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1. Executive Summery
The new furniture company is Pacific furniture. It will start in 2013 with
quality full furniture in various designs. We take a big plan which is for five
year. And we hope we can establish our brand within 3 years and till that time
our profit will reach 1.5 crore tk. We hope we can earn 1.5 laks within one
year. We produce and sale five types of furniture like bed sheds, sofa, dining
table etc. We use a big amount for our establishment in advertisement and
promotion. We spent more than 10 lak taka for advertisement. And for that
we hope we can establish our brand name within three year. Our
advertisement main area is tv and radio channels. We launch new product on
4.5 year later when our company will stay in maturity stage of product life
cycle. Our main target area is Dhaka, but after this we will cover our country.
We promise that we will provide quality full furniture for our customers. 1
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2. Description of Bangladesh Furniture Industry
The Bangladesh furniture industry is one of the most promising growth sectors
with high export potential. According to a Household Income and Expenditure
Survey of 2005, the domestic consumption growth rate is around 20% and
export markets are almost entirely untapped. There are approximately 40,000
furniture SMEs all over the country, employing around 180,000 people,
turnover is in excess of BDT 100b (GBP 1b). Currently dominated by
thousands of small workshops, the furniture sector is in a transition phase
towards industrialization. Simultaneously, there is a small but growing
segment of larger firms who are gradually entering the export market.
Nevertheless, the furniture sector is struggling to reach its full potential due to
various factors in habiting its growth. Inadequate supply of production
technology and consultancy services, limited access to quality inputs, absence
of skilled workforce and limitations in local and international marketing are
some of the main problem areas. The biggest challenges for export include:
government recognition as a potential export sector, limited export order
processing facilities, lack of credibility in international markets,
uncoordinated association activities and absence of effective initiatives for
facilitating foreign direct investment.
Leading companies of Furniture Industry
Bangladeshi leading furniture companies are given below-
Akhtar furnisher’s ltd.
Aftab furniture’s ltd.
Otobi ltd.
Hatil furniture ltd.
Business Description
Pacific furniture will launch on year of 2013. Pacific Furniture manufactures
basic, durable home and office furnishings. Principal among these is a line of
hardwood desks, dressers, bed sheds, dining tables, chairs, and home
entertainment centers. The company's typical retail and service customers
include upper-middle class residents of the residential area who seek to
maximize the purchasing power of the interior decorating budget. These
customers are attracted to Pacific Furniture because it provides quality
products, and many are second generation clients. These loyal customers have
consistently provided Pacific Furniture with annual sales of over 30,00,000tk
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in each year. Pacific Furniture intends to expand its customer base in the
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residential area by aggressively promoting the Additional value of consulting

3. services it now provides and by capitalizing on its reputation more
extensively. A complete retraining of the sales force coupled with significantly
increased advertising expenditures will accomplish this objective.
COMPANY PROFILE
Name • Pacific Furnitur ltd.
• Office: 72, Mirpur Dhaka-1208
Address • Factory: Gazipur, Dhaka
Website • www.pacificfurniture.com
Form of • Partnership
Business
Product Type • Wooden Furniture
Brand Name • Pacific
• Attractive Brand Logo, Quality
Physique Protective
Culture • Corporate Image
• To creat clear brand Image, demand
Mission by ensuring Quality, Availability &
Rich Communication With Customers
Our logo
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4. Our Slogan
Modern Living, “Create your own fashion”.
Company visiting card
Nature of business
We form our business as a “partnership” business. The types of our
business are Manufacturing Furniture’s, Distributor/ Wholesaler. There
will be 7 partners in their respective posts.
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5. Partners Visiting cards:
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6. Page 6

7. Size of Business
This business will produce & provide consumer product and organize medium
size business. Initially we will cover the 1 division of the country but our
prospect will be whole of the country.
Statement of startup Finance
Initial financing requested of the company is 2, 00, 00,000 taka loan to be
paid off over five years from Dutch Bangla Bank Ltd. This debt will cover
office space, office equipment, and for supplies two leased vans, advertising
and selling cost. The partners provided 3, 00, 00,000 taka jointly. So, the total
cost of the project estimated at 5, 00, 00,000 taka.
Objectives
Objectives of Pacific furniture’s are given below-
1. Establish relationships with designers of unique, fine furniture
2. Establish relationships with quality wholesale suppliers of lumber
and hardware.
3. Establish our name and image in the community as a specialty
manufacturer of custom designed furnishings within the next
three years
4. Focus our product in various way like advertising, promotion, fair
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etc and increase our sales and make profit to 1,50,000tk by year.
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8. 5. To increase sales at least 1,40,00,000tk by the third year of
operation.
6. To sell some different designs furniture’s.
Keys of success
Keys of success are given below-
1. Business will be located on major city shopping malls, residential
areas, and college and university hostel areas.
2. We need to find the quality-conscious customer in the right
channels, and we need to make sure that customer can find us.
3. We can't afford to ship fully-assembled desks, but assembly must
be so easy and automatic that it makes the customer feel better
about the quality, not worse.
4. We committed to quality full wood, quality full workmanship,
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quality full design for customers.
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9. 5. Pacific furniture will employ local craftsmen who have plied their
trade for decades.
6. By using only the finest hardwoods available, our craftsmen
ensure that our furniture will last for generations to come.
Mission
Pacific furniture helps to decorate home in a very attractive designs and it
helps to create pleasant, productive office environments with well-designed
furniture that incorporates new technology into the classic office mode, in
which real people can work happily. Also in home decoration pacific
furniture help to spent a happy moment with all family persons.
We are sensitive to the look and feel of good wood and fine furniture as well
as to high-powered personal computing. We always provide the best possible
value to our customers who care about quality office environments, home
decorations, and we want you spent with us to be well spent.
Future outlook and trends
We mainly want to produce furniture. It is a partnership business. Initially we
prepare our business plan for five years. Next five year we target that we
capture 6% of total market share. When our company will start, only one
product available in five types, we produce at that time. We wish to achieve a
so much customer and consumer response in 1 year. It wills our betterment of
our company. We get best wishes to our target customer and also the mind of
the customer will obviously great beliefs of our products. Because we mention
that, our product is the best product in Bangladesh. We expect the sales will
be in next year approximately TK 1 corer. Our production cost is TK 2, 70,
50,000. The return on investment is 20% expected
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10. Goals
Our main goal is to provide good and best quality furniture to the customers.
As “Pacific” is a new company, so our goal is also to raise the brand value of
“Pacific” and creating a good number of loyal customers.
Focus
We concentrate on the continuous improvement of the product according to
the customer needs. So we specifically follow the product concept.
Our product description
Our products list is given below-
Bed sheds
Almira
Sofa
Dining table
Dressing table
Bed sheds:
Pacific furniture made Bed Sheds in various types and various design. The Bed
Sheds are very much attractive. See some sample of Pacific furniture Bed Sheds
in below- 10
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11. Almira:
Pacific furniture produces Almira by pure wood which is collect from forest.
And the Almira’s are very much attractive and nice designed. Some samples
are given below-
Sofa:
The main and most used home decorates furniture is Sofa. There are several
designed sofa are also produced by Pacific furniture. This sofa’s are used for
office and home decoration. Some designs are given below-
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12. Dining table:
Another main and most used home decorates furniture is Dining table. There
are several designed Dining table are also produced by Pacific furniture. Some
designs are given below-
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13. Dressing table:
Most used other furniture is Dressing Table. There are several designed
Dressing Tables are also produced by Pacific furniture. This Table’s are used
for home decoration. Some designs are given below-
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14. Product quality
Pacific Furniture brings quality in life. Their products contain following
qualities:
 Performance. Will show well performance.
 Features. Good features.
 The Name. A name that contains quality
 Reliability. Each person use will results in the same satisfaction.
 Serviceability. The service system efficient, competent,
convenient.
Market Analysis 14
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15. Market segmentation
Geographical Segmentation:
The market is segmented according to geographic criteria like,
 Nations: Our customer’s nation will be Bangladeshi.
 Regions:
Dhanmondi,
New Market,
Azimpur,
Panthopoth,
Green road,
Farmgate,
Mirpur,
Jatrabari,
Motijhil and
Mohammedpur.
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16.  Cities: At first we cover only Dhaka city after that we cover
other cities which is beside of Dhaka. The other cities are-
Narayanganj
Comilla
Chittagong
Sylhet
Bagherhat
Bogra
Maymensing
Khulna etc
 Zip codes: The zip codes are
1205,1209,1000,1206, 1100, 1208 etc.
Demographical Segmentation:
Demographic segmentation consists of dividing the market into
groups based on variables such as
 Age: The age range of the customers are
2-5year old,
20-30years old and
40-70years old people.
 Gender: The gender of the customers are
Male and
Female.
 Family size: In Dhanmondi and its side areas families are
maximum small family. Our targeted families are
Small family and
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Big family

17.  Income: The customers income level will be
10,000tk to 30,000tk per month
30,000tk to 50,000tk per month
50,000tk to 70,000tk per month
70,000tk to 1,00,000tk per month
 Occupation: Occupation is not clearly defined for the target
market of our product. But the customers are
Job holder and
Business person
 Education: The education level of the target customer is
HSC
Higher graduation like BBA & MBA
PHD and others.
 Religion: The religion of the most customers is Muslim.
There is also having some other religion peoples. The
religions of our customer are
Muslim
Hindu
Buddhist
Christian
And others
 Nationality: Most customers nationality is Bangladeshi but
there have also some other nationality people like
American
English
Nigerian etc.
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18.  We have targeted for the upper part of the lower class,
middle class, upper middle class, and lower part of the
upper class of the society.
Middle Class
Upper- Middle Class
Some portion Upper class
Psychographic Segmentation:
Psychographics is the science of using psychology and demographics to
better understand consumers. By Psychographic segmentation we segment our
consumers according to their lifestyle, personality, values. Aliens within the
same demographic group can exhibit very different psychographic profiles.
Target market
As a manufacturer supplying to distributors, our target market would be
furniture distributors of high quality product. The income level of the average
client seeking high quality furniture will be in the middle and upper class
range. Marital status will not make a difference. Education level will be
college graduates, professionals, and some skilled trades. Many of these
customers are returning to Dhanmondi area after living elsewhere and yearn
for a simpler life for their family. Many others are transferees with large
corporations, having come from more expensive living areas of the country.
Therefore we feel we can target this niche for our direct sales outlet.
As we expand into the office and industrial furniture markets, we will target
corporations, hospitals, and businesses of all sizes. The end user for our
product will be those who appreciate fine workmanship, durability, quality
craftsmanship and fine wood; the discriminating buyer who is selective and
does not want a typical, mass-produced product. Our customers will not
hesitate to pay for top quality and workmanship that will last for decades,
even centuries that will become heirlooms.
Our initial primary market will be small independent furniture retailers
within a 250 mile radius of the Dhanmondi, which will include such major
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markets as New Market, Azimpur, Panthopoth, Green road, Farmgate, Mirpur,
Jatrabari, Motijhil and Mohammedpur. We will target them until we are able
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to craft enough quality furniture to distribute to larger furniture chains.

19. Target market by categories:
 Age: The age range of the customers are
2-5year old,
20-30years old and
40-70years old people.
 Gender: The gender of the customers are
Male and
Female.
 Family size: In Dhanmondi and its side areas families are
maximum small family. Our targeted families are
Small family and
Big family
 Income: The customers income level will be
10,000tk to 30,000tk per month
30,000tk to 50,000tk per month
50,000tk to 70,000tk per month
70,000tk to 1,00,000tk per month
 Occupation: Occupation is not clearly defined for the target
market of our product. But the customers are
Job holder and
Business person
 Education: The education level of the target customer is
HSC
Higher graduation like BBA & MBA
PHD and others.
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 Religion: The religion of the most customers is Muslim.
There is also having some other religion peoples. The
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religions of our customer are

20. Muslim
Hindu
Buddhist
Christian
And others
 Nationality: Most customers nationality is Bangladeshi but
there have also some other nationality people like
American
English
Nigerian etc.
 We have targeted for the upper part of the lower class,
middle class, upper middle class, and lower part of the
upper class of the society.
Middle Class
Upper- Middle Class
Some portion Upper class
Competitive comparison
Within our niche we have two significant competitors, Akhter Furniture and
Hatil Furniture. Akhter is a bigger company but like us, operating mainly in
our same niche, whose marketing is better than its product quality. Akhter
and Hatil furniture are the market leader and we are the follower because we
are new in this market. But to stay in market we use our quality to attract our
consumers.
Competitors profile:
Our competitors profile are given below-
1. Hatil Complex Ltd. is a leading doors and furniture
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manufacturer in Bangladesh. Hatil has been established in
1989 following the footsteps of H.A. Timber Industries Ltd. - a
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21. company running from 1966 with reputation in timber
processing sector.
Strengths: Good marketing, strong advertising budget, relationships
with distributors, strong direct sales.
Weaknesses: The product is more standardized, and of lesser quality,
with less sense of design and materials and workmanship.
2. Akhtar Furnishers Ltd (AFL) started their business in1976.
Akhtar Furnishers Ltd (AFL) has been committed to the ideal of
creating furniture of such impofessionals who sell and deliver
it.
Today, every employee feels it is a brand created by them, and each of
us is dedicated to earning your confidence and building on this tradition
of excellence.
Strengths: Financial backing, product quality.
Weaknesses: AFL has not seemed to understand our niche, where to find
the buyers, how to market as a specialty niche instead of the more
traditional furniture channels.
Other competitors are Ahmed furnishers, anarkoli furnitures, antara
farnishers, anupam furniture, asha furnitures, aver green furniture etc
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22. Overall Marketing Strategy
We focus on a special kind of customer, the person who wants very high
quality office furniture customized to work beautifully with modern
technology including personal computers, scanners, internet connections, and
other high-tech items. Our customer might be in larger corporations, small or
medium business, or in a home office with or without a home-office business.
What is important to the customer is elegance, fine workmanship, ease of use,
ergonomics, and practicality.
Our marketing strategy assumes that we need to go into specialty channels to
address our target customer's needs. The tie-in with the high-end quality
catalogs like Sharper Image is perfect, because these catalogs cater to our kind
of customers. We position as the highest quality, offering status and prestige
levels of purchase.
The product strategy is also based on quality, in this case the intersection of
technical understanding with very high quality woodworking and
professional materials, and workmanship.
Our most important competitive edge is our assembly strategy, which is based
on interlocking wood pieces of such high quality that assembly is not only a
pleasure for our customers; it is actually a feature that enhances the sense of
quality.
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23. Our marketing objectives
 Maximize profit margin
Objective of the Pacific Furniture is to provide high quality product and satisfy
our customer by our product. We will take premium price to our customer
other than our competitors. Thus we will try to maximize our product.
 Quality leadership
The main objective of Pacific Furniture that its responsibility to provided best
quality what we will promise to our customers. Pacific Furniture sets main
objective to provide quality products that satisfy the customer need and their
requirement. So Pacific Furniture will deliver the quality product.
 Long relationships with customer
We will try to provide superior value to our customer what we have promised
through advertising. So we believe the customers will be loyal to our brand
and build long term relationships.
 Communication objective
We will use different sources to attract their customer. The objective of Pacific
Furniture is to create awareness in our customer about our new product.
Pacific Furniture also tells their customer that they provide pure wooden
furniture to their customers.
Strategy marketing objective
 To build unique distribution system that provides ubiquity at low
cost.
 To build high speed, efficient and vertical integrated manufacturing
capabilities to gain low cost advantage.
 To increase advertisement activities.
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 To redesign packaging to a more attractive and familiar.
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24.  To make innovation in product so that it become more portable and
in convenience oriented form.
 To improve product quality as ever provide
 To maintain positive and steady growth each month.
 To experience an increase in new customers i.e. we have to ensure
that our products have a high trial rate which will help us to turn
these new customers into long term customers.
 Generate brand equity at the markets we are catering to as well as
within the supplier and distribution networks.
Positioning
Pacific Furniture handcrafts furniture from selected and custom designs. By
doing custom design work, we have the ability to meet any special
requirements of customers be it design, wood, color or type of construction.
Our personalized service provides our customers with their own personal
specialist. Our personal specialist will maintain a database of their client’s
valuable information such as client name, personal likes and dislikes, wish list
information, past purchases including dates, price, and style, serial numbers
and any other data which will assist our customer in target their marketing
efforts. We also keep a photo inventory for insurance purposes as a part of our
customer service. Many of our customers have returned to a smaller
community and have purchased expensive homes and wish to furnish them
with exquisite furnishings which they can pass on to their children, family
and friends. They have a higher education background and are employed by
large companies. They use the internet frequently and appreciate the
convenience of having access to shopping and personal records online.
Our main retail competitor, Akhtar furnisher’s ltd, is located in New Elephant
road, 25 minutes away. We plan to beat this competition by offering more
variety and having a personal service. Our other competition is from chain
stores, some of which we plan to supply as a wholesaler.
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25. Risk and Overcome
Our main risks are given below-
Raw material: Some time our supplier will not capable to supply
us raw material and it’s a big risk for us. And for that we will buy
it from our local wood seller who are sale wood locally.
Strike: The workers will strike from their work. On that time we
will take an emergency action to cool down them and back them
to work.
Advertisement problem: Some time we will face Advertisement
problem and for that problem our Marketing will slow down. On
that time we will make some campaign for recover that risk.
Poor management: Poor management also a risk for our business.
If we see that we have poor management then we will recover it
and increase our management strength.
Natural disaster: For uncertainty of Natural disaster we stock
some wood for our future production and recover this type risk.
Pricing
Our products prices are given below by categorically:-
1. Bed sheds:
Single Bed sheds 9000tk
Semi double bed sheds 14000tk
Double bed sheds 20000tk
2. Almira :
Small 12000
Medium 20000
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Big 25000
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26. 3. Sofa:
Single 8000
Long 18000
Set 40000
4. Dining table:
Table with 4 chares 13000
Table with 6 chares 20000
5. Dressing table:
Small 8000
Medium 15000
Large 23000
Distribution
In the next five year we want to increase our sell 25.45%, for this we have to
increase our main distributor’s number in the remote area of Bangladesh. We
have to evaluate their capacity and then try to sell our product in their
distribution network more frequently. We have a plan an action program for
our distributor’s sales persons.
We are new in this market but still we have already covered Dhaka and some
other districts by our strong distribution network. We have divided Dhaka and
other districts into some operational zones and each zone has its separate
distributor.
Beside this we are trying to cover all the districts and some of the major
Thanas by appointing new distributors.
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27. Following is the flowchart of our distribution network:
Factory
Super Shops Distributors
Final consumer
Final consumer
A distribution strategy defines how you are going to move products from point
of creation to points of consumption, in a cost-effective manner. The
effectiveness of distribution coverage and practice is of paramount importance
in achieving the desired furniture sales.
Location
Our company’s factory will locate in Gazipur. And our outlets are located in
Dhanmondi, New Market, Azimpur, Panthopoth, Green road,
Farmgate,Mirpur, Jatrabari, Motijhil and Mohammedpur.
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28. The advantage of this location are given below-
o Raw materials:
We collect our raw materials like wood from various areas for
the easy accessibility and less barriers. The transport facility is good
for truck and Lorries. The areas are-
Sundarban
Khagrachari
Chittagong
Bandorban
o Place of Factory establishment:
Our factory will locate in Gazipur because there have easy and
low cost labor accommodation, easy transportation to Dhaka and
easy transportation of raw materials from Sundarban.
o Required skills with work force availability:
Gazipur is suitable for getting much labor in low cost. And for
that reason we will locate our factory to Gazipur.
o Ecological requirement:
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Gazipur is stay beyond the prohibition of ecological disasters
like flood, earthquake etc.
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29. o Public utility:
The public utilities like Electricity, Gas, Water and other
security service are available here and also for this reason we will
locate our factory there.
o Transportation of finish goods:
Gazipur is most popular for availability of delivery vehicles.
And for that reason we locate our factory for easy transport of our
finish goods.
o Scope for expansion of our factory:
Our head office will be locate in Mirpur and outlets are locate
in Dhanmondi, New Market, Azimpur, Panthopoth, Green road,
Farmgate,Mirpur, Jatrabari, Motijhil and Mohammedpur. And we
can expand our factory to other area like Narayangonj, Savar etc.
because that areas also famous for transportation affordability and
customer convenience.
Advertising and promotion
Pacific Furniture will use different sources to communicate their target
marketing. We will use those sources on that the more customer attract like
Local Cable, Newspapers, Billboard and when they lunch any scheme in
Furniture they use pamphlets to aware their customer. Pacific Furniture will
use the channel to attract the customer and give fully information about
Furniture through these Electronic media. As our target consumers are middle
and old age people, for this reason we promotion our product to give advertise
in television, radio. We also use vehicle writing method and posturing for our
product advertisement.
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30. We choose some media for our product’s advertising. This are-
1. Internet
2. Television
3. Radio
4. Newspaper
Internet:
We use internet based advertising like Facebook, Prothom-alo.com,
dailykalerkantha.com, bdpratidin.com etc. In facebook and other daily
newspapers website there have so much visitor every day. And the total
amount of visitor from those website is more than 10,00,000 visitor every day.
And this the most effective advertising plot for us.
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31. Television:
Television is also a most popular media item. Every people of our country use
it for entertainment. And it’s our platform to advertise our product. We use
Channel I and Ekushey television for our advertising.
CHANNEL I
•Frequency- Continuous -Alernating Basis
•Cost-100,000
Ekushey TV
•Frenquency- Intermitted basis
•Cost- 300,000
Radio:
Radio also a most popular media item in Bangladesh. Many people of our
country use it for audio entertainment. And it’s also our platform to advertise
our product. We use Radio today, ABC Radio, for our advertising.
RADIO TODAY
• At Somrame popular Prog
• Cost-30,000
ABC RADIO
• Same policy
• Cost-30,000
Newspapers:Most people of Bangladesh read newspaper in morning after
wake up. And for that reason we use most popular newspapers for our
advertising. The newspapers are Prothomalo.
PROTHOM ALO
• 5th page- Once aweek
• Cost-30,000
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32. Sales promotion
Offering free samples:
To promote our product we give free samples to our customers to understand
our product quality. And it’s a popular promoting policy in Bangladesh.
Coupons
Coupons are also given to our consumers when they are come to buy our
product. By that coupon a customer can win an exclusive prize. And for that
customer will increase.
Discount on sale:
We give some discount on our sale for getting more customer easily.
Publicity:
Product launches:
On the time of product launches we arrange a meeting or function for our
product publicity. By this type action product publicity is increased very
much.
We arrange some special events including community involvement with
name of our brand. And also for that our popularity will increase.
By writing articles on newspapers or magazines we can increase our
publicity.
By sponsor on local festival fair we can gain publicity.
We can also increase publicity by attend on business fair.
Company website:
By our company website every one can know with us and our products. And
they also can buy products from there.
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33. Sourcing
We work with three wood suppliers, all local. CTG Wooden
Complex supplies most of our oak and a bit of cherry and some other
specialty woods. CTG Wooden Complex has been in business for as long as
we have, and has given us good service and good prices. This is a good, stable
supplier. Golden aero wooden manufacturing is a good second source,
particularly for cherry and specialty woods. We've used Dhaka wood for
filling in when either of our main two suppliers were short. We also work
with a number of specialty manufacturers for furniture fittings, drawer
accessories, glass, shelving accessories, and related purchases. Although we
aren't a major player compared to the major furniture manufacturers, we are
one of the biggest buyers of the custom materials we need.
Product life cycle strategy
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34. Introduction:
The product life cycle is based use to interpret product and market dynamics.
At the introduction stage we launch our product, Furniture. As we are new in
the market that’s why our market is small, our sales is low, and our
competition is also low. For this reason we need to spend more for our product
promotion. For beginning a new business our cost per product will be high. So
our prices will also being high. For this reason first year our profit will be low
or we will face loss.
Growth: Pacific furniture is serve furniture product but in the growth stage
we think our seals will increase than the introduction stage. For our strong
marketing strategy people will know about product rapidly and our sales will
increase. Here our product market is growing, our sales are high, and our
competition is on moderate. To compete with our competitors we have to
decrease our cost how much we can. At the growth stage our profit will
increase day by day. Because in this stage we can decrease all cost of our
product. We will expenses more money in advertising and promotion of our
product and give much importance in these two sectors. So that more
customers will be attract to our product. As our product will move toward
maturity stage, the number of competitors will increase day by day. Then it
will be challenge for us to stay in the market. In this stage we can create
awareness about our product. For this reason we will be able to maximize our
product share.
Maturity: In the maturity stage our product will reach top most level of sales.
At this time our production cost per unit will be low. Number competitors will
be falling in this stage. Here our product market is large, our sales are
flattening, and our competition is high. In this stage our profit will me be at
top level because in maturity stage (4.6 years) we will reach break event point.
In this stage our market share will be increasing and distributors will increase.
To hold the market we will launch new product.
Decline: In this stage our product’s sales will decrease day by day. We will
expend more for R & D. We will try to extend our product. Different problems
will be faced in this stage such as old looks.
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35. SWOT Analysis
SWOT is the combination of 4 key words, which constitutes the internal and
external issues of a company.
Strength:
Strength refers to the competitive advantages and the other distinctive
Competencies that a company can exert in the market place.
Weaknesses:
Weakness is constraints that hinder movements in certain directions.
Opportunities:
A marketing opportunity is an area of buyer need in which a company
can perform profitable.
Threats:
A threat is challenge posed by an unfavorable tend or development that
would lead, in the absence of defensive marketing action, to deterioration in
sales or profit.
35
Page

36. A Snapshot of SWOT Analysis:
Strengths Weaknesses
Innovative product Lack of Brand Awareness
Competitive Pricing Similarity of packaging
Strong Distribution Channels
Opportunities Threats
Growing number of customers Increased Competition
Creation of Loyal customers Down-ward pricing pressure
Increasing customer awareness Large number of indirect competitor
Cost efficient Technology Economic factor
Rise of the brand’s value Copyright threats
Duties and responsibilities of partners
The responsibilities and duties of all partners are given below-
Managing Director
Our companies managing director will be Zia-ur-Rahman Galib. Managing
Director (MD) of a company is the leader of an organization. The position of
our company will be held by MD. This the highest position in an organization
and have the responsibility for the success or failure of that organization. The
main duties and responsibility of a MD is-
Welcome new employees in the organization.
Making the organization Effective -capable of doing the right things.
Making the organization Innovative for doing new things.
Managing all forms of incoming and outgoing communication.
Responsibilities of Marketing Manager:
36
Page

37. Md. Yeasin Khan is the Marketing manager of our company. The Marketing
department’s works are operated by Marketing Manager. Marketing
manager’s major duties are-
 Determine the eligibility of those wanting to sell at the market based
on the rules established by market’s governing body. Actively recruit
new producers to expand the variety or products for sale.
 Collect rental fees from vendors and maintain accurate records of
payment. Many markets charge a flat daily fee, while others collect
fees based on a percentage of a vendor’s sales (usually between 5 and
8%)
 Assign selling spaces if they are not allocated on a first‐come,
first‐served basis. It is recommended to keep vendors in the same
space throughout the season to avoid both vendor and shopper
confusion.
 Advertise and promote the market. Research suggests that freshness
is one of the main motivations for buying local produce, and your
image should project freshness, quality, and value. Promotions may
include special events, banners, signage, radio spots, and free
coverage in local newspaper.
Responsibilities of R & D
Rafiqul Islam is the R & D manager of our company. The R & D department’s
works are operated by R& D manager. R& D manager’s major duties are-
 Research for the new product idea or modify the existing one.
 Eliminating cost for producing by using different method.
 Design of new product process and type.
 Focus on improvement, development, modification and introduction of
new product, features, process.
 Be up to date with new technologies, approach.
Responsibilities of Production Manager
For this position we have selected Fahima Akter Aurin. She will also organize
the production/operation department of the organization. The key
responsibilities of this position are stated below –
37
 Control the whole production process.
Page

38.  Ensuring raw material is providing timely and made into finished
goods effective.
 Set standard and targets for each section for production process.
 Monitoring the quantity and quality of raw material used and
produced goods of a production line.
 Strictly monitoring each stage of production.
Human Resource (HR) Manager
Arif Hossain is the HR manager of our company. The human resource (HR)
department’s works are operated by HR manager. HR manager’s major duties
are-
 Recruiting is the main duty of a HR manager.
 Arrange training programs for those who are newly selected to join
the organization and also or existing employee.
 See the performance of the employee.
 Post advertisement in printed media, Internet or business magazines
to hire new employee.
 Identification of job, responsibility and duty of the organization.
The Responsibility of Finance Manager
Sarkar Rajibul Hasan is the Finance manager of our company. The Finance
department’s works are operated by Finance Manager. Finance manager’s
major duties are-
 Finance manager oversees the preparation of financial reports, direct
investment activities, and implement cash management strategies.
 Develop and implement accounting and internal control systems,
standard operating procedures.
 To deliver accurate and timely finance transactional processing in
finance shared service centre.
 A financial manager is responsible for providing financial advice and
support to elements.
 Formulating strategies and long-term business plan.
 Developing financial management mechanisms that minimize
financial risk.
38
Page

39. Key Responsibilities of Accountants
Omar faruk is the Accounts manager of our company. The Accounts
department’s works are operated by Accounts manager. Account manager’s
major duties are-
 Prepare profit and loss statements and monthly closing and cost
accounting reports.
 Compile and analyze financial information to prepare entries to
accounts, such as general ledger accounts, and document business
transactions.
 Establish, maintain, and coordinate the implementation of
accounting and accounting control procedures.
 Analyze and review budgets and expenditures for local, state,
federal, and private funding, contracts, and grants.
 Monitor and review accounting and related system reports for
accuracy and completeness.
Marketing Manager
R & D Manager
Production Manager
Managing Director
Human Resource
Manager
Finance Manager
Accounts Manager
39
Page

40. Partnership Agreement
FORM OF OWNERSHIP
The form of the business is “partnership” business and all the partners are
responsible for the business. The partners are jointly and severally liable for all
debts of the firm.
Partnership Agreement
1. The name of our business will be Pacific Furniture Company. The
factory address of the firm will be Gazipur, Dhaka and the office will
be in 72, Mirpur, Dhaka-1208
2. There are 7 Partners of this company. The partners name and address is
given below-
Zia-ur-rahman Galib Md. Yeasin Khan
Managing Director Marketing Manager
Phone: 02 8645781 (Ext- 08) Phone: 02 8645781 (Ext- 07)
Mobile: 01558845845 Mobile: 01685485625
Email: md@pacificfurniture.com Email: mktg@pacificfurniture.com
Web: www.pacificfurniture.com Web: www.pacificfurniture.com
Fahima Akter Aurin Arif Hossain
Production Manager HR manager
Phone: 02 8645781 (Ext- 02) Phone: 02 8645781 (Ext- 03)
Mobile: 01685485625 Mobile: 017215845865
Email: production@pacificfurniture.com Email: hr@pacificfurniture.com
Web: www.pacificfurniture.com Web: www.pacificfurniture.com
40
Page

41. Rafiqul Islam Sarkar Rajibul Hasan
R & D Manager Finance Manager
Phone: 02 8645781 (Ext- 05) Phone: 02 8645781 (Ext- 04)
Mobile: 01925452157 Mobile: 01723512458
Email: rd@pacificfurniture.com Email: finanace@pacificfurniture.com
Web: www.pacificfurniture.com Web: www.pacificfurniture.com
Omar Faruk
Accounts Manager
Phone: 02 8645781 (Ext- 06)
Mobile: 01821454781
Email: accounts@pacificfurniture.com
Web: www.pacificfurniture.com
3. It’s a furniture business. It will produce furniture and sale them to the
local market.
4. The investment amount of the each partner is same. Their total
investment is 3 crore tk. And every partner gives 42,85,715tk.
5. The partners will share profit and loss equally.
6. Every partner can withdraw not more than 50,000tk every month.
7. The partners job description and the duties and responsibilities is given
below:-
Managing Director
Our companies managing director will be Zia-ur-Rahman Galib. Managing
Director (MD) of a company is the leader of an organization. The position of
our company will be held by MD. This the highest position in an organization
and have the responsibility for the success or failure of that organization. The
main duties and responsibility of a MD is Welcome new employees in the
organization. Making the organization Effective capable of doing the right
41
things. Making the organization Innovative for doing new things. Managing
all forms of incoming and outgoing communication.
Page

42. Responsibilities of Marketing Manager:
Md. Yeasin Khan is the Marketing manager of our company. The Marketing
department’s works are operated by Marketing Manager. Marketing
manager’s major duties are: Determine the eligibility of those wanting to sell
at the market based on the rules established by market’s governing body.
Actively recruit new producers to expand the variety or products for sale.
Collect rental fees from vendors and maintain accurate records of payment.
Many markets charge a flat daily fee, while others collect fees based on a
percentage of a vendor’s sales (usually between 5 and 8%). Assign selling
spaces if they are not allocated on a first‐come, first‐served basis. It is
recommended to keep vendors in the same space throughout the season to
avoid both vendor and shopper confusion. Advertise and promote the market.
Research suggests that freshness is one of the main motivations for buying
local produce, and your image should project freshness, quality, and value.
Promotions may include special events, banners, signage, radio spots, and free
coverage in local newspaper.
Responsibilities of R & D
Rafiqul Islam is the R & D manager of our company. The R & D department’s
works are operated by R& D manager. R& D manager’s major duties are:
Research for the new product idea or modify the existing one. Eliminating cost
for producing by using different method. Design of new product process and
type. Focus on improvement, development, modification and introduction of
new product, features, process. Be up to date with new technologies,
approach.
Responsibilities of Production Manager
For this position we have selected Fahima Akter Aurin. She will also organize
the production/operation department of the organization. The key
responsibilities of this position are stated below: Control the whole production
process. Ensuring raw material is providing timely and made into finished
goods effective. Set standard and targets for each section for production
process. Monitoring the quantity and quality of raw material used and
produced goods of a production line. Strictly monitoring each stage of
production.
42
Page

43. Human Resource (HR) Manager
Arif Hossain is the HR manager of our company. The human resource (HR)
department’s works are operated by HR manager. HR manager’s major duties
are: Recruiting is the main duty of a HR manager. Arrange training programs
for those who are newly selected to join the organization and also or existing
employee. See the performance of the employee. Post advertisement in printed
media, Internet or business magazines to hire new employee. Identification of
job, responsibility and duty of the organization.
The Responsibility of Finance Manager
Sarkar Rajibul Hasan is the Finance manager of our company. The Finance
department’s works are operated by Finance Manager. Finance manager’s
major duties are: Finance manager oversees the preparation of financial
reports, direct investment activities, and implement cash management
strategies. Develop and implement accounting and internal control systems,
standard operating procedures. To deliver accurate and timely finance
transactional processing in finance shared service centre. A financial manager
is responsible for providing financial advice and support to elements.
Formulating strategies and long-term business plan. Developing financial
management mechanisms that minimize financial risk.
Key Responsibilities of Accountants
Omar faruk is the Accounts manager of our company. The Accounts
department’s works are operated by Accounts manager. Account manager’s
major duties are: Prepare profit and loss statements and monthly closing and
cost accounting reports. Compile and analyze financial information to prepare
entries to accounts, such as general ledger accounts, and document business
transactions. Establish, maintain, and coordinate the implementation of
accounting and accounting control procedures. Analyze and review budgets
and expenditures for local, state, federal, and private funding, contracts, and
grants. Monitor and review accounting and related system reports for
accuracy and completeness.
8. Conforming of all orders by all partners.
9. By board meeting of the partners will resolve the major and minor
problems.
10. When any partner will die or retire or insufficient to stay with us then
43
the partnership will dissolve. It not mean that the company is switched
Page
off.

44. 11. A partner may, after giving written notice to the other partners,
transfer his/her interest in the partnership to a revocable living trust of
which he/she is the grantor and sole trustee.
12. When every partners want to disclose the business and if government
will find any unethical work on the business then the business will
closed.
Staffing plan
Strategic Staffing:
When we are hiring team members, we need to look at them a little
differently. Before, we looked for the ability to cover a shift, where now we
look for people that can stretch two more levels from where they are today.
Delivering our customer experience is not easy. We need to find people who
are passionate about Pacific Furniture and our culture Fun, Integrity, Balance,
Empower, and Respect."
It's not about getting a group of people to interview; it's about getting the right
people. To find these potential employees, we will try new ways to attract and
reach the new talent pool of Generation. To support the general managers in
the seasonal swing in staffing their stores, the recruitment team had given
some stores access to online tools for their hourly team members.
We can get help from many web site, University, Newspaper and Business
Magazine to find this more qualified talent pool.
Performance Management:
Performance Management including Individual Development Plans (IDP),
examines the employee as a whole, measuring skills, behaviors, and results.
The mindset will shifted once again; before performance evaluations will be
very tactical and activity based, where as today, leaders are asked to dig
deeper into the behaviors that drive results.
44
The focus is more heavily weighed on assessing potential correctly and then
developing the plan based on their strengths, weaknesses, or opportunities.
Page

45. POSITION EDUCATIONAL Experience OTHER QUALIFICATION
BACKGROUND
MBA 7yrs Excellent
Managing
interpersonal
Director (Major in HR)
communication skill,
excellent leadership.
HR Executive BBA(Major in HR) 5 yrs Managerial
experience.
Marketing MBA(Major 10yrs Innovative and hard
Manager Marketing) working
Brand Executive M Sc / B Sc 4 yrs Good command in
English
Production MBA 4 yrs Command over
Manager Production
Executive Graduate in 3 yrs Command over Ms
Marketing office
Finance Manager MBA, Major in 8 yrs Experience as a
finance. Decision provider,
financial analyst.
Accountant BBa or MBA, 3 years Skill in accounting
Major in terms.
Accounting.
National Sales MBA 7 yrs Excellent
manager interpersonal
communication skill,
excellent leadership.
Supervisors Bachelor Degree 3 years Good knowledge
about Furniture
45
business.
Page

46. Recruitment
This is the process of discovering potential candidates for actual or anticipated
organizational vacancies. Employees can be recruited from internal search
and/or from external search. However, Pacific Furniture will be recruiting
through external search. External search can be done through advertisements
in newspapers, employment agencies, colleges and universities and from other
professional organizations.
The recruitment process of Pacific Furniture will start by giving advertisement
in newspapers, where the applicant will be told to collect application form
from the main office in Mirpur. The applicant will have to fill the application
form and submit it along with a cover letter and curriculum vitae.
The search for employees can also be done through online employment
agencies like bdjobs or in prothomalo jobs.
Circulation can also be done in colleges and universities.
Selection
Selection activities follow a standard pattern, beginning with an initial
screening interview and concluding with the final employment decision. The
selection process for Pacific Furniture will follow the steps given below:
Preliminary Screening:
The first step in the selection process whereby job inquiries are sorted. This
will consist of two steps: screening inquiries, and screening interviews. The
applications will be screened and sorted, and then the selected applicants will
be called for an interview, and the final applicants will be screened and
selected from the final interview.
Final Selection:
The final candidates selected will be therefore, be assigned their work.
46
Page

47. Employment Test:
After the employees are selected, they will have to go through an employment
test. This is not applicable for the blue collar workers but mandatory for the
white collared employees and for the sales assistants and the cashiers.
Sales Forecast
For the year 2013
Month/Product Bed shed Almira Sofa Dining table Dressing table
name
January 50000 60000 120000 20000 20000
February 60000 40000 140000 90000 40000
March 80000 85000 70000 53000 35000
April 150000 65000 150000 85000 25000
May 140000 50000 65000 45000 50000
June 70000 90000 54000 65000 15000
July 90000 80000 65000 75000 5000
August 80000 65000 25000 64000 12000
September 170000 45000 50000 85000 65000
October 70000 30000 45000 45000 40000
November 75000 70000 65000 150000 38000
December 78000 55000 85000 60000 54000
Total 1113000 735000 934000 837000 399000
Net total 4018000
47
Page

48. Sales Forecast - 2013
Total Production : 40,50,000
Total Sales : 40,18,000
Explanation of sales forecasting:
By considering several factors we have estimated future sales throughout the
year of 2013. We are going to start production and selling from the Jan of
2013. We are launching five products.
Bed sheds
Almira
Sofa
Dining table
Dressing table
1) January:
Our production and selling will be start from January. As the market is
48
unaware about the product, so we will produce 25 units.
Page

49. 2) February:
Considering cultural environment and our product capability, we will
increase our product 40 and sales will be 35 units.
3) March:
We will sustain of production level but the sales will increase 45 units because
of increasing awareness.
4) April:
As summer started, the factor weather and easy availability of material will
increase our production to 75 as well as sales to 60.
5) May:
In this month both production and sales will increase due to middle of the
year.
6) June:
We will sustain the production level and sales will be in acceptable level for
weather factor the sales will down for some unit.
7) July:
As Ramadan will start for end of July, it will affect our sales positively, it
will be 60 units.
8) August:
Because of Ramadan and biggest festival Eid-Ul-Fitar, our sales will be
the highest of the year, as we estimated.
9) September:
In these months, the sales will be in normal level.
10) October:
Two religious festivals will be occurring in this month’s Eid-Ul-Azha
and DurgaPoja. So, the sales will be second highest.
11) November:
As because of weather and less material availability, the sales will
decrease.
12) December:
For some factors like weather and social forces, the sales volume will
decrease.
49
Page

50. Sales Forecast for year 2013-2017
2013 2014 2015 2016 2017
Total Sales 4018000 9854000 14500000 23500000 32000000
Total production 4050000 9953000 15000000 23600000 32200000
Bed shed 1113000 2854000 4200000 6500000 10000000
Almira 735000 1900000 3800000 4500000 7000000
Sofa 934000 1500000 2000000 3500000 5500000
Dining table 837000 2500000 3500000 6000000 6500000
Dressing table 399000 2100000 1000000 3000000 3000000
50 Page

51. Pacific Furniture
Cash flow statement – 2013
Cash in January February March April May June July August
Cash sales
Bed sheds 50000 60000 80000 150000 140000 70000 90000 80000
Almira 60000 40000 85000 65000 50000 90000 80000 65000
Sofa 120000 140000 70000 150000 65000 54000 65000 25000
Dining table 20000 90000 53000 85000 45000 65000 75000 64000
Dressing table 20000 40000 35000 25000 50000 15000 5000 12000
Total 270000 370000 323000 475000 350000 294000 315000 246000
Collection from 400 300 400 400 80 0 400 400
A/R
Term loan 1000000 1000000 1000000 1000000 1000000 1000000 800000 800000
processed
Sales fired asset 2000000 1000000
Total cash in 1270400 1370300 1323400 1475400 3350080 1294000 2115400 1046400
Cash out
Rent 300000 300000 300000 3000000 300000 300000 350000 350000
Magi Salaries 732000 732000 732000 732000 732000 732000 732000 800000
Other Salaries 192500 192500 192500 192500 192500 192500 192500 193000
wage
Telephone 900 900 900 900 900 900 900 1000
Utilities 30000 30000 30000 30000 30000 40000 40000 40000
Repair 1000 1000 1000 2000 2000 2000 3000 3000
License municipal 40000
Insurance 10000 10000 10000 10000 10000 10000 10000 10000
Other Operation 10000 10000 10000 5000 5000 7000 7000 7000
Pay of purchase of 1000000 800000 500000 500000 300000 300000 300000 200000
net asset
Pay of 50000 50000 50000 50000 50000 50000 50000 50000
Income 500000 500000 60000 70000 60000 70000 80000 80000
Pay of A/B 50000 30000 30000 20000 30000 30000 20000 30000
Total cash out 2506400 2206400 1916400 1912400 1722400 1734400 1785400 1764000
Opining balance 50000000 30000000 30000000 30000000 30000000 25000000 25000000 25000000
Add : Cash in 1270400 1370300 1323400 1475400 3350080 1294000 2115400 1046400
(-) Cash out 2506400 2206400 1916400 1912400 1722400 1734400 1785400 1764000
Surplus 48764000 29163900 29407000 29563000 31627680 24559600 25330000 24282400
51
Page

52. Pacific Furniture
Cash Flow Statement- year 2013
52
Page

53. Cash flow statement 5 Years
Pacific Furniture Company
Cash Flow Statement- Year 2013-2017
2013 2014 2015 2016 2017
Cash In
Cash sales 4018000 9854000 14500000 23500000 32000000
Collect from A/R 30,000 50,000 60,000 80,000 2,00,000
Term loan Process 11200000 8800000 10000000 1000000 8000000
Sales of fixed Assets 5,58,000 10,00,000 20,00,000 30,00,000
Other Cash receive 40,50,000 66,00,000 60,00,000 80,00,000 1,00,000
Total Cash in 15351720 18704000 24560000 24580000 40000000
Cash Out
Rent 39,50,000 40,00,000 41,00,000 45,00,000 50,00,000
Mgt Salaries 91,24,000 95,30,000 98,00,000 10,00,000 1,30,00,000
Other Salaried wage 23,12,500 25,00,000 28,00,000 30,00,000 50,00,000
Telephone expense 11,200 20,000 30,000 35,000 50,000
Utilities 4,41,500 6,00,000 7,00,000 8,00,000 10,00,000
Repair and maintenance
License and main. Insurance 1,20,000 1,20,000 1,20,000 2,20,000 4,00,000
Other operating expense
Pay of purchase of fixed 45,50,000 50,00,000 60,00,000 70,00,000 1,00,000
assets
Pay of long term loan 6,00,000 6,00,000 6,00,000 12,00,000 1,20,00,000
Income tax payment
Pay of AIP 3,50,000 4,50,000 5,00,000 5,50,000 5,00,000
Total cash out 2,25,32,2000 23,34,000 2,61,80,000 2,88,35,000 3,84,50,000
Opening Balance 325000000 317434520 314094520 315980920 317193920
Ad : Cash In 15351720 20000000 28066400 30048000 36400000
Less: Cash out 22917200 23340000 26180000 28835000 38450000
Sur plus 317434520 314094520 315980920 317193920 315143920
53
Page

54. Pacific Furniture
Cash Flow Statement- year 2013-2017
54
Page

55. Pacific Furniture Income Statement
Pacific Furniture
Income Statement
For the year 2013-2017
Year 2013 Year 2014 Year 2015 Year 20
Sales 4018000 9854000 14500000
Less: Sale return and -30,000 -50,000 -60,000
allowance
Net Sales 3,988,000 9,804,000 14,440,000 2
Cost of goods sold -1485000 -2150000 -3250000
Gross margin 2,503,000 7,654,000 11,190,000 1
Less: Expenses
Selling Expense 90,000 1,10,000 1,50,000 2,00,000
Administrative Expense 99,000 1,20,000 1,60,000 2,60,000
Depreciation Expense 10,00,000 12,00,000 13,50,000 16,00,000
Utilities Expense 20,000 30,000 50,000 80,000
Miscellaneous Expense 50,000 50,000 80,000 1,50,000
Advertising Expense 10,00,000 10,00,000 15,00,000 15,00,000
-2259000 -2710000 -3290000
Earnings Before Income & 244,000 4,944,000 7,900,000 1
Tax
Income Tax (15%) 36,600 741,600 1,185,000
Net Profit After Tax 207,400 4,202,400 6,715,000 1
55Page

56. Pacific Furniture
Balance Sheet
As for year 2013-2017
2013 2014 2015 2016
Asset
Current assets :
Cash 4018000 9854000 14500000 23500000
Accounts Receivable 80,000 120000 150000 200000
Total current assets 40,98,000 9,974,000 14,650,000 23,7
Long term Assets :
Land 7000000 7500000 8000000 9000000
Building 10000000 12000000 13500000 15000000
Machinery 10000000 11000000 12000000 13500000
Less: Accumulate -1096000 -6100000 -6700000 -7500000
Depreciation
Total long term assets 25904000 24400000 26800000 300
Total assets 30,002,000 34,374,000 41,450,000 53,7
Liabilities :
Bank loan 4000000 4000000 4000000 4000000
Net worth 25,862,000 30,374,000 37,450,000 49,700,000
Total liability 30,002,000 34374000 41450000 537
Break even analysis
Break even analysis is a technique widely used by production management
and management accountants. It is based on categorizing production costs
between those which are "variable" (costs that change when the production
56Page

57. output changes) and those that are "fixed" (costs not directly related to the
volume of production).
Total variable and fixed costs are compared with sales revenue in order to
determine the level of sales volume, sales value or production at which the
business makes neither a profit nor a loss (the "break-even point"). For our
business, it is very necessary to do break-even analysis. After knowing our
break-even quantity, we will be able to make our business profitable.
Fixed Costs
Fixed costs are those business costs that are not directly related to the level of
production or output. In other words, even if the business has a zero output or
high
 Total Fixed cost
Land 70,00,000
Building 1,00,00,000
Equipments 50,00,000
Vehicle 60,00,000
Machineries 1,00,00,000
Furniture 20,00,000
Insurance Ex. 5,00,000
License Ex. 2,00,000
Total Fixed cost 40700000
Variable Costs
Variable costs are those costs which vary directly with the level of output.
They represent payment output-related inputs such as raw materials, direct
labor, fuel and revenue-related costs such as commission. A distinction is often
made between "Direct" variable costs and "Indirect" variable costs.
57
Page

58. Total variable cost :
Factory overhead cost 80,000
Transportation Exp 50,000
Utility Bill 1,50,000
Production payroll 10,00,000
Telephone Bill 11,200
Advertisement 10,00,000
Administration payroll 12,00,000
Total 34,91,200
Total cost = 40700000
Total sales = 4018000
Sales unit = 300 unit
Sales per unit = 4018000/300
= 13393.33
Variable cost per unit = 3491200/300
= 11637.33
BEQ = 40700000 / (13393.33-11637.33)
= 40700000/ 1756
= 23177.68 unit
Total cost: Fixed cost + Total variable cost
Fixed cost = 40700000
Total variable cost (23177.68*11637.33) = 269726310.8
Total cost = 310426310.8
Total Revenue = 23177.68*13393.33 = 310426316.8
58
Page

59. So, TOTAL COST= TOTAL REVENUE
Figure: Break-even point
Ratio Analysis
Roles 2013 2014 2015
Current ratio Curren Asset/ Current 4098000/30002000 9974000/34374000 14650000/41450000 237
Liabilities
0.14% 0.29% 0.35%
Quick or asset current asset - inventory (4098000-300000- (9974000-700000- (14650000-700000- (23
Ratio - prepaid expense/curent 200000)/30002000 200000)/34374000 200000)/41450000 200
liabilities
0.12% 0.26% 0.33%
Debt equity ration debt/equity 2000000/3000000 2000000/3000001 2000000/3000002 200
0.67% 0.67% 0.67%
Operating expense Total operating expense- (2259000- (1090000- (1900000-200000) / (27
ration interest expense 200000)/4018000 200000)/9854000 14500000 200
0.51% 0.09% 0.12%
Inventory turnover 1. Cost of good sold/ Avg 1485000/660000 2150000 / 660000 3250000/660000 390
ratio inventory
2.24 3.25 4.92
2. Avg days to turnover 365/2.24 365/3.25 365/4.92 365
59
162.22 days 111.96 days 74.04 days
Average collection Accounts (80000/4018000) * (120000/9854000) (150000/14500000) (20
Page
period receivable/Sales 365 * 365 * 365 * 36

60. 7.29 days 4.46 days 3.79 days
Return on total operating income/total 226000/30002000 1090000/34374000 1900000/41450000 276
asset asset
0.01% 0.03% 0.05%
Return on Equity Net income/ Share 192100/7500000 926500/7500000 1520000/7500000 220
on investment holder equity
0.03% 0.12% 0.20%
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