gates. I felt I could do better."

Risk assessing properties "Tots to Travel is currently focused on France and Italy, with Spain, Portugal, Turkey and the UK being added shortly. We risk assess in terms of safety and we insist on vetting properties in person because there is a lot tied up in a holiday - not just financially, but emotionally as well. "We have a rigorous list of safety criteria that we worked out with the Child Accident Prevention Trust. Some houses in France don't have bannisters, for example. If the owner is not prepared to make changes to meet our requirements, then it's not in our best interest to go and visit that property. "Careful risk assessment means we are able to make better decisions for example, in France there is strict legislation that says pools need to be alarmed, fenced or covered so we do not visit properties unless they meet these criteria. "Elsewhere where legislation is not so tight, we have to look more creatively at pool security. Not getting it right is a risk to our brand, dealing with complaints is timeconsuming and emotionally draining, and an accident would be even worse. "Spending time assessing our potential risks has also put us ahead of the competition. It's good for business, as naturally parents want to go on a holiday where their children are as safe as possible - so they come to us." Assessing other risks "Without risk assessment, an accident, litigation case or the loss of all our data could blindside us - financially, emotionally and practically. "We've considered various risks - things like cashflow, what happens if a member of staff leaves, if someone decides to sue us, or if our computers go down. We have put in place a basic, written, action plan for each so that if they happen it is not so much of a crisis. "If our website and database were lost, it would represent three years' worth of work. Our technology is so vital that our systems are backed up three times. We have a back-

up server in the house and one in the office, and as a third precaution there is a daily back-up in a vault in Canary Wharf. "We also look carefully at our insurance policies annually, assess where our risk is and make sure that we are covered for those eventualities. "We have a PR contingency plan, too, in case something awful goes wrong - for example, if a child goes missing. We have listed the documents we will need to provide to the press so we can react quickly and efficiently." What I'd do differently Assess risks earlier "I would have looked at what could possibly go wrong sooner. When we first had a member of staff leave it floored us for a while because we didn't have a response."

XI)

IMPLEMENTATIN SCHEDULE

Even the most well-thought-out business plan is just a stack of paper if it isnt coupled with a plan for implementation. This is the portion of the business plan where youll clarify objectives, assign tasks with deadlines, and chart your progress in reaching goals and milestones. Here are some guidelines for successful business plan implementation: Objectives: Your objectives should be crystal clear and specifically spelled out, since youll use them as a building block for the rest of the implementation plan. For example, lets assume your startup is a small consulting firm. Your objective should be tough but reachable, and could read something like this:

Secure office space and be open for business in three months. Sign three clients within first three months of operations. Sign 10 clients within first year.

Tasks: This part details what must be accomplished to achieve your objectives. Include a task manager for each step, so that roles are clearly defined and there is accountability. As you enumerate tasks and assignments, these descriptions should be plainly and generally stated; dont get into a step-by-step, micromanaged explanation of

how the tasks will be carried out. Emphasize the expected results associated with these tasks. Continuing with the above example, the tasks section might read like this:

Secure office space real estate agent Obtain licenses and permits you Set up office phones and computers office manager Begin recruiting clients sales manager Create marketing collateral marketing manager Solicit referrals from clients relationship manager

This list is obviously very specific to this particular firm and is a brief illustration. You may wish to go into more details, assigning tasks to yourself such as obtaining financing, networking with prospective clients, etc. Time allocation: Each task should be paired with an appropriate time frame for completion. You should be aggressive but reasonable with your time allocation in order to ensure not just completion but competent work. For assistance in framing this timescale, use a program such as Microsoft Project, or just create your own Gantt chart a helpful tool that shows how long it will take to complete different tasks and in what order the tasks should be finished. Progress: You or a member of your management team needs to be in charge of monitoring each tasks progress and the completion percentage of each objective. When delays occur, try to get to the root of the problem. Did the person responsible drop the ball? Did he or she have too many responsibilities to handle? Did a third party, such as a supplier or the bank, fail to hold up its end of a deal? Adjust your Gantt chart appropriately to account for the delay, and make a note of the previous deadline and the reason it was missed. While the above steps may seem like overkill, the early days of a startup are critically important; its a time when good management patterns are set and also probably a lean era when revenue has yet to start rolling in. The more efficiently you start implementing your business plan, the more likely it is that you will survive this early period.

FINDINGS
The company has weak organizational climate The organization has clearly defined responsibilities to all its employees There is a negative effect found of the organizational policies. This might appear to be contradictory to the general management practice. But this might be interpreted as indicating as various new initiatives are being taken and new policies made, this is taking its toll on the affected people or work areas. This may also mean that the staff is not fully identifying with these changes. The employees are very much satisfied with the work environment provided to the employees. The organization was capable of providing work-life balance to its employees.

RECOMMENDATIONS
Management can improve the satisfaction of workers by enng impartiality and fairness in the disciplinary action proceedings It should also share information in more open way with staff and reach out to the staff members by making the communication channels more effective. Encouragement by superior and superiors owning up the development of subordinates. The management should focus on imparting training to develop leadership skills among the employees. The management should benchmark the pay and benefits with the competitive industries. If MNCs wants to make an immediate impact on the staff satisfaction, it has to ensure: Retaining talented people Any festival should witness involvement of maximum employees across strata. Communication by the management needs to reach out to the staff at all levels.

BIBLIOGRAPHY WEBSITES

www.google.com www.wikipedia.com www.scribd.com

MAGAZINE
India today The outlook Business world The times of India Hindustan times