t rP os W25390 O'DESI MEALS: A SOCIALLY RESPONSIBLE BRAND Shilpee A Dasgupta wrote this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality. op yo This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Our goal is to publish materials of the highest quality; submit any errata to publishcases@ivey.ca. i1v2e5y5pubs Copyright © 2021, Ivey Business School Foundation Version: 2021-12-15 In 2019, Anubhav Dutta, the founder of O’Desi Meals (OM), was noticing a lack of authentic home-cooked meals among the Indian food options in Dublin, Ireland. In response, Dutta decided to launch his own subscription-based authentic Indian food venture based on the dabbawala model, which was prevalent in Mumbai, India.1 Dutta planned to cater to the Indian diaspora’s preference for a healthier (less oily) home-cooked version affordable Indian food meals that would be delivered to their homes. This would be a much healthier alternative than having to eat out every day. OM conducted diaspora-based marketing and targeted people across various occupations and ages who preferred authentic Indian home-cooked meals for lunch and dinner. tC In 2020, after one year in operation, OM observed a sudden boost in demand for its meal boxes (known in India as tiffin) as a result of the outbreak of the COVID-19 pandemic and the consequent social distancing requirements, travel restrictions, and business lockdowns. OM noticed a steep increase in monthly demand for this product from 130 meals in September 2019, to 800 meals in October 2020, and 1,300 in March 2021. Although the pandemic was the original driver of OM’s initial business growth, Dutta sustained that business growth through effective and accurate planning of the food’s quality and by providing interesting varieties and accurate forecasting of the meals. Do No However, maintaining on-time delivery turned out to be a strategic challenge. Dutta adopted two strategies to address this challenge: one short-term, to ensure sustainability (i.e., revenue generation); and one longterm, to ensure growth. The first strategy was based on restructuring OM’s operating model to generate revenue and retain its customer base through quality service. The second strategy was developed by combining the social entrepreneurship approach with the dabbawala model. However, Dutta still had to determine if the business environment was right for OM. Could the company successfully deliver on-time quality and varied meals by applying this combined strategy and by establishing itself as a socially responsible Indian tiffin brand in Dublin, Ireland? 1 The dabbawala model referred to a hot meal lunchbox delivery and return system from homes and restaurants to people at work mainly used in Mumbai, India that focused on individualized customer care, collaborative planning, and implementation, along with strong teamwork and strict time management; Sukhada Chaudhary, “Dabbawalas: All You Need to Know,” Culture Trip, January 26, 2017, https://theculturetrip.com/asia/india/articles/all-you-need-to-know-about-mumbais-amazing-dabbawalas. This document is authorized for educator review use only by VIKRANT NANGARE, Other (University not listed) until Jun 2023. Copying or posting is an infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860 W25390 t Page 2 rP os ABOUT O’DESI MEALS op yo In August 2019, Dutta launched OM, his long-standing dream project of catering to Dublin’s Indian diaspora population. According to a 2016 census report, the city housed 40 per cent of the 45,000 people from an Indian background that lived in Ireland. That segment of the population was also among the fastest growing.2 Dutta specifically intended to cater to the Indian diaspora’s need for authentic home-cooked highquality Indian meals at affordable prices. As an immigrant from India, Dutta was keenly aware that existing Indian restaurants and food providers served a lower quality westernized and expensive version of the Indian food he was accustomed to, which he did not feel was a healthy option. Numerous studies had detailed the negative aspects of high levels of fats, sugar, sodium, and other harmful ingredients found in some processed foods.3 Recognizing a business opportunity, Dutta launched OM by applying a differentiation strategy that primarily targeted the Indian diaspora. OM would provide food with a superior and authentic taste, as well as compelling value for the customer’s money. Dutta had another important driver for starting his new venture, a feeling of social responsibility toward Ireland’s homeless people (also known as “rough sleepers”). The homeless rate had been growing exponentially since 2014 across Ireland, with 8,313 rough sleepers reported between December 25, 2020 and January 31, 2021, comprising both adults and children. In January 2021, 114 rough sleepers were reported as living outdoors among Dublin’s streets. This number had increased from 90 on November 27, 2019.4 tC The total number, however, was much higher when including people living in squats or staying with friends (casually referred to as “sofa surfing”), or women and children residing in domestic violence shelters. In Ireland, the total number of rough sleepers staying indoors and in the government’s accommodation was reported as 6,906. As of April 24, 2016, Dublin accounted for 72.5 per cent (or 5,009 individuals) of this figure.5 Children and young adults (18 to 25 years old) also formed a significant part of the homeless population, with an 80 per cent increase since August 2017. They contributed 60 per cent of the total homeless population in Dublin, amounting to nearly 760 individuals across Ireland. Some reasons cited for homelessness of children and young adults included the lack of a family support network, necessary skills to live independently, employment, and affordable rented accommodation.6 No Dutta understood the gravity of the situation that homeless individuals faced, especially young people, many of whom were also plagued by repercussions from substance abuse. In 2015, Dutta started a Christmas project through which he distributed meal boxes and basic need items such as socks, gloves, and dental health kits to rough sleepers across Dublin. These gestures helped provide some assistance for short periods, but Dutta wanted to provide a more prolonged solution. To make a real difference, a more structured plan was needed, which meant investing more funds. By launching OM, Dutta hoped to create jobs for homeless young people. His goal was to fill at least 10 per cent of the catering and delivery positions in the company by hiring and training rough sleepers by 2022. However, to achieve this objective, Dutta had to overcome “Census 2016 Profile 8—Irish Travellers, Ethnicity and Religion,” Central Statistics Office, accessed November 8, 2021, https://www.cso.ie/en/csolatestnews/presspages/2017/census2016profile8-irishtravellersethnicityandreligion. 3 Agnieszka Jaworowska, et al., “Nutritional Challenges and Health Implications of Takeaway and Fast Food,” Nutrition Reviews 71, no. 5 (2013): 310–18, https://doi.org/10.1111/nure.12031; R. Rosenheck, “Fast Food Consumption and Increased Caloric Intake: A Systematic Review of a Trajectory towards Weight Gain and Obesity Risk,” Obesity Reviews 9, no. 6 (2008): 535–47, https://doi.org/10.1111/j.1467-789X.2008.00477.x; and Lyndal Wellard-Cole, Alyse Davies, and Margaret AllmanFarinelli, “Contribution of Foods Prepared Away from Home to Intakes of Energy and Nutrients of Public Health Concern in Adults: A Systematic Review,” Critical Reviews in Food Science and Nutrition (2021), https://doi.org/10.1080/10408398.2021.1887075. 4 Aisling Reidy, “Homeless Figures and the Impact of COVID-19,” Focus Ireland, accessed November 20, 2021, https://www.focusireland.ie/focus-blog/homeless-figures-and-the-impact-of-covid-19. 5 “Census 2016 Profile 8.” 6 Reidy, “Homeless Figures.” Do 2 This document is authorized for educator review use only by VIKRANT NANGARE, Other (University not listed) until Jun 2023. Copying or posting is an infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860 W25390 t Page 3 rP os the strategic challenge of forecasting monthly demand, accurately planning a weekly meals menu based on those forecasts, and delivering the food on time to various locations across Dublin. By 2022, Dutta was determined that he wanted OM to become the most trusted and socially-responsible tiffin service brand in Dublin that specialized in home-cooked, authentic, and healthy Indian meals at affordable prices and within a minimum delivery time, with the involvement of rough sleepers. EVALUATING THE CURRENT OPERATIONAL STRATEGY op yo OM was the only Indian tiffin service registered with the Food Safety Authority of Ireland that delivered subscription-based Indian food meals across Dublin. The service featured a fixed weekly menu that varied each week and provided to customers what Dutta referred to as “mom’s recipe” meals. Dutta used the 4P marketing mix prism to assess OM’s operational strategy and highlight the core features that contributed to its sustainability: product, price, place, and promotion. Product No Price tC OM offered various weekly meals involving specialities from various regions of India to cater to the diverse Indian population residing in Dublin. Popular street food options were featured on Sundays and Wednesdays to keep the menu selections interesting. On the other four days, OM served complimentary basmati rice and dal with the main dishes, which were a staple in most Indian homes. The venture also offered South Indian delicacies some Sundays, such as idli sambhar and medu vada, finding that its customer base seemed to enjoy this cuisine. The menu was highly influenced by North Indian food choices, which comprised the largest presence among Dublin’s people from an Indian background. OM avoided repeating any meals within a threeweek span to provide variety, cover as many Indian recipes as possible, and capture the interest of its consumers (see Exhibit 1). Besides tiffin services, OM also offered catering for widely attended Indian events and festivals in Dublin (both residential and corporate), such as Diwali, Dussehra, birthdays, and housewarming parties. Dutta was very careful to promote high food quality and guard against contamination by following the recommendations of the Food Safety Authority of Ireland’s Health Service Executive. OM ensured that all meals were prepared at the correct room temperature before packaging to retain the food’s ideal taste for three days after production, the best before time stated clearly on the labels. Do OM operated using a subscription model for customers to receive meals either weekly or monthly. In addition, customers who wished to try Indian cuisine on an occasional basis could purchase a one-time meal. This option catered to the non-Indian community and aimed to attract more customers. The subscription business was based on a recurring revenue model. It allowed OM to leverage customer relationships to create a steady income stream, while providing customers convenient repurchases on a weekly or monthly plan without having to place an order each day. The price for a single meal order was €9.997 and included complimentary basmati rice and dal every Monday, Tuesday, Thursday, and Friday. Add-on items were available at €2.99 per item. The weekly subscription price was €65.94 for six meals, excluding add-on items and a €3 delivery fee that was charged twice per week. The monthly subscription price was €259.74 for 26 meals, which was a considerable saving compared to typical Indian restaurant prices in the city, which could range from €25 to €25 for a complete meal (e.g., main dish, side dish, and dessert). OM also offered customers the convenience of delaying their remaining subscription meals over 7 € = European euro; US$1 = €0.85 on March 31, 2021; all currency amounts are in € unless otherwise specified. This document is authorized for educator review use only by VIKRANT NANGARE, Other (University not listed) until Jun 2023. Copying or posting is an infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860 W25390 t Page 4 rP os weeks or months, in case of travel or other absence. Therefore, OM provided competitive pricing, healthy options, high quality foods, and convenience in its subscription-based tiffin service throughout Dublin. op yo The use of so-called “cloud kitchens” or incubators was rapidly increasing, especially after the financial impact incurred by many food services from the outbreak of the COVID-19 pandemic. These shared kitchens allowed food and beverage ventures prepare and deliver food to the customer’s doorstep by using telephone or online ordering systems.8 OM used cloud kitchens for two days each week to reduce operational costs such as utilities, logistics, and full-time employee salaries, while many of its competitors continued to use full time staff and a permanent physical facility for all their services. OM’s subscription model, especially for monthly subscriptions, enabled Dutta and his team to lock in revenue for the entire month. In comparison, one-time meals and even weekly subscriptions offered much less guaranteed revenue over a shorter period. Place OM did not have a physical location that its customers could visit to place their orders. The venture operated on a virtual platform, mainly over social media, and delivered orders across Dublin, which made on-time delivery to distant faraway locations a logistical challenge. Nonetheless, Dublin provided an opportunity for OM to thrive thanks to its large population of Indian immigrants, which was generally expected to grow exponentially. According to Ireland’s Central Statistical Office, approximately 5,994 people from an Indian background worked in Dublin, most of whom worked in the lower professional segment that included nurses and midwives. This represented approximately 35.6 per cent of the total non-Irish professionals in the country. Dutta felt that the affordable prices of OM’s subscription-based meals provided an advantage for this group.9 No tC Although the number of Indian immigrants in Dublin was lower than in many other UK cities, it did attract numerous Indian professionals and students as the country’s largest city. This trend was strengthened after the United Kingdom left the European Union (EU)—in a move known colloquially as Brexit—and Ireland became the only remaining predominantly English-speaking country in the EU.10 Dublin boasted many Indian fine dining restaurants and more affordable take-out food services. However, Dutta felt that many of these places lacked the quality of home-cooked food that OM provided, with less oil and spice but a more authentic Indian taste, rather than the Westernized Indian cuisine that catered to non-Indian customers. OM also provided its unique subscription-based model that delivered home-cooked meals at the customer’s doorstep at affordable prices. Therefore, Dutta was unconcerned about competition and confident that he could grow and expand OM’s loyal customer base. Promotion Do For sales promotion, OM relied mainly on its social media accounts on Facebook and Instagram, with far less emphasis on its website. Weekly menus, Sunday specials, and Wednesday street food specials were posted on Facebook and Instagram, targeted mainly to people from Indian and South Asian backgrounds. In its marketing campaigns, the company emphasized its registration with the Food Safety Authority of Ireland’s Health Service Executive as an Indian tiffin service that sold a subscription-based authentic Indian food experience. OM’s secondary customer segment was more generally people who loved Indian food or were interested in trying the authentic home-cooked flavours of the country’s diverse cuisine. OM’s 8 “Cloud Kitchens and New Technologies in the New Normal,” The Times of India, September 23, 2020, https://timesofindia.indiatimes.com/life-style/food-news/cloud-kitchen-changing-the-world-of-dining/photostory/77933564.cms. 9 “Census 2016 Profile 8.” 10 “Ireland Will Be Main US-Europe Bridge after Brexit, Ambassador Claims,” The Irish Times, June 30, 2018, https://www.irishtimes.com/news/politics/ireland-will-be-main-us-europe-bridge-after-brexit-ambassador-claims-1.3549855 This document is authorized for educator review use only by VIKRANT NANGARE, Other (University not listed) until Jun 2023. Copying or posting is an infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860 W25390 t Page 5 rP os marketing efforts were mainly conducted online, although Dutta was interested in investigating more traditional options to accompany its strong word-of-mouth publicity. CURRENT OPERATIONAL CHALLENGES AND REDRESSAL STRATEGY Despite the many hardships caused by the outbreak of the COVID-19 pandemic in March 2020, OM benefitted from social distancing requirements and lockdowns of workplaces. The company saw a substantial increase in its consumer base from 130 complete meals sold in September 2019 to 800 meals sold in October 2020 (for an increase of approximately 615 per cent) and 1,300 meals sold in March 2021 (for an increase of approximately 1,000 per cent). Its annual sales for financial year 2020 (ending December 31) were €41,456, including a gross profit of €8,291 and a net profit (after taxes) of €5,960. op yo Dutta’s projections for the next year were estimated at total sales of €122,537, gross profits of €24,507, and net profits of €19,060 (see Exhibit 2). Overall, OM targeted an annual year-over-year sales growth rate of 15 per cent until 2024. However, according to a report by the Central Statistics Office, which found that enterprises employing three to nine people earned annual revenues of €1,390 million in 2005,11 OM’s revenue was still well below that of an average small business in the country. tC Dutta was confident that OM’s popularity and demand rising steadily from 2019 would ensure continued strong growth. The considerable increase in orders required OM to rely more heavily on the cloud kitchen, although its limited capacity could only prepare a portion of the required meals. OM also faced typical startup challenges related to logistics and meeting constantly increasing demand. Dutta soon realized that Dublin had an shortage of commercial kitchens, which added further challenges to growing OM’s operations and customer base. To address this issue, Dutta sought assistance from OM’s director Siddharth Patel and began converting an industrial unit into a new commercial kitchen, after securing the required approvals from the country’s Planning and Permission Department. The time-intensive task included meeting all safety and utilities requirements, which Dutta hoped to complete by September 2021. No The new commercial kitchen project was affecting OM’s revenue and growth. Therefore, Dutta brought together his marketing and sales team to help develop two strategies to address the challenges and ensure that OM continued to earn revenue for the short term and ongoing growth over the long term. The short-term strategy would restructure OM’s operating model to generate revenue and retain its customer base through quality service. The long-term strategy would combine a social entrepreneurship approach with the dabbawala model. Short-Term Revenue Strategy Do According to Dutta, OM aimed to make the entire process as easy as possible for the customer, and to offer high-quality food and a suitable quantity in each complete meal, for a reasonable price. To meet its objective, in 2021, OM hired skilled kitchen workers including a chef from India. OM sponsored the employees’ work permits and trained them to prepare foods and spices and to package complete meals in their boxes. Concerned about filling all current orders, Dutta decided to curb online advertising to avoid attracting more customers than the staff could serve. The management team focused on maximizing revenue with OM’s existing customer base and resources by improvements to the menu such as greater variety of add-on items (e.g., parathas, vada pav, mango lassi, gulab jamun, and others). The additional add-on items helped OM increase revenue through the higher cost of each meal, without requiring more employees to prepare the items or increasing kitchen and logistics expenses. 11 Central Statistics Office, Small Business in Ireland: 2008 Edition, May https://www.cso.ie/en/media/csoie/releasespublications/documents/otherreleases/smallbusiness08ed.pdf, 11. 2008, This document is authorized for educator review use only by VIKRANT NANGARE, Other (University not listed) until Jun 2023. Copying or posting is an infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860 W25390 t Page 6 rP os Customers could place orders by telephone or online through Facebook and Instagram. OM expected to increase its annual online marketing budget to €744 by the end of 2021 and to €2,000 by the end of 2024 to meet online ordering and customer service needs. Telephone expenses, however, were expected to remain stable at €180 per year. Online ordering entailed additional administrative challenges for OM’s staff members. Customers were accustomed to paying in cash or by bank transfer upon delivery, which forced staff members to continually check with banks to ensure that payments were made in full. Eventually, OM adopted the Google Forms automated ordering system, through a link on its website and social media pages, which was connected to the Revolut Business payment system for debit and credit card payments. The new secure payment service, which was welcomed by OM’s customers, helped the venture reduce administrative challenges and improve invoice management. Long-Term Growth Strategy op yo Dutta and Patel also addressed delivery-related issues through a new online real-time tracking system for customers to check the delivery of their meal in real time. Customer concerns about their meal delivery, which was outsourced to a logistics provider, meant that OM staff members were constantly tracking deliveries and addressing issues for the customer. After implementing the new tracking system, OM provided an estimated delivery time to customers the night before the meals were scheduled for delivery. A link was also provided that enabled the customer to track the delivery in real time. This feature considerably reduced OM’s administrative issues and helped customers plan their meal time efficiently. OM’s dual vision was to establish a trusted brand name through the on-time delivery of meals to every corner of Dublin and to create jobs for the city’s less-privileged rough sleepers. To achieve both parts of this vision, Dutta applied the combined strategy of the social entrepreneurship approach and Mumbai’s dabbawala model as its long-term growth strategy.12 No tC Since his early entrepreneurial days, Dutta had been fascinated by the synergetic work process of dabbawalas. He decided that he had to follow that same model in delivering OM’s orders seamlessly across Dublin, catering to people working in offices or from home during COVID-19 lockdowns. Social entrepreneurship enabled Dutta to create social value for OM by providing an innovative solution to help address the long-standing problem of Ireland’s homeless people. This approach allowed Dutta to develop business opportunities for OM, while offering recruitment opportunities to Dublin’s underprivileged communities.13 This combined approach also aimed to address the challenges OM was facing due to the increase in demand. Assigning Territories to Delivery Staff Do As a small venture, OM had a limited number of staff members engaged in growth opportunities through product development, marketing, sales, and customer service. Logistics were outsourced to save time and to allow greater focus on the business. Although outsourcing logistics was an expensive option, it enabled OM to expand the business in the short term, without allocating too much time to operational issues. Over the long term, however, the plan was for OM to set up its own internal logistics. But the transition from a third party to OM would have to be smooth and retain the high quality of delivery, ensuring that customers did not notice any difference. To achieve this goal, Dutta planned to assign delivery workers (including rough sleepers) to particular service areas or territories. Delivery staff would collect the OM meals in bulk Stefan H. Thomke, “Mumbai’s Models of Service Excellence,” Harvard Business Journal, November 2012, https://hbr.org/2012/11/mumbais-models-of-service-excellence. 13 Alejandro García-Jurado, José Javier Pérez-Barea, and Rodrigo J. Nova, “A New Approach to Social Entrepreneurship: A Systematic Review and Meta-Analysis,” Sustainability 13, no. 5 (2021): 2754, DOI:10.3390/su13052754. 12 This document is authorized for educator review use only by VIKRANT NANGARE, Other (University not listed) until Jun 2023. Copying or posting is an infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860 W25390 t Page 7 rP os and deliver them to the end customers residing in their particular assigned area or territory. The dabbawala model inspired this approach. Apprentice Program op yo Based on the demand for OM’s services, Dutta identified small geographical pockets across the capital city from where the bulk orders poured in. He would assign specific employees to these specific pockets, rather than using random assignments. To ensure the approach’s success, each delivery person had to be accountable for their territory’s food safety, packaging, and perishability. This approach would help Dutta divert the biggest challenge of the dabbawala model—transportation. Mumbai’s dabbawalas had to depend on the efficiency of the city’s public transportation.14 However, OM assigned delivery workers a specific service area where they could commute to directly (at first using a third party; later using OM’s own transportation) to seamlessly serve their customers. This approach also helped OM market its products and services to potential customers through their familiarity with the delivery person in their area and by distributing promotional items with the meals. CONCLUSION tC Until March 2021, OM was able to use part-time employees to deliver the meal packages. However, after monthly subscriptions rose dramatically with the outbreak of the COVID-19 pandemic, Dutta saw the boost in demand a catalyst for growth and decided to rent a custom commercial kitchen to address the increased demand. This would require a permanent delivery staff, which would include 10 per cent rough sleepers. OM would use a well-developed apprentice program to guarantee the availability of a skilled delivery staff, incorporating slack capacity to meet any surge in demand. If demand dropped, the apprentices could be temporarily laid off to seek other employment, during slack periods. This strategy would reduce OM’s financial liabilities, and in turn, meal subscription prices. No The short-term revenue generation strategy benefitted OM considerably. It addressed administrative challenges and generated revenue. These were important market sustainability factors. They also helped develop the brand and ensure growth. OM’s social entrepreneurship approach involved hiring rough sleepers as permanent employees. It raised the company’s social value and provided a competitive advantage over competing Indian restaurants and take-out food services. OM also created social value by employing and empowering underprivileged people for meal delivery services. OM’ aspired to become the most trusted and socially responsible tiffin brand in Dublin, specializing in home-cooked, authentic, and healthy Indian meals at affordable prices and on time. Do However, before proceeding further with the combined dabbawala and social entrepreneurship approach, OM had to analyze its external and internal capabilities, as well as its market position in relation to its competitors. How would OM develop its competitive strength, address operational challenges, and effectively implement its growth strategy? The author would like to thank Mr. Anubhav Dutta and Mr. Siddharth Patel for their support in the creation of this case. 14 Stefan H. Thomke and Mona Sinha, The Dabbawala System: On-Time Delivery, Every Time (Boston, MA: Harvard Business School, February 2010, revised January 2013). This document is authorized for educator review use only by VIKRANT NANGARE, Other (University not listed) until Jun 2023. Copying or posting is an infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860 W25390 No tC op yo rP os EXHIBIT 1: TWO DIFFERENT WEEKLY O’DESI MEALS MENUS t Page 8 Do Source: “O’Desi Meals,” Facebook, accessed November 22, 2021, https://www.facebook.com/odesi.meals; “odesi_meals,” Instagram, accessed November 22, 2021, https://www.instagram.com/odesi_meals; reprinted with permission. This document is authorized for educator review use only by VIKRANT NANGARE, Other (University not listed) until Jun 2023. Copying or posting is an infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860 W25390 t Page 9 2020 (Draft) Sales rP os EXHIBIT 2: O’DESI MEALS CURRENT AND PROJECTED FINANCIALS, 2020 TO 2024 (YEAR ENDED DECEMBER 31) 2021 2022 (Projected) (Projected) 2023 (Projected) 2024 (Projected) 41,456 122,537 140,917 162,055 186,363 Cost of sales (33,165) (98,029) (112,734) (129,644) (149,090) Cost of goods sold (33,165) (98,029) (112,734) (129,644) (149,090) 8,291 24,507 28,183 32,411 37,273 20.0% 20.0% 20.0% 20.0% 20.0% — (744) (1,000) (1,500) (2,000) (800) (800) (800) (800) (800) (180) (180) (180) (180) (180) (500) (500) (500) (500) (500) — (500) — — — (1,480) (2,724) (2,480) (2,980) (3,480) Profit on ordinary activities (before tax) 6,811 21,783 25,703 29,431 33,793 Tax on profit on ordinary activities (12.5%) (851) (2,723) (3,213) (3,679) (4,224) Profit for the year (after tax) 5,960 19,060 22,490 25,752 29,568 Gross profit Marketing costs Insurance Telephone Transportation expenses Profit/loss on disposal of tangibles Total expenses op yo Administration expenses: Do No tC Note: Company operations beginning July 1, 2020. Source: Company files. This document is authorized for educator review use only by VIKRANT NANGARE, Other (University not listed) until Jun 2023. Copying or posting is an infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860