Project Proposal: Strategies to Increase Revenue at Al Sabah Foodstuff

This project proposal addresses the declining revenue of Al Sabah Foodstuff Fresh Vegetables and Fruits Co W.L.L, a long-standing trading company in Qatar. The proposal identifies issues through a Fishbone analysis, focusing on marketing, supply chain management, and people. It reviews theoretical backgrounds including budgeted vs actual revenue statements and analyzes the reasons for the revenue drop, considering factors like supply, demand, economy, and workforce. The literature review covers sales and marketing management, supply chain optimization, the impact of declining market share, and strategies to positively impact sales. The project suggests improvements in sales and marketing, developing a clear vision and mission, and implementing proper policies and procedures, aiming to enhance the company's market value and efficiency. Desklib offers more solved assignments and past papers for students.

Project Proposal

Increase Revenue at Al Sabah
Foodstuff Fresh Vegetables And
Fruits Co W. L.L
• Al Sahba for Foodstuff & Fresh Vegetables & Fruits Co
W.L.L is one of the oldest trading companies in State of
Qatar.
• The company was initially established as Al Sabah Foodstuff
Trading Est. back in late 80s. In May 2000 the company was
registered as a limited liability company under the Ministry
of Business and Trade in the State of Qatar and operates
registration # 22663.Initially the company’s primary business
activity was wholesale of fresh fruits and vegetables.

Current Situation of Al Sabah
Foodstuff
• Currently the company operates with 6 managerial staffs and 21 clerical staffs. The business is 100%
managed by the expatriate partner, Mr. Asmal Fatha. After a deep discission with General manager/
managing partner, it was understood that the company does not have any standard process and
procedures in any of the main functions of the business.
• Thought Al Sabah having considerable share in the market, but its market share constantly declines
due to its strong competitors who operates in the same industry and supply wide range of fresh and
frozen products in the market.
• Decline in market share negatively impact on company Revenue and it is a worrying situation for the
company management. After the pandemic various studies and reports point out that demand for
frozen food increase in the Qatar market and this raise the opportunity of increase the Revenue of
companies.

Significance
• Organization continuously facing lots of issues that impact on company operational activities and
this leads to decline in sales and business profit.
• Apart from internal issues, number of factors impact from external environment and this leads to
reduce the company annual sales and revenues. In this context, organizational management keenly
interested to focus on improving the annual Revenue and for these various strategies adopt and
revamped to run the business operation effectively.
Thus, this project is keenly focused on investigating the issues and solutions to improve the
company annual Revenue, so it exerts a significant impact on overall business operational activities.

Problem Analysis
To investigate the apropos issues a Fish Bone analysis applied to
achieve the desired aims and objective of the project. Fishbone
diagrams, also known as Ishikawa diagrams, are visual strategies
examined by the primary driver, arranging contextual and logical
outcomes concatenated into classes. These were advocated in the
1960s and used by Kaoru Ishikawa of the University of Tokyo as
an important tool for value control.
• Marketing
• Supply Chain Management
• People

Theoretical Background
• Budgeted and Actual Revenue Statements
Profit and Loss Statement Al Sabah for Six Month Period: -
Month April May June July August September
Particular Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual
Total Sales: 5,500 4,400 6,050 4,840 6,655 4,356 7,321 3,920 8,053 3,528 8,858 3,176
Vegetables 2,000 1,600 2,200 1,760 2,420 1,936 2,662 2,130 2,928 2,343 3,221 2,577
Fruits 3,500 2,800 3,850 3,080 4,235 3,388 4,659 3,727 5,124 4,099 5,637 4,509
Less Discount 550 440 605 484 666 436 732 392 805 353 886 318
Total Net Income 4,950 3,960 5,445 4,356 5,990 3,920 6,588 3,528 7,247 3,176 7,972 2,858
Less COGS 1,980 1,584 2,178 1,742 2,396 1,568 2,635 1,411 2,899 1,270 3,189 1,143
Gross Profit 2,970 2,376 3,267 2,614 3,594 2,352 3,953 2,117 4,348 1,905 4,783 1,715
Expenses
Administrative 250 275 275 303 303 333 333 366 366 403 403 443
Marketing 216 238 238 261 261 287 287 316 316 348 348 383
Operating Exp 219 241 241 265 265 291 291 321 321 353 353 388
Transport Exp 350 385 385 424 424 466 466 512 512 564 564 620
Website Exp 485 534 534 587 587 646 646 710 710 781 781 859
Employment Exp 451 496 496 546 546 600 600 660 660 726 726 799
Occupancy Costs 245 270 270 296 296 326 326 359 359 395 395 434
Other Exp 125 138 138 151 151 166 166 183 183 201 201 221
Total Expenses 2,341 2,575 2,575 2,833 2,833 3,116 3,116 3,427 3,427 3,770 3,770 4,147
Net Profit 629 -199 692 -219 761 -764 837 -1,310 921 -1,865 1,013 -2,432

Reasons for Revenue Drop of the Al Sahba
Revenues decrease for any number of reasons. Manufacturing or delivery problems result in reduced
product availability. Consumer tastes change and demand for your goods declines. Economic
conditions force consumers to spend less on discretionary purchases. Staff changes adversely affect
your ability to sell as much of the product. All of these factors can play a role in revenue slippage
which are being explained below: -
• Supply
• Demand
• Economy
• Workforce

Main Issue
In the context of above analysis following issues highlight for this project that aiming to increase the
company Revenue. But company facing declining ratio of Revenue that negatively impact on company
performance and future growth. As the company also have strong competition in the market that also
influence its business operations.
This study keenly focused on the
• Identifying the reason of declining ratio of Al Sabah LLC Revenue.
• Decline in market share negatively impact on the company Revenue
• To investigate the change that positively impact on company sales and leads to increase the company
revenue.

Literature Review
• Sales and Marketing management: According to Prajaktha Gurung, (2022); Lead conversions and
time spent on invalid leads can impact an organization's general deal cycle. Most potential
customers need a lot of support before they choose to buy an item or manage it. It is estimated that
almost 96% of customers come to sites that are not eligible for purchase. The customer experience
has also fundamentally changed and is more challenging than at any time in recent memory.
Ad Mechanization supports leadership departments and helps configure customized ways to handle
sustaining them. Day-to-day accessibility and the mechanization of email groupings (dribble
crusades) help keep prospects attractive, accelerating the pace of transformation

Continue…
• Supply Chain Management: Organizations that run reliable and effective inventory affixes
generally generate more revenue and higher yields. To increase executive earnings through a
production network, you can look at a few different regions, including:
Inventory management - such as tracking overstock/understock harmony
Provisioning and payment arrangements - such as robotic processes such as requesting locations, etc.
Control work costs - e.g. prevent false requests, shipping errors, etc.
Installment settlement - such as processing late installments, invoicing missing installments, etc.

Continue…
• Identifying the reasons of declining ratio of Al Sabah LLC Revenue:
According to Staff Writer (May 2022), Sales play a pivotal position in any organization that is
frequently what they name measurable success. Another essential position of income is connecting
the patron’s ought to the goods and offerings that an enterprise offers. Sluggish income increase can
place an organization in predicament, with the worst-case situation being bankruptcy. Yet a few
enterprise proprietors aren’t aware of why their business enterprise is failing. That's why it's miles
essential to understand every piece of the income process. Sales overall performance outcomes from
different factors in the enterprise, similar to the advertising and marketing strategy, the products or
provider itself, the management, patron provider, or the market.

Continue…
• Decline in market share negatively impact the revenue in company:
From the point of view of Katrina Munichielo (April 2021), Gains or losses in marketplace
proportion may have sizeable influences on an employer's inventory overall performance, relying on
enterprise conditions. Market proportion is basically the proportion of an enterprise's general income
that the employer earns. Changes in marketplace proportion have a bigger effect at the overall
performance of entities in cyclical industries wherein there may be low increase. In contrast,
modifications in marketplace proportion have much less effect on agencies in increase industries. In
those industries, the whole pie is developing, so agencies can nonetheless be developing income
although they're dropping marketplace proportion. For agencies on this situation, the inventory
overall performance is greater laid low with income increase and margins than different elements.