Applied Economics-Sir Muzamil

APPLIED ECONOMICS ON SMALL BUSINESS IN PAKISTAN
Powerpoint Templates
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Small Business
Def
A business that is privately owned and operated with a small numbers of employees and relatively low volume of sales
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ADVANTAGES TO SMALL BUSINESS

1.Started at vary cost and also operates on part time bases. 2.Many people desire to make their own decision(dont like A person who dictates them.) 3.How ever they have to work very long hours considering that their consumers are their bosses.
MARKETING THE SMALL BUSINESS

Common Marketing techniques are: Word of mouth Yellow pages directories Internet and other channels
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Sources of funding
Self financing Grants Personal savings Angel investors Banks Loans from friends and family
Problems faced by small business

Under capitalization Dependency on larger business or the influence by large businesses.
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INTRODUCTION
PRINTING AND PUBLISHING
Def:
Printing Publishing is the process of production and dissemination of literature or information the activity of making information available to the general public.
Powerpoint Templates Page 5
INTRODUCTION OF COMPANY
Owner :Mr.Zubair Started business in 1997 Business operations are expanded in Sialkot, Islamabad Lahore and Quetta.
Valuable clientage:
PIA SAPS PAF Air Eagle PAFWA Private corporations Universities
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HOW HE START THE BUSINESS Capital invested in business was Rs.14,00,000 Market scanning
OPPORTUNITY COST
MR. Zubair opportunity cost was not to go abroad.
IMPLICITCOST
The income which in real he did not earn but this Income is his forgone income of choosing not to go England.
EXPLICIT COST
MR. Zubair explicit cost is the amount which he paid for acquiring the resources to start the business Powerpoint Templates Page 7
RESEARCH METHODOLOGY Qualitative element Brief conversation with operational manager and the owner, focusing their financial plan ,sales,H.Rof their business. Quantitative element Based on questionnaire Objective is to measure the contribution of small business towards economy
Target population
It includes employees of business and the owner.
Sample Selection
Non probability convinces sampling is used.
Sample size
30 respondents
Research instrument construction

A blend of both qualitative and quantitative questions are used.
Secondary Data
Comprise of research papers and collected through business feasibility study.
Primary Data
Questionnaires, Interview, Observational and situational Powerpoint Templates analysis Page 9
PURPOSE OF STUDY
Understand problems, risks and economics techniques to start a business in perfect market.
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ORGANIZATIONAL PLAN
Form of business
Sole proprietor
Decision criteria
Free to take decisions
Process of providing service

Design Delivering
Management and Personal

94 employees
ORGANIZATIONAL HIERARCHY
Owner
Secretary
Manger operations Manager H.R Manager finance
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PRODUCT MIX
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TARGET MARKET
Area of capital and Rawalpindi
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COMPARISON BETWEEN PROJECTED DEMAND AND ACTUAL DEMAND
YEAR
PROJECTED ACTUAL DEMAND DEMAND 8000 12000 8670 4368
2010 2012
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DEMAND FROM BUSINESS TO BUSINESS MARKET INCLUDES

Large size business segmentation includes 10-150employees,with the salary ranging from Rs.300,000-500,000 and can afford printing/publishing expenditures ranging fromRs.150,000-450,000
TARGET INDUSTRIES INCLUDE

Retail Chain Store Construction Air Lines Health sector Universities Property Management
FOR BUSINESS TO CONSUMER MARKET INCLUDES

Demographic Factors
INCOME LEVEL Zubair press target the rich consumers and large companies providing with luxury services. He also focus on the usual or general service that appeal directly to consumers on low Powerpoint Templates incomes. Page 17
SEGMETATION
Geographical segmentation Psychological segmentation INDUSTRY ANALYSIS Growth rate in printing industry Imports of printing US$ 26.437 machinery & million Equipments
No. of Offset Printing Presses
Over 20,000 estimated

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ECONOMIC ANALYSIS
A quick view on main glimpse on economic position of Pakistan
Real GDP Consumer Price Index Per Capita Income (in terms of purchasing power) 4 13.85 2860$
OVERALL MARKET ANALYSIS 70% market is owned by sole proprietors A/c to new trend business is promoted online also.
PRICE
Pricing objectives of Hedali printers are as follows: Increase market share Match competitors price Survival
PRICING STRATEGIES OF HEDALI PRINTERS Penetration Pricing Value Based Pricing
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PRICE STRUCTURE
Name of Price service Screen 550-700 printing Electro 600-700 printing Letter 300-400 press Powerpoint Templates
Markup 25% 25% 25%

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DISTRIBUTION CHANNELS Direct selling
Zubair press Supplier branch
end user
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COURIOUR SERVICE
ONLINE ORDER
COMPANY BRANCH
SHIPMENT
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FINANCIAL PLAN
Equity structure
Name Mr.Zubair Capital investment 14 lac
Per order cost was Rs.1460
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BREAKEVEN ANALYSIS
Fixed cost Variable cost per unit Selling price/unit Time period
14,00,000 1460 1600 Yearly
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Secondary data Analysis

CONTRIBUTION TO THE GDP OF PAKISTAN IN 2010(Sept)
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Trend of sources of funding for small business

(PREFFERED
SOURCE OF FINANCING)
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FLASH BACK ON SMALL BUSINESS CONTRIBURIONTOWARDS ECONOMY OF PAKISTAN.

3.2 million business units in Pakistan. 33% to the GDP. Rs.179 billion earn from exported items of small business. 35% in manufacturing value added .
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PRIMARY DATA ANALYSIS

Survey 01 Management Turnover QI.For how long do you work for company?
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Q2.Job market competitiveness of your salary?
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Q3.Job itself is-----------?
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Q4 The two training programs most important to your development over the next years would be?
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Q5 .Over all how satisfied are you with the quality of client services provided by your department?
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SURVEY 2
Answer by Entrepreneur
What are the most significant challenges your business is likely to face in the next five years? ---Shortage of paper, and poor economic conditionsAre there any specific problems affecting small businesses in your sector?
Cost of labor is high day by day and adversely affected by electric breakdown
Overall which is the biggest obstacle in the success of business? The economy Obtaining finances Cash flow Keeping up with new technology Competition in market Taxation, business rates Ans: The economy
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Has your business adversely affected by changes in the tax system?

Tax on stationary i.e. GST tax is remove but it does not affect us very much.
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POTERS FIVE FORCES ANALYSIS

THREAT OF NEW ENTRANT BARGAINING POWER OF BUYER RIVALRY AMONG COMPETITIORS SUBSTITUTABILITY BARGAINING POWER OF SUPPLIER
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COMPETITIVE GRID
Competitive Forces Threat to industry Profitability LOW MEDIUM HIGH Threat of new entrants
Bargaining power of buyer

Rivalry among competitors
Substitutability
Bargaining power of supplier
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BCG MATRIX OF COMPANY

M A R K E T G R O W T H
Star
Print on demand
HIGH
Question mark
Digital Printing
Book Publishing
LOW Cash cow
Dog Recycled material
Binding, Custom Print
HIGH
Powerpoint TemplatesSHARE MARKET
LOW
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CRITICAL RISK ANALYSIS

Management Risks In this risk company realize that there may be any dispute in management team due to any unforeseen reasons which may results to terminate any of the members. Remedy: In this case when any of the members of the management teams leaves the firm he is not entitled to use the name of firm .He cannot start the same business with any other name.
Financial Risks Company realizes that in case of shortage of capital which is reserved for every department differentially which causes the business to suffer. Remedy: To avoid this risk the company made certain clauses that they made a back up from the help of retained earnings which is now in amount of approx RS.23, 68,000 to use this capital when necessary.
EXIT STRATEGY
Sale of Business Merger
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CONCLUSION
Not enough machinery. Poor maintenance of plant. Digital Printing is a question mark Non effective promotion of company.
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RECOMMENDATIONS
Implement new machinery which is of advance technology.
Discount should be offer to universities and students. Effective Marketing.
Take effective steps for digital printing

To increase DOP they should give free delivery in an area of 30-40 KM.
REFRENCES
www.einfopedia.com/per-capita-incomeof-pakistan.php www.quickmba.com/strategy/porter.shtml www.businessballs.com business/selling
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THANK YOU
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Applied Economics-Sir Muzamil

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APPLIED ECONOMICS ON SMALL BUSINESS IN PAKISTAN

ADVANTAGES TO SMALL BUSINESS

MARKETING THE SMALL BUSINESS

Problems faced by small business

Research instrument construction

Process of providing service

Management and Personal

COMPARISON BETWEEN PROJECTED DEMAND AND ACTUAL DEMAND

PROJECTED ACTUAL DEMAND DEMAND 8000 12000 8670 4368

DEMAND FROM BUSINESS TO BUSINESS MARKET INCLUDES

TARGET INDUSTRIES INCLUDE

FOR BUSINESS TO CONSUMER MARKET INCLUDES

No. of Offset Printing Presses

Over 20,000 estimated

PRICING STRATEGIES OF HEDALI PRINTERS Penetration Pricing Value Based Pricing

Markup 25% 25% 25%

DISTRIBUTION CHANNELS Direct selling

Zubair press Supplier branch

Per order cost was Rs.1460

14,00,000 1460 1600 Yearly

Secondary data Analysis

Trend of sources of funding for small business

FLASH BACK ON SMALL BUSINESS CONTRIBURIONTOWARDS ECONOMY OF PAKISTAN.

PRIMARY DATA ANALYSIS

Q2.Job market competitiveness of your salary?

Q3.Job itself is-----------?

Has your business adversely affected by changes in the tax system?

POTERS FIVE FORCES ANALYSIS

Bargaining power of buyer

BCG MATRIX OF COMPANY

LOW Cash cow

Dog Recycled material

Binding, Custom Print

CRITICAL RISK ANALYSIS

Take effective steps for digital printing

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