For new business Entrepreneur

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GROUP NAME: CORPORATE GENIUS
COURSE TITLE: STRATEGIC MANAGEMENT
COURSE ID: MGT490
SECTION: 05
SEMESTER: AUTUMN2016
DATE OF SUBMISSION: 28 NOVEMBER 2016
TOPIC- A BUSINESS PLAN ON RECYCLE PLASTIC BOTTLE TO CLOTH
Submitted By
ID NAME
1330265 OMAR SAAD
1320789 MOSFIQUR RAHMAN SHISHIR
1420656 ZOEB HASAN
1421259 ABDUL AZIZ SARUP
1330668 MD SHAHIMUL EHSAN ULLAS
1321464 SHUBHA BARUA CHOWDHURY
SUBMITTED
TO
MD. RAJIB RAHMAN
Senior Lecturer [School of Business]

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TABLE OF CONTENT
NO CONENT PAGE NO
1 EXECUTIVE SUMMARY 3
2 THE BUSINESS DESCIPTION 4
3 THE PRODUCT AND SERVICE 4
4 BUSINESS ENVIRONMENT AND
INDUSTRY ANALYSIS
5-6
5 MARKET ANALYSIS 6
6 SALES AND MARKETING PLAN 7
7 OPERATIONS PLAN 7-8
8 MANAGEMENT SUMMARY 9-10
9 FINANCIAL PLAN 10
10 THE LOAN PROPOSAL 10
11 RISK MANAGEMENT PLAN 11
12 CONCLUSION 11
13 APPENDIX, ATTACHMENTS AND
MILESTONES
12
14 REFERENCE 13

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Executive Summary
We are Garments Company and we make cloths through recycling plastic bottles.
Our business name is eco-apparel& composite and our garments is located in
Saver. We produce mainly T shirt & jacket. Our product is more durable,
comfortable and our jacket is water resistant. Internal and external factors create
some positive and negative impact on our business. Garments industry is in
growing trend since major export earning In Bangladesh are from garments
industry. Therefore it is a key opportunity for our garments company to export
our product in foreign market. Also the entry barrier is high in garments industry
therefore there is high possibility for existing company for success. As we will be
producing our products in a innovative way, and since our local employees are
not skilled enough therefore we will be in sourcing our skilled labor force from
china so that they can operate more efficiently and effectively. Since we are new
in garments industry and it’s a long term investment we took loans from bank to
finance our expenditure. Our initial investment 10,000,000tk and we took loan
from bank and invest from personal saving of our each member. We allocate our
funds mainly in rent, salaries, production, advertising etc. We take loan of
7000,000tk fromBank Asia and our 6 members havecontributed 500,000tk each
from their savings. We showed some collateral to bank for taking loan.
The Business Description
Eco-apparel is a garment company that produces cloth through recycling plastic
bottle. It is first company in Bangladesh that produces cloth in a innovative way.
We produce t shirt, jacket and pant. Since we make the cloth through recycle
therefore our production cost is lower. Our company will be located in Gaspar.
The purpose of our business is to serve customers and to achieve return on
investment. The legal form of our business is Corporation, the reason we choose
corporation because members are liable up to their investment and corporation

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has perpetual life. We will serve both Business to business (B2B) market and
Business to consumer market (B2C) market, because we take orders from other
countries and also we sell to consumer through retail shop. Our target customer is
middle class and our product benefit will be durable, comfortable and water
resistant. Our business is both manufacturing and retailing business because we
are producing the cloth and we have our own retail shop. Our core competency is
a manufacturing process because our product has least defect.
The Product and Service
Our Business is about Garment Company which produces cloth through recycling
plastic bottles. We are currently producing jacket t-shirt and pants. In the future
we will produce other types of products like shirt, cap, bags etc. Our recycling
productis one of the mosttechnologically advanced and durable product. We are
cost efficient and we offer durable product with low price compared to other
apparel garments.
Features-Light weight, Durable and comfortable
Size-We will make almost every size of clothes in our factory. We provide S, M, L,
XL and XXL
Color- Red, Blue, Maroon, Purple, Violet, Yellow, Magenta, Black etc.
The reason people will be using our product because we offer least defect
products, Durable products in a reasonable price compared to other company
products
Unique Selling proposition: We offer water resistant jacket and T shirt

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Business Environment Analysis
Garments industry now dominates the modern economy in export earnings.
Given the dominance of the sector in the overall modern economy of Bangladesh,
this vulnerability should be a matter of some concern to the policymakers in
Bangladesh.
“Eco Apparel and Composite” will be producing (Jeans, Jackets and t shirt) from a
full new concept such as “Recycling Bottles”. This is a new concept in terms of
Bangladeshi RMG sector but sustainable clothing had been a very effective and
efficient way of producing RMG products for countries like China, Germany and
USA. Due to low raw material cost, Eco Apparel and Composite will fit into RMG
sector perfectly.
The Characteristics of Our Industry
Economic Environment: The economic environment factor consists of external
factors in a business' market and the broader economy that can influence a
business. For middle class and higher middle class income economy like
Bangladesh, factors like inflation, interest rates, economic growth, the
unemployment rate and policies, and the business cycle is fit for our green and
eco-friendly RMG sector. If there is a growth in the economy, people would be
encouraged in buying our products since the standard of living of people would
increase. We believe green product usage practice will boost economic growth.
Competitive Rivalry: Patagonia, D-grade, Mountain Equipment Coop (MEC),
REI, the North Face etc. are producing same product we will be producing, in
different foreign markets. Large clothing retailers in the UK, like Marks & Spencer
have also started to use recycled polyester in some of their clothing ranges..

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Entry/Exit barriers: Capital Requirement to start a company of this kind of
industry is very high. Because this is not like regular RMG factories, high tech
machineries are required to recycle the bottles. To exit the industry will also not
be easy as public image will be negative as we will be closing a company which
used to benefit the environment
Technological Change: Compared to RMG sector this is more technologically
advanced as we haveto be always concerned how more efficiently we can recycle
the bottles and make them to apparels. Like, Patagonia, a recycle polyester
productmanufacturer, invested $3 million annually in research and development,
which includes a lab developing and testing new materials. They have developed
many fabrics that have been adopted across the industry.
Technological change can bring about advantages and opportunities for
businesses. Obviously, new technology can create new products and services,
thereby creating entire new markets for a business. Moreover, improvements in
technological products and processes can increase productivity and reduce costs
Resource Requirements: Polyester textile recycling has been developed using
the clear plastic water bottles, or PET as the raw material, a source of plastic that
would otherwise go into landfill. The most common form of textiles made using
recycled polyester is fleece, a knitted pile fabric often used by outdoor clothing
companies to make jackets.
Using recycled polyester reduces our dependence on petroleum as a source of
raw materials. It helps to promote new recycling streams for polyester clothing
that is no longer wearable. And it causes less air, water and soil contamination
compared to using non-recycled polyester
Market Analysis
Our target customer is middle class family who mainly lived in Dhaka and
Chittagong, mainly the urban people. Our target customer age are between 15-40

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years, income level 15000-50000tk, and customer whose personality is
extroverted. Our t shirt will be both for male and female.
Market size is big since because there are lot of customer who are interested in
recycle product. We sell our products both locally and internationally. Also our
product is for mass people therefore market size is large.
Market growth rate is moderately highly in garments industry its maintaining
6% annual average GDP growth rate
Sales and Marketing plan
Our business is making clothes by using plastic bottles. We are recycling plastic
bottles for making our products. Our business strategy is business to business
(B2B) and business to consumer (B2C) both. Because we sale our product within
the country and we take orders from another countries or companies. We
manufacture the product at our own industry.
Our marketing strategy will focus heavily on sales promotion for our country
retailer shop, mass positioning in the market and customer service with loyalty
and retention in sales.
• The marketing budget will not exceed 5% of our gross annual sales.
• Our promotions will always stay in tune with our company objectives and
mission statement.

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Operations plan
Facilities
 A large factory in Saver covering 26472 sift areas
 Safety measures (Emergency Exit in every floor and Fire extinguisher in
every corner)
 Our factory buildings are 100% secure within 8 Richter scale of earthquake
 We produce 20% of our electricity using solar system
We will contract with the suppliers who can supply the raw material as quickly as
we want. The raw material contains post consumer beverage bottles and other
plastic materials.
Recycling Process
We will first gather plastic bottles. The caps and labels are removed, and the
bottles are washed and sterilized so they are clean and ready for manufacturing.
Once washed, sterilized and clean the recyclable plastic bottles are bundled
together. They are then crushed and chopped into tiny plastic flakes, much like
sawdust. The plastic flakes are then poured into huge vats, melted and stirred
until they become a thick liquid. The liquid is then pushed through a sieve-like
machine, forming long, thin, plastic strands. The fibrous plastic strands are
stretched and manipulated to become strong polyester fiber. This fiber is then
knitted or woven into fabric.
Steps to produce raw materials into final product:
1. Plastic bottles are collected
2. Bottles are Shredded into flakes and treated and reformulated
3. The flakes are then converted into pellets
4. Pellets are melted

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5. Liquid Pellets are then Spun into polyester yarn
6. The yarn then is made into sheet of polyester
7. The sheet of polyester is then used to make our garment products
Materials: Eco Apparel and Composite will travel the globe in search of the best
materials for our clothing, accessories and luggage. When the best isn’t good
enough to meet the need, we work closely with our suppliers to develop
outstanding new fabrics
Pricing Strategy We are using penetration pricing Strategy which is offering low
cost to customer, so that customer feels interest in buying our quality product at
low price. Our main objective of such pricing is to grab market share.
Management summary-
ce0ce
Ceo( omar)
Purchase(Ullas) Finance(Zoeb) Manager(Shishir) Marketing(Sarup
)
Raw materials
Stores(shubha)
Electronic data
processing
accounts
Export document
Operation merchandi
sing
Producti
on
QC
Planning
Process control
fabric
sewing
sampling

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Designation of owner’s in organizational chart
Chief Operating Officer- Omar Saad
Finance Department- Zoeb Hasan
Purchase Department- Md shahimul Ehsan Ullas
Production and Operation Manager- Mosfiqur Rahman shishir
Marketing- Abdul aziz sarup
Store Manager- Shubha barua chowdhury
Our organization follows tall organization structure. We decided to make tall
organization structure because span of control is less, therefore manager can
concentrate more on individually. Each member who hold the higher position
have completed their masters degree, and have decent knowledge about
garments industry. Also our employees are highly trained and they have technical
skills about the work.
Financial Plan
A financial plan is a comprehensive evaluation of an investor's current and future
financial state by using currently known variables to predict future cash flows,
asset values and withdrawal plans.
We are not started or implement our business plan. That’s why our financial part
will be general assumption for next one year
We need 10,000,000tk for initialinvestment, among it we took loan of 7000,000tk
from bank Asia, and owners equity is 3000,000tk.

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General Assumption for Next One year Budget
Expenditure Amount (tk)
Rent of Asset 2,00,000/=
Buy Machinery 15,00,000/=
Production Cost 40,00,000/=-
Salaries and wages 15,00,000/=
Utility charge 5,00,000/=
Advertising expenses 15,00,000/=
Other Expenses 8,00,000/=
Bank Loan Proposal
We require 10,000,000 TK for initial investment capital to start up our business,
and we have and owners equity of 3000,000tk, therefore we need 7000,000tk as
bank loan. We mainly need this loan to give rent, buy machinery, pay salaries and
expense and run day to day expense.
Risk Management Plan
There are various risk associated with our garments company. Such risk include
Fire, earthquake, workplace accident etc. however Risk can’t be eliminated , it
can be reduce. We takes various steps to reduce the risk such as putting
emergency phone number in the wall board, fire extinguisher at every corner and
a emergency exit. However we mainly did insurance of fire and machinery from
green-delta insurance company. Through insurance we are minimizing the major
risk associate with our garments company.

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Conclusion
Our brand eco-apparel is the top brands in the garments industry. Since entire
garments industry is growing we have more profit potential in this industry. We
are environmental concern therefore we produce clothing in a innovative way
Also due to high entry/exit barriers it is difficult for new garments company to
enter in the industry, Also we are contact manufacturer too., we take order from
other countries to produce custom t shirt and jackets and pants In the future we
want to expand our operation in international countries to grab more market
share and increase the profit. Since entire garments industry is growing we have
more profit potential in this industry.

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Appendix
Raw materials
Machinery
Finish Product

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Reference
1. http://www.garmentsmerchandising.com/readymade-garments-industry-
of-bangladesh/
2. http://archive.dhakatribune.com/long-form/2014/sep/19/rmg-industry-
bangladesh-past-present-and-future
3. http://www.netmba.com/marketing/market/segmentation/
4. http://repreve.com/our-process