Business Strategy

Group Business Plan Project Group Business Plan Project

CAMP TO BANGLADESHCAMP TO BANGLADESH

1. PROFLIE OF THE TEAM

T ASHFIN Y AMIN B ASHAR 053-267-030Concentration: Finance and Business Policy & StrategyNorth South University

W ASIT S ABER J AFRI 053-217-030Concentration: Finance and MarketingNorth South University

MD. SADAR UDDIN CHOWDHURY053-304-030Concentration: Finance & AccountingNorth South University

SHAIKH ABU MAKSUD053-405-030Concentration: Finance & HRMNorth South University

TAHSIN UR RAHMAN061-486-030Concentration: Finance & MarketingNorth South University

HASIB MAHMUD053-336-030Concentration: Finance & MarketingNorth South University

STRATEGIC MANAGEMENT | MGT 489 PAGE | 1



2. COMPANY OVERVIEW

Camp To Bangladesh (CTB) is a private company formed by six individuals having 25% of

the company share each. Each of the partners of the company will be ascending a managerial

role in the organization and will be working as a team to take any sorts of decision regarding

the execution and development of the company.

CTB is basically going to provide its target customers with camp ground along with other

camping related facilities and equipments. Campers will be just coming with the mental

preparation for spending time under the open sky in tents and do different sports, recreational

and educational activities that they will be planning to do while camping. This planning and

all other relevant facilitation will be done by the CTB camping program and site - facilities

staffs. There will also be a side Flower Business where flower gardening will be done and

flower will be sold to potential customers.

2.1 MISSION STATEMENT

“The mission of Camp To Bangladesh is to enrich the lives of children, youth and adults

by developing a camping culture that would enable everyone to have a recreation where

they can also share their responsibility for the environment through the camp experience”.

2.2 VISION STATEMENT

“We believe that each of us plays an important role in the stewardship of our environment

—both natural and man-made. Through camping we can help children grow into

committed, responsible citizens by teaching them to appreciate, respect, and care for the

world in which they live. Staying in the midst of a bustling urban life, an exciting and

adventurous stay in a campground with family, friends or colleagues can be a great

recreation that can also enrich our knowledge and thus contribute for the positive change

in the world”.




2.3 KEY PRODUCTS/SERVICES

The key product of Camp To Bangladesh is providing with camping facilities. Apart from

this there will also be a side business of Flower plantation and selling in the camp ground.

The camping business will be having four types of camping program initially;

FAMILY CAMPING : :

Family camping will assist in spending the quality time with young ones and spouse

and with all those accompanying a person in her/his family camping tour.

Family camping can be a great adventure activity at a home away from home. Some

of the adventure activities that a family can be indulged at the campsite are - fishing,

cycling, boating, plantation, hiking, etc.

This will give an opportunity to enjoy some of the precious moments at family camp

site like dinner of mouth watering roasted chicken, loud laughing sounds of kid's

playing and the bash of fresh morning air on face. Camping with kids and with family

members is great family pleasure.

WEEKEND CAMPING : :

CTB will also provide the weekend camping package that can work as a good option

for those who just want to break free from their usual work schedule of daily life.

Camping gives a chance to relax and recharge to worn out batteries by indulging in

some past time activities such as angling, fishing, and nature walks and boating. This

sort of camping will basically comprise of a day long program and overnight stay in

tents.

SUMMER CAMPING ::

Summer Camping activity is an extreme adventure which is full of wonderment and

prudence and provides adventure- enthusiast a brimming gratification. On a summer

camping tour, one has to plan a little more cautiously since the weather is

unpredictable and volatile in Bangladesh. One must not underrate the whimsicality of

the summer weather; anticipate the worst so you will not have any repellent




stupefaction. But this is the most exciting particularly because of the weather. The

summer camping can include boating, fishing, swimming, bird watching and

photography etc.

WINTER CAMPING ::

The weather is favorable at this time as the volatility is relatively lower than summer

time. Also the winter season is rather a congenial time period for the people of

different age group to go for Camping. Hiking will be an encouraging activity at this

season along with bird watching. This camping will emphasize more on outdoor

games and entertainment activities.

FLOWER BUSINESS PRODUCTS:

The flowers that will be planted and sold from the camp ground will be mainly Rose,

Orchid, Gerberra, Heliconia, Anthorium, Gladiolus, Leather leaf fern and

Philodendron. The variety will increase in course of time and in accordance to

demand.

2.4 STRATEGIC OBJETIVES

OOBJECTIVEBJECTIVE:: Creating a culture to go for campingCreating a culture to go for camping.

There will be a public understanding of and support for the value of the camp

experience. If people are attracted in spending their recreational time by going for

camping that is close to nature and that entails positive learning for their children or

provides refreshing and adventurous time for them then they will continue taking this

service. Thus the quest to create a culture for camping will emerge.

OOBJECTIVEBJECTIVE:: Diversified market will be going for campingDiversified market will be going for camping.

An increasing number of children, youth, and adults of feasible social, cultural, and

economic groups, will have a camp experience. CTB will provide products suitable for

different age. Everyone will be able to find relevance and the need to go for a camping

trip. This will also supplement in building the culture for camping.




OOBJECTIVEBJECTIVE:: The camp experience will be of high qualityThe camp experience will be of high quality.

Any experience without quality cannot be sustained. Thus the service provided to the target

market to go for camping must entail service that would be regarded as value for money and

time spend in the camp ground is imperative to attract customers and retain them so that they

keep on coming for more camping and contribute in increasing market share and improving

services of CTB.

OOBJECTIVEBJECTIVE:: Contributing to the development of our nature by creating environmental Contributing to the development of our nature by creating environmental learning for all.learning for all.

Whoever will come to camp in CTB will be experiencing many activities that are environmental

friendly and socially responsible in nature. CTB will also have a flower plantation business.

Apart from generating cash for the financial support for the whole venture, this flower business

will also work in enhancing the overall beauty of the campground. Most importantly, CTB

staffs will be providing useful information about how to plant and nurture them to all the

visitors of the campground with the vision of enhancing the as general knowledge CTB visitors

of all ages. With the feasibility and opportunity, CTB will also incorporate fishery and firming

in the campground to augment the same vision.




3. INDUSTRY OVERVIEW AND ANALYSIS

3.1 PEST ANALYSIS (Political & Legal, Economic, Social and

Technological)

POLITICAL AND LEGAL FORCES : :

Political Instability and influence: Political instability is the biggest barrier in

Bangladesh for any business ventures. Frequent strike or siege activities will hamper the

transportation to the location challenging. This will also affect the delivery of the

flowers to the point where vendors will come to pick them. Unstable security system

will also make it challenging to attract potential target market. Liaison with a particular

political party may have a dramatic influence in the start up and the continuation of the

business. Also the local mastans may also pose potential risk for the business if strong

political link in not maintained with the political parties.

Trade License: CTB will have to acquire a trade license from the City Corporation. A

certified copy of the Articles and Memorandum of Association of the Company, a copy

of the certificate of incorporation, statement of bank solvency of the company, and a

TIN (taxpayer’s identification number) Certificate of the company are the other

documents needed in this regard.

Tax authority: Registration with the concerned taxation authority (Deputy Commission

of Taxes of Company Circle, Zonal Taxation Department) under the National Board of

Revenue (NBR) and procure a TIN (Tax Information Number) for the new company is

required.

Register for VAT: Separate registration for the Value Added Tax should be obtained

from the Customs, Exercise and VAT Commission under NBR. The various Value

Added Taxes (VAT) incurred while operating will be regulated by the zonal “Customs,

Exercise and VAT Commission”.




Clearance Certification: CTB will need to prepare and submit an environmental impact

assessment report to the Directorate of Environment (DoE) to obtain a clearance

certificate for running the business.

Privatized security forces: The availability of security forces provided by many

renowned companies like ‘Group 4’ can be used to maintain the security of the camping

sites. These forces are highly accepted and relied upon by the people in Bangladesh.

Availability of suitable land and Leasing: Suitable land for making camp ground is

available in different parts of the country. Along with this the government is also

supportive in providing with government lands for ventures that have positive social

and environmental implication within it. Land leasing and buying can be easily possible

through this kind of presentation. Adding to that if the top management or owners of

any business venture possess strong political liaison with ruling part, then land

acquisition can be done with a very insignificant financial involvement. Land related

issues for flower business will be not significant as the land to be used in the flower

business will be a part of the campsite.

ECONOMIC FORCES:

Income growth and GDP: The GDP growth has been calculated to grow by 5% in the

recent future. The income level of the middle to upper class population of the country is

also in the growing trend. Thus standard of living is going to be improved in these

social strata as well.

Infrastructural Development: There are significant infrastructural developments taking

place in Bangladesh. Transportation and telecommunication is developing in a

significant pace. However, electricity, water and gas supply are one of the crucial

utilities that are not being able to supply as per the market demand.

SOCIAL FORCES:

Attitude on Recreation and tours: People are growing an attitude towards experiencing

with new products and servicing. Both in entertainment and tourism business, it is clear

that people are growing the trend of spending a considerable amount of their time and




money in entertainment or tours and travel. However, majority of the target market of

CTB are more prone to spend their vacation or recreational time in the near countries

like Singapore, Malaysia, Thailand, Nepal, India etc.

Climate Change: Bangladesh being a tropical country will have a seasonal

favorableness for the business. The camping season thus will be more favorable in the

winter seasons rather than in the summer.

Recreation & Tours in group: people prefer to travel and tour in groups mostly with

their families. Now-a-days, people most specifically college and university students and

corporate people prefer to go to tours and recreational activities with their friends and

colleagues as well. Staying in the midst of a bustling urban life, an exciting and

adventurous stay in a campground that is close to the nature will also be taken

overwhelmingly by the educated class of the country.

As for the Flower Business, there is large demand for flowers amongst people but the

supply of flower is not as adequate to meet the demand. A lot of good flower vendors

are existing and also many big hotels and other such organizations are in need of daily

flower supply.

TECHNOLOGICAL FORCES:

Use of Internet: The use of internet has been increasing exponentially in Bangladesh.

Moreover, with the emergent of optical fiber, this usage and other related facilities will

grow potentially. The internet will help in promotional activities, booking and other

related activities as well. The networking and follow-up with the customers will also be

done within favorable cost via internet.

Telecommunication: People are growing the habit of using cell phone and they are also

responding to the various promotional activities that are being done via this mode. the

increased use of cell phone users and the existence of dynamic and corporate friendly

telecommunication service providers can be used to promote the business’s products

and offering via cell phone lines to potential customers.




Media Revolution: The revolutionary advancement in television, print, visual and other

media has made the promotional activities become more intense, creative and easily

available. This will also help is promoting and creating the need amongst the target

market of the business venture.

3.2 PORTERS FIVE FORCES

I. THREAT OF NEW ENTRANTS : :

At present, the threat of new entrants is relatively low in this industry or strategic group;

although many fragmented industries are characterized by low entry barriers.

High Capital Requirement: The capital requirement in this project is quite high, which

requires any new company to make a heavy investment to setup plant. Because of large

amount of land and other fixed assets like buildings, pick-up vans, generators etc;

initially any kind of set up in this industry would require high initial cost. Therefore, it

would discourage new entrants as any loss in the new business would mean the loss of

the whole initial investment.

Switching Costs: The switching cost in this industry is low, which could encourage

some firms to enter in the market and take away our customers by providing better

service at a lower cost. This might indicate that threat of new entrants is high in tourism

industry. However, it must be understood that this kind of service industry also needs




some expertise and experience, which can be developed over the years. In this industry,

a firm must have a clear knowledge regarding customer demands and preferences and

how well they can be satisfied. At present, level of expertise available is quite low in

this industry. Therefore it would be difficult for firms to know their customer just in

few months and it’s also difficult for them to predict whether this business will click or

not. It would discourage also new entrants.

Economies of Scale: As the first mover, we will have relative cost advantage in future

associated with increasing customer base that will lower our cost structure. Because of

initial high investment and first mover’s advantages, our company will be able to attract

and deal with more clients at a time. Also, we will be able to serve customers better at

low cost because of specialization. Thus, we will be able to achieve economies of scale

in the long run. However, those firms who would start at a small scale would not be

able to achieve economies of scale and thereby would not be able to attract customers to

that extent or to maintain high profit margin.

Brand Loyalty: As the first mover, we may be able to establish significant brand

loyalty, which might be quite expensive and difficult for later entrants to break down.

The threat of new entries in flower business is relatively high. The flower production

and selling industry has not been established commercially as yet. Most of the flower

gardens from the rural segment is being managed and lead by some NGOs. Other than

that, there is some small number of flower producers in the country. However, the

potential and demand for flower business is very high. Switching cost to new flower

suppliers is low and there is no need for brand loyalty in this industry. Gaining

economies of scale is also quite easy for the new entrants at this stage of the industry.

II. INTENSITY OF RIVALRY AMONG ESTABLISHED COMPANIES : :

As tourism industry is a fragmented one, competitive struggle among companies in the

industry to gain market share from each other is high.

Industry Demand: The tour and travel industry normally attracts a very small segment

of population in our country and therefore, high intensity of rivalry is there between

competitors. The major rivals of our camping project are picnic spots, package tours




and resorts. As this is a fragmented industry, price is set according to the demand and

supply of buyers and sellers. Therefore, as in fragmented industry, competitors like to

take each other’s market share by offering low price and better quality. Again, as

switching cost is low in tourism industry, higher quality services with better features

can attract more customers. So, the rivalry can turn even more intense.

Growth of the Industry: The growth of the industry is slow as income level of general

people in the country is low; therefore, spending on recreational activities is quite low.

That also results in intense competition as competitor is competing to sustain their profit

and to have a significant market in such small market. Foreign competition is high too

as many would like to spend abroad at different tour and travel projects. Therefore the

firms in this economy face a significant amount of pressure to attract customer to come

to their and have some nice time. As volume of buyer is quite low comparing to tour

and travel firm competition is really intense in this economy. However, the trend

towards local tours and travel is increasing favorableness.

Diverse Competitors: In the tourism industry, we have competitors like service

providers of package tours, holiday resorts, picnic tours; which are quite diverse in

nature. This might lead to high intensity of rivalry.

High Fixed Cost: Maintaining a camping project might require high fixed cost, which

results stronger rivalry.

Exit Barriers: Exit barrier is quite high for our project because of the fact that

investments in assets such as camping equipments and operating facilities are difficult

to be sold off. It might be difficult to get fare value of equipments after selling off. This

indicates a high cost of exit.

The intensity of rivalry amongst the existing flower production business is very low.

The whole industry is not yet commercialized. Growth of the industry is also not very

rapid. At the same time exit barrier is not significant along with the low involvement of

fixed cost.

III. BARGAINING POWER OF BUYERS : :




Bargaining power of buyer is high in this tourism industry.

Bargaining Leverage: In this industry, the buyers have the ability to bargain down

prices charged by companies in the industry and to raise costs of these companies by

demanding better services. As buyers are low in numbers, competitors would want to

provide their services at a lower cost.

Lower Switching Cost: As it costs less time, money and energy for a customer to

switch from the services offered by one company to the services offered by another

company in tourism industry; bargaining power of buyers is high.

Substitute Products: Tourism industry has substitutes, so that customers can switch to

that. Televisions and movies are big recreations for general people. There are also

theme parks close to city, where people could go and enjoy; instead of going to

camping. Therefore, bargaining power of buyers is high and they can put pressure on

our company to lower cost and to provide better services.

In the business-to-business flower production industry, the bargaining power of buyers

is relatively low. This is because the number of suppliers is low and thus they need to

rely on some very few suppliers. There is also no substitution to the natural flowers in

this regard.

IV. BARGAINING POWER OF SUPPLIERS : :

There is no potential threat from supplier as in forward integration. Here, suppliers do

not have that kind of bargaining power as there are not much raw materials or

inventories involved in the tourism industry. There might be some inventory involved in

our side business of flowers. In general, our camping company would buy at bulks, so

we might have low bargaining power when we go to buy tents and other accessories of

camping. Supplies of camping equipments can also be imported from abroad. However,

this would not put much pressure on the company as actual purchase of these things to

total investment would be quite low.

In the flower business, the bargaining power is basically in the hands of the suppliers.

This is because there are very few suppliers and the demand exceeds the supply. Along




with that a perishable goods like flower needs constant supply as well. Thus the power

is more towards the suppliers in this industry.

V. THREAT OF SUBSTITUTES :

Threat of substitute is quite high in this industry. As there are so many things to do for

recreation, so that customers could easily switch their recreation mode it they are not

satisfied with tourism industry. Television and movies could take away our customers.

Also, people could go to theme parks rather than go for camping. As these substitute

companies also provide their services at low cost, customer can easily switch to other

modes of recreation. Thereby, it is important to always come up with new concepts to

serve the customers at low price with the superior quality.

Flower business does not have any threats from substitutes as natural live flower cannot

be replaced by anything.

3.3 PORTER’S DIAMOND MODEL


Factors Endowment

Factors Endowment

Intensity of Rivalry

Intensity of Rivalry

Related Industries

Related Industries

Demand Conditions

Demand Conditions

GovernmentGovernment



I. FACTOR ENDOWMENTS :

Factors of production of our camping project in the home country include Basic factors

like labor, raw materials, capital, and Advanced factors such as physical infrastructure

( at present, we have much improved roads and transportation system) and utilities. To

explore the role of factors in the competitive advantage of a nation, the concept must be

made more meaningful to industry competition. This concept is also relevant for the

flower business. Factors of production are often described in very broad terms such as

land, labor, and capital, which are too general to bear on competitive advantage in

strategically distinct industries. Factors can be grouped into number of broad categories:

Human Resource: Bangladesh is a country with ample availability of cheap labor

which puts us in an advantageous position that labors are readily available. However,

there is not enough trained workforce in our country. Human resource plays an

important role in our business as sophisticated and trained workforce is very important

for such a new concept in our country. Trained people are also required for our flower

business. Farmers with experience in gardening will also be possible to recruit for the

camp business.

Physical Resource: Superior physical resource is required in order to achieve a lower

cost structure. As we don’t have to import our basic materials, this business can be very

profitable even though it’s initial high investment.

Knowledge Resource: In order to innovate and to be accustomed with changes in

people’s taste, superior knowledge resource is crucial in determining competitive

success or failure of such a project. The flower business will not require intense

knowledge rather the agronomical counselor will be helping in making the human

resource related to flower business get further knowledge for efficiency.

Capital: The capital requirement in this project is quite high. The stock market in

Bangladesh is not very developed yet to generate equity and capital for local STRATEGIC MANAGEMENT | MGT 489 PAGE | 14

ChanceChance



companies. However, the banking industry is quite structured and there are quite a

number of banks in Bangladesh from where debt capital can be obtained through term

loans for a fixed tenure. Here, the only problem is that the interest rate in Bangladesh is

quite high compared to other companies. As for the flower business the capital

requirement will not be significant due to the synergistic utilization of resources with

the camping business.

Infrastructure: Bangladesh has good prospects for starting a camping business along

with the flower production facility, because of its supporting infrastructure. Our project

can be constructed feasibly in the Southern region of Bangladesh, especially in

Chittagong hill track area initially, where proper spaces are available for camping.

These areas will also support the proper development of our flower business. The

eventual expansion in Khulna and Sylhet is also feasible due to land availability that is

suitable for camping.

II. LOCAL DEMAND CONDITIONS ::

Size of Home Demand: As we are introducing a new concept in Bangladesh, size of

home demand is low to moderate at the beginning. However, the awareness or

knowledge about camping and lack of camping experience can work as a big challenge

initially. Nevertheless, CTB will be having the upper hand in creating the camping

culture and manipulating it in such way that the culture complements the CTB business

mode, resources and concept. Moreover people, especially the youth, are more

interested today to go for adventure trips and projects like camping should attract them.

Thus, we are expecting a growing demand for our business over the time. The flower

business has high demand and customer base for flower is diverse.

Number of independent buyers: Bangladesh is the eighth largest country in the world

by population and there should be a good number of independent buyers in this

business. Though the market size with suitable income level for CTB is relatively low,

still it is growing and increasing in number in many diverse market segments. Along

with that the independent flower buyer in the business level is sufficiently big in

number. The growing number of hotels, convention halls, wedding halls and office

building are the independent buyers of flower apart from the usual flower vendors.




Internationalization of home demand: If this business can be further expanded and

becomes successful; there is a high possibility of the internationalization of the home

demand. Successfully meeting our local demand would be the indication of our ability

to provide international standards of camping facilities. Camping in Bangladesh can

thus attract foreigners. However, this is a very long-term plan that CTB can take after

creating substantial camping culture and large market share in the local market first.

Apart from this, the long-term plan also would entail the supply of flower in the

international market after meeting the local demand.

III. COMPETITIVENESS OF RELATED AND SUPPORTING INDUSTRIES ::

The presence of related industries is moderately high. The benefits of investments in

advanced factors of production by the supporting industries have spilled over into the

industry and have helped the industry to achieve a strong competitive position

internationally. Supporting industry of camping equipment provider industry is in some

ways competitive and some other ways it is not. For instance, camping equipments like

boats, fishing rods, torch, lantern etc are available in good quality and quantity in

Bangladesh. However, camping equipments like tent and sleeping bags are not available

in good quantity and competitive price in Bangladesh. For this these equipments needs

to be imported from the neighboring countries like India, Malaysia or Singapore Our

supporting industries could also be baggage industry (provider of back-packs for

camping), shoe industry (provider of hiking shoes, snickers, boots etc), industry of soft

drinks and mineral water, and industry of dry and canned foods. These are available in

good quality and quantity in Bangladesh.

The availability of pesticides, fertilizers and also flower seeds are in good state under

the prudence of different local NGOs and nurseries. The hard box needed to perverse

and deliver the flowers are also available in the country at a reasonable price. Thus the

related and supporting industries for the flower business have favorable position in the

industry.




IV. INTENSITY OF RIVALRY :

Strategy, structure and rivalry of companies within Bangladesh are moderately high.

Although we are the first movers in the camping business; businesses like resorts,

theme parks, package tours will compete fiercely in the market to take our market share

which would be working as indirect competitors for the company. On the other hand,

the rivalry in the flower business is relatively low. There is not much flower production

business in Bangladesh though the potential for such venture to set up is high.

V. THE ROLE OF CHANCE AND THE ROLE OF GOVERNMENT :

The role of chance and the role of government are significant for our camping business.

In a market of frequently changing customer demands, the role of chance plays a crucial

role in determining competitive success or failure. Although this is an unconvincing

explanation for persistent success of any company, it depends a lot on chances whether

or not the products/services offered would click in the market.

The role of government is also vital in determining national competitive advantage

through imposing various laws and regulations. The corporate tax rate in Bangladesh is

40%. However the government exempts double taxation to encourage foreign

investment. Government should encourage such projects promoting environment by

exempting taxes. Acquisition of large size of land that is supplemented by gas,

electricity and infrastructural support greatly depends on the governments’ positive

response to the whole venture.

3.4 SWOT ANALYSIS (Strengths, Weaknesses, Opportunities

& Threats)

The comparison of strengths, weaknesses, opportunities and threats of our camping

project is given below.

STRENGTHS

i. First mover of camping business in Bangladesh




ii. As the first mover, we may be able to establish significant brand loyalty, which

might be quite expensive for later entrants to break down.

iii. Competitive pricing compared to rivals is an important strength.

iv. We will be able to ramp up sales volume ahead of rivals and thus reap cost

advantages associated with the realization of economies of scale and learning

effects.

v. Although initial costing in this project is quite high, overall cost will decrease over

time.

vi. As the first movers in camping business, we may be able to create switching costs

for our customers that subsequently make it difficult for rivals to enter the market

and take customer away from us.

vii. Our accumulated knowledge related to customer needs, distribution channels and

service quality will give us a knowledge advantage that later entrants might find

difficult or expensive to match.

viii. This is totally an environmental friendly business.

ix. In this project, we will have a side business of flowers, which is quite attractive

and can be profitable.

For flower business, the campground land, transportation in the same vehicle as the

campers will be transporting, having the same councilor and team for agronomical

inspection will all be enabling the business to lower its costs and quickly gain

economies of scale. Also a significant portion of the flower can be sold in the campsite

to the camp customers is also a creative way of creating synergy between the two

business in terms of its customer as well.

WEAKNESSES

i. Initial investment and setup cost are quite high in this project because of

possessing a greater number of fixed assets, especially land.

ii. We will be the new entrepreneurs in the market. Thus, we are more prone to make

mistakes because there are significant uncertainties in the new market. Thus, lack

of experience might be a significant weakness.




iii. We have to bear significant pioneering costs that later entrants do not. Later

entrants might be able to free-ride on our investment in pioneering the market and

customer education.

iv. In this project, we run the risk of building the wrong resources and capabilities,

because we are focusing on a customer set that isn’t going to be characteristics of

the mass market.

v. Limited marketing budget is also major constraint in our business.

vi. Lack of educated and trained personnel in this area of business is also a major

weakness of our project.

The biggest weakness for flower business would be its location from its vendor. Because the

camp site is going to be in a relatively remote area the delivery of flowers it susceptible

probable delay. The limited lifetime of flower is also a big weakness for the business.

OPPORTUNITIES

i. There is a high possibility of future expansion of the project. Later, we are

planning to expand our business to Sylhet, Sunderban etc.

ii. We can make strategic alliances with low performing Resorts in various parts of

our country and can further expand our business.

iii. Partnering opportunities are there for further growth.

iv. A strong brand image can be built by offering higher of quality services.

v. As the culture or trend toward going for camping is not established in Bangladesh,

we will be able to manipulate in creating the culture in such that would

complement our business strategy, resource, services etc.

There are many NGOs who are basically getting supply of flowers from many farmers

and distributing them to vendors. CTB can get affiliated with these NGOs and get

more market share from this. As campsites will grow, so will the flower business. This

will enable this side business to offer potential customers with diversified and varied

number of flowers. Along with the expansion the flower business will also become

able to increase its capacity of supplying flowers in both the local area of the campsite

and also in other close areas as well.




THREATS

i. Continuously changing customer demands and preferences can put our project in a

risky position. Moreover, it is always quite uncertain whether or not the

products/services offered would click in the market.

ii. Emergence of new competitors can be a threat to our project.

iii. Later entrants may be able to learn from the mistakes made by us and improve

their businesses.

iv. Security problem can be a major threat in this project as it might be difficult to

provide proper security to such a wide and open area.

v. Political instability in our country can discourage people to go for camping in

remote areas.

vi. Weather instability can be a threat to our camping project.

vii. Limited knowledge and lack of camping experience amongst the potential target

market.

Weather instability is a great threat for flower business as well. Also political instability for

delivery of flowers is also a threat for flower business along with camping.

3.5 INDUSTRY LIFE CYCLEThe tourism industry of Bangladesh was performing badly even ten years back. However,

people have started gaining interest in the local traveling trend and style. Many people of

different age segments now are interested to go to Sundanbarns, Coxs Bazar, Rangamati, and

Saint Martins Island etc.

Different SMEs are coming up with packages and modern equipment and sports vehicle for

people to enjoy their recreation by traveling locally. However, due to lack of security, natural

calamity, and socio-economical factor; the industry potential is volatile and is subject to

unforeseen development.

The number of competitors both direct and indirect to CTB are large in number is very

fragmented. They are unstable in number. Purchasing pattern of customers shows that they

are price sensitive and are not willing to spend large amount in local tourism. Moreover,

loyalty with certain company can be seen amongst few of the potential customers. However,




segments like university students, families and fresher of the corporate world are prone to

repeat or add-on purchases.

Technological usage amongst the existing companies is not so significant as per the result

found by Katalyst Bangladesh in one of their research. There are not user friendly and

advanced websites in most of the tours and travel companies. This fewer competing usage of

technology is existing. Additionally, the research also says that the human resource training

for tourist guides is there but their performance is not up to the mark.

With the above discussion in regard, the tourism industry is currently in its growth stage as

depicted below.

Peoples buying interest for flower have grown in recent years more significantly.

There are also many commercial organizations coming up with the daily need of

flower in their workplace. That is why; the demand for flower exceeds the supply.

Entry in the flower business is also relatively easy. However, production of flowers

and its supply has started long before. However, the industry holds high potential for

new ventures to take the business into commercial level and execute it in a large scale.

Taking all these into regards, it can be said that the flower business is in its early

growth stage.

3.6 COMPETITIVE PROFILE MATRIXAs the first mover in the camping business, we don’t have any direct competitors. However,

we can compare our position with two of the major local package tour providers. The CPM is

done assuming that the business is in its second year of execution


GrowthDemand

Time



CTB is going to be emphatic about the marketing, service quality and expansion plan in

particular. The initial financial investment of the company is huge and the recovery period of

the financial investment will take two to three years at least. Though CTB will be offering

low price that is in balance with the overall industry, still this would be a relatively a low

strength for the company. However, this will help in attracting large number of customers and

thus try to avail economies of scale.

The existing enterprises in this industry are relatively practicing low level of marketing

activities. Additionally there are valid complaints from the customers about the service

quality of the existing companies in this industry. Moreover, these companies are already

providing package tours to most of the locations where other supporting facility exists and

where traveling are possible. Camping is such an activity under the tourism industry that does

not strongly require large supporting facilities in terms of accommodation, transportation,

food etc. moreover, with the initial start up in the Chittagong hill tracks, CTB is going to

expand in Khulna and Sylhet. Additionally, the company is going to form alliances with some

big resorts and picnic spots as well.

If the above assumption becomes correct in reality then it is seen that CTB will have a strong

position in the industry. However, the existing rivals as indirect competitors can also bear

very close second position in the industry.


CTB Galaxy Holidays Bengal Tours & Travels

Wt Rating Score Rating Score Rating Score

Price Competitiveness 0.12 3 0.36 4 0.48 3 0.36

Fin position 0.20 2 0.40 4 0.80 3 0.60

Expansion potential 0.18 4 0.72 2 0.36 2 0.36

Marketing Activities 0.25 4 1.00 2 0.50 3 0.75

Service quality 0.25 3 0.75 4 1.00 3 0.75

Total 1.00 3.23 3.14 2.82



4. MARKET OVERVIEW

RESEARCH ANALYSIS:

We have conducted a survey research to assess the potential demand for camping.

Additionally, a preliminary understanding of demographics of the target market profile and

their preferred duration for camping are two main focus of this research. The exploratory

research had a sample size of our survey was 75 which were divided equally between four

segments; each segment holding respondents. Our segments were;

□ Corporate Representative from Motizheel and Gulshan Area

□ Households from Gulsha, Banani, Dhanmondi, Baily Road and Uttara.




□ University students from NSU and AIUB

□ School & College students and authority of Viqarunnisa Noon School and College,

Scholastica and BIT.

Note: The sample questionnaire that was given to this target sample is affixed in the appendix of this

document.

OUTCOME OF THE RESULTS

□ People from the age 18 – 27 (75% of the segment) and from the age 34 – 45 (60% of the

segment) showed the highest level of positive response to the idea of going for camping.

□ As for the average camping day out, most of the people preferred it to be between 2-3 days

maximum which in numeric was 69.8% of the total respondents.

□ 87.3% Respondents who showed interest towards camping has a monthly household

income of at least Taka 50,000 and above.

□ On an average about 90% spend around Taka 500-1000 in their local recreation for one

day. Thus they are ready to spend in this range for their camping trip as well.

□ All of the respondents said that they would repeat going for camping if their first

experience is of quality and is perceived a good value for money.

□ All the school and college authorities have shown positive response to the idea of camping

with a flavor of educational aspects in the whole trip for the students.

□ However, one big challenge was that many of the respondents were not totally aware of the

way how camping is done. This would initially require building strong awareness and

eventual culture for camping. Nevertheless, as the first mover, CTB will get the opportunity

to manipulate in building such culture and trend that would be suitable for the organization

and its business.

4.1 POTENTIAL CUSTOMERSThe target market of CTB will be having four segments.




PROFESSIONALS : The new entrants or young professionals, who belong to the age group of

26 – 31 years, are mostly bachelor or newly married individuals. They have a preference for

spending their weekend with friends or do activities that are refreshing and enjoyable. A

small and enjoyable Weekend camping will be attractive to them where they can spend time

as couples or a group of friends/peers. The minimum monthly income of this age group is

taka 30,000 - 50,000.

Another group of the corporate segment can be from the age group of 32 – 45 (or more)

years. These people are more family oriented and would want to go to places where the

whole family can have fun and enjoyment together. This group of people will prefer to go for

Family Camping which is flexible in terms of duration that is convenient for the customers.

The minimum monthly income of this age group is taka 70,000 – 1, 50,000 with an average

family member of five.

SCHOOL/COLLEGE STUDENTS : students of different schools and college will be provided

with the service of going for camping which will be arranged from their schools or colleges.

Because our cultural norms prefer people of this age i.e. 12 – 18 years, to be reliant on their

parents and teachers that is why it would be encouraged for the teachers along with the

parents to accompany them in their camping trip. This would help the company to deal with

the possible resistance regarding this particular age group. Thus both Summer Camping and

Winter Camping will be appropriate for them. The minimum monthly income of this age

group is taka 50,000 – 80,000 with an average family member of five.

UNIVERSITY STUDENTS : University students have a high tendency to go for trips during their

semester break. The age group for this segment is 19- 25 years. One recent trend of this

segment is going in groups to Shundarban, Cox’s Bazar and other places in Bangladesh with

their friends and classmates. Thus camping will be an attractive option for them to pick. This

segment can be served with Weekend Camping, Summer Camping, Winter Camping and even

in some cases with Family Camping as well. The minimum monthly income of this age group

is taka 70,000 – 1, 50,000 with an average family member of five.

HOUSEHOLDS : all the other segments basically infiltrates from this particular segment. The

family oriented cultural norm of Bangladesh puts a great emphasis on parents’ acceptance

about a particular activity. That is why; school, college and even university students depend




on their parents’ permission to go for trips. That is why; this segment is a very important

segment for CTB. The decision maker of this segment is usually of the age group of 32 – 45

(or more) years. The minimum monthly income of this age group is taka 70,000 – 1, 50,000

with an average family member of five. This segment will be attracted towards going for

Summer Camping, Winter Camping and Family Camping.

For the Flower Business there will be mainly two types of segments.

CORPORATE CLIENTS AND FLOWER VENDORS : the corporate clients are those who buys

flower in bulk regularly. These clients range from big organizations like hotels to the flower

vendors in the cities. They would be basically bidding for the price of the flower and will

give price quotes. Based on that the client will be selected and thus flowers will be

transported and sold to those clients. This is the way the flower marketing is done in

Bangladesh.

CAMP GROUND VISITORS : a significant portion of the flower will also be sold in the camp

ground amongst the visitors or campers. Thus they will be holding a potential market for the

flower business besides the camping business. The camping target market all age group can

be attracted towards buying flowers from the camp ground as flower is loved by all.

4.2 SIZE AND GROWTH OF MARKETThe population statistics in accordance to age for the year 2007 is depicted below. These

depictions indicate the potential size and growth of the target market for CTB.

Age structure (2007 est.)

0-14 years: 32.9% (male 24,957,997/female 23,533,894)

15-64 years: 63.6% (male 47,862,774/female 45,917,674)

65 years and over: 3.5% (male 2,731,578/female 2,361,435)




The age structure depicts that the largest portion of the population of Bangladesh is between

15-64 years. Also a significant portion comes from the 0-14 years of age portion. CTB’s

target market comes from these two target market.

UPPER TO MID – INCOME LEVEL POPULATION:

However, CTB will be initially targeting upper-income level to mid-income level

population of the country. These portions of the income levels occupy about 35%-40% of

the total population. Nevertheless, this percentage is increasing at 1.4% yearly. People are

also growing the habit of going for local tours and travel and this trend is predominant in

the upper-mid and mid-income level portion of the population. Also from our survey this

portion of the population has shown significant interest to get the camping experience if

provided in Bangladesh.

Enrolment in Primary, Secondary and Tertiary:

2005

(in million)

2006

(in million)

2007

(in million)

Enrollment in Primary School 108.9 106.1 107.5

Enrollment in Secondary School 50.3 51.3 51.3

Enrollment in Tertiary School 6.5 8.1 8.7

The enrollment in all levels of education is increasing gradually. With the stable and

increased number of educational institutions in all level of the education, the opportunity for

getting higher education is increasing. The percentage of increase is about 1.2% on an

average in all the levels of the education in Bangladesh. With this the eventual growth

potential of CTB’s market is seen to be positive. A significant portion of the education level,

which is potential for CTB, is the tertiary education. The statistical depiction clearly shows

that the increasing number of enrollment in the tertiary education level is significant. With

the increased number of students getting enrolled in private universities around the country,

the growth of this particular segment can be regarded as holding strong potential as a market

segment for CTB.


LOW COSTLOW COST

DIFFERENTIATIONDIFFERENTIATION

Local Tours & Travel

Agencies

Local Tours & Travel

Agencies

Camp ToBangladesh

Camp ToBangladesh



4.3 STRATEGIC GROUP ANALYSIS

The existing tours and travel companies in Bangladesh are providing with package tours that

are generic and low cost. Differentiations in terms of products of these companies are not

available. They are more or less providing the same package and without much distinction

from each other.

CTB will be following a mix of differentiation and low cost strategy. From the environmental

analysis, it is evident that people in Bangladesh are growing the attitude to go for newer

models in terms of traveling and recreational activities. However, the part of their income

which they would be willing to spend on these activities will not be differing amongst

different services and options that they would have in their hands. That is why; CTB has to be

price sensitive as well. At the same time, CTB will be having a large initial investment which

would be spent as the setup cost. However, in the eventual years, the cost will be mostly

spent on marketing and administrative activities, which will be significantly less than the

initial costs. Thus CTB will be able to lower its costs eventually. However, the idea of

camping itself will be different than all the existing tours and travel companies products.

Apart from that, the CTB will be giving different products (i.e. camping programs) using the

same resources. Along with that, CTB will be constantly coming up with newer programs and

diversified campsites in the eventual years. That is how; CTB will be following

differentiation strategy as well.


RETAIL RETAIL SELLINGSELLING

DIRECT SELLINGDIRECT SELLING

Local Tours & Travel Agencies,

Camp ToBangladesh

Local Tours & Travel Agencies,

Camp ToBangladesh

CUSTOMER CUSTOMER RESPONSIVENESSRESPONSIVENESS

INNOVATIONINNOVATION/CREATIVITY/CREATIVITY

Camp ToBangladesh

Camp ToBangladesh

Local Tours & Travel Agencies

Local Tours & Travel Agencies



All the existing tours and travel companies are basically following direct selling techniques.

CTB will also be going for rigorous direct selling approach as it is the most suitable form of

selling the idea to the potential market. Also to make the culture or trend towards going for

camping, people need to be aware of the whole idea and process with precision and with

positive reinforcement. The direct selling force will be the most appropriate mode for this

initially.

In a research conducted by Katalyst Bangladesh, it was found that the tours and travel

companies in Bangladesh are not significantly utilizing customer feedback for improving the

quality of their work and service. Additionally, though the employees are sharing ideas they

are not being strongly implemented to follow the strategic mode of innovation.




CTB will be giving high emphasis on customer responsiveness. All the customers will be

provided with evaluation before their departure from the campsite. The evaluation would try

to find out about the satisfaction level of the customers regarding their camp experience in

CTB. Additionally the evaluation will be trying to find out about customers satisfaction on

the service provided by the guides and the different people and facilities-equipment provided

by the authority in their camp experience in CTB. This would enable CTB to assess the

current service status and thus they would be improving accordingly by being customer

responsive.

The sales force and the camp guides will be basically working in teams and constantly

coming up with newer programs for the customers. Additionally the eventual expansion in

different parts of Bangladesh will enable them to come up with newer and creative programs

for camping. Thus a culture for constant innovation and creativity will exist.

5. OVERALL STRATEGY




5.1 LONG-TERM STRATEGY

CORPORATE LEVEL STRATEGY : :

Strategic AllianceStrategic Alliance::

CTB will be forming strategic alliance with holiday resorts and picnic spots, especially

which needs turnaround in their business. This would make CTB to use fixed assets like

land, building, infrastructure other resource of the allied company. In relation to that,

CTB would be giving the allied company with strategic plans, trained human resources,

dynamic sales forces selling the allied companies services etc.

The advantage for CTB will be this that an easy way of acquiring land that needs less

investment for modification will be possible. Thus, investment for newer campgrounds

will be less. Also a significant portion of the market share gained by the resort picnic spot

will add digits to the market share of CTB.

ExpansionExpansion::

CTB will also go for expansion mainly in Khulna and Sylhet by leasing more lands in

those areas of the country. Expansion in those areas will help in creating distinctly new

programs that would be supported by these locations. Thus more differentiation for the

company and options for the customers to choose from will be available. Also in this way

CTB will be able to retain its loyal customers who would be interested to go to the new

camp grounds of CTB after their satisfactory experience in the first site.

Fishery and Firming:Fishery and Firming:

Like the flower business as our side venture, CTB will also eventually go for fisheries and

firming. This is because CTB will be maintaining fishes in its ponds and lakes for the

fishing activity in the camping program. Thus eventually commercially doing fishery

would be possible with many of the existing resources. Same would be possible for

firming. Moreover, this would also give ways to add newer agenda in the educational

aspects of our camping business.




BBUSINESSUSINESS L LEVELEVEL S STRATEGYTRATEGY: :

The business level strategy will be a mix of both low cost and differentiation strategy.

Low CostLow Cost::

CTB will be having large initial setup cost. However, in the eventual years the cost of

operating the venture will not be so significant in comparison to the starting year.

Moreover, through experience curve the company will be able to lower its costs in

multiple aspects like training, program design, recruitment, maintenance activities etc.

Thus, CTB will be able to continue lowering costs gradually. Thus, with the lowering of

costs CTB will also become able to lower its price for the customers to avail the service.

As for the flower business low cost and thus low price will be both the short term and

long term business level strategy. This will be possible through the synergy in land

utilization and maintenance cost reduction through doing it by the project team strategy

that is briefed in the short-term functional level strategy.

Differentiation:Differentiation:

Broadened Market Segmentation:: CTB will be eventually trying to tap more niche

market and broaden its market segment. For instance, CTB will be selling its products to

MNCs which employs children in the workforce. These MNCs are allowed to use

children in jobs provided they support these children by giving them their basic rights and

good way of living. CTB will be positioning camping as an educational recreation for

children in these organizations which would enable them to be close to the nature and get

learning about the environment and social activities that would make them grow up to be

good citizens of Bangladesh. The MNCs will be bearing the cost of the camping activities

of these children. Thus a niche will be tapped. CTB can get affiliated with many NGOs in

this way to provide educational camping for underprivileged children sponsored by big

companies on a regular basis.

Crossing Chasm:: With precise identification of customer needs, which would be done

by strategies in the functional level, CTB will be changing its programs and competencies

in such way that would best suit customers’ style and preference towards camping. Also




by identifying and tapping newer segments, CTB will be basically practicing

simultaneous move as the possibility of competitors entering this camping business is

always present.

All the functional level strategies practiced in the short-run will also continue in the long-

run with the assessment of their effectiveness and also with necessary amendment and

development.

5.2 SHORT-TERM STRATEGY

BUSINESS LEVEL STRATEGY:

Differentiation with low price:

The idea of camping itself is new in Bangladesh. With that the business starts to

differentiate itself. However, analyzing the industry and customer trend towards spending

in such kinds of activities, the company will be providing relatively low price and will try

to attract large number of customers from different segments. This would help of recover

the initial high investment and will also enable the venture to achieve economies of scale.

Rigorous Advertisement and Selling: CTB will be going for rigorous marketing

activities. There will be well equipped and efficient sales representatives doing direct

selling. Moreover, CTB will go for large scale advertising activities in different medium.

Market Segmentation: CTB has a very clear market segmentation for which they have

suitable camping programs to attract customers. The sales team will be working

according the specific target segments taste and style to promote and sell the camping

service of CTB. The market segmentation with their profile is described in the market

overview part of this business plan.

FUNCTIONAL LEVEL STRATEGY:

Efficiency through Training:

The efficiency of CTB largely depends on its employee’s expertise in delivering the

services to the customer. For this reason, to increase employees efficiency, they needs to




be trained meticulously so that they are clear about how to deliver their service properly

and with minimal error. As our employee base is expected to have no experience

regarding camping that is how the training would be done in terms of simulation practice

where employees will be having the camp experience themselves first being the campers

and then they would become the guide for the next camping simulation for practicing

their learning.

Efficiency through Project Team:

The camp ground along with the flower business will have to periodically do different

kinds of tests for maintaining the ecological, environmental balance of the whole site. The

agronomist, as a counselor will be conducting the whole task with a team of employees

periodically. This team will be formed with employees from different level and different

divisions of the company. In the first such activity with the counselor, the team will be

learning how to do these tests on-the-job and thus they will get trained to do the job

regularly. Eventually, for doing the same task regularly, the project team will reshuffle

itself where 25% of the team members will be from the first group/ those who have

already done the job before and the rest will be employees who haven’t done the task

before. In this way, most of the employees will be experienced in terms of maintenance of

the camp ground along with the flower business. Thus they will automatically work on

maintaining the environmental and ecological activities crucial for the camp ground in

their day to day tasks and maintenance cost will get lowered.

Efficiency through Experience Curve:

As employees will start providing camping services and also participate in the

environmental maintenance work along with other activities, they will gain experience

and thus more efficiency will be achieved. With the support from training and project

team activities the experience curve will be better able to reduce costs and gain

economies of scale.

Customer Responsiveness & Quality through Feedback:




On-site feedback:: Every customer will be provided with evaluation and feedback form

before they leave the campground after their camping experience. The form would

emphasize on how customers experience was and what sort of constraints they have

experienced in CTB. They would also be asked to give suggestion on how to improve the

service. According to the feedback, CTB will try to improve its service.

Feedback generated by sales Representatives:: The sales representatives will also

maintain public relation with the customers who have already availed the service of CTB.

They will try to get their feedback on how they expect CTB to provide further service

along with getting general idea from potential customers on how CTB services can be

made more convenient for them.

For the flower business, the employee working to keep the liaison with the flower vendor

or clients will be taking feedback from the clients for specific flower demand and new

flower introduction need as well.

Customer Responsiveness through involving Customers:

Customers who would be coming to the camp site will be participating in constructing

their camp trips agenda with the guidance of the site and facility staffs. Thus in this way,

customers preferences towards camping style can be realized.

Quality through Employee Discussion:

Employees may also have inputs to give to make the service better. Top management

should facilitate in organizing discussion seminars where employees will be sharing their

experiences and challenges or constraints they faced while doing their job. In this way,

employees will be aware of probable problem and will be better able to solve them or be

ready to confront them thus quality will be assured.

Innovation through Creative Team:

Teams will be also formed to come up with newer ideas on how to create better and

innovation camping programs. In the long-run when the expansion and strategic alliance




will be formed, the innovation will also escalate and teams will be working in creating

camping services and programs that are innovative and attractive to the customers.

6. COMPANY VALUE CHAIN ANALYSIS AND OPERATIONAL PLAN

6.1 EXISTING CORE COMPETENCIESThe fundamental knowledge, ability, or expertise in a specific subject area or skill set is the

core competency. We will definitely enjoy the advantage of first movers as we are

introducing such a new concept in our country. One of our major core competencies will be

being the first mover in the camping business, which enables us to convey exclusive value to

customers and as well as it would be hard for competitors to duplicate.

Other core competencies of our project (CTB) might be:Other core competencies of our project (CTB) might be:

Competitive pricing:Competitive pricing: The products and services are priced in such a way so that it

matches with the income level of our prospective customers, and also, compared to

that of various package tours and theme parks, it is quite competitive.

Brand Loyalty:Brand Loyalty: We can establish brand loyalty before our rivals arise; and we will be

able to develop a stronger brand image as we become more experienced through

learning effect and customer’s feedback,

Specialization:Specialization: We hold the specialization in providing camping services. Our side

business of flowers also adds value to our business

Optimum utilization of ResourcesOptimum utilization of Resources:: We are making maximum utilization of available

resources, as CTB is offering camping facility throughout the year, and also is

conducting a flower business.

Environmental friendly image:Environmental friendly image: One of the key core competencies of our camping

project is the environmental friendly image.

6.2 FUTURE COMPETENCIESWe will able to hold larger market shares because of some of our future competencies even if

there are possible emergences of some new camping businesses in future.




In Future, CTB will be able to attain superior efficiency through functional level strategies

like

Economies of ScaleEconomies of Scale:: We will hold the ability to serve a large number of variety

customers to achieve greater division of labor and specialization according to our

expansion plan. Specialization among employees will lead us to provide better

quality services to our customers.

Learning EffectsLearning Effects:: Learning by doing will help us to attain a lower cost structure;

and, over time, there will be further cost saving as we learn the most efficient

ways to operate our business. Also in future, we will be able to develop a more

trained and efficient labor force. Hence, operating cost would decline because of

increasing labor productivity.

Experience CurveExperience Curve:: We will be the holder of large market share if our company

can pass some good years at the beginning in terms of revenue, customer number,

customer satisfaction etc. We will be able to serve a large number of customers

and to hold a larger market share by expanding our business, which will lead to

organized lowering of our cost structure compared to opponents.

Strategic Alliances and Expansion:Strategic Alliances and Expansion: Future expansion plans of our camping

business to different places like Sundanbans, Cox’s Bazar, Rangamati, and Saint

Martin’s Island and opportunities with various resorts will give us the opportunity

to distinguish our services and to charge a premium price.

6.3 SERVICE OVERVIEWCamping is an outdoor recreational activity, in which the campers get away from civilization

and enjoy nature by spending one or more nights at a campsite. CTB will be the one to

introduce a camping culture in Bangladesh, which will not only give us a break from our

routine, dull and polluted urban life; but also will give us the opportunity to build a bond with

the nature.

Providing camping facilities to the potential campers of our country will definitely be the key

product of CTB. Our company will also possess a side business of flower plantation and

selling in the campground other than this.




Primarily, CTB will offer the following four types of camping programs: programs like

family camping, weekend camping, winter camping and summer camping. Plentiful agenda

like hiking, biking, boating, fishing, games, sports and many environmental related education

trips will be included in these camping programs. The details of some of the camping

programs have already been stated in the key product/service part of this business plan.

Apart from these our flower business where there will be various type of flowers, that will be

planted and sold from the camp ground. These flowers might include Rose, Anthorium,

Gerberra, Orchid, Heliconia, Golden Duranta, Gladiolus, Leather leaf fern, Philodendron

etc. The variety will increase in course of time and according to demand.

6.4 FACILITIES OFFICE BUILDING, CAFETERIA & PHARMACY:

There will be office building where different supplies will be stored. There will be a small

pharmacy placed in the ground floor to treat anyone who becomes injured due to the

activities in camping. The necessary medicine will be found in this pharmacy. There will be

pharmacy assistants to serve the person and to advice which medicine to use. The building

would help to operate the supporting activities and all kind of paper work can be done.

Managers can work together to find a way to better serve the customers. Adjacent to the

pharmacy will be a cafeteria where the daily food for employees will be cooked by the cook

and his assistants. Also the customers who will come to CTB for camping will get their

uncooked or cooked food from this cafeteria.

FLOWER GARDEN:

It is there to increase the visual value of the company and also to generate profit to support

the camping business. The way the garden would be designed and variety of flowers and

would attract many people to come from all around the country to camping ground

BOATING & FISHING IN LAKE:

There will be a lake will be made so that the majority camp ground can be visited. The

picturesque beauty from boating would be great to watch which would attract customers.




Some can do fishing and can have great time in having fun in lake and would like to come

again and again to this peaceful place.

SPORTS AND CULTURAL PROGRAMS:

There will be open space and sports gear and equipment so that people can play sports and

have fun. There will be small rides for people to enjoy. They can play cricket or soccer and

can even play badminton or basketball in that place. Cultural programs will take place at

night where there will be singing, dancing and even more games.

HIKING:

People would love to see our camp ground and its scenic beauty, flowers, trees birds. Since

hiking is the most enjoyable thing in camping, many people would spend more of the day

hiking. Children would also learn from hiking as this can be an educational program for

them.

TENTS ::

Tents will be decorated so that the customer would feel at home and be satisfied with our

service and would love the nature more. It must be made comfortable with all kinds of utility

services and any needs of the customer should be handled in emergency. People would love

to live in such decorated and well set up tent and would like to come repeatedly.

6.5 EQUIPMENT AND MACHINERYWe will rent a small office at Dhaka in order to run our business successfully, which will be

equipped with all essential equipments and machineries like a common office has (i.e.

furniture). This office can be rented in a commercial building in Gulshan area. Our main one

storied office building of 4,000 square feet will be on the campground. The main equipment

and machineries of our offices are:

Computers, printers and Internet connection: We will have two computers in our office

at the campground, one with internet connection. There will be the same arrangement in

the Dhaka office. As we expand our operation we might need more computers. To print




important documents we will also have two printers in both the Dhaka office and

Campground office.

Telephone: We will have one telephone line for instant customer help and

communication in both of our offices.

We will have the following equipment and machinery that are mentioned overleaf on the

campground.

Pickup Van: On the campground, for internal transportation and to bring both camping

supplies and office supplies from outside the campground, we will have a Pick Van.

Generators: In order to provide temporary power supply during the load shedding period,

we will have two five KVA generators on the campground.

Tents: Primarily, we will have fifty tents; each can contain three people, for our business.

Twenty of these tents will be colorful to attract the young people.

□ One brush/small hand held broom for sweeping out tent will be there for each tent.

□ Two portable chairs, one tool, one small portable table and one ground cloth will

be provided for each tent.

□ A big water jar and a trash bag will also be there in every tent.

Sleeping Materials: For each tent we will have fifty sets of sleeping materials. Each set

will contain three pillows, one bed sheet, and three blankets. For cushioning from stones

and twigs as well as for insulation from the ground, a sleeping pad or air mattress will be

often placed underneath the sleeping bag. In the office,twenty sleeping bags will also be

available for rent.

Cooking Equipments: Each tent will be provided with one set of cooking materials for

cooking purposes. This set will include:

□ A portable stove to prepare hot meals and/or drinks.□ Required fuel, firewood and Kindling□ Matches in waterproof container□ A cooking pot and a pan□ One can/ bottle opener□ Dining kit for each camper(Plates, cups, bowls ,forks, knives, spoons)□ A large water jug□ Three towels and a dish towel□ Dish detergent and soaps




□ A plastic bucket □ A trash bag

Fishing Equipments and Hiking Sets: There will be twenty sets of fishing equipment

and twenty sets of basic hiking sets, which will be available to rent from the office

building.

Boats: For boat riding purposes, five medium sized boats will be available for the

campers.

Life-Jackets: For safety reasons, there will be ten sets of life jackets, four on each boat.

Rides and Sports equipments: A wide variety of rides (like slippers, seesaws) will be

there for children. Sports equipments for games like soccer, cricket, and badminton will

also be available for free for the campers.

Other Important equipments: Other important equipments available for the campers will

be toiletries, recreational equipments and first aid boxes.

□ Toiletries: There will be six toilets in the main office building for the campers.

Required toiletries will be available there for sale.

□ Recreational equipments: Some recreational equipment will be provided to the

campers on rent.

□ First aid boxes: First aid boxes will be available from the security guards in

emergency on the campground.

Lists of these equipments are provided in a table below:

TTOILETRIESOILETRIES RRECREATIONALECREATIONAL EQUIPMENTSEQUIPMENTS FFIRSTIRST AIDAID BOXESBOXES

□ Bath towels and washcloths□ Soap in plastic containers□ Antibacterial hand soap□ Baby wipes□ Tissues□ Shampoo□ Toothbrushes, toothpaste and dental

□ Small Backpacks for day trips□ Binoculars□ Compasses□ Whistles for signaling others□ Water Bottles□ Swimsuits, swim towels and swim toys(for children)□ Rubber Sandals

□ Sterile adhesive bandages in different sizes□ Gauze rolls and pads in different sizes□ Adhesive tape□ Safety pins, Scissors, Tweezers (for splinters and ticks), Needle□ Latex gloves□ Cotton swabs□ Tongue depressors




floss□ Deodorant□ Combs and brushes□ Razors and shaving cream□ Female hygiene products□ Mosquito repellent for kids and adults□ Lip balm□ Small hand mirror□ Miniature sewing kit□ Any needed prescriptions

□ Caps/hats□ Water bottles□ Outdoor toys like kites, balls and Frisbees□ Board games and desk of cards□ Music instruments□ Reading materials□ Notebooks, pens and pencils□ Guidebooks and maps□ Digital cameras

□ Mild liquid soap□ Antiseptic wipes□ Hydrogen peroxide□ Antibiotic ointment□ Rubbing alcohol to disinfect scissors, tweezers and thermometer□ Lotion for insect bites and rashes□ Petroleum jelly or other lubricant□ Burn ointment□ Snakebite kit if camping in poisonous snake territory□ Thermometer□ Non-aspirin pain reliever appropriate for children□ First aid manual (The Red Cross publishes first aid manuals for both humans and pets, and also sells pre-assembled first aid kits.)

Miscellaneous equipments: Other smaller camping equipments like lanterns or flashlights,

hatchets, ropes, axes or saws for cutting firewood (for campfire or for constructing camp

gadgets), duct tapes, hammers, flashlights, pesticides etc will also be available on the

campground.

6.6 PRODUCTION AND MANUFACTURING PROCESS

The combination of strategies aimed at creating distinctive competencies that differentiate its

product so it creates more value for customers is a company’s business model, which gives it

more pricing option and also result in a lower cost structure which also gives it a broader

range of pricing choices. Achieving a continual competitive advantage and better profitability

requires the right choices with regard to value creation through differentiation and pricing in

the current market situation. Thus it is essential to have efficient resources and manage them

well with value addition commencement so that unique competencies and as a result

competitive advantage can be achieved. The two method of achieving are competitive

advantage and more market share. The value chain model is a useful analysis tool for




defining a firm's core competencies and the activities in which it can pursue a competitive

advantage as follows:

Cost advantage: by better understanding costs and squeezing them out of the value-

adding activities.

Differentiation: by focusing on those activities associated with core competencies

and capabilities in order to perform them better than do competitors.

Therefore to offer the customer a level of value that exceeds the cost of the activities is the

goal of the activities, thereby resulting in a profit margin.

VALUE CHAIN DIAGRAM

PPRIMARYRIMARY A ACTIVITIESCTIVITIES: : The activity has to do with the design creation and delivery of the

product, its marketing and its support. These are the basic operation which helps to serve the

customer and satisfy the need of their clients

The primary value chain activities are:

1. Inbound Logistics:1. Inbound Logistics: Inbound logistic is about receiving and storing of raw materials and

their distribution to manufacturing as they are required. Different kind of supplies which are


INBOUND INBOUND LOGISTICSLOGISTICS

OPERATIONSOPERATIONS OUTBOUNDOUTBOUNDLOGISTICSLOGISTICS

MARKETINGMARKETING CUSTOMERCUSTOMERSERVICESERVICE

SUPPORTING SUPPORTING ACTIVITIESACTIVITIES

PRIMARY ACTIVITIES PRIMARY ACTIVITIES ACTIVITIESACTIVITIES

COMPANYCOMPANYINFRASTRUCTUINFRASTRUCTU

RERE

MATERIALSMATERIALSMANAGEMENMANAGEMEN

TT

HUMANHUMANResource

Management



related with our service business is bought and made sure it is provide during the operation

on time. According to the need, materials like plantation, fertilizer, pesticide, medicine and

materials for cooking is bought on daily, weekly or monthly basis. Direct communication

with operation manager is needed by staffs, who are responsible for this work, about the

requirements of the customer. Then office would purchase accordingly and supply necessary

documents to finance to support this purchasing of materials. These materials are stored in

the office building in a cool temperature and is distributed according to the need of operation.

Normally plantation is done when it is bought, medicines are kept in pharmacy which is in

underground floor of the office, and other materials are also kept in a safe place where it

would not be damaged.

2. Operations:2. Operations: The operation in the camping ground is to provide the best service efficiently

and on time. There are different feature in the camping ground which will catch the attention

of the customers. Different feature or type of operation is listed below:

Ticket sales: In Dhaka, one office will be rented and the office in the camp ground will be

used to sell tickets. The people who will be in charge for selling ticket will also know

everything about the different features of camping. They would be helpful and would be able

to answer the questions of the camping clients. The tickets will be given to the clients to

enjoy all of the features in the camp ground like fishing, boating, sports, rides, hiking and

also three meals a day. Brochures of our service will be found at ticket selling place where all

kinds of information about the camping ground will be available. Also our associated

transport company and its fare and how to reach camp location would be mentioned.

Tent Setup and Maintenance: Operations are informed when a client buys a ticket. They

take essential ‘safety measure by setting up the tent and preventive measures for bad weather

can be taken by setting more bamboos to make the tent foundation stronger. Even if the tent

is well in order, it will be monitored and if any fault is found, repairing work will be done.

Table, bed and other small furniture will be arranged after setting up the tent. This will be

done to give them the feeling that they are at home. They will be also provided with plates

and other kitchen equipments so that they can prepare their meal. The site & facility staffs

will be helping them to ensure safety and comfort even though campers will be doing most of

the tasks of setting up camps on their own. A person will be always on round the whole to




make sure that the tents and different things in the tent are doing well and if anything goes

wrong, inform the office to take action accordingly and immediately. It will also be made

sure that electric line is given so that lighting and other kitchen equipment which will run by

electricity will run properly. Other service like gas and water supply will be made sure to

properly execute the service to the tents. All kind of service will be given to the clients so that

they feel at home and do not feel discomfort living in nature. Different meals and drinking

water will be surly provided in tents so that an individual need no discomfort in nature.

Equipments in tents like bed, clean sheets, and electric equipments will be checked weekly so

that whenever needed, they can be used efficiently. The tents will be well decorated and

because of our flower garden, lot of flowers will be used to ornament the tent. The aim will

be to make the clients feel that the tent is also nothing less than a hotel room. Design of

furniture and decoration of tent will match clients and would make them feel good about

camping and excited about the whole day.

Food Management: Another important operation in camping is food management. Three big

meals will be provided with some snacks according to the tickets. However food will still be

demanded as people will be hiking, playing sports, etc. Therefore there will be food centre at

different places like the lake, sports centre, and other location where people will meet at night

for cultural program. Therefore snacks like chips, sandwich and other kinds of food will be

sold directly in the food centre. These foods will be outsourced from a local restaurant with

being careful in ensuring quality. However one head chef with some assistants will be

responsible for the camp kitchen. They will prepare meal according to the customer’s order

and they will ordered for cooking materials beforehand according to the number of clients in

the camp ground. The food will be served to the tents or in the office dining place according

to the customer’s choice. According to the needs, cooking material will be bought weekly or

monthly and all kinds of purchasing and ordering must be in an order so that monitoring of

finance department becomes easier and the work process also is decentralized. At night Bar-

B-Q party will be arranged regularly and chefs will prepared for that therefore, so that food is

prepared on time and people can have last meal on time and go to sleep early. The main chef

will supervise the menu and guide the assistants who will do the main function. He will make

sure cooking quality is maintained and versatility of food is offered. And food should be

offered in a way so that customer could relate it to nature. The food quality will be improved




more when fresh fishes, vegetable can be offered from camping spot. Lastly food is very

important because if food quality is maintained customers will be happy about the service,

therefore strict quality monitoring should be encouraged.

Fishing & Boating: Around the lake many boat ramps will be available. The rules and

warnings and respect for both the weather and wildlife should be maintained. A guide will be

there to help everyone to get into boat with fishing gears and life jacket so that fear of

drowning is not there. The staff would also help the person who would face problem boating

in the lake. It is also because of fluctuations in the water level partially or completely sunken

hazards can be encountered at any time. Boat operators should maneuver the boats with

extreme caution at all times. The lake offers a unique look at the camping ground and nature

from water and the wildlife and birds in the wild life. The customers will be allowed to fish

as much as they will find satisfactory and will make them fall in love with nature in that

peaceful environment and to bring the person over CTB again and again. All the boating and

fishing equipment will be monitored and checked properly so that no harm is done to

customers. Lake maintenance will also be there like fish feeding and managing waste

efficiently so that lake environment stays pure.

Hiking & Educational Trip: The variety of hiking trails in the camping ground will let

visitors to choose from trails that take less than an hour to walk to those requiring all day

excursions. Scenic beauty and wildlife will be plentiful on all hiking trails. Additional

information and advice about trails can be obtained from the guide. The campers can do

hiking alone or with the whole team or family. Moreover once the campers reach the top of

the mountains they will have a great view o the whole campground and its surrounding. CTB

is on the famed location of Chittagong where migrating butterflies, songbirds, ducks fly

through the place by the millions each fall and spring. Moreover, the location will suit many

birds to stay and make nest during the season in our camping location.

Educational trip will be well instructive for children as they will learn about plants, flowers

and will know about environment better. A guide will be there with them or teacher of their

school who will help them to classify the different variety of plant and their usefulness. This

service will make the customers enjoy the day as a whole and able to move around the camp

and see feature of the camp will attract them to come repeatedly. Also the responsibility of




keeping the environment clean, how to contribute in maintaining the ecological balance all

these things will be addressed to all the campers. Hence, people of different age, especially

children will learn how to be socially and environmentally responsible.

Flower Selling & Garden Maintenance: To attract crowds, the flower garden will be used.

The flower garden will hold the reputation of being the best garden in the country. The

gardens will be exceptional and second to none in its ambiance. It will improve the natural

beauty of the camping ground and revenue from selling flower and flower plants would help

to create a synergy among the business. The designing and maintenance of flower garden is

very important. The design is done with the help of landscape planner and make sure

production is optimized. Gardeners should be there to take care of flower trees and make sure

fertilizer and pesticide is given on time. Manager should be there to make decision

accordingly about the production of flower and make sure it is presented to customer in a

very presentable way. It will also be made sure that when it is sold to organization flower

quality is maintained, therefore will be kept in a cool temperature always. Polythene,

Precautionary net and other instrument like hygrometer (to measure humidity), thermometer

will be used to make sure flower garden environment is maintained and flower business is

done smoothly. Regular Lab test will be done so that soil is always of best quality and

production is always optimized.

Cultural Program & Sports: A cultural program is planned to be arranged at night. Before

dinner everyone who will camp that day would come to attend the Cultural program.

Performer hired or among the work force of camp group will sing or dance and it clients will

be encouraged to participate as well. There are sports equipments and other gears and

children or elder person can all play the game. People from camp ground like in the lake and

flower would also be here so that everyone can have enjoyable time and so that each person

can have chance to play and participate in the cultural program. The equipments in sports

must be made sure to be in order and if any problem arises repair work must be done. Camp

fire would be set up at night and around that people can sit in circle and sing and dance and

have a great time.

Campground Funs at Night: In camping, people choose a place to stay for the night. There

is a wealth of traditional activities in camping to keep the new campers of Bangladesh busy




and exercise their creative muscles during times when it’s too early to go to bed or too late

for strolling around. There are some games and creative activities that will be done at night in

CTB campground.

A A SAMPLESAMPLE OFOF THETHE DAILYDAILY OPERATIONALOPERATIONAL FLOWFLOW::


Ticket Sales Ticket Sales Ticket Sales Ticket Sales Tent & equipment Tent & equipment setupsetup

Tent & equipment Tent & equipment setupsetup

BreakfastBreakfastBreakfastBreakfast

LunchLunch

Cultural Program

Cultural Program

DinnerDinner

Night time games

Night time games

Snacks Break

Snacks Break

Ice breaking & team Ice breaking & team buildingbuilding

Ice breaking & team Ice breaking & team buildingbuilding

HikingHikingHikingHiking Boating Boating & &

FishingFishing

Boating Boating & &

FishingFishing

SportsSportsSportsSports Flower Flower GardenGarden

Flower Flower GardenGarden



3. Outbound Logistic:3. Outbound Logistic: this is mainly for the flower business. Flower should be warehoused

in cool environment for the flowers business in the camping office and later transfer it to a

specific place from where our clients will pick their flowers. The transportation will take

place by our alliance transport company.

4. Marketing & Sales:4. Marketing & Sales: An new marketing campaign will be a key determinant of our

success. Given the fact our campaign will not only have to create awareness about camping

among but also focus on facilitating consumer learning about the environment better. This

would help to create love for the nature and urban children would get the opportunity to come

close to nature. Marketing would do research to know about the trends and the different type

of taste for their potential customer. Then it is possible for them to come up with niche

marketing to attract families, school children and again corporate clients. Again product

differentiation strategy and pricing strategy is taken to attract customers and high price to

cover the initial cost of the project. However for flower business penetration strategy to take

opportunity in the market is followed.

The right media mix that is supplemented by strong sales force in promoting CTB will be

playing crucial role in the business. Also special offering discounts and other promotional

facilities are planned for the customers. The detail of the marketing plan is provided in the

following section of this business plan.

5. Customer Service5. Customer Service :: One of the key values of our business is customer value. As a result

ensuring customer service beyond their expectation will be the essential determinant of our

distinction from other existing competitors. We will ensure satisfaction beyond expectations

through providing helpful and efficient service with maximum professionalism and courtesy.

For developing a strong relationship with our valued patrons CTB’s employees will heartily




greet them immediately upon their entrance in the Dhaka office and in the camp ground,

design creative and exciting camping schedule with the customers, provide them with

professional service, and guarantee satisfactory experience and make them realize how much

they are really valued.

In flower business a liaison officer will be appointed to exclusively work to make sure that

clients are getting what they want and are also provided with newer types of flower that are

not common in the market.

SSUPPORTINGUPPORTING A ACTIVITIESCTIVITIES:: The primary activities are supported by activities, which are

called supporting activities. The supporting activities of the value chain provide inputs that

allow the primary activities to take place. These activities are broken down into four

functions: material management, human resources, information system, and company

infrastructure.

1. Company Infrastructure:1. Company Infrastructure: The company infrastructure consists of corporate governance, CTB

culture and employees’ attitude towards the top management. The entire organizational

culture will demonstrate a zeal for camping and a strong ethical responsibility to protect the

nature and contribute for the betterment of the environment. As the work force is the life of

this service company organizational culture must exist to make the work force integrated to

serve the customers better. Decision - making is centralized yet employees have the

flexibility to serve customers as per their expectations and in doing so they have all the

liberty to act on their impulse so as to satisfy their customers.

2. Materials Management:2. Materials Management: For transmission of physical materials through the value chain of

CTB to be effective and efficient enough to succeed with a low cost strategy will require flow

of goods from suppliers to directly be used for use in equipments and machinery and

servicing. Electronic systems for managing inventory will be handled using the just-in-time

approach, to avoid inventory leftover amount to be greater than estimated buffer stock.

Fertilizer, pesticide plantation should be made in use very soon as warehousing for long time

can dame the raw materials. The accountant from finance department will list cost of supplies

and amount of each item purchased. This activity integrates the materials management and




finance department at CTB, ensuring activities in the value chain to be thoroughly linked

both horizontally and vertically. They would check the decision made by operation manager

about procuring inventories and could give feedback doing financial analysis about how the

material management cost could be minimized or how which item would benefit more than

the other.

3. Human Resource Management3. Human Resource Management :: The whole HR will be lead by the four partners. The

employees will be working in teams and their efficiency will be gained through both on and

off-the-job training. Constant feed from multiple aspects of the organization will also support

the companies’ quest for continuous improvement, quality, customer satisfaction etc. to keep

employees motivated; they will work in teams and deal with different project. Awards and

recognition will be also the means to boost up employee motivation. The strategies and

actions of the human resource management part of CTB are described in the Human

Resource Strategy and planning part of this business plan.

6.7 RESEARCH AND DEVELOPMENTConstant soil testing, improving the camp ground ecologically, ensuring ecological and

environmental balance etc will be conducted to maintain the quality of the natural aspects of

the camp ground.

Maintaining a healthy water system and sanitation system is very important for our

camping project. Constant consultation with experts is required in this area.

R&D function should be implemented so that our company can achieve a lower cost

structure by pioneering process innovations. This term indicates innovation in a way

that our operating procedure can be more efficient.

Research and development should also help us to bring customers in the service

development process. We can improve our service quality with the help of direct

customer feedbacks.




Research and development would be required to develop satisfactory forecasting

techniques to predict our sales potential and other cost estimates through industry

trend analysis and economies situation of the country.

6.8 QUALITY ASURANCESome of the important issues related to quality assurance would be;

Constant monitoring of our operating process and making required adjustments

should be the key to maintain our service quality.

Identifying customer needs and fulfilling them promptly should be one of our major

strengths in assuring quality.

To offer a family atmosphere is very important for the quality assurance of our

camping project. Offering family fun and adventures would create value of our

business in the eyes of the customers and it should be beneficial for our camping

project for future expansions.

Quite and secure environment is very important for any campground. Our

management should play a vital role in maintaining a disciplined atmosphere in the

camping area. Factors related to noise control and privacy also required to be given

proper attention.

Cleanliness and providing proper campground facilities like hot showers in winter

season, flush toilets, laundry, stores etc are also important concerns in sustaining

quality in our camping business.

Maintaining healthy water system is crucial for our business. Drinking water quality

is critically important to good health. Ideally, drinking water should be wholesome,

physically attractive, and free from all harmful organisms and have a chemical

content, which will promote the health of the consumer. Also, water of the lake

should also be safe from all kinds of danger. Thus, providing safe water, both in the

lake and for drinking purposes, is essential for the health of not only our customers,

but also for our employees.




Fair pricing of goods and services provided on the campground is also a major

source of quality assurance in our business.

7. MARKETING PLAN

FIRST IN STRATEGY :

CTB will be the first to take the initiative to take camping in Bangladesh to a broader

scale. The concept of camping itself is new in Bangladesh. There are a lot of picnic spots,

resorts and package tours in Bangladesh, but the concept of camping itself is new in

Bangladesh .The idea of living under the open sky in a tent and doing adventurous

activities with friends, family and colleagues is a new way of enjoying the vacation in our

country. CTB will be the first in the market with such a product.

FLOWER BUSINESS:




Laggard Entry Strategy: There already exists some small number of established flower

plantation and nurseries in Bangladesh. However, they have started their business long

time back. For this stance, this side business of the camp ground will be following a

Laggard-entry strategy. It will be relatively easy to capture market as per supply by the

camp ground as this industry does not have brand loyal customers for them.

PRODUCT POSITIONING :

The product will be positioned by attributes such as; adventurous features, staying in tents

and being close to nature. Additionally, positioning with people who would like to spend

their vacation, holiday, weekend in an adventurous and activity oriented way by being

close to nature will be done. Thus positioning by the product user will be another

approach.

PRICING STRATEGY :

CTB will be striving to attract a large number of customers at the staring proceedings of

its business. So, CTB will be implementing Penetration pricing initially. This is Because

of the high initial investment in promotions and fixed asset acquisition establishing a

relatively high initial price in needed. By providing low price in a large number of

customers will be attracted and thus the investment recovery will be achieved in this way.

However, with the eventual doubling in the experience curve and standardization of the

products, the price will be lowered after recovering at least 60% of the initial set-up cost

of the business.

As for the flower business, the Penetration pricing will be followed. The synergistic

approach in terms of land usage and delivery of the flowers to the suppliers, the flower

business will be going for a relatively low price than the other competitors are engaged in

currently.

PROMOTIONAL STRATEGY :

CTB would be trying to implement strategies to create enough initial awareness among

customers about its services to start of business successfully. Initially at the first year, the

promotional activities will be focused on creating awareness about the camping activities




provided by CTB. There will be mainly direct selling by the help of sales representatives

and online booking/reservation.

7.1 SALES AND MARKETINGInitial awareness building is necessary for the whole camping trend.CTB is different from the

existing tours and travel package providers, Porjoton Corporations and resort sites. Adding to

this, the idea of camping where some activities facilitated by trained campers will be

available makes the whole concept a new one. An innovative marketing campaign will be a

key determinant of our success. Given the fact our campaign will not only have to create

awareness about CTB among the members of our target markets, but also focus on

facilitating consumer learning about the substantial benefits of having a change in the

monotony of regular life by being close to nature along with adventure and fun activities.

Given our financial resource limitations, we will seek to maximize the utility from our

marketing budget, undertaking strategies that will position CTB as the pioneer in the camping

trend and improving the total style of tours and travel in Bangladesh.

Sales and Marketing of the Flower business

Different potential corporate clients and the flower vendors will be instructed to come in the

Dhaka office of CTB. They will be shown the flower samples and will be provided with the

necessary information on how the delivery will take place along with the regular timing of

delivery. The potential clients and vendors will be giving pricing quotes. These different

quotes will be assessed and the most lucrative and feasible quote will be accepted by the CTB

authority and thus a business-to-business flower business relationship will be established and

sustained.

7.2 DISTRIBUTION

There will be an office in Dhaka were customers can go for booking and other information.

But the distribution/reservation work for CTB will be basically done online. Additionally,

the sales representatives will be given the authority to facilitate the booking tasks via cellular

phone call or via internet.


CAMP TO CAMP TO BANGLADESHBANGLADESHCAMP TO CAMP TO BANGLADESHBANGLADESH

TARGET TARGET CUSTOMERSCUSTOMERS

TARGET TARGET CUSTOMERSCUSTOMERS

Reservation through online Reservation through online web web Reservation through Dhaka Reservation through Dhaka Office Office Reservation through Sales Reservation through Sales RepresentativesRepresentatives



TRANSPORTATTION

CTB will be having a strategic alliance with Shohag Paribahan to incorporate its

transportation facilities for the convenience of its customers. This bus service provider

will be affiliated with CTB for the transportation of customers from Dhaka and

Chittagong to the camp ground. The delivery of the flowers will also be taking place

through this bus services on a monthly basis.

7.3 ADVERTISING AND PRODUCT PROMOTION

MEANS TO INFORM & PERSUADE CUSTOMERS

The means to inform CTB target market of offers and opportunities promotional activities

has to be planned in a manner that it can by itself influence and persuade a purchase

decision. These promotional activities if run properly will in the end communicate trend

of camping resulting in the demand building. Keeping this objective in mind the

promotional activities of CTB is arranged in the following manner.

PROMOTION (Means to inform & persuade customers)

7.3.1. Advertisement appropriate (media wise plan)

7.3.2. Personal selling by

Co personnel

Hired persons (sales oregano gram, team as per target market)

7.3.1. ADVERTISEMENT APPROPRIATE (MEDIA WISE PLAN)




The media habit of the target market of CTB demonstrates a similar pattern of

characteristics that have been matched with medium that suits best with a particular

characteristic.

Sl Characteristics Media

1 With quality newspaper offering in Bangladesh, corporate people engage substantial time in newspapers.

Newspaper advertisements will enable more response from the office goers.

2 Main purchase group involves family and students of different education stage

Mass leaflets in apartments and universities, school and college.

3 People will go for camping in groups Lifestyle Magazine advertisements.

4 For overall attention large visibility is needed in the busy places of the capital

Promotion through magazines and billboards

Corporate purchase

Leaflet dropping and concentrated / custom-made proposals have to be dropped in

case of corporate purchase for programs. Also, single complete setup print / billboards

have to be geared up for more focused product sale.

Yearly media plan

A yearly media plan will be an integral part for the promotional campaign of CTB and is demonstrated below:


= Web Updated

Yearly Media Plan for TVC, Web & Billboards (PLAN # ONE)

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Billboard Change

Billboard Change

Billboard Change



Tabulated version of the media plan:

Promotion Type Media Frequency Est. Cost

1 Print Media Posters and brochures Inauguration, and tools for sales representatives

3,00,000

1 Events Tourism Fair Once a year 1,00,000

2 Billboards Mohakhali Changed 3 times a year 3,00,000

Sonargaon Moor


Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Yearly Media Plan for lifestyle magazines, Newspaper & Events (PLAN # TWO)

2 insertions in lifestyle magazines, newspaper

3 alternative days

Newspaper insertion

- Package offers

- Specific products

3 alternative days

Newspaper insertion

- Package offers

- Specific products

3 alternative days

Newspaper insertion

- Package offers

- Discounts

- All products

Special summer masala Special spring affair

Special Inauguration Buffer


CAMP TO BANGLADESHCAMP TO BANGLADESH 3 Newspaper

advertisementProthom Alo -Initial Buffer &

Opening

4,00,000

The Daily Star Weekends -Initial Buffer & Opening

Jugantor -Seasonal offer insertion (3 times in alternative days a week)

4 Lifestyle Magazines Lifestyle -Seasonal offer

3 insertions

1,35,000

8.3.2. PERSONAL SELLING

It will be imperative to have a direct sales force for CTB selling primarily the idea of

camping and eventually the specific products to institutions (school, colleges,

universities) / corporate bodies and secondly to high end customers in households. It

is primarily because the culture of directly selling is the only means to sell to high end

clientele. To achieve this direct sales force CTB needs the followings overleaf:

MARKETING DIRECTOR

The whole sales team will be under the marketing directors’ supervision. The director

will be setting a monthly target in the director level and will be dispersing the whole

target amongst individual sales representatives and paired sales representative teams.

SALES REPRESENTATIVE

CTB needs to hire direct sales force for corporate selling on commission basis to

promote in door-to-door selling concept. These sales forces will de divided in

accordance to the target market profile of CTB and will be given necessary

promotional materials such as posters, brochures and discount cards for using during

their sales activities.

CO-PERSONNEL




A small group of co-personnel will be appointed to maintain the necessary liaison

with the flower distribution task. They will also be working constantly to look for

potential customers to increase the market share for the flower business.

7.4 CUSTOMER SERVICEA vital determinant for the success of the business of CTB will be continual management of

customer service beyond the expectation of the customers. Through providing helpful and

efficient service with maximum professionalism and courtesy with adequate and appropriate

support superseding the expectations will be achieved. For developing a strong relationship

with our valued patrons CTB’s employees will heartily greet them immediately upon their

entrance in the Dhaka office and in the camp ground, design creative and exciting camping

schedule with the customers, provide them with professional service, and guarantee

satisfactory experience and make them realize how much they are really valued.

The following promotional activities will take place in the second year of the business:

DISCOUNT COUPONS:

Discount coupons for family, students and corporate clients will be provided. This

will mainly stimulate repeat purchase to the clients who have already taken the

service before. The sales representatives will mainly carry this coupons and this will

also be available in the camp ground.

CELL PHONE AND WEB PROMOTION:

CTB will form strategic alliance with the telecommunication service provider

Grameen Phone and Banglalink and will promote the camping packages to the GP

and Blink subscribers by sms.

E-mails with the information on the seasonal offering of the camping packages and

the special offers provided for festivals will be sent to the existing clients and the

potential customers.




8. HUMAN RESOURCE AND STRATEGY PLANNING

CTB is mainly a service business and the success of a service business greatly depends on the

way the human resources of the company deliver the service to the customers. The human




resource base of CTB will have to be enlightened with the enthusiasm for adventure and will

have to possess the strong motive for helping the customers to get the best experience filled

with thrills with CTB. Being one of the most important investment aspects of the business,

the human resource base of CTB will have to be the distinct competitive advantage of the

company.

Employees at CTB should be enjoying their work and should be given the opportunity to

contribute in the creative side of the business aspect. They will be given the flexibility to plan

on the camping program with the customers and also in the ways to attract and retain the

customer base. Team based work environment will be norm of the organizational culture at

CTB.

OBJECTIVES

With these points of emphasis in mind, the human resource objective of CTB will be;

Having the right kind of people in the right place at the right time.

Team-based organizational culture enabling employees at all level to contribute on

how to continuously and creatively improve ways the camping service can be

delivered to the customers.

Trigger employee motivation through constant recognition and improve performance

through needed training and meticulous feedback.

8.1 KEY ISSUESHuman resource base of CTB will play a crucial role in the success of the organization.

Employees needs to feel the belongingness for the organization and thus should be pro-

actively working for the success of the whole work execution. The organizational culture is

demonstrated only by the attitude of its employees. For CTB, demonstrating passion for

camping and having an adventurous attitude towards outdoor activities and stay in the

employees will automatically exert motivation towards the campers who would be coming to

the camp ground. Thus the whole task should be initiated from the human resource base by

following some prime issues. Some of the aspects that are crucial to have an employee base

as a distinct capability for CTB are briefed below.




LEADERSHIP : :

The adventurous attitude and passion towards camping should infiltrate from the top of the

organization. Employees will be reinforced towards the liveliness and energetic form of

camping only when the leaders will demonstrate such traits. That is why; the first task of the

management team would be to believe in their quest for setting up a camp ground with other

relevant facilities. As a team of four partners, the management needs to demonstrate top-of-

the-line team sense, trust, integrity and reliability amongst them. The flexible attitude in

terms of communication, opinion generation etc. amongst them and with their employees will

lead employees ice break and build team with employees of the organization. The active and

continuous participation from the leadership will reinforce employees to work in

collaboration with them for the greater passion for providing customer with the unyielding

camping experience.

COMMUNICATION ::

All the partners will be ascending specific managerial area in accordance to their areas of

expertise and all will be demonstrating a flexible work attitude that allows employees to

communicate unhesitant. The human resource planning process will be having a very

informal organizational communication mode where employees of all level will be given the

platform to contribute in generating idea and improving the performance of the organization

as a whole. Employees can communicate any sorts of grievances or feedback strait to the

management team or any member of the management team. Thus the possible susceptibility

of grievances will be handled empathetically and employees will be regarding their

management as compassionate about the employees’ well-being. This communication mode

will be top-down, bottom-up and even cross-functional.

TEAM-BASED WORK :

Employees of different department will be working in teams for their core responsibilities.

Any sorts of improvement or creative brainstorming will be generated, designed and




implemented by the employees as teams. For example, the management group will be

randomly forming teams of employees periodically. These teams will be given task to solve a

particular problem or generate creative ideas for a development or improvement for certain

aspect of CTB. Their projects will be eventually evaluated by the management team and

according to their feasibility ad potential will be implemented in the CTB program. This is

how, CTB will be continually striving to come up with newer programs for it target

customers.

The teams will be made dynamic by comprising employees from all the division existing in

CTB. This will help the team to be fully capable of dealing with all the aspects of the project

and thus make programs or solve problems in the most suitable and complete form. With the

realization of their project, the employees will be able to recognize their contribution in the

organization and thus will be motivated to generate better output through their performance.

TRAINING ::

The trend of camping is almost non-existent in Bangladesh. At least it is not commercially

recognized. As the people of Bangladesh are not to much experienced in terms of camping,

thus the employee base will also be having insignificant background in terms of camp

experience and providing camping support and services to the customers. That is why,

initially meticulous planning is imperative to have a human resource base that would work as

an asset for the company. With the feasible and satisfactory financial outcome generated from

the first year, the employees will be getting constant training both formal and informal and

also through going to neighboring country (i.e. India) camp facilities for training on how to

work better and serve the best as camping service facilitators.

8.2 ORGANIZATIONAL STURCTURE


CHIEF CHIEF MARKETINMARKETING OFFICERG OFFICER

CHIEF CHIEF MARKETINMARKETING OFFICERG OFFICER

CHIEF CHIEF OPERATIONS OPERATIONS

OFFICEROFFICER

CHIEF CHIEF OPERATIONS OPERATIONS

OFFICEROFFICER

CHIEF HUMAN CHIEF HUMAN RESOURCE RESOURCE

OFFICEROFFICER

CHIEF HUMAN CHIEF HUMAN RESOURCE RESOURCE

OFFICEROFFICER

FOOD & HEALTH FOOD & HEALTH MANAGERMANAGER

FOOD & HEALTH FOOD & HEALTH MANAGERMANAGER

MAINTENANCE MAINTENANCE MANGERMANGER

MAINTENANCE MAINTENANCE MANGERMANGER

GENERAL GENERAL STORE STORE

& & PHARMACY PHARMACY ASSISTANTSASSISTANTS

GENERAL GENERAL STORE STORE

& & PHARMACY PHARMACY ASSISTANTSASSISTANTS

CAFETERIA CAFETERIA COOKCOOK

CAFETERIA CAFETERIA COOKCOOK

CAFETERIA CAFETERIA ASSISTANTSASSISTANTS

CAFETERIA CAFETERIA ASSISTANTSASSISTANTS

RECEPTIONISTSRECEPTIONISTSRECEPTIONISTSRECEPTIONISTS

SECURITYSECURITYSECURITYSECURITY

CLEANERCLEANERCLEANERCLEANER

ELECTRICIANELECTRICIANELECTRICIANELECTRICIAN

PLUMBERPLUMBERPLUMBERPLUMBER

DRIVERDRIVERDRIVERDRIVER

PEONPEONPEONPEONEMERGENCY EMERGENCY MEDICAL MEDICAL OFFICEROFFICER

EMERGENCY EMERGENCY MEDICAL MEDICAL OFFICEROFFICER

TOP TOP MANAGEMEMANAGEME

NT TEAMNT TEAM

TOP TOP MANAGEMEMANAGEME

NT TEAMNT TEAMCHIEF CHIEF

FINANCE FINANCE OFFICEROFFICER

CHIEF CHIEF FINANCE FINANCE OFFICEROFFICER

CASH CASH MANAGERMANAGER

CASH CASH MANAGERMANAGER

ACCOUNTANTACCOUNTANTACCOUNTANTACCOUNTANT

MARKETING MARKETING MANAGERMANAGER

MARKETING MARKETING MANAGERMANAGER

DIRECT SALES FORCEDIRECT SALES FORCEDIRECT SALES FORCEDIRECT SALES FORCE

FLOWER FLOWER VENDOR VENDOR LIAISON LIAISON OFFICEROFFICER

FLOWER FLOWER VENDOR VENDOR LIAISON LIAISON OFFICEROFFICER

MANAGERMANAGER(FLOWER (FLOWER

BUSINESS)BUSINESS)

MANAGERMANAGER(FLOWER (FLOWER

BUSINESS)BUSINESS)

GARDENERSGARDENERSGARDENERSGARDENERS

COUNSELORCOUNSELOR

BOOKING BOOKING & &

TRANSPORTRANSPORT OFFICERT OFFICER

BOOKING BOOKING & &

TRANSPORTRANSPORT OFFICERT OFFICER

SITE & SITE & FACILITY FACILITY STAFFSSTAFFS

SITE & SITE & FACILITY FACILITY STAFFSSTAFFS

IT IT OFFICEROFFICER

IT IT OFFICEROFFICER



8.3 STAFFING PLAN AND REQUIREMENTS




The job specification and responsibilities of employees at the different level will be precisely

defined. Some of the important positions of responsibilities are briefed below;

T O P M A N A G E M E N T

The top management of CTB will comprise of four of the partners who will be separately

responsible to the activities of particular functions of the organization. They are all qualified

and experienced individuals in their own fields and also are experienced campers.

Job Description As the four functional divisions’ title refers, four of the chief officers will be performing their tasks separately in accordance to their respective function. However, as a team they will also constantly work together to bring coordination and integrate their functional tasks with each other so the alignment is ensured and synergy is created.

Chief Finance Officer

He will Direct the overall financial plans and accounting practices. Oversee treasury, accounting, budget, tax and audit activities of the organization and subsidiaries. Oversee financial and accounting system controls and standards and ensures timely financial and statistical reports for management use.

Chief HR Officer This person will be in charge of recruitment, hiring training and firing etc. She would be the one under whose supervision, the performance evaluation and recognitions will be controlled. The maintenance, food and health and divisions will be also under him.

Chief Marketing Officer

He will be responsible for the overall marketing and sales of both the camp and flower business where he would be delegating tasks to his sales force. He will be planning and executing all the promotional activities with the management and sales manager. Develop marketing strategies, evaluates market conditions and recommends policy changes to encourage maximum sales activity.

Chief Operations Officer

The whole camping program execution and facilities will be under this person. The service provided to the customers, services provided by the site and facility staffs and overall camping related activities will be under his discretion.

Pay Structure All the partners will hold 25% share of the organization. They will be deciding on their salary structure and compensation package based on the initial financial result of the whole venture.

Counselor




Job Description The counselor will be an external person who will be periodically visiting the campsite. This person will be then examining the natural or environmental aspects of the whole campsite. The flower business maintenance and soil, fossil, insects, hazardous elements etc will be evaluated by him to ensure the camp ground is in safe state and thus he would recommend inputs for improvement.

Job Requirements This person will have to have at least five to seven years of experience in the field of environmental science and agronomy. It is preferred that he is currently a consultant in any environmental development related NGO from which CTB can get technical, human resource and logistical support for environmental examination if required by the counselor.

Pay Structure As this person will be an educated and renowned person in the environmental, forestry and agronomy field, his salary will be done on the number of consultancy he would be providing and in based on his regular consultancy fee. The estimated fee can thus be Taka 5,000/= per consultancy.

Marketing Manager

Job Description Marketing manager will organize motivate and lead sales teams. Responsible for the combined performance of the team and for ensuring sure that everyone within his team reaches the targets. He will plan the target with the CMO. He will also plan promotional and other marketing related activities with the CMO and also the sales force

Job Requirements This person will require a master degree in Marketing and 7-8 years relevant experience, or equivalent.

Pay Structure & Compensation Package

The monthly Salary will be Taka 50,000/=. Bonus of Taka 25,000/= will be given on achieving sales target. Personal medical care will be free. Gas, electricity, cellular phone, separate office space, telephone facilities will be provided. An additional festival bonus of taka 7,000 will be paid twice.

Packages to make the post attractive

A great opportunity to earn a significantly higher salary with other compensation packages. A position that commands respect as well as responsibility and opportunity to earn extra through increased sales. With the performance evaluation, possibilities of annual increment on his salary. Be the leader or smart and dynamic sales force and experience the true.

F O O D & H E A L T H M A N A G E R

Job Description This people will be facilitators to the customers who will come to camp. They will provide all the necessary assistance and will guide customers throughout the camping trip. They will plan the camp trip with the customers and give them proper knowledge, information and quick training on how to go about




camping. Each camping team will have one or a group of site-facility staff depending on the size of the customer group.

Job Requirement Candidates applying for this position must have at least H.S.C passed certificate. They should be physically fit, energetic and to some extent athletic. These people will be thoroughly trained to become camp guides. They must demonstrate good interpersonal, courage and planning skills as well.

Pay Structure The salary structure would be monthly taka. 12,000. Bonuses will be awarded twice a year in the amount of taka. 4000.

Compensation Package

Medical care for individual will be free. Employees will also be awarded with salary increments based on performance evaluation done by the customers. There will be a 20 days yearly holiday.

Packages to make the post attractive

Opportunity to meet different people and guide them to spend fruitful and exciting time. Diverse training and skill development and improved inter-personal skill.

Site & Facility Staffs

Job Description This person will be having the core responsibility to administer and manage all the activities relating to the flower business. Thus he will be planning on the seed, fertilizer, pesticides, and bundling, boxing, storing schedules regarding the flower business. He will be in contact with the transportation officer for flower delivery. The gardeners will also be under his supervision.

Job Requirement Candidate with bachelor’s degree in management and 2-3 years of experience preferably in the environmental side will be preferred.




M A N A G E R – F L O W E R B U S I N E S S

Job Description This person will be having the core responsibility to administer and manage all the activities relating to the flower business. Thus he will be planning on the seed, fertilizer, pesticides, and bundling, boxing, storing




schedules regarding the flower business. He will be in contact with the transportation officer for flower delivery. The gardeners will also be under his supervision.

Job Requirement Candidate with bachelor’s degree in management and 2-3 years of experience preferably in the environmental side will be preferred.




Initial Staff Requirement

Position Number of employees

Cash Manager 1Accountant 2 (1 in Dhaka office + 1 in the site)Food & Health Manager 1General Store & Pharmacy Assistant 2Emergency Medical Officer 1Cafeteria Cook 1Cafeteria Assistant 2Maintenance Manager 1Receptionist 2 (1 in Dhaka office + 1 in the site)Security 30Cleaner 2Driver 1Peon 2Electrician 1Plumber 1Marketing Manager 1Sales Force 16IT Officer 1Manager- Flower Business 1Flower Vendor Liaison Officer 1Gardner 2Site & Facility Staff 6Booking and Transport Officer 1

8.4 EXPECTATIONSThe expectation between the management and the employees will be established and

balanced in a planned flow. This flow will start with the management’s providing employees

with training which will be eventually evaluated and given feedback upon. Based on the




evolution employees will be rewarded and eventually they will be included in the program

improvement and activity developmental works. The whole flow can be as follows:

TTRAININGRAINING:: The two important group of training participants will be;

□ The Sales Force

□ The Site & Facility Staffs

Main Training Focus: Main Training Focus: □ Selling skills

□ Camp Experience – Simulation

□ First Aid training

□ Environmental Protection & Maintenance knowledge

□ Behavior Management

EVALUATION, FEEDBACK & REWARDS:

The evaluation will be done of 3600 performance evaluation. This is most appropriate

because customers’ feedback on a site and facility staff will show how the service given

by him has been accepted or rejected by customers. Thus further improvement to be

customer responsive will be addressed. A peer will be better able to scrutinize each

other’s flaw as they will better know how genuinely they task has been delivered and thus

how better it can be done. Supervisors are the one on whom employees at different level

will be accountable thus it is imperative in any sorts of evaluation process. Also

subordinates will be able to become flexible to work in a flat organizational culture if

they are given the platform to criticize or appreciate their supervisors. In this way team


TRAINING & TRAINING & DEVELOPMENTDEVELOPMENT

TRAINING & TRAINING & DEVELOPMENTDEVELOPMENT

EVALUATION, FEEDBACK EVALUATION, FEEDBACK & REWARDS& REWARDS

EVALUATION, FEEDBACK EVALUATION, FEEDBACK & REWARDS& REWARDS

PROGRAM/PROJECT PROGRAM/PROJECT PLAN, PROBLEM PLAN, PROBLEM

SOLVINGSOLVING

PROGRAM/PROJECT PROGRAM/PROJECT PLAN, PROBLEM PLAN, PROBLEM

SOLVINGSOLVING



building and group based work will also emerge. Subordinates will also get a chance to

do service better b learning from the flaws and successes of their boss.

Reward will be given to those who will get better result in their evolution. For sales

representatives, the one who would bring the highest number of customers will get

rewarded and recognized.

PROJECT DESIGN/PROBLEM SOLVING:

There will be teams formed with different level and different departments of employees

who will be working together to create newer camping programs to deliver to customers.

There will be also teams of sales force who will be basically working to improve and plan

on the marketing aspects of CTB. Thus they will get more chance to contribute their

learning and experience in the workplace apart from their core work. Eventually with the

realization of their project of problem solution, they will be reinforced intrinsically as

well.

9. RISK ANALYSIS




9.1 FORSEEABLE BARRIERS AND UNFORCEABLE BARRIERSHigh financial investment and fixed assets acquisition can be recovered by a good and

sustainable number of customer inflows. If this is not achieved then the whole venture will

face tremendous loss.

Unpredictable political instability has always hampered business of all types in

Bangladesh. Sudden Hartal or highway blockage program by political parties will be

great barriers to smooth business for CTB. This may lead in losing empty campground

days due to failure in transporting customers from the station to the campground.

The power and energy scenario poses another potential threat as the site will be in a

relatively remote area quick support may become a bit challenging.

Awareness and experience in out-door camping is almost absent in both the customers

and employees base of CTB. The culture towards going for out-door camping thus

needs to be made in the most creative, constructive way so that it implies the social and

environmental factors strongly.

Security issue is a big factor in going for such camping business. The area “mustans”

and other related people who can create disturbance in the camp ground needs to be

dealt astutely. Political influence in this case is very crucial.

Natural calamity and weather volatility holds a grave risk for both the camping and

flower business.




10. FINANCIAL MANAGEMENT PLAN

The Camping business that we are introducing is a relatively new concept in Bangladesh. We

are expecting to have a reasonable scale of market demand for this business as similar sort of

business package tours, which are currently existing in Bangladesh with favorable market

demand.

As CTB is going to be the pioneer in providing camping services, we have to bear significant

pioneering costs that later entrants do not. Later entrants might be able to free-ride on our

investment in pioneering the market and customer education. Also, we are more prone to

make mistakes as new entrepreneurs and run the risk of building the wrong resources and

capabilities.

Initial investment in this project will be quite high because of required acquiring of a wide

variety of fixed assets like land, office buildings, Vehicles, boats, generators, camping

equipments etc. Also, We need to take necessary steps for the proper setup of our side

business of flower plantation and selling at the beginning.

10.1 ASSUMPTIONSAfter conducting all the required research, forecasting and analysis, we have found that the

initial investment or project cost of our business would be 53,500,000 Taka. We have studied

our market and made some financial assumptions which would help us to invest this total

investment effectively and would give us the maximum return. We are expecting to recover

the initial investment in 3.75 years.

CTB’s investment is divided into two major categories, namely the ‘core business of camping

site’, and the ‘side-by-side seasonal flower business’. The assumptions we have made during

estimating our balance sheet for the first five years of the business are:

10 bighas of lands is bought at Tk.20, 00,000 per bigha. 40 bighas of lands is leased at Tk.1, 00,000 per bigha (token value) for ten years from

the Government of Bangladesh. An office building of 4000 square feet will be constructed by investing Taka 4300000

and would depreciate at the rate of 2.5% a year. Trees and plants will be bought at Taka 40, 00, 000.




Office furniture, computers, printers will be bought by investing 2, 00, 000 and will depreciate at the rate of 5% per year.

Sports and other recreational equipments would cost 2, 500000 and would depreciate 5% a year

Fencing and wall would cost Tk.5, 00, 000 and would depreciate at the rate of 5% per year.

Lake development for boating and other recreational purposes would cost another Tk.5, 00, 000.

Two 5-MVA generators would cost total 5, 00, 000 taka and would depreciate at a rate of 5% per year.

One Pickup Van for transportation purposes would cost another Taka 10, 00, 000 and would depreciate at the rate of 5% per year.

Camping equipments would cost Taka 3, 60, 000 and would depreciate at 5% per year.

Five Boats will be bought at taka 10, 000 each and would depreciate at 5% per year. Land Purchase & development for flower garden would cost tk.5, 00,000 and would

depreciate by 5%. One fountain near the flower garden would cost taka 5, 00,000 and depreciate at the

rate of 5% per year. One 5 MVA generator for flower garden would cost taka 2, 50, 000 and would

depreciate at 5% each year. Irrigation equipments would cost tk.2, 00, 000 and this would also depreciate at 5%

per year. Long term business loan of Taka 10,104,847 would be taken from the bank at 12.5 %

interest rate. 25% of the total salary and wages has been taken into account as the part of the initial

investment. The rest of the yearly salary and wages will be paid from the second quarter as the cash inflow improves with generation of revenue.

REVENUE AND COST RELATED ASSUMPTIONS :

We are expecting to have 50 customers per day on average, totaling 18000 customers

in the first year. They will be charged Tk.500 per day and will enjoy all the features of

the campground. Customers will be provided with three basic meals every day, cost of

which is included in the ticket charge. Other extra meals have to be bought by the

clients as there will be a food corner in the campground. Revenue from there is hold

to be taka 9, 00, 000 in the first year.

Revenue will grow at the rate of 25% over time as we are anticipating that more

people will be aware and interested about this camping concept.

Costs of the service provided is just the food that is given to the customer. This is

expected to grow 15% over the years. Other costs are included in the operating

expenses.




Account receivable is assumed to be 10% of sales as year ending camping charge by

corporate clients through credit cards may not be collected that year. Office supplies

is hold to be taka 5, 00, 00 and Camping supplies like small accessories is hold to be

taka 6, 00, 00 a year.

OTHER ASSUMPTIONS :

Market Interest rate is taken to be 12.50% per annum. It is used for discounting our

Free Cash Flows of first 10 years’ expected values.

Business life has been set to be 10 years.

Free Cash Flow grows at 33.59% in first 5 years, and it continues so up to just before

10th year, then it slows down at a stagnant 5% growth rate per annum from the 10 th

year, because at that time market is expected to be saturated.

Risk-Free rate of interest in Bangladesh is taken to be 7.126%. Data from Treasury

securities interest rates of varying maturities have been weighted averaged to

calculate this value. Source: Bangladesh Bank

We will follow Straight-line Depreciation method for our fixed assets in the following rates:

Fixed Asset Schedule Cost in takaDepreciation

Rate

Land 24,000,000 0.00%

Building 4,300,000 2.50%

Plantation 4,000,000 0.00%

Sports Equipment 2,500,000 5.00%

Office furniture, computers, printers 200,000 5.00%

Fencing and Wall 500,000 5.00%

Lake 500,000 0.00%

Camping Equipment (Fixed) 360,000 5.00%

Generator 500,000 5.00%

Pickup Van 1,000,000 5.00%




Boats 50,000 5.00%

10.2 FINANCIAL PLAN Total investment required in this project is Taka 53,500,000. Here, Equity investment

would be Taka 42,800,000.

Long term business loan of Taka 10,700,000 would be taken from the bank at 12.5 % interest

rate.

Total Investment (Equity) in Flower Project

2,500,000

Total Investment in Camping Project 51,000,000

Total Investment in CTB 53,500,000

Break-Down of Investment:

Total Investment in CTB 53,500,000

Total Owner's Equity 42,800,000

Total Long Term Debt 10,700,000

BREAK DOWN OF THE COSTS OF THE CAMPING PROJECT

Fixed Costs

Item Detail TK.

Owned Land (10 Bighas @Tk 20 lakhs) (10 Bighas @Tk 20 lakhs) 20,000,000

Leased Land (40 Bighas @Tk 1 lakhs) (40 Bighas @Tk 1 lakhs) 4,000,000

Buildings (4,000 sq. feet @ 1,000 + 3,00,000) (4,000 sq. feet @ 1,000 + 3,00,000) 4,300,000

Plantation 4,000,000

Office furniture, computers, printers 200,000

Ride and Sport equipment 2,500,000

Fencing & Wall 500,000

Lake 500,000

Generator ( 2 unit) (2 pieces @250000) 500,000

Pickup Van (1 van @10,00000) 1,000,000

Camping Equipment (Fixed items) 360,000

Boats (5@10,000) (5 boats@10,000) 50,000




Others nil

TOTAL FIXED COSTS 37,910,000

Preliminary Costs

Items TK.

Financial Expense 3,953,500

Operating Expense 8,579,000

Prepaid Expense 100,000

Office Supplies 50,000

Camping Supplies 60,000

TOTAL PRELIMINARY COST 12,742,500

TOTAL COST OF THE CAMPING PROJECT50,652,500

LOAN SCHEDULE

Loan Schedule Year 1 Year 2 Year 3 Year 4 Year 5

Opening Balance10,700,000 10,104,847 9,435,300 8,682,059 7,834,664

Loan Repayment (Principal+ Interest)

1,932,653 1,932,653 1,932,653 1,932,653 1,932,653

Closing Balance 10,104,847 9,435,300 8,682,059 7,834,664 6,881,344

Interest Rate 12.50% 12.50% 12.50% 12.50% 12.50%

Interest Expense 1,337,500 1,263,106 1,179,412 1,085,257 979,333

BS Long-term Bank Loan 10,104,847 9,435,300 8,682,059 7,834,664 6,881,344




10.3 INCOME STATEMENT

COMPANY PROFIT / LOSS STATEMENT

Year 1 Year 2 Year 3 Year 4 Year 5

Revenues (18000 units @ Taka 500)

9,000,000 11,250,000 14,062,500 17,578,125 21,972,656

Revenue from Food & Medicine

900,000 1,125,000 1,406,250 1,757,813 2,197,266

LessCosts of Services Provided (18000 units @ Taka 224.7)

4,044,000 4,650,600 5,348,190 6,150,419 7,072,981

5,856,000 7,724,400 10,120,560 13,185,519 17,096,941

Operating Expense

Land Development & Maintenance

2,800,000 200,000 200,000 200,000 200,000

Bird Park Maintenance 650,000 300,000 300,000 100,000 100,000

Fish Maintenance 500,000 500,000 500,000 500,000 500,000

Pesticide 85,000 85,000 85,000 85,000 85,000

Utility Expenses 500,000 500,000 500,000 500,000 500,000

Gross Profit 1,321,000 6,639,400 9,035,560 12,100,519 16,011,941

Sales, Rent and general & administration Exp

100,000 100,000 100,000 100,000 100,000

Salary and wages 4,350,000 4,567,500 4,795,875 5,035,669 5,287,452

Depreciation Expense 331,000 331,000 331,000 331,000 331,000

Other Expenses(Consultancy Fees)

50,000 50,000 50,000 50,000 50,000

Advertising (Television, Poster, Billboard, Magazine)

1,235,000 1,150,000 1,100,000 1,050,000 1,050,000

Legal fee 50,000 50,000 50,000 50,000 50,000

Operating Profit - 4,795,000 4,958,400 7,404,560 10,519,519 14,430,941

Interest Expense 1,337,500 1,263,106 1,179,412 1,085,257 979,333

Net Income From Camping Project -6,132,500 2,495,294 5,075,148 8,334,262 12,351,608

Net Income From Flower Project 670,500 1,327,800 1,789,990 1,840,540 1,874,916

Profit Before Taxes -5,462,000 3,823,094 6,865,138 10,174,801 14,226,524

Taxes (40%) 0 -1,529,238 -2,746,055 -4,069,920 -5,690,610

Net Profit -5,462,000 2,293,856 4,119,083 6,104,881 8,535,914




10.4 BALANCE SHEET

COMPANY BALANCE SHEET


ASSETS

1 Current Assets

Cash 8,191,347 11,396,500 15,945,216 22,411,849 31,400,755

Account Receivables 900,000 1,125,000 1,406,250 1,757,813 2,197,266

Prepaid Expenses (Utilities & others)

100,000 100,000 100,000 100,000 100,000

Office Supplies 50,000 30,000 30,000 30,000 30,000

Camping Supplies 60,000 60,000 60,000 60,000 60,000

Total Current Assets in Flower Business

1,843,000 3,243,300 5,105,790 7,018,830 8,966,246

Total Current Assets 11,144,347 15,954,800 22,647,256 31,378,491 42,754,267

2 Fixed Assets

Owned Land (10 Bighas @Taka 20 lakhs)

20,000,000 20,000,000 20,000,000 20,000,000 20,000,000

Leased Land (40 Bighas @ Taka 1 lakh)

4,000,000 4,000,000 4,000,000 4,000,000 4,000,000

Buildings (4,000 sq. feet @ 1,000 + 3,00,000)

4,300,000 4,300,000 4,300,000 4,300,000 4,300,000

Plantation 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000

Office furniture, computers, printers 200,000 200,000 200,000 200,000 200,000

Ride and Sport equipment 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000

Fencing & Wall 500,000 500,000 500,000 500,000 500,000

Lake 500,000 500,000 500,000 500,000 500,000

Generator ( 2 unit) 500,000 500,000 500,000 500,000 500,000

Pickup Van 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

Camping Equipment (Fixed items) 360,000 360,000 360,000 360,000 360,000

Boats (5@10,000) 50,000 50,000 50,000 50,000 50,000

Total Fixed Assets 37,910,000 37,910,000 37,910,000 37,910,000 37,910,000

Less: Accumulated Depreciation 331,000 662,000 993,000 1,324,000 1,655,000

Net Fixed Assets 37,579,000 37,248,000 36,917,000 36,586,000 36,255,000

Net Fixed Assets in Flower Project 1,377,500 1,305,000 1,232,500 1,160,000 1,087,500

3 Intangibles(Goodwill, Patents) 0 0 0 0 0

4 TOTAL ASSETS 50,100,847 54,507,800 60,796,756 69,124,491 80,096,767





LIABILITIES AND OWNER'S EQUITYYear 1 Year 2 Year 3 Year 4 Year 5

5 Current liabilities

Income taxes payable @ 40% 0 1,529,238 2,746,055 4,069,920 5,690,610

Interest payable @12.5% 1,337,500 1,263,106 1,179,412 1,085,257 979,333

Accrued Expense Payable(Camping)

600,000 600,000 600,000 600,000 600,000

Accrued Expense Payable(Flower) 50,000 50,000 50,000 50,000 50,000

Other 0 0 0 0 0

Total Current liabilities 1,987,500 3,442,344 4,575,467 5,805,178 7,319,943

6 Long Term Liabilities

Business Loans (Long-term Bank Loan)

10,104,847 9,435,300 8,682,059 7,834,664 6,881,344

Others 0 0 0 0 0

Total Long Term Liabilities 10,104,847 9,435,300 8,682,059 7,834,664 6,881,344

7 Owner's Equity

Equity in Camping Project 40,300,000 40,300,000 40,300,000 40,300,000 40,300,000

Invested Capital in Flower Project 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000

Accumulated Retained Earning(Camping Project)

-5,462,000 -3,168,144 950,939 7,055,820 15,591,734

Accumulated Retained Earning(Flower Project

670,500 1,998,300 3,788,290 5,628,830 7,503,746

Total Owner's Equity 38,008,500 41,630,156 47,539,229 55,484,649 65,895,480

8 TOTAL LIABILITIES AND EQUITY50,100,84

754,507,80

060,796,75

669,124,491 80,096,766



10.5 CASH FLOW STATEMENT

EXPECTED CASH FLOW OF THE COMPANY


Cash flow from Operating Activities

(Adjustment to reconcile net income to net cash provided by Operating activities)

Net Income -5,462,000 2,293,856 4,119,083 6,104,881 8,535,914

Add: Depreciation 331,000 331,000 331,000 331,000 331,000

Add: Amortization 0 0 0 0 0

Deduct: Increase in AC Receivables

-900,000 -225,000 -281,250 -351,563 -439,453

Add: Increase in Payable 600,000 0 0 0 0

Add: Interest payable Increase 1,337,500 -74,394 -83,693 -94,155 -105,924

Add: Increase in Tax Payable 0 1,529,238 1,216,817 1,323,865 1,620,689

Net Cash Provided by Operating Activities

-4,093,500 3,854,700 5,301,956 7,314,029 9,942,226

Cash Flows from Investing Activities

Cash Outflows for Initial Investment

38,120,000 20,000 0 0 0

Net cash Used by Investing Activities

-38,120,000 20,000 0 0 0

Cash Flows from Financing Activities

Cash inflows from the owners contribution

40,300,000 0 0 0 0

Cash inflows from the Term Loan

10,700,000 0 0 0 0

Repayment of Principal of Term Loan

-595,153 -669,547 -753,241 -847,396 -953,320

Net cash Provided by Financing Activities

50,404,847 -669,547 -753,241 -847,396 -953,320

Net increase in cash 8,191,347 3,205,153 4,548,716 6,466,633 8,988,906

Add: Cash at the Beginning of the year

0 8,191,347 11,396,500 15,945,216 22,411,849

Cash at The End of the Year 8,191,347.00 11,396,499.88 15,945,215.83 22,411,848.76 31,400,754.83




10.6 RATIO ANALYSIS

1. LIQUIDITY :

Overall, Camp To Bangladesh seems to be more liquid over first 5 years of its

operation. There is a trend of Net Working Capital to increase over time.

Liquidity Ratios

01. NWC to Total Asset Ratio

0.18 0.23 0.30 0.37 0.44

02. Current Ratio 5.61 4.63 4.95 5.41 5.84

03. Quick Ratio 4.57 3.64 3.79 4.16 4.59

04. Cash Ratio 4.12 3.31 3.48 3.86 4.29


FINANCIAL RATIOSRATIOS Year 1 Year 2 Year 3 Year 4 Year 5

Liquidity Ratios

01. NWC to Total Asset Ratio 0.18 0.23 0.30 0.37 0.44

02. Current Ratio 5.61 4.63 4.95 5.41 5.84

03. Quick Ratio 4.57 3.64 3.79 4.16 4.59

04. Cash Ratio 4.12 3.31 3.48 3.86 4.29

Efficiency Ratios

01. Total Asset Turnover 0.12 0.15 0.18 0.20 0.23

02. Average Collection Period 56.10 47.84 45.65 43.79 42.22

03. Inventory Turnover 1.00 0.35 0.18 0.12 0.1104. DSI or ,Inventory Period(Days)

365.00 1034.17 2007.50 3102.50 3467.50

05. PDP(Days) 260.71 608.33 912.50 1216.67 1216.67

06. CCC(Days) 160.38 473.68 1140.65 1929.63 2293.05

07. NWC Turnover Ratio 0.64 0.71 0.66 0.60 0.56

NOTE: Ratio No. 3,4,5 & 6 are only applicable for Flower Business

Leverage Ratios

01. LT Debt Ratio 0.21 0.18 0.15 0.12 0.09

02. LT Debt-equity Ratio 0.27 0.23 0.18 0.14 0.10

03. Total Debt Ratio 0.24 0.24 0.22 0.20 0.18

04. TIE Ratio -3.59 3.93 6.28 9.69 14.74

05. Cash Coverage -3.28 4.25 6.62 10.06 15.15

06. LT Debt to Total Debt 0.84 0.73 0.65 0.57 0.48

07. Debt Equity Ratio 0.32 0.31 0.28 0.25 0.22

08. Equity Multiplier 1.32 1.31 1.28 1.25 1.22

Profitability Ratios01. Return on Investment -0.10 0.09 0.12 0.15 0.1802. Operating Profit Margin -0.82 0.64 0.73 0.80 0.84

03. A/R Turn over 1.00 1.00 1.00 1.00 1.00

04. Fixed Asset Turnover 0.15 0.20 0.27 0.35 0.46

05. ROA -10.90% 4.21% 6.78% 8.83% 10.66%

06. ROE -14.37% 5.51% 8.66% 11.00% 12.95%



Both Current and Quick ratios have fallen in 2nd and 3rd year, but then again it started

increasing in 4th and 5th year and so on.

2. EFFICIENCY :

Overall, Camp To Bangladesh seems to be getting more efficient over time. Its total

asset turnover has increased by almost 200% in first 5 years of operation. It declined

from 0.12 to 0.23.

Then again, CTB’s Average Collection Period and Inventory Turnover period ratios also seem

to very efficient. These ratios are mainly ‘Flower Business Section’. Since CTB is itself its

supplier in flower business, Cost of Goods Sold has declined and so has its two ratios.

Efficiency Ratios

01. Total Asset Turnover 0.12 0.15 0.18 0.20 0.23

02. Avg Collection Period 56.10 47.84 45.65 43.79 42.22

03. Inventory Turnover 1.00 0.35 0.18 0.12 0.11

04. DSI or, Inventory Period(Days) 365.00 1034.17 2007.50 3102.50 3467.50

3. LEVERAGE :

Camp To Bangladesh has reduced its leverage over time due to its risk-averse attitude

towards business. Its Long term liability mainly consists of long-term bank loans. So

it is expected to pay back most of its debts in first 5 years.

This is why CTB’s LT Debt ratio declined from 21% to as low as 9% in the fifth year. Again

their earning see to be sufficient enough to pay back all its fixed financial expenses each

year. Their TIE ratio, although negative only in the first year, seems to improve over 5 years.

Leverage Ratios

01. LT Debt Ratio 0.21 0.18 0.15 0.12 0.09

02. LT Debt-equity Ratio 0.27 0.23 0.18 0.14 0.10

03. Total Debt Ratio 0.24 0.24 0.22 0.20 0.18

04. TIE Ratio -3.59 3.93 6.28 9.69 14.74

05. Cash Coverage -3.28 4.25 6.62 10.06 15.15

06. Equity Multiplier 1.32 1.31 1.28 1.25 1.22




Their TIE ratios mean that they have enough ‘Earning before Interest and Taxes’, 6

times, 9 times and even 14 times earnings over their interest expenses in 3 rd, 4th and 5th

year respectively. Their Cash coverage ratios have the similar pattern.

CTB’s equity multiplier is slightly above 1, ranging somewhere between 1.25 and

1.30, meaning that they are not very highly leveraged with debts.

5. PROFITABILITY :

CTB has a negative return on its investment in Year 1 only. Then it improved and

quite took off from the 5th year with a ratio of as high as 0.18.

Their operation seems to suffer in the first year as well, as we see a negative operating profit

margin of -0.82. This is mainly due to high operating expenses in those early years of

business operation.

Profitability Ratios

01. Return on Investment -0.10 0.09 0.12 0.15 0.18

02. Operating Profit Margin -0.82 0.64 0.73 0.80 0.84

03. A/R Turn over 1.00 1.00 1.00 1.00 1.00

04. Fixed Asset Turnover 0.15 0.20 0.27 0.35 0.46

05. ROA -10.90% 4.21% 6.78% 8.83% 10.66%

06. ROE -14.37% 5.51% 8.66% 11.00% 12.95%

Then its Operating profit margin seems to improve from 0.64 in 2nd year to 0.84 in the

5th year. CTB’s Accounts receivable turnover is expected to keep constant over 5

years by its strict management of liquid assets.

Its fixed asset turnover is expected to remain very low (at only 0.15 and 0.20 in Year

1 and Year 2 respectively). However, this ratio is expected to take off and be in a

good position over time. Because, any business needs to utilize its fixed assets in a

profitable way over time, once they are well experienced into the business.

Finally, to measure, CTB’s profitability, we look at their ROA (Return on Assets) and

ROE (Return on Equity) ratios. Both of them show similar patterns. Starting with

negative values in the first year, they are expected to 11% and 13% respectively

within first 5 years of business.




10.7 FINANCIAL ANALYSIS NET PRESENT VALUE (NPV)

From 5 years’ forecast, we observe a trend growth rate slightly above 39.15% in the

company’s free cash flows. If we take that growth rate, we can forecast next 5 years’ cash

flows as well. With initial investment of more than Taka 38,000,000, we get a small net

present value of about Taka 21,000,000 in first five years. It indicates that, in this heavy

leveraged business, where capital investment is much higher, 5 years’ is not sufficient to get

the business start off successfully.

NET PRESENT VALUE

Normal DiscountedInitial Investment

53500000.00

FCF1 8,191,347.00 7,281,197.33

FCF2 11,396,499.88 9,004,641.88

FCF3 15,945,215.83 11,198,834.71

FCF4 22,411,848.76 13,991,606.85

FCF5 31,400,754.83 17,425,188.14

FCF6 41,949,474.00 20,692,424.77

FCF7 44,046,947.71 19,312,929.79

FCF8 44,046,947.71 17,167,048.70

FCF9 44,046,947.71 15,259,598.84

FCF10 46,249,295.09 14,242,292.25

NPV in 5 years 20,892,968.91

NPV in 10 years 107,567,263.27

*All discounted free cash flows

Growth rate in first 5 years 0.33

Growth rate from the 10th year 0.05




However, 10 year result is quite satisfactory. Even though at the 10 th year, the

business is expected to slow down due to market saturation. We get a positive net

present value of more than Taka 107,500,000. This result certainly justifies our

possibility of investment in this business. However, result of this NPV relies much on

how long investors are willing to wait until they get back their money.

BREAK-EVEN ANALYSIS

If we look at our break-even trends over time, we can easily see a satisfactory

downward trend in all of the burden values. Since break-even point are the minimum

points required to be achieved by business simply to cover its fixed cost, the smaller

the values, the less the burden on us.

From the table, we can see that fixed costs have steadily declined from some

11,988,500 to only some Taka 9,232,785 in first five years. Only variable costs have

increased from some Taka 4,044,000 to Taka 7,072,981.

BEP

Break Even Sales =FC/(1-(VC/S)

Items Year 1 Year 2 Year 3 Year 4 Year 5Fixed Cost, FC

11,988,500 9,096,606 9,191,287 9,086,926 9,232,785

Variable Cost, VC

4,044,000 4,650,600 5,348,190 6,150,419 7,072,981

Total Sales, S

9,900,000 12,375,000 15,468,750 19,335,938 24,169,922

VC / S 0.4085 0.3758 0.3457 0.3181 0.2926

(1-VC/S) 0.5915 0.6242 0.6543 0.6819 0.7074

FC/(1-VC/S), BEP (Tk.) 20,267,444 14,573,365 14,048,405 13,325,546 13,052,376

Customer-Days#40,535 29,147 28,097 26,651 26,105

(@ Tk. 500)

Avg. No of Customers111 80 77 73 72

Per day to break-even

In contrast our sales are expected to observe a robust growth over this period, ranging

from only some 10,000,000 in Year 1 to eventually Taka 24,000,000 in year 5. As a

result VC/Sales ratio is managed to be in between 0.60 and 0.70. On average 65%

variable costs have caused our break-even points go down over time.




Number of units in ‘customer days’ (which can also be expressed as one customer a

day) has declined from some 40,000 units to only 26,000 units annually.

Therefore, we require only 111 visitors per day in Year 1 to just break-even. This

requirement is expected to gradually decline up to around only on average 72 visitors

a day to cover our fixed costs. These requirements are far below our capacity and

expected number of visitors per day each year, considering all seasonal variations and

off-seasons’ decline.

WEIGHTED AVERAGE COST OF CAPITAL

We know that weighted average cost of capital is the average of the after-tax costs of

each of the sources of capital used by a firm to finance a project. The weights reflect

the proportion of the total financing raised from each source. (Arthur J. Kewon, et al.)

Now we look at Camp To Bangladesh’s WACC, and we see that its WACC hovers

around some 7.5% in the first 5 years of the business.

WACC (Weighted Average Cost of Capital) Formula: WACC = WdKd(1-T) + WeKe

Where, Wd = Weight of Debt Kd = Cost of Debt

We = Weight of Equity Ke = Cost of Equity

T = Tax Rate (40%)

Item Year 1 Year 2 Year 3 Year 4 Year 5Long-term Liabilities 10,104,847.00 9,435,299.88 8,682,059.36 7,834,663.78 6,881,343.75

Equity 38,008,500.00 41,630,156.48 47,539,228.98 55,484,649.13 65,895,480.07

Total LT Debt & Equity (4) 48,113,347.00 51,065,456.35 56,221,288.34 63,319,312.91 72,776,823.82

Weight of Debt Wd 0.21 0.18 0.15 0.12 0.09

Financial Exp (Int) (2) 1,337,500.00 1,263,105.88 1,179,412.48 1,085,257.42 979,332.97

(a) (2)/(1) = Cost of Debt, Kd

0.1324 0.1339 0.1358 0.1385 0.1423

Tax rate, T 0.0000 0.4000 0.4000 0.4000 0.4000

After Tax Cost of Debt 0.1324 0.0803 0.0815 0.0831 0.0854

Owners' Equity (3) 38,008,500.00 41,630,156.48 47,539,228.98 55,484,649.13 65,895,480.07

(3)/(4) = Weight of We 0.79 0.82 0.85 0.88 0.91

Risk Free Rate, RFR (a) 0.07125 0.07125 0.07125 0.07125 0.07125

Beta (b) 0.0005 0.0005 0.0005 0.0005 0.0005

Market Return 0 0 0 0 0

Cost of Equity (Ke) (b) 0.0712 0.0712 0.0712 0.0712 0.0712

WACC 8.41% 7.29% 7.28% 7.27% 7.26%

* Risk Free Rate of Interest is taken at 7.125% per annum




The interpretation of this value would be that the ‘rate of return’ or IRR (Internal Rate

of Return) has to be higher than this WACC value to have the project profitable for

investors. So, the decision criteria for whether to run this project or not would be,

IRR > WACC

In this case,

IRR has to be > 7.50%, on average.

INTERNAL RATE OF RETURN

Here, we calculate the internal rate of return of Camp to Bangladesh for first 10

years of operation, which is a capital-budgeting criterion that represents the rate of

return that a project earns.

IRR ( Internal Rate of Return)Present Values of 10 year’s Free Cash Flows

FCF1 7,281,197.33FCF2 9,004,641.88FCF3 11,198,834.71FCF4 13,991,606.85FCF5 17,425,188.14FCF6 20,692,424.77FCF7 19,312,929.79FCF8 17,167,048.70FCF9 15,259,598.84FCF10 14,242,292.25

Total PV of Inflows 145,575,763.27

Initial Outlay, IO 38,008,500.00

Formulae: IO = Total FCFs / (1+ IRR)^t)Here, t = 10Using a Financial Calculator (Trial & Error Method)

IRR = 29.64%

Since, our decision rule was that we would take the project if our IRR is higher than

WACC, here we get,

29.64% > 7.50%




Therefore, we have found that IRR > WACC. This means that weighted cost of our

invested capital is lower than our return on the same capital investment.

Hence, NPV and IRR jointly recommends this business project to be taken with

additional adjustment for risk-analysis, because duration for this business has to be at

least 3 years and 9 months to just break even the initial cost.




11. CONCLUSION

According to our research, some specific niche market in falling into a particular income

range are interested to avail such out-door camping facilities is there exists any. The venture

entails a genuine intension to contribute in the learning of people about environmental facts

and thus also work in improving the ecological and environmental factors of the country. A

strong motive is also to attract people towards more local tourism than going to other country

to spend holiday.

The financial analysis done in the business plan depicts that because of possessing a large

amount of fixed assets, our initial investment is quite high. However, in the eventual years

mostly the operating expenses will incur, which is insignificant compared to the total revenue

we will generate. The crucial task would be to create a culture towards camping and attract

people from different segments and diverse sector.




APPENDICES

RESEARCH QUESTIONNAIRE (SAMPLE)

NOTE: THE ORIGINAL QUESTIONNAIRES ARE ATTACHED LATER AFTER THE BIBLIOGRAPHY SECTION OF

APPENDICES

This interview is being conducted for academic purpose only. The records will be kept only till the completion of the course. We simply need your honest opinion. If you need to clarify for any queries, please contact us at 01731123830 or 01715538524. Thank you in advance for your assistance.

1. Have you heard about camping outdoor?

1 Yes2 No

2. Have you ever been to any outdoor camping trip?

1 Yes2 No

3. Do you know how outdoor camping trips are done?

1 Yes2 No

4. How many times a year do you usually go for local recreational trips i.e. family/official Picnic, semester break trips, holiday or weekend trips?

1 Once in 2/3 years2 Once a year3 Twice a year4 Randomly (irregular)

5. How many days are you willing to spend for an outdoor camping trip?

1 1-2 days2 2-3 days3 4- 7 days

6. How much do you spend for your local recreational trips per day?

1. Taka 100-500/person2. Taka 500-1000/person3. Taka 1000-2000/oerson4. Taka 2000-5000 (or more)/person




7. Please answer the next questions according to the following scale.

1= strongly agree2= Agree3= neither agree nor disagree4= Disagree5= strongly disagree

1 2 3 4 5

A). A camping facility could be good source of recreation

B). Camping can be a good substitution for Theme Parks

C). Camping can be a good substitution for Picnic Spots

D). Tourism industry of Bangladesh can provide good facilities for camping

E). I would want to be the first one to go for camping if there is any such facility in Bangladesh

F). Friends are the right company for camping

G). Camping can be a good substitution for Resorts

H). Camping can be a nice way to spend time with my family

I). Students can gather learning from the camping trips in enthusiastic manner

J). Children can develop themselves in camps by being close to nature

K). Schools and Colleges should organize camping trips if such camp ground facility exists

L). I have been waiting long for a suitable outdoor camp facility

M). Camping can be used as good team building mode for a group of people (i.e. students, colleagues etc.)

N). Camp ground should be somewhere near Dhaka

O). Camping without hill tracks will be incomplete

P). Camp ground should be away from the town and very close to nature

Q). I would not really go for any camp trips even if there is any such facilities available

R). Camping trips will never work in our country

S). I am not really clear and comfortable about the idea of camping

T) I am satisfied with the existing package tour companies



CAMP TO BANGLADESHCAMP TO BANGLADESH U) Camping can be a good alternative to package tours

Let us get to know you a little .

8. Gender

A). Male

B). Female

9. Monthly household income

A). Below TK 25,000

B). TK 25,000-49,999

C). TK 50,000-74,999

D). TK 75,000-99,999

E). TK 100,000 or above

10. Occupation

A). Student

B). Employee

C). House maker

D). Self employed

E). Others(specify)__________

11. Education level

A). O levels/SSC

B). A levels/HSC

C). Undergraduate/Honors

D). Postgraduate/Masters

E). Others (Specify)__________

8. Age group

A). 13-17 yrs

B). 18-22 yrs

C). 23-27 yrs

D). 28-32 yrs

E). 33-37 yrs

F). 38-42 yrs

G). 43 yrs and above

Thank you once again!




CAMPING RULES (SAMPLE)

To help make everyone's stay a pleasurable and enjoyable experience, we present the

following excerpts from the complete regulations, which can be found in the pamphlet,

"Rules and Regulations of CTB camping”

i. Camping is allowed at designated sites only and fees will be charged on a person/unit

basis.

ii. Campsite registration is on a first-come-first-served basis. Reservation of campsites is

permitted.

iii. Camping is limited to 14 consecutive days.

iv. Quiet hours are from 12:00 pm to 6:00 am.

v. Please keep a clean campsite during occupancy and upon departure.

vi. Trash bags are available to the attendant station for registered campers. Please deposit

bags in dumpsters.

vii. You may pick up dead timber lying on the ground for firewood, but please do not cut

any standing trees or brush.

viii. If you would like to have a ground fire, please pick a site that has a metal fire ring

provided. All ground fires must be confined to these fire rings.

ix. All vehicles must remain on roadways. When parking vehicles, keep at least two

wheels on the roadway or camp pad.

x. Report theft, loss, accident, or disturbance to Park Rangers or gate attendants.

xi. Alcohols are not allowed in the campsite.

GAMES TO BE PLAYED AT NIGHT TIME (SAMPLE)




Group Storytelling: One person starts a story and, after a while, points to someone else, who

continues the story. Player 1: "Once upon a time, there were three princesses living in a . . ."

Player 2: ". . . river! They were tiny mermaid princesses with purple hair, and they loved to

play with the fish and eat tasty . . ." Player 3: ". . . seaweed! Slippery slimy seaweed, the

slimier the better. One day . . ."Keep going until the story reaches its natural conclusion.

Free Association: Here, someone says a word - any word. Then go around from player to

player, saying the first word that comes to mind."Camping!", "Mosquitoes!", "Blood!",

"Guts!", "Brave!" Keep going until someone gets stuck trying to think of a word or

everybody breaks down laughing! Then start over with another word.

Follow the Leader: This is an entertaining game for younger children. Someone is designated

the leader and initiates a series of actions that everyone else has to follow - walking, jumping,

dancing, shaking arms and legs, crawling, clapping . . . The possibilities are endless! After a

while, someone else gets to be the leader.

Follow the SECRET Leader: In this classic campground game, one person is chosen to be the

Guesser and is sent away while the others select their Secret Leader. The Guesser is called

back, and everyone sits in a circle with the Guesser standing in the middle. The Secret Leader

initiates a series of motions that everyone else immediately follows. The Guesser studies

everyone in the circle and tries to determine who among all the winking, head-scratching,

finger-snapping, hair-tossing players is the Secret Leader. Players must be careful not to

make it obvious that they are watching the Secret Leader! Meanwhile, the Secret Leader must

continually initiate new actions. The Guesser gets three chances to pick out the Secret Leader.

Then a new Guesser is sent away and a new Secret Leader is chosen.

Anatomy: Everyone stands in a circle; one person is chosen as "It" and moves to the center of

the circle. "It" faces one of the players and points to, for example, her nose and says, "This is

my elbow." The player opposite her must immediately point to his elbow and say, "This is

my nose." If the player responds correctly, "It" turns to the next person in the circle and

repeats the game, pointing to a different part of her body. If a player gives an incorrect

answer, that person moves to the center and becomes the new "It."




Campfire Theater: Before your trip, pack a "mystery box" full of random objects - a single

high-heeled shoe, a ball of yarn, a wig, an old toothbrush, flashlight, a feather . . . The

weirder the assortment, the better! Divide into two groups. The first half goes first and has 15

minutes to come up with a skit, incorporating as many of the objects as they can into the plot.

The second group takes its turn, using different props from the box or using the same props in

different ways.

A Twist: The group watching the play gets to select the mystery objects for the group

performing the play!

Games by Moonlight: People can bring their favorite board games (like chess, ludo,

monopoly, keram etc) or card games, and play outside by flashlight or lantern. The old

standbys feel new under the stars.

Shadow Puppet Shows: This is a great game for a rainy evening. Transform everyday objects

into animated stories illuminated by flashlight on cabin or tent walls. People can be amazed

as a ho-hum ladle and washcloth transform into a fairy princess, and an innocent twig

becomes a menacing monster by flashlight! Or can use their own hands to make convincing

characters.

REFERENCE

Katalyst Bangladesh, “Small and Medium Enterprise in compliance with QMS – the sustainable and

flawless business execution”. Research paper, October 2005

Kabir F.O, Khan Labiba et.al, “WaterWorks Automated Car Wash and Detailing Services”. Business

Plan, December 2005

Sidfar et.al, “Bangladesh Safe Syringe”. Business Plan, December 2005

BIBLIOGRAPHY

http://www.indianadventureportal.com/camping-in-india/family-camping.html

http://acacamp.org/startacamp/

http://www.salarysource.com/description.cfm


http://www.salarysource.com/description.cfm

http://acacamp.org/startacamp/

http://www.indianadventureportal.com/camping-in-india/family-camping.html



http://www.infoplease.com/ipa/A0107317.html

http://www.discoverybangladesh.com/meetbangladesh/economy.html

http://en.wikipedia.org/wiki/Demographics_of_Bangladesh#Population

http://www.discoverybangladesh.com/meetbangladesh/statistic.html

http://devdata.worldbank.org/external/CPProfile.asp?PTYPE=CP&CCODE=BGD

http://hdr.undp.org/statistics/data/indicators.cfm?x=1&y=1&z=1

http://www.gocampingamerica.com


http://www.gocampingamerica.com/

http://hdr.undp.org/statistics/data/indicators.cfm?x=1&y=1&z=1

http://devdata.worldbank.org/external/CPProfile.asp?PTYPE=CP&CCODE=BGD

http://www.discoverybangladesh.com/meetbangladesh/statistic.html

http://en.wikipedia.org/wiki/Demographics_of_Bangladesh#Population

http://www.discoverybangladesh.com/meetbangladesh/economy.html

http://www.infoplease.com/ipa/A0107317.html

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