Business Plan

“SHOPNO TRAINING & OVERSEAS LIMITED”

VOCATIONAL TRAINING INSTITUTE AND MANPOWER AGENCY

Presented to: Mrs. Dilara Afroz Khan (DAK)

Presented By:

Name ID Section

Mir Razin Mahmud 083-264-530 4

Farazi Sayeed Ahmed 091-0155-030 7

Maliha Tasnim 091-0221-030 7

Sadia Rahman Nitu 091-0450-030 4

Rubayat Mahmud 091-0595-030 7

Date: 31/ 07/ 2012

1. EXECUTIVE SUMMARY 0 | P a g e

Shopno Training and Overseas Limited is a training institute that will provide

training skills on beautification, driving and cooking. It will exclusively cater to meet the

needs of the lower middle class female sector of the society. The training centre will be

standing at Bashabo because it is a place where beside this area there live many helpless poor

women, which means we can easily serve the helpless females on becoming self sufficient.

Our training centre has been divided into two major parts; the first one will provide cooking

training following the beautification training. We will contact with an outsource company to

provide training facilities to those females who want to establish their career on driving

profession. Aside from the vocational skills Shopno Training and Overseas Limited will

also provide soft skills to the candidates. This is because; the soft skills are required for the

scope of long term sustainable skills for jobs. As per soft skills Shopno Training and

Overseas Limited aims to provide basic knowledge about writing and reading, general

knowledge on lifestyle, health awareness, how to behave professionally, and basic computing

knowledge to the students. Technologically fast paced era demands some knowledge of the

computer at least to some extent. This is because we have decided to provide them with the

knowledge of computer so that when our students can use these skills for their own

convenience and also for job purposes. For any type jobs in abroad a driving license is a must

therefore we have come to the decision of providing driving skills to our students by making

an agreement with a professional driving company. Shopno Training and Overseas

Limited will hire good expertise on the above mentioned vocational and technical so that

practical demonstration along with theoretical knowledge can train the students well. Trainers

of cooking and beautification will be chosen prior to their experience in this field and their

own academic qualifications. Moreover, we will have agreements with the companies of

Malaysia and Singapore. When our candidates will be eligible we will contact with them to

judge the qualification of our candidates for working over there. We will help our candidates

to make contact for job over there to earn better, we have five members who are the initial

investors and we are equally paying the principal of the training centre. All the operations

will be carried out under our inspection. We will be solely liable for the running of the

training centre and we will be liable for carrying out major decisions regarding the betterment

of our training centre. We are planning to launch ourselves as the community member who

will try to reduce the poverty and illiteracy burden of the society especially for women.

2. PROFILE OF THE TEAM

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Maliha Tasnim

Sadia Rahman Nitu

Mir Razin Mahmud

Rubayat Mahmud

Farazi Sayeed Ahmed

Figure 1- List of the Board of Directors

The Principal of the institute and the person who will synchronize all the activities of

the institute is one of our board of directors, Ms. Maliha Tasnim.

Finance: Ms. Sadia Rahman Nitu will be the head of the finance department. She

has sound knowledge about finance and he has competent knowledge about how to

procure funds and make productive use of them.

Human Resource: Mr. Mir Razin Mahmud will be the head of human resource

management department. He has got adequate knowledge about managing the most

important resource of the institute, its people. Their salaries and incentives will be

handled by him and he will supervise them. He will also be responsible for the entire

grievance handling mechanism.

Marketing and sales: Ms. Rubayat Mahmud will be responsible for all the

promotional activities and she will be also be in charge of all the sources of revenue

generating activities. Her interactive skills and her interpersonal competence will be

highly aligned with the marketing goals of the institute.

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Procurement and materials management: Mr. Farazi Sayeed Ahmed will be the

head of this department. His bargaining power and his communication skills will

enable him to carry out the functions of this department well.

Information systems: Ms. Rubayat Mahmud will be the head of the information

systems of the institute. Her sound knowledge about technology and information

systems will be well acknowledged by her supervision in this department. She will be

responsible for all the managing of the students’ database and their personal

information.

3. INDUSTRY OVERVIEW

Bangladesh, a country with a population of over 160 million people has one of the

highest populations in the world. We are operating in a country where the population is the

steering wheel of the economy. It is one of the highest exchequers in the foreign exchange

reserve of this country. Since the inception of the Recruitment industry in 1976, Bangladesh

has export over 7 million people abroad and earned over $100 billion over the last 35 years.

The Apex trade body of the Recruitment Agency is BAIRA which is Bangladesh Association

of International Recruiting Agencies, is an association of national level with its international

reputation of co-operation and welfare of the migrant workforce as well as its approximately

700 member agencies in collaboration with and support from the Government of Bangladesh.

With the increase in demand for Bangladesh’s Human Resource abroad, another

complimentary industry to the recruitment industry that grew over time in the Vocational

training industry. It is the industry where unskilled or semi-skilled workforce is provided

training through public and public organizations in order to increase the competencies of the

workforce that will enhance in creating a better workforce. This workforce will then be

utilized to full capacity by exporting them to foreign countries where it will earn remittance

for the government. Bangladesh’s economic development and integration in the world

markets clearly show that its population has the capability to reduce poverty through their

own efforts (swisscontact, 2012).

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According to the Labor Ministry of Bangladesh, in a research survey that they have

conducted in many different countries, they have found that there is a potential industry for

skilled that is yet to be tapped by the Bangladeshi Recruitment Agencies in countries like

Malaysia, Middle-East and Asia Pacific, Singapore to be more precise. They said that there is

a high demand for Bangladesh skilled workers as they put on huge effort on their work. To

develop these skilled workers, Bangladesh needs to set-up Vocational Training institute with

adequate technology, expertise and knowledge (mole, 2006).

Ever since Bangladesh started exporting its manpower, it has sent workers to Saudi

Arabia, Kuwait, UAE, Qatar, Iraq, Libya, Bahrain, Oman, Malaysia, Korea, Singapore,

Brunei, Mauritius, Laos, Spain, Lebanon, Libya, USA and others. The recruitment agencies

have been exporting unskilled and semi-skilled workers. While now the industry for skilled

workers in emerging in the same foreign markets from Bangladesh. Singapore and Malaysia

have opened its gateway for skilled Bangladeshi workers (wikipedia, 2012).

Our Position in the Industry

Malaysia and Singapore is a high potential Market for skilled Bangladesh Workers

and Employee. Currently the workers who are exported to these countries are either unskilled

or semi-skilled. But we have differentiated into the skilled market segment of the Industry

which is in the early adapter’s stage. Therefore the demand for the workers and employees

from our company will be in a leading position as very few companies have entered into this

market segment as we will be providing the vocational training as well as the recruitment

services for the employees.

Our Competition

Since our industry is in the early adapter’s stage, the competition will not be as fierce

as it exists in the unskilled or semi-skilled sector. There are very limited vocational training

institute in the public as well as the private sector. But it is developing rapidly. Currently

there is not any institute that is providing the training facilitates that we will be providing. So

the competition is not stiff yet. Once we are set-up, we will take the first movers advantage in

the skilled employees sector in the industry and will be in the lead by the time competition

emerges in the industry.

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4. COMPANY OVERVIEW

COMPANY NAME:

Shopno Training & Overseas

Limited

4.1 MISSION STATEMENT

“We are ‘Shopno Training and Overseas Limited’ and we are here to provide quality

training for those female individuals in our society who wish to acquire vocational skills

and build a career with those skills. We will achieve this by employing qualified and

experienced trainers who will be capable to deliver to the trainees according to the

standards that we set.”

Our Values

Qualified Trainers: Our qualified trainers are our most important resource. We

encourage females to be self sufficient through acquiring qualified training and

initiative.

Customer Focus: We are committed to understanding our trainee’s needs and

exceeding their expectations through acquiring skilled training.

Adaptability: We are ready to meet the ever-changing demands of manpower

industry for providing female skilled manpower.

Teamwork: We understand that good decision-making, innovation and creativity

are cultivated in respectful exchanges of thoughts, ideas, opinions and advice. We will

create strong teamwork to make those underprivileged women become self sufficient

which will help to improve country’s overall economy.

Integrity: We are committed to the highest level of ethics and professional

standards.

Accountability: We accept personal and professional responsibility for our actions

and results; we focus on finding solutions and achieving excellence in all that we do.

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4.2 VISION STATEMENT

“To be the most trusted female training institution in the country for creating and

transferring skilled manpower”

Our main concern is to be the trusted female training institution in Bangladesh for

transferring them to make them self sufficient by transferring them in countries like

Singapore and Malaysia. In our country there have been ethical problems of serious concern

over the past few years regarding the injustice done by many individuals who get sent abroad

by organizations for work. Ethical issues such as promising innocent females for jobs that

they will later on go abroad and find out that they will never have. Most often these

individuals come back to Bangladesh with no more money than they had before leaving, if

not less. Also there is a security question for female workers who has faced insecurity and

also faced physical harassment in abroad. An even more important issue related to our vision

is that, many a times, individuals go abroad for work however they cannot perform and they

do not possess the adequate skills for this we are committed to provide them the best training

service in Bangladesh.

The above mentioned reasons are why being the most trusted institution (nationally

and internationally) for creating and transferring skilled manpower with female group is of

utmost importance to us as a business and it is exactly what we want to achieve.

4.3 SERVICES OFFERED

We provide all services for the recruitment of female workers from Bangladesh as

required by our overseas clients including giving the workers necessary training. We will

give them vocational training on cooking, beautification and driving then we will fulfill all

the necessary arrangements for the workers to send them overseas without any hassle. The

services that we are currently offering are:

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The products that we are offering to our students are:

3 Months Training on Cooking and Beautification and 1 month training on

Driving (Only for female)

Grooming on professional attitude and health and hygiene

Language Course on English

Compulsory Technical Skill courses

[Cooking+ Beautification]

Duration

->Grooming

->English)

Cooking 3 month+ 1 month Practice

-> 5 class/weekBeautification

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->Health & Hygiene -> 2 hour class/day

-> 20 hour/month

-> 100 hr./5 month

Driving

Table 1: Training Program

The above table shows the content and duration of our training (short) programs.

Basically trainees have the option of getting driving, beautification and cooking. However

with either training grooming, English and Health and Hygiene are compulsory courses.

Every offered training program lasts a total of 3 months, in which one month will be

allocated for examinations. Sessions will be held 5 times a week and 1 hour a day, which

sums up to 20 hours a month and 100 hours throughout the program.

We are giving training in the following category. Our vocational training will be

4.4 STRATEGIC GOALS AND OBJECTIVES

Strategic Goals and objectives are the different kind of milestones the company has to

put up to overcome the long-run vision. They are divided between long term criteria’s placed

by our company to set the targets alongside. Our institutes goal and objectives are mainly

listed separately on the following.

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Goals: To sustain the trustworthy position in manpower agency market, in terms of high performance and quality service by underprivileged female group.

To explore market potential for a huge number of unemployed Bangladeshi

youth especially women who has potentiality in driving tailoring cooking or

beautification

To find better job opportunities for skilled, semi skilled trained Bangladeshi

manpower.

Our goal is to provide best possible Bangladeshi manpower to the manpower

sourcing countries like Singapore, Thailand and Malaysia

As per the company demand our objective is to supply of competent and

disciplined youth which will be provided by our vocational training course.

Our objective is also to negotiate for better positions for Bangladeshi workers

in the country importing Bangladeshi workforce.

To establish Bangladeshi workers as the most competent and honest workforce

Headhunting for professional manpower for outbound employment

To reduce the country’s unemployment burden

To ensure safe and secure international job opportunity for female workers.

Objectives: We have divided our objectives based on timeframe, which are short-term and

long -term objectives. Details are given bellow –

Short-term objectives:

Increase the number of trainees by at least 10% per year through

advertisements and word-of mouth referrals

Increase revenue by 10% each year

The advertisement cost will reduce to 10% per year after the third month of

the first year

Long-term objectives: We want to survive in the market and make a brand image in the eyes

of our target customer by establishing a trustworthy company for transferring female

workers.

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4.5 OVERALL STRATEGY

Strategy, narrowly defined, means "the art of the general." It is a combination of the ends

(goals) for which the firm is striving and the means (policies) by which it is seeking to get

there. The strategies of our company is listed and taken as a whole and broken down in to

short and long term goals to recognize the targets of efficient advertising schedule and the

others following it. A strategy is sometimes called a roadmap which is the path chosen to

plow towards the end vision. The most important part of implementing the strategy is

ensuring the company is going in the right direction which is towards the end vision.

Short term goals:

Our foremost short term goal is to make our vocational training centre an ambience

where selected candidates will not only become professionally sound but also will get to

increase their technical, analytical and communication skills as they will be overwhelmed

with countless opportunities to do so.

We will polish the talents and capabilities of our students in such a manner that they

become effable and we thus hope to become efficacious in our journey of effectively shaping

the career of the potential candidate. Our utmost try would be to differentiate ourselves from

the stereotypical manpower agency that is just sending manpower only for profitability.

Our target is to become recognizable through positive word of mouth effects so that

we can capture as many potential candidates as possible so that we can bring a difference in

the lives of a mass number of underprivileged working woman.

Long term goals:

Our long term target is to capture 20% market share in leading vocational and

manpower agency institute by year 5 and also it is our long term goal to achieve sales

revenue of TK in order to break even and earn profit by end of year 3.

Also our long term strategy is to form strategic partnership with foreign firm in

order to establish our company brand as trustworthy manpower and vocational training

agency. In the time span of five years for increasing brand awareness we will also become

partners of social activities like awareness in female health and education facilities.

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We are also planning to become strategic partner of events in universities and schools

of Dhaka to target professional potential students who are eligible to work in foreign

countries by year 8 when our company will be established in the market. This will help us to

attract a new target market to outsource skilled and professional manpower.

5. INDUSTRY OVERVIEW AND ANALYSIS

5.1 FIVE FORCES

Porter’s Five Forces include the possible threat of new entrants, the threat of substitute

products and the bargaining power of buyers and suppliers with the competitive rivalry

among the industry. They determine the competitive position of our company, and are listed

as follows:

Risk of new entrants

As our school has lots of potentiality to do far better than other institutes and there is a

market demand for vocational training, so there is always a threat of new entrants. For this,

we have to make our business competitive with the current market and as our target market is

lower income level, we will provide the best teaching service and study materials at a very

low cost possible. This means, we will make sure that we are in the economics of scale. The

threat of new entrants is a function of both barriers to entry and the reaction from existing

competitors. There are several types of entry barriers like-

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Economies of scale:

Economies of scale refer to the decline in unit costs of a product or service (a function

that goes into producing a product or service). Here we can attain EOS through “utilizing

maximum number of experienced teachers with a minimum quantity”. It means fewer

teachers but all of them are extremely qualified which means “effective and efficient” both.

Now as we have experienced faculties so our unit cost will be low because of their experience

and productivity regarding the service.

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5 Forces

Bargaining Power of CustomersVery high in the market, as the target market can swtich to other institutions (especailly garments sector)

Threat of New Entrants Threat is high in the businessPositive for us, as the traget market is only women

Threat of Substitute ProductsOther training centersGarments industry of Bangladesh

Bargaining Power of SuppliersSupplier of human resource has high powerSupplier of equipment has low power

Competitive Rivalry within industryHigh in this industryExit barrier is low, as less number of employees and customers in the initial stage

Figure 2: Five forces

Product differentiation

New entrants must spend a great deal of money and time to overcome this barrier. The

main difference of our services is that we are focusing only on women, so that they can lead

their life with self-respect. We, ourselves, can also differentiate the service by shaping

students in such a manner that every student can tell the world that she is not just an ordinary

girl as she has some other identity which can increase her level of dignity. We will give our

candidates a perfect vocational training which they can utilize further in their lives in the

future.

Cost advantages independent of scale

Cost advantages can include access to the best and cheapest raw materials, possession of

patents and proprietary technological know-how, the benefits of learning and experience

curve effects, having built and equipped plants years earlier at lower costs, favorable

locations, and lower borrowing costs. Here our cost advantage is that we are focusing only

four types of vocational training. The main motto behind this is that we will provide fewer

types of training, but highly efficient and quality service. On the other hand we have

experienced curve effect too because of our extremely qualified teachers. Also, we can

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reduce our cost, as we will select those female candidates only who will pass the medical

examination.

In terms of this business, switching cost is high because our customers or students can

switch from one school to another whenever they want. We will become the most “cost

effective” in the market, where general people will get benefit higher than their expenses.

Competitive rivalry within the industry

As the business is emerging day by day and it has a large potential market, naturally

there will be competitive rivalry within the industry. But for our school the competition is

much more intense because our target is lower middle class and these are the people who

keep on switching their products and services in hot pursuit for money value. We will try to

grab female students from the rural areas and will make them understand that how beneficial

is our program is. The exit barrier is comparatively low in this market, as if we switch off,

students can easily move on to other companies. And the employees of Shopno can get

another job according to their quality.

Bargaining power of supplier

Suppliers can exert power over firms in an industry by raising prices or reducing the

quality of purchased goods and services, which will reduce profitability. For our school we

have two types supplier one is human resource supplier who supplies faculties and employees

and the second one is supplier of equipment’s e.g. chairs, tables etc.

Here, human resource suppliers are dominated by few firms where equipment’s

suppliers are dominated by many firms. So the bargaining power of supplier for human

resource is high but bargaining power of supplier for equipment is low. In educational

industry suppliers' products are not differentiated to such an extent that it is difficult or costly

for us to switch from one supplier to another. We can produce or manage things by ourselves.

But if it’s about our teachers and employees then it’s really costly and can’t be differentiated

so for this underlying reason, our bargaining power of supplier is high here.

Bargaining power of customers

As the customers or parents have lots of options regarding the admission of his /her child

and there are lots of other renowned schools that are providing low-cost vocational training

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therefore there is a high bargaining power of customer exists here cost therefore plays a huge

factor here and thus we will try to keep out costs low and competitive. The garments industry

of Bangladesh is quite powerful, so the female students have the opportunity to go and work

there. Though they are not in this industry, but they gave the bargaining power to the female

students.

Threat of substitute

Our school has other substitute too in our country. Our main focus area is “learning

proper vocational training” not for grabbing so called certificate. Here the proper vocational

training means providing them with the knowledge that is sustainable for the future and

through which they can earn a living. But there is some other institute who has the same thing

named “extra-curricular activities” for developing students’ potentiality to do something and

“vocational training center” where they trained their students technologically or giving

students’ lesson about sewing, plumbing, designing and enhancing wooden furniture’s etc.

Complementary

This is our sixth one where we complement our service through additional benefits and

services. Our core service is “giving a quality training” where the complementary is creating

path for students where they can identify themselves or can achieve something through

vocational training. It means our language program will be free and in that course we will

also help them to boost up their confidence level, dignity level, and will enhance their ways

of living as well.

5.2 Pest Analysis of Malaysia & Singapore

PEST analysis stands for "Political, Economic, Social, and Technological analysis" and

describes a framework of macro-environmental factors used in the environmental scanning

component of strategic management. It is a part of the external analysis when conducting a

strategic analysis or doing market research, and gives an overview of the different macro-

environmental factors that the company has to take into consideration. It is a useful strategic

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http://en.wikipedia.org/wiki/Market_research

http://en.wikipedia.org/wiki/Strategic_management

http://en.wikipedia.org/wiki/Environmental_scanning

tool for understanding market growth or decline, business position, potential and direction for

operations.

Political Situation of Malaysia and Singapore-

Malaysia political situation is attractive for foreigners. It is a developed country and

currently political situation of Malaysia for overseas is good. The politics of Singapore takes

the form of a parliamentary representative democratic republic country. Political factors have

a big role to play in our business. It could be the sole determinant of whether we will stay in

business or shut down. It is true that expansion of export labor depends on whether the

government allows it or not, however, fortunately at the moment the government has no such

restrictions so starting and running our business should not be a problem in terms of the

legality involved. The national laws and regulations change can affect the basic service or

methods of processing trainees. There are so many acts and provision followed by the

government and law enforcement authorities relating to the business and marketing

communications which affects the business and marketing communications in particular. The

government has relaxed and licensed many institutes for labor supply with ease and at low

cost.

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POLITICAL

The expansion of export of labor depends upon whether the government allows it or not.From Malaysia and Singapore point of view political environment is positive for our business.

ECONOMIC

Persistent rise in the price level (inflation) will reduce the revenue for the Institute. A fall in income per capita due to recession will actually diminish our institute's revenue.Recent economic crisis in economy indicates negativity on our business.

TECHNOLOGICAL

Can influence the quality of learning and the ease of teaching butstill technology advance ment can influence negatively on our business as human needs decreases as the technology advanced.

SOCIAL

Today’s trend is to go abroad and earn some moneyIn Malaysia social envirnment is good to live for foreign workersIn Thailand social environment is also positive for foreign workers.

Figure 3- PEST Analysis

Economical Situation of Malaysia and Singapore -

Malaysia, a middle-income country, has transformed itself since the 1970s from a

producer of raw materials into an emerging multi-sector economy. Malaysian people

achieved a high-income status by 2020 and to move farther up the value-added production

chain by attracting investments in Islamic finance, high technology industries, biotechnology,

and services.

The Najib administration also is continuing efforts to boost domestic demand and

reduce the economy's dependence on exports. Nevertheless, exports; particularly of

electronics, oil and gas, palm oil and rubber which remain a significant driver of the

economy. Malaysia could be vulnerable to a fall in commodity prices or a general slowdown

in global economic activity because exports are a major component of GDP.

So, overall economy of Malaysia for recruitment of foreign workers is not positive.

Economic factors currently are not in our favor. Although there is an existing demand for our

products, economic factors namely inflation and per capita GDP are not in our favor.

Inflation is increasing annually and per capita GDP is decreasing, this leaves our potential

customer s with very little ability to purchase.

Singapore enjoys a system of free economy. It is, however, a social democratic country

where government plays a major and crucial role in directing economy, trade, and commerce.

Its government also has an active hand in infrastructure support.

Social Analysis of Malaysia and Singapore -

There are four main Ethnic groups in Malaysia. The main Language of Malaysia is

Bahasa Malaysia which is their official language. English and Chinese is very widely spoken

all across Malaysia. Tamil, Malayalam, Punjabi Thai are spoken in some parts of the eastern

region. There are several indigenous languages; most widely spoken are Iban and Kadazan.

Language is a big factor to meet the social challenge.

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The major social factor that affects the business is the growing trend of youngsters going

abroad for work. This trend will be of great advantage for us and if we capitalize on it

effectively we can generate a lot of profit.

Technology Analysis of Malaysia and Singapore -

Malaysia is a very technologically advanced country. There is a widespread use of

internet all over the country. Energy such as electricity, gas and water is available is almost

all across the country. The telephone communication services is available everywhere.

Technological forces can influence our business in the sense that it can significantly

influence the quality of the students’ learning and significantly facilitate the teacher’s

teaching and trainers’ training.

Singapore is a very small country but leads as an example in the information highway.

There is a widespread use of internet all over the country. Energy such as electricity, gas and

water is available is almost all across the country.

Indicating Favorable condition Indicating unfavorable condition

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Figure 4- PEST in a glance of Malaysia & Singapor

5.3 INDUSTRY LIFE-CYCLE

A concept relating to the different stages an industry will go through, from the first product

entry to its eventual decline. Like other living creatures, industry also has its circle of life.

The industry lifecycle imitates the human lifecycle. The stages of industry lifecycle include

embryonic, growth,, shake-out, maturity and decline.

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PEST

http://www.coursework4you.co.uk/essays-and-dissertations/general-business/strategic-models/industry-lifecycle/industrylifecycle.php

http://www.coursework4you.co.uk/essays-and-dissertations/general-business/strategic-models/industry-lifecycle/industrylifecycle.php

Figure 5- Industry Life-cycle

When we compare our strategy towards the five levels of the life cycle, we are at the

moment on the “Growth” stage of the life cycle. This means that the vocational training

service of ours is on a market with an expanding and positive growth. We have a bright future

of increasing growth ahead of us as the industry is still yet to prosper fully. Therefore our aim

is to gather as much market share and increase our profitability. We are also willing to

increase our expertise and efficiency so that we can reduce the overheads involved in running

the training services business. The reduction in costs will increase our comparative advantage

as competition will begin to increase with a few new other companies providing similar

services in the establishing market. The increasing competition as well as the rise in

efficiency will lead to a fall in price or the charge recorded in services.

We are projecting an increase in our number of female recipients due to our distinct

competencies of offering a variety of services for a minimum charge. Our ‘focus’ generic

strategy increases this advantage and helps the firm to stay in better shape with the tight

pressure of competition around the manpower market. We will also invest heavily on

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Currently Operating!

advertising since we need our voices and strategies to reach the determined and independent

women all over the country. All these advertising and other overheads of running the strategy

needs us to keep a significant amount of investment cost which is although less then what we

do needed on the Embryonic stage. Overall with the intense level of competition as well as

our locked-in core and distinctive competencies, we can expect for very high returns over the

following years.

5.4STRATEGIC GROUP ANALYSIS

Every year a total of 400 youths are being provided the following training in 12

Vocational Training Centers located in the various local YMCAs in Bangladesh.

Vocational Training is offered to men and women in the trades of Sewing &

Tailoring, Carpentry, Agro-Mechanics, Electronics, Electrical House Wiring and Motor

Winding.

After completion these trade courses many of them have been working

different Tailoring shops, Garments Factories, Engineering & Electrical Workshops and

Furniture Marts for earning their livelihood and to help their family to lead a better life.

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5.5SUMMARY SWOT

Strength Weakness Opportunities Threats

Five Forces

Target market is only female candidates.

Provide proper lessons with job security.

Other industries are also quite powerful.

Bargain power is high for buyers.

One successful batch can open huge opportunity.

Bangladesh government can provide subsidy to promote this.

New training institutions and manpower agencies can come in the industry any time.

Industry Life

Cycle

“Growth” stage so high demand on our service

Other new entrants emerging on the market

Lock in a profit fixing position and get hold of the niche market share of

High Competition will be faced to regain the target market share

PEST

Many rights groups which speak for the people on their behalf. They are very powerful as well.

Legal system is a mixture of legal system of English common law, Islamic law, and customary law that is very similar to the Bangladeshi Laws.

Singapore is a high income economy and Malaysia is a middle income economy

Malaysia and Singapore is a very technologically advanced country.

The net migration is negative in Malaysia.

The main Language of Singapore is Mandarin which is also the official language.

The State controls the media in Singapore.

The land area is very small in Singapore.

Singapore is very expensive.

Singapore enjoys a system of free economy.

There will be changes in the economic policies that will reduce the biasness.

The net migration is very high in Singapore.

Foreign direct investment (FDI) is now 12.5% of GDP. Foreign investors appreciate the country’s efficient and transparent bureaucracy, eradication of red tape, and a highly effective human capital base.

The literacy rate is very high.

The society is dominated by the Chinese in Singapore.

Loneliness is a big threat to the societies of Singapore

People have to be very skilled in order to live in those societies.

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6. Internal Analysis

6.1 COMPANY VALUE CHAIN ANALYSIS

Value chain analysis is the process of analyzing each area of a company's operations that

bring materials one step closer to finished goods and consumption. The major links in a value

chain include inbound and outbound logistics, operations and sales activities. Using value

chain analysis involves mapping out all operational activities and assessing their

effectiveness and efficiency in an attempt to reduce costs and improve product quality.

Value-chain analysis looks at every step a business goes through, from raw materials to the

eventual end-user. The goal is to deliver maximum value for the least possible total cost.

Figure 6: Value Chain

Primary Activities-

Teaching & Training:

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INPUT (Students)

OUTPUT (Students)

Teaching and Training

Human Resource

AdministrationFinancing

MarketingEmploying

Primary activities

Support activities

The first and foremost primary activity that we have is the teaching and training. In

our school, we are planning to give three types of training and they are- cooking, beauty

training and driving. As our school is concentrated in women, so we have chose to give these

types of training and driving is included because of the high demand of drivers in those

countries. The language course will be also offered so that they can enhance themselves in

English and our trainers will help them to develop their knowledge about the norms and

values of those countries.

At the same time, we will also provide the students training about various

materialistic courses, which will make them competent about how they can manage with their

income and lead a healthier life. This training will be given systematically, so that they can

get everything and apply in their future life.

Employing:

This activity is very important for us, as making those women’s future secure is the

primary motto of our school. After they are done with their education and training with us,

then we will send them to those specific countries and will place them to various jobs

according to their skills. In addition, we will also provide apprenticeships to various parlors,

tailors, restaurants, etc. so that they can use their skills at hand, while they are in Bangladesh.

This will make them more confident and competent about their work.

Marketing:

We will be doing some marketing activities so that the students actually think that we

are worthy enough to give them facilities which can make their future secure. What will do is

actually promoting our institution to the customers so that they get to know we are here for

them. We have to make people aware about their situations and tell them what can be done to

remove those miseries from their lives. For those reasons, marketing will be done

extensively. And we will have a strong marketing strategy which will try to attract the village

women heavily, as they are the sufferers of the poverty line. We will also do the followings:

More advertising to get more investments and customers (students)

Promotional activities to sustain the current rate

Handle the competition by taking initiatives

Support Activities-

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We need the support activities for fulfilling the primary activities. The activities of support

units are described below:

Finance Unit:

In this unit, we will be having both short-term and long-term goals that will be helpful to

establish our institution for future. We will be trying to focus on these objectives:

Increase sales and profit through economies of scale.

Try to keep operations cost low.

Keep the debt/equity ratio as low as possible.

Prioritize expenditures in order to allocate resources efficiently and equitably.

Make better use of budgeted resources to achieve outcomes and produce

outputs at the lowest possible cost.

Try to attract long-term investments (more than 1 year)

Financial reports

Human Resource Unit:

This unit will basically work for establishing suitable working environment and engage in

recruiting employees. We will be trying to focus on these objectives:

Use experience curve system in the organization.

Hire the skilled and experienced teachers both academic and vocational.

Ensure customer responsive culture in the organization.

Periodic review of employee satisfaction

Performance Management and Incentive Awards

Development programmes

Wellness and Employee Assistance Programs

Administrative Unit:

The short-term and long-term objectives of the administrative unit of this institution are

described below:

Maintain a simplified acquisition program for supplies and services

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Positioning

Coordinates services and supplies

Organization Management

Maintain training information

Provide training information

Coordinate agency training program

6.2 EXISTING CORE COMPETENCIES AND

FUTURE COMPETENCIES

Core competence

Our core competency is represented by our human resources, in other words, by the

qualified teachers and technical instructors. On the other hand we are going to provide

personal development programs which is our another core competence.

Future competencies

Our target market is female students. In our country there are so many government

and non-government institution are available who wants to promote female empowerment. So

we will get soul advantage from those organizations in future.

Figure 7- Core competenc

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Resources

Capabilities

Competitive

Advantage

Efficiency (High-Moderate)Innovation (Low)Quality (High)Customer Responsiveness (High)

Differentiation Strategy Increased Value

Superior Profitability

Strategy Building Block

6.3 SUMMARY SWOT

Strength Weakness Opportunities Threats

Company

Value Chain

Analysis

Teaching and employing together.

Strong communication among the members.

Providing all training in one building.

There are many materials needed for the processing which lead to higher costs.

If anyone breaks the partnership, the business may fall apart

A rising demand in the domestic and international market.

Extension of export employees to more countries.

Entrance of new vocational institute.

Since the students belong socioeconomic class is below C, there may be risk of quitting in the meantime.

Existing Core

Competencies

High quality training

Expensive than

others

Expansion of

future market

Regulation

instability

Future

Competencies

Huge patron opportunity & flexibility

Quality can be hampered

Become the largest women training center

Regulation

instability

]

7. MARKET OVERVIEW

7.1 POTENTIAL CUSTOMERS

Our potential customers are females of lower to lower-middle class on our society.

Most of these women workers cannot afford higher degree education of driving, cooking and

beautification and, moreover, they are willing to start working as soon as possible in

countries like Malaysia and Singapore. Most of them prefer to go to these specific countries

for valuable work hence these are our potential customers. They have the highest demand for

our services and hence we will best sell our services to them. We want to make sure that we

are providing supply where there is substantial demand.

In order to best identify our target customers and understand their demand, we

conducted a survey:-

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Survey Result and Analysis: Determining Demand

Total sample size: 25 female workers

1. Do you think vocational education will create better job opportunities for you?

(a) Yes: 22 response (b) No: 3 response

Yes No0

5

10

15

20

25

22

3

Vocational institute create better job opportunity

Figure 8- Response- Survey Q1

Analysis: From the above data, we can see that majority (more than 80%) respondents have

shown interest in vocational education and think that it can obtain them better job

opportunity. This result valued from our sample is of high importance because it makes our

project proposal stronger.

2. Do you want to go abroad for working?

(a) Yes: 18 response (b) No: 7 response

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Yes No0

2

4

6

8

10

12

14

16

18

18

7

Going abroad for working


Analysis: The above data shows that majority (72% to be exact) of the female workers want

to work abroad from our service center towards Malaysia and Singapore. This indicates a

demand of 72 out of 100 students. The rest 28 % were not that much interested in going

abroad.

3. Will you pay a little extra compared to the existing cost if we ensure your job in

a foreign land?

(a) Yes: 16 response

(b) No: 9 responses

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Yes No0

2

4

6

8

10

12

14

16

16

9

Paying extra for foreign job


Analysis: 64% female workers are willing to pay extra money if job is ensured abroad. 36%

female workers were reluctant to pay for ensure foreign job. But the irregularity here is that

those students who did not wanted to go abroad for working answered negatively this

question.

4. Will you pay extra money for additional courses aside the skill courses?

(a) Yes: 19 response

(b) No: 6 response

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Yes No0

2

4

6

8

10

12

14

16

18

20

19

6

Extra money for added course


Analysis: 76% female workers are willing to pay for additional courses aside skill courses

whereas 24% of the respondents did not want to pay extra.

5. What skill do you wish to learn from vocational institution?

(a) Driving : 5 response

(b) Cooking: 12 response

(c) Beautification: 8 response

Analysis: An average of 20% of the female workers wants to learn driving from our

vocational training institution. Almost 50% of the sample target customers want to be

involved in cooking and the rest is up to getting regular spa training sessions for

beautification.

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Driving Cooking Beautification0

2

4

6

8

10

12

5

12

8

Skills Preferred


6. Preferred Day Shift, Evening Shift or Night Shift?

(a) Day Shift: 14 response

(b) Evening Shift: 6 response

(c) Night Shift: 5 response

Analysis: Maximum female workers (over 50%) prefer day shift rather than evening or night.

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Day Evening Night0

2

4

6

8

10

12

14

14

65

Preferred Shift


7.2 SIZE AND GROWTH OF THE MARKET

The size of the market is very much moderate. Hundreds of female workers are willing

to learn the basics of driving, cooking and do advanced beautification and then go abroad for

a better career aspect. This paired up with the lack of jobs in the country; these female

workers are in desperate need of jobs. There is also a growing trend that is characterized by

individuals going out to Middle Eastern and South Asian countries for job opportunities.

Many young female individuals are enthusiastic about the idea of going abroad because there

are few job opportunities within national borders and their perception promotes the idea that

going abroad is their best option. So the size of the market we will to serve is very much

modest and reasonable.

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7.3 MARKETING PLAN

The marketing strategy for us for the 1st year would be as follows-

Table 2- Marketing schedule for year 1

For the 2nd year the advertising will huge than the 1st year in order to get familiar our

services to the people. In the 3rd year, advertising cost will be less this year in intensity. Few

effective activities will be spread out over the months. At this point, our institute is already

known among our target market and their peers, so we only need to inform them about new

offerings, if there any. The following years, we will continue the advertising but not that

much like the first two years, as we are established company on that time.

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Initially no adveritising expenses will be incurredWord of Mouth of last three months publicizing involvedJAN 2013Extensive advertisement through leaflets and newspaper addsPersonal Communication on advertisementFEB 2013The process will be continued the same as previous month to attract the studentsMAR 2013No additional expnse for month 4, as we already got some students to start the journeyAPR 2013Increase the advertising through a higher number of leafletsMAY 2013Continue the advertising, also through postersJUNE 2013No advertising for month 7, as we already got some students to start the next batchJULY 2013Immense advertising to attract the next batch of studnets from october 2013AUG 2013Continue the process of high advertising to attract the customersSEP 2013No advertising for month 10, as we already got some students to start the next batchOCT 2013Significant advertising for the next batch of the next year NOV 2013Advertising expenses continued for the batch of Jan 2014DEC 2013

Advertisement

No advertisement

Figure 14- Advertisement schedule

Marketing MIX:

Figure 15- Marketing Mix

Product (Training and Teaching)

Cooking (Initial level) Beauty training (Spa training) Driving English and Grooming

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Training and Teaching Shopno overseas limited

Ranges from Tk6000- Tk 8000

Advertising

PRODUCT PLACE

PRICEPROMOTION

Ja Fe M MaAp

Se Au Jul

Ju

OcNoDe

Place (Shopno overseas ltd.)

We have decided to set our office space and training center in North Basabo, as it is a

convenient place to attract the customers, as there are many slums around that area. Even

many lower and lower-middle class people have their homes in those surroundings. So it

would be easy for them to come over here, and it would be helpful for us to attract customers.

Also, the place is less expensive and e can give more investment in grooming the students.

Price

Our products are quite superior to others in the market, so our charges start from BDT

6000 TK to 8000 TK per month. All the courses are for 3 months. So, overall costing would

be BDT 18000TK to 24000TK, but excluding the additional expenses (Visa, licensing and so

on). Moreover there is an admission cost of 500 taka per student which is to be paid when the

student is taking admission to the firm.

Promotion

Our only promotional activity will be advertising, which we will conduct across

different media mixes to achieve wide geographic coverage and high reach.

Customer services

Students (also prospective students) are welcome to our counseling service where we

have the latest and reliable news about jobs abroad. We will investigate students; expertise,

are of interest and scope and match them with suitable jobs. Also prospective students can

take our help to find out what course is suitable.

Not only will the counseling be academic but it would also be motivational. We will

also work on instilling more hope and enthusiasm in our customers.

Foreign Affiliation:

We will start our networking in foreign countries (Singapore and Thailand) through

personal contacts. Foreign establish HR agencies post job openings and we will affiliate as

such that they ensure high salary jobs and we ensure trained personnel

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Service Marketing:

Internal and external marketing is crucial to the ultimate long term success of the

business. In our case, the external marketing describes the extrinsic benefits that our

educational and vocational institute will offer.

Internal Marketing describes training and motivating employees to serve students and

other vocational trainees well. This might include the joint collaboration of the entire

operational unit and the departmental functions to jointly work to produce a greater

harmonization of the running of our school. Once the goal is communicated well and we

have a well spirited team we know that we can now march down the line to serve our

customers well.

8. OPERATIONAL PLAN

8.1. PRODUCTION AND OPERATIONS

To run our training institution smoothly, the three primary activities of our value

chain: Teaching, Training and Counseling & Career Service have been aggregated into one

department, operations. Operations department is dependent on procurement and staffing

rather than working in isolate

TEACHING AND TRAINING (PROCESS)

In the first year (starting from January 2013), we have to plan the course contents of

the short course, make necessary registrations for these courses, schedule the course and

deliver the finance department with our monthly cost requirement. Also, we will give the

procurement department the material requirement list. By the first year, we will be

responsible for providing staffing department with trainer requirements, attaining

accreditation for skill training on beautification, cooking and driving. Beautification and

cooking training will be provided for 3 months and driving training will be providing for 1

month.driving.

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Table 3- Training Schedule

Capacity utilization current utilization

Year total capacity

Beautification Cooking Total Capital Utilization

% of utilization

Jan-12 120 10 10 20 17%Apr-12 120 20 20 40 33%Jul-12 120 26 26 52 43%

Oct-12 120 30 30 60 50%Jan-13 120 32 32 64 53%Apr-13 120 34 36 70 58%Jul-13 120 38 40 78 65%

Oct-13 120 40 42 82 68%Jan-14 120 44 44 88 73%Apr-14 120 44 44 88 73%Jul-14 120 46 40 86 72%

Oct-14 120 48 44 92 77%Jan-15 120 48 44 92 77%Apr-15 120 50 48 98 82%Jul-15 120 50 50 100 83%

Oct-15 120 52 52 104 87%Jan-16 120 52 54 106 88%Apr-16 120 56 56 112 93%Jul-16 120 58 58 116 97%

Oct-16 120 60 60 120 100%Table 4- Capacity Utilization

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Weekday Session

Weekend Session

DAYS 9 AM – 11 AM 1 PM – 3 PM 6 PM – 8 PM

UNIT 1 UNIT 2 UNIT 1& 2 UNIT 1 UNIT 2

MONDAY Cooking Class

Beauty Training

Grooming Session (Unit 1)

Cooking Class

Beauty Training

WEDNESDAY Cooking Class

Beauty Training


Cooking Class

Beauty Training

FRIDAY Cooking Class

Beauty Training


Cooking Class

Beauty Training

SATURDAY Cooking Class

Beauty Training


Cooking Class

Beauty Training

The second year will consist of adding on extra trainers for new batches of 2nd, 3rd, 4th

batches for beautification and cooking. Also a new monthly operating cost and material

requirement list will be handed to financial department and procurement. The new trainer

requirements will be passed on to staffing department. So to sum up, that year’s activities will

include: conducting admission for short course for new batches. Also we will carry on with

our first batch to transfer them to Singapore and Malaysia.

The third year (2015) will be just adding up two training courses like food processing

and tailoring. 5th, 6th, 7th batch enrollment will be continued in this year for cooking and

beautification. Driving courses will be continued in each month.

The fourth year (2016) will consist of enrolling of short course batch 8 th, 9th and 10th

batch and also the processing of previous batches will be continued to transfer abroad.

The fifth year (2017) will consist of continuation of the previous batches to send them

abroad. Also we will try to help the females who did not get chance in abroad. We will help

them to build their career domestically in hotels, beauty parlors or companies to give them

recruitment in driving.

8.2 FACILITIES

Our facility for Shopno Training and Overseas Limited is that we will take a building

on rent for our company. There will be two floors. In 1st floor we will take rent 1 unit and in

2nd floor we will take 2 units for providing our training facilities and office work. Our office

location will be in Bashabo. Many fixed equipments are needed such as AC, Stoves, Fan, and

Lights. We will buy two micro buses from the Eastern Motors for driving facility to our

trainees.

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8.3 PRODUCT/ SERVICE OVERVIEW

Cooking-

Singapore and Thailand, both the markets have huge demand for Bangladeshi food, so

we will prepare our students according to that demand, but that would be initial stage of

cooking. As top chefs are highly qualified, so our students will be their right hand which is

actually helpers. They will be qualified with various Bengali food items, as well as some

Indian, Chinese and continental food items. We will also provide some lessons on pastry

making, so that they can help the top chefs in these critical food items.

Beauty training-

Beauty training has a wide range of demand not only in the targeted market, also in to

whole world. We will provide necessary training to be a beautician, which will include eye-

brows pluck, facial message, and some sort of hair cutting. We will mainly focus on the spa

training, especially the foot message. It is because both the cities have nearly 5 spa centre on

a single road, so it is a huge market. These are some techniques only, by which our students

can earn money and can support their families’ bank home.

Driving-

Nearly, 35%-40% taxi drivers are female drivers in both the countries. We will

provide them driving lessons for 1 month, and then will apply for the license. When they will

receive the initial learner card, which is valid for three months, they will be driving our cars,

as there is no market for female drivers in our country. The night session female students will

be dropped in their homes by our cars, and the female students will drive them off. In case of

safety, there will be one security guard in one car to protect the female driver.

Grooming session-

This service is free for the students. We the entrepreneurs will take those classes,

where we will teach them the Basic English knowledge and the manner to behave in a foreign

country. We will also teach them the culture of those two countries, so that they can be

familiar with the atmosphere. We will also make them confident through various grooming

sessions, which will be helpful for them in their career life.

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Input (Unskilled Manpower)

Output (Skilled Manpower)



Figure 16-Process of Driving Training

Figure 17-Process of Cooking Training

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Registation Admission Form

Theoretical Knowledge about

Traffic Law & Vehicle Policy

Start of Practical Training

Evaluation Test

Training Continued

Final Practical Training Test

Re Training who have Failed to Meet Criteria

Re Test of Final Practical

Training Test

R e g ista ti o n A d m issio n Fo rm

O rie n ta ti o nB asic K n o w le d ge

a b o u t K itch e n E q u ip m e n t

Sta rt o f Fo rm a l T ra in in gT e st

1 st E va lu a ti o n T e st

T ra in in g C o n ti n u e d

F in a l E va lu a ti o n T e st

R e T ra in in g w h o h a ve F a ile d to M e e t

C rite riaF in a l T e st




Figure 18-Process of Beautification Training

Jan1st

Feb2nd

Mar3rd

Apr4th

May 5th

Jun6th

July7th

Aug8th

Sep9th

Oct10th

Nov11th

Dec12th

Registration

Admission Form Fill UpOrientation

Basic KnowledgeSharingStart of Formal Training Test

1st Evaluation TestTraining ContinuedFinal Evaluation TestRe Training who failed to Meet CriteriaFinal Test

Table 5- Activity planning

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R e g ista ti o n A d m issio n Fo rm

O rie n ta ti o nB a sic K n o w le d g e

a b o u t B e a u ty T ra in in g E q u ip m e n t

Sta rt o f Fo rm a l T ra in in gT e st

1 st E va lu a ti o n T e st

T ra in in g C o n ti n u e d

F in a l E va lu a ti o n T e st

R e T ra in in g w h o h a ve F a ile d to M e e t

C rite riaF in a l T e st

8.4 EQUIPMENT

Equipments are tangible property (other than land or buildings) that is used in

the operations of a business.

The main task of Procurement Department is to purchase necessary equipments and

machineries for every department of our institution and assure their quality. Very beginning

year we purchased most of the products and we continue this task for five years more or less.

But department also doing another job, it sold some of these used products which were

expired so that we can get some profits at the end of the periods.

At first Procurement Department divided itself into three categories and then decided what

type of equipments would be sold for which category.

Details list of equipment are given in appendix

Kitchen Equipment

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Kithchen Equipment

Beauti tr aining Equipment

Office Equipment

http://www.businessdictionary.com/definition/business.html

http://www.businessdictionary.com/definition/operations.html

http://www.businessdictionary.com/definition/building.html

http://www.businessdictionary.com/definition/land.html

http://www.businessdictionary.com/definition/property.html

http://www.businessdictionary.com/definition/tangible.html

Equipment Quantity Image

Stove 2

Sink 2

Deep freezer 2

Gas Cylinder 6

Exhaust fans 2

Beauty Training Equipment

Equipment Quantity Image

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Saddle Cutting Stool 4

Facial Steamer 2

Portable massage bed 6

Hair dryers & Hair straightener

2

Spa vanity Case & Basalt Stone

4

Scissor & Spray Bottles

6

Office Equipment

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http://www.marica.co.za/component/page,shop.product_details/flypage,shop.flypage/product_id,120/category_id,35/manufacturer_id,0/option,com_virtuemart/Itemid,31/

Equipment Quantity Chairs 30Tables 6Fans 10AC 2Clock 10Telephones 3Lights 50Computer 2Printer 2Micro bus 2200 CC 2

8.5 QUALITY ASSURANCE

Quality assurance (QA) refers to the planned and systematic activities implemented in

a quality system so that quality requirements for a product or service will be fulfilled. It is the

systematic measurement, comparison with a standard, monitoring of processes and an

associated feedback loop that confers error prevention. This can be contrasted with quality

control which is focused on process outputs. To get customer responses our main task is

assure the quality of the products .Our teachers will require a minimum HSC level degree to

obtain employment, and all technical/vocational instructors must have a certain level of

education, not to mention expertise in their chosen fields. A part from all that we will follow

some steps for quality assurance.

We provide effective cooking courses so that students can become cook and when

everybody considers cooking skill it will be easier for them to get good job in the restaurants.

Our institution provides certificates to the students after completing their beauty

training course. These certificates will help them to get good jobs both in home and abroad.

We will try to arrange a government approval on the certificate, so it will easier for our

students to get license in abroad. When they will receive the initial learner card, which is

valid for three months, they will be driving our cars, as there is no market for female drivers

in our country. The night session female students will be dropped in their homes by our cars,

and the female students will drive them off. In case of safety, there will be one security guard

in one car to protect the female driver. We will teach them the Basic English knowledge and

the manner to behave in a foreign country. We will also teach them the culture of those two

countries, so that they can be familiar with the atmosphere. We will also make them

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confident through various grooming sessions, which will be helpful for them in their career

life.

9. THE HUMAN RESOURCE MANAGEMENT

Human Resource Management is the strategic planning to manage the organizations

employees and workforce to efficiently operate the entire organization. The prime task is to

align competencies of employees to job designs, responsibilities and duties. It is responsible

for the attraction, selection, training, assessment, and rewarding of employees, while also

overseeing organizational leadership and culture. Human Resource Management also

leverages the quality of skills and quality of life on employees.

Human Resource Management is basically the process of engineering human

capabilities in the organization to increase the efficiency of human activities leading to

sustainable organization.

Human Resources Management designs, develops and implements strategies in the areas

such as:

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Recruitments, hiring and selection of Employees

Employee Training and development

Career Development

Performance Appraisal System

Promotion and Demotion of Employees.

Designing and implementing job analysis

Design the pay system- base salary, wage, incentives and bonuses.

Human Resource planning

9.1 THE KEY HUMAN RESOURCES ISSUES

The key human resource issues that we will be dealing with are as follows:

1. Employee recruitment, hiring and selection the right person who will be job fit as well

as organization fit.

2. Determining the major Human Resource Needs and developing strategies to meet the

needs and demands.

3. To match people and their career needs and capabilities to jobs in the organization.

4. It is the job of Human Resource to define the tasks, authority and systems of the

organization and integrate it across the organization.

5. To develop a healthy inter and intra unit relationships and helping groups initiate and

manage changes in the organization.

6. The final issue is to identify, assess and through planned learning, helping to develop

key competencies that will enable employees to perform current and future tasks

better.

7. It is also the task of HR to provide personal assistance, counseling to individual

employees in the organization to increase the overall efficiency of the organization

and making it more sustainable.

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9.2 THE STAFF REQUIREMENT AND

EXPECTATIONS

1. Cooking Facility- two kitchens

Two training Chefs- 3 year experience with certification from reputed organizations.

Base Salary- Tk. 25000/-

Two Training assistants- 1 year experience. Should be trained from a certified vocational

training institute.

Base Salary: Tk. 5000/-

2. Beautification Facility

Two training Beauticians-3 year experience with certification from reputed organizations.


Two Training assistants-1 year experience. Should be trained from a certified vocational

training institute.


3. Driving- Should have proper government license.

Outsourced to a private driving firm Cost (negotiating stage)

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Chairman

T&D Director

Officer

Cook

Beautificaiton

Driving

HR Director

Officer

Mkt Director

Officer

Act Director

Officer

Admin Director

Officer

Office Attendant

Office Peon

9.3 THE STRUCTURE

Figure 20- Organogram

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Assistant (2)

10. Risk analysis

10.1 Foreseeable and unforeseeable barriers

Every business faces various kinds of risks which are required to be solved in order

to run the business properly. Therefore, an efficient management should analyze the risks

extensively and take effective measures to be prepared beforehand. Risks can come from both

within the firm or from outside the firm.

Internal risk-

These risks include:

Default Risk

Liquidity Risk

Operational Risk

Model Risk

Default risk-

This is the risk of having trainees not being able to pay for the fees. In this case, we

need to check whether the trainees have the affordability power to study under our program.

In order to help them pay the entire tuition fees we would set our terms flexible. We would

take the greater amount of money after their jobs are ensured and when they actually start

working. However, in this case we need to have a strong control of these trainees even after

their placements. Also it is required to check the trainees whether they have the ability to pay

the fees or not.

Liquidity risk-

Sometimes we may fall short of cash and experience liquidity risk. In order to avoid

this risk we need to have efficient liquidity management. We need to forecast our liquidity

requirement and keep a certain amount of money in the back as cushion. We will save 5% of

the total invest to protect from liquidity risk.

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Operational risk-

Operational risk mainly consists of legal risk, technological risk and reputational risk.

All these risks are related to the operation of the institution. If there is any problem related to

the placement of the trainees and if the trainees that we sends who turn out to be frauds then

these will tarnish our image. This means that our operation will be hampered and the demand

will reduce. To tackle such risk we need to monitor the operations very closely.

Model risk-

The risk associated with the faults of the model. If the speculation and the forecasting

turn out to be wrong then the business will face danger. As a contingency plan, we need to

consider diversification in different areas.

External risk-

External risks come from external factors like political, environmental and as such.

The biggest external risk that we have is if there is no demand for our trained students in the

countries where we have affiliations with the Human Resource Agencies. This may destroy

the promise that we are giving to the students that we will ensure their jobs. This will, at the

same time, reduce our profits largely since if we cannot ensure a job to a student then s/he

would not pay the money that we are charging after the students have graduated. This will

mean that the money they will pay during their course will not be even enough for our

overhead cost per person. Our profitability will be at risk and thus the future of the business.

No external risks can be handled directly. Neither can we increase the demand of labor

in those countries nor can we force the governments to take our labor even if there is no

demand. In this situation, the best solution is to have affiliations with many different

countries. This is, again, a sort of diversification plan that we can implement. Even under the

global market crisis, the chance of having a no demand in all the countries will be minimized.

Therefore, we need to spread our network in different countries in order to have affiliations

with their human resource agencies.

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11. Financial management plan

11.1 Assumptions

In order to make the financial statement of the company, we have to assume some factors that affect the whole system.

Revenue assumptions:

The sales growth rate of the revenue that has been used throughout the 5 years of the project is as follows:

Year Sales GrowthYear1 7%Year2 12%Year3 15%Year4 20%Year5 21%

The following notes justify the assumptions made-

In the first year, the growth rate has been assumed to be 7%. As our business

model is new and the promotion will be at the beginning stage we have assumed

that the growth rate of customers increasing during the first month will be steady.

As this is a women oriented business, we may see less growth in the first year.

During year 2, we have assumed an increased growth rate than year1 and we have

set the growth rate at to be 12% which was used for entire year. We are assuming

that out of 100 students, minimum 70 students will be satisfied and will eventually

tell 2 persons about our service. So, our student’s number will increase in this rate.

As our product will be advertised, more customers will buy our products and the

incremental growth rate justifies the assumption.

In year 3, as our business will move from the introduction stage towards the

growth stage, and as there will be more promotional activities we have presumed

the growth rate to be 15%. This increased growth rate also justifies for the mouth

to mouth promotion that our business is likely to achieve. Also, we may offer

different discounts on our services and also our customers may be able to pay in

installment.

The following year, we are going to have a sales growth of 20% due to our

product quality and promotional activity. And the growth rate is assumed to be

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20%, because we may successfully send women to Malaysia and Singapore within

that time horizon. So, it is obvious to say that, we will get more students.

The growth rate is assumed to be 21% as our business is approaching to the

industry stake-out phase.

Expenditure assumptions

The costing we have in our expenditure side has different growth rate based on their

need and demand according to the student number. All the assumptions are provided below:

Salary expenses will have a 5% to 7% increase due to entrance of new stuff members,

and we have to that as our students number will increase as well.

Rent expense is assumed to be fixed.

Advertising cost will increase but only for the second year, as we have top attract the

customers. But later, there would be no need for additional advertising as word of

mouth will help us to gain customers.

Utility expenses will have a steady growth rate of 5% and little higher changes may

occur in fourth year, as we will buy new assets.

Freight-out cost is assumed to increase at 5% rate.

Miscellaneous cost will increase at a higher rate, which is assumed to be 11% for the

2nd year; it is because increased number of students will result in purchase of those

additional products.

Other assumptions:

Tuition receivable will increase corresponding with the growth rate.

All the asset values are adjusted with the depreciations, which is given detailed in

notes.

Utilities and salaries payable are assumed to be 5% of the total utility and salary

expense on that year.

For the IRR calculation, we used interpolation method.

The opportunity cost is 12.5%, which is the current FDR rate.

The variable cost includes salaries and miscellaneous expenses.

Income Distribution Assumption

The net income/loss generated by “Shopno Training & Overseas Ltd.” is assumed to

be distributed equally to the owners or partners if not re-invested in the company as Retained

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Earnings. These distributed earnings are then eligible for tax deduction as “Personal Income

Tax”.

Capital Budgeting Assumption

The financing of our company is entirely based on “Equity Financing”. There is no

debt financing involved as a result there is “No Long Term Debt” for the company. Initially,

the business was opened using Tk.6000000 from the Entrepreneurs. There's no WACC for

the absence of any financing cost. No interest-bearing debt and zero dividends to the owners

make the WACC irrelevant.

11.2 Income Statement

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Income statement Notes Year 1

Revenue from Training 1 4182000Revenue from Admission fee 2 102000

Total Revenue 4284000

Expenses 3

Salaries expenses 3.1 2628000

Rent expenses 3.2 672000

Advertising expense 3.3 336000

Utility expense 3.4 540000

Freight-out 3.5 91200

Depreciation expense 3.6 143300

Maintenance expense 3.7 120000

Miscellaneous expense 3.8 401281.0368

Trade expense 3.9 2000

Total expenses 4933781.037

Net income(loss) -649781.0368

11.3 Balance sheet

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Balance Sheet Notes Year 2013

Asset

Cash 4 433118.9632

Tuition Receivables 5 79000

Total current asset 512118.9632

Micro Bus 6 3480000

Computer and Printer 7 48700

Air Condition 8 52000

Deep Freezer 9 38000

Advance payment 10 1200000

Other asset 11 177800

Total Fixed asset 4996500

Total Asset 5508618.963

Liabilities and Shareholder's Equity

Utilities payable 12.1 27000

Salaries payable 12.2 131400

Total Current liabilities 158400

Owners Capital 13 5350218.963

Retained Earnings 0

Total Equity 5350218.963

Total Liabilities and Equity 5508618.963

11.4 Financial notes

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1. Revenue from Training

The revenue is coming from the tuitions fees from the students. The following are the tuition fees. Here from the driving students, we are getting only Tk.1000, though they will pay Tk.6000. The rest part of the money will be given to the affiliated driving school. Also, the tuition fees are little higher than the other vocational training school, because of the service we are going to provide after they get selected and get the chance to go abroad.

Revenue Per studentsFrom Beauty training 8000From Cooking Training 8000From driving 1000Admission fee 500

The following is the first year revenue from training which was calculated based on the different monthly returns, as we will not have the same number of students in every batch.

Months Beauty Cooking Driving RevenueJan 10 10 5 165000Feb 10 10 5 165000March 10 10 5 165000April 20 20 7 327000May 20 20 7 327000June 20 20 7 327000July 25 25 10 410000August 25 25 10 410000September 25 25 10 410000October 30 30 12 492000November 30 30 12 492000December 30 30 12 492000

4182000

2. Revenue from Admission Fee

This part of the revenue is generated from the admission fee, which is Tk.500 for each. So, this income will be earned in four months- January, April, July and October.

Months Beauty Cooking Driving Admission RevenueJan 10 10 5 12500Feb 10 10 5 0March 10 10 5 0April 20 20 7 23500

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May 20 20 7 0June 20 20 7 0July 25 25 10 30000August 25 25 10 0September 25 25 10 0October 30 30 12 36000November 30 30 12 0December 30 30 12 0 102000

3. Expenses

3.1. Salaries Expenses

There will be total of 21 stuff members in the ‘Sopno Training & Overseas Ltd’. Along with the manager, there will be four officers to handle the customers. Two officers will sit in the main office (Ground floor) and other two will be sitting in the cooking and beauty training side (1st floor). There will be three beauty trainers and three chefs for the first year and they will be contracted on the basis that they have to give service to all students of the first year. And later, based on the new students and market demand, the trainee numbers will be increased. We do not need any driver because our driving students will drive our cars for their practice.

Post No. Monthly Salary Yearly amountManager 1 18000 216000Officer 4 12000 576000Beauty Trainee 3 12000 432000Chefs 3 25000 900000Helpers for parlor 4 4000 192000Helpers for kitchen 4 5000 240000Gate-keeper 2 3000 72000

79000 2628000

This salary structure is just the initial costing, later based on the numbers of students, staff members will be increased as well.

3.2. Rent Expenses

Our office and training center is in the same place, which is in Basabo. We will rent the ground floor but one side of the building. And the 1st floor will be rented full for the purpose of cooking and beauty training.

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RentsMonthly rent Yearly Rent

Front Office 20000 240000Beauty Training center 18000 216000Cooking Training center 18000 216000

672000

3.3. Advertising Expense

For the promotional purpose we have chosen to only go for the Banners, leaflets and

posters. The rationale behind choosing this promotional strategy is listed below:

Using banners, leaflets and posters are the most appropriate forms of

advertising because as “Sopno Training & Overseas Ltd.” is primarily

focusing on the lower-level families, mainly the female members of those

families. As, those people cannot afford to buy newspapers and even they are

unable to watch television in some cases, so we are choosing these three forms

of advertising, which will attract the customers easily.

As we are starting our journey from January 2013, our initial customers will

come from the word of mouth advertising, which we will do for the months of

October, November and December. Later, we will advertise every two months

before starting a new batch. As example- to catch the April-month batch, we

will advertise in February and March, and so on.

Leaflets and posters are the most cost-effective method for advertising for our

business. The advertising cost regarding the advertising expense is listed

below:

Advertising Expenses Per Unit cost Monthly Usage Monthly Cost(Tk)Leaflet 6 1500 9000Posters 40 200 8000Banner 500 50 25000

42000

Months Costing(Tk)Jan 0Feb 42000March 42000

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April 0May 42000June 42000July 0August 42000September 42000October 0November 42000December 42000Total Cost (Yearly) 336000

3.4. Utility Expense

The utility expenses consist of the electricity, water, gas, telephone, etc. As we have total

three places, we are assuming that the accumulated monthly cost will be 45000. So, in a year

it will stand to tk. 540000.

3.5. Freight-out

We will have our two micro-buses and it has some costing as well. For cost saving advantage

we have decided to use ‘Compressed Natural Gas (CNG)’ compatible vehicle for our use.

We are assuming that the fuel costing of one month would be Tk.6000 and it can be

fluctuated a little based on the use. The garage rent would be Tk. 800 per month. So, the

yearly costing stands Tk. 91200.

Fright-out COST (Tk)Fuel costing 6000Garage rent (800tk for each) 1600Monthly cost 7600Yearly Cost 91200

3.6. Depreciation Expense

Depriciations Value Salvage ValueYears

Depriciation amount

No. of items

Total Depriciation

Micro bus 2200 180000 1200000 10 60000 2 120000

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CC 0Computer 24500 10000 5 2900 2 5800Printer 4500 1000 2 1750 2 3500AC 30000 10000 5 4000 2 8000Deep Freezer 22000 7000 5 3000 2 6000

143300

3.7. Maintenance Expense

The maintenance expenses that are most likely to be incurred by us are mainly based on the

repairs needed for the machines, vehicles, inventory in the store and we assume that the

yearly costing would be approximately Tk. 120000.

3.8. Miscellaneous Expense

Miscellaneous Expense No. Monthly Cost(TK.)Toner 5 600Facial Cream 4 1200Facial Mask 4 2000Bleach Cream 4 700Hair Spray 6 700Spa Cream 4 1500Cooking Materials 20 5000Vegetables Depends 1500Rice 8kg 560Ingredients Depends 5000Spices 10kg 4000Baking Materials Depends 3000

25760

These are some of the miscellaneous costing. This is for the first years monthly costing. But

based on the number of students this cost will be increasing as well. If we assume that for the

first year the monthly costing is 25000 Tk. than it will be wrong, as we are starting with only

25 students and this amount is needed for those only. Based on the numbers of students of the

year 2013, we can say that we may have the following miscellaneous expense for the first

year. The month of April, July and October has increased costing due to the increased

number of students.

Month Miscellaneous ExpensesJan 25760Feb 25760March 25760

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April 27820.8May 27820.8June 27820.8July 36445.248August 36445.248September 36445.248October 43734.2976November 43734.2976December 43734.2976Yearly Cost 401281.0368

3.9. Trade Expense

In order to do the business, we have to give the government these fees to be registered and we

have to renew this every year.

4. Cash

The cash amount in hand for the year 1 is Tk.433118.9632. Initially we are having this

amount so that we can meet all the payable obligations which can come due anytime. Also

our miscellaneous expense is changing on a regular basis, so it is safe to hold some money.

On the other hand, we have to buy the other assets, whenever necessary, so for that reason

this amount is required.

5. Tuition Receivables

Generally, we are taking the salary in advance from the students. So, we are having a

receivable for one month only, and later the receivable may change based on the new entrants

number.

6. Micro-bus

We will have two micro-buses, each for Tk. 1800000. The carrying value of this asset in the

balance sheet is given below:

Year CostYearly Depreciation Expense(Tk) Carrying amount(Tk)

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Year 1 3600000 120000 3480000Year 2 3480000 120000 3360000Year 3 3360000 120000 3240000Year 4 3240000 120000 3120000Year 5 3120000 120000 3000000Year 6 3000000 120000 2880000

7. Computer and Printer

We have two computers and two printers, so their values and deprecation adjusted value is

given below:

Computer 2 30000 60000

Printer 2 4500 9000

Year CostYearly Depreciation Expense(Tk)

Carrying amount(Tk)

Year 1 49000 5800 43200Year 2 43200 5800 37400Year 3 37400 5800 31600Year 4 31600 5800 25800Year 5 25800 5800 20000


Carrying amount(Tk)

Year 1 9000 3500 5500Year 2 5500 3500 2000

8. Air Conditioner

We have two air conditioners for the main office which is in the ground floor. We are not

having in air condition in the 1st floor due to cost effectiveness. Also, the students whom we

are going to teach are not in need of that. The students would be happy enough to have fans,

and proper service.


Carrying amount(Tk)

Year 1 60000 8000 52000Year 2 52000 8000 44000Year 3 44000 8000 36000

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Year 4 36000 8000 28000Year 5 28000 8000 20000

9. Deep Freeze

Our company will have two freezers for the cooking materials. Their carrying value is given

below:


Carrying amount(Tk)

Year 1 44000 6000 38000Year 2 38000 6000 32000Year 3 32000 6000 26000Year 4 26000 6000 20000Year 5 20000 6000 14000

10. Advance Payment

The advance payment would be tk. 1200000 and it is our asset, as after the expiration of the

contract, we will get this amount of money. This amount is also a part of the investment as

we have to give the money to the land-lords. But as we will eventually have the money in our

hand, so it is our asset.

11. Other Assets

There are some other assets which are needed for our training services. Some of them are

listed below and these assets will change accordingly when the student number will increase.

So, this asset’s growth depends on the students enrollment growth.

Others No. of units Per Unit Cost Total CostStove 2 5000 10000Sink 2 8000 16000Exhaust Fan (Large) 2 1500 3000Saddle Cutting stool 4 2500 10000Facial Steamer 2 4000 8000Portable message bed 6 5000 30000Hair dryers 2 1500 3000Hair straighter 2 2000 4000Spa Vanity case and Basalt stone 4 1300 5200Scissors and spray bottles 6 100 600Chair(office) 10 700 7000Chair 20 250 5000

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Tables 9 4000 36000Fans 10 2500 25000Clock 10 100 1000Telephones 3 500 1500Lights 50 250 12500

177800

12.1 Utilities Payable

We are assuming that the utility payable will be 5% of the total utility expense of that year.

We are just approximating this figure.

Utility expenses 540000Utilities payable (5% of total utility expenses) 27000

12.2 Salaries Payable

The salaries payable will also be 5% of the total salary expense.

Salaries Expenses 2628000Salaries Payable (5% of total salary expenses) 131400

13. Capital

The initial investment is Tk. 6000000 for our company “Sopno Training and Overseas Ltd.”

The five owners contributed Tk. 1200000 each to fulfill the business requirement. After

adjusting with the net profit we have the capital for the end of 1st year.

Owner's capital statement Tk. Year 2013Capital 0

Add: Investment 6000000 Net profit or loss -649781.0368

Capital (at the end of 1st year)

5350218.963

11.5 Pro-forma statements

Income statement Year 2013Year 2014

Year 2015

Year 2016

Year 2017

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Revenue from Training 4182000 4683840 5386416 6463699 7821076Revenue from Admission fee 102000 114240 131376 157651.2 190758

Total Revenue 4284000 4798080 5517792 6621350 8011834

Expenses

Salaries expenses 2628000 2759400 2924964 3129711 3286197

Rent expenses 672000 672000 672000 672000 672000

Advertising expense 336000 352800 352800 388080 407484

Utility expense 540000 567000 595350 637024.5 668876

Freight-out 91200 95760 100548 105575.4 110854

Depreciation expense 143300 143300 147950 150950 150950

Maintenance expense 120000 108000 110160 110160 112363

Miscellaneous expense 401281.037 445422 494418.37 568581.1 653868

Trade expense 2000 2000 2000 2000 2000

Total expenses 4933781.04 5145682 5400190.4 5764083 6064592

Net income(loss) -649781.04 -347602 117601.63 857267.9 1947242

Balance Sheet Year 2013 Year 2014 Year 2015 Year 2016 Year 2017AssetCash 433119 200587 321941.85 1303459 3350065

Tuition Receivables 79000 88480 101752 122102.4 147743.9Total current asset 512119 289067 423693.85 1425562 3497808

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Micro Bus 3480000 3360000 3240000 3120000 3000000Computer and Printer 48700 39400 97400 74500 64000

Air Condition 52000 44000 36000 28000 20000Deep Freezer 38000 32000 64000 52000 42000

Advance payment 1200000 1200000 1200000 1200000 1200000Other asset 177800 204470 235140.5 270411.6 310973.3

Total Fixed asset 4996500 4879870 4872540.5 4744912 4636973

Total Asset 5508619 5168937 5296234.3 6170473 8134782

Liabilities and Shareholder's Equity

Utilities payable 27000 28350 29767.5 31851.23 33443.79Salaries payable 131400 137970 146248.2 156485.6 164309.9

Total Current liabilities 158400 166320 176015.7 188336.8 197753

Owners Capital 5350219 5002617 5120218.6 5982137 7937028Total Liabilities and Equity 5508619 5168937 5296234.3 6170473 8134782

Owner's capital statement Year 2013 Year 2014 Year 2015 Year 2016 Year 2017Capital 0

Add: Investment 5350219 5002617 5124869 5989787 Net profit or loss -347602 117601.63 857267.9 1947242

Capital (at the end of 1st year) 5350219 5002617 5120218.6 5982137 7937028

Cash Flow Statement year 2013 year 2014 year 2015 year 2016 year 2017Net Profit After Tax -649781.037 -347602 117601.63 857267.9 1947242Depreciation 143300 143300 147950 150950 150950Increase in Tuition Receivable 0 -9480 -13272 -20350.4 -25641.5Increase in utilities payable 0 1350 1417.5 2083.725 1592.561Increase in salaries payable 0 6570 8278.2 10237.374 7824.279Cash flow from operating -506481.037 -205862 261975.33 1000189.4 2081967

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activities

Purchase of asset -4718700 0 -109950 0 0Purchase of other asset -341700 -26670 -30670.5 -18671.1 -35361.74Cash flow from Investment activities -5060400 -26670 -140620.5 -18671.1 -35361.74

Investment by owners 6000000 0 0 0 0Distribution to owners 0 0 0 0 0Cash flow from Financing activities 6000000 0 0 0 0

Net cash inflow/outflow 433118.9632 -232532 121354.83 981518.28 2046605

11.6 Capital budgeting techniques for feasibility

Net Present Value

Financial feasibility can be determined by calculating Net Present Value. It is the difference

between the present value of cash inflows and the present value of cash outflows. NPV is

used in capital budgeting to analyze the profitability of an investment or project.

NPV analysis is sensitive to the reliability of future cash inflows that an investment or project

will yield. NPV compares the value of a dollar today to the value of that same dollar in the

future, taking inflation and returns into account. If the NPV of a prospective project is

positive, it should be accepted. However, if NPV is negative, the project should probably be

rejected because cash flows will also be negative.

Calculation of NPV Cash Inflow/

(Outflow)Discount rate PV year

Year 0

(Initial Outlay)

(3-month T-bills rate)

(6000000)

2013

(506481.0368)

0.125 (As of Dec 13, 2013)

(450205.366)

1

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2014

(205861.9508)

(162656.356)

2

2015

261975.3346 183993.6506 3

2016

1000189.376 624413.3036 4

2017

2081966.883 1155343.711 5

NPV (4649111.057)

The Net Present Value comes out to be negative. In the first year, however, we would not

generate very high revenue and so the value is quite unlikely to be positive. In usual case

when the Net Present Value is negative you should not invest in that project. But we believe

that the Net Present Values for the next years onwards are going to be positive because the

business has huge potential.

The internal rate of return (IRR) is a rate of return used in capital budgeting to measure

and compare the profitability of investments. It is also called the discounted cash flow rate of

return or the rate of return. In the context of savings and loans the IRR is also called the

effective interest rate. The term internal refers to the fact that its calculation does not

incorporate environmental factors.

IRR Calculation

Cash Inflow/ (Outflow)

Discount rate PV

Required Rate (10%) Year 0 (3-month T-bills rate) -6000000 2013 -506481.0368 0.125 -460437

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http://en.wikipedia.org/wiki/Effective_interest_rate

http://en.wikipedia.org/wiki/Discounted_cash_flow

http://en.wikipedia.org/wiki/Investment

http://en.wikipedia.org/wiki/Profit_(economics)

http://en.wikipedia.org/wiki/Capital_budgeting

http://en.wikipedia.org/wiki/Rate_of_return

2014 -205861.9508 -170134 2015 261975.3346 196825.9 2016 1000189.376 683142.8 2017 2081966.883 1292738 NPV @ 10% -4457864.77 Cash Inflow/

(Outflow)Discount rate PV

Required Rate (14%) Year 0 (3-month T-bills rate) -6000000 2013 -506481.0368 0.125 -444282 2014 -205861.9508 -158404 2015 261975.3346 176825.9 2016 1000189.376 592192.4 2017 2081966.883 1081308 NPV @ 14% -4752359.047 With 4% the difference is

-294494.2763

-1.35826E-05 So , IRR =(10%+1.35%)

=11.35%

Break- Even Analysis:

In the linear Cost-Volume-Profit Analysis model, the break-even point (in terms of Unit

Sales (X)) can be directly computed in terms of Total Revenue (TR) and Total Costs (TC) as:

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Where:

TFC is Total Fixed Costs,

P is Unit Sale Price, and

V is Unit Variable Cost

Assumptions:

Revenue per unit (P)= 17500

Variable cost per unit (V) =((262800+401281)/60)=12374.5

Total Fixed cost at (TFC)= 499650

Break-even units 95 units

From the above breakeven result, we

can that our total cost & total revenue will

be same if we are able to train 95 students.

On the other, ww will be in a break even

position if we are able to utilize our 77%

capacity

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Payback Period

\Payback period refers to the time the company will take to give back to its owners the money

that was initially invested in the business. For ‘Shopno Training and Oversees limited” the

initial start-up cost was Tk.6000000 and the payback period for the company is depicted in

the chart below:

Year 2013 2014 2015 2016 2017Net Income (649781) (347602) 117602 857268 1947242Payback (649781) (997383) (879781) (22513) 1924728

From here, the pay-back period cannot be found, because our initial investment is huge. So,

in order to have this, we have to forecast for some more years. That’s it only showing some

amount of recovery, but the initial investment tk. 6000000 is yet to recover.

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11.7 Performance analysis

RETURN ON EQUITY (ROE)

2013 2014 2015 2016 2017

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

-12.14%

-6.95%

2.30%

14.33%

24.53%

Ratios ROE

2013 -12.14%

2014 -6.95%

2015 2.30%

2016 14.33%

2017 24.53%

Interpretation:

The return on equity is the net income generated by the bank in relation to the total

shareholders’ equity the company acquires. In year 1, the company has generated a net loss

of $12.14 for every $100 in total equity. This means that the owners lose $12.14 out of $100

investment. From the time-series analysis, Shopno Training & Overseas Limited has

improved its ROE significantly in the future years. The ROE is -6.95% in year 2, 2.30% in

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year 3, and 14.33% in year 4 and 24.53% in year 5 respectively. In the last three years it has

positive ROE due to increase in net profit.

RETURN ON ASSET (ROA)

2013 2014 2015 2016 2017

-15.00%-10.00%

-5.00%0.00%5.00%

10.00%15.00%20.00%25.00%30.00%

-11.80%-6.72%

2.22% 13.89%

23.94%

Return on Asset (ROA)

Ratios ROA

2013 -11.80%

2014 -6.72%

2015 2.22%

2016 13.89%

2017 23.94%

Interpretation:

ROA signals how much of the net income is being generated from the total assets. In year 1,

the company has generated Net Loss of $11.80 out of every $100 in total assets. From the

time series graph, the ROA has been increasing consistently over the years. In 2014 they also

have a negative return on assets of -6.72%. But from 2015 we have managed to keep a

positive net profit margin of 2.22%. This is good news for the company’s bright future as this

will lead to increasing Net Profits for the future years to come. To increase the ROA we

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should concentrate more on increasing the net profit by reducing expenses and increasing

revenues in comparison to total assets.

NET PROFIT MARGIN

2013 2014 2015 2016 2017

-20.00%-15.00%-10.00%

-5.00%0.00%5.00%

10.00%15.00%20.00%25.00%30.00%

-15.17%-7.24%

2.13%12.95%

24.30%

Net Profit Margin

Ratios NPM

2013 -15.17%

2014 -7.24%

2015 2.13%

2016 12.95%

2017 24.30%

Interpretation:

In year 1, our company has generated Net Loss of $15.17 out of every $100 in sales.

From the time series graph, the Net Profit Margin has been increasing consistently over the

years. In year 2 they also have a negative net profit margin of -7.24%. But from year 3 we

have managed to keep a positive net profit margin of 2.13%. This is good news for the

company’s bright future as this will lead to increasing Net Profits for the future years to

come. To increase the Net Profit Margin we should concentrate more on increasing the net

profit by reducing expenses and increasing revenues.

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CAPITAL RISK:

2013 2014 2015 2016 201796.20%

96.40%

96.60%

96.80%

97.00%

97.20%

97.40%

97.60%

97.80%

97.12%

96.78%96.68%

96.95%

97.57%

Equity capital/total asset

Ratios NPM

2013 97.12%

2014 96.78%

2015 96.68%

2016 96.95%

2017 97.57%

Interpretation:

Capital risk measures the portion of the owner’s equity to the total amount of asset of Shopno

Training & Overseas Limited. For the first three years the capital risk has fallen as the equity capital

gradually decreased when the total assets increased. After the three years from 2016 this risk has

increased because of higher owners’ equity when compared with its total asset. Overall the scenario

felt that Shopno Training & Overseas Limited have experienced a decrease and than increase capital

risk structure as shown in the diagram.

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DEGREE OF ASSET UTILIZATION:

2013 2014 2015 2016 20170.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

77.77%

92.83% 104.18% 107.31%98.49%

Degree of Asset Utilization

Ratios Asset Utilization

2013 77.77%

2014 92.83%

2015 104.18%

2016 107.31%

2017 98.49%

Interpretation:

This ratio has been rising and then gradually falling for our company as the total

operating revenue have been falling or rising very slowly when compared with the total

assets. The first four years starting from 2013 to 2016 and then fell to 98.49% on 2017. It

increased from over 77 % in 2013 to over 107 % in 2016 as the figure above predicted.

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12. Long term sustainability

From the long term aspect, the project needs a bit modification. There can be various

scenarios which can hinder the growth of the firm. These scenarios are listed below:

There can be no demand in the hospitality sector in Malaysia and Singapore

There can be visa problems for the students who got jobs in these countries.

The trainees who do not want to go to Malaysia and Singapore.

The hospitality sector is not profitable enough and there are layoffs.

To deal with these possible scenarios and at the same time grow as a firm we need to either

go for extending the training programs offered or extending the list of countries’ human

resource agencies with who we are affiliated with. However, the best option, according to us,

is to do both at the same time. This means that we will increase the number of countries and

number of affiliations and also we will increase the number of programs offered. This will

ensure our opportunity to explore in the other markets and at the same time work as a

defensive mechanism for tackling worst case scenarios.

Therefore, for the long time sustainability we will:

Extending the Programs Offered

In the first year we are providing only training on becoming Beautification, Driving and Cooking.

From the next year onwards we will also include the diploma course on becoming Chef. We can

utilize the kitchen even more and train some trainees in becoming different kinds of chefs and this

way we can increase the palate of diploma courses.

Nursing Sector:

There is a huge market demand for nursing sector so in future we can capture this demand

and can provide nurses to abroad. We can give them training on nursing to increase our

profitability in this sector.

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Extending the Programs Offered

Extending the Countries

Hotel Management:

We can give training on hotel management to groom women to become successful hotel management. This is a very attracted sector in abroad where hotels required enough workers.

EXTENDING THE LIST OF COUNTRIES’ HUMAN RESOURCE AGENCIES WITH WHO WE ARE AFFILIATED WITH

Currently we are sending our trainees in Singapore and Malaysia. However, from long term

sustainability we can include other countries. This may include Saudi Arabi, Thailand and as

such. This is not only increase the potential of the acceptance of the students but also it will

increase the confidence of the trainees on Shopno Training and Overseas Limited.

13. Conclusion

This is the end of our business plan. We initially invested Tk. 60 lakhs for starting

our institute. We are optimistic of our business therefore we are completely positive of our

operations. Though our investment counts low in terms of monetary options but we are

expecting profits from the third year. We have tried to demonstrate our utmost concern about

trying to serve the economy by giving praiseworthy training to those poor women at an

affordable cost so that no one is deprived of earning. We have even demonstrated our efforts

to make our economy prosperous and skillful by providing vocational and technical skills to

the candidates of our institute to make our female working population more feasible to use

their knowledge for productive output.

We plan to hire knowledgeable teachers and experts for our training side and our

vocational and technical training section. Our trainers are competent and they are down to

earth to act in the most humble manner to teach and give the students utmost attention from

whichever class they come from. We are the five members of the board of directors and we

also plan to check onto the administrative side of the institution. We will ensure clear and

notable administrative measures so as to ensure a highly disciplined and good culture in the

institute.

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Our opportunities regarding our existence is that we plan to reduce women

unemployment in the country due to lack of skills and training and this is the sole reason of

why we wish to provide trainings to our vocational and technical section candidates in a very

cost effective and efficient manner. We also wish to provide training to the women coming

from the lower segment of our society so that they are not seen working on the risky and

unsafe job. We wish to outgrow the capacity of our female from the sixth year so that we can

afford to give quality training to most of the female approaching us.

We plan to outgrow ourselves through expansion and this is only possible if we can

procure funds from the donators. Our purpose of serving the economy by prospering the mind

of our next female generation and our country’s labor force will definitely come to limelight

and we will be able to procure funds for our operations successfully.

There are certain risks that prevail in our operations. We plan to hire competent

trainers and expertise for the training we wish to provide but we are not initially in a position

to give high salary to our employees and staff. Therefore not all of them will be willing to

come and work for us for serving the economy. They will not be in a position to align their

interests with our overall strategic goals and mission. Also employees at time can leave their

jobs for better opportunities as we cannot afford to have an employee job contract with

providing them such a less salary. Also a change in government policy can hamper the

overall operations of our organization. Keeping all these in mind we hope to do better in this

sector and we are optimistic of our future.

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Business Plan

Documents

initial learner

early adapters

net profit

human resource

long term

human resource

final evaluation

sopno training