A Report on

Business Plan Development & Execution

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S u b mitt ed to:
Khairul Alam Siddique

Lecturer

Department of Finance

Faculty of Business Studies

University of Dhaka

S u b mitt ed By:

Group 02

Section: B

BBA 22nd Batch

Department of Finance

Faculty of Business Studies

University of Dhaka

Date of Submission: 21st January, 2019

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 Group Profile
Serial No. Name ID Remarks

1. Bidhan Paul 22-047

2. Nousheen Nawar 22-086

3. Shahriar Islam Showruv 22-101

4. Sumaiya Siddique 22-122

5. Nadia Nahar Liza 22-125

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 Letter of Transmittal

January 21, 2018

Khairul Alam Siddique
Lecturer
Department of Finance
Faculty of Business Studies
University of Dhaka

Subject: Letter Regarding Submission of Report on “Business Plan Development &

Execution”

Dear Sir,
With due respect, we would like to state that, we are the student of the 22 nd batch, Department of
Finance, Faculty of Business Studies, University of Dhaka. It is our great pleasure to inform you
that we have the opportunity to submit a term paper on “Business Plan Development &
Execution” for the course “Entrepreneurship and Project Development (F-306)”.

We believe this group effort will help you to have a positive viewpoint upon us. We feel blessed
to deliver you both theoretical based and practical based knowledge.

Sincerely yours,

Nousheen Nawar
ID: 22-086
Section: B
On behalf of Group no: 02
BBA 22nd Batch
Department of Finance,
Faculty of Business Studies,
University of Dhaka

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 Acknowledgement

All the praises to the almighty Allah for his blessing to give the opportunity to complete the
report. It would be impossible to complete the report without the assistance and instructions of
our course instructor Khairul Alam Siddique. We would also like all other people who have
cooperated with us. Without the efforts of these people, the report would be difficult to be
submitted. With the help of these people, we have acquired vast knowledge about business plan
development, feasibility analysis and execution.

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Table of Contents
Executive Summary.....................................................................................................................................7

General Company Description....................................................................................................................8

Market Analysis........................................................................................................................................15

Marketing Plan..........................................................................................................................................16

Operational Plan........................................................................................................................................18

Management and Organization:.................................................................................................................19

Financial Projections.................................................................................................................................20

Bibliography..............................................................................................................................................22

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Executive Summary
Your Reservation & Celebration Manager (URCM) which is a dedicated one-stop reservation
and celebration service provider is determined to become a necessity for people of various ages
who want to celebrate their special days hassle-free in order to make their social bonding strong,
a service to dream of as you try to escape the stresses of life, work-life conflicts and just
provided a comfortable arrangement to meet your friends and families, all in one.

With the growing demand for restaurant table reservation and micro-level celebration
management service, URCM will capitalize on its proximity to the connecting the service-takers
to build a core group of repeat customers as well as new customers. This service will offer its
customers the best celebration management service in the area that will be complemented with
decorations, food arrangement, gifts arrangement, as per the requirements of the clients that its
patrons can enjoy their gatherings and find their comfort.

The company will operate its business virtually through its website, app, and social medium and
provide service in the urban area of the country i.e. renowned city like Dhaka, Chittagong. The
owners will enter into a contract with key people i.e. restaurant owners, gift shop owners. The
total start-up fund for this business is twenty-two lakh Taka and the founders have provided all
of the start-up funds so no borrowings will be obtained initially. Legal form of ownership is
partnership business initially.

The business is expected to grow sales revenue from BDT 7,304,000 in year one to BDT
19,920,000 in year three. As URCM will strive to maintain sustainable growth and reasonable
operating expenses, it will see net profits grow from BDT 1,794,590 to BDT 9,078,938 during
the same period. The highlights of the financial projection are presented here in a graphical
representation:

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 Highlights
25,000,000.00

20,000,000.00

Total Revenue
15,000,000.00
Total Cost
Net Profit
10,000,000.00

5,000,000.00

-
Year 1 Year 2 Year 3 Year 4 Year 5

FIGURE 1: H IGHLIGHTS OF URCM' S F INANCIAL P ROJECTION

General Company Description

The business we would like to introduce which belongs to the origin of the service industry in
the face of event management. Basically, the idea is to introduce the event management service
for arranging a birthday party or candlelight dinner in a restaurant while decoration and buying
gifts will be in our responsibility.

The sole task that we would like to do as the CELEBRATION MANAGER is to push a little
more happiness and colours to the life of peoples who can be a student, corporate, retired parents
or anyone who love to celebrate an occasion but somehow could not make time for the
arrangement in the busy life. So we want to manage people’s celebration

Mission Statement: We manage your ties being your celebration partner.

Our Venture’s goals and objectives:

Goals: The target is to capture the 50% of niche market within 3 years to be the market leader.
The healthy relationship with the customers of our service will help us to retain the market share
and generating the blue ocean strategy with our quality services so that the entry barrier can be
put which will stop other competitors to enter into the market.

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Objectives: To provide a holistic solution to the problem of not getting time to celebrate an
occasion in the busy life by offering an affordable celebration managing service at personal
levels. For the achievement of the goal that we are cherishing should be covered if the amount of
orders in month grows 10% sequentially to generate the customer base. From the starting of the
second year of the business, we would like to spread the service outside the Dhaka city which
will boost the numbers of orders of celebrations. The strong customer base and the repetition of
orders from them can be the key point to achieve the goal of being the market leaders.

Business philosophy:

A business firm’s philosophy is a distillation of its culture into a group of core values that inform
all aspects of its business practices. Having a strong business philosophy is a key to guide both
the users and the employees at decision-making crossroads. The philosophy of the venture
named ‘your celebration and reservation management partner’ is to the customer is our first
priority. The more angel user we can generate, the more value can be added to the venture in the
long run. From this idea, we set this philosophy throughout the phase of taking orders to
complete it giving the best customer service experience. To whom our products will be available
are the valuable use of our services. And the targeted customers according to the age are in
between 16-65 years old.

Our Venture’s strengths and core competencies:

Core competencies are the resources and strategic advantages of a business, including the
combination of pooled knowledge and technical capacities that allow it to be competitive in the
marketplace. They are what the company does best and consist of the combined activities,
operations, and resources that distinguish the company from competitors.

The factors which will make our venture successful are:

The management prowess that we have in the 10 partners. Most of them educated from the
business background and there are 2 specialist in finance and 4 specialists in even management
and decoration purposes. The capital for initial starting has been backed up well too. The venture

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has been so important for tapping the momentum of the business while there are no direct
competitors, and the quality service with relevant charge can be the key. Another factor for the
success is the well-driven marketing to reach to the targeted people in the cities. The relation
with the gifts shops and the restaurant will give us an extra edge.

Our major competitive strengths will be the Human capital we have as we are selling not only
the services but also the experience of some happy and the most important moments for a
person’s life. Our manpower is well trained and equipped to tackle the pressure of the
arrangements tactfully with a lower budget that will ultimately push us to build an identity as the
cost-efficient business firm.

Legal form of ownership is Partnership business initially. The reason behind is that most of the
co-founders are still pursuing their educational excellence and most of them have been agreed to
give the same amount of capital and labour for the entity. In such scenario, we have found the
partnership business more useful to tackle the obstacles and cutting down the salary of the
Human capital for first 2 years and the burden of loan has been removed through the funding
from the individual.

A SWOT analysis of the Firm

Strengths:

 The increasing rate of interested people to avail this service.

 Cheaper alternative
 Having plenty of places to reserve and helping in celebrate
 Giving the best quality experience
 Strong team players availability
Weaknesses:

 Not capturing the whole of Bangladesh at a time

 Shortage of capital to go in big size
 No brand name initially
Opportunities:

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  Capturing market share in the country by filling the gap between demand and supply.
 Growing market size
 Penetrating the untapped market
Threats:

 Changing economic condition

As the product is segmented as less costly in the market as the sole product, that is why the
people should buy this product.

Service
Situation Frequently Encountered: Trouble to get availability of restaurants in the festivals.

We are so much busy with a career that we forget our special days and even if we do not forget,
we are in a dilemma how to spare time to make arrangements for the celebration. Sometimes
even if we have time but we do not know how to add colours to the special moments.

Service: To mitigate the work and personal life imbalance and to remove the hassle to arrange a
quality time with family and friends, ‘One Stop Reservation & Celebration Management
Service’ is introduced here. Our proposed product is ‘Your Reservation & Celebration
Manager (URCM)’.

Features of the service:

i) Restaurants’ table reservation

ii) Manage your celebration (personal)
iii) Gift your precious one
iv) Make your day festive
The factors that give us the courage to bring such an idea to live because of this competencies:

 The market is untapped which allures us to bring this idea

 Niche market like this needs a venture which can cope with low cost and as the venture
owner; we have a little-fixed cost and opportunity to cover the demand with the 40-45%
variable cost.
 And to make it happen we have experts as the partners on the event management and the
financial analysts to give the edge in management performance.
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  We have complete belief on the people of our team regarding the value they are going to
add to our customer life to retain them as our permanent consumer.

Industry Analysis
The business we would like to introduce which belongs to the origin of the service industry in
the face of event management. Basically, the idea is to introduce the event management service
for arranging a birthday party or candlelight dinner in a restaurant while decoration and buying
gifts will be in our responsibility.

The expectation is that the market should be in the mature phase within 2030. As most of the
markets are untapped and if the strategies are taken properly, this market can be a very profitable
phase for investment. The projected growth rate for the market is 25%. The industry has been in
the growth stage so the trend line is given hereunder.

Figure 2: Industry cycle

In the short run, the changes are not going to be taking place that much as we are the first
initiator to introduce this service in the country. The objective will be to create the
communication and the branding rightly towards the consumers we are targeting in the short run
to increase the name of the venture familiar among the people. The advantage will be taken from
this to input the blue ocean strategy and retain the consumer as our permanent base.

Future is uncertain so, in the long run, the condition can be different from now. But one thing is
clear that if the customer can be retained properly then any challenge can be faced. And the more

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orders will be generated in the future. The more broaden areas can be covered through the all-
around effort in the celebration management. Here, a venture will serve the users with a powerful
hand and decorating tools at a lower unit price as per the increment of orders per day.

Porters Five Forces

1. The threat of Substitute: There is the low threat of substitute is there because others indirect
competitors are large scale firm. Here, we are targeting the niche and providing one-stop service.
Currently, none is giving this service that we have introduced through the one-stop partner of
celebration. So the idea of celebration management is in such a small scale that will not allure the
big competitors.

2. The threat of New Entrants: In the industry of celebration management, the Threat of New
Entrants is high. This is because it is an untapped market, expected growth is high so new firms
will most probably like to enter the target market. So this is the right time to penetrate the market
and put the entry barrier through capturing the market share and big investment.

3. Rivalry among Existing Firm: As there is no firm who has been currently serving the niche
customers. So there is no rivalry. There is currently no firm providing such services and event
management firms those exists, provide or arrange large scale functions.

4. Bargaining Power of Suppliers: Here, the Bargaining Power of Suppliers is medium because
our key partners will be charging at a discount level. The partners will be Restaurants (cake,
reservation, food supply), Gift Shop (Offline: Almas, Aarong and Online: Daraz, Pickaboo etc),
Decoration Material Suppliers. They will be our celebration partner and will charge according to
the price list.

5. Bargaining Power of Buyers: The bargaining power of Buyers is medium as the idea is unique
to serve and people will care less to some additional charge that has been asked after the service.
So the business has the potential to earn much on per order.

PESTLE analysis

Political factors – The red tape problem has been found everywhere in the world that decreases
the prudence and the hunger of building the business unit by the young soul, but the overall
political condition is in our favour as the business is in the form of the partnership business. So

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the finished product can be available for the customer quickly with very low risk. Economic
factors –The market is still in the introduction period and the growth rate is still high. The
inflation rate is not that big in percentage in the economy and this will benefit us to cut down the
cost. Social factors –The big opportunity for the market has been the mind and cultural shift that
has been performed by the consumers towards the idea and that behavioural shift has been a
boon for the market demand. Technological factors – The technological support will help the
company to turn this in the automated order placing and feedback giving system where the fewer
people will be needed in the management and in the long run it will serve more users. But
initially, we need to use this support in the warehouse maintaining problems and the total quality
management (TQM). Legal factors- The trade restrictions are not available in the business as the
trade license has been issued. Environmental factors-The point to be clarified here is that the
business has been following the ethics and rules of not violating any environmental pollution
rules. That will be a big help to save the tax exemption and get the trust of the consumer's mind.

Industry Structure

The business idea is going to be the participants of the fragmented market as the idea in new and
the market is young and at the same time, it has been untapped. The targeted marketplace of
celebration management which has no business organization that can exert enough influence to
move this industry in a particular direction.

Economics of Scale: The Economies of scale refer to reduced costs per unit that arise from the
increased total output of a product. Here, a venture will serve the users with a powerful hand and
decorating tools at a lower unit price as per the increment of orders per day. The more orders will
help us to buy the materials and making the orders for gifts easier and at a lower cost.

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 Figure 2 Economies of Scale

Distribution Channel: The business has been evolving in the cities initially and for that, the
distribution channel will be available through the deal with ‘rent a car’. And the Mobile app:
URCM, Website: URCM, Facebook Page will be available to give the order in online and for
direct order, there will be the availability of the Campus Ambassador.

Product Differentiation: The product that we are offering for the 2 types of segmented
consumers.

 Friend’s Birthday celebration & date arrangements

 The celebration of Anniversary and Special Get together
The service differentiation of this product is to lessen the hardship of arranging the perfect
celebration. The value proposition is ‘Work-Personal life conflict & hassle to arrange the quality
time with friends, ultimately, leak bitterness. So we are here to take care of your bindings’. As no
available substitute is there, so there is no chance to the late mover to replicate the business idea
after creating the customer base being the first mover.

Market Analysis
Market Segmentation and Target Market Selection: We segmented customers based on
demographic characteristic: Age

Target customers' age: 16-65 years old

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Further Segments: Age: 16-27 years old (students): Friends' birthday celebration & date
arrangement.

Age: 27-65 years old: Celebrating birthdays (Spouse, kids, parents, friends), celebrating the
anniversary (own, parent's), other (special dinner etc.)

Also, people who are living in the urban area will be our main concern. So considering the facts,
the size of the target customer is 3.58 crore (based on the age structure and urban people which is
35.8% of total population) (indexmundi). Since in the era of digitalization, people are concerned
about hassle-free life, the growth prospect of the target customers is sustainably positive.

Marketing Plan
Service: We want to celebrate our special days or special day of our beloved ones but we do not
sometimes the time, sometimes we are in distance to make the celebration possible. If we have
such a service, it will make our bonding strong. One of our key activities- celebration
management services that include arranging gifts, decorating, restaurant table reservation etc.
makes our celebrations much easier.

We frequently celebrate our friends' birthday but it becomes difficult to divide responsibilities
among friends which sometimes ended up in pain to make the arrangement of the birthday
celebration. So existing of such service like one-stop reservation and celebration management
service will be beneficial to solve the work-life conflict.

Also nowadays we regardless male or female are career oriented (most of the cases), living in a
nuclear family is always busy and sometimes forget our loved one's birthday, anniversary etc.
which ultimately leads to a bitter experience in life. Introduction of such a service can strengthen
our social life. The important feature of the service: connecting the dots of micro-level
celebrations provides the benefit of solving the work-life conflict.

Customers: People who are aged between 16-65 living in the urban areas are the potential
customer base which is a total of 3.58 crore people in numbers (indexmundi). Both male and
female are the target customers who belong to the middle-income class to upper class. Students,
people with various occupations i.e. businessmen, service-holders, lawyers are the probable
service takers. The most important group of customers are students and people involving in the

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various profession. Since our business belongs to the hospitality industry, the probable service
takers are so important factor to us.

Competition: Currently in our country, there are no event management firms that provide
management services on small scale for micro-level celebration. So there’s no direct competition
but indirect competition does exist. Foodiez.com which provides service of online table
reservation is an indirect competitor of service. Also, there are big event management companies
i.e. Star Events, Event City, Shopnoghuri, Lovious, ZARA Event and their main services are
related to organizing big programs like

i) Corporate programs
ii) Employee meetings
iii) Wedding planning
iv) Big birthday parties, marriage anniversaries etc.

But they do not provide event management services in small scale for micro-level celebration.
These indirect competitors are important in a sense that if they can discover this niche market or
after the introduction of our service, if they can come up with better planning, then this will be
threatening to us.

Pricing: Service provided to 16-26 aged people: 30 orders execution on average each month.
The price range of these orders: 2500tk- depends on the client's expectations and customization
of order.

Service provided to 27-65 aged people: 15 orders execution on average each month. The price
range of these orders: 5000tk-depends on client's expectations and customization of order.

Considering the cost of food arrangement, gifts arrangement, decoration, and customized
demand, and the number of people gatherings, these estimated price ranges are set. This pricing
is an important factor but not as important as probable customers will take their decisions mostly
based on it. Prevailing of this fact, service takers always want to pay the reasonable and
justifiable price for the service.

Promotion: In the aspect of promotion, we rely on social medium and word of mouth mostly.
How to reach us? Well, there are certain ways.

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 i) Mobile App: URCM
ii) Website: URCM
iii) Our Facebook page and Instagram
iv) In Special Case: Meeting.

Operational Plan
Production: The nature of our business is linking the bridge by providing service which does
not require any production of its own. We will receive orders two days before the celebration in
order to arrange everything to make the celebration better and flawless. We will be the
middlemen between the gift retailers and clients. We will work here based on contracts and will
also a source of price comparability.

For Restaurant Reservation, we will have contracts with restaurants and be the medium of price
and menu comparison and reservation. So in the case of gifts and reservation, we are the medium
but for celebration management, we are the main body.

Location: To minimize the cost by following the strategy of BOOTSTRAPPING, we will not
have physical office initially. We will conduct our operation through virtual communication.
Later if required, the office of the business will be established in the Lalbagh area.

Legal Environment: Since the legal form of ownership is Partnership business initially, the
following papers are required:

i) Proposed partnership name;

ii) Partnership agreement duly notarized;
iii) Form I;
iv) Particulars of the partners;
v) Residential address of the partners;
vi) Details of the registered address for the partnership; and
vii) Percentage of the share of profit of each partner.

The partnership deed and filled up Form I should be filed with RJSC. These documents will be
reviewed by the officials of the RJSC. When the officials are satisfied with the points stated in
the partnership deed, s/he will record an entry of the statement in a register called the Register of

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Firms and issue a Certificate of Registration. Also, we will enter into contracts with key people
of our partner service i.e. restaurants, gift shops etc.

Personnel: The Human Resource will be our main resource and competitive edge. Since we are
in the hospitality sector, humans will be our strength. The founders of the firm are specialized in
specific sectors required for the firm and further 5 people who agreed to join have special
knowledge regarding celebration management. In future, depending on circumstances we will
recruit people after proper training.

Inventory

We will have the inventory of things required for decoration: Neon light, nets, sheets, and shapes
etc. which will be reusable.

We will need the inventory of things: Balloon, Flowers etc. which can be used only once.

We will be the middlemen between the gift retailers and clients. We will work here based on
contracts and will also a source of price comparability.

For Restaurant Reservation, we will have contracts with restaurants and be the medium of price
and menu comparison and reservation.

Suppliers

Key partners are i) Restaurants with medium to semi medium price range (exceptions exist based
on customized order)

ii) Online Gift Shop: Daraz.bd, upoharbd.com, Almas, Aarong

iii) Contracts with the Whole seller of Flowers

Management and Organization:

We have Organizational Prowess as one of us, SIS already worked how to organize function
and has direct experience related to logistic another SS is a CBA and has knowledge about
accounting process and knowledge. While NN has completed one year course on website
development and graphics design, NNL is prompt in decoration and BP is expert in excellent
communication skill.

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Also, our five friends have agreed to work with us among them three are from three different
private universities and have direct experience regarding arranging functions.

In the aspect of internal control, one of our founding members will set the control system while
another will check the system and both will be supported by different assistants. The
organizational chart of our management team looks like this:

FIGURE 3: ORGANIZATIONAL CHART OF URCM

Our founding members will operate the business initially. And if required after some point, the
employees for the skills gap will be hired.

Technological Support: Since we will be an E- Celebration our software, website and app is
very crucial and for their maintenance there will always be a maintenance team headed by an
expert.

Financial Projections
Before jumping into 5-year elaborate financial assumptions, we have determined the amount of
total start-up fund which is 22 lakh, Taka.

ICO: Mobile app development: BDT 12 lakhs

Website development: BDT 5lakhs

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 Net working capital: BDT 3lakhs

Extra reserve or uncertainties: BDT 2lakhs

Total Initial Requirement: BDT 22lakhs

SS & NN will give 6.5 lakhs each while others will give 3lakhs each.

Now the detailed financial projection is provided here in the hyperlink below:

..\Desktop\Financial-Projections.xlsx

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Bibliography
indexmundi. (n.d.). Bangladesh Urbanization. Retrieved 2018, from indexmundi:
https://www.indexmundi.com/bangladesh/urbanization.html

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