Business Plan Summary of the X&Y Company - Paper Example

The X & Y Company is a private enterprise that will supply food products in Saudi Arabia. The company will import wheat and maize flour to supply to various consumers in Riyadh and Buraidah in the offices of the company. Saudi Arabia is not an agricultural land, and thus food is the major import in Saudi Arabia. X & Y Company is set to supply the food to the people in all quantities. Saudi Arabia has a good business environment hence is suitable for investment for X & Y company. Our customer will range from household, institutions and big restaurants in major town in Saudi Arabia. We plan to work closely with insurance to protect the company from financial loss. We plan to employ workers with relevant educational skills to serve in various offices of X & Y Company. The population of Saudi Arabia is increasing each year hence we target the market opportunity that results from the increasing population. In 2015, the population of Saudi Arabia was 1.54% higher than the population of the country in 2014. The population growth rate in Saudi Arabia is an indication of the future market for the food products. The expectation of X & Y Company is to attain the profitability level during the first year of operation. We plan to competitive by delivering quality products at a relatively lower price. The feedbacks from our customers are important and because they will help in improving the quality of our products. We hope to collaborate with suppliers of the products to standardize the quality of our products to remain competitive in the market. We plan to seek for substantial capital to import a significant amount of goods to increase the profit margin.

The Business

Business name: The proposed name of the business is X and Y limited

Business structure: Partnership

Business location: [Main business location]

Date established 2/10/2016

Business owner(s):

X

y

Mr. X is a nutritionist and has ten years experience in food processing industries in the United Kingdom. X has experience purchase and supplies having served in the same position in different companies before the start of X and Y Company. Y is a commerce graduate in marketing and has five years experience in marketing Egypt and Riyadh. Ideally, X and Y Company is founded by individuals with relevant knowledge in food supply and management. It will be easier for X and Y company to expand and open stores in different parts of Saudi Arabia because of the marketing skills. Ideally, the X and Y company is the first company for the two partners X and Y.

Products/service: The X and Y Company Limited import and manufacture fast food. Ideally, with the increase in the population in Saudi Arabia, it is anticipated that the demand for food will increase further in Saudi

The market

Target market: The target market for the company products is the local population and the international market as the company increases its capital and becomes popular. There will be a need to assess the nature of food products that the consumers buy in Saudi Arabia. Before the start of the business, there will be a need to carry out and interview to categories the customers on the nature of the food they need. The marketing mixes suitable for X and Y Company is 4 Ps. The marketing mix will help in getting market feedback from both the potential and the existing consumers. It will be important to know the food eating habits of the customers to estimate the profit margins of the partnership.

Marketing strategy: The market entry strategy for the X and involves, obtaining a license to allow the start of the business operation, identifying customers for the products from X and Y company. The market entry strategy will work because obtaining the licenses prevents the business from conflicting from the law of the land. Additionally, there is a need to identify target customers for the companys products. Ideally, since the company is new, a consideration to form a merger with the existing companies will reduce the ordinary barriers to entering the market. The market entry strategies will work because they focus on the actual market of the products and avoid conflicting with the law because of license and certificate of operation. In the process of market identifications, there will be a need to popularize the new brands of food products in the local market to attract customers.

The Future

Vision Statement: To become the most reliable food retailer in Saudi Arabia and join the list of the top food packaging and supply companies in Saudi Arabia and its neighbourhood.

Goals/objectives: 1.The general goal for X and Y company is to be a reliable food supplier to retailers in different parts of Saudi Arabia.

2. It is one of the companys objectives to supply safe, affordable and quality food to dry areas and major towns in Saudi Arabia.

3. X and Y company has plans to bring to achieve most of its goals in the first four years of operation.

4. The company is set to increase the number of customers by 30% each year by improving the quality of food, fixing friendly prices, and supplying the products near to the customers

The Finances

The Company was formed to import and to supply food products to different parts of Saudi Arabia (Maize and wheat). X & Y Company has a capital of $100,000 million and has a target getting a profit of $300,000 million at the end of 2017. Considering the plans and the market research, there are high chances that the company will be profitable. For this reason, the company will increase the number of food variety supplying to the consumers to increase the likelihood of profit. Notably, the research market research shows the potential market for meat and milk products in Saudi Arabia.

Assumption

Ideally, the starting capital of 10 million is not enough for the company to make a significant amount of profits. For a reason, the company has to look for and an external source of capital. Plans are underway to borrow a bank loan of 5 million to make 15 million. The X and Y company proceed with the assumptions that the 5milion bank loan will be repayable after ten years with a friendly interest rate of 8%. The additional five million will help in leasing offices, building stores finance the operations of the company before it makes profits, and to use in the acquisition of the right to distribute the food materials to the consumers in various parts of Saudi Arabia. The Business

Business Details

Products/services: X and Y company will sell maize and wheat products. The company will distribute both wheat and maize flour in various parts of Saudi Arabia. Additionally, it will supply ready food products such as fast foods in large scale to restaurants and homes. The fast foods have high demand in Riyadh because most people are in businesses in towns. In the rural areas and residential estates in Riyadh, the demand for maize flour is high. The company will use different sales agents to supply the products to the different homes. The company will work with restaurants to supply them with these products in large scale and at relatively lower prices. Households will enjoy affordable prices for products during the first year of the operation of the company.

Registrations detail

Business name: X & Y Company

Trading name(s): X and Y Company

Date registered 2/10/2016

Location(s) registered:[State(s) you are registered in. KSA- Riyadh

Business structure: partnership

ABN:NO

ACN: NO

GST: NO

Domain names: NO

Licences & permits: In process

Business premise

The X and Y Company will be established in two locations that is Buraidah and Riyadh. The company will lease some buildings in Riyadh and build stores in Buraidah.

Buy/Lease: The Company will operate by collaborating with sales agents in different parts of Riyadh and Buraidah. All the agents to the company will get licence through X and Y Company to run the business. The company will not be responsible in looking for business premises on-behalf of the agents. The company will regulate the prices food materials in the different stores to retain the market.

206271516244X General

Manage

00X General

Manage

Organisation char. Figure 1.

380619096520T area manager

Buraidah

00T area manager

Buraidah

3147237391040012331703873500318135107315Y area manager

Riyadh

Y area manager

Riyadh

402971013462000818515209550004550410920750048831520891500

5707926141324Mrs B

Sales

Person

Mrs B

Sales

Person

-117475195580Mr N

Accountant

00Mr N

Accountant

334708557785Mrs L

Marketer

Mrs L

Marketer

158369047625Mr K

Operation manager

00Mr K

Operation manager

Management & ownership

Names of owners: X $ Y

Details of management & ownership: The X and Y company as a partnership, X will contribute 50% of the capital and Y will contribute 50% of the capital as well. X is the general manager of the company while Y will be the area manager of the Riyadh. The partnership will operate under the rules and regulations as per the agreement before the formations of the partnership. X will be responsible hiring employees in Riyadh because he has a better understanding of the region. Mr. Y has marketing experience, and thus he will collaborate with local agents to market the companys products in Riyadh and Buraidah. Mr. T will work with the general manager to regulate the operations of the business in Buraidah. Mr, N will keep the daily records of the sales in different regions. On the other hand, Mr. K is responsible for personal relations and the operations of different branches of the company. Mrs. L will collaborate with Mr. Y in the marketing of the food products in various parts of Riyadh and Buraidah. Mrs. B will control the sales of the food products. She will be responsible for collecting the data regarding the daily sales and submitting the data to the general accountant.

Experience: X is a nutritionist and has ten years experience in food processing industries in the United Kingdom and Riyadh. X has experience purchase and supplies having served in the same position in different companies before the start of X and Y Company last. Y is a commerce graduate in marketing and has five years experience in marketing Egypt and Riyadh. Ideally, X and Y have relevant knowledge in food and supply management. It will be easier for X and Y company to expand and open stores in different parts of Saudi Arabia because of the marketing skills. Ideally, the X and Y own the company for the first time.

Key personnel

Current staff: [List your current staff in the table below.]

Job Title Name Expected staff turnover Skills or strengths

General manager

Mr X 10-20 months Has relevant qualifications in Marketing and management in the industry. Has 4 years experience in the industry and has an ward in the management excellence.

Area manager Riyadh Mr y 10-120 months The individual is a professional in food and nutrition. Has a 5 work experience in the industry with s good number of award of excellence in the field

Area manager

Buraidah Mr T 10-20 months The personnel must have relevant skills in management and has worked as a manager in the industry for 4 years. The personnel awards of excellence in the managerial position.

Accountant

Mr N 10-20 months The individual must have at least a diploma in accounting and other relevant courses. The individual must have worked in the industry and has at least work experience of 5 years. An award of excellence in accounting is an added advantage.

Required staff

Job Title Quantity Expected staff turnover Skills necessary Date required

Supplies and distributions manager 1 1-2 years Relevant qualifications in suppliers and at least 1 year experience as a supplies manager

10/2/2017

Sales manager 1 1-3 years] The candidate should have relevant qualifications as sale...