Business Pln

Pizzri
Submitted to:

Dr. Syed Mehmood Hsn

Submitted by:

Syed Ahsn Rz Bukhri

Roll No:

2014/2015-EE-70

Course title:

Orgniztionl Systems

Deprtment of Electricl Engineering

N.E.D University of Engineering nd
Technology

Tble of Contents
Executive Summry................................................................................2
Objectives..............................................................................................3
Mission..................................................................................................3
Keys to Success.....................................................................................3
Compny Summry.................................................................................3
Strtup Summry.................................................................................................... 3
Compny Ownership............................................................................................... 3
Compnys loction nd fcilities............................................................................6
Products................................................................................................6
Mrket Anlysis summry.......................................................................6
Strtegy nd implementtion summry...................................................6
Break-even analysis...............................................................................7

Executive Summry
The Mlir district of Krchi hs experienced explosive growth the pst three yers. Over
25, 00,000 residents live in the Mlir district re. Are businesses re slowly
exploiting this lrge consumer bse. Pizzri is opening new pizz delivery service
tht will focus on the Mlir district re.
Currently, the re's closest pizz resturnt tkes up to 45 minutes to deliver pizz. Pizzri
will cut the delivery time to no more thn 25 minutes. Pizzri will offer better pizz, t
lower price, nd will deliver it hot to the customer's door fster thn the closest competitor.

1.1 Objectives
3

Cpture the mjority of the pizz delivery business in the Mlir district re.
Offer our customers superior product, t low price, nd provide customer service tht
is second to none.

1.2 Mission
Pizzri's mission is to offer residents of the Mlir district the best pizz delivery service
in the city.

1.3 Keys to Success

A superior product tht will promote customer loylty.

A business loction tht will ssure tht the pizz will be delivered quickly.
Delivery people tht hve gret customer skills.

Compny Summry
Pizzri is new pizz delivery service strted in the city's Mlir district
re. Ahsn nd Hris owner of Pizzri, hs seven yers of experience in
the resturnt industry. His focus is to stisfy the customer's demnd for
qulity pizz tht is delivered quickly with smile. Pizzri will serve
seven mile re with over 25,000 residents. Overhed will be kept low so
tht Pizzri's prices will bet the competition. Delivery people will use
their own vehicles so the business will not hve to purchse delivery
vehicles.
2.1 Strt-up Summry
The strt-up cost of Pizzri will consist primrily of kitchen equipment.
Mr. Ahsn nd Mr. Hris will invest Rs.50,00,000.
2.2 Compny Ownership
Pizzri is owned by Mr. Syed Ahsn Rz Bukhri nd Mr. Hris Hssn
Prch.
Strt-up Requirements
Strt-up Expenses
Legl

Rs100,000
4

Kitchen Inventory

Rs.500,000

Delivery Pper Products

Rs.300,000

Lesed Kitchen Equipment

Rs.20,00,000

Insurnce

Rs.100,000

Rent

Rs.100,000

Promotionl Signs for Delivery Crs

Rs.200,000

Expensed Equipment
Business Sign
Other
Totl Strt-up Expenses

Rs.0
Rs.400,000
Rs.0
Rs.37,00,000

Strt-up Assets
Csh Required
Other Current Assets
Long-term Assets

Rs.500,000
Rs.0
Rs.800,000

Totl Assets

Rs.13,00,000

Totl Requirements

Rs.50,00,000

Strt-up Funding
Strt-up Expenses to Fund

Rs.37,00,000

Strt-up Assets to Fund

Rs.13,00,000

Totl Funding Required

Rs.50,00,000

Assets
Non-csh Assets from Strt-up

Rs.8,00,000

Csh Requirements from Strt-up

Rs.5,00,000
5

Additionl Csh Rised

Csh Blnce on Strting Dte
Totl Assets

Rs.0
Rs.5,00,000
Rs.13,00,000

Libilities nd Cpitl
Libilities
Current Borrowing

Rs.0

Long-term Libilities

Rs.0

Accounts Pyble (Outstnding Bills)

Rs.0

Other Current Libilities (interest-free)

Rs.0

Totl Libilities

Rs.0

Cpitl
Plnned Investment
Ahsan and Haris

Rs.50,00,000

Other

Rs.0

Additionl Investment Requirement

Rs.0

Totl Plnned Investment

Loss t Strt-up (Strt-up Expenses)

Rs.50,00,000
(Rs.37,00,000)

Totl Cpitl

Rs.13,00,000

Totl Cpitl nd Libilities

Rs.13,00,000

Totl Funding

Rs.50,00,000

2.2 Compny Loctions nd Fcilities

Pizzri will be locted t the L6 Market Gulshan-e-Hadeed Phase 2. This
mrket is the busiest nd provides esy ccess to our service re.
3. Products
6

Pizzri will offer wide vriety of Itlin style pizzs, s well s sods
nd fruit juices.
4. Mrket Anlysis Summry
The Mlir district is growing middle-clss re with 25,000 residents. A
mjority of these residents re fmilies of four or more. The verge
income for the re is Rs.38,000. The boom in the re is primrily in
response to new employment opportunities in the city's Mlir district
Industril Prk. Businesses tht trditionlly do well with this popultion
hve demonstrted the potentil for Pizzri. A neighbor of Pizzri,
Mgic Videos, hs been in opertion in the re for little over yer.
Mgic Videos is the closest video store serving the Mlir district re.
Their sles hve grown by 40% due to its loction nd the bsence of direct
competition in the Mlir district.
With continued growth in the re, opportunities to serve the Mlir district
residents will increse. The compny will sell predominntly to
individuls, but it will lso ccept some ctering jobs to individul prties
nd compny functions in the Mlir district.

Strtegy nd Implementtion Summry

Pizzri will use dvertising to promote the business. We will use the locl
Mlir district flyer to dvertise. In ddition, we will hire people to hold
signs t the corner of L6 mrket. We will lso use door hndle flyer
promotion throughout the Mlir district neighborhoods.
Our most importnt promotion will be done in conjunction with Mgic
Video. We will offer two for price of one video coupon with ech
purchse t Pizzri tht cn be used t Mgic Video. Mgic Video will
offer its customers Rs.200 off coupon tht cn be used t Pizzri.
5.1 Competitive Edge
Pizzri's competitive edge is:
Loction: Pizzri is locted in the hert of the Mlir district re
in the midst of L6 Market, Gulshan-e-Hadeed Phase 2 which is the
busiest area in Malir. The closest pizz resturnt to the Mlir
district re is fifteen minute drive. Pizzri cn deliver in hlf the
time of its competitors.
Low Overhed/Lower Prices: Since Pizzri only delivers pizz, its
prices don't reflect overhed demnds of trditionl pizz
resturnt.
5.2 Sles Strtegy
7

The sles strtegy of Pizzri is simple. First, offer the customer superior
pizz t low price. Second, mke sure tht pizz is delivered quickly.
Third, the delivery people must work to crete customer loylty.
5.2.1 Sles Forecst
The following is the sles forecst for three yers.
Sles Forecst
Yer 1

Yer 2

Yer 3

Sles
Pizz/Drinks
Rs.1,62,50,000 Rs.1,78,00,000 Rs.1,95,00,000
Ctering Income
Rs.14,00,000 Rs.18,00,000 Rs.24,00,000
Other
Rs.0
Rs.0
Rs.0
Totl Sles
Rs.1,76,50,000 Rs.1,96,00,000 Rs.2,19,00,000
Direct Cost of Sles
Yer 1
Yer 2
Yer 3
Pizz/Drinks
Rs.24,50,000 Rs.30,00,000 Rs.36,00,000
Ctering Income
Rs.1,40,000
Rs.1,80,000
Rs.2,40,000
Other
Rs.0
Rs.0
Rs.0
Subtotl Direct Cost of Sles Rs.25,90,000 Rs.31,80,000 Rs.38,40,000
6.1 Personnel Pln
The Pizzri will hve the 15 stff members who will mnge, work in the
kitchen nd deliver pizz on rotting shifts
Personnel Pln
15 Stff Members
Other
Totl People
Totl Pyroll

Yer 1
Yer 2
Yer 3
Rs.30,00,000 Rs.32,00,000 Rs.35,00,000
Rs.0
Rs.0
Rs.0
15
15
15
Rs.90,00,000 Rs.96,00,000 Rs.1,05,00,000

7 Brek-even Anlysis
Monthly Revenue Brek-even

Rs.12, 80,300
8

Assumptions:
Averge Percent Vrible Cost
Estimted Monthly Fixed Cost

15%
Rs.10,92,500