Business economics

Name: - Ankit Kumar Dak

Roll No.:- 340648
Division: - F
Batch: - 34TH
Subject: - business economics
Topic: - prepare a business plan
Assignment no. : - 2

Introduction: -

Coffee Culture
Two friend were started a business after completing their PGDM
degree. They decided to open a coffee industry. The
authoritative structure is extremely basic. Ankit Dak will be in
charge of the steering, appropriation administration and
conveyance frameworks. Amit babel will be in charge of client
administration, bookkeeping, shipping and the general
organization of the business. Together they will be in charge of
item choice and deals and promoting.
I have prepare a business plan for my enterprise are as
followed: 1.) Identify the product: - its a new world where everyone
people having a different choice. Basically coffee shows a
different status, and health conscious people were like to
have coffee. So they decided to sale the coffee beans in
the Indian market at small level but after few year they
will increase their market strength.
2.)
tal structure: -

Particular
Land or warehouse
Labour
Raw material
Cash in hand
Total

Capi

Amount (rupee)
35,00,000
1,00,000
25,00,000
6,00, 000
67,00,000

The enterprise having much more cash because in coffee firms

they have to store the high quantity of the coffee beans. In this
time coffee is more consumable product so that the company
dont know how much demand are required in the market. And
in coffee firms the labour cost will be less than around 50 to 60
people. This are element shows my capital structure.

3). Swot analysis: Strength: - Positive wellbeing dangers are clear drivers
of utilization, so this is uplifting news for coffee stores and
coffee store establishments, as buyers are more joyful to drink
more energized refreshments. Questions postured to shoppers
about the medical advantages of drinking coffee and on the off
chance that they suspected that coffee is useful for their
wellbeing are both up essentially since 2005. More individuals
now trust that there are medical advantages to coffee and that
it is useful for their wellbeing.
Weakness: - Similarly as with developing any harvest there
are erratic components that will influence the creation of the
product and along these lines the cost of coffee for the coffee
franchisee. The coffee plant is particular about developing
conditions. Coffee trees can't endure climate that is excessively
hot or cool, or excessively wet or dry.
Opportunity: - The neighbourhood caf additionally gives a
warm, quiet environment in which individuals come to mingle,
unwind or even make up for lost time with work. This
maintained development in the business indicates a strong
open door inside the establishment industry.
Threat: -A typical risk in any industry is a financial subsidence,
which lessens customers' utilization. We are presently in a
subsidence and this has lessened income in organizations,
paying little respect to the part. It is not just the espresso
business that has felt the impact of a more cash tight shopper
base.
Strategy for functional department: - This are the
functional department for a coffee industry: 1. Manufacturing and development
2. Marketing

3. HR
4. Finance
1. Manufacturing and development department where
the product are consumed and developed. In this
department what fixture are required
In product and how the design and packaging will attract
the consumers is decided by the manager.
2).Marketing: - coffee culture strategy will be based on
communication coffee culture value to be targeted
segments. This will be done through a variety of methods.
Market will be depend on the price, place, promotion and
product. This element decided the industry life cycle.
3).HR department: -HR department gives manpower
to the firm and
chose right person for right job. HR main
work is recruiting the people and searching a new talent for his
firm or industry.
4). Finance: - in the start-up business the main
department is the finance department, this department solve
the financial problem of the industry and gives a big amount
of investors and arrange the outside money from the market.
Financial department also shows the profit or loss of the firm
or industry.

Analysis of breakeven point & payback period: We have estimate the selling price of the product is 2000
rupee and fixed cost will be 375000/- rupees per month
and average variable cost is 1800 rupee so contribution
margin per unit is 200 rupees. So we have analysis the
coffee culture industry sale 1875 product so we get the
breakeven point.

Breakeven point= TFC / P - AVC

So here, BEP unit = 375000 / 2000 1800 = 1875
Breakeven sales= 1875*2000= 37,50,000 rupees.

Special focus on the increase the different type of cost

in long and short run strategy for cost minimization: In long run: - long run expenses are gathered when firms
change generation levels after some time because of expected
monetary benefits or misfortunes. Over the long haul there are
no altered components of generation. The land, work, capital
products, and business all fluctuate to achieve the long run cost
of delivering a decent or administration. The long run is an
arranging and execution organize for makers.

In short run: -Short run expenses are aggregated

continuously all through the creation procedure. Settled
expenses have no effect of short run costs, just factor expenses
and incomes influence the short run generation. Variable costs
change with the yield. Cases of variable expenses incorporate
representative wages and expenses of crude materials.

Future planning and scope: - for future planning the coffee

culture should be modified their long term problem and also
increase their product supply in overall India. This a great
achievement for the coffee culture start with short run and in
future coming with the long run cycle industry.

Conclusion: - This assignment learn how business plan were

prepare and how functional department works in an industry.
And also learn how much time taken by the industry to achieve
the breakeven point. In a short run industry both variable and
fixed cost will be effect the short run industry and in a long run
industry both cost are not affect the industry.

THANK YOU.