Integrating Marketing Mix Elements

The assignment requires students to develop a new conceptual framework for integrating elements of the marketing mix. It involves analyzing existing research papers and books related to marketing and business strategy, and then applying that knowledge to create a comprehensive model. The student needs to cite relevant sources, such as 'New Meanings for Marketing in a New Millennium' by Springer, 'Does Marketing Need Reform?' by Routledge, and various journal articles from publications like Clinica Chimica Acta and Scandinavian Journal of Hospitality and Tourism.

Running head: BUSINESS DEVELOPMENT PROJECT BRIEF
MBA Business Development Project Brief
Student’s name:
Name of the university:
Author’s note:

1BUSINESS DEVELOPMENT PROJECT BRIEF
Executive Summary
This new business concept is targeting to provide ‘lunch box' service to the people in a daily
basis. This business concept is lunch box delivery and return system which delivers delicious and
hot lunch from our own canteen to people at offices and students in school, colleges and
universities in Maldives. This business is going to invest 2 million dollar in order to start the
business. The name of the business will be The Yummy Tummy and it will start as partnership
basis. The Yummy Tummy will have a website and it will have a mobile app from where the
customers can give order. The customers can make payment through the app or they can avail
cash on delivery option. In the initial stage, in order to run the business, loan will be taken from
the bank. In order to operate the business, the delivery persons will be recruited and they will
deliver the customised modern disposable lunch box with logo of Yummy Tummy on it. The
customers will have lunch box at their hands within 30 minutes with delicious and nutrients food.
The market is attractive in the Maldives as the food industry provides almost 4% of the GDP and
the customers have disposable income in their hands. In the Maldives, the food industry has been
flourishing and people want to take food from outside. The economy of Maldives has been
expanded to 7.5% in last 3 years. The Yummy Tummy will take the social media promotional
strategies and it will also take the strategy of the discount pricing in order increase the customer
loyalty. The target customers are mainly office goers and the students in Maldives and they fetch
for nutritional food.
This business plan has mainly four sections where, conception, market, industry attractiveness,
business models and financial analysis of the business are given. In addition, the financial
projection has been set for first three years of the business and the organisation will use rewards

2BUSINESS DEVELOPMENT PROJECT BRIEF
strategy to encourage the delivery persons. The organogram has also been given in the business
plan.

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Table of Contents
1. Introduction..................................................................................................................................4
1.1 Rationale to the selection of this business opportunity.........................................................4
1.2 Terms of references...............................................................................................................4
1.3 The approach is taken to design and structure of the report..................................................6
1.4 Relevant Models and evidence sources used.........................................................................7
1.5 Actionable assumptions.........................................................................................................7
1.6 Timescale for achievements..................................................................................................7
2.0 Description of the business concept..........................................................................................9
2.1 The concept statement...........................................................................................................9
2.2. The windows of opportunity...............................................................................................12
3. Feasibility Research...................................................................................................................13
3.1 The feasibility research plan................................................................................................13
3.2 The main research will be secondary research....................................................................14
3.3 Research methodology.........................................................................................................14
3.4 5 Key areas of feasibility research.......................................................................................14
3.4.5.1 Product/service..........................................................................................................14
3.4.2 Industry attractiveness..................................................................................................18
3.4.3 Market Attractiveness...................................................................................................23

4BUSINESS DEVELOPMENT PROJECT BRIEF
3.4.4 Organisational feasibility..............................................................................................26
3.4.5 Financial feasibility......................................................................................................29
4. The Business Model..................................................................................................................35
4.1 Business model....................................................................................................................35
4.2 The core strategy..................................................................................................................38
4.2.1 The mission to be accomplished...................................................................................38
4.2.2 The product/market scope which connects the new venture to a viable market...........38
4.2.3 The basis for differentiation..........................................................................................38
4.2.4 Competitive positioning................................................................................................39
4.2.5 Relevant superior value propositions for core customer groups..................................39
4.2.6 Scale of the venture......................................................................................................39
4.3 The Resource Needs............................................................................................................40
4.4 Use a porter’s value chain....................................................................................................41
4.5 The partnership Networks....................................................................................................43
4.7 The value deliverables for the customer..............................................................................45
4.8 How value is added..............................................................................................................47
5. Business Plan.............................................................................................................................49
5.1 The industry, Company & Products....................................................................................51
5.2 Market, market analysis, market research...........................................................................52
5.3 Cost/volume/profit analysis.................................................................................................54

5BUSINESS DEVELOPMENT PROJECT BRIEF
5.4. The marketing plan.............................................................................................................60
5.5 Design and development plan..............................................................................................64
5.6 The management team.........................................................................................................66
5.7 Operations plan....................................................................................................................68
5.10 Business Controls..............................................................................................................74
5.11 Financial projections..........................................................................................................75
Reference List..................................................................................................................................0

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1. Introduction
This business plan is based on lunch box servicing to the office goers and school as well
as college students in Maldives. In Maldives, people order food from a nearby restaurant or from
online food delivery app. This new business concept is targeting to provide ‘lunch box' service to
the people in a daily basis.
1.1 Rationale to the selection of this business opportunity
In the Maldives, food delivery is not a new concept and food industry has been kicking
off with the participation of big names in the industry. In the Maldives, the food industry has
been flourishing and people want to take food from outside. The economy of Maldives has been
expanded to 7.5% in last 3 years (Cagua et al. 2014). A busy schedule of the people, taste and
preferences of food, rising of working couple and rapid growth of the food and beverage industry
has prompted me to come up with the idea of delivering lunch box. This business opportunity
was selected due to many frustrations of no time to prepare lunch for the kids to take school, too
expensive lunch options nearby offices, oily and greasy fast foods and if lunch is taken at a
restaurant it takes more than 1 hour to serve the food while little time to enjoy the meal. The
basis of the selection was based on what we mostly talk about during our lunch breaks of having
a customized, easily accessible, healthy and nutritious food which could replace the everyday
same boring snacks at staff lounge and to give a relief to all the working mothers who struggle to
prepare lunch to take for school. Since having an affordable and easily accessible lunch is a need
for every working individual and for the schools we found that this business idea can be made a
realistic one with the passion we have for foods.

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1.2 Terms of references
Outline the new business concept
This business concept is lunch box delivery and return system which delivers delicious
and hot lunch from our own canteen to people at offices and students in school, colleges and
universities in Maldives. The business concept is lunch box for schools, offices colleges and
universities in Maldives. The lunch will be prepared by a skilled chef in a homely environment.
The lunch box is a special customised disposable box for the delivery of the food with the
business name on it “The Yummy Tummy”.
Assessing the existing position and readiness for the new business venture
I am thinking about to recruit the staffs that are not that literate and looking for a job.
The new business venture needs great coordination and symmetric communication among the all
the teams and staffs. Delivery person can be hired as there are many Bangladeshi or Indians
working in Maldives and they can be recruited easily.
States as appropriate, assumptions upon which the new business development proposal and
financial projections are based
I am going to invest 2 million dollar in order to start the business. In the initial stage, I am
thinking about to take a loan from the bank to start the business. The shared assumption of the
business organisation will be beliefs, values and artefacts and the owners will try to motivate the
team members to do their best. Bank of Maldives offer loans for small and medium size
businesses. Therefore, initial plan is to take a loan from Bank of Maldives.
Produce adequate research to assess the feasibility of the new business concept

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This business is feasible as in the Maldives, the food industry is a string and it has been
observing a strong growth. There are enough offices in the Maldives where the office goers can
order for lunch boxes in a daily basis. In recent time, the working couples are increasing in
numbers and they do not have time to make lunches for the office. Therefore, the chance of
being successful in business is more as the investment will turn into profit in no time. I am also
thinking of doing a good advertisement promotion for the business.
A business model with a well-defined resources requirements and constraints as deemed
appropriate
Maldives is technology friendly country everyone uses smart phones. Therefore, I want to
have a smart and fully automated technology friendly easy payment. Just one click from the app,
the customers can have the lunch box and the customers can pay also through the app.
Delivering, collecting and again washing the boxes and storing involve lot of work in this
business. The customers have to download the app from the iOS or Google Play store. The users
need to sign in to this app entering the information and contact numbers. The app contains menu
and the customers will get tempted by the daily menu. After the few clicks, the meal can come to
the customers. We shall bring daily changing menu so that the customers do not get bored with
the same old menu. We are going to offer world cuisine and we shall be using only fresh
ingredients. The customers can also provide order for the whole week so that they can get hassle
free delivery at doorsteps. The business is innovative method, where parents of the students can
order their kids lunch through the app, make payment also same applies to the people working in
the offices.

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1.3 The approach is taken to design and structure of the report
I will make a market research in order to understand the condition of the market using
secondary data. At the first part of the report, business concept and products or service will be
described. In addition, target market and specific features of the business will be described. In
addition, organisational feasibility and financial feasibility are described in order to describe the
projection of the business. In the later part, the marketing process as well as a business model of
the business is given.
1.4 Relevant Models and evidence sources used
Business Canvas Model, Porter’s Five Forces, SWOT analysis, Porter’s Value Chain
Analysis Model, assumption setting, timescales for achievement, concept statement, target
market, value added, value proposition, feasibility research, industry attractiveness, market gap,
market attractiveness, segmentation, buying behaviour, start-up capital, working capital, cash
flow, breakeven analysis, the business model canvas, competition strategy, value chain, the
business plan, marketing plan, risk assessment, development and operations plan,
implementations plan, business sustainability and financial statement.
1.5 Actionable assumptions
 I expect that this business venture will make a profit of 3% by the end of 2021
 The management of new venture may understand the market demand that is sustainable
 Adequate capitalisation is needed and funds will be deployed in order to make a budget
of the business
 The economic growth rate will be 6% on each year that can benefit the new business

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1.6 Timescale for achievements
Details Year 1 (2019) Year 2 (2020) Year 3 (2021)
Turnover 3% growth 4% growth 5% growth
Net profit + 4% growth + 5% growth + 6% growth
Market share 2% 4% 5%
Brand preferences 7% 9% 10%
Table 1: Timescale for achievement
(Source: Self-developed)

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2.0 Description of the business concept
Idea generation
In India, the concept of ‘Dabbawala’ is very famous mainly in the Western part of India.
Dabbawala concept in India has been predominant for more than 100 years. The whole process is
human depended and the coordination is needed. The idea of lunchbox delivery was dormant in
the mind of mine and I have been waiting for right time to launch the business with investment.
The inception of the business venture The Yummy Tummy came from the lunch box concept,
however, my business will be much more innovative and technology oriented. In the Maldives,
the demand of food delivery is high and I want to capture the market. The users can order the
food through Smartphone app and they can track the food on the mobile.
2.1 The concept statement
The GDP of per capita growth in the Maldives was 6.6% in 2016 (Gordon and Hussain
2015). Therefore, the disposable income of the customers is high and they can spend more. In
addition, the young age generations do not want to take the homemade food daily as their
preferences of the food gets changed. I want to capture that space by giving hot and delicious
food at offices, schools, colleges and universities with reasonable price. The customers need to
download the mobile app and they can browse the food menu. They can order on daily basis or
they can order for lunch for the whole week. Different categories of food items option will be
there and the customers can select any of the food items. The price of the food products will be
mentioned there. After the browsing of the food menu, they need to click on ‘order now’ to order
the food items. This app will have two mode of payment options, cash on delivery or the
customers can pay through online transaction also. The delivery persons will deliver the

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customised modern disposable lunch box with logo of Yummy Tummy on it. The customers will
have lunch box at their hands within 30 minutes with delicious and nutrients food. Parents for
their children and office goers can create their lunch menu online and our chefs will prepare
fresh lunch each morning. Our delivery team will deliver the lunch directly to the classrooms and
office premises.
The product or service
This business venture is going to offer daily lunch box services to the offices, schools,
colleges and universities with hot and delicious food items. The customers can have the best
quality food items with reasonable price and they just let the business know what they want to
have at next week. The service is lunch box delivery and the products will be food items,
Chinese, Indian, Continental, Thai and local food dishes that the staffs have at lunch. The
number of options from food items is many and the customers can choose from this on mobile
app.
Target Market
The target market of the business is a broad group of customers who are potential defined
by ranges (Hassan and Gharleghi 2015). The target market for the business venture will be office
employees, students of the school, colleges and universities. The target market of the business
venture will be based on the mainly behavioural segment as the business will target the
customers who like to eat the food from outside in daily basis. The target customers of the
business need to have a good economic condition in order to pay for the lunch box in a weekly
basis.
The primary target market of the business will be office staffs and the students of various ages.

13BUSINESS DEVELOPMENT PROJECT BRIEF
Value-added
This business venture will provide value to the customers as it is a new concept in the
Maldives area where the customers can have lunch in a daily basis. The business venture will
have three different places in the capital of Maldives where food items will be prepared. The
delivery boy team will come to take the lunch box for the clients. The customers can order on
Sunday through mobile app with their specification of foods and the food will be at hand on time
on each day. The food items will contain nutrients value and the price will be reasonable;
payable after a week through cash or cards. A few touches on mobile screen will lead to have
best cuisine to the customers. The parents can order for their school children and the office goers
can also have the best food items with right nutrition value.
Specific features
Features of the business venture will be:
 Daily lunchbox delivery system through Smartphone app
 Technology friendly and user-friendly app
 Various types of food items are available
 No need to order in a daily basis as customers can set their weekly order through app
 The customers can pay after one week through cash or cards
 Hassel free food delivery at office premises
 The food will taste like home food and nutrients values are maintained
 No lower limit of order

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2.2. The windows of opportunity
The new business venture will give the window of opportunity to the customers after the
opening of 15 days. During this period, the customers can have flat 30% off on the bill of first
two weeks of delivery. The Maldives is an archipelago and the communication system is not as
strong as other places. The opportunity is to start the business as I got a land from the capital city
of Maldives where I can build the place just enough for the kitchen and the packing process. The
business partner has currently completed her Masters in Food and Nutrition and she will have the
knowhow of nutritional factors while deciding the menu.

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3. Feasibility Research
3.1 The feasibility research plan
This new business venture will offer delivery of food on daily basis through lunch box
and this offering of food makes sense in the capital city of Maldives as this concept will be new
in the market. There are many other restaurants that provide food items if the customers provide
order, however, this new business venture provides lunch in a day-to-day basis. There will be
two delivery teams that can provide delivery of the lunch box at right times. The potential
customers of the business will be staffs of the offices and students of various ages.
The infrastructure of the business needs to set up and this one will be crucial for the
business. There will be three canteens from where the lunch boxes will be delivered. The two
will be differentiated into two groups for delivery. The first delivery team will take the lunch
boxes from the food preparation canteens and will send these to the second team. The second
team will send the lunch boxes to the clients. Technologies that would be used are simple as
communication call and simple food preparing technologies will be used at first. The customer
support team will use communication technologies with the customers. They will also advertise
to reach customers.
The financial performance of the new business will be checked in an annual basis. As
expected, the business will reach the breakeven point after 2 years. The targeted profit
percentage will be 3% after 3 years. The business can achieve the profit percentage as the new
trend of living will allow the clients to have lunch from outside.

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3.2 The main research will be secondary research
The research process of customers’ perception and market attractiveness will be judged
through the secondary analysis as primary analysis will be difficult to do. The data of the
secondary research will be collected from a government report, economic reports of Maldives,
websites, books, journals and different reports published of the food industry. The secondary
research will provide an advantage to get the information regarding the customer perception and
market performance (Agarwal and Dahm 2015).
3.3 Research methodology
I will collect the data using realism philosophy as realism philosophy helps to collect the
secondary data from existing sources. Realism philosophy helps to collect data using both
interpretivism and positivism philosophy. This realism is contrasted against the idealism and
liberalism (Allen 2015). In addition, I will use the deductive approach in order to collect the
secondary data as deductive approach collects the data from the existing theories and concepts.
The market research team will create a hypothesis using existing literature of the Maldives
market and the research team will either accept or reject the existing concept. Moreover, I will
choose the descriptive research design in order to collect the data. Descriptive research design
will help to collect the data in the systematic point of view. In addition, the researcher will
analyse the data in depth method.
3.4 5 Key areas of feasibility research
3.4.5.1 Product/service
The new business venture will offer lunch box delivery at offices, schools, colleges and
offices. The new business venture will offer meal packets, Indian, Chinese, Continental, Thai and

17BUSINESS DEVELOPMENT PROJECT BRIEF
local food dishes for lunch. The customers need to order on Sunday for the whole week and they
can have the lunch box at their hands. Apart from the meal packets, the customers can also order
global cuisine as The Yummy Tummy is going to offer global cuisine with right set of
ingredients and nutrients.
Market share:
The expected market share after three years will be 10% of the targeted customers. The
business concept is completely new in the Maldives and there is no such company available in
the Maldives who offer the lunch box system to the customers. Therefore, the existed market
share of the business cannot be specifically told.
Price:
Large lunch box (for office) 45 rufiyaa for a vegetarian pack
50 rufiyaa for a non-vegetarian pack
Large lunch box (for students) 40 rufiyaa for a vegetarian pack
45 rufiyaa for a non-vegetarian pack
Special Indian lunch box 50 rufiyaa
Special Chinese lunch box 55 rufiyaa
Green veg Thai curry Starts from 30 rufiyaa
Sea food Starts from 40 rufiyaa
Chicken based items Starts from 50 rufiyaa
Curried penne Starts from 40 rufiyaa
Continental dish Starts from 60 rufiyaa
Table 1: Price of the products offered by The Yummy Tummy
(Source: Self-developed)

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Quantity:
The quantity of the lunch box will be sufficient for one person. The business venture will
offer four types of lunch boxes. Large lunch box will be of two types, vegetarian and non-
vegetarian types. Special Indian lunch box will have fine rice and chicken. Special Chinese lunch
box will contain fried rice and chilli chicken. The box will contain a small cup of sweet dessert
as well if the customers want. The quantity of the single food items will be settled by the
customers at the time of ordering. The quantity of the single food dishes will be mentioned in the
food delivery app.
Availability:
The customers need to order on Sunday if they want to have the lunch box for the whole
week. The customers need to specify their choices what they want to have in this week. The
customer support team will take the order to ask to pay the bill to the delivery person. The
availability of the lunch box will be depended on the order on Sunday. The food items will be
available on mobile app if the food items will go out of stock; the it will show on the mobile
screen as well.
Supplier:
The suppliers of the new business venture will be the raw materials and grocery materials
of the food items. The business venture management will take the materials from the local
suppliers. Local suppliers will be beneficial for the business as the management can cancel the
order if the demands will less. Suppliers will supply the products two days in a week and the
inventory will be managed by the employees.

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Number of products (food delivery service) available in the market
Products
available
Pricing Target segments Opening hours
and peak hours
Speed of delivery Hygiene
Seera Low pricing
items as
customers can
choose the
products from
different food
items
Office goers and
common people.
It offers a wide
variety of baked
goods, savoury
and sweet, on-the-
go quick meals
for everyday busy
people.
Customers can
put order after 11
am
Within 30
minutes of
ordering
Food is
hygienic as it
has a licence
Yummy Premium pricing
as it is famous
for Maldives
based cuisine. It
delivers
customised meal
box to the
customers from 8
am to 4 pm.
Tourists and
professionals
Customers can
put order after 11
am (peak hours
1pm-3pm)
Within 45
minutes of
ordering
Good quality
food
Jelly lunch It takes premium
pricing and it has
large rages of
food items
Mainly young
generations
Customers can
put order after 10
am (peak hours
between 12-2pm)
Within 30
minutes of
ordering
Quality food
items
Table 2: Existing food delivery organisations in Maldives
(Source: Self-developed)

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3.4.2 Industry attractiveness
Porters Five forces analyse
The threat of new entrants: Threat of new entrants in the market is low in the food delivery
market as it is not similar to the restaurant or hotel. In food delivery industry, the business needs
to have good human resources to deliver the products on time. Maldives food delivery industry is
characterised by human resources and high capital cost. In addition, a high proportion of the
fixed cost is necessary with the total cost. Therefore, this force is low for the new business
venture.
The threat of substitute: Threat of substitute in this industry is also low as there are a few
businesses that deliver the food products to the offices and students. These businesses do not
provide lunch box system in a daily basis. Therefore, the main USP of new business venture lies
in the lunch box system. The threat of substitute is low in this industry at present.
Bargaining power of suppliers: The new business venture needs to take supply from the
different suppliers. The suppliers of groceries and food materials are numerous in the market of
Maldives. The local suppliers are many; therefore, the new venture can switch to any other
suppliers. The suppliers cannot increase the price of the products without any reason. This force
is also low.
Bargaining power of buyers: The buyers purchase the products and buyers can purchase the
food products from any company if they have adequate numbers of shops to purchase (Alestete
2014). They have the power to decrease the price of the products. In the industry, large numbers
of lunchbox delivery companies are not there. Therefore, if the customers want to take the lunch
boxes, they have purchased from the new business venture. This force is moderate.

21BUSINESS DEVELOPMENT PROJECT BRIEF
Competitive rivalry: Competition in the food delivery of food items are not much as in the
Maldives, number of food delivery shops is low. In addition, existing companies do not provide
lunch box and existing food delivering companies are Shell Bean, Jelly and All day dining.
History of the industry:
The food industry in the Maldives is flourishing as the numbers of Tourists footfall are
increasing. In addition, inflation rate touched 6.2% in 2016. The customers can purchase the food
items from outside the market if needed. The new business venture will bring a new concept in
the food industry where the customers can have daily lunch box from the business venture. This
food delivering service is a new concept in the Maldives and this industry is new. The food
delivery service in previous time is limited to the existing ‘call and order' format.
Forecast uptrend and downtrend problems:
Forecast uptrend narrates the price movement of the asset when the overall direction is
upward. In addition, in an uptrend, each of the successive peak and trough is higher than the ones
found in earlier trend (Webster et al. 2014). The owner of the business will desire to have the
opportunity to earn profit from a security until it takes a reverse turn. I will take the promotional
strategies in order to draw the trade lines identifying the uptrend and they want to spot the
reversal. Downtrend forecast is about reducing the value of the products and the owners of the
business need to understand the short-term weaknesses of the business.
Main players:
Yellow Pages: Yellow Pages of Maldives are the food delivering website and people can order
the food online for takeaways. The delivery person will reach the customers within 30 minutes.

22BUSINESS DEVELOPMENT PROJECT BRIEF
The customers have to order on a daily basis and many of restaurants are registered under the
name of Yellow Pages.
Seera: Seera offers a wide variety of baked goods, savoury and sweet, on-the-go quick meals for
everyday bus and it does catering service of food and it takes order across the Maldives. People
can give order through online as well as the app. It provides warm Maldivian food.
Yummy: Yummy is an app where people can provide order for the food and readymade food
items are delivered within half an hour. People can order vegetarian and non-vegetarian food
from this app. Yummy is food delivery app and it delivers customised meal box to the people
from morning 8am to 4pm in the afternoon.
Jelly: Jelly is a food delivery service in the Maldives that provides instant food delivery through
the people across the Maldives. It provides mainly snacks and ice cream. It does not deliver the
lunch or meal to the people.
The annual turnover of the industry:
Maldives is a place of foreign tourists and restaurant based food industry is prevalent in
this country. In 2016, restaurant based food industry grew up by 7% from the previous year.
Food and beverage industry contributed almost 4% of the overall GDP (Wellton et al. 2017). In
the Maldives, in the year 2016, there were more than 500 hotels and restaurant establishments.
However, numbers of newly registered hotels are increasing day-by-day. Among all the hotels
and restaurants some of the restaurants give delivery service. Lunchbox service provider is a new
concept in the market and it falls into the category of food industry which provides service to the
common people. In the year 2014, the annual turnover of the food industry was US$134 million

23BUSINESS DEVELOPMENT PROJECT BRIEF
and it increased to almost US$160 million owning to the boom of increase of tourists coming
(Zubair et al. 2015).
All the suppliers in the industry
The suppliers in the food industry are groceries suppliers, food suppliers, equipment
suppliers, maintenance service, paper goods and food ingredient suppliers. In order to make the
food for the customers to pack in the lunch box, the organisation will make a agreement with the
suppliers.
The suppliers of the organisation will be:
United Food suppliers (Food materials)
Elimination Diet (Spices for cooking)
Simdi Group (Frozen food, fruit and vegetables)
China Food suppliers (rice and noodles)
Sunny Enterprise (Importer and exporter of food ingredients)
Strategic group mapping:

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Figure 1: Strategic Mapping
(Source: Self-developed)
Three-year plan
2019 2020 2021
Expected customers 10,000 16,000 30,000
Expected market share 2% 3% 5%
Expected human resources 400 500 700
Making USP Quality food Timely delivery Making mobile app for
lunch box delivery
Table 3: Three year plan of The Lunchbox
(Source: Self-developed)

25BUSINESS DEVELOPMENT PROJECT BRIEF
3.4.3 Market Attractiveness
About market segment
As stated by Xu et al. (2017), customer segments are broad ranges of the customers who
show similar type of tastes in purchasing any products and services. There are mainly four types
of customer segments. Geographic segment talks about the location of the customer, region and
classification of the customers based on rural or urban. Demographic segmentation is about the
age, gender, occupation and socio-economic group of the customers. In this regard, behavioural
segmentation is about the rate of usage, benefits sought, loyalty status, readiness to purchase
something. Lastly, psychographic market segment is about the personality, lifestyles, classes and
attitudes (Zhang et al. 2014). The lunchbox delivery organisation is going to target the
behavioural segment, mainly the office goers and the university, college and school students are
the target. Here, the organisation is going to understand the benefits that the customer segment is
going to choose as the young aged people do not have to time cook at home to take the lunch at
offices and universities and colleges. Therefore, they can have home-cooked food at their hands
through lunch box delivery.
Analyse existing customers’ base
In Maldives, civil servants are mainly employed in the Health and Education sector.
Almost 32% of the employees are employed in schools and 30% in hospital. Based in the
household income and expenditure, the rate of employed people is almost 85% in the Maldives.
The customer base for the new organisation will be existing office goers who can order for lunch
box in daily basis. The Yummy Tummy food delivery app is going to launch to provide service

26BUSINESS DEVELOPMENT PROJECT BRIEF
in Male area. In this area, civil servants present 9,500 for both sexes (Snyder et al. 2017). The
total population of Male is 140,900 and density of the population is 23,003/km2.
The new organisation is going to target the students of College, universities and schools.
The literacy rate in the Maldives is 97% and maximum students go to school, colleges and
universities. Therefore, the new organisation will have maximum customer base in the form of
students. In the colleges and universities, the students come from many foreign countries and
they want food delivery during lunch in the colleges and universities campus. Therefore, the
existing target customer of the organisation is lucrative and large. The students can afford the
money they would spend for the lunch and the lunch will be full of hygiene, quality and
nutrients.
Benefits and stronger point of this business venture:
1. Agility must be there in order to have an operations strategy
2. We shall make perfect team chemistry
3. Less bureaucracy is expected from us
4. We shall opt for competitive pricing
5. We shall have a mobile app that would run on iOS and android with perfect bug free interface
4P’s of Marketing mix:
Product: The Yummy Tummy will give the option to the customers to have nutrition value
based food items for lunch. The Yummy Tummy will give the option to choose from varied
global cuisine like Indian, Chinese, Thai, Continental and Sea food. In addition, this organisation

27BUSINESS DEVELOPMENT PROJECT BRIEF
will deliver the food on time in regular basis if the customers set the menu beforehand. The food
items can be sent to the customers on time through delivery.
Price: The price of the food items are majorly competitive pricing. The Yummy Tummy will
take the lower pricing strategy as lower pricing strategy will attract the large number of
customers. As stated by Armstrong et al. (2015), lower pricing stimulates the demand in the
market and it helps to gain the market share.
Place: The business will run on Male and it will have one canteen from where the food will be
delivered to different places. This business will run on online basis from where the customers
can order their food and the customers can order the food using website and mobile app.
Promotion: The Yummy Tummy will not take any traditional promotional strategies like
newspaper, radio or television advertisings as these are very costly. I am thinking to take the
online mode of advertising like SEO and PPC advertising. In addition, the organisation will take
the strategy of Facebook, YouTube and Twitter advertising. Through using social networking
advertising, the start-up can reach to the customers very easily. Before starting a video, The
Yummy Tummy can show their advertisement and observers can know about the venture
through this. The Yummy Tummy will also distribute the leaflets and pamphlets in front of
schools and colleges so that the venture can attract the students and parents as well.
3.4.4 Organisational feasibility
Organisational feasibility is entrepreneur and team
I have knowledge regarding the management study and he has experience in the field of
restaurant business. This new entrepreneurial concept is new in the Maldives; however, I have
heard about the lunchbox delivery in India; however, that was traditional method of lunch box. I

28BUSINESS DEVELOPMENT PROJECT BRIEF
have generated money from the personal saving and loan from the banks. In addition, I made the
team of experienced people who have knowledge in restaurant and food industry. I will recruit
the people from the courier delivery service and experienced managers with management
knowledge. This business is based on food and human resources who can deliver the lunch box
on time to the clients.
Explaining about entrepreneur’s experience, calibre
I am young and enthusiastic. I am going to spend money on business and I have to take
care of the team as well. The experiences of me are in management study and I have knowledge
in food and restaurant based industry. I have the calibre in maintaining large human resources. In
addition, I have the skill to management more than 250 delivery persons across the Maldives and
the delivery persons will be segregated into two different sections. I will recruit the deli very
persons who live in Maldives from India and Bangladeshi nationalities. One set of the team will
carry the lunch box from our canteen. They will hand over the lunch box containers to the second
set of teams who will deliver the containers to the end clients. I am disciplined as he is focused in
the business model in which he is going to focus. In addition, I have the quality of confidence to
handle 250 employees who will deliver the lunch box. The business model of this new venture is
unique and it does not have any competitor right now as the business concept is completely now.
SWOT analysis of The Yummy Tummy
Strengths
Knowledge of the mine
Relationship selling
Marketing strategy
Weaknesses
Quick expansion to almost all part of Maldives
New in the market
Uncommon business style

29BUSINESS DEVELOPMENT PROJECT BRIEF
Human resources
Marketing team
Business concept
Volume of the business
Brand power
Opportunities
Training to the delivery persons
Service at the door steps
Packaging in the lunch box
Revolutionary business concept
Less competitors
Threats
Price fluctuation of the suppliers
Future demand
Lack of customer base in the future
Economy of Maldives
Table 4: SWOT analysis of The Yummy Tummy
(Source: Self-developed)
Organisational structure
This new venture will start to follow the hierarchical organisational structure. In this
organisational structure, direct chain of command comes from top management and the
communication flows from top to bottom (Sheth and Sisodia 2015). Someone from the bottom of
the pyramid cannot take any decision of the organisation. In this new organisation, hierarchical
structure can operate for flowing of communication to the right person. I will remain at the top of
the pyramid and after that I will recruit two assistant managers who will take care of the
managerial level decisions. The organisation will recruit chefs and people who would help in
preparing of the food. In addition, the delivery of lunch box will be recruited and the PR team
will connect to the customers in payment related matter and query solving matter. Hierarchical
structure will help to control the orientation as it helps to closely monitor all the activities
seriously. The organisation that follows the hierarchical structure will automatically have clear

30BUSINESS DEVELOPMENT PROJECT BRIEF
reporting system and it would provide a chance to have in-depth analysis (Schaupp and
Virkkunen 2017).
Figure 2: Organisational structure of The Yummy Tummy
(Source: Self-developed)
3.4.5 Financial feasibility
Break down of initial start-up cost
Particulars 0 2018 2019 2020 2021
Initial Investment:
Purchase of Non-Current Assets -135000
Preliminary Expenses -228800

31BUSINESS DEVELOPMENT PROJECT BRIEF
Working Capital -343800
Total Initial Investment -707600 0 0 0 0
Net Operating Profit before Tax 0 710300 771366.5 847919.2 942714.5
Less: Income Tax 0 213090 231409.95 254375.8 282814.3
Net Operating Profit after Tax 0 923390 1002776.45 1102295 1225529
Add: Depreciation &
Amortization 0 22700 22168 21697.84 21282.3
Net Operating Cash Flow 0 946090 1024944.45 1123993 1246811
Terminal Value:
Sale of Non-Current Assets
Recovery of Preliminary
Expenses
Recovery of Working Capital
Total Terminal Value 0 0 0 0 0
Net Annual Cash Flow -707600 946090 1024944.45 1123993 1246811

32BUSINESS DEVELOPMENT PROJECT BRIEF
Net Present Value 481269
IRR 10.94%
Average Accounting Profit 582783
ARR 82.36%
Profitability Index 68.01%
A break down between capital and interest payments
Type of Business: Partnership company
Nature of Project:
Food Delivery Company
(App Based)
Estimate Life of Project: 3 years
Capital Structure:
Equity 45%
Non-Current Debts 55%
Types of Debts:
5 yr. Bonds at Par 60%
5 years Loan from Bank 40%
Required Rate of Return on
Equity 12.50%
Interest Rate on Loan:

33BUSINESS DEVELOPMENT PROJECT BRIEF
Bonds 7.00%
Loan from Bank 9.50%
Tax Rate 30%
Inflation Rate 2.50%
Mode of Sales:
Cash 40%
Credit 60%
Cash Collection Period 30 days
Mode of Purchase:
Cash 30%
Credit 70%
A clear breakdown of capital requirements
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Current assets
1. Stocks
2. Debtors
3. Cash in hands
and at banks
4. Advances
$23,000
$33,000
$$637,604
$12,000
$25,000
$36,000
$$993,142
$15,000
$26,000
$37,000
$1,382,129
$17,000
$30,000
$39,000
$$1,812,757
$20,000
Current liabilities
1. Creditors
2. Bank overdraft $210,000 $212,000 $216,00 $231,000

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3. Accruals $310,000
$210,000
$314,000
$214,000
$315,000
$230,000
$318,420
$241,000
A breakdown of sales and cash flows
Particulars Year 1 Year 2 Year 3 Year 4
Selling Price per unit $3,500 $3,588 $3,677 $3,769
Variable Expenses per unit:
Raw Material ($150) ($154) ($158) ($162)
Direct Labor Cost ($100) ($103) ($105) ($108)
Variable Manufacturing Overhead ($650) ($666) ($683) ($700)
Sales Commission ($18) ($18) ($18) ($19)
Travelling Expenses ($26) ($27) ($28) ($28)
Total Variable Costs per Unit ($944) ($967) ($992) ($1,016)
Contribution Margin $2,556 $2,620 $2,686 $2,753
Fixed Costs:
Depreciation on Property, Plant & $2,100 $2,100 $2,100 $2,100

35BUSINESS DEVELOPMENT PROJECT BRIEF
Equipment
Depreciation on Furniture & Fixtures $1,000 $900 $810 $729
Depreciation on Computer Equipment $1,800 $1,584 $1,394 $1,227
Amortization of Patent $1,000 $1,000 $1,000 $1,000
Amortization of Trademark $15,000 $15,000 $15,000 $15,000
Insurance $12,000 $12,300 $12,608 $12,923
Rates & Taxes $6,500 $6,663 $6,829 $7,000
Salary of Office Staffs $100,000 $102,500 $105,063 $107,689
Cleaning Charges $5,000 $5,125 $5,253 $5,384
Electricity for Office $15,000 $15,375 $15,759 $16,153
Telephone & Internet $8,000 $8,200 $8,405 $8,615
Interest on Bond $16,346 $16,346 $16,346 $16,346
Interest on Loan From Bank $14,789 $14,789 $14,789 $14,789
Depreciation on Motor Vehicle $16,346 $16,346 $16,346 $16,346
Salary of Marketing Staffs $14,789 $14,789 $14,789 $14,789
Total Fixed Costs $229,669 $233,015 $236,489 $240,089
Break-Even in Units 90 89 88 87
Costs of possible failure

36BUSINESS DEVELOPMENT PROJECT BRIEF
The Yummy Tummy can fail if the market research shows the wrong information. I have
done the market research and it shows that the food delivery market is growing. The demand in
the market is exceptional as the parents want to order nutritional food items and the office goers
do not have time to make the lunch. If the value proposition is not compelling enough, the
organisation may fail. In addition, the business model of The Yummy Tummy may also fail if
the strategies of the business do not work. I am too optimistic about the business model and cost
of acquiring customer is higher than the life time value of the customers. Poor management team
can lead to the failure of the business. Running out of cash can be another reason of failure for a
start-up (Fan et al. 2015). If The Yummy Tummy fails, the internal failure costs will be scrap,
scrap disposal, additional material procurement, downgrading and supplier rework.

37BUSINESS DEVELOPMENT PROJECT BRIEF
4. The Business Model
4.1 Business model
Figure 3: Business Canvas model
(Source: Self-developed)
Channels:
The business venture will use the channels using the delivery team. The new venture will
have two set of delivery team. First team will collect the lunch box from the canteens and will
hand over to the second set of team who will be standing at the railway stations or bus stops. The
second team will deliver the lunch box to the clients. These two channels are very important for
the business venture and there will be three canteens across the Maldives from where the
delivery team take delivery.

38BUSINESS DEVELOPMENT PROJECT BRIEF
Key activities:
The business venture has key activities like developing the client relationship as the
customers will not know about the lunch box system. The organisation can develop the client
relationship through advertising in social media or in print media. The new venture can start the
marketing and awareness campaign in the offices, schools and colleges through calling the
employees and students. It can start distributing pamphlets and leaflets on the roads near the
offices, schools and colleges in order to reach the clients. In addition, key activities are related to
the delivery of the lunch box to the clients at right time as it requires a good symmetry with the
delivery team.
Identity:

39BUSINESS DEVELOPMENT PROJECT BRIEF
Figure 4: Logo of the new venture
(Source: Proposed logo of The Yummy Tummy)
Key partnership:
This organisation will start as partnership I will not be the sole owner of the business.
The partners for the business will be only suppliers and the team members of the organisation. In
order to take the loan for the investment, I will apply for the loan to Commercial Bank in
Maldives. I will wait for the loan to be granted. The suppliers of the organisation will be five and
the names of the suppliers have already been named in the previous section, Elimination Diet,
Simdi Group, China Food supplier, United Food suppliers and Sunny enterprise. Waste
management team is also a partner of the organisation and it helps to reduce the waste.
Relationship:
The new venture named, The Yummy Tummy will provide value of the mutual
understanding with customers. The PR team maintains a Customer Relationship Management for
the customers. The PR team of the organisation tries to consult with customers in order to show
how the organisation is different from others. The organisation will use the PR team in order to
set the price of the food items. The value of the organisation lies in its business concept as the
concept is completely new in this field.
Value propositions:
Value of the organisation lays concept of daily lunchbox delivery operation. This concept
is completely new in the market of Maldives and price of the food items will remain low. The
value of the organisation will also remain on the reduce cost for waste management. In other

40BUSINESS DEVELOPMENT PROJECT BRIEF
word, the clients of the organisation can order once in a week and they can enjoy delivery of the
lunch box for whole week.
4.2 The core strategy
4.2.1 The mission to be accomplished
The mission statement of the organisation The Yummy Tummy will be ‘We want to
deliver the quality food to the customers in daily basis at lunch time through Smartphone app.
Our best delivery team is always busy to deliver the food at right time in your desired place. We
provide importance on waste management.’
4.2.2 The product/market scope which connects the new venture to a viable market
The restaurant based food industry is capable of new entrant. The Yummy Tummy is
different concept as it is not just the restaurant based business. The Yummy Tummy will have
three canteens from where the lunch boxes and food items will be sent to the customers. The
service of the business venture will be completely new as the customers will get hot and quality
lunchbox at the lunch time. The market will provide enough support as the target customers will
be students and office goers. The venture will be successful as numbers of the students in
Maldives are large in numbers and many of them come from foreign countries.
4.2.3 The basis for differentiation
The concept is different from the average restaurant and hotels. As stated by Ng et al.
(2013), service or product differentiation is a process of marketing that shows the differences of
service from the competitors. Differentiation helps the organisation to look more attractive its
service or products by contrasting its unique qualities with other competing products or service.
The Yummy Tummy will provide lunch to the clients at right time to the clients. The clients can

41BUSINESS DEVELOPMENT PROJECT BRIEF
enjoy their desired food items and they don’t need to order in daily basis as once in a week is
enough. Successful product creates competitive advantage for the organisation (Stroh 2014).
4.2.4 Competitive positioning
Competitive positioning strategy includes market profile, customer segments, competitive
analysis and method for delivering the values (Mullin et al. 2014). Market profile will be made
by the PR team as it is described by size, competitors and stage of the growth. Customer
segments of The Yummy Tummy will be office goers and students. Competitive analysis has
been done in the previous section where the strengths, USP and weaknesses of the competitors
have been made. The value of the organisation will be the delivering of the lunch box and food
items all days.
4.2.5 Relevant superior value propositions for core customer groups
Value proposition means to a business or marketing statement that a company utilises to
summarise why consumer should purchase their products or services. This value proposition
statement persuades the potential consumers that particular services or products will add value to
solve the issue (Mintz and Currim 2013). The Lunch Box can provide value to the office goers
and the students by offering daily lunch that is prepared like home-cooked. Value proposition
will help the organisation to have better pricing.
4.2.6 Scale of the venture
I am going to invest 2 million dollar to establish a new business venture and the scale of
the business will be a mobile app that will provide the customers to browse new food items and
order from there. The scale and direction of the new venture performance are likely to be
affected by the venture and the context. The venture can perform well as there is a good chance

42BUSINESS DEVELOPMENT PROJECT BRIEF
of penetrating the food delivery industry. There will be more than 250 delivery persons will be
recruited in order to start the new business venture. Scale of the business is not large as the
venture risk is low.
4.3 The Resource Needs
Financial resources Internal funds and external capital of the organisation.
I am going to invest my saved financial resources in this venture and I am looking for
to take a loan from Maldives based banks. Overall investment for this venture will be
2 million dollar.
Human resources and
capabilities
I am going to recruit 250 delivery persons in this venture at first. The delivery persons
will be segregated into different segments. The delivery persons of the business will
be mainly Indian and Bangladeshi. In addition, chefs, Customer Executives, Software
developer team and Managers need to be recruited.
The knowledge, exposure, experience, trust and talents are needed within the firm that
are vital resources for the business The Yummy Tummy as the business is responsible
on delivery persons.
Technological resources
and capabilities
The technological innovation is one of the most important factors as the app is based
on technological innovation. The app will contain user-friendly interface and there
will be images of the food as well as the price. In addition, the app will give the
chance to pay the price through online. The customers can set their daily menu
through this using selected date and timing of order for delivery.
Physical resources Physical resources are tangible in nature and these are either man-made or natural.
The Yummy Tummy needs to have machines and equipment to prepare food and it
will have a building as physical office from where the food packets will be delivered.
The Yummy Tummy will use biotic physical resources which are obtained from the
biosphere and it will also use a-biotic physical resources which are non-living in
nature.
Reputational resources This type of resources is derived from the public perception of the venture that gets

43BUSINESS DEVELOPMENT PROJECT BRIEF
recognised by things such as personal resources and experience of business. The
Yummy Tummy needs to have reputational resources and it will provide value to the
entrepreneurship in business.
Organisational resources Organisational resources are approach towards planning, controlling and organising
for directing the business affairs.
Organisational resources are low for the new business venture and it refers to the
reporting system, information, hierarchy and decision-making of the executives.
Table 5: Resource needs of The Yummy Tummy
(Source: Self-developed)
4.4 Use a porter’s value chain
Porter’s value chain analysis describe the activities that an organisation operates in a
specific industry performs in order to deliver a valuable product for the market.

44BUSINESS DEVELOPMENT PROJECT BRIEF
Figure 5: Porter’s value chain analysis
(Source: Self-developed)
Business is adequately resourced to deliver sustainable competitive advantage
The Yummy Tummy venture will be adequately resourced in both tangible and intangible
resources. The organisation is going to have the best technological specifications that would
allow the organisation to provide customer satisfaction. The software development team of the
organisation needs to maintain bug free software in order to provide best customer service

45BUSINESS DEVELOPMENT PROJECT BRIEF
experience. The human resources will be recruited from Indian and Bangladeshi people who live
in Maldives.
Core competencies or capabilities, we must have and how are these assured for the future,
both for shorter and long term basis to provide sustainable competitive advantage (Pavlou and
Stewart, 2015). The Yummy Tummy organisation can have the competitive advantage through
brand creation as we are going to do online promotion of the start-up. Distribution advantage is
one of the major advantages of the new start-up as the whole business is depended on the
delivery persons. Differentiation of the business is needed in order to have competitive
advantage and this business has competitive advantage, like menu planning in lunch for office
goers and the students of schools and colleges.
Strategic assets
The Yummy Tummy has best cooking and technological equipment to provide best
cuisine and develop the app. The location of the business will be on Male and the business will
have privileged networks. We shall take patent and we shall opt for trademark. We shall make a
brand of the Yummy Tummy.
4.5 The partnership Networks
1. Business partners:
The Business partners of The Yummy Tummy will be suppliers of the business and the software
developer team who would help to make the app and successful run of the app. The partner of
the business will be nutritionist who will help to set the menu of the food dishes.
2. Suppliers:

46BUSINESS DEVELOPMENT PROJECT BRIEF
United Food suppliers (Food materials)
Elimination Diet (Spices for cooking)
Simdi Group (Frozen food, fruit and vegetables)
China Food suppliers (rice and noodles)
Sunny Enterprise (Importer and exporter of food ingredients)
3. Channel Members
Channel members of the business are those who are involved in the process of getting
services and products to the end users. The channel members of the business will be delivery
persons who will be recruited and they will be mainly Bangladeshi and Indian.
4. Stakeholders
Stakeholders of the business will be staffs, managers, delivery persons, customers mainly officer
goers and students, suppliers, IT executives and government.
5. Trade partnership/alliances
Trade partnership will be made to an IT company who will help to develop the mobile
based app and they will help to update the app in regular basis. This venture will be a mobile
phone based food delivery of lunch box and we shall have another website from where the
customers can put their orders also.
6. Outsourcing

47BUSINESS DEVELOPMENT PROJECT BRIEF
Outsourcing is a practice of handing over control of private enterprise and we shall do the
outsourcing of our business through customer support executives.
7. Endorsement
Our business venture will endorse the act of food delivery through the mobile app and the
customers can have who week lunch through just a few clicks. In daily life, the people are busy
and the parents cannot make lunches for their children and the office goers do not have time to
make the daily lunches. This app will help people to have lunches from international dishes. We
shall make a campaign for healthy living to endorse the app to the people.
8. Professional bodies
In food delivery industry, the professional bodies regulate the food safety. In Maldives,
government has food safety system and this policy includes the food safety for the customers.
Professional bodies are World Organisation for Animal Health and International Plant Protection
Convention. In addition, Maldives is a member country of World Trade Organisation (WTO)
therefore; the staffs of the organisation must be given all the facility.
9. Government agencies
In Maldives, we shall take the Food Safety Certification from the Maldives government
agency. National Food Safety Policy in Maldives takes the responsibility that takes the
coordination on multi-sectoral approach (Stojanov et al. 2017). Maldives Food and Drug
Authority regulate the food import and production of local foods.
4.7 The value deliverables for the customer
1. Functional proposition

48BUSINESS DEVELOPMENT PROJECT BRIEF
The quality of the food items will be the best in the market as all the food items will have
nutrition value. The lunch box and food items will contain food items that would provide all
types of vitamins and minerals for the children. We have a nutrition team from where the
percentage of the protein, calorie and carbohydrate will be maintained in the food items. Our
venture will have the certification from MFDA.
2. Emotional proposition:
We shall make the brand identity through the advertisement on online portal and social
media. On social media, we shall try to focus on oily and greasy foods that the children eat each
day in school. These types of foods will impact on the health of the students in schools and
colleges. In addition, the office goers do not have enough time to make the lunches daily for
them. This The Yummy Tummy venture will hit on both the targets and the customers can touch
the emotional quotient.
3. Competitive proposition:
The Yummy Tummy venture is different from other food delivery mobile app as this
venture will produce the food items from its own food canteen and each of the dishes will have
nutritional value. In addition, the parents of the children can set the menu for their children and
the office goers can set the menu for themselves in the beginning of the week. Therefore, this
venture will provide whole week’s lunch at the office premises and the classrooms. The app will
have payment option from where the customers can pay through online mode of payment.
4. Price proposition:

49BUSINESS DEVELOPMENT PROJECT BRIEF
As stated by Drucker (2017), perceived value is the worth of the service and products in
the mind of the customers. Sometimes, the customers do not aware of the true cost of production
which food items they purchase. The mobile app will have user-friendly interface and it has very
quality image of the food items. Price perception of the food items will be high as the customers
will perceive the value of the food items might be high. The competitors in the market provide
high priced food items.
4. Ethical and legal proposition
The Yummy Tummy organisation will have the ethical values as they never compromise
the price with the qualities of the products. In addition, the food products are delivered in
disposable packets that would add extra value to the organisation as it will provide a side of
social-entrepreneurship. This venture will be a partnership business as I am going to start the
business taking the help of one of my business partners.
Core values of The Yummy Tummy are:
 Reliability for food items
 Loyalty to the users of the app
 Commitment to the customers
 Honesty towards the customers
4.8 How value is added
The food delivery apps in the market do the same thing as they deliver the products from
outlets as the customers. Therefore, The Yummy Tummy organisation delivers the food from its
own canteen. The added value of The Yummy Tummy is associated with the nutritional value of
the food items; the customers can order the food items for the whole week through this app. They

50BUSINESS DEVELOPMENT PROJECT BRIEF
can pay through app or using cash on delivery option. The Yummy Tummy will add extra value
to the food items using disposable packets that would be environment friendly.

51BUSINESS DEVELOPMENT PROJECT BRIEF
5. Business Plan
Logo of the business The Yummy Tummy
Tag Line: ‘A Treat to Your tastebuds ’
Prologue:
The Yummy Tummy is going to open its food delivery app for the office goers and
school and college students in Maldives. The users can download the mobile app and they can
also order from the website of The Yummy Tummy. The food would be delivered to the office,
schools or college premises at the right time. The lunchbox concept for the office goers and the

52BUSINESS DEVELOPMENT PROJECT BRIEF
school children has been used in The Yummy Tummy. The quality of the food will be good and
the food dishes will have nutritional value.
The geographic market locations of the business will be Male the customers will accept
the concept of the business as day-by-day the customers are trying to focus on less oily and
greasy food. Therefore, the common people will eventually attract towards nutritional food.
Today’s life is very busy; the office goers do not have time to prepare lunch. The office goers
can order the lunchboxes for them at the desk. The business has high potential as the delivery
persons are available in the market of Maldives as Bangladeshi and Indian can be recruited as the
delivery persons. The parents of the school children can set the menu and the parents can order
the food for their children through The Yummy Tummy. The competitive strategy for
competitive advantage of The Yummy Tummy will be nutritional value of the food, the weekly
order, payment mode, quality of the food and pricing. The legal structure of the business will
have the partnership as there will be twp partners of the business.

53BUSINESS DEVELOPMENT PROJECT BRIEF
5.1 The industry, Company & Products
The Yummy Tummy organisation will be in food delivery industry and food delivery
service industry in Maldives has touched a growth of 4%. Hospitality industry in Maldives is
very strong; however, The Yummy Tummy organisation will be in the food delivery service
using the mobile app. The location of the company The Yummy Tummy will be Male, the
capital of Maldives. The company will have a legal framework of partnership business and the
performance of the business will be judged through the users of the app and websites and the
numbers of customers.
The Yummy Tummy will bring a new concept of lunchbox delivery service to the office
goers and students of schools and colleges. The users need to download the app and they can
select the food items. The customers can make a menu for the lunch. The customers can purchase
the food dish items or they can take the meal box. The customers can make payment through app
or they can also use cash on delivery service. The users of the app can select the lunch delivery
for the whole week also.
Key success factors:
Success factors of the business will be service delivery on time as the customers can get
the delivery within 30 minutes and they can track the order using mobile app. The parents of the
school children provide orders through app for the students and the students can get quality and
nutritional food items as well. The customers will be offered quality global cuisine; Continental,
local, Indian and Thai food.
Long term potential:

54BUSINESS DEVELOPMENT PROJECT BRIEF
The Yummy Tummy is targeting the office goers and students of the colleges and
schools. The parents of the students want to provide quality food with nutritional food to the
students. The parents of the students and office goers do not want to have oily and greasy food
daily in lunch. Therefore, they want to have nutritional lunch in daily basis; The Yummy Tummy
will have opportunity to create demands in the market.
5.2 Market, market analysis, market research
The food delivery industry in Maldives is not new and the market size is almost $1.2
billion. There are competitors in the market that deliver the foods through mobile app. In the year
2016, food industry grew up by 7% from the previous year. Food based industry contributed
almost 4% of the overall GDP in Maldives (Meiekord 2017). Market research showed that the
Maldives is known for the upmarket tourism spreading across the different archipelago. Office
goers and students don't like to eat same types of food daily and they prefer taste change.
Customers by market segments:
The Yummy Tummy will choose the demographic and geographic segments of the
market. As stated by Naylor (2017), geographic market segments are all about location and
regions of the customers. I will choose the customers who are living in Male, the capital of
Maldives. Demographic market segments are associated with age, gender, occupation and socio-
economic group (Sheth and Sisodia 2015). The Yummy Tummy can also target the
psychographic segment in the market as the personality, lifestyles, attitudes and class of the
people are associated with this.

55BUSINESS DEVELOPMENT PROJECT BRIEF
The Yummy Tummy will target the office goers in Maldives and the target customers will be on
both sexes. The students across the schools and colleges will be targeted as the parents of them
will set the menu for the students.
The Yummy Tummy will take the market positioning through the advertisements on
social media. The position of the company will be on Male and the positioning strategy will be
distinguished from the competitors and products. The branding of The Yummy Tummy will be
done through the regular marketing activities.
Buyer behaviour, capacity of customers:
In the Maldives, most of the customers have their own Smartphone and they are tech
savvy. The customers can use their mobiles to order the food items. Buyer behaviour of the
customers in Maldives is based on tech savvy in nature and their tastes change. The preferences
of the customers can change with the time in Maldives. GDP per capita income of the Maldives
is $ 13,000 and disposable income of Maldives people are increasing with the time (Stojanov et
al. 2017.
Competitions:
In the food delivery industry, there are many of the restaurants and online based
companies deliver the food items to the customers. The Yummy Tummy produces the food items
for itself and it will deliver the food packets through its delivery team. The competitions in the
market are with Seera, Yummy, Jelly and Yellow Pages. The competitors are not very strong and
the target customers of the organisation are different from the competitors.
Established market share, sales projection:

56BUSINESS DEVELOPMENT PROJECT BRIEF
The Yummy Tummy sets the target of 7% market share within 2021. This target is quite
feasible as the food delivery industry will be flourishing and I am trying to provide only
nutritional food to the customers.
Competitive positioning, differentiation & pricing:
Competitive positioning of The Yummy Tummy is based on the app based food delivery
and the customers can get home like nutritional based products. Differentiation to the
competitors is based on mainly global cuisine and the offering of nutritional based food products.
Each of the food item on mobile app will show the image and the customers can see the
nutritional value if the customers want to see. The parents of the school students can set the
menu for their children and the lunch box will be delivered to the classrooms on time. Pricing of
The Yummy Tummy will be lower pricing competitive pricing that would attract the customers.
Value proposition for core customer segments:
The value proposition of The Yummy Tummy is based on mainly nutritional food
offering to the customers. Value of this mobile app is based on the payment that the image
quality is also good. Value of the food items are based on the quality and the customers can order
their food in weekly basis.
5.3 Cost/volume/profit analysis
Particulars 2018 2019 2020 2021
Inflation Rate 2.50% 2.50% 2.50%
Sales Growth Rate 4% 5% 6%

57BUSINESS DEVELOPMENT PROJECT BRIEF
Sales Volume 400 416 436.8 463
Selling Price Per Unit $3,500 $3,588 $3,677 $3,769
Total Sales Revenue $1,400,000 $1,492,400 $1,606,196 $1,745,131
Cost of Goods Sold per unit:
Raw Material Consumed ($150) ($154) ($158) ($162)
Direct Labor Cost ($100) ($103) ($105) ($108)
Total Cost of Goods Sold p.u. ($250) ($256) ($263) ($269)
Total Cost of Goods Sold ($100,000) ($106,600) ($114,728) ($124,652)
GROSS PROFIT $1,300,000 $1,385,800 $1,491,467 $1,620,479
Variable Manufacturing Overhead p.u ($650) ($666) ($683) ($700)
Total Variable Manufacturing
Overhead ($260,000) ($277,160) ($298,293) ($324,096)
Depreciation on Property, Plant & ($2,100) ($2,100) ($2,100) ($2,100)

58BUSINESS DEVELOPMENT PROJECT BRIEF
Equipment
Total Manufacturing Overhead ($262,100) ($279,260) ($300,393) ($326,196)
General Administrative Expenses:
Depreciation on Furniture & Fixtures ($1,000) ($900) ($810) ($729)
Depreciation on Computer Equipment ($1,800) ($1,584) ($1,394) ($1,227)
Amortization of Patent ($1,000) ($1,000) ($1,000) ($1,000)
Amortization of Trademark ($15,000) ($15,000) ($15,000) ($15,000)
Insurance ($12,000) ($12,300) ($12,608) ($12,923)
Rates & Taxes ($6,500) ($6,663) ($6,829) ($7,000)
Salary of Office Staffs ($100,000) ($102,500) ($105,063) ($107,689)
Cleaning Charges ($5,000) ($5,125) ($5,253) ($5,384)
Electricity for Office ($15,000) ($15,375) ($15,759) ($16,153)
Telephone & Internet ($8,000) ($8,200) ($8,405) ($8,615)
Total General Administrative Expenses ($165,300) ($168,647) ($172,120) ($175,720)
Selling & Marketing Expenses:
Depreciation on Motor Vehicle ($1,800) ($1,584) ($1,394) ($1,227)
Salary of Marketing Staffs ($150,000) ($153,750) ($157,594) ($161,534)
Sales Commissions @0.5% on Sales ($7,000) ($7,462) ($8,031) ($8,726)
Travelling charges @0.25% on Sales ($3,500) ($3,731) ($4,015) ($4,363)

59BUSINESS DEVELOPMENT PROJECT BRIEF
Total Selling & Marketing Expenses ($162,300) ($166,527) ($171,034) ($175,849)
Net Operating Profit/(Loss) $710,300 $771,367 $847,919 $942,714
Interest Expenses:
Interest on Bond ($16,346) ($16,346) ($16,346) ($16,346)
Interest on Loan From Bank ($14,789) ($14,789) ($14,789) ($14,789)
Total Interest Expenses ($31,134) ($31,134) ($31,134) ($31,134)
Net Profit before Tax $679,166 $740,232 $816,785 $911,580
Income Tax Expenses ($203,750) ($222,070) ($245,035) ($273,474)
Net Profit after Tax $475,416 $518,162 $571,749 $638,106
Gross Profit Margin 92.86% 92.86% 92.86% 92.86%
Net Profit Margin 33.96% 34.72% 35.60% 36.56%
Return on Equity 149.30% 162.73% 179.56% 200.40%

60BUSINESS DEVELOPMENT PROJECT BRIEF
Particulars Year 1 Year 2 Year 3 Year 4
Cash Flow from Operating Activities:
Cash Sales $560,000 $596,960 $642,478 $698,053
Collection from Debtors $770,000 $890,820 $958,028 $1,040,132
Cash Purchase ($24,000) ($25,584) ($27,535) ($29,917)
Payment to Suppliers ($30,000) ($37,980) ($40,814) ($44,279)
Direct Labor Cost ($36,667) ($42,420) ($45,620) ($49,530)
Manufacturing Expenses ($260,000) ($277,160) ($298,293) ($324,096)
Insurance ($12,000) ($12,300) ($12,608) ($12,923)
Rates & Taxes ($6,500) ($6,663) ($6,829) ($7,000)
Salary of Office Staffs ($91,667) ($102,292) ($104,849) ($107,470)
Cleaning Charges ($5,000) ($5,125) ($5,253) ($5,384)
Electricity for Office ($13,750) ($15,344) ($15,727) ($16,121)
Telephone & Internet ($7,333) ($8,183) ($8,388) ($8,598)
Salary of Marketing Staffs ($137,500) ($153,438) ($157,273) ($161,205)
Sales Commissions @1.5% on Sales ($7,000) ($7,462) ($8,031) ($8,726)
Travelling charges @2% on Sales ($3,500) ($3,731) ($4,015) ($4,363)
Income Tax Expenses ($203,750) ($222,070) ($245,035) ($273,474)
Cash Inflow/(Outflow) from Operating
$491,334 $568,030 $620,233 $685,100

61BUSINESS DEVELOPMENT PROJECT BRIEF
Activities
Cash Flow from Investing Activities:
Purchase of Non-Current Assets ($135,000)
Preliminary Expenses ($228,800)
Sale of Assets
Return on Deposits
Cash Inflow/(Outflow) from Investing
Activities ($363,800) $0 $0 $0
Cash Flow from Financing Activities:
Share Issue $318,420
Bonds Issue $233,508
Loan From Bank $155,672
Interest Payment ($31,134) ($31,134) ($31,134) ($31,134)
Dividend Payment ($166,396) ($181,357) ($200,112) ($223,337)
Repayment of Bond
Repayment of Loan from Bank
Cash Inflow/(Outflow) from Financing $510,070 ($212,491) ($231,247) ($254,472)

62BUSINESS DEVELOPMENT PROJECT BRIEF
Activities
Net Cash Increase/(Decrease) for the period $637,604 $355,538 $388,987 $430,628
Add: Opening Cash Balance $0 $637,604 $993,142 $1,382,129
Closing Cash Balance $637,604 $993,142 $1,382,129 $1,812,757
1 2 3 4 5
$300,000
$305,000
$310,000
$315,000
$320,000
$325,000
$330,000
$335,000
$340,000
Break-Even in Dollar
Break-Even in Dollars
Figure 6: Breakeven of the venture
(Source: Self-developed)
5.4. The marketing plan
Business objectives
 To create a market share of 7% by the end of 2021
 To create a strong customer base among school children and office goers

63BUSINESS DEVELOPMENT PROJECT BRIEF
 To make a solid foothold on Maldives food delivery industry
 To reach a large number of customers through using emails and social media network
Business environment review
Strengths:
 Knowledge of the managers and the owner of the business
 Marketing strategy
 Marketing team
 Relationship selling and business concept
 Mobile technology
Weaknesses:
 Quick expansion to almost all part of Maldives
 New in the market
 Uncommon business style
 Brand power
Opportunities:
 Training to the delivery process
 Service at the door steps
 Revolutionary business idea
 Less competitors
Threats:

64BUSINESS DEVELOPMENT PROJECT BRIEF
 Price fluctuation
 Future demand
 Lack of customer base in the future
 Economy of global market
Market segment focus
Demography segmentation Geographical segmentation Psychographic segmentation
The people who work in Maldives
based office and the students in
colleges and schools
The office goers and students of
Males
The individuals who want to have
nutritional food items, not oily and
greasy food. People who do not have
time to make lunch for themselves
Table 6: Market segment focus
(Source: Self-developed)
Core business segments
The priority of the business provided to the office goers who go to office in daily basis.
The target customers of the business are the office goers who can afford lunch box in daily basis.
The students are also target customers of the business. Core business segments of The Yummy
Tummy are based on office goers and the students.
Customer relationship management
Customer loyalty scheme will be based on the discount pricing to the customers. The customers
need to open an account in order to purchase the food items. In this scenario, the customers can
get flat 30% off when they would open a new account. The loyalty scheme would start if the
customers want to take order for whole week basis; the customer would get flat 10% off on price.

65BUSINESS DEVELOPMENT PROJECT BRIEF
Facebook YouTube Twitter
Company brand awareness Share images, news and
posts
Brand channel and share
short advertisement before
videos
Share images, news and
stories
Marketing opportunity Facebook business page Advertisement and
subscription of channel
Retweets and follows
Increase website traffic
and download of app
Share links to downloads Subscription growth Share links to downloads
and website
Table 7: Social media marketing strategy
(Source: Self-developed)
Internal, external, interactive marketing
2019 2020 2021
Internal Vertical communication
among the employees
Vertical communication
among the employees
Horizontal communication
External Sales promotion Advertising Public relations and
advertising
Interactive Customer service,
customer service centre
Service capes, encounters Customer service
Table 8: Various types of marketing
(Source: Self-developed)
5.5 Design and development plan
Development stages
Development stages start with system-level designing and in this stage, the organisation
can develop plan for service options and extended service to the office goers. Detail designing

66BUSINESS DEVELOPMENT PROJECT BRIEF
stage deals with developing marketing plan. Testing and refinement process deal with the
development of promotion and launch with materials. It can deal with facilitate the field tests. In
the last stage, is the reduction ramp up stage where the organisation would place with early
production with key customers.
Gantt chart for 1st three year plan
1st month 12th month (1st
year)
18th month 24th month (2nd
year)
36th month (3rd
year)
Concept
development
✓
System-level
design
✓
Detail design ✓
Testing design ✓
Production
ramp-up
✓
Project planning:
Project planning starts with project charter where the management body will define the
scope of the project. I will discuss with the managers about the project schedule. The marketing
plan will take the time of at least three years to complete the whole process. Project schedule
needs to deliver. Project resource should be captured in order to deliver the project planning and
budget. The management body would try to deliver the project quality and avoid the risks.
Allocations of resources:

67BUSINESS DEVELOPMENT PROJECT BRIEF
Allocation of resources for the marketing process will start from the project planning
phase. Allocation of resources will be done through the project managers and the assistant
managers. Resources of the marketing are associated with the social networking, email,
marketing team and PR team and market analysis.
Development cost
Development cost of the marketing strategy is set to approximate 120k rufiyaa.
Finance
This money will be segregated into different parts and the financial department will be
maintained by the financial officer. The cash-flow and the balance statement will be made
following the basic function of the organisation.
HR requirements
HR requirement of The Yummy Tummy will be a right employee engagement planning
for the staffs who deliver the products. The HR department of the organisation will be
maintained by the managers of the organisation. HR requirement will be the motivational needs,
employee engagement and organisational development through the staffs of the organisation.
The HR department will recruit the staffs.
Additional capital requirements
Capital requirement of the organisation is the amount of capital a bank or financial
institution has to sell as required by its finance regulator. Additional capital requirement of the
organisation can be based on operational and marketing.

68BUSINESS DEVELOPMENT PROJECT BRIEF
5.6 The management team
Organisation charts
Figure 7: Proposed organogram of The Yummy Tummy
(Source: Self-developed)
Key personnel:
Key personnel of The Yummy Tummy will be the two managers who will control the
entire operational process. The budget calculation and the overall financial calculation of the
organisation will be done by the finance department. This venture will be basically food delivery
app and the venture will recruit more than 250 food delivery persons. We shall be going to
recruit five chefs who will be able to cook and have experience in this field.
Ownership:

69BUSINESS DEVELOPMENT PROJECT BRIEF
The ownership of the business will follow the Partnership legal structure. There will be
two legal partners of the business.
Compensation plans:
The monthly salary will be decided at the time of recruitment. In addition, we are
planning to provide bonus and incentives to the employees if the employees perform well. The
incentive scheme will be shortly finalised. Moreover, we are planning to provide the managers,
chefs, assistant managers, accountants and staffs of the organisation a pension plan. The staffs
will also be provided insurance plans. These strategies will be taken to provide motivation to the
staffs.
Recruitment policy
The recruitment policy will follow completely external recruitment policy. External
recruitment of the organisation will start from giving advertisements on the social networking,
online and newspaper. The candidates will be asked to come for the interviews for the posts of
the managers and chefs. The delivery persons will be recruited in direct basis. The Yummy
Tummy will not entertain the discrimination policy in recruitment.
Payment policy
The new venture will provide the salary in monthly basis. The compensation of the
employees will be given to the salary account.
Other investors:
The business will start from the scratch and we are going to take the loan from the banks.
We shall be investing of our saved money in the business. From the third year onwards, we are

70BUSINESS DEVELOPMENT PROJECT BRIEF
planning to take the investment from the Angel Investors. This investment will be used to
develop the app in a better way and to increase the customers’ base by widening the delivery.
5.7 Operations plan
Business locations: The location of the business will be at Male, the capital of Maldives.
Supply chain management: The supply chain of the business will be small and the supply chain
will not be costly. The supply chain of the new venture will be using vehicles. The Yummy
Tummy management will create a direct link up with the suppliers. The suppliers will send the
materials at the warehouses. The Yummy Tummy will itself take the materials out from the
warehouse to manage the inventory. The supply chain will simple one and meat, bread,
vegetable, paper good and condiment suppliers all supply the items on time.
Operating cycle:
Figure 8: Operating cycle
CashRawmaterials,wagesandStockFinishedgoodsdelivRevenue(Sales)Debators

71BUSINESS DEVELOPMENT PROJECT BRIEF
(Source: Self-developed)
Manufacturing plan:
Manufacturing plan of The Yummy Tummy will start from the strategic business plan
and it will transform to production plan. The suppliers will supply the groceries, food materials
and spices. Then, the management will decide about the master production schedule. The food
items need to produce in daily basis. The food items preparing will be start from the morning and
it will get ready by the 11am. Then the delivery team send the lunch box according to the need of
the customers.
Facilities & equipment
We are planning to purchase the equipment of food preparation. Therefore, we have
made the lists of the food preparation equipment.
 Freezers and refrigerators
 Food preparation counters
 Slicers
 Ranges
 Ovens
 Sinks
 Mixers
 Food processors

72BUSINESS DEVELOPMENT PROJECT BRIEF
Apart from the equipment, the technology will use as internet and social networking to promote
the business. The management will set an update for the staffs to make out the numbers of
orders.
Logistics
Logistics in food delivery business is to serve up the perfect lunchbox to satisfy the needs
of the customers for quality food items in low price (Tukker and Tischner 2017). Materials from
the suppliers will be sent to the inventory department. The delivery team of the new venture will
send the lunch box at the right time and the customers will get the delivery of food items within
30 minutes. Services quality will be at best through the best logistics management. The delivery
persons will have bikes so that they can reach the place on time. Delivery speed will try to be
faster so that the customers will not have to wait for much time. The customers can track the
delivery persons on time. Volume of the lunch box will be mentioned in the app where the item
images given.
5.8 Sustainability
Critical success factors
The Yummy Tummy will be successful venture as the critical success factors lie in the
concept of the business. There is a need of the quality nutritional food in the market of Maldives.
The Maldives people need to have quality food for them and their children. The common people
do not like to take oily and greasy food for the lunch. The office employees and the students of
colleges and schools would like to have the nutritional food on time.

73BUSINESS DEVELOPMENT PROJECT BRIEF
The service level of The Yummy Tummy organisation is better than other organisations. The
food delivery will be reached within 30 minutes and the food will be hygienic.
The food delivery packets of the organisation will be disposable.
The customers can contact with the customer support executives, in case, any problems occur.
Risk Assessment
Areas Risk level Situation
Employees Medium Employees may leave the
organisations in high numbers
Financial institutions High level The financial institutions can
increase the loan interest
Suppliers Medium Suppliers can stop supplying
Natural disaster Low Maldives is not a place where
natural calamity can cause any issue
Transportation Medium Transportation problem can occur a
while as the delivery system will be
hampered
Reputational risk Low The business will be new in the
market
Commercial risk Medium Commercial risks will be medium as
the customers’ perception can
change and demand will be reduced
Technological risk High This is mobile app based system
Stakeholder risk Medium Stakeholders risks will be medium
as the opinion of the stakeholders
will not be matched

74BUSINESS DEVELOPMENT PROJECT BRIEF
Table 9: Risk assessment table
(Source: Self-developed)
Issues for future sustainability
The future sustainability of the business will not be hampered as the business is focus on
the future perspective and demand of the human kinds. Demands of the food delivery will be
increased with the time as the people will get to know about the business venture. Change of
education pattern of the customers will eventually make them more dependable on the
Smartphone and app based life. The customers buying standard can be changed with time and the
customers will depend more on technologies. The customers’ demand will go for healthy eating.
Demand will change towards healthy eating. Competition will be increased possibly as the app
based food delivery may increase in time.
Performance management
The performance appraisal of the employees will be done on monthly basis. The
customers will be given a option to rate the customer service where they can provide stars based
on the performance of the delivery and the quality of food products. Individual level appraisal
will be done after one year and the employees’ salaries will be hiked. Performance incentive of
the employees will be given in each month and it will be added to the salary.
IT requirement
It is an app-based venture and the venture will update the data base. Security systems for
the payment and the customers’ data will be secured. The customers can connect to the
organisation using CRM. The company will also use sale system.

75BUSINESS DEVELOPMENT PROJECT BRIEF
5.9 Schedule for implementation
Gantt chart
Month 1 Month 2 Month 3 Month 4 Month 5
Bank equity ✓
Recruitment ✓ ✓
Marketing ✓
Training of the
employees
✓
Starting of the
manufacturing
sector
✓
5.10 Business Controls
Financial:
Payments would be done through the cash and the management of the new business
should pay on time. The new business venture will get the loan from the banks. The banks will
provide additional capital requirement. Payments need to be done to the building rent, expenses
on resources and interests.
Cash-flow from the financial activities will be on the third year $254,472. Therefore, the net cash
increase of the period will be $355,538. On the other side, the closing balance of the organisation
will be $1,812,757. The liquidity of the business will be 100%.
Receivable time of the finance will be within 6 months of starting of the business.

76BUSINESS DEVELOPMENT PROJECT BRIEF
Non financial
The Yummy Tummy will recruit approximately 250 delivery persons who reside at male
and maximum of them will be Bangladeshi and Indian. In addition, chefs, managers and assistant
managers and staffs will also be recruited to control the business.
Quality of the food products will be the best in the market and the mobile app performance will
be decent. The customers will have nutritional food value and the customers will be given
additional discounts.
5.11 Financial projections
Assumptions
BASIC ASSUMPTIONS:
Type of Business: Partnership Company
Nature of Project: Food Delivery
Estimate Life of Project: 3 years
Capital Structure:
Equity 45%
Non-Current Debts 55%
Types of Debts:
5 yr. Bonds at Par 60%
5 years Loan from Bank 40%
Required Rate of Return on
Equity 12.50%

77BUSINESS DEVELOPMENT PROJECT BRIEF
Interest Rate on Loan:
Bonds 7.00%
Loan from Bank 9.50%
Tax Rate 30%
Inflation Rate 2.50%
Mode of Sales:
Cash 40%
Credit 60%
Cash Collection Period 30 days
Mode of Purchase:
Cash 30%
Credit 70%
Cash Payment Period 60 days
Wages & Salary Payment
7th day on the following
month
Electricity, Telephone &
Internet payment
10th day on the following
month
Other Operating Payments Last day of the month
Insurance 12 months' Advance
Dividend Payment Rate 35% of Net Profit
Dividend Payment Period 3rd Month of the Next Year
Depreciation Method:
Property, Plant & Equipment Straight Line Method

78BUSINESS DEVELOPMENT PROJECT BRIEF
Furniture & Fittings
10% - Reducing Balance
Method
Vehicle
12% - Reducing Balance
Method
Computer Equipment
20% - Reducing Balance
Method
Amortiztion Method Straight Line Method
Start up capital requirement / sources of finances
Particulars Amount Residual
Value
Non-Current Assets:
Trademark 5000 0
Patent 75000 0
Property,Plant & Equipment 15000 4500
Furniture & Fittings 10000 1500
Motor Vehicle 15000 6000
Computer Equipment 15000 0
Preliminary Expenses:
Business Registration 100000
License Fees 15000

79BUSINESS DEVELOPMENT PROJECT BRIEF
Deposit for Electricity 1000 1000
Deposit for Telephone &
Internet
50000 50000
Recruitment Cost 300
Share Issuance Cost 35000
Bond Issuance Cost 20000
Other Miscellaneous Expenses 7500
Working Capital:
Purchase of Raw Material 30000
Wages & Salaries 20000
Manufacturing Overhead 130000
Selling & Marketing Expenses 81150
General Administrative
Expenses
82650 343800
TOTAL START UP COST 707600
Working Capital requirement Statement
Capital Funding:
Equity Capital 318420
5 yrs. Bond 233508
Loan From Bank 155672

80BUSINESS DEVELOPMENT PROJECT BRIEF
TOTAL CAPITAL
EMPLOYED
707600
Break Even Analysis
Particulars Year 1 Year 2 Year 3
Selling Price per unit $3,500 $3,588 $3,677
Variable Expenses per unit:
Raw Material ($150) ($154) ($158)
Direct Labor Cost ($100) ($103) ($105)
Variable Manufacturing Overhead ($650) ($666) ($683)
Sales Commission ($18) ($18) ($18)
Travelling Expenses ($26) ($27) ($28)
Toatl Variable Costs per Unit ($944) ($967) ($992)
Contribution Margin $2,556 $2,620 $2,686
Fixed Costs:
Depreciation on Property,Plant & $2,100 $2,100 $2,100

81BUSINESS DEVELOPMENT PROJECT BRIEF
Equipment
Depreciation on Furniture & Fixtures $1,000 $900 $810
Depreciation on Computer Equipment $1,800 $1,584 $1,394
Amortization of Patent $1,000 $1,000 $1,000
Amortization of Trademark $15,000 $15,000 $15,000
Insurance $12,000 $12,300 $12,608
Rates & Taxes $6,500 $6,663 $6,829
Salary of Office Staffs $100,000 $102,500 $105,063
Cleaning Charges $5,000 $5,125 $5,253
Electricity for Office $15,000 $15,375 $15,759
Telephone & Internet $8,000 $8,200 $8,405
Interest on Bond $16,346 $16,346 $16,346
Interest on Loan From Bank $14,789 $14,789 $14,789
Depreciation on Motor Vehicle $16,346 $16,346 $16,346
Salary of Marketing Staffs $14,789 $14,789 $14,789
Total Fixed Costs $229,669 $233,015 $236,489
Break-Even in Units 90 89 88
Break-Even in Dollars $314,461 $319,043 $323,800

82BUSINESS DEVELOPMENT PROJECT BRIEF
Forecasted Income Statement
Particulars 2018 2019 2020 2021
Inflation Rate 2.50% 2.50% 2.50%
Sales Growth Rate 4% 5% 6%
Sales Volume 400 416 436.8 463
Selling Price Per Unit $3,500 $3,588 $3,677 $3,769
Total Sales Revenue $1,400,000 $1,492,400 $1,606,196 $1,745,131
Cost of Good Sold per unit:
Raw Material Consumed ($150) ($154) ($158) ($162)
Direct Labor Cost ($100) ($103) ($105) ($108)
Total Cost of Goods Sold p.u. ($250) ($256) ($263) ($269)
Total Cost of Goods Sold ($100,000) ($106,600) ($114,728) ($124,652)
GROSS PROFIT $1,300,000 $1,385,800 $1,491,467 $1,620,479

83BUSINESS DEVELOPMENT PROJECT BRIEF
Variable Manufacturing Overhead p.u ($650) ($666) ($683) ($700)
Total Variable Manufacturing
Overhead ($260,000) ($277,160) ($298,293) ($324,096)
Depreciation on Property,Plant &
Equipment ($2,100) ($2,100) ($2,100) ($2,100)
Total Manufacturing Overhead ($262,100) ($279,260) ($300,393) ($326,196)
General Administrative Expenses:
Depreciation on Furniture & Fixtures ($1,000) ($900) ($810) ($729)
Depreciation on Computer Equipment ($1,800) ($1,584) ($1,394) ($1,227)
Amortization of Patent ($1,000) ($1,000) ($1,000) ($1,000)
Amortization of Trademark ($15,000) ($15,000) ($15,000) ($15,000)
Insurance ($12,000) ($12,300) ($12,608) ($12,923)
Rates & Taxes ($6,500) ($6,663) ($6,829) ($7,000)
Salary of Office Staffs ($100,000) ($102,500) ($105,063) ($107,689)
Cleaning Charges ($5,000) ($5,125) ($5,253) ($5,384)
Electricity for Office ($15,000) ($15,375) ($15,759) ($16,153)
Telephone & Internet ($8,000) ($8,200) ($8,405) ($8,615)
Total General Administrative Expenses ($165,300) ($168,647) ($172,120) ($175,720)

84BUSINESS DEVELOPMENT PROJECT BRIEF
Selling & Marketing Expenses:
Depreciation on Motor Vehicle ($1,800) ($1,584) ($1,394) ($1,227)
Salary of Marketing Staffs ($150,000) ($153,750) ($157,594) ($161,534)
Sales Commissions @0.5% on Sales ($7,000) ($7,462) ($8,031) ($8,726)
Travelling charges @0.25% on Sales ($3,500) ($3,731) ($4,015) ($4,363)
Total Selling & Marketing Expenses ($162,300) ($166,527) ($171,034) ($175,849)
Net Operating Profit/(Loss) $710,300 $771,367 $847,919 $942,714
Interest Expenses:
Interest on Bond ($16,346) ($16,346) ($16,346) ($16,346)
Interest on Loan From Bank ($14,789) ($14,789) ($14,789) ($14,789)
Total Interest Expenses ($31,134) ($31,134) ($31,134) ($31,134)
Net Profit before Tax $679,166 $740,232 $816,785 $911,580
Income Tax Expenses ($203,750) ($222,070) ($245,035) ($273,474)
Net Profit after Tax $475,416 $518,162 $571,749 $638,106

85BUSINESS DEVELOPMENT PROJECT BRIEF
Gross Profit Margin 92.86% 92.86% 92.86% 92.86%
Net Profit Margin 33.96% 34.72% 35.60% 36.56%
Return on Equity 149.30% 162.73% 179.56% 200.40%