Assignment

On
Export oriented business plan
Course name: Global business and policy
Course Code: 310

Submitted To:

Tanvir Mohammad Hayder Arif

Associate Professor
Department of Finance
University of Chittagong
Submitted By:
BBA 6th Semester
Group Name: Macaw
Department of Finance
University of Chittagong
 GROUP: MACAW
GROUP MEMBERS NAME

SL NAME ID NO.
No.
01 Mamunur Rashid 13303023
02 Saddam Hossain 13303025
03 Mostafa Al Hossaini 13303032
04 Golam sarowar 13303059
05 MD. Parvez Alam 13303091
Executive summary
The global handicrafts market has been up surging, due to the increasing interest of people in art
and culture. A large number of micro and small enterprises have evolved in Bangladesh countries in
the past few years, where artisans from poor communities are involved in the creation of
handicrafts. Their artworks are also valued on humanitarian grounds.

Handicrafts refer to products made by hand, with the help of simple tools instead of machines.
Handicrafts are artistic representation of a particular culture or ethnic tradition. Handicraft products
include objects of utility and decoration.

Handicraft products are made up of several materials including sheet metal, wrought iron, natural
fiber, wood, river stone, beads, textiles, horn and bone, and ceramics. On the basis of type, the
global textile market can be classified into kitchenware, garden ware, toys, office ware, furniture
and furnishings, jewelry, bathroom accessories, and others.

Objective statement: The main objective of this business plan is to develop our rural economy by
creating employment opportunity for the rural unprivileged women through innovative handicraft
product.
Mission statement: our main mission is to boost up our export earnings through diversified
handicraft product and helps to achieve nearly $50 million within 2030.
Targeted export country: Germany, Italy, France, Canada.
Export nature: Through existing intermediary.
PESTEL Analysis:
1. political environment :consideration of political environment is important for any sort of
business. it is a really good news for us that from the last years we are enjoying stable
political environment which is really good for any small business and cottage industries. on
the other hand if we are looking our targeted countries like garmany france itally we will
find that these countrey also having good politicall environment.
2. economic environment: In our country we now experiencing a steady conomic growth
since last one decade on an average 6% growth. its actually act as a positive element and
reflection of good business environment which is really encourageable.the enonomic
situation of European country is also good which really act as a stimulus for increasing
our export growth.
3. Social environment: when are talking about society here few factor came together first
people those who are living in certain areas demand for certain goods, their attitude
regarding the product. If we are analyzing these factor in term s of our targeted countries
here we will find favorable business environment. Because of as an aristocratic society,
handmade product has a good appeal for this product. Here in our countries we have
sufficient no of expert women to produce these product.
 4. Technological environment: in recent years technological advancement is really noticeable.
Uses of technology is increasing day by day in business arena. We can increased our sales
through online shop and giving advertisement in various online media.

5. Legal environment: the product that we have chosen its totally environmental friendly as
well as sustainable. Here we dont have any policy which goes against the government
policy. The most important legal environment that we now having is gasp facilities from
European Union.

6. Environmental effect: the product is totally environmental fridly and dont have negative
bad effect on environment .

SWOT:

Strengths:
I. Large, diversified and potential market.
II. There is large product variety and range is available because of diversified culture.
III. It has strong, diversified and supportive retail infrastructure.
IV. Diversified product range that service different market.
V. Cheap labor rates that result to competitive price.
VI. Need low capital investment.
VII. There is flexible production flexibility.
VIII. Low barriers of new entry.

Weaknesses:
o Lack of infrastructure and communication facilities.
o Unawareness about international requirements and market.
o Lack of co-ordination between government bodies and private players.
o Inadequate information of new technology.
o Inadequate information of current market trends.
o Less interest of young people in craft industry.
o Lack of skilled labor.
o Still confined to rural areas and small cities and untapped market.
o Lack of promotion of products.
Opportunities:
o Rising demand for handicraft products in developed countries such as USA, Canada,
Britain, France, Germany, Italy etc.
o Developing fashion industry requires handicrafts products.
o Development of sectors like Retail, Real Estate that offers great requirements of handicrafts
products.
o Development of domestic and international tourism sector.
o E-Commerce and Internet are emerged as promissory distribution channels to market and
sell the craft products.
Threats:
o Competition in domestic market.
o Balance between high demand and supply.
o Quality products produced by competing countries like China, South Africa.
o Better Trade terms offered by competing countries.
o Increased and better technological support and R & D facility in competing countries.

Kew To success:
The demand for the Bangladeshi handicraft is increasing in the global market.
More creative people are coming to this profession and more exclusive and more creative
products are coming out.
Low production cost
Environment friendly
Competitive labor cost

Product Summary: We are introducing a new product in the handicraft industry named product of
Beads (Putir product). Since the demand for Bangladeshi handicraft product is increasing day by
day. We hope that it will be able to capture a good position in the global market especially in the
Europe. The products of beads are of different color, size and design. Most of its row material is
available in the country. The product of beads that we want to export are Hand Bags, Purse,
Showpiece, Tissue box cover, Flower vase of beads, Beads Doorbell, Body Turmaink ornaments. In
order to differentiate our product from the competitors, we have made it with unique design,
representation of our culture. We also put emphasize on the making these product. These are
mainly produced by rural women.
Pricing strategy: Pricing strategy is an essential component of marketing strategy. It is one of the
most mystery-laden variables encountered by marketing executives in decision making process
[Cateora & Hess, 1979]. Three important factors influence the strategy of export pricing--
demand, competition and costs.

Bangladesh handicraft exporters do not follow the systematic pricing strategies. Exporters attach
not much importance to this vital strategic area of marketing. Exporters compute the export price
on the basis of mark-up/cost-plus criteria depending on the demand of the product. Exporters may
follow the traffic bearing pricing strategy i.e. price will be determined on the criterion of charging
what the traffic/customers will bear.

Budget: Here we assume that the owner will be able to make 20% profit on their sells revenue.
Since this business does not need more fixed expenses so that we budget only 1.5 lacks for fixed
expense and our budget more for working capital about 3 lacks.

Export Procedure: We are going to start a contract with the Bangla craft to export our product
and we also use their website.

Procedure for getting export certificate

REQUIRED SUPPORTING DOCUMENTS:

1. Attested photocopy of valid Trade License

2. Attested photocopy of membership certificate from local Chamber of Commerce
and Industry or relevant Trade Association
3. Original copy of Treasury Chalan
4. If a partnership business: Partnership Deed (certified attested copy)
5. If a limited company: (certified attested copies)
6. Certificate of Incorporation

Articles of Association
Memorandum of Association

(To facilitate verification of the submitted documents, applicants are requested to submit
the original documents as well. The original copies of the documents will be returned at the
completion of the process).

PROCESS STEPS:

Step 1: Collect ERC form from office of Controller Import and Export.
Step 2: Deposit schedule fees at Bangladesh Bank or designated branches of Sonali Bank.
Fees should be deposits under the head number: 1 1731 0001 1801

(Sonali bank branches should be used only where Bangladesh Bank is not available).
Collect and complete 3 copies of Chalan Form and pay the scheduled fee.

Category of Certificate Initial Registration Fee Renewal fee

Export Registration Certificate 7000 5000

Step 3: Submit application form with recovery supporting documents

Attested a recent passport size photo of applicant

Make copies of complete application package for self
Submit application at the receipt room 3rd floor of CI&E by 4 p.m.

Collect application registration number.

Procedure for getting TIN certificate

For getting Tax Payers Identification Number (TIN) require to submit following
documents:

1. Photocopy of Trade License

2. Personal Details (If Person)
3. Copy of Memorandum and Articles of Association (If Company)
4. Bank Solvency Certificate (If Company or Proprietorship)
5. Three copy of photograph of Owner (If Proprietorship)
6. Three copy of photograph of Managing Director (If Company)
7. Three copy of photograph (If Person)
8. National ID/ Passport copy of Entrepreneur

Appendix:

Website: Since we just start the business and we are exporting our product through
existing export line of handicraft via Banglacraft. We are also using their website.
Email correspondence: We sent email to the following buyer of Germany. They are
very much interested about our product, design and color. They can contact us via
Banglacraft.

Kera-collection@gmx.de

accounts@kera-collection.de

s.bouzidi@kera-collection.de