Introduction to Business

Sec: 06 Course ID: BUS201 Date: 05.08.2015

GROUP MEMBER

Name ID
Minhajul Alam Joha 1521956
MD. Shafaet Hossain 1521957
Moriom Akter Mony 1521802
Nabila Islam 1430418
Clovis joseph Games 1430248
Apratim Dhar 1520451
Fatema Akter0 1521487
Rizve Ahmed 1521907

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 Get by Drop

Recycle today for better tomorrow

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 Letter of Transmittal

Date of submission: 05.08.2015

Sumita Das
Senior Faculty
School of Business,
Independent University Bangladesh,
Bashundhara, Dhaka.
Subject: Submission of Group Report.
Dear Madam,
We are very pleased to submit our group report on our business plan “Get by
Drop“incompliance with the course requirement and your instructions. It would be impossible
to begin any acknowledgement without appreciating Almighty. We want to specially thank you
honorable course Instructor, Sumita Das, for your patient guidance and immense support. You
are a remarkable mentor with excellent teaching skills and a finely designed course outline,
which answered most of our problems. We would like you to know that working on this project
has given us vast experience. As a team, we found the process of compiling the report both
interesting and challenging. We hope that we covered all that was required.
Yours Sincerely,
Minhajul Alam Joha, Md. Shafaet Hossain, Moriom Akter Mony, Nabila Islam, Clovis Joseph
Games, Apratim Dhar, Fatema Akhter, Rizve Ahmed

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 Acknowledgement

We have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals and organizations. We would like to extend our sincere
thanks to all of them.

We are highly indebted to Sumita Das for her guidance and constant supervision as well as for
providing necessary information regarding the project and for her support in completing the
project.

We would like to express our gratitude towards our parents and different persons who we
surveyed and interviewed for their kind co-operation and encouragement, which helped us in
completion of this project.

Our thanks and appreciations goes to our fellow team mates in developing the project and people
who have willingly helped us out with their abilities.

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 Table of content
Executive summary

Company Overview…………………………… 07

Product/service Description…………………... 09

Industry analysis……………………………….. 13

Market Analysis…………………………………15

Marketing Plan………………………………….16

Get by Drop’s SOWT analysis………………….17

Organizational Chart…………………………… 18

Operational Plan…………………………………20

Financial start up cost……………………………21

Pro-forma income statement …………………….22

Pro-forma cash flow statement…………………...23

Conclusion………………………………………..24

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 Executive Summary
The name of our recycle company is G&D. Which stand for "get by drop". Our plan is to collect
all the raw materials from the "Bashundhara residential area". And our showroom and warehouse
will be located at the gate of "Bashundhara residential area". In our day-to-day life there are lots
of elements, which can be used to recycle. But because of the lack of easy way of proper use, we
waste those stuffs. But our business will create a best way to collect those products by paying
those householders and by using those products properly by supplying collected plastic products
to many plastic recycling industries. That is how our business will solve the wastage of used
plastics.

The concept of our business is to use our business process for expanding the effectiveness of the
existing recycling program and for increasing the quantity of material diverted for recycling or
composting.

The competitive advantage of our business is that we will be able to sell our collected products at
a cheap price to any recycling company. And on the other hand we will be making many ( DIY)
products by using our innovative thoughts. During recent years the plastic industry has growth
with a substantial growth rate. Our company will add a new dimension to the plastic recycle
industry. So we can assure that there is a market for our product and service.

Our business is currently in the start-up stage of development. In which we, the entrepreneurs,
devote massive amounts of time, energy and emotional investment in launching our new venture
and to make our plan work.

We did our financial analysis by bringing out all the requirements. We analyzed those
requirements and figured out the amount individually that we will be needed. We will need
50,000,00 as the security money for showroom and warehouse, 60,000 for the rent of our
showroom and warehouse. Then it comes the decoration, waste bin, leaflet, van cost which will
require 17,20,000. Then the salary cost will be 100,000 and raw materials (plastic, paper, metal),
equipments cost will require 360,000. So the total start up expenses amount is 72,40,000 as our
financial analysis.

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 Company Overview
G&D is both manufacturing and retailing company dedicated to converting waste plastic
materials into commercially waste plastic materials into commercially vitable products, utilizing
environmentally friendly recycling methods. Our mission statement, objectives goals are clear
specific and realistic.

Mission statement: We want to be the social worker through solid garbage management by
making it look beautiful. Our dream is to establish ourselves as the leading recycling enhancer
and the maker of handcraft unique designed Gadgets to ease the daily life of our consumers in
our target market. After that to expand this company to be recognized throughout the country as
the leading number one entity in this sector. “Recycling for profit, for pleasure and the planet”

Vision: The vision of G&D is to provide protect the environment, and promote recycling
through beautification in order to ensure a safe, healthy and easy lifestyle community for current
and future generations.

Objectives: The main objectives are to promote waste, reduction, recycling, reuse and create
public awareness on the waste management in Bangladesh. The firm industry will be recognized
as a profitable recycling business in Bangladesh. The goal is to spread and expand the mass
market.

Goal Timeline Desire Objective

Increasing Product awareness Over the first quarter Expend social media like as a
form of advertising like
facebook,whatsapp,twitter
,YouTube etc sell the products
on business fair and donate the
products a as prize in
competition.

Grow Market Share Over the upcoming year Open retail outlets in other
places (Banani, Gulshan,
Uttara, Dhanmondi)

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Business Industry Identification: The target area is Bashundhara Residential Area for
collecting raw materials. We will divide this area into different zones and under different zones,
there will be many apartments. We will provide 3 boxes for each flat in those apartments. 3
boxes will contain according paper, metal and plastic. We will arrange a vehicle to collect and
replace those boxes 2 times every month. This collection will not be free, as we will purchase
materials from those houses according to weight. Then we will start collecting the metals and
papers keeping our profit on a low amount. Our target product is plastic. We will make
showpiece, household useful goods, and stationary by plastic. All these we will eliminate
garbage and used for. The purposes company’s principles and values are very strict. We will
conduct our business activities in an open transparent manner and will engage stakeholders and
public in the development of policies and regulations. We lead by example honesty and
profession manner. We value proactive communication with and accountable to each other and
our stakeholders.

Companies Core Competency: Our core competency is that we can sell the products at lower
prices for recycling. Moreover, we can assure innovative products. As G&D bring plastic
recycling products is at first in Bangladesh.

Legal form of ownership: Partnership business is suitable to legal form of ownership. It is

because additional capital injected by each partners. There is greater privacy and fewer legal
formalities than corporate organization. Partners may specialize in different areas of business
management. More partners bring more innovative and shared risks decision-making, losses. Sky
and UTL win ‘Best Business partnership’ award at national Recycling Award 2015.

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Product/ Service description

Fancy Bowl: This bowl is made out of the bottom part of a used bottle. Just after it is made
without any further modification, it can be used for many purposes. However, we would be
designing it with many different things to make it look very attractive. It actually works as a
fancy fruit bowl, or snack bowl.

Jar: This is a jar made out of plastic bottles. It can be used for keeping safe different kind of
spices and foods.

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Bottle Piggy: This is piggy Bank made out of bottle. It is a good-looking attractive toy for the
children and a working money saving bank. It will put a smile on any little one’s face.

Hang & Charge: It is a smart invention for the Smartphone. This will help to charge your phone
when the charging wire is too short. This will hold the phone close to the charging socket
hanging on the charger itself.

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Showpiece: It is a showpiece for the kid’s room. There is also a matching curtain clip. At the
bottom, there is also a matching penholder.

Tree friend: We will make some decorative tree works with our bottles. These will be home
decorative and good looking.

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Penholders: We will have a wide collection of decorative penholders. They will be made out of
plastic bottles, as usual.

Gift hamper: This could be a romantic gift from any husband to his wife. Or there is no harm to
take a little gift home to our mother. Made from the bottom of two bottles, holder. Inside there
will be cherry’s, apple etc.

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Cosmetics holder: For any girls dressing table this thing can help the most. This will be our
differently presented cosmetics holders. They will be decorative and colorful to match the
ambiance.

Industry Analysis
Our business falls into a category of mixed industry. We are recycling plastics bottles in a unique
new way. Our products are not only for to use in home, but also is very ideal for a perfect gift.

We tried to explain ourselves by referring the famous Porter’s Five Forces model.

First is the threat of a new entrant in the market. This possibility is very high for our business,
because of being low cost and time efficient in production. In addition, there are no such
recyclers in Bangladesh until now. Therefore, if we achieve economies of scale in this sector, we
will become the dominant entity soon. The main problem in this sector is going to be that, there
is not particular barrier to entry in our market. Anyone can join the industry if they want to.

Second, competitive rivalry is another factor for our industry. As we are a bit different from the
other sectors, we do not have any particular direct competitor in this industry. Our main
competitors are businesses that make and sell similar type of products that we want to produce

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form recycling. These competitors are very powerful and established multination and national
businesses in the sector. So we will face a indirect heavy competition in the market.

Third, threat of substitute in the market will cause us enough problems. If any new and better
way of recycling shows up in the industry, it will hamper our business on a large basis.

Fourth, bargain power of buyers always plays a big role in the industry. Our buyers are
distributed all over and the number of buyers is huge. Therefore, we will have an advantage over
our buyers since they will have less bargain power.

Fifth, bargain power of suppliers always is crucial for any business. In this sector, the industry is
rich and bargain power of suppliers is on a tolerable limit for the industry here. As for us, we will
have the most advantage over this sector. As there is not particular supplier for our production,
we will have a better chance to being cost efficient in the industry.

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 Market Analysis
Get by drop have segmented the market into two groups. One is households and another one is
offices. Our stationary products are simple and attractive. This is why these are perfect for office
stationary. The companies can buy products from us in bulk. Households are choosing because
we provide door-to-door services, customized product. In everyday life households needs goods
such as utensils. Moreover, now a day’s customers spend money on home to make houses
beautiful by decorative items. Gift product have personal, emotional link to the customer.

Our product is targeted toward mass market. The total population is 160 million, whereas our
target customer is subjected to change according to business years. As we produce products on
mass business. Thus, we do not emphasize on consumed behavior.

Our current market is quite flexible to enter as our actual perfect competitor is not visible at the
moment but the future we are expecting a quit handful amount of new enter the market thus
creating an industry.

As we are the only plastics recycling company in Bangladesh till now. Therefore, we are
expecting quite a number of customers for a start up business. As we will have stores in multiple
places, we expect a huge number of customers in upcoming yeas. As we are the first plastic-
recycling business, there is relatively small competition exit. We expect to capture a minimum of
40% market share by the end of the first year of the financial year of our business.

One of our mottos is to maintain close relationship with our customers. We can say to the
household and offices that, “we make customized products” when we will collect the materials.
In this way, the customer will remember us and we will build a good customer relationship.

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 Customer analysis:
Customer (Age) Liking Preference Willingness to buy

18-24 65% 32% 20%

25-30 73% 64% 31%

31-35 98% 70% 66%

36-40 95% 66% 60%

Marketing Plan
Marketing strategy is the fundamental goal of increasing sales and achieving a sustainable
competitive advantage. The product is the recycled plastic product i.e. beautiful showpieces,
stationary production, and useful household products. The product is astonishingly innovative
and qualified than competitors. Moreover, psychological pricing will be charged in first year of
the operation that will help to create a positive image on the target market. In most of the
consumer’s mind tk99 is psychologically less than tk100. A minor distinction is pricing can
make a big difference in sales. This improves sales and maximizes revenue. Our distribution
channel is based on our geographic location, which is Bashundhara. We will have stores based
on public demand and will have home delivery service inside Basundhara Residential Area. We
can promote the products in several ways. We will distribute sample as much as we have. We
will give offers i.e. “Buy one get one free” We sometime will provide sale on a particular day.
The existing customers will get a tree product, coupon, or reward of some time for every new
consumer they send. We can use social media by a form of advertisement.

We launch video of our product at YouTube. We can open ways for customers to show their
opinions on business and products and how can we improve. We can get subsidy for rational
advertisement for recycling the product. We can sell our products on business fair to increase
awareness of people and donate the product a price in competition. These help to increase
revenue and maximum profit.

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 G&D’S SWOT Analysis
Strengths
 No competition in overall country
market
 Very high gross margin
 Limited start up risk
 Online sales and home delivery
 Recycling and eco friendly products
 Flexibility in pricing
 Raw materials high cost efficiency
Opportunities
 Employment
 Expansion
 Entry in new market
 Affiliate relations with related vendors
 Ability to develop additional stores
 Development of proprietary products
Weakness
 Easy entry in the market
 Limited start up cost
 Emerging of powerful competitor
 Quick reaction of plastic home decors
(RFL, Bengal)
 Unavailability of machinery
Threats
 Consumers may misunderstand the
product concept.
 Increase in price inputs can cause
upward pricing
 Entry of new substitute products
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 Organizational Chart

1. Manager: - He/she will be responsible for managing all the department heads. He will be the
prime coordinator among all the departments’ heads. He will call meetings for necessary
decisions and execute the decision together.

2. Production unit: - This is where the production guidance will be given. Under the production
manager there will be and Inventory Manager whose job will be to keep a record off all the Raw
materials and finished goods inventory. The department head will over watch production
workers and report will be submitted to General Manager.

3. Finance & Accounting Department: - This department will keep all the accounts and give
out salary. They will also keep track of all the cost and be responsible for cost efficiency.

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4. Marketing Department: - We are new in this market, so we have to introduce our product to
our target customer. This department will do all the necessary promotion and advertisement
needed. Under the Marketing department manager there will be another two departments, one is
showroom and the other is Research and Development.

5. Human Resource Department: This department will be handling all the employees and
staffs of the business. Additional recruitment, lay off and employee complains will be handled by
this department.

Operational plan
Facilities: Our facilities are situated inside Basundhara Residential Area. The facility covers an
area of 3000 sqft. It will consist of a production plant, inventory warehouse, a showroom and an
office. We want to keep our different facilities close at the primary level; it will increase our time
efficiency. In addition, it will help us to take decisions quickly and smartly. Our Showroom
manager will directly handle our customer care. This will also help us to handle any unwanted
critical situation.

Supply chain: Our production department will directly collect our raw materials. We will collect
all our boxes from each apartment 4 times a month and that is in a weekly basis. We will have
four vans to collects those. After collecting the raw material, it will be directly brought to our
production plant.

Production planning & process: After collecting the raw materials, we will separate plastics that
we can use to make our products and the rest will be sold. The plastics bottles now will be
washed and rinsed thoroughly and dried. After that, it will be cut into different shapes as our
products and then designed and decorated accordingly. After all the decoration, it will be
wrapped and sent to the inventory department.

Inventory management: After receiving finished goods, inventory will store it for sending it to
the showroom. Inventory will submit a report to the Production manager daily.

Financial Control: Finance department will receive a weekly basis report from the HR,
Marketing and Production manager. Financial cost controller will examine all the reports and act
accordingly, and then submit a detailed report to the GM

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Financials Statement
The startup cost of our business is as follows

Requirements Amount

Caution money for Showroom + 50,000,00

warehouse

Showroom + warehouse Rent 60,000

Decoration 4,50,000

Waste Bin 12,00,000

Leaflet 10,000

Van 60,000

Salary cost 100,000

Raw Material (plastic) 37,500

Raw Material (Paper) 250,000

Raw Material (Metal) 62,500

:
Equipment 10,000

Total start up Expenses 72,40,000

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 Pro-forma income statement for first three years

Particulars YEAR 1 YEAR 2 YEAR3

Sales 60,00,000 65,00,000 70,00,000
Cost of goods sold 40,00,000 42,00,000 45,00,000
Gross profit 20,00,000 23,00,000 25,00,000
Less operational
expenses:
Showroom + 720,000 720,000 720,000
warehouse rent
Salary 12,00,000 12,00,000 12,00,000
Depreciation cost 100,000 100,000 100,000
Utilities 36,000 36,000 36,000
Net Profit (56,000) 244,000 444,000

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Performa cash flow statement for first three year
Operational activities YEAR 1 YEAR 2 YEAR 3
Cash sell 6000000 6500000 7000000
Payment to payable (4000000) (4200000) (4500000)
Showroom+wearhouse (720000) (720000) (720000)
rent
Utility (36000) (36000) (36000)
Salary 100000 100000 (100000)
Net cash inflow from 1144000 1444000 1644000
operation
Investment Activity
Showroom + wear 5000000 …….. ……..
house security money
Waste bin + Van + (1280000) …….. ….....
Leaflet + equipment
Net cash outflow from (6280000) …….. …….
investment Activity
Financing Activity
Loan from partners 8000000 (1600000) (1600000)
Net Cash inflow from 8000000 576000 420000
Financing Activity
Net Cash and Cash 576000 420000 466000
increase

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Conclusion:

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