Business Plan
Mirmire shop
1. Name of the company
: Mirmire shop.
2. Legal status
:
3. Objectives of the project :
running
Construction of various infrastructure like roads, bridges.
4. Basic Mission of the project
a) To contribute in enhancing the GDP of the country.
b) To provide qualitative construction services.
c) To become a pioneer and well established Construction Company of Nepal.
d) To provide best quality services at best prices reasonable price.
e) To provide our clients with the best caliber construction services at reasonable,
market-competitive pricing.
f) To uphold the greatest standards of professionalism, honesty, and justice in our
interactions with our clients, suppliers, and other professionals.
Introduction
Mirmire usiness is also registered in Kathmandu Metropolitan Office dated 2078.05.29 with a
capital amounting Rs.5,00,000. Kasthamandap Construction (P) Ltd is a leading, reputed, well-. It
has been providing its clients with reliable solutions to their most complex construction challenges.
It is currently regarded as a leader in Nepal's construction industry thanks to its skills in traditional
construction techniques and its innovative, modern approach to cutting-edge technologies and
delivery systems. Since its beginning, every project undertaken at this period has been finished on
schedule and to the highest possible standard. It has been employing 35 staffs for its operation and
has been outsourcing labor, providing the wages on daily basis. This construction company has a
strong track record in several segments like bridges, roads, airport, etc.
The Market
Nepal is a developing nation with political stability and strong economic growth that is sandwiched
between the two countries of China and India. The primary activities of the Nepalese construction
sector include the development of infrastructure, hydropower, irrigation, buildings, and real estate.
Highways, public facilities, government buildings, and roads and vegetation make up
infrastructure construction. This sector, which employs a sizable population of ignorant and
unemployed people as well as trained, unskilled, seasonal workers, etc., ranks as the second largest
employer in the country. Infrastructure unites people from different regions and cultures into one,
making the country more livable by connecting it for transportation, communication, and
education. The second-richest country in terms of water resources, Nepal is a landlocked country
with significant hydroelectric potential. This potential indicates future prospects in terms of growth
in the construction sector. The construction industry is one of the most in demand in nation.
According to Federation of Contractor’s Association of Nepal (FCAN), the construction sector has
been contributing around 7.7% to nation’s GDP as of now which was around 11% indicating the
fall in the contribution, may be result of shortage of labor and lack of updated technologies. After
agriculture sector, this sector has been second largest employer of the country providing
employment opportunities to fulltime and seasonal workers. Similarly, about 60% of the nation’s
development budget is spent within this industry. Nepal still lags behind when it comes to hurdles
such as financial, social, managerial or even political can be pointed out. But, the biggest hurdle
for this industry in the past has been absence of superior construction equipment and heavy
machineries. The ongoing construction boom and increased developing activities in the country
have led to significant in demand for heavy equipment and machinery. With new commercial
complexes, town planning, and residential buildings sprouting in every possible corner of urban
Nepal, it is fair to claim that construction is experiencing a boom. The annual growth rate of this
sector has been estimated to be around 9%.
The above information indicates that the construction sector is still in its growth stage having so
much of potential. With so much of potential in the sector, the competitors has been increasing.
The existing construction company along with the existing construction companies has made the
rivalry among them high. There are already lots of competitors in the market which makes
bargaining power of customers high and the constructors low. There has been lots of bargaining at
every projects in terms of budget allocated.
Hence, the construction sector with so much of prospects has been growing now and will continue
to grow in the future as well. There has been certain problems existing within the industry as well
like the shortage of labor leading to the frequent outsourcing by the construction companies.
Though, shortage of labor is the problem, it can be sorted out as has been sorted till date i.e. by
outsourcing from the labor market.
SWOT Analysis
A) Strength: The strength of the project are mainly as followsi)
Efficient management committee
ii)
Old and hence, trusted construction company.
iii)
Highly dedicated set of employees.
iv)
Very healthy and helpful working environment.
v)
Adequate capacity of plant and equipment
vi)
Reasonable cost along with satisfied customers viz, government,
agencies, etc., and
vii)
Efficient supply chain.
B) Weakness: The weakness of the project are as follows-
i)
Lack of enough staff available,
ii)
Risk of equipment failure, and
iii)
Lack of specialization (techsavvy professionals).
C) Opportunity: The opportunity of the project are as follows:
i)
High opportunity of establishing more branches and expand its network,
ii)
Growing use of digital technologies, and
iii)
Possibilities of working in future projects.
D) Threats : The threats of the project are as follows:
i)
Increasing number of companies,
ii)
Political instability,
iii)
Rules and regulation related to the industry are not stable,
iv)
High price driven by labor outsourcing
v)
Environmental Uncertainty, and
vi)
Cyber Risk
Conclusion and Recommendation
The construction sector in Nepal has been in growing stage with full of potential and growth. Since
earthquake, the construction sector has been established as the most important sector for an
economy. The sector has been in boom phase since then. Not only the construction sector, but also
the company has adequate resources whether be human resources or machineries to make complete
project ready in time with high quality output. This sectorial potential blended with the
organizational strengths has made the Kasthamandap Construction (P) Ltd. as the deserving
construction company for the loan which has sufficient potential to maximize the revenue from
the allotted budget and pay back the loan amount in time.
Analyzing different aspects of the project, the project is found feasible to operate in existing
economic and marketing condition. Thus, as mentioned above aspects wise appraisal, the project
is:
Technically Feasible
Socially acceptable
Environmentally sound
Viable in the market
Financially Viable
Healthy in security point of view
And Manageable project