Project 0n Swot' and Industrial Analysis of Cng Station

StrategicStrategicManagementManagement

Submitted to:Submitted to: Sir Lal HameedSir Lal Hameed

Submitted by:Submitted by:

SHAHZEB MAHMOOD SHAHZEB MAHMOOD 81328132

In MBA 4In MBA 4Project on:Project on:

SWOT analysis and Industrial Analysis of SWOT analysis and Industrial Analysis of

ANSI Institute of Management SciencesANSI Institute of Management Sciences

All the praise is for Allah, the most merciful and beneficent, who blessed me with the knowledge, gave me the courage and allowed me to accomplish this task. I am especially indebted to my teacher Mr. Lal Hameed sir for instilling in me enough knowledge to be able to carry myself efficiently during my project.

Secondly, I am bound to thank the Manager of PAK CNG Nowshehra Road Mardan, for his inspiring guidance, remarkable suggestions, constant encouragement, keen interest, constructive criticism and friendly discussion helped me to learn and enabled me to complete this report efficiently.

Acknowledgement

Introductory Page

Name of the Business: Pak CNG Station.Location: Nowshehra Road Mardan. It will be located near Mardan Railway Station.Nature of Business: Private Limited.Products: CNG, CNG kits and cylinders.Size of Business: Medium EnterpriseNumber of Employees: 5 to 10

Statement of Needed Finance:Projected Cost

Introduction:

Compressed natural gas (CNG) is a fossil fuel substitute for gasoline (petrol), diesel, or propane/LPG. Although its combustion does produce greenhouse gases, it is a more environmentally clean alternative to those fuels, and it is much safer than other fuels in the event of a spill (natural gas is lighter than air, and disperses quickly when released). CNG may also be mixed with biogas, produced from landfills or wastewater, which doesn't increase the concentration of carbon in the atmosphere.

Executive Summary:

This report is all about the Business Plan of a CNG Station in Mardan.

Industry Analysis:

At the beginning it is illustrated the industrial analysis in which it is explained the current industry situation of CNG. In the industrial analysis the future outlook & prospectivetrends of the particular sector is analyzed by keeping in mind & analyzing thecompetitors in the CNG industry in order to check the strategies used by them & then touse the mix of strategies by applying the innovative ideas in our venture. After that thestrategy for marketing is build by using different segmentation report For efficient & better utilization of available resources industry & market forecast has been done in order to analyze the true market demand for CNG.

Description of Business:

This head of the Plan covers the introduction stage of the business by defining the natureof the business i.e.

· Products.· Services.· Size of Business.· Office, Equipment & Personnel.· Background of the Enterprise.

Production Plan:

This head covers the following aspects of the Business Plan.· Manufacturing Process Identification.· Operations Performing.· Physical Plans.· Names of the Supplies.

Operational Plan:

It covers the aspects like how we will operate our products or services for the target customers. It covers the following heads of information:

· Venture’s Operations e.g. Head Office, regional plants etc.· Flow of orders of goods & services by the customers.· How the technology Utilization is to be carried forward.

Organizational Plan:

The organizational plan covers the following heads of discussions:· Form of ownership. (Sole Proprietorship, Partnership,

Company)

· Nature of Business. (Public Limited or Private Limited)· Identification of Ownership & principal shareholders.· Authorities & responsibilities of the employees.· Job descriptions & Job specifications.· Organizational Hierarchy.· Mission & Vision.

Marketing Plan:

It is a very essential element of the business plan which describes the market conditions& strategies related to the functions that how the product or service will be distributed,Priced & promoted. The heads under the marketing plan are:

Conducting the marketing research. Defining the mission & vision of the organization. Situation Analysis:

· Environmental Analysis.· Pest Analysis.· Venture Background. (SWOT Analysis)· Competitive Analysis. (Porters Five Forces Model)

Marketing Objectives & Goals. Marketing Strategies & Action Plans:

· STP (Segmentation, Target marketing & positioning)· Marketing Mix.

Marketing Budget Decisions. Controlling the marketing plan functions.

Financial Plan:

Financial Plan is the most important part of the Business Plan as it actually describesResources composition of the business. It includes:

· Sources of finance.· Performa of Income Statement.· Performa of Balance Sheet.· Application of Funds.· Break Even Analysis.· Ratios Analysis.

Industrial Analysis:

Introduction:

Natural Gas is one of the most valuable natural resources abundantly available in ourCountry. The people of Pakistan have been using the petroleum products as a fuel in theirAutomobiles, thus spending a huge amount of foreign exchange on import of petroleumproducts. Moreover, the Government of Pakistan has taken certain concrete steps in orderto promote the use of natural gas as a fuel substitute in the automobiles. Due to the effortsmade by the Government and comparatively low prices of gas, more than 600,000*

vehicles have already been converted to operate on Compressed Natural Gas (CNG)fueling system all over Pakistan.

Due to high cost of petroleum products, lots of vehicles are switching over to CNG. Atpresent, there are more than 25000 CNG stations operating in the Country and this number is insufficient to meet the rising demand of CNG in the coming years. The total project cost for setting up the CNG filling stations has been estimated at Rs.31.13 million. It includes land, building, CNG equipment and machinery, spares, along with thepreliminary expenses and working capital.

Compressed Natural Gas (CNG) is produced when the natural gas is compressed intocylinders to be used as a fuel in the automobiles. The compressed natural gas has been used as an automobile fuel since 1940, and over the years, the technology has been modified and refined. In the recent years, the usage of CNG as an automobile fuel has significantly increased because of its low cost and environment friendly nature.

CNG Policy:

The Government of Pakistan has offered number of incentives for encouraging the use ofCNG in the country. Some of these are summarized below:

Strong Government commitment to promote usage of CNG. Liberal policy of providing license for CNG retailing. Deregulated market price of CNG (for the consumers). Priority of providing natural gas connection to CNG stations. Exemption of import duty and sales tax on import of

machinery and equipment, CNG kits and cylinders.

SWOT Analysis:

STRENGTHS:

Location of the project will play a pivotal role in the successful running of the CNG station. The daily turnover of the cars largely depends on this important factor.

Selection of proper equipment is another key for carrying out the successful operations of the proposed project. As we are importing equipment mostly from abroad hence it will surely affect our performance positively.

WEAKNESSES:

Lack of expertise might be our weak point. We are going to start a venture when there is prevailing a general shortfall of gas

supply in the country. We have currently no skilled workers for this venture that might be a challenge

for us.

OPPORTUNITIES:

The proposed project would have a number of competitive advantages:

The project will provide cheaper fuel to its customers compared to the petroleum products which are already on the higher side.

Government has exempted the imposition of sales tax and custom duties on the import of CNG kits and CNG plant and equipment,

HDIP, a non-profitable organization working under the umbrella of Ministry of Petroleum and Natural Resources, provides consultancy services to the interested parties for setting up the CNG filling stations.

THREATS:

The proposed project will be facing the following threat:

Market saturation over a longer period of time due to a large number of entrants. Threat of increase in the prices of the natural gas by the government.