Ralhum Sports plans to start a new business manufacturing and distributing leather balls locally in Sri Lanka using imported raw materials. The company aims to provide high quality balls at competitive prices. Ralhum Sports will manufacture different types of balls and concentrate initially on the Sri Lankan market, targeting clubs, schools, coaches and domestic cricket boards. The company expects to gain a high profit by covering the various market segments for cricket balls in Sri Lanka.

1. Management Accounting
New Business Of
Adam Hussain
Higher Diploma In Marketing
Department of Marketing Management
Faculty of Commerce and Management
University of Kalaniya

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COMPANY OVERVIEW

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EXECUTIVE SUMMARY
Ralhum Sports is planing to star up a new business line in lether ball production and
distribution . Unlike other sports distributors Ralhum Sports is planning to manufacture
Leather ball in a locally operated very unique factory, which provides the identity of “our
Product” with the imported raw materials and under supervision of two leather ball
manufacturing expertise from Pakistan. at value pricing which are cheaper and affordable.
This business aims to get a high profit as well as providing good quality balls with good
looking finishing.
MISSION
 We ensure that each of our output (Balls) remain with the best imported quality.
 We make sure that our company provide Leather balls at a competitive price, by using
good materials.
VISION
 We hope to be the best leather ball manufactures in the Asian region (Quality
,Standards )
 Make our ball as the Official Match ball of Sri Lanka Cricket

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PRODUCTS
Ralhum Sports will manufacturing all type of leather ball which are available in the
market. Customers will have the chance of buy all type of leather ball under on roof and they
can offer customized leather balls to the consumers as the factory will locate locally . We use
the best lethers which are imnported from Australia and Pakistan

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MARKET ANALYSIS SUMMARY
Ralhum Sports Faim to be the most Groowing business that provide lether balls to
the Clubs, School, Coaches and Domestric Cricket Boadies. Since Ralhum sports is goin t
manufacture all type of ball , it will suits to all the segmants, we will be covering all the
market segmentation. However, because the markets is very compatitive with all the segmant
which we afford to cover all of them, we decided to divide the target market into the playing
level requerment
Rahum Sports has decided to concentrate the Sri Lanka Leather Ball market at initial
level . We will create sales from Sri Lankan market by distributing through our dealer
network since we target to have a high turnover from the sales. Therefore, our market
analysis chart below represents this market strategy:
15%
19%
22%
44%
Market Analysis
Premier Cricket Club Cricket School Cricket Practice

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SWOT ANALYSIS
STRENGTHS WEAKNESSES
 Established Dealer Network
 Well equipped factory
 Expertise Supervision
 New product for Sri Lanka
Manufacturing Industry
 Very New Labors
OPPORTUNITIES THREATS
 No Consistency of the available
brands.
 Cheating by the Exporters
 Changes in the customers
preferences.
 Establish the Brand Name
MARKETING STRATEGY
MARKETING MIX
PRODUCT
Ralhum Sports planing to provide lether balls to the Clubs, School, Coaches and
Domestric Cricket Boadies with all catogary of products like Match Ball Practice Ball, Indoor
Ball junior Ball and womens lether ball, Since Ralhum sports is goin to manufacture all type
of ball , we will be covering all the market segmentation. because the markets is very
compatitive with all the segmant which we afford to cover all of them, we decided to divide
the target market into the playing level requerment.

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PRICE
The prices of the balls that we offer are cheaper and affordable.Clubs and Schools usually
prefer for a cheaper Ball to With Consistant Qualityt . The price of the Balls are different
according to the their types and Grades :
Super Cavelier Match Balll White – 800.00
Super Cavelier Match Balll Red – 800.00
PLACE
As Ralhum Sports having a established dealer network we have decided to distribute the
product among the dealers and promote through them, that consumers all so will trust the
product as they have the trust on the distributors
PROMOTION
To promote the brand among the target audience we desided to sponsor for the colombo
distric school tournament and the Island wide 1st Division League tournamment.

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PRODUCTION PROCESS
These are the following process that required for the production of leather ball :
Leather, wool,
STEP 1: The Operation department of Ralhum Sports will deal with the suppliers and place
the order of ingredients/raw materials need to be use for making each type of the Balls .
STEP 2: Then department will choose and select the best quality of raw materials to produce
Balls.
STEP 3: The department will purchase all the raw materials that have been chosen for
making the Balls .
STEP 4: After purchasing the raw materials, we will divide all the ingredients based on the
type of Balls .
STEP 5: Next, we cut and devide in to the need full sizes.
STEP 6: Make the balls buy striching acording to the sizes
STEP 7: Make the Colours Defereciation
STEP 8 : Put the Size and the modle No on the ball to differentiate between each types of
Balls .
STEP 8: Deliver to the Packaging Depart Ment
STEP 9 : Packeg the products with 6 balls per box
STEP 10 : Deliver to the Stores

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RAW MATERIALS
Ralhum Sports produces 5 types of Balls which are . The following are details for
raw material (ingredient) use to make sandwiches.
TYPES OF Balls Super Cavelier
Match Balll
White
Super Cavelier
Match Balll
White
RAW
MATERIALS
Leather
Wool
Tallow
Yaan
Rubber
Colour
Leather
Wool
Tallow
Yaan
Rubber
Colour
COST PRICE PER UNIT QUANTITY TYPE OF COST
Leather 32 80Meter Variable
Wool 20 5 Meter Variable
Yaan 18 5 Meter Variable
Rubber 8 30g Variable
Tallow 4.25 20g Variable
Card Board 3.30 1 M Variable
Colour 2 150 ml Variable
Direct Labor 75 Per Hour Variable

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CLASSIFICATION OF PRODUCT COST
VARIABLE COST PER UNIT
We rounded off the cost per unit to two decimal places.
Item Types of Balls
Super Cavelier
White
Super Cavelier
Red
Leather 32 32
Wool 20 20
Yaan 18 18
Tawla 4.25 4.25
Rubber 8 8
Colour 2 2
Card Board 3.30 3.30
Direct Labor 75 75
Total Variable Cost
Per Unit
162.55 162.55
Indirect Labor 3000 Per Week Fixed
Rent 6000 Per Week Fixed
Transportation 2000 Per Week Fixed
Advertisement 10000 Per Month Fixed

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FIXED COST
Price Quantity Total Cost Total Fixed Cost Per Unit
Indirect Labor 3000 Per Week 12000
69000
162.55
= 424.48
Rent 6000 Per Week 24000
Transportation 2000 Per Week 8000
Advertisement 25000 Per Month 25000
69000.00
BEP Analysis
Ralhum Sports will have 25% price mark up for each products therefore the price will be
162.55 + 424.48 = 587.3
Selling Price = 587.5 * 0.75 = 783 .00
And will round it as = 800.00
BEP in Units = 69000
800-162.55
= 108 units for both products
BEP in Value =800*108
= 86400/= for each products

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Cash Budget
Ralhum Sports
First Quarter
Jan Feb March
Opening Balance
Income
Cash from Sales
Credit Slaes
Total Cash
300000
320000
180000
400000
517215
400000
40000
440000
758175
240000
240000
Expenditure
Variable Cost
Fixed Cost
Total Expenditure
113785
69000
182785
130040
69000
199040
97530
69000
166530
Net Cash Flow 217215 240960 73470
Clossing Balance 517215 758175 831645

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BUDGETED INCOME STATEMENTS
Ralhum Sports
Budgeted Income Statement
For the 1st
Quarter
Sales revenue
183855
157500
72000
1080000
(413355)
Cost of goods sold:
Cost of purchases
Direct labor costs
Production overhead costs
Rent
Total cost of goods sold
Gross margin
75000
24000
666645
(99000)
Other income and expenses:
Selling and administrative
Transport
Total expenses
Net Income 567645
.

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.
CONCLUSION
This business project proved to be helpful to all. I was able to plan and execute a
business in detail even the business is New and its showing that can get good profit . From
the report, i have learnt a lot about the process of starting up a business. i gained a lot of
experience how to handle the business as well as the operation and what a business has to
undergo to become successful by conducting this report. In addition, i have also learnt about
the risk we have to face and how to overcome the risks. Through perseverance and hard
work, I was successful to achieve our budget. This project also helps to enhance My
entrepreneurship skills. In the near future, I am looking forward to continue this business
venture.

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