E-Business Development Plan

On

Cookmart.com

In partial fulfillment of the requirements for the degree of

Master of Business Administration

Submitted By:
Neema Sherpa
Rabin Timsina
Rajaram Ghimire
Rupesh Maharjan
Sanjaya Ghimire

Section: Jovial

Submitted to:

Mr. Roshan Regmi

Apex College
Pokhara University

January 2021
 DECLARATION

We, MBA students at Apex College, hereby declare that this e-business development plan
entitled, “Cookmart.com” for the fulfillment of the requirement of e-business
development plan submitted for 3rd trimester of academic year 2021, is a result of our own
study/ research carried out under the guidance and supervision of the course instructor Mr.
Roshan Regmi. We further state that it has not been previously submitted to any other
university or any other examination (s).

Regards,

Neema Sherpa
Rabin Timsina
Rajaram Ghimire
Rupesh Maharjan
Sanjaya Ghimire

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 ACKNOWLEDGEMENTS

We take this opportunity to express our sincere appreciation to the people without whose
support we would have faced insurmountable obstacles in preparation of this e-business
development plan.

Firstly, we would like to express our profound sense of gratitude to Mr. Roshan Regmi,
Course facilitator, for providing us great attention and time. We really appreciate guidance
and thankful for it.

Finally, we would like to thank friends and families for their inspiration and support during
the preparation of this report.

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 TABLE OF CONTENTS
Page no.

Front Page i
Declaration ii
Acknowledgements iii
Table of Contents iv-v
List of Figures vi
List of Tables vii
Executive Summary viii-ix
CHAPTER I: INTRODUCTION 1-4
1.1 Background of Project 1
1.2 Background of E-business Plan 2
1.3 Why is it necessary to establish Cookmart.com? 2
1.4 Mission of the Business Plan 3
1.5 Objectives of the Business Plan 3
1.6 Scope of Business Plan 3
1.7 Limitations of the Business Plan 4
CHAPTER II: BUSINESS MODEL AND PLANNING 4-10
2.1 Company summary 5
2.2 Company ownership 5
2.3 Competitive History 5
2.4 Company location and facilities 5
2.5 Value added to consumers 5
2.6 Value added to suppliers 6
2.7 E-business model 6
2.8 Industry (Competitive) Scenario 6
2.9 Market Area 7
2.10 Main Customer 7
2.11 Market Share 7
2.12 Sales Price 7
2.13 SWOT Analysis 8
2.14 Marketing Strategy 8

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2.15 General terms and conditions for our customers 10
CHAPTER III: BUSINESS INFORMATION TECHNOLOGY
ARCHITECTURE 11-29
3.1 Conceptual Framework 11
3.2 Network Management Architecture of Cookmart.com 13
3.3 Use case Diagram 14
3.4 Payment Gateway Process Work at Cookmart.com 15
3.5 Clearance and settlement process 17
3.6 Database Management System 19
3.7 SYSTEM DESIGN 20
3.8 E-R Diagram 22
3.9 Data Flow Diagram 23
3.10 Use Case Diagram 24
3.11 System Flow Chart 25
3.12 Customer Relationship Management of Cookmart.com 26
3.13 Supply Chain Management of Cookmart.com 28
3.14 Value Chain Management 29
CHAPTER IV: FINANCIAL PLAN 30-36
4.1 Working Capital 30
4.2 Fixed Assets 31
4.3 Preliminary Expenses 31
4.4 Administrative Expenses 32
4.5 Pro-Forma Income Statement 33
4.6 Cash Flow Statement 34
4.7 Balance Sheet 35
4.8 Calculation of Ratio Analysis 36
CHAPTER V: CONCLUSION AND FUTURE ENHANCEMENT 37-37
5.1 Conclusion 37
5.2 Future Enhancements 37
References

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 LIST OF FIGURES

Page no.

Figure no 1: E-business Matrix 6

Figure no 2: Conceptual framework of the business 11

Figure No 3: Network Management Architecture of Cookmart.com 13

Figure No 4: Use case Diagram Cookmart.com 14

Figure no 5: 4 Payment Gateway Process Work 15

Figure no 6: Clearance and settlement process 17

Figure no 7: Database Management System 19

Figure no 8: E-R Diagram of Cookmart.com 22

Figure no 9: Data Flow Diagram of Cookmart.com 23

Figure no 10: Use Case Diagram of Cookmart.com 24
Figure no 11: Flow chart diagram of Cookmart.com 25
Figure no 12: Customer Relationship Management 26

Figure no 13: Supply Chain Management at Cookmart.com 28

Figure no 14: Value Chain Management 29

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 LIST OF TABLES

Page no.
Table no 1: Fixed Assets 31

Table no 2: Preliminary Expenses 31

Table no 3: Administrative Expenses 32

Table no 4: Pro-Forma Income statement 33

Table no 5: Pro-forma Cash Flow Statement 34

Table no 6: Pro-Forma Balance Sheet 35

Table no 7: Ratio Analysis 36

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 Executive Summary
Cookmart.com is a food’s ingredients service provider company. It provides a set of
ingredient products that are required to cook Pizza, Momo, Burger and Sandwich at home
in easiest and fastest way by following its cooking directions of the product. Its main
objective is to make cooking process easy, simple and fast as changing time and changing
life styles of people. The company will be formally registered in the name of
“Cookmart.com”. Company office and factory will be located at Chapagaun, Godawari
Municipality-11, Lalitpur.

The founder and owner of Cookmart.com are Neema Sherpa, Rupesh Maharjan, Sanzay
Ghimre, Rabin Timsina and Rajaram Ghimire. Cookmart.com company will come up with
a pack of ingredient products for pizza, momo, burger and sandwich. The target market
will be office going busy wives as our primary market. Similarly, house wives and students
who have responsibility of cooking in the family will be our secondary market. Positioning
statement or tagline of Cookmart.com will be “Cookmart.com”. As promotional strategy,
the company will use pull strategy, which involves promoting heavily to end users and
consumers to create demand. And for the distribution through retailer it will use both pull
and push strategy.

The total start-up cost will be of Rs.23,05,950. The initial investment consists of fixed
assets worth Rs.20,81,950 and preliminary expenses worth Rs.2,24,000. The profitability
ratios of the company are increasing trends. Ratios shows the promising investment in the
business. The production process starts with the collection of raw ingredients from the
market. For raw ingredient collection Cookmart.com will deploy marketing personal of its
company in the market. After the products are made from the production department, the
factory supervisor and designer are responsible for quality control. They will see individual
product before leaving for delivery. The responsibility during this process is to see whether
the products are eatable on not, to inspect if there exist any production defects and to check
whether all the ingredients are inserted in right way or not.

There are internal risk and external risks that need to be considered. sometimes situation
does not provide favorable situation and it may not turn out to be profitable within five-

viii
year period then Cookmart.com will sadly exit from market with following full closure
procedure.

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 CHAPTER I

INTRODUCTION

1.1 Background of the Project

The rapid growths of wide area networking in internet in recent years has opened up a new
avenue for business companies to market up their products and services and disseminate
information about the goods to potential consumers. In recent revolution of the internet the
importance of E-commerce is in increasing pace, many global businesses around the world
that conduct their business in such a way on internet and electronic shopping on web based
are benefitting the opportunities of wide market coverage in short periods of time and
generating good sum of revenues. In another perspective in the recent era, as the
development in information technology have increased the dependency of consumers
consuming goods and services through internet and online shopping has also increased
significantly. The buyers and suppliers buying their goods and services from online web
based shopping are taking online shopping platform as less time consuming, cheaper in
prices in comparison to the market prices of the product and services and consumers feels
ease of doing shopping on online for their time saving and other resources.

By understanding the current scenario of development in e-commerce business and

information technology we are conducting our online business under named as
Cookmart.com for providing our products and services to our final consumers. From this
online business platform, we are providing our products of fast food ingredients which is
completely new concepts in the markets for placing our products of all fast food ingredients
in required quantity.

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1.2 Background of the E-business plan

Consumer’s preference of fast food is very strong in these days in our societies. This is
because of the parallel changes in working and social life and habits of the people. In social
context gradually the number of working families is increasing worldwide. In today’s
world, the habits of taking fast food are changing very fast. People who are living in the
city have high tendency to consume fast food compared to the people living in the rural
areas. The reason for the change is the time factor and responsibilities in their life. Due to
the difficulties of managing time for collecting cooking ingredients from market and
bearing the unexpected expenses of ingredients they discourage themselves to prepare their
food at home. as such the only alternative is to consume food that is prepared by others. In
recent years the major food consumption trend in urban parts of our country is that more
consumer is eating more meals made by others and most of the growth in online food
delivery services has been in the fast food sector. Normally job holding house wives and
students tend to have busy schedule. Students away from their home have to cook
themselves which not only affects their studies. they are often conscious about how to save
as much time as possible. Also a busy house wife has to face many difficulties of collecting
the ingredients of food from the different stores of the market and have to bear unexpected
expenses of money for extra quantity of ingredients then they needed. in this regard
Cookmart.com company has brought four different set of ingredients products to prepare
fast food like pizza, momo, burger and sandwich in their home in easiest and cheapest way
to solve out all the problems the job holding people, students and busy house wives who
have busy schedule of jobs and business of their life as well as cooking responsibility in
their families. We provide door to door services from online web portal inside the
Kathmandu valley.

1.3 Why is it necessary to establish Cookmart.com?

There are such businesses which are already running in the market area, it is a very new
business concept in the market where most of the business are going online. This business
has an opportunity to grow very well. Each consumer is looking forward to buy their
desired products in instant click of the button and get deliver at the place within certain
period of time with low cost they can get. This business can meet the conditions of

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consumer. Since the information technology are developing in Nepal online business has
strength to capture the market in minimal period of time.

1.4 Mission of the Business Plan

Our main goal is to be one of the most successful food suppliers in the Nepalese history by
supplying the highest number of people inside the Kathmandu valley. Customer
satisfaction and education are our paramount missions. We will endeavor to meet the
highest standards of excellence through superb customer service and consistent product
delivery in friendly and comforting environment.

We seek fair and responsible profit, enough to keep the company financially healthy and
ensure continued growth and development. Responsible profit will fairly compensate
owners and investor for their risk and reward employees for their hard work, loyalty and
commitment.

Employee welfare, participation and training are equally important to our success. Every
employee will be treated fairly, with dignity and the utmost respect. It is our responsibility
to provide employees with a friendly, comfortable and challenging work environment with
opportunities for growth and development.

1.5 Objectives of the Business plan

 To establish a presence of successful food suppliers in Kathmandu valley and gain a

market share in food suppliers’ business.
 To continue providing highest quality of food and service to the customers.
 To make people aware about our product and its services.
 To make cookmart.com spot for food cooking lover.
 To expand into numbers of customers in 5years and expand the business territory.

1.6 Scope of Business Plan

There is high scope of cookmart.com in the aspect of business, at present it is in the growth
stage being the part of day to day activity of consumer with the increase in technology.
Some of the scope as per present days are:

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  It will be benefited to consumers who buy through us as they will get cheap
ingredients with secured high quality goods.
 It will reduce the transaction though money rather it promotes easy and safe
payment through e-payment system.
 E-commerce business like us would have the full pleasure to expand the business
from local to global as it would be easy using telecommunication networks and
technologies.

1.7 Limitations of the Business Plan

 Security
The biggest limitation of cookmart.com is the issue of security. People fear to
provide personal and financial information, even though several improvements
have been made in relation to data encryption. Fear of payment through e-wallet
and risk of identity limit the growth of company.
 Growing of technologies
The technological development of our country is in initial increasing phase which
means all the sectors of information technology has not completely adopted in our
country due to which we are not being able to work efficiently in the field of online
business.
 Fear
People fear to operate in a paperless and faceless electronic world. People do not
know with whom they are conducting commercial transactions and do the company
really provide the original goods with high quality. This aspect makes people to opt
physical stores for purchases.

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 CHAPTER II

BUSINESS MODEL AND PLANNING

2.1 Company Summary

Cookmart.com will be a web-based online transaction company and it will be located at

Chapagaun, Godawari Municipality-11, Lalitpur. The company will be established to
capitalize on growing demand in the community for a local who will get the facilities of
the online transaction of the products which they want to purchase in compared to the
market price.

2.2 Company ownership

Our company will be owned by five partners: Mr. Neema Sherpa, Mr. Rupesh Maharjan,
Mr. Rajaram Ghimire, Mr. Rabin Timsina and Mr. Sanjaya Ghimire.

2.3 Company history

The company is going to establish in the near future with the mission of providing better
quality, web based e-commerce facilities. The concept is completely new to the market
since it will be completely web based. Though there are indefinite numbers of vendors
already existing in the market in the same business line, our businesses will be presented
in an innovative way with the wide variety of services.

2.4 Company location and facilities

Our company will be located near at Chapagaun, Lalitpur which we had already mentioned
above. Cookmart.com is an e-business concept which offers two fold benefits and facilities
to its customers as well as suppliers of the product.

2.5 Value added to consumers

 Consumer will get product as per their requirement and demand at their required
time.
 Getting online order of the food provides cost benefit and time benefit to the
customers.

5
  Consumer will get secured payment system through the mobile wallet for paying
of their products.
 Consumers will be kept in contact after the sales for reviewing the experiences of
theirs and design more product as per their requirements.
2.6 Value added to Suppliers:

Suppliers of the company would be the farmers as the required raw materials for
ingredients are collected directly through farmers. Suppliers would be benefited in sense
that their products would get the fair value of payment reducing multiple middle person.
Their products are only processed as per the designed product of company with minimal
charge to customers.

2.7 E-business model

BUSINESS CONSUMER

B2B B2C BUSINESS

Cookmart.com
CONSUMER
Figure no 1: E-business Matrix

On the parties’ involvement and the way that transaction held, basically Business
models are of two categories as shown in above matrix figure. According to it our
business “Cookmart.com” directs to B2B and B2C model. In B2B MODEL we sell our
products to restaurants, fast-food café, etc. In B2C we sell our products to consumer’s
direct door to door services.

2.8 Industry (Competitive) Scenario

Much online food delivery companies and restaurant are operating on the fast food service
providing in Kathmandu valley. All these companies and restaurant will be rivals for

6
Cookmart.com. However, the intensity of rivalry will not be very high as Cookmart.com
will differentiate itself from other business with its concepts of easily cook able ingredient
product of fast food at home. Increasing trend in online shopping business in Nepal is
increasing day by day, the new entrant may exist in short time period of time by providing
the services. However, there is not any business house in the market working with the
concept/business logic like ours so currently there is not any competitor for us.

2.9 Market area

The increasing online transaction and increasing e-payment system will encourage
consumers to buy a products and services through online services. Majority of consumers
are uneducated about the services in Nepal. However, a large number of people living in
urban areas have knowledge, willingness and ability to pay for such products therefore our
target market place will be the urban areas specially Kathmandu Valley for initial stage
and later after the successful business in Kathmandu valley we will target cities like
pokhara, dang, jhapa, biratnagar and butwal.

2.10 Main customer

Our main target customers are the people living in the urban area, and people having
willingness on online business and busy life people in urban areas are main consumers like:
busy housewife, students etc.

2.11 Market Share.

Since the concept of this business is new in the market there are no other vendor with the
same business logic so we can capture the market share providing quality and cheap
product.

2.12 Sales price

Our selling price will be the cost plus margin. So we will charge 4% extra on actual cost
for the purpose of selling the products to the final consumers.

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2.13 SWOT Analysis

Strength

 Capture the market in short period of time through online medium.

 Suppliers are paid fairly so they will be loyal to the company.
 Highlighted and Strong brand image.
 Fulfils the customers’ requirement.

Weakness

 Capital formation by only shares would limit to expand.

 Other business could imitate similar idea quickly.

Opportunity

 Innovation and development in e-payment system.

 Positive response of consumers towards online buying.
 Government supports in policy making of e-commerce.
 Easily availability of raw materials in market.

Threats

 Environmental factor like COVID-19 and Government shutdown policies.

 Political factors like instability of politics.
 New rules and regulation of government.
 Change in technology in short period of time.

2.14 Marketing strategy

Looking at the trend of consumer’s expenditure for fast food in Kathmandu valley gives
the positive vibes to open the food production business. The increasing number of new
establishments such as online food services, fast food franchise and other fancy restaurant
has shown significant growth in this sector. Today due to the busy life most of the people
prefer to eat ready cook foods. The only thing we need to keep in mind is quality with the

8
value for their money. So for this we will be focusing on certain marketing strategies on
4ps of marketing i.e. Price, Place, Product and Promotion.

Price

Prices of own products will be based on cost plus pricing methods that would final price to
the customers and the products that are bought from suppliers will be based on their cost
and plus commission. The commission to suppliers would be based on the demand of their
product in the market.

Place

Recently we will conduct our business from the central office which will be located at
Lalitpur. Besides Lalitpur we will also have branch offices in accordance to other cities in
Nepal if necessary and as per time requirement.

Product

We will be selling all the cooking ingredients products in interest of consumer. Our
products will be available at reduced cost and small quantity that customer are looking for.
Due to the availability of our product in small quantity all products will be affordable by
all range of people.

Promotion

As promotional strategy, the company will use pull strategy, which involves promoting
heavily to end users and consumers to create demand. And for the distribution through door
to door delivery service.

Major Promotion Strategy

 Online promotion
Profile will be created on Facebook, twitter, and YouTube where it will be updating
customers about our products designs. The company will get free service for those
customers who are heavily engaged on our Facebook page.
 Magazine and FM

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 Advertisement will be given on renowned magazines and company will also FM
program and provide free services for lucky caller.

2.15 General terms and conditions for our customers

 Customer should be member of Cookmart.com by providing the login details.

 Customer would have full right to return the goods if they found low quality of
goods.
 If any losses/damage occur to consumer due to fault of Cookmart.com, then they
have right to claim for the full losses to cookmart.com
 Cookmart.com is not liable for the compensation that have been resulted due to
customer’s self-mistake.
 Customer is self-responsible for the default occur in the payment made by them
self.
 Cookmart.com have right to claim for the compensation on fault made by
customers.
 Cookmart.com owns the right to charge amount to customers if they unethically
behave with the company.

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 CHAPTER III

BUSINESS INFORMATION TECHNOLOGY ARCHITECTURE

3.1 Conceptual Framework

Trans Fail

Consumer Select Items Purchase

(Browsers)

Secured/Trusted
Portal for Verisign/ khalti
Transaction

Trans Success
Intranet/Extranet
Servers

Confirm purchase Notification

Seller
firm Purchase Intranet/Extranet
Upload Servers
Puts Advertisement

(Product)
Product
ID/Cost Notification

New Product
Web Update

Figure no 2: Conceptual framework of the business.

In the figure above, the consumer will browse the web page and go for the item or the
product which they want to purchase. If they want to purchase, they will go for purchasing

11
the product. After having the product, the consumer has to go through the secured/portal
transaction then finally if the transaction is success then notification for the purchase will
come in the web site. After this the consumers have to confirm for the purchase of the
product. Incase if the transaction is failed then the consumer have to browse from the
beginning.
From the seller’s point of view, the seller will first give the advertisement about the product
that he/she want to sell then seller themselves will upload the product where the product id
code and other number are given, then it passes through the internet server and notification
for the sales of the product can be seen in the web page. Similarly, the process goes on
continuing i.e. if other sellers also want to make advertisement for the product they can
also go for the similar process.

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 3.2 Network Management Architecture of Cookmart.com

Cookmart.com Office

C2 C1
Internet
Intranet
Router
Network Fire wall
C3

Intranet server

Net Work FireWall Network Fire wall

Router

Router

Web server Web Server

Buyer

Customer’ Seller’s
s Seller Computer
Computer

Figure No 3: Network Management Architecture of Cookmart.com

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3.3 USECASE DIAGRAM

Connects
Transaction
Browser
Processing
E-catalog
Purchase
Check
Server
Amount
Consumer
Update
Check
Backup Servers/
Products
Connects Database
Browser
Transaction
Upload Panel
History
Upload

Seller User History

Product
Update

Product

History

Figure No 4: Use case Diagram Cookmart.com

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3.4 Payment Gateway Process Work at Cookmart.com

Figure no 5: 4 Payment Gateway Process Work

The payment gateway process kicks off when a customer orders a product from a payment
gateway-enabled merchant. The payment gateway performs a variety of tasks to process
the transaction.

1. A Customer Places An Order

Either by clicking ‘Buy’ or an equivalent option or by entering the card details on the
merchant website or application.

2. Encryption of Information and Forwarding to Merchant’s Site

If the order is via a website, the customer’s web browser encrypts the information to be
sent to the merchant’s web server. And in other cases, this is done via the Secure Socket
Layer (SSL).

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3. Forwarding Information from Merchant’s Site to the Payment Gateway

This is an SSL encrypted connection from the merchant’s server site to the payment server
hosted by the payment gateway.

4. Payment Gateway sends transaction information to the Payment Processor used by

the Merchant’s Acquiring Bank

5. Payment Processor forwards transaction Information to the Card Association

The card association also acts like the issuing bank and directly provides a response of
approval or declination to the payment gateway.

6. The Card Association receives the authorization request, verifies the request and
sends a response back to the processor.

It conveys the success or failure of the request as well as the reason.

7. Payment Processor forwards this information to the Payment Gateway.

8. Payment Gateway forwards it to the Merchant Website.

This process is known as Authorization and it takes about 2-3 seconds, altogether. The
merchant then fulfills the order and the above process can be repeated.

9. At the end of the day, the payment gateway performs a process known as Settling.

During which it groups all your transactions together and sends them off to the Merchant’s
Acquiring Bank in a single batch via the Processor for Settlement.

10. Payment gateways also record your transactions and allow you to view them using
the payment gateway report facilities. This completes a single payment gateway process.

Making A Choice: The Right Payment Gateway

In addition to their basic function of transmitting and receiving credit card transaction.

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3.5 Clearance and settlement process

Customer A/C at SBI Bank

A/C name Validation & Confirmation of txn

SBI Bank Parking AC

Pushed by Khalti

SBI Bank Nastro A/C Khalti A/C Nostro A/C Khalti Nastro A/C

CBS

Cook Mart A/C at

Machhapuchhre
Bank

Figure no 6: Clearance and settlement process

Here, Lets say Khalti is our payment service provider or payment gateway. Customer pays
the fund from Nepal SBI A/C to the cookmart account at MBL account .

Here, The firm is completed in the way.

1. Khalti’s account is maintained at Nabil Bank.

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2. Customer of SBI Bank pays the fund using khaltis gateway. There appears the
account validation and confirmation after processing customer account will be
debited and SBI parking account will be credited.
3. If all the details are valid then SBIS parking account will be debited and SBI’s
nostro minor account will be credited.
4. After all these the SBI’s account at Nabil will be debited and MBL account at Nabil
will be credited.
5. The MBL’s nostro mirror account will be debited.
6. Then finally cookmart’s account at MBL will be credited.

Clearance and settlement

Nepal SBI Account Dr

Khalti Cr
Nabil Bank

Dr.

MBL

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 3.6 Database Management System

User View User View User View User View

System Conceptual/logical DB
Administrator Level Administrator

Physical/ internal
Level
Payment gateway
cookmart.com database
database table
table

table Merchant bank

table
Customer bank Master Database database
database

Table

Slave Database Slave Database

Settlement bank
database

Figure no 7: Database Management System

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Database management system

User Level: This is the highest level of abstraction as seen by a user. This level of
abstraction describes only the part of entire database. User view is the external layer of the
database. It is the final and customized database what the end user see. There can be number
of user view of the database

Conceptual Level: This is the next higher level of abstraction which is the sum total of
user's views. This level describes what data are actually stored in the database. This level
contains information about entire database in terms of a small number of relatively simple
structures. It is the logical view of the database. There is only one conceptual level of the
database and it is maintained by the database administrator. The whole system regarding
our website is maintained by the system administrator

Physical level: This is the lowest level of abstraction at which one describes how the data
are physically stored. It maintains the database stored in different web servers. It is the
internal level of the database. In the physical level of our business’s database, the data is
stored in the master database or the primary database. The master database is connected to
the payment gateway database, customer bank database, merchant bank database and
settlement bank database through the database table. There as other slave databases which
serve as the backup for our system.

3.7 SYSTEM DESIGN

The software system is proposed to solve a specific task. The system Cookmart.com is
designed to serve as a food ordering and food selling system. There are two modules
that work side by side to complete the system

The modules are described as below:

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Admin Module:

This module controls overall working of the system. In this module

various module are being included which is defined below:

I. Removal of User:

In this module, the admin of the system can remove the user if seen they
violate or guidelines.

II. Update Order module

In this module, the admin will be able to update the status of the order.

User module:

This is the front-end module of the system. In this module, the user has to
register their information in the system in order to use the application. On this
module, the user will be able to search and order the food they want. They will
be able to add food to the application which they are intending to sell.

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3.8 E-R Diagram

Figure no 8: E-R Diagram of Cookmart.com

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3.9 Data Flow Diagram

Figure no 9: Data Flow Diagram of Cookmart.com

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3.10 Use Case Diagram

Figure no 10: Use Case Diagram of Cookmart.com

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3.11 System Flow Chart

Figure no 11: Flow Chart Diagram of

Cookmart.com

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3.12 Customer Relationship Management of Cookmart.com

Customer Relationship Management programs manage a company’s interactions with

customers, clients and sales prospects. At its most basic, CRM tracks every stage in the
sales process for every prospective client, but many systems also handle opportunities,
territories, sales forecasts, analytics work flow automation, quote generation and product
information.

Figure no 12: Customer Relationship Management

Regarding cookmart.com, we will acquire new customers through the advertisement placed
on various social media like facebook, newspaper, twiter, T.V, Radio/ FM and also through

26
the word of mouth. By doing so our customer (i.e Seller) as well as seller’s customers can
perceive the value of services provided by us. Similarly, our both customer’s information
are kept in our shared customer database in separated data ware house so that we can
provide the information to them on demand.

In addition, our direct marketing, sales force automation also helps our customers to cross
sell and up sell their products to their customers, this finally enhance good relationship
with our customers. Likewise, the customer database that cookmart.com maintain helps a
company proactively identify and reward it’s most loyal and profitable customers to retain
and expand business and also helps to uplift the level of the services to customers.

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3.13 Supply Chain Management of Cookmart.com

Figure no 13: Supply Chain Management at cookmart.com

Supply Chain Management is a cross functional interenterprise system that uses

information technology to help support and manage the links between company’s key
business process and those of its suppliers, customers and business partners. Regarding
cookmart.com it will start its business by establishing relation with suppliers that exist in
the Kathmandu, Biratnagar, Pokhara and Chitwan. Then after the interaction between
Cookmart.com representatives and suppliers will be held and interested candidate

28
(Supplier) will became our member and they should fulfill all the requirements and should
follow the rules and regulations made by cookmart.com.

3.14 Value Chain Management

Commerce,
banks

Producers of Content
technology/ providers Merchants
application
Hardware Internet Internet
and software portals portals
producers
Service Service Service Service
Service
Providers providers providers providers
providers

Network Customer E-Commerce Customer

Infrastructure acquisition Transmission contents relationship

Figure no 14: Value Chain Management

29
 CHAPTER IV

FINANCIAL ANALYSIS

4.1 Working Capital

The working capital for the firm is paid up capital at the initial business processes in the
form of cash only. Each shareholder will invest Rs. 500,000. So, the initial investment for
the business will be of Rs. 25,00,000.

Assumptions:

1. Sales increased by 10% each year.

2. Depreciation expenses is 10% under straight line method for 10 years.

3. Operating Expenses increases 10% each year except audit fee, company renewal, domain
name register fee, and webhosting and internet expenses.

4. COGS is 60% of Sales Revenue.

5. Preliminary expense written off is 10% each year for 10 years.

6. Tax Rate is 30%.

7. Inventory is 120000 per year

8. Accounts Payable is 10% of COGS.

30
4.2 Fixed Asset

Table no 1: Fixed Assets

Description Rate Quantity Amount Rs.

Laptop 65000 4 260000

Printer/Scanner 11000 2 22000
Router 2500 1 2500
AC 30000 1 30000
Speaker 1500 1 1500
Telephone set 1150 3 3450
Sofa Set 30000 1 30000
Revolving Chair 2500 3 7500
Table 5000 3 15000
Chairs 1000 10 10000
IngredientCleaning 200000 1 200000
Machine
Vehicle(Tata) 1500000 1 1500000

Total Fixed Assets 2081950

The initial investment consists purchase of fixed assets of Rs. 20,81,950.

4.3 Preliminary Expenses

Table no 2: Preliminary Expenses

Particular Amount
Registration Charge 25000
Feasibility 9000
Consultancy fee 5000
Initial HR development & Training 100000
Web Development Fee 85000
Total 224000

The initial investment consists preliminary expenses of Rs. 2,24,000.

31
4.4 Administrative Expenses

Table no 3: Administrative Expenses

Operating Expenses Year 1 (Rs) Year 2 (Rs) Year 3 (Rs)

Salary 1440000 1584000 1742400
Rent 600000 660000 726000
Audit Fee 20000 20000 20000
Company Renewal 20000 20000 20000
Repair & Maintenance 35000 38500 42350
Water 20000 22000 24200
Domain Name Register 8000 8000 8000
Webhosting 10000 10000 10000
Internet 15500 15500 15500
Stationary 50000 55000 60500
Fuel 30000 33000 36300
Marketing Expenses 200000 220000 242000
Service charge to E-SEWA 250000 275000 302500
Miscellaneous 15000 16500 18150
Electricity 15000 16500 18150
Total operating expenses 2728500 2994000 3286050

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 4.5 Pro-Forma Income statement for the first three year
Table no 4: Pro-Forma Income statement

Particular Year 1 Year 2 Year 3

Sales Revenue 8,345,400 9,179,940 10,097,934

Less: CoGS 5,007,240 5,507,964 6,058,760

Gross Income 3,338,160 3,671,976 4,039,174

Less: Operating 2,728,500 2,994,000 3,286,050

Expenses

Preliminary expenses 22,400 22,400 22,400

written off

EBDIT 587,260 655,576 730,724

Less: Depreciation 208,195 208,195 208,195

EBIT 379,065 447,381 522,529

Less: Interest Expenses 0 0 0

EBT 379,065 447,381 522,529

Less: Tax payment 113,720 134,214 156,759

Net Income 265,346 313,167 365,770

Dividend Payment 53,069 62,633 73,154

(20%)
Undirtibuted Income 212,276 250,533 292,616
(B/S)

Net Cash Flow after tax 473,541 521,362 573,965

(CFAT)

On the first year company is expecting to earn Rs. 2,65,346 as net profit after tax. Dividend
is paid each year of 20%.

33
4.6 Cash Flow for the First three year

Table no 5: Pro-forma Cash Flow Statement

Particular Year 1 Year 2 Year 3
Cash Flow from
Operation
Net Income 265,346 313,167 365,770
Add: Depreciation 208,195 208,195 208,195
Change in Inventory -120,000 0 0
Change in AP 500,724 50,072 55,080
Net Cash Flow From 854,265 571,434 629,045
Operating Activities
Cash Flow From
Investment
Purchase of Fixed -2,081,950 0 0
Assets
Net Cash Flow from -2,081,950 0 0
Investment
Cash Flow From
Financing
Issue of Share Capital 2,500,000 0 0
Dividend Payment -53,069 -62,633 -73,154
Net Cash Flow From 2,446,931 -62,633 -73,154
Financing Activities

Net Cash Flow 1,219,245 508,801 555,891

Opening Balance of 0 1,219,245 1,728,046
Cash
Closing Balance of 1,219,245 1,728,046 2,283,937
Cash

34
4.7 Balance Sheet for First Three Year

Table no 6: Pro-Forma Balance Sheet

Particular Year 1 Year 2 Year 3

Current Assets:

Inventory 120,000 120,000 120,000

Cash and Bank 1,219,245 1,728,046 2,283,937

Total Current Assets 1,339,245 1,848,046 2,403,937

Fixed Assets 1,873,755 1,665,560 1,457,365

Total Fixed Assets 1,873,755 1,665,560 1,457,365

Total Assets 3,213,000 3,513,606 3,861,302
Laibilities and Equity

Current Liabilities:
Account Payable 500,724 550,796 605,876

Total Current Liabilities 500,724 550,796 605,876

Long Term Liabilities:

Bank Loan @ 10% 0 0 0

Total Long Term 0 0 0

Liabilities
Total Liabilities 500,724 550,796 605,876
Shareholders’ Equity

Share Capital @100 2,500,000 2,500,000 2,500,000

Retained Earnings 212,276 462,810 755,426

Total Shareholders’ 2,712,276 2,962,810 3,255,426
Equity
Total Liabilities & Equity 3,213,000 3,513,606 3,861,302

35
4.8 Calculation of Ratio Analysis

Table no 7: Ratio Analysis

Ratios Year 1 Year 2 Year 3

Current Ratio 2.67 3.36 3.97
Quick Ratio 2.43 3.14 3.77
Inventory Turnover Ratio 41.73 45.90 50.49
Fixed Assets Turnover 4.45 5.51 6.93
Total Assets Turnover 2.60 2.61 2.62
Return on Assets 8.26% 8.91% 9.47%
Return on Equity 9.78% 10.57% 11.24%
Profit margin on sales 3.180% 3.411% 3.622%
liabilities-to-assets ratio 15.58% 15.68% 15.69%

The current ratio of company is 2.67:1 in the first year of operation and in the third year
the ratio will reach to 3.97:1. Similarly, the profitability ratios of the company are in
increasing trend. The net profit margin is in increasing trend and the company will attend
3.622% net profit in the third year. On the first year, Return on Asset is 8.26% and Return
on Equity is 9.78%.

36
 CHAPTER V

CONCLUSION AND FUTURE ENHANCEMENT

5.1 Conclusion

Among various changes on 21st century, electronic system, internet, digital and
technologies related things has observed greatest change. And all these things changed the
business pattern, model and activities. Our business adopts the principle of win win strategy
because it benefits all stakeholders like management, customer, and employees. Cookmart
will provide their demands at their place with great service at very less time. Cookmart
helps to save the valuable time of the customers and provides cooking directions of the
products with ingredients. In today’s busy working life, consuming of fast food are very
high. The people who are living in city area have high tendency to consume fast food
compared to the people living in rural areas. This is due to time factor and responsibilities
in their life.

5.2 Future Enhancements

In less period of time this project has been completed as possible ensuring that it provides
all the basic functionalities to meet the objectives of the project. However some other
factors are not developed due to lack of knowledge and time to test those factors.

Future enhancement that could be included in Cookmart.com can be stretched as far as the
human imagination goes and as long as technology to support them is available. The
following enhancements are possible within the bounds of current state of the technology.

 In this Initial stage we provide our services to only those people who are within
Katmandu Valley. So, we commit to provide our services to other cities also very
soon as mentioned above;
 At present we are linked up with only one payment gateway i.e Khalti but in future
we are planning to link up with others too and are also planning to have our own
office in major places.

37
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Schuster.

4. Chang, M., Guillain, L. V., Jung, H., Hare, V. M., Kim, J., & Agrawala, M. (2018,
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