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Business profile

For doing the term paper I did a field work on a SME business firm whose capital investment is 5 lacks the main business of my concern firm is to sewing the dress i.e. :(Panjabi ,girls dress )for reputed branded chain in Dhaka city . There are many firms who only sale the dress the total work is not done by them, for their economical convenience they do out sourcing. This business firm does the activities of assigned outsourcing, doing the order the business owner practically do different strategy to survive in this industries.

Name of the firm

PATTERN We create the perfection

Take the order of different dress chain in Dhaka and supply as their demanded sewing or designing.

Owner biography
This gentleman MR. RON KHAN is the owner of the business, in the year 2005 he pass his HSC then he joined a garments name sincere garments as a apparel merchandiser. After working there successfully a year, in the year 07 he thought that he need education on the related field ,so he took a yearlong diploma program named professional diploma in fashion designing in 2009 he start his business name PATTERN

Firm biography
Mr. RON KHAN has established the firm in the year 2009 with a capital of 5 lacs. Initially he started the factory at Shidheswary road with 5 sewing machines. In the last 2 years he has been able to gain assignments or orders from many reputed fashion houses of Dhaka. Now a day, the

clients demand exceeds the capacity of the firm. So, the owner is thinking about the expansion of the capacity of the firm and to introduce more machine and men in the firm.

Organizational structure /stuffing:

The firm is a sole proprietorship business. The owner manages everything. At present the firm has the following employees: A) One marketing executive B) One pattern master C) Four workers. The owner works as a designer cum merchandiser.

The firm is basically efficient in making Panjabi and shirts with girls tops .

Sources of financing
Internal sources of financing Personal capital. Family Relatives

PART 2 Pricing strategy:

Here is the costing for 1000 unit of Panjabi based on true scenario:

Cost name
1)pasting 2)Fusing 3)bottom 4)fabric 5)thread FIXED COST *Electricity Rent Salary Conveyanc e Transportat ion


200yards =120tk 20yards =1600tk 4000piece =2000tk 2400yards =204000 4 cone @85 =340

1000(approx) 4000 35000 2000 3000 253060

Total The chamber of this business decided that nobody cant sell below 350 . Market price 380. With own design market price is 450 . Per unit real cost is = (253060 /1000) =253.06 Tk *design charge 50 taka per price *swing charge with pattern cutting payable =85 per piece. This is the costing system he normally go through. But he apply different strategy ,like he always think that minimum his profit be 100 tk ,so he personally apply target costing . Without compromising the quality he focuses more on efficiency and effectiveness of labor. Expert take less time than that of fresher and do minimum wastage, so ultimately efficiency is possible in his production.

He also apply brilliant strategy sometimes he buy clothing for dress ,if he do so then his profit geometrically up ,like he get huge bye discount ,lot discount ,credit facilities and finally payment and transportation facilities . Ultimately his cost minimum but return is huge.

Costing description:
He basically goes through standard costing for pricing. Target costing for internal efficiency.

Profit strategy:
As an industry has already a standard price so he has to follow that for profit making. But doing something extraordinary he must apply some other mechanism which is his non tradable asset. He has very smart sense of burgeoning power and he maintain very good supply chain management .for that all the month long he get order ,due to financial crises he cant expand his business ,he is looking forward to his positive growth and development .so far next year he go for more business expansion .

i.e: cost plus, target profit, mark up, margin, standard costing, and premium product

Customer reaction on price:

Logically customers are willing to pay as much as they demand. Because there demand is very logical and practically viable, by consulting with customer he fixed his price .

How to manage customer

By adding value to the product and total quality management he manages the customer. He always keep in mind the brand image of the ultimate product seller .