GLOBAL INTERNATIONAL BUSINESS

How to start
2019
business in
JAPAN
Academic s

Report

Report By:
 M. Yasham Shaikh (13220)
 M. Bilal (13316)
 M. Aaqib (13326)

1
 GLOBAL INTERNATIONAL BUSINESS

ACKNOWLEDGEMENT

Our first and foremost humble gratitude to “Allah” the Almighty for giving us the
valor
to remain dedicated to make this Business Plan.

We would like to thank Sir MUHAMMAD SHAREEF for his direction.

Assistance, guidance, recommendations and suggestions. Her words of wisdom
will ever be remembered. HE has offered us a valuable support and encouragement
for preparing the Business Plan on “Essence (salon)”

Lastly, we would like to thank our classmates for their support and suggestions
during the research and preparation of this plan.

EXECUTIVE SUMMARY
Essence is a salon with unique idea which will provide its customers a unique
variety of service with natural products made up of fruits and vegetables. Essence
is located at Khayaban-e-Tauheed targeting high class people. Essence has set up
to best carter its customer needs and has potential to satisfy its customers by
providing different variety of fruit and vegetable facials, counseling by a
nutritionist to guide to maintain healthy and beautiful life style, providing all
beauty services with natural extracts of fruits and vegetable, consultancy with our
dermatologist and free skin tester for customers.
Essence is a partnership business comprising 3 partners; M. Aaqib, M. Bilal, M.
Yasham Shaikh. Essence competitive edge is its uniqueness, variety, superior
quality, healthy and hygienic products and its customer centered services. We will
also be opening our branches in near future. Essence has a great potential to grow.

2
 GLOBAL INTERNATIONAL BUSINESS

INTRODUCTION TO THE BUSINESS

VISION:

We seek to provide high quality service, maximizing customer satisfaction by providing

unique variety of naturally made fruit and vegetable products and promoting a beautiful
lifestyle.

MISSION STATEMENT:

Essence is committed to exceptional customer service. Our team is professional, talented

and continuously educated. We provide a high-quality, comfortable and natural saloon
experience. We offer services using the finest and purest natural extracts that will beautify
and balance both the body and mind without harming the environment.

CORE VALUES:

1. To have no compromise on quality.

 In quality of our service

 In providing our customers beautiful life style

2. To place customers on top most priority.

 To build strong relationship

 To take care of our regular customers
 To value the opinions and suggestions of our customers

3. Practice teamwork.

 We  have clear goals with relevant skills according to the context of goals
 We believe in mutual trust among our team members and have an honest and
collaborative culture

4. To provide customer satisfaction.

5. To promote healthy lifestyle.

3
 GLOBAL INTERNATIONAL BUSINESS

 By providing guidance from nutritionist that can help our customers in

following .balanced diet.

6. Provide variety and beautiful, healthy lifestyle.

 In treatment
 In facility of dermatologist
 Skin tester
 Packages for different occasions

7. Ethical in dealing with suppliers, employees and customers.

 Supplier
 Employees
 Customer

DESCRIPTION OF VENTURE
NAME: Essence
Essence means intrinsic nature or indispensable quality of something, which we aim to deliver in
its purest form to our valued customers.

ADDRESS:
26th commercial street, phase 6, Khayaban-e-Tauheed, Defense

TIMINGS:
Sunday-Monday :   10:00 am to 08:00 pm
FRIDAY- Saturday:  10:00 am to 10:00 pm

NATURE OF BUSINESS

Nature of business is private company

4
 GLOBAL INTERNATIONAL BUSINESS

Tagline:

Beauty, bliss, beyond . . . . . . . . . . . . . . . . . . Naturally.

TRADEMARK AND ITS PROTECTION:

Essence has obtained designed patent and trademark for its logo from Intellectual Property
organization of Pakistan with the help of Advocate.
The steps followed for registration of service mark includes:

 Search before filing of application.

 Filing of application.

 Preliminary examination.

 Final order for Publication.

 Printing in trademark journal.

 Issuance of Registration Certificate.

5
 GLOBAL INTERNATIONAL BUSINESS

THE CHALLENGE

BUSINESS DESCRIPTION:

Essence has been established by a young dynamic group of entrepreneurs, with an aim to
provide a wholesome grooming to women of all age groups, by means of the purest form of
natural extracts of fruit and vegetables.
Essence provides a dynamic and innovative form of grooming services, in a diverse manner. It
does so, by offering services in dermatologist, nutritional areas. The uniqueness which sets
Essence apart from other salons is that their entire operations of services are based upon the
natural extracts. In the dermatology department, it provides make-up services by using creams
comprised of fruit and vegetable extracts, which are backed by a board of expert groups in the
area.
Essence believes in the provision of a balanced mix of both body and mind, so to provide best
possible service to our customers. We also have a nutritional guide department, which provides
services to those of our customers who have problems of dietary disorders and also for weight-
watchers. It provides a comprehensive diet plan based upon fruits and vegetables, with a view for
our customers to remain healthy in body vis-à-vis appearance. An instance of this can be
provided of our customers for bridal services. We provide a complete bridal package to the
would-be bride, which includes services from make-up to nutritional guide, as many a time in the
stress of the matter, the potential bride neglects her diet. Therefore, we provide a complete diet
plan, for her to remain fit and healthy, which culminates into our final day of providing her the
make-up, thereby making her look and “feel” beautiful. The nutritional guide department is
operated by our able and efficient nutritionist experts.
The target of Essence is the High Income group, to which customer focused services can be
offered.

STATEMENT OF FINANCE NEEDED:

Our total budget is PRs 80, 00,000 which is estimated after considering expenses for 6 months.

Debt/equity ratio is:

Equity=70%
Debt=30 %

6
 GLOBAL INTERNATIONAL BUSINESS

10% annual interest on debt

PRs 10, 00,000/= is borrowed by Habib Bank Ltd. and remaining PRs 12, 00,000 is borrowed
from Faisal Bank Ltd.

Estimated profit for year 2020 is Rs, 7.3 lacs.

SITUATION ANALYSIS

COMPANY ANALYSIS
The beauty industry has been expanding and growing for all of the recorded history. This
sector continues to expand globally, with some projections claiming 8.5% growth by 2021.
The beauty industry provides us with choices galore to keep us looking younger and healthier.

  The beauty industry today offers far more than cosmetics and skin care products, though
they are a significant portion of the sector. A wide range of services and products are available to
help us put our best face forward. It also encompasses hair styling and hair removal, variety of
facial treatments, massage parlors, skin treatments, perfumes and more. Moreover this
continuing growth and evolution offers a diverse menu of opportunity and great potential for the
success of our business.

GOALS AND OBJECTIVES

1. To provide exclusive health and beauty services in a relaxed, clean and modern setting.

2. We believe in using and recommending only those products that care about our
environment and our clients' wellbeing.

3. To help our customers to unite internal and external beauty, achieve harmony and to
restore it by the means of our advice and treatments.

4. Our services are designed to renew your spirit and refresh your senses.

7
 GLOBAL INTERNATIONAL BUSINESS

5. Our goal is to tailor the client’s services to their individual needs and help clients have a
great outcome with any of their beauty concerns.

6. The aim for each staff member is to be motivated to develop professionally, so they are
able to succeed in reaching their own goals as well as the salons goals.

7. To build the relationship based on trust with our customers and suppliers.

8. To act as a barrier to entry for competitors by establishing high and unbeatable quality,
variability, service and customer satisfaction standards.

CUSTOMER ANALYSIS
Write now we have 280 customers. We will be targeting upper middle class and upper middle
class customers. We will be giving best values to our customer providing best service and
product to our customer. Our particular base product is fruit massage which is unique and best
product.

COMPETITOR ANALYSIS
MARKET POSTION:
Our strategy for positioning is differentiation focus strategy. We achieve this by promoting the
brand name we suggested which “essence” with other differentiated values is & make
prestigious value in customer’s mind. In order to promote the brand name we suggest following
strategies.

 Distribute leaflets to club ladies giving free suggestions of their skin and health
problem.

 Distribute leaflets to universities and college to make students aware about special
packages and beauty products specialty.

 Maintain good relationship with every customer & give our best services.

 Give contribution to dress models for paper covers & magazines

8
 GLOBAL INTERNATIONAL BUSINESS

 Put advertisements by promoting brand name with their valuable services.

 Participate wedding & beauty cultural exhibitions & competitions.

COLLABORATORS
Collaborators are useful for businesses as they allow for an increase in the creation of ideas, as

well as an increase in the likelihood of gaining more business opportunities. We four business

partner have share our liability and assets, allowing for new source of capita.

FORMS OF OWNERSHIP

There are many kinds of forms of ownership but our saloon “Essence “is a private ownership.
Essence has 3 partners who will contribute their work equally and efficiently for the betterment
of the business.

BUSINESS ENVIRONMENT
To fully understand the business climate and environment, many factors that can affect the
business must be researched and understood.

POLITICAL
Our saloon is totally depending on fresh fruits and vegetables so if there are any fluctuation in
the prices of this raw material due to any political instability or if the import prices go astray, this
can affect our business drastically.

ECONOMIC ENVIROMENT
Exchange rate and inflation rate will heavily effect on our prices because we import many
commodity from other country so it will effect badly if inflation goes higher because it will
affect our commodity prices directly, so if the prices go higher so we have to increase are rates.

SOCIAL AND CULTURAL ENVIROMENT

9
 GLOBAL INTERNATIONAL BUSINESS

Nowadays trend have been changed people is indulging themselves in looking good and taking
care of them .almost 80 % women of the world wants to look good . now days good skin and
good appearance is symbol of high standard in society .not only women is taking care of their
skin men is also taking huge part in it.

TECHNOLIGICAL ENVIROMENT
technology helps improve on old routines and suggest new methods for being cost efficient. To
stay competitive and gain an advantage over competitors, businesses must sufficiently
understand technological advances.we our using new technologies for our customer to give them
best services.

SWOT analysis is a structure planning method used to evaluate Strengths, weaknesses,

OpportunitiesandThreatsinvolved in a project or a business venture involving all internal
and external factors. SWOT analysis may be used in any decision-making situation when
a desired end-state (objective) has been defined by maximizing the potentials of strengths
and opportunities & minimizing the impact of weaknesses and threats to accomplish its
objective.

STRENGHTS
The strength of our essence saloon for achieving our goals and objectives are as follows:

 Innovative idea

There is no other saloon in the city who is offering such copious amount beauty products
and treatments with fruits and vegetables; therefore our idea is unique and innovative.
This factor is going to help us in attracting more customers and capturing large market
size.

10
 GLOBAL INTERNATIONAL BUSINESS

 Healthy and hygienic

Customer's health and hygiene is considered on priority in products and services of our
saloon. We promote healthy and hygienic lifestyle of our customers.

 Quality

Our core objectives are delivering superior quality products and services. Each product
available and material used in our saloon is being quality checked. Our quality control
manager is responsible for monitoring the quality of our products and services.

 Location

Our outlet is located at 26th commercial street, Khayaban-e-Tauheed, to serve the elite
class to capture great market share. It is conveniently reachable and searchable for the
customers.

 Variety

Essence offers fruits and vegetables made products and beauty services under one roof
including superior quality body massages, facials, relaxing baths, face masks, creams,
scrubs, perfumes and affordable and convenient packages on various occasions as
marriage ceremonies, Eid, Christmas and etc.

 Free delivery offers

Essence saloon is offering free delivery of our products and services to our routine
customers and valuable members especially to those who are Defense and Clifton
residents. This factor of convenience can play a vital role in the success of our salon.

 Imported fruits & vegetables

Some essentially needed fruits and vegetables (i.e. kiwi, Swiss card, artichoke, kale,
broccoli, Clementine, raspberries and etc.) are imported from different Asian and
European countries to meet the demand of customers and for the production of various
beauty products.

11
 GLOBAL INTERNATIONAL BUSINESS

 Experts Availability

Essence has hired various dermatologists and nutritionists who are experts in their
respective fields such as Dr. Ayesha Abbas (nutritionist) and Dr. Khurrum Mushir
(dermatologist). Our valuable members can consult them during our working hours and
can get entertain by their expert opinions and suggestions.

 Free tester

We have placed free hair and skin testers in our saloon. Our members and customers can
get their skin and hair quality checked for free and then can consult our experts for
further treatments.

WEAKNESSES
The weaknesses of our business that create obstacles in getting profit are as follows:

 Storage of Fruits and Vegetables

The life of fruits and vegetables is short, after sometimes the freshness of fruits and
vegetables is lost therefore raw fruits and vegetables as well as fruits and vegetables
masks etc. cannot be kept for long time.

 Limited Capital

Essence Saloon is started with limited capital which is an obstacle in expansion of our
management structure and production capacity.

 Limited Personnel

Essence Saloon consists of 5 partners and 10 employees for managing of the whole
business. The limited personnel size is a hurdle in conducting smooth business.

OPPORTUNITIES
The following are the external environmental factors that help Essence Saloon in achieving
desired objectives:

12
 GLOBAL INTERNATIONAL BUSINESS

 Health Consciousness of People

People are getting more health conscious nowadays and try to go for products and
services which are developed on the idea of producing more hygienic goods, they don't
even care for price when it comes to their health but anyhow they are not compromising
on quality.

 Beauty Consciousness of people

Creating glamour is a skill—appreciating and cultivating true beauty is a practice one can
mindfully choose each day." This is what in which Essence believes. Nowadays people
are more concern to their grooming and beauty. This fact of this Y-generation is the
biggest opportunity for us to go ahead with this idea and introducing more innovation in
the way.

 No Direct Competitors

There is no direct competitor of Essence Saloon that is offering the same range of
products and services totally based on fruits and vegetables. Our saloon is a unique of all
and is able to capture large market share and customer's value due to its innovative
strategy.

 Enormous Suppliers

There are many local suppliers available for fruits, vegetables, herbs and shrubs. Not
even this we have many importers and exporters which enable us to buy raw material at a
very fair cost.

 Universities, Offices & Residences Nearby

Our location creates the biggest opportunity of business establishment for us as there are
many universities, offices and residences nearby therefore it there are chances for more
customers stepping into our saloon.

13
 GLOBAL INTERNATIONAL BUSINESS

THREATS
Following are some external threats for our saloon:

 Entry of Competitor

There are no direct competitors of Essence Saloon but many indirect competitors are
present in the market and there are also many chances of entry of new competitors who
can be direct. If someone copies our idea and come up with low prices can make our
position weak in the market.

 Fluctuation in Fruits & Vegetables Prices

Our saloon is totally depending on fresh fruits and vegetables so if there are any
fluctuation in the prices of this raw material due to any political instability or if the
import prices go astray, this can affect our business drastically.

 Availability of Cheaper Alternatives

There are many local salons working in our area which are cheaper than our saloon, so
people might switch to that available cheaper salon and this factor can act as a major
threat to our saloon.

RIVALRY AMOUNG COMPETITORS

 There is low degree of rivalry because there is no such saloon which is dealing only with
fruits and vegetables treatment.
 As there is no such unique combinations of quality present anywhere in the city so
customers have very less choices remaining.
 Few of our indirect competitors are dealing on low prices

14
 GLOBAL INTERNATIONAL BUSINESS

THREATS OF SUBSTITUTE PRODUCTS

 The threat of substitute product is very high.

 Substitute products are present at very places and prices.
 The following substitutes are available to consumers
- Homemade remedies of beauty enhancement
- Low cost creams available in market
- Low cost oils and perfumes available in market
- Diets plans online
- Low cost packages available in other saloons
- Other experts available in market

THREATS OF NEW ENTRANTS

 The business idea is really but still it is very easy to copy because the resources needed to
open and execute this kind of idea are available but it requires a huge amount of capital
for importing fruits and vegetables, providing customer centered services and
maintaining the superior quality standards, therefore the threats of new entrants are low.
Machinery that we are using in our saloon is purchased from renowned dealers and is
quite expensive to be purchased by anyone so every rival or new entrant can't afford all
these techniques.

BARGAINING POWER OF SUPPLIERS

 The suppliers have very low bargaining power.

 There are many suppliers that provide fruits, vegetables, herbs and other ingredients used
in the production of masks, creams, perfumes, scrubs and etc and there are many physical
as well as virtual suppliers available for import of fruits so that we have a great many
options for suppliers.
 The cost of changing supplier is relatively low.

15
 GLOBAL INTERNATIONAL BUSINESS

EXISTING COMPETITORS

DIRECT COMPETITORS

Direct competitors are those which offer same products and services with similar features and
deals and target to same target market as your business do. Customers often compare prices and
deals from these competitors.

There are no direct competitors of Essence Saloon as there is no saloon dealing with fruits and
vegetables products in Karachi with such a huge variety and range of products and services.

INDIRECT COMPETITORS

In direct competitors offer the similar products and services only in small number of areas, but
their target market may be anyhow clashes with your target market. Indirect competitors of
Essence Saloon are:

 Rain Tree Spa

 Oxygen Spa
 Alle'nora
 Sabs
 Nabila's
 Diplex

 Mona J Salon

Product differentiation
Use high quality, chemical free & natural products and cosmetics makeover, facials & other
treatments.

100% natural fruits, vegetables and herbs products we provide and used.

Introduce new packages for bridles as well as other customers to make their services exactly
match with customer wants

E.g.:- Have a previous discussion with customers & provide what they want as much as they can

16
 GLOBAL INTERNATIONAL BUSINESS

Always adopt new technologies to give better service & improve consumer satisfaction.

Introduce discount cards for regular customers.

Awareness of latest trends in beauty cultural fields & include those to make their service more
attractive

Introduce new packages with attractive prices for special segments such as university and college
students

Recruit competence employees & give enough training in beauty cultural area to provide high
quality service.

Follow new trends in bridal dressing & always try to match their services with customer needs.

Service differentiation
Get feedbacks from customers about the service.

Give free offers for customers

E.g.:- Give free cleanup for one facial

Go customers place to provide services such as bridal dressing. Because it’s inconvenience for
customers to come to the salon for dressing.

Quick and provide unique and best service.

SELECTED MARKETING STRATEGY

PRICE:
Our price is higher as compare to others beauty salon and products.

PRICING STRATEGY:
By looking at our offerings with respect to quality, benefits, products, services uniqueness,
varieties and higher customer satisfaction, we are using the Price Skimming strategy.

Prices range of saloon products:

1. Facials of natural ingredients of fruits and vegetables include

 Herbal facial PRs1800/=

17
 GLOBAL INTERNATIONAL BUSINESS

 Acne facial PRs 2500/=

 Anti-aging facial PRs 3000/=

 Whitening facial PRS 2800/=

 Fruit-veg facial PRS 2500/=

 Tomato facial PRs 1900/=

2. Manicure and pedicure include

 Lavender manicure and pedicure PRs 800/=

 French manicure and pedicure PRs 1000/=

 Herbal manicure and pedicure PRS 1200/=

 Vegetable oil manicure and pedicure PRs 1300/=

 Olive oil manicure and pedicure PRs 1400/=

3. Body massages include

 Stone massage therapy PRs 4000/=

 Vegetable oil massage PRs 3900/=

 Thai massage therapy PRs 3500/=

 Honey and butter massage therapy PRs 3800/=

 Different herbals oil massage therapy PRs 3600/=

4. Waxing include

 Full body waxing

 Herbal wax PRs 5000/=

 Hot wax PRs 4000/=

 Lavender wax PRs 4500/=

 Frui-vege wax PRs 6000/=

 Ubtan-honey wax PRs 500/=

18
 GLOBAL INTERNATIONAL BUSINESS

 Full arm waxing

 Herbal wax PRs 500/=

 Hot wax PRs 400/=

 Lavender wax PRs 460/=

 Frui-vege wax PRs 700/=

 Ubtan-honey wax PRs 600/=

 Half arm waxing

 Herbal wax PRs 250/=

 Hot wax PRs 200/=

 Lavender wax PRs 230/=

 Frui-vege wax PRs 350/=

 Ubtan-honey wax PRs 300/=

5. Relaxing bath include

 Mud bath PRs 6500/=

 Chocolate bath PRs 7000/=

 Herbal and green vegetable bath PRs 7500/=

 Rose milk bath PRs 6000/=

 Fullers earth bath PRs 5000/=

 Sauna bath PRs 300/=

6. Hair treatments include

 Herbal oils treatment PRs 2200/=

 Protein treatment PRs 2800/=

 Frui-vege treatment PRs 3200/=

 Color treatment PRs 3400/=

 Vegetable oil treatment PRs 3800/=

19
 GLOBAL INTERNATIONAL BUSINESS

 Green vegetables treatment PRs 4000/=

7. Face masks include

 Alovera mask PRs 1000/=

 Papaya mask PRs 1200/=

 Ubtan mask PRs 1100/=

 Oatmeal –honey mask PRs 1300/=

 Goat milk mask PRs 1100/=

 Tomato mask PRs 1300/=

 Yogurt mask PRs 1000/=

 Cucumber mask PRs 1100/=

 Fenugreeks mask PRs 1200/=

 Carrot mask PRs 1200/=

We also provide and sell 100% natural beauty products which include

8. Variety of creams

 Papaya cream PRs 1000/=

 Saffron cream PRs 1200/=

 Tomato cream PRs 1300/=

 Honey-almond cream PRs 1400/=

 Garlic cream PRs 1100/=

 Alovera cream PRs 1100/=

 Cucumber cream PRs 1300/=

9. Treatment from creams

 For acne and pimples PRs 4000/=

 For anti-aging PRs 5000/=

 For fairness PRs 3500/=

20
 GLOBAL INTERNATIONAL BUSINESS

 For dark spots PRs 3800/=

 For glowing skin PRs 3000/=

 For freckles PRs 3200/=

 For dark circles under eye PRs 2600/=

 For hand and foot PRs 3000/=

10. scrubs

 Papaya scrub PRs 2400/=

 Olive scrub PRs 2800/=

 Ubtan scrub PRs 2600/=

 Fenugreek scrub PRs 2900/=

 Orange scrub PRs 2500/=

 Alovera scrub PRs 2000/=

 Lemon grass scrub PRs 2300/=

 Vegetable oil scrub PRs 2400/=

 Carrot scrub PRs 2300/=

11. Perfumes

 Fruity fragrance PRs 1200/=

 Sandal fragrance PRs 1000/=

 Rose fragrance PRs 1100/=

 Lavender fragrance PRs 1100/=

12. We also providing you a fresh 100% natural fruit and vegetables juices for beauty
treatment

 Carrot and beetroot juice PRs 300/=

 Tomato juice PRs 400/=

21
 GLOBAL INTERNATIONAL BUSINESS

 Orange and grapefruit juice PRs 350/=

 Spinach juice PRs 300/=

 Mint juice PRs 270/=

 Strawberry juice PRs 420/=

 Pumpkin juice PRs 400/=

 Papaya juice PRs 230/=

 Lemon juice PRs 260/=

Product strategy
A good product makes its marketing by itself because it gives benefits to the customer. We
differentiate our product with design, features, packaging, services, warranties, return and so on.
Design: we design our products special and very unique .chemical free. Natural ingredients are
used

Packaging: attractive and tight packing.

Services: best of us services are provided

Place strategy
Our salon is located in defense which is populated area

Car parking facility is also available

Distribution channel: Essence will follow the Direct Distribution Channel where we
have the direct contact with the customer.

PROMOTION STRATEGY
Public relation:
Build a good relationship with customer.

Always have a friendly chat with customers before provide the service.

Develop own web site for essence. We display following things in web site;

22
 GLOBAL INTERNATIONAL BUSINESS

Available packages in salon & prices.

Available services in salon & prices.

Special offers of salon.

Essence team makes setup at:

In Ebco at forum:

Provide free suggestions for their problem. Give them small presentation of essence.

Provide leaflets also.

At expo centre:

Give complete information about essence products and services.

At universities and colleges of girls specially:

Give free samples, distribute leaflets also and small presentation about essence

Advertisements:
We give advertisement in magazines: like home express n she etc…

23
 GLOBAL INTERNATIONAL BUSINESS

Ads at face book:

YouTube ads:

Banners:
We will introduce essence by placing banners in main places like: hyper star, Clifton, D.H.A,
Forum

24
 GLOBAL INTERNATIONAL BUSINESS

SHORT AND LONG TERM PROJECTION

ADVERTISEMENT EXPENSE
MODE OF
ADVERTISEMENT & COSTS
PUBLICITY

TEASRES 30,000

BANNERS 60,000

LEAFFLETS 22,000

MAGAZINE & 80,000

NEWSPAPER ADS

MALL ACTIVITES 48,000

25
 GLOBAL INTERNATIONAL BUSINESS

CONCLUSION
Essence has set up to best carter its customer needs and has potential to satisfy its
customers by providing different variety of fruit and vegetable facials, counseling
by a nutritionist to guide to maintain healthy and beautiful life style, providing all
beauty services with natural extracts of fruits and vegetable, consultancy with our
dermatologist and free skin tester for customers.Essence is a partnership business
comprising 3 partners. Essence competitive edge is its uniqueness, variety, superior
quality, healthy and hygienic products and its customer centered services. We will
also be opening our branches in near future. Essence has a great potential to grow.

APPENDIX
 CUSTOMER PROFILE: behavioral (benefit) social class,
Psychographic(beauty conscious people)
 GENDER: only females
 CONSUMER BUYING HABITS: who prefer natural extracted products,
beauty conscious people
 COMPETITORS: no direct competitor & indirect competitor (Sab’s,
Allenora)
 MARKETING MIX: product, place, price, promotion
 DISTRIBUTION CHANNEL: direct
 SEGMENTATION: psychographic, geographic, behavioral, social class
 TARGETING: Niche/focus
 POSITIONING: benefit positioning
 VALUE PROPOSITION: more for more

RATIO ANALYSIS
LIQUIDITY RATIOS

26
 GLOBAL INTERNATIONAL BUSINESS

1. Current Ratio

=current assets / current liabilities

= 4,100,200/ 762,000

= 5: 1

2. Quick Ratio

=quick assets/ current liabilities

= 2,000,200 / 762,000

= 3:1

PROFITABILITY RATIOS
1. Return On Assets

=net income/ total assets

=738,000/ 9,500,000

= 7.76%

1. Debt To Equity Ratio

= net income/ shareholder equity

= 738,000/5,600,000

= 13 %

2. DEBT TO EQUITY RATIO

27
 GLOBAL INTERNATIONAL BUSINESS

= TOTAL DEBTS / TOTAL EQUITY

= 2,400,000/ 5,600,000

=3:

BUSINESS VISA PROCESS FOR JAPAN

COD DESCRIPTION OF DOCUMENTS TO BE PROVIDED FROM
NAME
E PAKISTAN
Paste one photograph on application, with light background preferably white,
P-01 Photo
front face and bare head, without any retouch or graphic affects
P-02 Passport Original valid passport (expired passports too, if any)
P-03 CNIC Original identity card with photocopy
Original letter signed by all partners of the firm (as annex 03) proprietors are
P-04 Partner’s Letter
exempt
Original recommendation letter issued by the concerned chamber of
P-05 Chamber’s Letter commerce along with all membership certificates since the company was
established
P-06 Bank Docs Attested bank statement for the last 6 months with bank manager’s letter
Original Family Registration Certificate issued by NADRA.
Form B with English translation duly attested by the Ministry Of Foreign
Affairs of Pakistan for Children under the age of 18.
P-07 Family Registration
It must prove applicant’s relationship with the sponsor in Japan.
If the sponsor is not a relative, then the applicant should submit only his/her
personal Family Registration Certificate.
Occupational Original and authentic evidence of your present occupation issued by the
P-08
Evidence applicant’s organization/institution/department
All Sectors confirmed both sides airline booking for the trip to Japan issued
P-09 Airline Booking
by travel agent, (please do not buy ticket.)
Official No Objection/ Ex-Pakistan leave certificate from concerned
P-10 N.O.C
authorities in case of Govt. official/officer
Evidence of the applicant’s company’s latest and direct import/export with
P-11 Business Done sponsor company in Japan, like original bills of lading/airway bills, bills of
entries/exports, Payments receipts/T.T order receipts etc.
P-12 Schedule Schedule of your visit to Japan

What's required to register a corporation (business) in Japan

1. Register your office address

28
 GLOBAL INTERNATIONAL BUSINESS

This address cannot be the address of a temporary office or a virtual office. You also cannot use
your residential address as an office in most cases but there may be some exceptions

2. Meet one of the following conditions

[a] Have capital or overall investment capital of 5,000,000 yen

You are required to show that the total amount of 5,000,000 yen is in your corporate bank
account and you will also need to provide your financial report and other required documents.

[b] Have at least 2 full time employees (other than yourself)

The employees must be a Japanese permanent residents as well as some other conditions. Please
consult the Immigration Bureau for more details.

[c] Have capital of 2,500,000 yen and 1 employee

Japanese visa for starting a new business

In order to start a new business in Japan as a foreign national, it is necessary to obtain a specific
type of visa. If you do not have a visa yet, you will need to obtain a 4-Months Business Manager
Visa or a Start-Up Visa which is provided in some municipalities (Tokyo, Fukuoka and other
cities) in Japan.

If you already have a Japanese visa, it is important to make sure that you are legally able to start
a new business with the same visa or if it is necessary to apply for a new one.

For a short-term stay, with the 90-days Visa you are allowed to do these activities as long as they
don't include remunerative activities: tourism, business, visiting friends or relatives. Read here
for further details about VISAs on the Ministry of Foreign Affairs of Japan website.

4-Month Business Manager Visa and Start-Up Visa

1. How to obtain a "4-Month Business Manager Visa"

The 4-Month Business Manager Visa was first offered in 2015. If you are able to prove that you
are in the process of starting a company (business) in Japan and if the application is successful,
you will be able to obtain the visa and begin setting up your business as soon as you arrive in
Japan.

This visa will be provided to you before your arrival in Japan, so you have to submit all
necessary documents to the immigration bureau in Japan ahead of time.

The 4-month Business Manager Visa is valid for 4 months. Within those 4 months you are
able to do the following:

 ・Obtain a residence card (naturally you need to have a residential address)

29
 GLOBAL INTERNATIONAL BUSINESS

 ・Open a bank account

 ・Register your business

During these 4 months, you will have time to prepare and set up your business in Japan. You are
also able to apply for an extension of stay (for 1 year) with a Business Manager Visa.

2. How to obtain a "Start-Up Visa" 

This visa is part of a special system that was established to increase the numbers of foreign
entrepreneurs in Japan and to make the procedures easier. The Start-Up visa is valid for 6
months.

The Japanese government is able to provide this type of visa in Tokyo, Hiroshima Prefecture,
Aichi Prefecture, Sendai City, Niigata City, Imabari City and Fukuoka City (as of March 2019).

To obtain this visa you will need to apply to the local government (you see above) with the
necessary documents including your business plan (all documents have to be filled in Japanese).
Once you have received the recommendation letter from the local government office, you can
use the letter to apply to the at the immigration bureau.

As part of this system, you are able to receive a 6-Month Visa by submitting your business plan.
This will allow you to have more time (2 months longer compared to the 4-Months Business
Manager Visa) to prepare your business. Once the first 6 months passed, you are allowed to
apply for extending your VISA for another 6 months.

The following is a quote from the Tokyo Metropolitan Government's website.

Foreign nationals wishing to start up business in Japan need to obtain a “Business Manager”
Visa.

To receive this status of residence, in addition to opening an office, the applicant must employ at
least two people full-time, or invest at least 5 million yen in Japan. This presents a high hurdle to
prospective foreign entrepreneurs.

In this program to increase foreign entrepreneurs, applicants can receive status of residence
(business manager) for half a year even if these conditions are not met, if business plans and
other necessary information are submitted to the Tokyo Metropolitan Government and the Tokyo
Metropolitan Government confirming that the applicant has prospects for fulfilling the
conditions within that half year.

30
 GLOBAL INTERNATIONAL BUSINESS

The Business Development Center

TOKYO

will provide individual support so that

the foreign entrepreneur will be able to
fulfill the conditions by the end of the
six months, and renew his/her status of
residence.

The 6-month Start-Up Visa is valid

for 6 months and allows you to do
the following:

 ・Obtain a residence card

(naturally you need to have a
residential address)
 ・Open a bank account
 ・Register your business

Contact one of the offices below for

further information about obtaining
a Start-Up Visa

 ・Tokyo
 ・Aichi Prefecture
 ・Hiroshima Prefecture
 ・Sendai City
 ・Imabari City
 ・Niigata City
 ・Fukuoka City

Types of business structures used in Japan

There are 4 types of business structures used in Japan:a Corporation (Kabushiki Gaisha),LLC
(Goudou Gaisha), General Partnership (Goumei Gaisha), and Limited Partnership (Goushi
Gaisha). The first two types of business structures are the most commonly used among Japanese
companies. You are also able to register a branch office.

Corporation (Kabushiki Gaisha - 株式会社)

Kabushiki Gaisha, commonly abbreviated as K.K and often translated as a Stock Company, is a
company whose stocks can be publicly traded on the open market. This is the most well known

31
 GLOBAL INTERNATIONAL BUSINESS

and common form of business structure used by Japanese companies and it is viewed as more
trustworthy than other business structures within Japanese society.

Limited Liability Companies (Goudou Gaisha - 合同会社)

An LLC is the replacement of former business structure known as Yugen Gaisha. The liability is
limited and the registration cost is more reasonable than that of a corporation (K.K). The stock of
the company is not publicly traded on the open market. An LLC is still a new form of business
structure for Japan and not very well-known in society, therefore many people tend to establish
their company as a corporation (K.K).

For further information and details, refer to JETRO's websites below.

 ・Representative Office, Branch Office and Subsidiary Company

 ・Comparison on of Types of Business Operation

Restrictions

You will need to have a permission and registration in order to setup certain types of businesses.
E.g. Food Business, Travel Agency, Temporary Staffing, Hotels, Selling of Liquor, Financial
Services, Sale of Pharmaceuticals ect.

Where to go to register your business and file your tax statement in Tokyo

Tokyo One-Stop Business Establishment Center

The Tokyo One-Stop Business Establishment Center offers support for foreign companies and
start-ups to complete an establishment of their business. They also provide several services free
of charge.

You can do all the following things in one-stop.

32
 GLOBAL INTERNATIONAL BUSINESS

 ・Certification of Articles of Incorporation

 ・Company Registration Tax (National Tax)
 ・Tax (Metropolitan Tax)
 ・Immigration
 ・Employment Insurance
 ・Labor Insurance
 ・Health Insurance / Pension Insurance

Tokyo One-Stop Business Establishment Center locations

・Akasaka ARK Mori Building

 Japan External Trade Organization headquarters 7F ARK Mori Building

 1-12-32 Akasaka, Minato-ku, Tokyo
 TEL: 03-3582-4934

・Shibuya Satellite Office

 1F Shibuya Dogenzaka Tokyu Bldg.

 1-10-8 Dogenzaka, Shibuya-ku, Tokyo
 TEL: 03-5489-4630

33