SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES

MANAGERIAL ECONOMICS
ASSIGNMENT - 1

BUSINESS PLAN GREEN HOUSE- REJUVENATE YOUR LIFE

Faculty: Dr. Harnita Chowdhary

Submitted By: Arpit Bansal D 15 Bicky Shah D 17 Siddhartha Sabat D 57 Souvik Mitra D 60 Varsha Pandey D 63 Batch 2011 - 13

GREEN HOUSE- REJUVENATE YOUR LIFE

Introduction:
The green house concept came into existence after watching a documentary about the medicinal usage of Marijuana in countries like U.S., Mexico and other European countries. The green house is nothing but our medical joint parlour where we shall have an In-house production of Marijuana and shall be treating the patients with control doses of Marijuana in the form of eatables, drinks, vaporised forms and fumes of smoke. Further, the legalisation of Marijuana and its usage without having any addiction and side effects were also discussed in the documentary.

What is Marijuana?

Marijuana (cannabis) is a drug formed from the dried leaves and flowers of a plant called Cannabis sativa. The use of medical marijuana is focused on applying the beneficial effects of this drug to a patient in an effort to improve the patient's overall quality of life.

Why marijuana?
The main properties of marijuana studied in medicine are: analgesic and sedative (a reason why it was used during surgeries), anti-inflammatory, anti-convulsive and laxative. At the same time, marijuana produces a growth of appetite and reduces dizziness. The medical laboratory in Kansas show the fact that the plant also presents anti-microbial and anti-bacterial actions. The

medicinal properties are amplified in the case of species grown in more elevated areas and warm climates.

Medical benefits and Treatments through marijuana

Because of its properties and effects, marijuana is used in treating a number of diseases like: insomnia, anxiety, panic attacks, depressions, neuralgias, rheumatism, gastrointestinal dysfunctions, stress, migraine, tumors, arthritis, herpes, ulcer, cholera, cancer, epilepsy, bronchitis, asthma (because of the property of bronchodilator), and gonorrhoea. It reduces intraocular pressure and because of this fact, it is recommended in treating glaucoma. The antispastic and anti-convulsive properties are indicated in cases of epilepsy, multiple sclerosis and spasms. In the case of cancer, cannabis (and especially the oil in cannabis) leads to the loss of states of dizziness and vomit which are specific to chemotherapy. For patients suffering of AIDS and hepatitis, marijuana helps with regaining their weight through increasing appetite and reducing states of nausea and vomit.

Mission:
To become the first and the only joint parlour in Mexico city to serve its people for their recreational, medicinal, spiritual and religious needs and purposes by appropriate usage of marijuana.

BUSINESS PLAN
Plan Outplay:
y y y Market/Industry Analysis Company Analysis Services Implementation Methodology

y y

Management Set-up Financial Plan

Analysis of the country:

Since the usage of marijuana as a medicinal plant is widespread all across US and other European countries and there are medical stores which specifically sell different varieties of marijuana for various medical ailments but since its usage is only concentrated for medicinal purposes, we developed a different strategy to upgrade its usage from just a medicinal plant to recreational, religious and spiritual purposes. We will make a first of its kind joint parlour in Mexico City where the usage of marijuana is legalised where people can come and enjoy the healing effects of the sweet green plant.

Company Summary:
The company is starting the first joint parlour in Mexico. The basic aim of the company is to provide in-house produced marijuana in a medically prescribed manner in various forms of intake. The company will reach the break-even point at atmost 6-8 months and we will start making profit further. After a year of gaining marginal profits then we will plan to open individual outlets and offer franchise .Our aim is to reach each and every part of the world and leave our footprints.

Services Offered:
A) Eatables

We are providing marijuana in the form of eatables for indoor there will be a special menu card of eatables and for outdoor we are providing buffet system. The marijuana will be provided

either in inter-continental or in European cuisines. The utensils will be properly sterilized. The specialist will tell the customer that which dish contains suitable amount of marijuana according to their metabolism. We will also provide marijuana in deserts also like chocolates, ice creams, pastries, cakes etc.

B) Drinks
We are offering drinks in the form of cocktails, mock tails and beverages. The amount of marijuana will be purely prescribed by our specialist. Soft drinks and breezers would contain less amount of marijuana with respect to other drinks. Elite shakes and coffees will also contain some essence of marijuana. We will also provide some special drinks which are prescribed by our specialists.

C) Vaporised Form

Non smoking customers will be provided with various bongs and vaporisers where in they will be getting their prescribed dosage of marijuana in the vapour form especially for those patients who are suffering from hypertension, nausea, anxiety etc.

D) Smoking joints

Handmade rizlas with high quality paper and smoking pipes will be given those customers who are smokers. The joints will be made of different varieties of marijuana and will be provided according to the customer s choice and taste.

E) Vending Machines

Vending Machines will be placed in various parts of MEXICO at the medical stores, which shall operate on a 24X7 basis. Filled with small sachets stuffed with glistening buds of different sizes and strains, the machines will dispense marijuana in packets of 7g or 3.5g. However, the access to the machines is strictly controlled by round the clock security guards. Only the people having legal medical prescriptions will be able to use the machine. They will be issued a pre-paid security card with fingerprint ID, and they'll have to swipe it to get the drug. Marijuana machines will offer six different types of marijuana, used to treat a wide range of medical conditions. Users can buy some 28g of marijuana a month. Users are required to register with us and have their fingerprints checked before every use of the machine. The guards will verify that users have a medical marijuana prescription, are on our list and have the special pre-loaded debit card needed to operate the machines.

F) Specialists Advice
The customers will be advised by the marijuana specialists about which kind of weed they need to smoke up and had times they will be served by these specialists in case of those customers who need special care and attention.

Management Set-up:
The company will be a partnership firm wherein there are five partners forming the firm. Each of the partners plans to contribute an initial capital of 0.05 million US$ each. The profits and losses shall be shared equally as per the capital structure of the firm. The partners also plan to recruit a few employees with a background in soft-skills training and expand the firm to a considerable size over a span of one year. The roles of the partners have been planned as follows:

FINANCIAL PLANNING

MARKETING AND PUBLIC RELATIONS

ROLE OF PARTNERS PRODUCING RAW MATERIAL

DECISION-MAKING

There is no hierarchy as such, in the firm as there are partners who shall be serving at the same level of management. The functions that the partners will be taking care of have been shown in the above figure. . For carrying out these functions effectively, each partner would require a small team of about 5 members each, to start with. Expansion in the near future will depend upon the growth of business.

Financial Set-up:
Sources of Funds
The total capital requirement has been estimated to be approximately 0.6 million US$. The firms plans to raise 0.25 million US$ through the venture capital and remaining 0.25 million US$ through loan. Although the partners plan to introduce their own capital of remaining 0.05 million US$ but they feel the requirement of loan for purchasing various equipment and accessories for marijuana plantation, hiring waiters, specialists and doctors. The firm does not plan to keep the capital structure skewed towards debt and prefers to keep a low debt-equity ratio. Investments can also be obtained by providing seminars and demos in hospitals. Then sponsorship will be gained from our regular retailers. We will organise a charity camp half yearly so that the people of Mexico can contribute some amount of money towards the patients of hypertension, nausea, anxiety etc.

40 %

40 %

Loan Sponsership Charity Equity Capital

10 %

10 %

The firm plans to bring in equal amount of capital through personal equity capital and bank loans. The capital structure has been formed on the basis of the estimated costs and the spending requirements of the company.

Cost Analysis

Areas of Expenditure Formation Expenses Purchase of land for production of Marijuana Rent/ Lease of commercial area for the facility/joint parlour Purchase of furniture, uniforms, cannalis instruments, utensils Advertising & Marketing Expenses Salaries of partners and employee costs Miscellaneous Expenses

Estimated Cost (US $) Estimated Cost (%) 0.03 Million 0.012 Million 0.012 Million 0.06 Million 0.09 Million 0.012 Million 0.06 Million 0.6 Million 5 20 20 10 15 20 10

Formation Expenses 10 % 5% Purchase of land for production of Marijuana 20 % 20 % Rent/ Lease of commercial area for the facility/joint parlour Purchase of furniture, uniforms, cannalis instruments, utensils Advertising & Marketing Expenses Salaries of partners and employee costs

20 % 15 % 10 %

The total estimated cost is 0.6 million US$ for the first year. This has been arrived at, taking into consideration the most primary expenses of any business. The above figure shows the various areas and the percentage of total cost incurred on those areas. The firm has decided to spend lavishly on the advertising and marketing expenses in order ensure good publicity of the new venture.

Infrastructure:

A) Specifications of the Joint Parlour

The joint parlour shall be rented or leased at a prime locality within the heart of Mexico. The joint parlour (2500 sq. feet) will have an accommodation of 90 customers and 30 staff members at a time. The joint parlour will have a unique feature of indoor and outdoor seating with the indoor seating being air-conditioned and having a capacity of 60 seats and the outdoor seating having a capacity of 30 seats, within a small garden for the customers. The parlour shall have around 30 round tables, 120 chairs, couches, bean bags, curtains, washrooms, kitchen, air-conditions, music system.

B) Specifications of the purchased land for cultivation of marijuana

Marijuana shall be grown in-house for the parlour supply. To save on costs and maintain quality, a farming land of acre shall be purchased at the outskirts of Mexico, where marijuana shall be cultivated.

Expansion Plans:
Taking into consideration, the above points, we would like to expand our business venture once it has achieved considerable success and profits in its start-up field. The partners plan to start open individual outlets and offer franchise and add this as a new dimension to the business. This will help the firm to innovate in its area of expertise and strengthen the differential advantage that the firm already enjoys in the market.