Prepared for:
Maruf-Ibne Wali
Lecturer
Department of Management
North South University
Prepared by:
Name
Mohammed Sirajul Anwar
Lijan Khan
Ismat Zerin Sachi
Ariful Islam
Md. Sayemuzzaman
ID
132 0992 630
132 0951 030
122 0969 030
132 1721 030
142 0333 030
Report Submission on Business Plan
11 December, 2016
11 December, 2016
Maruf-Ibne Wali
Lecturer,
Department of Management
School of Business
North South University
Subject: Submission of a report on formal Business plan
Dear Sir:
Here is the report that you assigned on the topic as per your request. The assignment has been
completed by the knowledge that we have gathered from the course MGT 368 “Entrepreneurship”.
We are thankful to all those persons who provided us important information and gave us
valuable advices. We would be happy if you read the report carefully and we will be trying to
answer all the questions that you have about the report.
We have tried our level best to complete this report meaningfully and correctly, as much as
possible. We do believe that our tiresome effort will help you to get ahead with this sort of
venture. In this case it will be meaningful to us. However, if you need any assistance in
interpreting this assignment please contact us without any kind of hesitation.
Yours Sincerely,
Mohammed Sirajul Anwar
Lijan Khan
Ismat Zareen Sachi
Ariful Islam
Md. Sayemuzzaman
Executive Summary
We have done this report on opening a new business plan. We will be five entrepreneurs who
will be opening a new company named “Purnota Group”. Under this group we will start
producing packaged cake named “Tasty Cake”. We hava done a thorough plan on starting this
business. From starting investment to forecasting revenue everything is done on the report.
Initially, we are thinking of investing a figure of 13.5 crore taka. We will have our own factories,
transports, land and labor. We will be outsourcing for the raw materials only. After we get the
raw materials we will produce the cake in our own machine and distribute the supplies with our
transport to all over Bangladesh. Retailers will take the products and sell it to the customers. We
wont be having any wholesaler. All the assumptions are shown in the report along with
marketing and HR strategies. Hopefully, the report will answer more elaborately about our
product.
Table of Content
Topic
Page
Introduction
Name and Address of the Principals
Nature of the Business
Statement of Financing
Statement of Confidentiality
Business Canvas Model
Pricing Model
Social Goal
Sustainability
Eco-friendly
Ethical
Business environment Analysis
PESTEL Analysis
Porter’s Five Forces Model
SWOT Analysis
Stakeholder’s Analysis
Description of Venture
Background of Entrepreneurs
Marketing Plan
Production Plan
Operational Plan
Organizational Plan
Human Resource Management Plan
Risk Management Plan
Financial Plan
Conclusion
1
3
4
4
5
6
7
7
7
8
8
9
10
14
17
19
21
23
26
30
31
33
37
53
54
58
Introduction
of
Purnota Group
1
Purnota Group
Head Office
279/B, Uttara
Dhaka-1200
E-mail: purnota.group@gmail.com
Website: www.purnota.com
Product Name
Tasty Cake
2
Name and Address of the Principals
Mohammed Sirajul Anwar
Malibagh, Dhaka
E-mail: anwar.sirajul@gmail.com
Ismat Zerin Sachi
Khilgaon, Dhaka
E-mail: zerin.sachi@gmail.com
Lijan Khan
Nikunjo, Dhaka
E-mail: ligon.khan@gmail.com
Md. Sayemuzzaman
Malibagh, Dhaka
E-mail: sayemuzzamanpappu@gmail.com
Ariful Islam
Uttara, Dhaka
E-mail: afyead@yahoo.com
3
Nature of the Business
We will be producing products under the name of Purnota Group. Initially, we will be producing
cakes by using different flavours and distribute it to the retailers in the market. It will be a
partnership business between 5 entrepreneurs. We will not only produce a good quality and
flavorful cake but also make it nutritious which will help the people recover from malnutrition.
Statement of Financing Needed
Initially, we will be needing taka 14 crore to start. We the partners will contribute in this amount
and the rest will be taken loan from the bank. This will cover the space cost of office and factory,
equipment, employee, transport and promotional activities.
Also to be noted the chairperson will contribute 30%, 3 partenrs will invest 20% and last partner
will invest 10%. Rest of the money needed will be taken as loan. In total our own investment will
be 10 crore taka and 4 crore will be taken as loan from UCBL.
4
Statement of Confidentiality off Report
This agreement is to acknowledge that the information provided by Purnota Group in this
business plan is unique to this business and confidential; therefore, anyone reading this plan
agrees not to disclose any of the information in this business plan without the express written
permission of the company.
It is also acknowledged by the reader of this business plan that the information furnished in this
business plan, other than information that is in the public domain, may cause serious harm or
damage to Purnota Group and will be kept in the strictest confidence.
Upon request, this document is to be immediately returned to Purnota Group.
Mohammed Sirajul Anwar
Chairman
Purnota Group
5
Business Canvas Model for Tasty Cake
Key Partners
Key Activities
Value Proposition
-Raw material
supplier
-Promotional
activities
-Variety of cakes
with different
flavors
-Machine supplier -Preparing food
-Legal advisor
-Selling products
-Retailers
-Communicating with
customers
-Employee
-Cost effective
-Fresh taste
Customer Relations
-Friendly behavior
-Guarantee of the
products
-Availability of
product
-Maintain
relationship with the
customer
-Observing all
activities
-Cash collection
Key Resources
Channel
-Financial assets
-Direct and indirect
-Human resources
Tangible AssetsMachineries, Land,
Factory, Transport
6
Customer Segment
-Lower class
people
-Middle class
people
Pricing Model
Tasty cake is
targeting lower and middle category people. This category people are lower income
earners and they are too much price sensitive. They represent the (65.8%) of the total population
of Bangladesh. Therefore, we believe that if we increase the volume of our production and place
it in the market; we can generate more profit in the bakery sector despite having lots of
competitors. As in the rural area, people prefer products at a cheap price, therefore there is high
profitability margin for
Tasty cake.
market penetration strategy for
After carefully observing the market, we have decided to use
Tasty cake.
Lower and middle category people tend to think
less on the product quality rather pricing issue is the first that come in their mind. We will
establish a plant where our cakes will be produced in a more efficient manner. It will be
beneficial for us because of the economies of scale. Also we will not be spending on the
packaging. Overall, our production cost will be lower to meet the market demand and low is a
great strategy to win market share in Bangladesh because rural people prefer cost effective
products.
Social Goal
We have previously mentioned that our product will be more nutritious than others. It will not
only kill the appetite but also help the society to diminish the malnutrition problem. Malnutrition
is one of the major concerns especially for children and women in our country. According to
UNICEF and WFT, millions of children are suffering from acute malnutrition in Bangladesh.
The WORLD FOOD PROGRAME said almost 41% of children (approx. 7 million) under the
age of 5 are chronically undernourished and around 53000 children die every year due to
complication related to malnutrition.
Our product can play a vital role in recovering the situation. It might not totally diminish the
problem but can make the situation better. It is not much expensive so majority can afford to eat
it. Socially, we thought it was a need for our country.
Sustainability
Any business has the risk of incurring loss. It is said to be a gamble but we think our product will
be able to sustain the market. It is such a product which customers eat a lot. From departmental
stores to road side shops everywhere people eat cakes and buns. It is a common thing in a
majority people’s menu in day to day life. We have to promote our product so that people know
about our product’s feature and benefit. It will be good for everyone’s health so we believe it
wont be a loss project.
7
Eco-friendly
Eco-friendly is a big issue nowadays in our society. In making our product there is not much
harm to the nature. We will make sure during production no such issues arise. One thing is there
and that is packaging of the product. We need to pack the cake in a cover. We will make sure we
pack the cake with such materials which will dissolve in the land and not create any problem to
the society.
Ethical
In Bangladesh ethics is a big issue in current scenario. We will make sure whatever we promise
to our customers, we will serve them accordingly. There will be no shortage of anything. We will
take permission from the government before proceeding to production. BSTI will approve our
product before we come to the market. We will make sure we pay all the taxes and VAT
properly.
8
BUSINESS ENVIRONMENT ANALYSIS OF
“Tasty Cake”
Future outlooks & Trends
Bakery products are popular worldwide. Breads and biscuits are the most consumed products,
but demand for other bakery items such as cakes, pastries, and cookies is also increasing. The
demand of the Cake and Pasty in Bangladesh is increasing day by day. Because of, the economic
situation and the total GDP of Bangladesh is growing up. It is indicating that our total income
level is stronger than previous time. As a result, when the income level of a country is increased
then we can say that, the demand of luxury product is also increased. Due to our income level
situation, a branded Cake and Pasty is not luxury for us. So we believe that setting up a cake
manufacturing factory is a good decision for us.
The analysts forecast global bakery market to grow at a CAGR of 7.04% over the period 20142019.
Reference: Bakery Companies in Bangladesh.(June,2014). Retrieved
fromhttps://companylist.org/Bangladesh/Food_Beverage/Bakery/
9
PESTEL Analysis
The PESTLE Analysis is a tool that is used to identify and analyze the key drivers of change in
the strategic or business environment. The abbreviation stands for Political, Economic, Social,
Technological, Legal, and Environmental factors. The tool allows the assessing of the current
environment and potential changes. PESTLE analysis is an important tool to measure the current
macro environmental issues. The assumption is that if the business is able to audit its current
environment and assess potential changes, it will be better placed than its competitors to respond
to changes. A PESTLE analysis is a useful tool for understanding the ‘big picture’ of the
environment in which a business is operating.
Political
Political factors are how and to what degree a government intervenes in the economy.
Specifically, political factors include areas such as tax policy, labor law, environmental law,
10
trade restrictions, tariffs, and political stability. In Bangladesh politics has a huge influence over
the market. Any changes in the trading policies, rules and regulations, changes in taxation policy
can affect our business. We will face problem if government employ extra taxes on us which in
future will force us to raise the price of our product.
Moreover, if the political unrest is higher people are tending to purchase less. But the political
situation in 2016 is stable and if the political situation goes well this will help our company to
grow by a greater profit.
Economical
Economic factors include economic growth, interest rates, exchange rates and the inflation rate.
The economic changes can create a long term effects on our business. The rise in the inflation
rate of Bangladeshi economy would affect the way we are pricing our products. Business loan is
one of the sources of capital in our business. If the interest rate decreases, it is very beneficial for
the business to sustain and operate. On the other hand, high interest rate will not motivate to take
loan and expand the business in a broader version. Between 2007 and 2014, Bangladesh
averaged a Real GDP growth rate of 6.05% and projected to be 6.7% in 2020. Corporate tax rate
is 45%, and tariff is 13%. Globalization affects our local economy, as Bangladesh; 7.5% inflation
exists, which is positive (“2015 Index of Economic Forum, 2015).
Source: Bangladesh GDP Growth Rate. (2016, October 15). Retrieved from
http://www.tradingeconomics.com/bangladesh/gdp-growth.
11
Social
Most of the people in rural areas are following the religion Islam. Besides, Islam there are people
who are following the religion of Hindu, Buddha and christen. So, the views of religions play a
great role behind the “core beliefs” of rural people in Bangladesh. Their core beliefs are like
using 100% halal products, eating halal foods, following the rules of religion, respecting the
elder people, following the Islamic rules for banking, celebrating the religious festivals with new
clothes, So, the core beliefs play a great role in their consumption process. Moreover, we are
trying to provide the basic necessity of customers that is food with adding nutrition. When
customers feel hungry, our product will fulfill their needs by providing extra nutrition. We are
hiring employees and labors so that they can get job opportunities and it will less the
unemployment rate.
Technology
The Technological environment is the most dramatic force that is shaping the destiny of a
country. New technologies create new markets and opportunities. The country that is
technologically advanced can easily cope up with the changes in any type of environment.
As a low income economy Bangladesh is not well develop in technological sector. So it is very
tough for us to get all kind of technological support from Bangladesh. Moreover, there have
some shortage of skilled engineer for solving the technical problem. As a result, we are bound to
purchase our machinery from abroad. Our all the machineries will be imported and they are also
updated and modern. But recently government takes some initiative to improve its Technological
sector. Major Banks and financial institute develop their IT department and use internet banking
for their daily operation. The technological advancement and Internet has powerful impact on
our company. It allows us to make websites, and presence on social media.
12
Environmental
we are trying to provide the basic necessity of customers that is food with adding nutrition. We
are combining vitamins and different fruit essences. Our main purpose is think about
customer’s health. Whatever we are serving it should eco-friendly for everyone.
Legal
The existing Bangladeshi legal legislation in force is as follows:

Bangladesh Factories Act, 1965

Bangladesh Factories Rules,1979

Bangladesh Labor Act 2006

Bangladesh Labor Rules 2015

Patent & Design Act of 1911

Patent & Design Rule of 1933

Copyright Act of 1999

Trademark Act of 1940
13
Porter’s Five Forces Model
Porter's Five Forces is a tool that analyzes the business framework to understand the level of
competition within an industry.
Competitive Rivalry
Tasty Cake is a concept that is familiar in the food and bakery industry but because of its
uniqueness it is completely different from other competitors and that uniqueness is healthy
ingredients in the cake. Nevertheless, there are competitors lie COCOLA, Tiffin, All TIME and
some local product seller without proper packaging who have also products like cupcakes, sweet
buns, chocolate cake which could be potential threat for our company. The local product cakes
are high on demand in the minds lower income customers as they have a high thought of the
price before purchasing. But the local products problem is they are unhygienic and there is no
assurance of the product quality as well chances of expiration of the product. From the
14
established brands like COCOLA, Tiffin, All TIME, Tasty Cake might face problems
competing with them in the market. But none of these company have no strong ingredients
regarding health benefits Therefore, our company has an advantage over the competitors because
of the proper packaging, delicious flavor and high quality.
Bargaining power of Buyers
Bargaining power of the buyers for Tasty Cake is comparatively low. As there are no wellorganized brands which provide health ingredients and also maintains the quality and taste so
that our price in the market is competitive and there are no direct competitors in the market.
Bargaining power of Suppliers
Bargaining power of the suppliers for Tasty Cake is again comparatively low. The raw materials
that we need are- Egg, Flour, Baking Powder, Vanila Essence, Coco Powder, and Health
Ingredients. These raw materials are heavily available in the market and There doesn’t exist only
monopoly supplier because there are other brands which they are supplying similar types of raw
materials. Therefore, our company wouldn’t face pressure from the suppliers.
Threat of Substitutes
The threat of Substitutes for our products medium. There are some substitute products like All
TIME Jelly Bun, ALL TIME Peanut Bun, Milky Biscuits and some local biscuits which
consumers likely to consume more often. But except the branded products not all the products
ensure highest quality standard. Therefore, we get an opportunity to dominate.
15
Threat of New Entrants
The threat of Substitutes for Tasty Cake is medium. New marketer can copy our idea and charge
a smaller price than us after our brand has been existed in the market. The positive side is they
might get advantage over the price but the negative aspect is that they can’t maintain the quality.
The price that we are charging for the product is standard and ensures the quality. As we are
completely new with the nutrition concept in the bakery industry, therefore we will get
advantage to become the first company to establish our brand in the mind of the customer.
16
SWOT Analysis
• Cost effective than
other competitors.
• Completely New
product filled with
Health Benefits.
• Fullfil hunger.
• Not having
enough transport
to supply the
prouct all over
Bangladesh
Stengths
Weakness
Opportunity
Threats
• People are now
highly conscious
of their health.
• No products in the
cake industry with
health benefits.
• Competitors can
easliy imitate.
• Some
competitors can
create problem
for the
sustainability in
the market
• No control over
the shops
Strengths
Marketing for "tasty cake " will be an innovative one as such marketing policies are not rendered
by existing companies making cakes . The marketing plan is a key function for our new venture
17
to catch the eye of the consumer. Once the customers know about the product the business will
be a successful one.




Customized packaging with an affordable price range
Good trained workforce inside the shop
A well established customer service center with 24/7 support
More organized security service personnel
Weakness
For our convenience of supplying we have already decided to open two factories in separate
place. We will also have a separate distribution department but still we don’t have enough
resources available to deliver our product in every corner of Bangladesh. We hope slowly but
gradually we will be able to buy enough transport for distributing our products.
Opportunities
A big chunk of people lives in Bangladesh doesn’t have breakfast at home. Or if they do also
then later on they come out to drink tea at the store near their home/office on the streets. That
time they prefer eating cakes or biscuits with tea. Anytime if anyone is hungry then they visit a
tea stall and have a cake and tea. So, we believe it is a running product and have he demand. We
just need to grab the market share with our innovativeness.
Threat
The first threat is composed of the competitors. There are already established brands like “All
Time” and “Dan Cake” in the industry. For a small scale business like "Tasty cake" it will be
difficult for us to compete with such recognized brands in the market.
The cost of raw materials are rising day by day due to inflationary pressure and these are factors
that are out of the reach of the venture.
The inflation rate would particularly put pressure on the labor costs.
 New competitors may rise due to the lucrative opportunity in this business
 Local people or organization may create obstacles for doing the business
18
Stakeholder Analysis
Stakeholders of our firms are as follows
1. Shareholders
2. Partners
3. Customers
4. Suppliers
5. Employees
6. Government
7. The public
8. Local government
Among the stakeholders, high power holds the followed

Shareholders

Lenders

Government

Customers
Our stakeholders are the person, group or organization that has interest or concern in our
organization. Stakeholders can affect or be affected by our organization's actions. The
major stakeholders of our organization are:
Customers
Customers’ interaction is vital for this business as the motive has to be diverting loyal customers
from the existing sellers to us. After sales services has to be provided with optimum care. Long
term relationship is important in this business as customers do go word of mouth which is most
effective in any industry. Our sales team will be most hospitable in handling our customers and
building long term relationships
19
Suppliers
Utmost communication has to be maintained with the suppliers to ensure just in time supply of
goods. Negotiations need to be well handled in maintaining a profit incentive for both parties. As
said before big manufacturers may be difficult to negotiate with as they have quite an upper hand
but it can be bypassed by diplomatic solutions.
Employees
We are going to have around hundred employees, building a good relationship with them and
make them loyal to our company. Hiring new employees frequently would cause inefficiency as
new employees would need more time in understanding the nature of the business and technical
knowledge about the product and the market.
Government
Government In our organization, we have to pay taxes and vat to the government. The
government interval can also affect the process of our business. So, to maintain a good
relationship with the government bodies such as National Board of Revenue (NBR) is very
important.
Prospective customers
To attract the prospective customer is very important. So, our promotional activities and
attractive packaging should be able to create awareness among the prospective customers. To
increase our market share, prospective customers are very important.
20
Mission: To provide quality product with different taste variation in an affordable price
Vision: To contribute in the society and diminish the problems
Products:
With the launch of our product ‘Tasty cake, we are addressing the basic necessity of customers
that is food, nutritious food. When customers feel hungry, our product ‘Tasty Cake’ will fulfill
their needs by providing different taste experience as well as extra nutrition. We are mainly
focusing on the consumers of socio economic basically who are mostly low income people and
purchase low quality foods at low price. Since they purchase low quality products which have
lack of nutritious ingredients, they suffer from malnutrition in their whole life. As a result, they
become price sensitive which influences them to purchase a lack of nutritional food, low quality
food, which leads them unhealthy. Our product ‘Tasty cake’ is only tk 10/- per piece which ensure
their affordability with nutrition.
Services: We want to serve our product- ‘Tasty Cake’ to the low income people.
However, low income people is our main concern as they need the cake more because the
consumers like farmers, rickshaw pullers, carpenters, labors belong to these classes are mainly
low income people. Due to poverty, they do not take proper healthy food, nutritious food in their
entire life. As a result they suffer from malnutrition and become weak by nature. Our main duty
is to fulfill their needs (hunger) with ‘Tasty Cake’, which provides them some additional
nutrition so that they could get the nutrition from it.
Size of Business: As we want to ensure nutrition to malnutrition people and we have a new
venture so at first we sell our product ‘Tasty cake to different types of shop. The shop owners buy
‘Tasty cake from us at a wholesale price .In the deep rural areas these types of shop can be a good
source as they give supply to isolated rural areas of the country at retail price. Customer won’t be
able to buy our product if it’s not available in the retail shops near them in rural areas. So in
order to meet the customer’s demand we will make sure that our product is available in every
shops where customers might visit.
21
Office equipments:
Office equipments for our company is giving below
 Office table
 Chairs
 Electrical things like lights, Fans etc
 Stationary
We plan to purchase all equipments to run our company office.
22
Background of entrepreneurs
Mohammed Sirajul Anwar
Sirajul Anwar Sakib has completed his O level , A levels and he is currently studying at North
South University major in Marketing and Human Resource Management.
23
Lijan Khan
Lijan Khan has completed his SSC and HSC and he is currently studying at North South
University major in Human Resource Management and Marketing.
Ismat Zerin Shochi
Ismat Zerin Shochi has completed her O level , A levels and she is currently studying at North
South University major in Human Resource Management and Marketing.
24
Ariful Islam
Ariful Islam has completed his SSC , HSC and he is currently studying at North South
University major in Accounting and Finance.
MD.Sayemuzzaman
MD. Sayemuzzaman has completed his SSC , HSC and he is currently studying at North
South University major in Accounting and Finance.
25
Marketing Plan
Customer Analysis:
With the launch of our product ‘Tasty Cake’, we are addressing the basic necessity of customers
that is food, with different flavor like chocolate flavor, strawberry flavor vanilla flavor cake.
When customers feel hungry, our product ‘Tasty Cake’ will fulfill their needs by providing
different fruit essence.
The customer group is divided into three different social classes according to income and they
are: Higher class, Middle class and Lower class. We are mainly focusing on the consumers of
socio economic class (lower and middle class) who are mostly low income people and purchase
low quality foods at low price. Since they purchase low quality products which have lack of
fresh ingredients, they suffer from malnutrition in their whole life. Furthermore, according to
their low income, the purchasing power of these two classes are very low. As a result, they
become price sensitive which influences them to purchase low quality food, which leads them
unhealthy. So under the limited income, they have to fulfill all physiological needs like hunger
by purchasing and using or consuming whatever they find in front.
We want to serve our product- ‘Tasty Cake’ to the lower and middle class people. However,
lower and middle class is our main concern as they need healthy food more because the
consumers like farmers, rickshaw pullers, carpenters, labors belong to these classes are mainly
low income people. Due to poverty, they do not take proper healthy food, nutritious food in their
entire life. As a result they suffer from various diseases also malnutrition become weak by
nature. Our main duty is to fulfill their needs (hunger) with ‘Tasty
cake,
which provides them
some additional benefits so that they became beneficial from it. As far as consumer’s perspective
is concerned, it’s a good opportunity for us because there is no a single brand who are providing
same benefits like us in the market. There are only few products in Bangladesh which provide
such benefits but price is high that the consumers of lower and middle class are not ready to pay
for that price. Furthermore, from talking to some consumers belonging to the bottom of the
pyramid, we have found that people are very enthusiastic to get healthy and hygienic foods
within their income capacity. The foods when they take while feeling hungry do not give them
proper nutrition. Furthermore, the companies of those foods do not maintain good quality and
26
taste in their products. So, here our brand ‘Tasty
cake’
has a greater opportunity to fix the
problems of those consumers belong to lower and middle class. If we launch our product ‘Tasty
cake’
and let them know about our product that it has the ability to provide some different fruit
essence to their children at low price, they will obviously buy our product and provide their
children during class break time or any time, so that within the short period children can eat
something healthy. So, in the conclusion, as far as consumer’s perspective is concerned, for all
aged group consumers who particularly look for different additional benefits, the ultimate
solution is ‘Tasty cake.
Product Description:
Our product is mainly small packaged cake which will be available in the roadside stores and
departmental stores around Bangladesh. The name of our cake is “Tasty cake”. It will be
available in different flavors which will attract our customers. It will also consist of nutrition but
it will not be highlighted, it will be our social goal.
Pricing:
Tasty Cake is targeting lower and middle category people. This category people are lower
income earners and they are too much price sensitive, so we have decided to set the price at 10
taka/piece. They represent the (65.8%) of the total population of Bangladesh. Therefore, we
believe that if we increase the volume of our production and place it in the market; we can
generate more profit in the bakery sector despite having lots of competitors. As in the rural area,
people prefer products at a cheap price, therefore there is high profitability margin for Tasty cake.
After carefully observing the market, we have decided to use market penetration strategy for
Tasty cake.
Lower and middle category people tend to think less on the product quality rather
pricing issue is the first that come in their mind. We will establish a plant where our cakes will
be produced in a more efficient manner. It will be beneficial for us because of the economies of
scale. Also we will not be spending on the packaging. Overall, our production cost will be lower
to meet the market demand and low is a great strategy to win market share in Bangladesh
because rural people prefer cost effective products.
27
Market Retail Price (MRP) and Trade Price (TP)
Production and Promotional
5.5 BDT
Cost
Trade Price(TP)
8 BDT/Per Piece
Market Retail Price(MRP)
10BDT/Per Piece
After analysis the market and the competitors, we have set the price of per piece Tasty Cake is
10BDT. In the bakery industry, there are lots of competitors like All TIME, COCOLA,
MILKY. They have different types of product and their prices tend to range from 5BDT12BDT.
Initially we will be following push marketing so in that time we will set the price in this way
given below:
We will offer Quantity Discount especially to retailers and tea stalls. Those who buy 20 Pieces
of Tasty cake will Pay us (20*8= 160BDT) . If any retailer or tea stall owner buys another 20
piece at the same time then we will provide them 25BDT discount. Therefore, they have to pay (
20*6.75 = 135BD. Then we will be charging 6.75tk for per Tasty cake . Despite providing the
incentives, we are having a profit of (6.75 -5.5= 1.25BDT) This will help us to attract more
retailers and tea stall owners to buy our product and sell it to the consumers
Distribution Plan:
We will be having two factories where we will be producing our cake. This decision is taken just
to ease out our distribution of products. One factory will be in Gazipur and the other will be in
Narayangonj. From Gazipur products will send to Dhaka, Sylhet and Rajshahi. Narayangonj will
serve Chittagong, Barisal and Khulna. From Gazipur all our products will be send to a place in
every district from where with small vans the cakes will be reached to the retailers. And from
Narayangonj cakes will transported to the three cities by river in bulk amount. We will have our
own trucks and vans. But the products which will be supplied through river will be rented. From
28
the designated cities our trucks will pick up the cakes and reach a point. From there with vans
our products will be distributed to the retailers.
Advertising and promotion plan:
Advertising:
 TVC:
We are going to focus on TV’s, which is well seen by the people of rural areas. As we have discussed in
the execution, we are going to put the show in the late afternoon even kids see the TV and in the evening
when they all family watched the TV. This will expose us to all the target market. The advertisement will
be frequent in the peak time. It is fundamentality important where the benefits the recognition of the
product can be drilled into the audio-visual of the mindset. .
 Point of purchase ad:
We will distribute different types of posters and banners to the retailers which they will put up in their
store for customer’s visual. This will attract the customers about our products and also replicate our
existence in the market.
 Sales Promotion:
This is a big factor for us. We will promote our product in Push strategy. We will be pushing the retailers
to promote our products and sell it as much as possible. They will obviously get extra benefit from it.
 Trade promotions:
In the time of launch, manufacturing profit will be changed from Trade Price enabling retailers to hike a
higher profit. This is a push strategy for our product to be stacked as inventory in their drops.
Prior to major national events like Eid-ul-Fitr, Eid-ul-Azha, Bengali New Year and similar events, we
share reduce the Trade Price; this is another pull strategy to evoke purchase of the retailers.
29
 Sponsoring:
We will going to sponsor micro infrastructure in the rural areas which will help the name of the brand in
the local market to see our brand as a helper. We will have stronger belief that what we are doing are the
right things for them, which includes our products. We will also try to sponsor a Bangladesh Cricket
Team’s international series which will give us a big exposure.
Production Plan
Manufacturing process:
Our manufacturing process will be followed in a sequential order. At first the delivery of raw materials
will be received from suppliers. It will be inspected properly by the production head. Then if it gets
approval, it will be sent to the factory to start production.
In factory we will have two separate production units. Mainly our products will be almost machine made
but still employees will be there to look after. One unit will be making dough for the cake and mixing it.
Then the machine will make the dough, bake it and make it ready for the cream. Second unit will be
making the cream/filling. When the cake is made the filling will be put inside the cake the machines in the
process. After the product is made, it will be directly send to other machine for packaging. It is a simple
and time efficient process.
Machinery and Equipment:
We will buy machine worth 50,000,000 taka. We will have 4 designated machines for each factory. 3 of
them will be producing full length and 4th one will be for back up.
Name of Suppliers of Raw Materials:
1) ACI
2) Milk Vita
3) Pran
4) Other small suppliers
30
Operational Plan
Months
Operational Plan
January
At the beginning we will hire legal advisor. This is for buying lands and
properties along with for doing all legal activities like making trade license ,
LCs etc. We will also hire a HR manager who will help us to forecast how
many employees are needed and to construct normal rules and regulation for
the company. Then HR will at first hire a equipment advisor who will help us
to buy the equipment and machineries to produce our product.
February
After the recruitment of machinery advisor we will go forward to order
machine from the country which our advisor refers. In the mid February we are
expecting that all the legal requirements will be fulfilled and our lands will be
acquired. Immediately after acquiring the land we will start to build the
factory.
March
Our HR manager will start hiring the employees gradually for our production
and staff. Time to time they will hire the employees according to the need.
April
Throughout April we wait for the pending task like building factory and
machineries to come. In the mean time we will search for our suppliers for our
production. And then we will contract with them to start supplying our
products from mid of May. At the end of the month we will buy the transport
needed to supply our product. As we are solely supplying our products so we
will have to start buying the transport. We will have a separate department for
distribution.
May
By the time machine comes our factory construction will be complete. Then
gradually all the machines will be set up. In the middle of we will start test
production. After test production our designated department will fix the price
and strategies.
June
If everything goes right then full length production will start from June. By the
mid of June we will be able to distribute our product in whole of Bangladesh.
Then from the 15th of June we will start our promotion. We are starting
promotion now because if customers know about our product but don’t find it
31
in the shops they wont get back to our product, hence they will forget. That’s
why we will start promotion after we have distributed our product in the whole
market. And eventually we will be ready to keep on supplying our products
when demand is there.
Flow of order:
We need at least seven days to produce and supply a certain quantity, so we will be taking orders
from our retailers at least seven days behind so that we can meet the demand and supply our
products to the retailers. After conducting our promotional activities we will review the market
demand and accordingly we will forecast the demand and produce the products as retailers
sometimes might not order properly. We will not solely depend on the retailers. Accordingly we
will contact our suppliers to supply the raw materials. To reduce our inventory cost we will
always try to forecast the demand and produce the product accordingly.
Business location:
Our main office will be situated in Uttara, Dhaka. From here all the activities will be observed
and the higher level executives will sit there. Our factories will be in Gazipur and Narayangonj.
Two factory locations are chosen to distribute the products efficiently. From Gazipur we will
distribute to Dhaka, Sylhet and Rajshahi. From Narayangonj we will distribute through river to
Chittagong, Barisal And Khulna. As we have our factories outside Dhaka we will get cheap
labor.
Equipment, technology, R&D and environmental aspects:
We already mentioned previously that we will have machine advisor for our technology and
equipment. According to his suggestions we will proceed. Like, Dough mixer, Dough sheeter ,
cream mixer, packaging etc. And we will produce the products hygienic. Our packets will be
environment friendly so that when people throw it, it gets mixed with the land.
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Organizational Plan
Form of Ownership
The form of business that Tasty Cake will follow is private ltd ownership as per there will be 5
partners and other employees who will be integrated with us. All the partners are accountable for
the business. The partners are equally severally liable for all debts of the Company established
with 5 partners. Therefore, we select this form of business. Each partner will contribute 10% to
30% as initial investment in business.
Identification of Partners:
The number of partners according to this business plan is fixed but in case there is a probability
of adding a new partner or multiple new partners the main things that will be taken under
consideration are:
 Quantity of investment.
 Capability of manage (if needed).
 Previous progressive experience in the same or similar field of business.
 Level of commitment towards the business.
Name,Address and nationality
Mohammad Sirajul Anwar
271/5 Malibagh
Dhaka-1217, Bangladesh
Lijan Khan
House No 3, Road No 1, Block
A, Khilkhet,Nikunjo
Dhaka, Bangladesh
IsmatZerinSachi
House No 329/A,
Khilgaon
Dhaka, Bangladesh
Md. Sayemuzzaman
Flat-5,Relative living,41/3,
Malibaghchowdhury para,
Dhaka-1219, Bangladesh
Ariful Islam
House No 69, Road,17
Sector : 11 Uttara
Dhaka,Bangladesh
No of shares taken by each
partner
30%
20%
20%
20%
10%
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Signature of the partner
Authority of Principals:
As our business ismainly a private business, we are planning to design to go for a
participative management style which contains all the board members. In terms of
power and control all the members of the board will be given equal rights to make
criticalmanaging and signing decision. Any sort of official paper work and document
must contain signature of all the members of our board.
Roles and Responsibilities of the members of the organization
Chairman
Mohammad Sirajul Anwar, the Chairman of Purnota Group who is elected by the all partners
of the company, who actually give the command over the invention and control all the sectors.
All the business partners and personnel’s are accountable to accomplish the responsibilities as
the chairmen stated. His main duty is to retain the suppliers to ensure the continuity of good
relations to them. The head of the company who actually controls all the partners’ ideaabout the
business and integrating the business components together and execute them efficientlyIt means
an individual evolving something exceptional. Its tasks are:
1. Initiative taking
2. The acceptance of risk or failure
3. Implementing business’s long and short term plans.
4. Making new and profitable strategies for the organization.
Head of production & operation
MD.Sayemuzzaman, isour Head of Production, and he has a complete and durable command
over Operational management and Production Analysis. Production manager mainly concern is
that describe the physical plant layout, the machinery and equipment needed to Perform
manufacturing operation; raw materials and suppliers names, address and terms, cost of
manufacturing. A production manager allocates the raw materials from different suppliers to
produce the final products. The responsibilities are

Purchasing the all staff of food with better quality from food market
34

Responsible for all the operations within the shops (cleanness, quality of food, timely
delivery to the customer)

Responsible all the food expenses recode

Responsible to works with all other managers

Managing Labor & controlling the production system.

Motivating the labors & making the reward opportunities.
Head of Marketing
LijanKhan, is our head of marketing, becausehe has completed his graduation on Marketing
major and he has good expertise over marketing. Marketing involve that executing decisions
related to the marketing mix variables products, price and promotion activities. It helps us to take
effective decision strategy as well as for forecasting sales, products or services is indicated in
order to project effectiveness of the venture. The main responsibilities are:

Reporting sales data to board members and stockholders.

Focus on the Customer

Monitor the Competition

Own the Brand.

Create New Ideas.

Communicate Internally.

Manage a Budget.

Set the Strategy, Plan the Attack, and Execute

Developing target markets and segmenting.
Head of Planning & Performance Management
IsmatZerinSachi, is our head of planning and performance management and she has the
strength to take effective decision and maintain the company’s performance. These department
officers consist of setting the goals and how to be achieving that goal, it also helps to develop the
existing product as well as new product. The responsibilities are:
35

Compensation / Benefit programs.

Succession Planning.

Career Development / Management Development

Staff Induction.

Staff Retention.

To facilitate development of staff with special focus on Line Management

To recommend and ensure implementation of Strategic directions for people development
within the organization.

Co-ordinate the design, implementation and administration of human resource policies
and activities to ensure the availability and effective utilization of human

Reward and Recognition.

Recruitment & Selection Policies

Training & Development Policies

Promotion Policies

Leave or Attendance Policies
Head of Accounting and Finance
Ariful Islam, our Head of financial manager and planner, he has a great command over finance.
Financial manager’s responsibilities are that projection of financial data which define economic
flexibility and essential financial investment, commitment. Financial officer is the controller all
finance related job in an organization. The Responsibilities are –
 Accounts Payable
 Accounts Receivable

Audit

Budgeting

Cash Receipts

Fixed Assets

Current Assets
36
Human Resource Management Plan
Organogram of Purnota Group
Chairman
Head ofHuman
Resource
Head of Finance &
Accounting
Head of Marketing &
Sales
Head of Production
& Operation
Senior Manager
Senior Manager
Senior Manager
Senior Manager
Manager
Manager
Manager
Manager
Senior Executive
Senior Executive
Senior Executive
Senior Executive
Executive Officer
Executive Officer
Executive Officer
Executive Officer
Trainee Supervisor
Trainee Supervisor
Trainee Supervisor
Trainee Supervisor
Senior Operator/ Operator
Junior Operator/ Trainee
Production Labor and Staff
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Key Employees
The terms used as titles for positions terms can be used to describe a relationship with other
employees or a relationship to a department such as Assistant Manager of Program or Aquatic
Supervisor. Job titles can indicate the level within a business such as Assistant Director or
Executive Director. Consider the use of the following as job descriptions are developed:
Supervisor: Use of the word supervisor in a title implies responsibility for guiding and
monitoring the work of other employees.
Manager:The use of the term manager denotes the overall duty for a program, activity, or
physical area of the business.
Director:Theterm
director implies both the overall duty for an area of operation and the
accountability for those working in the area.
Specialist:This term implies that the position requires a special expertise or ability in order to
fulfill the critical job tasks.
Activity Leader:This title is used to describe a person who leads a well-defined action. It
may frequently be used interchangeably with Program Specialist or Activity Specialist
Management Team Background
Key elements of the five entrepreneurs- Mohammed Sirajul Anwar, Ismat Zerin Sachi, Lijan
Lhan, Md.Sayemuzzama and Ariful Islam. All of the entrepreneurs are from the prestigious
North South University holding majors in Human Resource Management, marketing with a few
of them holding a double major in areas like Finance or Marketing.
38
Each entrepreneur holds -Mohammed Sirajul Anwar (30%), IsmatZerinSachi (20%),
LijanLhan (20%), Md. Sayemuzzama (20%) and Ariful Islam (10%) share in the business,
with a cross-purchase buy-sell agreement. This means that if any of the entrepreneurs dies or
wants to sell his or her share, then the others will buy it.
The entrepreneurs are entering into a partnership, which means that each of Partner will share
the overall liability proportionate to their investment in their business.
HR Policies & Procedures
Under HR Policies of Tasty Cake these few things are required as a mandatory one. Like:

Recruitment & Selection Policies

Training & Development Policies

Promotion Policies

Leave or Attendance Policies

Compensation Structure & Programs
 Pay Policy
 Salary Administration
 Incentives & Special Compensation
 Award & Recognition Program
Recruitment and selection Polices
This Recruitment and Selection Policy has been framed with the view of recruiting and selecting
people who have a strong desire to achieve Tasty Cake vision, and who will assist us in
achieving the business results. The main difference between recruitment and selection is
recruitment is positive processes where candidates are attracted for the post apply there. On the
other hand, selection is a negative process where competition arises and candidates compete with
each other and meritorious candidates get job. Recruitment is the process of searching the
candidates for employment and stimulating them to apply for jobs in the organization whereas
39
selection involves the series of steps by which the candidates are screened for choosing the most
suitable persons for vacant posts.
Procedures: Minimum requirements are detailed throughout this policy and include:
1) The position is defined and justified by the requisitioning Business Unit Head / Function
Head and authorized and processed by Human Resource Department.
2) The position is advertised unless a person has been identified through the succession
planning process or other business requirements.
3) The Business Unit Head / Function Head are involved in the recruitment and selection
decision.
4) Pre-requisite skills, qualifications, experience, competencies of Tasty Cake and also
legislative requirements are met and documented.
5) At least 2 reference checks and medical checkup are completed and documented.
6) Offers are approved and made by Head of Group HR and in some special cases by the
Managing Director.
7) All people, whether internally or externally recruited, are inducted through employee
orientation program.
40
Figure: 01 Shows Sources of External Recruitment
The process in the figure explains how pools of candidates are generated from different sources.
It is impossible to collect all the candidates of different category and experience using only one
source. These sources are proved to be very useful and effective for finding the right amount of
capable people.
Executive Search & Candidate Selection Process:
41
Figure: 02 Explains Executive Search & Candidate Selection Process
Proposed Recruitment Process:
When a vacancy comes about within the approved establishment and it is deemed necessary to
fill in the vacancy, the Employee Requisition Form has to be completed and a copy of it has to be
sent to Manager, ER & Talent Management at the Corporate Office who finds out if there is any
suitable candidate already working in the Group for whom a transfer to the vacant position
would Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 25 mean either a promotion or better prospect
promotion. Manager, ER & Talent Management returns the Requisition Form with his comments
to the requiring department at the earliest.
Succession planning:
Within the succession planning process, potential successors are identified for certain
management positions. When such a position becomes vacant, an individual may be approached
about the vacancy. Vacant positions not filled through the succession process are advertised. It is
the BU Head/Function/Line Manager who will work with the new person. The Function
head/Line Manager depends upon the people that they recruit to assist them in achieving their
MOs and KPIs or action plans. The BU Head/Function/Line Manager is in the best position to
assess the candidate’s technical ability as well as the candidate’s “fit” into the team. It is the
responsibility of the Head of Group HR to review and update the Recruitment Standard from
time to time. Such standards would not be applicable to existing employees but for promotion
cases, the set standards except the educational qualification should be considered. Recruitment
procedure will then be set in motion where replacement of existing employee is not possible.
While hiring, preference is given first to employees working for the Company. However, the
following guidelines to be followed in the promotion selection process:
 Promotions will be based upon merit.
 Evaluations must be job-related.
42
 Supervisors must consider as many potential candidates as necessary to assure high quality
candidates.
 Management retains the right to select or not select candidates from any source it considers
appropriate.
Employees may be moved to different Business Units / Functions/ departments by transfer or
promotion. If the move is not a promotion, then the transfer should not cause an increase in
salary.
Screening and Selection of Applicants:
On receipt of employment application(s) may they be in response to the advertisement, through
mail, e-mail, web-site or by hand, Manager, ER & Talent Management (Corporate HR
Department) for Officers and above and BU HR Manager for the positions below the rank of
Officers will arrange weighted scoring or preliminary interview as the case may be for the
purpose of listing potential candidates. Depending on the level of the position, following
screening procedures will be followed:
For the positions above Assistant Manager:preliminary interviews to assess technical
(professional) and behavioral competencies.
For the positions of officers up to Assistant Managers:aptitude, technical (professional) and
behavioral competencies, communication, psychological tests.
For the positions below officers:technical (professional), dexterity/mechanical aptitude,
communication tests.
For those meeting the stipulated specifications and pass the tests as applicable will be recorded
separately. Application being rejected in the initial scrutiny/screening tests or after preliminary
interviews need not be informed.
For specified positions (listed by Corporate HR Department) the candidates for the entry
level position may have to go through the Assessment Centre.
43
If however, the applicants do not appropriately match the job requirement, the position shall be
readvertised and re-searched.
Assessment of the interviews should be recorded on the Assessment Form (as available with
Corporate HR Department) and maintained by Manager, Employee Relations& Talent
Management or HR Manager as applicable.
The Corporate HR Department (as applicable) will verify the information offered by an applicant
in his or her employment application. While it is preferable to do so before hiring an applicant,
there are many examples, when verification may be received after hiring an employee.
For Managers and above positions,Head of Group HR will make final selection in agreement
with the requisitioning Function/Department Head and decide on appropriate salary grades. For
very senior positions he will consult the Managing Director.
For the positions of officers’ up to Assistant Manager, Manager, ER & Talent Management
will make final selection in agreement with the requisitioning Function/Department Head and
decide on appropriate salary grades having consented by Head of Group HR.
For the positions below officers level HR Manager will make final selection in agreement with
the requisitioning Function/Department Head and decide on appropriate salary grades having
consulted Manager, ER & Talent Management.
Headhunting Process:
Headhunting refers to the approach of finding and attracting the best experienced person with the
required skill set. Headhunting involves convincing the person to join your organization. In
Tasty Cake we mainly contact with any HR consultancy for Headhunting process. (Information
source - From Human Resource Manual, personal interview, book)
Training and Development Programs
Criteria
Purnota Group
44
Trainers
Trainers will be hired depending on organization-budget; Trainers from
professional institutes, internal resources; Experts from local and abroad
In-house
training
department
Yes ( under Human Resource Department)
On the job/
Both
(On the job training: Job-rotation)
Off the job
training
Training
Approach
(Off the job training: employees will be sent abroad)
Job-rotation (every 1 years); External training (training agencies); Coaching;
skill based training
3-E approach:
a) Experience (70%)
b) Exposure (20%): competency, job-rotation
c) Education (10%): Seminar, Coaching.
Evaluation of
Training
Program
Tests or questionnaire, Performance after training
Retraining
Opportunity
Yes ((if performance is poor, 3 months will be allocated for improvement; if
no improvement further, then will be dropped )
Training and Development Program
To conduct the training program, we will approach both local and foreign trainers. If we have
adequate budget for that then we will hire trainers from professional institutes. If there are budget
constraints, then we will use internal resources such as someone from HR or other department
who is experienced. In order to train employees, we will pursue both on and off the job training.
45
On the job training:
a) Job Rotation: Employees will be shifted from one department to another department after
one year.
b) Understudy assignments: usually it is for new employees who will follow someone
around or someone’s activity and learn what he or she is doing.
Off the job training:
a) Class room Lectures and Coaching
b) Films and videos
c) Vestibule Training: Employees will be given training on customer care service where
they will be taken to call center and talk to customer directly.
d) Seminars: Sometimes employees will be sent abroad to attend seminars.
Skill based Training:
In order to conduct that training we will follow 3-E approach where the 3 E’s are- Experience,
Exposure and Education. 70% percent skills will be gained from experience that is on the job
learning and 20 % skills will be gained from competency based learning. Competency based
learning can be general, functional and behavioral. Lastly 10% skills will be gained from
classroom lectures or seminars.
Career Planning:
In order to follow and maintain the succession planning of the organizations, the evaluation or
assessment of every employee has to be conducted. Based on the results of that, it can be
identified that which employees need which types of training.
Assessments:
Before the starting of the training we will do needs assessment that is identifying the number of
employees who needs training, which approach will be used, who will be the trainers etc. After
46
finishing the program an evaluation program will be done in order to determine the success or
effectiveness of the interview.
After training Evaluation:
4 types of evaluation process will be followed
a) Reaction:the satisfaction level of employees will be checked whether they are satisfied
with the training programs or not
b) Learning:In order to check how much employees have learned an exam will be taken
based on the training content.
c) Behavior:here the behaviors of employees will be checked whether he or she can do the
things or not
d) Return on investment:how much company revenues have been increased because of the
training programs will be checked.
Promotion Policies
In HRM, promotion refers to assigning higher authority or power to an incumbent or
employee. With higher power, higher responsibilities come, and monetary and nonmonetary compensation level increases in accordance with respective company
policies. Promotion policies of Purnota Group are highlighted below –
 Purnota Group defines promotion in terms of increased responsibilities and
workloads with increases in monetary compensation and benefits.
 Promotions in Purnota Group require certain tenure to be acquired beforehand.
And no promotion is given without proper tenure.
 There is an equal employment opportunity. If an employee is eligible for a
promotion, we consider that with importance; no mistreating is done in this
regard.
47
 Experience is the key indicator for promotional activities. Still, performance is
considered with equal importance.
THE PROMOTION POLICY
Basis
Performance, Performance-rating,
Meets Expectations
Issued By
Individual Department and HR
Department
Time Period
Once per year
Leave and Attendance Policies
Leave and attendance policies are important to maintain employee attendance record and to
engage employees in practicing timely attendance manner and enhance employee morale.
Highlighted below are the policies applicable in Purnota Group for leave or attendance –
 Employees are expected to be at their work station in a fit condition and ready to work at
starting time. Work activity should commence at starting times and continue until the
normal designated stopping times for breaks, lunch, or the end of work.
 An employee’s request to leave work early may be considered by the Supervisor or
Manager. Approval of such absences should be based upon the urgency of the reason for
absence and department staffing needs. As a general guide, early leaving should not
exceed one instance per month or five instances in a calendar year.
 Employees are also entitled with 1 day short leave in a month.
 If an employee is late consecutively 3 days without adequate reason, then it counted as 1
day deduction of wages.
 Special cases like in strike days or extreme bad weather employees can come late to
office up to 2 hour.
 After passing 15 minutes of startup time late attendance is given to an employee.
48
A leave is can accept by HR head, departmental head, supervisor and top management. Tasty
Cakeprovide all kind of leave to their employee according to the Bangladesh labour law
2006.But time frame of leave is little different.
Compensation Policies
Pay Policy

Pay and rewards should be market competitive to attract and retain talented employees.

Base Pay will be linked to performance so that higher levels of performance attract higher rewards.
 Sales incentives, specific to sales positions, will be designed to drive achievement of
sales, customer value and service targets.
 Our company’s annual incentive scheme will provide a short-term reward for
performance consistent with our corporate plan.
 Consistent with market practice, long-term incentives will apply only to senior
management positions. These incentives will link the rewards of those individuals who
most directly influence our company’s long-term business performance to the delivery of
outcomes that will increase shareholder value.

The overall cost of Compensation Program will be managed and linked to the ability of the
Company to pay.
49

Rewards to senior management will be aligned to the long-term performance of the
Company.
 Senior management compensation packages would comprise a fixed portion and an atrisk portion that will be generally be paid only when performance objectives will be met;
this way, short-term and long-term performance will be balanced.

The Pay will be made by the end of current month by the company and employees will
receive by the first week of the preceding month in their bank accounts.

Monetary Benefits will be either paid in cash or transferred to employee bank accounts.
Salary administration
Salary is the basic pay a company gives to its employees according to his/her position and what
tasks, duties, and responsibilities he/she is performing.
Salary Administration of Purnota Group
The Factors On Which Base Pay
Is Based On:





Job duties, tasks, and responsibilities
Company’s Pay Philosophy
Salary Budget and Financial Condition
Labour Supply for Particular Positions
Individual Qualification and Performance
Salary Administrator:
Compensation and Benefit Team under Human
Resource Department or Division
Compensates Through:
Bank e.g. South East Bank and Agrani Bank
Company Pays To Bank On:
20th – 30th day of the current month
Banking Time:
10 working days
Actual Payment/Employee Gets
The Pay On:
First week of the next month, usually1st–10th day
of the month
Factors that we consider while designing our compensation are described below:
50

JOB DESCRIPTION: It includes the level of complexity of the duties, tasks, and
responsibilities that is required by the job. The more the complexity the more is the pay, e.g.
decision-making challenges will be put more weight than normal routine tasks.

COMPANY’S PAY PHILOSOPHY:As we are a start-up consumer good, our pay
philosophy would be to pay our employees in a way where they will not be underpaid. We
cannot pay highest salary because of the limited budget the company has a start-up but with
market surveys and by understanding the job retirements, the company will design its
compensation plan in a way that employees stay motivated.

SALARY BUDGET & FINANCIAL CONDITION:Purnota Groupas a start-up company,
therefore, the salary budget also depends on the fincancial condition. However, the company
will have its comepensation plan mainly focused on job analysis, pay philosophy, and
market adjustment.

INDIVIDUAL QUALIFICATION & PERFORMANCE:The compensation team of our
company will also look the individual’s skills, abilities, and knowledge when designing the
compensation for that particular position. The individual’s qualification plays a vital role
while the company does a person job fit. Hence, the job specifications must meet the job
descriptions well. Once there is good person-job fit, performance of the job incumbent
comes into play.
We would have a team of 5 to 6 members to design Compensation and Benefit program under the
Human Resource Division. Their job will be analyzing every position available in the company and make it
compatible with the market adjustment and then decide which position deserves what kind of
compensation and benefit.
INCENTIVES& SPECIAL COMPENSATION:
1. Bonuses:Purnota Group would have a monetary incentive policy of paying bonuses which will be
6% of basic pay. The bonus will be solely based on performance.
2. Profit Sharing:Purnota Groupwould have reward its best performing employees with 5% of the
profit the company would make. 5% of the profit the company makes would be distributed
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among the employees; hence, they would be motivated to work. They would have recognition of
their work as it contributes directly to the company’s profits.
Award & Recognition Programs
Purnota Group will have the following criteria based reward & recognition programs to follow:
Criteria
Types of Reward and Recognition
 Promotion,
 Employee of the week,
 Employee of the month,
 Employee of the year,
 Certified as best employee,
Reward and Recognition
Programs of Tasty Cake
 Thank You Card,
 Debit Card or Credit Card
 Gift pack (Bangla Noboborso,
PohelaFalgun, May Day, Christmas Day),
 One-week holiday program etc
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Risk Management Plan
 Market reach:Currently customers have many options to choose from. There are
already established competitors in the market such as, Pran, All Time,
Cocolaetc. Since Tasty Cakeis a new product with a lot of competition, it will be
difficult to understand how to manage the business properly and effectively.
 New Technologies:
If we install new technological things such as automated machine and more we will
be incurring an additional cost. Another problem is that the employees and staffs
who will use it will need appropriate training on how to use it.
 Contingency Plans:
In this highly competitive market, a competitive Marketing strategy is very important to
operate a business smoothly. we are expanding our market share through frontal attack.
We want to focus on our own strength that is why we are differentiating our product by
its nutrition aspects which are unique in this market. Unlike any other competitors in the
market, we are providing maximum fresh ingredients in our cake. We will aware our
consumers about these nutrition aspects through promotional and communicative means.
Through this Tasty Cakewill be able to meet the needs of a broad spectrum of
consumer. need to create a positive brand image before our competitors do.
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Financial Plan
As stated previously, five of the partners will invest in 30%, 20% and 10%. Here we can see the
chairperson is investing 30%. Three of the directors are investing 20%. And one of the directors
is investing 10%. In total five partners are investing total of tk 100,000,000. From UCBl we will
be taking loan of tk 40,000,000.
Then in the next table, we can see how the fund has been invested. Total of tk 137,400,000 has
been applied on the business. Elaborately its stated in the table.
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*MT- Metric Ton
*BDT- Bangladeshi Taka
*COGS- Cost of goods sold
*Calculations are done in million
With the machineries available we can produce 960,000,000 grams of cakes per annum. We have
calculated on the basis of information taken from other companies and their production capacity.
Our selling price per gram tk 0.5 and cost per gram is tk 0.2. After calculating we have found out
Profit after tax is tk 109.5 in the first year. Gradually the forecasting has been done for the next
fours also. Second year we think the profit might decrease a bit as the product gets established in
the market. Then again our profit gets increased as we will be introducing new products and
more promotion will proceed.
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In the Balance sheet if we evaluate we have showed the difference between total asset and
liabity and income. This is calculation of 5 years.
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This is the cash flow statement.
Ratios:
Break-even Analysis:
These are all calculations done as per requirement to start a business. Initially, we think the
invest will be like this and the forecasting has been done. Our future years will go on like this.
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Conclusion
As per plan we have forecasted the figures and it shows it wont take much time to reach the
break-even. We believe it is a great prospect. Cake is a running product and we believe we just
need to grab the market share to become successful. We need to promote and distribute the
products in such a way that everyone gets a good reminder about our product and its always
available in the market. We will make sure the exposure of the product is done successfully
because that’s a very important factor to grab the market share. And as we are almost making
everything without any human touch it would be a hygienic product too. With our assumption we
believe we will be a great success in the cake industry.
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Appendix
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Cover Letter
Purnota Group
House no: 10 Road no: 10
Uttara,
Dhaka-1515
Maruf-Ibne Wali
Lecturer,
North South University
Bashundhara, Dhaka
11 December, 2016
Dear Sir:
Application for review of the report
We are very much interested in starting the business of packaged cake in Bangladesh.
We have done a thorough business plan for starting this business in Bangladesh. From the
starting to the end we have done plan. For initial investment, legal activities, marketing plan, HR
plan and financial plan these are the activities which we have in the report.
We would like to request you to please go through our project and give a feedback on the report.
We will be there for providing any type of information. We would remain grateful to you for the
kind action.
Yours Sincerely
Chairman,
Purnota Group
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