B.st Plan Final

7/31/2019 B.st Plan Final

1/39

Business PlanBusiness Plan


2/39

Table of ContentsTable of Contents

1.1. Table of contents.Table of contents.

2.2. Executive summary.Executive summary.

3.3. Mission Statement & Objectives.Mission Statement & Objectives.

4.4. Industry Analysis & Forecast.Industry Analysis & Forecast.

5.5. Company descriptionCompany description

6.6. ProductsProducts

7.7. MarketingMarketing

8.8. Competitor AnalysisCompetitor Analysis

9.9. Operation PlanOperation Plan10.10. Management & OrganisationManagement & Organisation

11.11. FinanceFinance

12.12. AppendixAppendix


3/39

Bakers CornerBakers Corner


4/39

Executive SummaryExecutive Summary

Bakers Corner is a new organic bakery aimed at providingBakers Corner is a new organic bakery aimed at providing

organic baked goods in the city of Abu Dhabi aiming theorganic baked goods in the city of Abu Dhabi aiming the

common consumers of bakery products and as well the vegancommon consumers of bakery products and as well the vegan

group of consumers.group of consumers.

The products will be organic in nature and low on white sugerThe products will be organic in nature and low on white suger

and calories.and calories.

Being organic in products, the business has an upward trendBeing organic in products, the business has an upward trend

and bright future in the food industry as people are gettingand bright future in the food industry as people are getting

health conscious.health conscious.

The proprietors the business are:The proprietors the business are:

1. Aamir1. Aamir

2. Deepali2. Deepali

3. Vivek3. Vivek

4. Zohal4. Zohal


5/39

Bakers Corner aims to offer high qualityBakers Corner aims to offer high qualitybakery products at competitive prices tobakery products at competitive prices to

meet the demands of the local marketmeet the demands of the local market

and the residents living near by .We seekand the residents living near by .We seek

fair and responsible profit, enough to keepfair and responsible profit, enough to keepthe company financially healthy for threthe company financially healthy for thre

long term and to fairly compensate eachlong term and to fairly compensate each

partner for their contributions.partner for their contributions.

Mission Statement


6/39

ObjectivesObj

ectives

To establish a working store front for BakersTo establish a working store front for Bakers

Corner.Corner.

To develop a strong presence in the community toTo develop a strong presence in the community to

support sales goal.support sales goal.

To develop a proper full menus by the end of theTo develop a proper full menus by the end of the

second quarter.second quarter.


7/39

Industry AnalysisIndustry Analysis

Industry DefinitionIndustry Definition

According to the North American Industry Classification System (According to the North American Industry Classification System (NAISCNAISC31183118 )is the code assigned to the food manufacturing industry.)is the code assigned to the food manufacturing industry.

Current TrendsCurrent Trends

27% growth in the food manufacturing industry .27% growth in the food manufacturing industry . Quick FixQuick Fix Drive & GoDrive & Go Inherently healthyInherently healthy Farm-FriendlyFarm-Friendly Layering of flavorsLayering of flavors

These trends are promising, so long as the food industry remains willing toThese trends are promising, so long as the food industry remains willing tooffer convenience without compromising on the demand for healthier food.offer convenience without compromising on the demand for healthier food.Fads will come and go.Fads will come and go.


8/39

Industry ForecastIndustry Forecast 37% of the companies are growing currently .37% of the companies are growing currently . 16% of the companies expect 20% growth in the industry by the end16% of the companies expect 20% growth in the industry by the endof 2010.of 2010. 68% of the companies anticipate their production to increase by 3%.68% of the companies anticipate their production to increase by 3%. 72 % of the companies are expected to expand their business.72 % of the companies are expected to expand their business. 35% of the companies are expected to increase salaries.35% of the companies are expected to increase salaries.

Future OutlookFuture Outlook

An astonishing 68 percent of respondents project some increase inAn astonishing 68 percent of respondents project some increase inproduction next year; 16 percent foresee increases of 20 percent orproduction next year; 16 percent foresee increases of 20 percent or

more.more.Only 8.6 percent expect a decrease. Significant majorities predictOnly 8.6 percent expect a decrease. Significant majorities predictmaintaining or increasing staffing levels, production lines and salaries.maintaining or increasing staffing levels, production lines and salaries.Two-thirds feel optimistic going into the New Year.Two-thirds feel optimistic going into the New Year.


9/39

Company DescriptionCompany Description Bakers Corner is a new organic bakery engaged in the foodBakers Corner is a new organic bakery engaged in the food

manufacturing industry.manufacturing industry.

The bakery is operated in the city of Abu Dhabi on Hamdan StreetThe bakery is operated in the city of Abu Dhabi on Hamdan Streetbehind lulu shopping center.behind lulu shopping center.

Bakers Corner is partnership business by 4 partners (with) 1 localBakers Corner is partnership business by 4 partners (with) 1 local

sponsor as per the UAE law.sponsor as per the UAE law.

Bakers Corner currently has 7 employees with 4 partners who takeBakers Corner currently has 7 employees with 4 partners who takepart in the day to day operations of the business and 3 assistants.part in the day to day operations of the business and 3 assistants.

Bakers Corner targets the local regular customers by serving bakedBakers Corner targets the local regular customers by serving baked

goods made up of organic ingredients.goods made up of organic ingredients.

Bakers Corner also gives special preference to the Vegan GroupBakers Corner also gives special preference to the Vegan Groupby providing egg less bakery items.by providing egg less bakery items.


10/39

ProductsProducts

Bakers Corner provides organic non-gluten bread & baked goodsBakers Corner provides organic non-gluten bread & baked goods

to its customer. Special consideration is given to the Vegan groupto its customer. Special consideration is given to the Vegan group

by providing egg-less cakes & pastries.by providing egg-less cakes & pastries.

Example:Example:

BreadBread

CakesCakes

CroissantsCroissants

MuffinsMuffins

Egg-less cakes, pastries & muffins.Egg-less cakes, pastries & muffins.


11/39

ItemsItems Price (AED)Price (AED)

1. Bread1. Bread 5.505.50

2. Cake2. Cake 8080

3. Croissants3. Croissants 6.506.50

4. Muffins4. Muffins 1212

5. Pastries5. Pastries 99


12/39

Marketing PlanMarketing Plan

Target MarketTarget Market

Our target market consists of the regular customers of all age andOur target market consists of the regular customers of all age and

classes.classes.

Market SegmentationMarket Segmentation

Bakers Corner uses behavioral segmentation to target the market.Bakers Corner uses behavioral segmentation to target the market.

We target 3 groups:We target 3 groups:

Health conscious people.Health conscious people.

VegansVegans


13/39

Targeting StrategyTargeting Strategy

Bakers Corner uses the mass marketing strategy toBakers Corner uses the mass marketing strategy todevelop sound customer base & promote theirdevelop sound customer base & promote theirproducts.products.

Positioning StrategyPositioning Strategy

Bakers Corner uses the product feature and benefitBakers Corner uses the product feature and benefitpositioning strategy.positioning strategy.


14/39

Marketing MixMarketing Mix

ProductProduct

Bakers Corner serves organic & non gluten baked goods &Bakers Corner serves organic & non gluten baked goods &

breads to its customers especially targeting the health consciousbreads to its customers especially targeting the health conscious& vegan groups& vegan groups..

StrengthsStrengths

1.1. Organic & gluten free.Organic & gluten free.2.2. Less fatteningLess fattening

3.3. Less cholesterolLess cholesterol

4.4. Better taste.Better taste.

5.5. Energy LevelEnergy Level


15/39

WeaknessWeakness

Organic ingredients are costly.Organic ingredients are costly.

Less suppliers of spelt flour.Less suppliers of spelt flour.

People might not believe/aware in the concept of organic andPeople might not believe/aware in the concept of organic and

gluten free.gluten free.


16/39

PricingPricing

Bakers corner uses the competition based pricing in which theBakers corner uses the competition based pricing in which thebakery follows the market penetration method.bakery follows the market penetration method.


17/39

PlacePlace

Bakers Corner is located in the city of Abu Dhabi on HamdanBakers Corner is located in the city of Abu Dhabi on Hamdan

Street behind UBL bank.Street behind UBL bank.

Reasons for opting Hamdan Street:Reasons for opting Hamdan Street:

1.1. Center hub of the city.Center hub of the city.2.2. Prime location of all offices, shopping & banks.Prime location of all offices, shopping & banks.

3.3. Major residential area.Major residential area.

4.4. Tourist visits.Tourist visits.


18/39

DistributionDistribution

Bakers Corner is a retail bakery. All its products are availableBakers Corner is a retail bakery. All its products are available

only at the physical store of Bakers Corner.only at the physical store of Bakers Corner.

Distribution channel used by the bakery:Distribution channel used by the bakery:

Farmer

Broker

Wholesaler

Retailer

Consumer


19/39

TransportationTransportation

Bakers Corner uses the road route to transport its raw materials fromBakers Corner uses the road route to transport its raw materials from

Dubai to Abu Dhabi.Dubai to Abu Dhabi.

PromotionPromotion

Bakers Corner uses the product advertisements to promote its product.Bakers Corner uses the product advertisements to promote its product.

We use the following two mediums :We use the following two mediums :

1.1. BrochureBrochure

2.2. Newspaper advertising.Newspaper advertising.


20/39

Competitors AnalysisCompetitors Analysis

Major Competitors are:Major Competitors are:

1.1. Al- Yousef BakeryAl- Yousef Bakery

Hamdan StreetHamdan Street

Behind BHSBehind BHS

StrengthsStrengths

LocationLocation

Free delivery servicesFree delivery services

Loyal Customer baseLoyal Customer base..


21/39

WeaknessWeakness

Language BarrierLanguage Barrier No snack items for vegansNo snack items for vegans

Less variety in cakes.Less variety in cakes.


22/39

2. Le Brioche2. Le Brioche

Opp. Khalifa CooperativeOpp. Khalifa Cooperative

Khalifa StreetKhalifa Street

StrengthsStrengths

Well established French BakeryWell established French Bakery Good reputationGood reputation Provides hot & cold varietyProvides hot & cold variety

All baked good of French typeAll baked good of French type


23/39

WeaknessWeakness

Expensive.Expensive.

Closed on weekends.Closed on weekends.


24/39

3. Al - Jamal Grocery3. Al - Jamal Grocery

Indirect Competitor.Indirect Competitor.

Acts as a retailer by selling bakery items of other bakeries.Acts as a retailer by selling bakery items of other bakeries.


25/39

Competitors AdvantageCompetitors Advantage

1.1. First Organic & gluten free bakery in theFirst Organic & gluten free bakery in thecity of Abu Dhabi.city of Abu Dhabi.

2.2. Fully organic bakery.Fully organic bakery.

3.3. Produces gluten free goods.Produces gluten free goods.

4.4. Severs the vegan group too.Severs the vegan group too.

5.5. Less calories product.Less calories product.

6.6. Location.Location.

7.7. Free Delivery Services.Free Delivery Services.

8.8. Ready to cater for parties & weddings ofReady to cater for parties & weddings ofany typeany type..


26/39

Operational PlanOperational Plan

LocationLocation

Reasons for choosing Abu Dhabi:Reasons for choosing Abu Dhabi:

1.1.

Robust Economy.Robust Economy.2.2. Political Stability.Political Stability.

3.3. Tax Free business environment.Tax Free business environment.

4.4. Proximity to growth regions.Proximity to growth regions.

5.5. Infrastructures.Infrastructures.

6.6. Transparent government services.Transparent government services.

7.7. Relative low cost of doing business.Relative low cost of doing business.

Bakers Corner is going to rent a 50 sq.mtrs land area forBakers Corner is going to rent a 50 sq.mtrs land area forDhs1,05,000.Dhs1,05,000.


27/39

SuppliersSuppliers

Flour:Flour:

Satya Chandra Flour Mills Ltd: Their factory located in Dubai, U.A.ESatya Chandra Flour Mills Ltd: Their factory located in Dubai, U.A.Eoffer excellent Organic, and Chemical-free grains.offer excellent Organic, and Chemical-free grains.

Chocolate:Chocolate:

Mars Company: Global company located in Jebel Ali free zone thatMars Company: Global company located in Jebel Ali free zone thatsupplies chocolate, cocoa and other related products.supplies chocolate, cocoa and other related products.

Sugar:Sugar:

Al Khaleej Sugar Company: A company situated in Dubai thatAl Khaleej Sugar Company: A company situated in Dubai thatprovides wholesale supplies to its customers. It is a company that isprovides wholesale supplies to its customers. It is a company that isunique in the world of sugar business.unique in the world of sugar business.

Butter & other dairy products:Butter & other dairyproducts:

Lurpak dairy products: Supplies customers with dairy products suchLurpak dairy products: Supplies customers with dairy products suchas butter, whipped cream, milk etc at a reasonable price.as butter, whipped cream, milk etc at a reasonable price.

Fruits:Fruits:Fresh Fruits Company: Their factory is located in Deira, DubaiFresh Fruits Company: Their factory is located in Deira, Dubaioffering naturally grown fruits which can be purchased in bulk at aoffering naturally grown fruits which can be purchased in bulk at areasonable price.reasonable price.

Nuts & Raisins:Nuts & Raisins:

Red Flower Ltd: Factory is situated in New Jersey, USA that offersRed Flower Ltd: Factory is situated in New Jersey, USA that offershigh quality nuts, seeds, dried fruits and other specialty items.high quality nuts, seeds, dried fruits and other specialty items.Supplies can be obtained through regular shipments.Supplies can be obtained through regular shipments.


28/39

GPI spelt flour company : Suppliers of flour, spelt flour, rice & otherGPI spelt flour company : Suppliers of flour, spelt flour, rice & otherproductsproducts

Devikaa International : Suppliers of instant yeast.Devikaa International : Suppliers of instant yeast.

TransportationTransportation

Bakers Corner uses the road routes to transport goods.Bakers Corner uses the road routes to transport goods.

Legal EnvironmentLegal Environment

1.1. Trade License.Trade License.

2.2. Abu Dhabi food control certificate.Abu Dhabi food control certificate.

3.3. Safety Assessment by Abu Dhabi Municipality.Safety Assessment by Abu Dhabi Municipality.

4.4. Food Transport Authority.Food Transport Authority.5.5. General Partnership Contract.General Partnership Contract.


29/39

PersonnelPersonnel

Bakers Corner has a total of 7 employees; 4 being the partners & remainingBakers Corner has a total of 7 employees; 4 being the partners & remaining3 being hired.3 being hired.

Skilled EmployeesSkilled Employees

None of them require training as all are well experienced and are specializedNone of them require training as all are well experienced and are specialized

in the food industry.in the food industry.

Each of the 3 employees gets a salary of AED 2000.Each of the 3 employees gets a salary of AED 2000.


30/39

Management & OrganizationManagement & Organization

Aamir, Deepali, Vivek & Zohal are 4 business partners who wish to open aAamir, Deepali, Vivek & Zohal are 4 business partners who wish to open abakery in the city of Abu Dhabi. Capital is contributed from savings and nobakery in the city of Abu Dhabi. Capital is contributed from savings and no

loan is taken. All the partners have interest in the Food industry & throughloan is taken. All the partners have interest in the Food industry & through

this business they are going to pursuer their interest as well as earnthis business they are going to pursuer their interest as well as earn

revenue.revenue.

All the partners hold an equal share of 25% in profits.All the partners hold an equal share of 25% in profits.

The Internal Management consists of:The Internal Management consists of:

1. Production: Aamir & Deepali.1. Production: Aamir & Deepali.

2. Marketing: Zohal.2. Marketing: Zohal.

3. Finance: Aamir, Deepali, Vivek & Zohal.3. Finance: Aamir, Deepali, Vivek & Zohal.

4. Accounts: Vivek.4. Accounts: Vivek.


31/39

The Role/Position of each member are:The Role/Position of each member are:

Aamir :Aamir : Senior Chef - Cakes & Pateries.Senior Chef - Cakes & Pateries.

Lisa :Lisa : Assistant chef- Cakes & PateriesAssistant chef- Cakes & Pateries..

Deepali :Deepali : Senior Chef - Bread & CookiesSenior Chef - Bread & Cookies.. Simon :Simon :Assistant Chef- Bread & Cookies.Assistant Chef- Bread & Cookies.

Vivek :Vivek : Senior Accountant.Senior Accountant.

Mathew :Mathew : Assitant Accountant.Assitant Accountant.

Zohal :Zohal : Inventory Control ManagerInventory Control Manager..


32/39

Salary StructureSalaryStructure

S. NoS. No NameName Salary (AED)Salary(AED)

1.1. AamirAamir (25% of Revenue(25% of RevenueEarned)Earned)

2.2. DeepaliDeepali (25% of Revenue(25% of RevenueEarned)Earned)

3.3. LisaLisa 20002000

4.4. MathewMathew 20002000

5.5. SimonSimon 20002000

6.6. VivekVivek (25% of Revenue(25% of RevenueEarned)Earned)

7.7. ZohalZohal (25% of Revenue(25% of RevenueEarned)Earned)

Total:-Total:- 60006000


33/39

FinanceFinance


34/39


35/39


36/39

Ratio AnalysisRatio Analysis

Acid test Raito : 3Acid test Raito : 3

The firm can meet itsThe firm can meet its

short term debt.short term debt.

Return on sales : 12Return on sales : 12

The firms is doingThe firms is doing

quite well.quite well.

Current Ratio : 9Current Ratio : 9

The company is safeThe company is safefor granting credit.for granting credit.


37/39

Net IncomeNet Income

$0 $10, 000 $20, 000 $30,000 $40,000 $50,000 $60,000 $70,000

1

2

3

4

5

Series1


38/39

Operating ExpensesOperating Expenses

Operating Expenses

$0

$50,000

$100,000

$150,000

$200,000

$250,000

1 2 3 4 5

Series1


39/39

AppendixAppendix

Food industry is one of the leading manufacturing sectors in UAE, with anFood industry is one of the leading manufacturing sectors in UAE, with aninvestment of around 32 Billion AED in 2008 making up 42% of the total investmentinvestment of around 32 Billion AED in 2008 making up 42% of the total investmentin manufacturing.in manufacturing.

There are more than 350 food establishments in UAE accounting for 9% of the fThere are more than 350 food establishments in UAE accounting for 9% of the ftotal number of manufacturing units, offering the domestic and internationaltotal number of manufacturing units, offering the domestic and internationalmarket fresh and excellent quality products of beverages, snacks, preparedmarket fresh and excellent quality products of beverages, snacks, preparedvegetables and meats, dairy products, confectionary, pasta and bakery and others.vegetables and meats, dairy products, confectionary, pasta and bakery and others.In Dubai alone there are about 174 units are in operation with a total investment ofIn Dubai alone there are about 174 units are in operation with a total investment of2.3 Billion AED2.3 Billion AED..

The bakery industry, mainly constituting biscuits and wafers, have an investment ofThe bakery industry, mainly constituting biscuits and wafers, have an investment of82 Million US$ (301 Million AED), and consists of around 73 operating units as of82 Million US$ (301 Million AED), and consists of around 73 operating units as oftoday according to GOIC database.today according to GOIC database.

The industry is governed by the UAE stringent standards of hygiene and quality setThe industry is governed by the UAE stringent standards of hygiene and quality setto meet international levels; hence UAE products find increasing demand in exportto meet international levels; hence UAE products find increasing demand in exportmarkets.markets.

Total FirmsTotal Firms TotalTotalInvestmentsInvestments

TotalTotalEmploymentEmployment

7373$ 82,457,541$ 82,457,541

47604760

B.st Plan Final

Documents

Transcript of B.st Plan Final