E.

Business Plan
Topic:
Online book shop for Management Department of
COMSATS.

Submitted To:
Madam Shamaila Jabeen
Submitted By:
Ali Ahmad Majoka 006
Muhammad Habibullah 084
Sharjeel Arslan 139
Section:
MBA-13C
Submission Date:
12th May, 2011

COMSATS Institute of Information Technology, Lahore

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Table of Contents:
Details Page numbers
Executive summary 01
Company summary 02
2.1 Company ownership 02
2.2 Startup plan 02
2.3 Company location 02
3. Product & Services 03
3.1 Competition 03
3.2 Sourcing 03
3.3 Technology 03
3.4 Future products & services 03
3.5 Office equipment 03
4. Market analysis summary 04
4.1 Market segmentation 04
4.2 Market needs 04
4.3Competition 04
4.4 Industry analysis 04
4.5 Industry participants 05
5. Strategy & Implementation summary 05
5.1 Marketing strategy 05
5.2 Sales forecast and programs 06
6. Web plan summary 06
6.1 Website marketing strategy 06
6.2 Development requirement 06
7. Management summary 06
7.1 Organizational structure 06
7.2 Management team 06
7.3 Evaluating weakness 07
8. Financial plan 07
8.1 Assumption 07
8.2 Projected Balance sheet & income 08
statement
8.3 Breakeven analysis 09

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Executive Summary

Internet marketing is getting more popularity in recent years due to promotion of social
websites. A large number of businesses are making their promotion through this
channel. Moreover when it comes to virtual business it becomes more effective to
promote your business through this channel.
The product/service we are going to offer is related to marketing and social community
setup. And name of our service business will be mgtsnc.com.pk. We will target students
and supply will be made from teachers and library end. Promotions will be made on
classrooms, website or university local magazine. The news about the daily deals will be

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spread on Facebook and tweeter as people encourage family, friends and others within
their social networks to so that everyone can get the offer.
The only two communities we are going to serve those are teachers and students. We
will provide books free with ease and students can save their maximum time by dealing
with us. Mgtscn.com.pk will also be an appealing channel for new startups we will
encourage other students to have their own business rather than getting employed. all
the products and services and marketing campaign has been discussed in the project.
We have no direct competitor till now so this will be a great opportunity for us to start
business and earn more profit by giving our target customer’s with the best quality a their
home steep. After success in this business we will expand this to all departments of our
university so that maximum students can enjoy benefits from our services. We will try to
retain a good number of customers through our marketing efforts. And the target
consumers for business will be the students of COMSATS Lahore. The costs to start the
business will not a huge as not more physical assets are required to start the business.
Financial analysis shows that this project will be more profitable for us. We can get
maximum by utilizing minimum.

Company Summary:

Company ownership:
We are three members going to initiate the project. All are students of business
administration. All have different backgrounds and specialization in studies. Following
table will show all information about us:

Name Current Specialization Work experience

Degree

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Muhammad Habibullah MBA Finance No
Sharjeel Arslan MBA Marketing No
Ali Ahmad Majoka MBA Finance No

Startup Plan:
We will make a website and get it registered. This website will carry information and
study related materials for both teachers and students.
Services and Location:
We will serve the students of management sciences department. We will provide easy
access to all recommended books which they can’t get from any other website. That
types of websites require subscriptions for any download while on our site these books
will be free for any one.
We are going to serve niche market of COMSATS students so we will operate within
boundaries of our campus.
Size of Business
Our business is a small business because it is privately owned and operated, with a
small number of employees and relatively low volume of sales.

Products and services:

Services
We will give service to both teachers and students. All recommended books will be our
products and easy access to those books will be our services. We will update our
website after every week. Students have to register on website that is totally free after
this they can enjoy free downloading of contents.
Competitors
When we see that rivalry in this type of business we find that at this point of time there
are no competitors in market. So, we will enjoy the first mover advantage.

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Sourcing:
Our source will be:
HEC online library
COMSATS library
Few teachers’ domain to access the international libraries
Contact to library
Technology:
We will use latest technology to maintain our stock, inventory and sales and for the best
provision of services to our customers. We will build user friendly website on which
students can give their feedback also.
Future products and services:
We will expand our product line to more departments like computer sciences, electrical
department etc. InshaAllah
Office equipment and personnel
We will use some of the following equipment’s that will help our business to maintain the
quality:
 Server computer
 Three interconnected PC’s
 Broadband connection
 Generator
 UPS

Market Analysis Summary

Segmentation
Basically the segmentation for this business will take two types.
 Demographic segmentation
 Location base segmentation
In demographic segmentation mainly our concern is to look the characteristics of the
students. We want to build a platform for study where students can share their

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knowledge, experiences to others and can get any book on any topic. We will target
customers of age 20-35 years. In this segmentation teachers are also included.
Other segmentation base will be location. So, we will operate in campus area only
initially.
Market Needs:
Students now a day wants to save their time and get maximum satisfaction from
products and services. On other websites they have to ay subscriptions which may be a
costly work for them so, we are here to provide hem free and easiest access to their
desired book.

Industry Analysis
Future outlook and trend
Internet usage in Pakistan is growing day by day. So future of internet and E-commerce
related business in Pakistan is looking bright. Moreover when we see the economic
conditions of Pakistan people have fewer resources to purchase the books from markets
and they have no free access to books. we will provide benefits to both the students and
teachers.
Competition patterns:
Internet business is a field that is growing with a rapid speed in most recent years.
Almost every business in the developed country is now operating on the internet.
Moreover the trend of virtual business has become very common now days. When we
see the statistics of internet users in recent years the number of internet users has been
increased. So the trend clearly suggests that virtual business market is still available in
Pakistan.
Industry participants:
Different companies are offering this service but they are operating on large scale. we
will do our business at very lower scale..

Strategy and Implementation Summary:

Marketing strategy:

Pricing

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We will charge no price to customer, infact we will play a role of an intermediary, so we
just give deal to customer at discount on behalf of seller. We will generate our profit
byusing free domain name and password and get free books and we will place those
books on website and we will sell them on very nominal prices which a student may
afford easily
Distribution
As we have not particular suppliers of our products, we will do our business virtually so,
we need no specific distribution for our business. Infect we will just need an office where
we will make our setup of business. We will easily manage our orders and business
there.
Promotion
We will use some promotional tools for our business to boost up our sales and market
share. Some of them are as follow:
We will do advertisement through different channel like; brochures, pamphlets,
messages, web, banners, etc.
We will also take edge by word of mouth tool. Through our social network we will get
maximum interest and attraction of customer toward us.
We will maintain our quality in front of students, so that they will become one of the
strongest promotional tools for us.
We will contact with every teacher that they create awareness about our business that
students can get free books which may not be free from other sources.
We will personally visit class rooms.
Sales forecast:
We have assumed that we will sell at least 50 books in initial stage per month. Gradually
we will move higher sales.
Sales programs:
There will be easy procedure for customers that they can select and by just clicking on
specified item they can get it in their campus area.
Strategic alliances:
We will make alliance with COMSATS Library that they will provide us free books & we
can serve the whole university departments.

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Web plan summary:

Marketing strategy:
We will use some promotional tools for our business to boost up our sales and market
share. Like:
We will do advertisement through different channel like; brochures, messages, web,
banners, etc.
Development requirements:
We will update our site according to students feedback on every week. Then we will
move ahead and we will make this as our core competency which our any competitor
may not provide. We will hire software and web developers who will keep an eye on
each and every aspect of website and will make continuos efforts to make it more
attractive and easy.

Organizational Plan

Form of ownership
Mainly this business will be run under partnership and all the authorities, duties and
responsibilities will be mentioned under the partnership deed. Moreover this will be
registered partnership and people will have the trust on the business on the behalf of
registration.
Management Team
Management team will be consisting of 3 members. The top authority will be CEO who
will manage all the functions of the business and overlook the day to day authority and
all the other members will report to CEO. CEO will have the authority to conduct the
meeting at any point of time by giving a notice to other members and he will conduct
meetings with outside people. The main task of the business will be conducted by
marketing manager. As this business is depend on the marketing efforts. Moreover the
marketing manager will overlook the marketing personnel who will be appointed to
advertise deals on different social websites and also overlook the website security
measures and change day to day deals. Finance manager will overlook the cash flow
and he will manage the commission ratio.

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Evaluating Weakness:
Cybercrime: Cybercrime is the main weakness for this business. So internet
security regarding virus and web hacking is greater challenge.
New Technologies
As far as the internet technology is concerned it is related to break through technology
that is brought into act once after a long time. So the technological advancements and
change in internet technology directly is not a risk for this business but there are indirect
challenges and risks are there. Like mobile marketing, telemarketing and personal
selling.

Financial Plan
Assumption
As we need no physical assets so the cost for starting this business is relatively low.
There are is an assumption
 The web server will be acquired as there is fool proof security for the data
stored on rental space acquired

Pro forma income statement

This income statement is for the month in which the profit is generated.

Income Statement
For the month of June 30, 2011

Revenue Rs. 25000

Less: Cost Rs. 10000

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 Gross profit Rs. 15000
Less: Operating cost Rs. 5000
Net profit Rs. 10000

Pro forma balance sheet

Balance Sheet
January 1, 2011 to May 1, 2011
Assets
Cash 13000
Computers and equipment 35000
Accounts Receivable 5500
Total Assets 43,500
Liabilities
Accounts Payable 10000
Notes Payable
Payroll 10000
Capital 33500
Total Liabilities & Equities 43,500

Breakeven analysis
As the size of the business is small and also this business is not a production business.
This business is all about marketing and the only cost that we have to bear on initial
stage is the advertisement cost. So at the starting point push strategy will be followed
and the promotion cost will be more and customers will be attracted to the business.
First 6 months of the business will be the break even. So profits will be expected to
generate after 6 months.
Cash Flow Summary

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