Small Business and Entrepreneurship

Business Plan Structure

Table of Contents
1. Business Name & address..................................................................................... 2. Proprietors Name & Address............................................................................. 3. Business Type ................................................................................. 4. Business Activity............................................................................... 5. Business Vision and Mission............................................................................................. 6. PEST Analysis................................................................ 7. Government rules and regulations............................................................... 8. Rationale for business launch................................................ 9. Market Size and growth................................................................. 10. Why Delhi has been selected for Business Launch........................................................... 11. Target Audience.................................................................. 12. Competitors Analysis........................................................... 13. Self Analysis.......................................................... 14. Competitive Advantages.......................................................... 15. Advertising & Promotion Strategies .......................................................... 16. Pricing Strategy......................................................... 17. Source of Finance Available......................................... 18. Key People and Job Roles........................................... 19. Financial plan....................................................................... 20. Sensitivity Analysis............................................................................................................. 21. Long Term Strategy.................................................................. 22. References...............................................................................................................
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BUSINESS PLAN STRUCTURE

Business Name Address : Snackerz : Block C, Okhla Industrial area Phase II, New Delhi, India, 110020.

Proprietors Name Address

: Mr Mateen Ahamed Pasha : N3, N Block, Greater Noida Secotor 18, Noida, UP, India, 201301.

Business Form

: Fast Moving Consumer Goods (Food Sector).

Business Activity
Snackerz is an Indian based food industry manufacturing snack foods and is located in the Okhla Industrial Area of New Delhi. The company is owned by Mr Mateen Ahamed Pasha and was initiated in 2012. The company Snackerz desires to be amongst the top snack food manufacturing companies. The company is also making its best possible effort in improving the quality of the snacks that it produces to increase the market share of the product and building the decent image of the brand in the Indian market. Consequently the quality of the products that the company manufactures has been used to highlight the brand image of the company in marketing and future business strategies. The company uses the cutting edge technology machines foot the manufacturing of the food products in the industry as to reach the high quality standards and long lasting freshness in the products. The availability of the product of Snackerz is aimed to be in all leading retail outlets and supermarkets across India. Snackerz has planned to expand its business in whole of the Indian region but initially it focus to build a strong brand image in the local Delhi and the neighbouring regions to set up its market and get the hold of target audience. In the preliminary stage the marketing of the products would be through the leading supermarkets and big retail outlets in the region and then steadily increase the stock availability in the local retail outlets of the city. The range of the products in the company comprises of initiating with the salted and flavoured potato crisps blended in the Indian spices as the people of India like the hot seasonings in taste. Along with the potato crisps as its primary food item the company also produces Indian snacks such as Baltic mixtures made up of gram flour, regional snacks of the Indian territories as such in all there is a range of 16 different food items in the product range of the company. The company at this stage plans to set up its business in the Delhi and NCR around state but it in the future it desires to get the hold of complete Indian market, the availability of its product in every state of the country Page | 3

and then successively export the products to foreign countries where there is a habitat of the Indians in the world as they would be more successful over there.

Business Vision and Mission

Vision As the company is most focused on the quality of its products, thereafter the motto of the company could not be irrelevant to quality as it says, International quality with Indian Taste. The company desires to provide its customers with best of the quality and health from its products. The company uses the cutting edge technologies and manufacturing machinery for the best production of food items. The company also focus of the buying behaviour of the people as thus follows the stint of the traditional taste in all of its products.

Mission The mission of the company is to provide healthy and past time food in the form of tea time snacks to the people. The mission of the company is spread its products globally and set as an icon in the name of Indian snack foods. The company also desires to expand its operations in within most of the parts of India within the next two years. The company aims to build Snackerz as the leading brand name and the peoples choice in the field of tea time snacks.

PEST Analysis
Political: Delhi is the capital of India, and is amongst the top standardized territories of Indian region, and the government in the Delhi comprises of the Central which the UPAs government party named Indian National Congress, with the major political people including the members of parliament living in Delhi, it is most important to focus on the standards of any manufacturing products as it is the question of standard of the country showcased from the capital. Economical: Delhi is economically well equipped being the capital of the country, as the most of the higher class and business class families living in this place the standard of living of people is much higher than the other regions of India and also from other some parts of the world.

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Social: Delhi is the Second most populated city in India, as according to the world bank report conducted in 2011 census and thus the number of target audience would also be more as compared to any other city therefore increasing the sales of the product which could instead be launched in any other industrial region of the country and remaining limited to the surroundings of the product manufactory. Technological: The capital of the country has many industrial areas surrounding the region as the gorgon industrial area, Okhla industrial area, and other surrounding areas therefore the area is well equipped with the latest technologies and industrial tools used in todays era either for industrialization or for corporate.

Government Rules and Regulations

As per the new rules in the Delhi State Industrial and infrastructure development corporation (DSIIDC) there has been some policies implemented for the industrial sectors and manufacturing companies amongst which some are as follows: Mr Cretan Singh, the lead of the Bureau of Energy focus on the all round energy savings in the industrial sectors in Delhi. The foreign direct investment is permitted up to 100% in the Delhi and NCR regions. The policy for the distillation of alcohol has also been announced recently and the FDI of 100% is permitted under direct route by the licensing authority. No particular license is further required by most of the food companies other than some exceptions in the liquor and heavy and bulk food processing companies. Also the custom duty rates have also been reduced by the government on food processing units, intermediates and the products to be exported.

Rationale for Business Launch

The owner of the company Mr Mateen Ahamed Pasha has been a successful entrepreneur in setting up some other forms of business as well which are running at a great pace today, similarly as some of the factors which inspired him to launch the business are as the lack of the single operational brands to have a large product range in Tasty and traditional snacks. Also there are very less number of know brands in the India which are common in the different states as we move from the north to south the taste and choice of the people changes accordingly, Mr Pasha saw the requirement of a brand which could satisfy all the needs of the people loin g in a snack which is at the same time healthier, fresh, tasty and traditional.

Market size and Growth

The size of the market for the company is very huge as Delhi is one of the most populated cities in the world which being the capital of the country is considered as a state. Furthermore it is the second most populated place in the country, with the massive number of people belonging to the surrounding areas and the national capital region. There are millions of local workers or immigrants visiting Delhi everyday Page | 5

for different purposes like business, work, education and tourism. As far the industries and business models are concerned these are increasing everyday in the Delhi region and so the competition between the different companies per day. More and more companies are coming into operations each day and the existing companies are changing their marketing strategies to get the best possible output from them and generate heavy revenues overtaking the market share and to improve their brand image. The size of the market in Delhi could be estimated through the fact of the continuous rivalries between the same business model owners implementing new market strategies and approaches to get the better output and sales of their products. Also there has been a tremendous growth in the food and retail market of the country and that as well in Delhi is massive being the capital of the country attracts lots of opportunities and scope to the business investors from the different parts of the country and thus increasing the ratio of the industries and food processing companies in the same business model.

Why Delhi has been selected for initiating the company

There have been several reasons for the selection of Delhi in setting up of the industry such as being the capital of the country it is the hope of opportunities and also the scope of the company is huge as after building a good brand image in this region means the through acceptance of the company as a reputed and peoples choice brand in snacks. Also the industrial market of Delhi are very good for settling up of an industry also being a national capital it does not rely on the limited supply of electricity, water and other resources required. Also Delhi is globally well connected to other countries therefore the import and export of the goods is easier and the custom and duty tax are less if compared to the other parts the country the reason being this being the rule of the central government and the habitat of the most of the members of parliament of the nation.

Target Audience
The prospective customers of the company would be initially the local residents of Delhi, and once successful the company will focus on national expansion and global expansion respectively. Therefore the local residents of Delhi are used to see many of the companies launching one day and closing some days after. Therefore there would be certain rules and policies applied by the Snackerz to prevent the image of the company to be outlawed from the market and overshadowed by any other powerful and economically well sufficient company to take over our companys strategy and ride in the market with ease. Initially the target audience is the local Delhi people but in future as the company expands its operations the customers identity would be changing as the company move from the north region of India to the southern region. Beyond this domestic expansion when the company plans to make a international debut it would be initiating its first steps in the gulf countries as the people of these regions like to have Page | 6

the same type taste as Indians and other south east Asian countries like. Therefore the company should focus on the traditional taste of the Indian snacks and seasonings according to different regions in the country.

Competitors Analysis
There are a huge number of competitors which are available in the market and they could be classified on the basis of different criterion such as their brand image, stability in the country since a long time, pricing strategies, marketing campaigns, etc. Some of the most famous brands which are the biggest competitors to the company are as follows:

Name

Strengths

Weaknesses

Haldirams

Strong hold in the national and international market, only company to be popular in the world and is known widely for its Indian traditional snacks.

Has taken up a long time serving people with the same taste and the people now are demanding for the new taste in the same items and needs to be more spicy and traditional rather and standardized.

Bikaner

Second most popular snack brand in India after haldirams and had been existing since more than a century yet.

Gives the taste of the Gujarat region, whose people prefer sweetness in the snacks inspire of being salty and spicy.

Unites foods Put Ltd

The company produces handmade snacks which consists even of dairy products therefore they could be over a longer duration and needs to be consumed within two three days of manufacturing or would be damaged.

The time limited lasting of the products is the main concern of the products as they cannot be exported to surrounding areas, rather they could only be supplied to limited distributors in the surrounding.

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Crusty International

The company was established in the year 1995 and has been practicing the production from ayurvedic products so as to attract people in the verse of health and quality. Crusty international also produces health drinks and other food additives and edibles rather than just the snacks and has its operations overseas as in Canada.

The company has a vast product line up which makes it a jack of all but it has failed to make a commandment in any particular product known by its brand name or is most popular than the other company products.

Evergreen Carbohydrates Put Ltd

The company is known for its selling of the ready to eat snacks in loose format to be used by any other company with its brand name as in wholesale. The company also exports a large quantity of its production to overseas.

The production that the company does of the food products is utilized by other successful business models and they sell the products for less enjoying a good profit, instead if the company uses its own manufactures in its own name, than it could be better for the company to build better brand image.

Self Analysis
Strengths Weaknesses

The main strength of the company is the quality empowerment and its mission to provide its customers with the best product available in the market

Providing the better quality product requires the involvement of new technologies and tools for fast and speedy production rate along with the quality product thus obtained.

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The company carries forward the concept of the traditional taste of the Indian sub regions and its values in the snacks naming it after the name of the region such as Punjabi Mix, Guajarati Mix, etc.

The regional or the local brands of the particular state has its own favourites which is difficult to compete with because the people always prefer the locals rather than the one produced at other placed and stored for a longer duration instead of the freshly produced.

Snackerz uses the latest and cutting edge technology in respect of providing propel with the best of the quality and freshness regarding the state of the product.

Being located at the industrial area of National capital region the cost of production of the products increases automatically as being located in the prime location of Delhi

Competitive Advantages
The advantages to the company is that being a Delhi based company and amongst the very few of other companies other the big brand names like Haldirams and Bikaner which do have the high price ranges even Snackerz will provide its customers with the same product in the less price. There are also the technological advantages to the company such as follows: As the company uses the latest tools and manufacturing machineries in the production of the snacks it gives a specific standard to the different products of the company as far as the shape and size is concerned. Using of the latest technology tools can also provide the company to reduce the emissions of toxic gases in the atmosphere and reducing the wastes causing degradation, therefore more supportive from the government. More quantity can be produced per minute and less human capital is required to maintain the production thus reducing labour costs. Following of national and international standards and health and safety as conveyed by world health organisation. The freshness and the lasting of the product could be increased as there are most of the work done by the machines and no physical contact of the labours on the food directly.

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Advertising and Promotion Strategy

Advertising Strategies
The advertising strategies of Snackerz is not based on any television or any sort of advertisement in the print media rather it focuses on advertising the product in the retail markets and supermarkets. The company has planned to promote the product through in house promotions and other similar offers to the customers also the company has planned to promote the product on the cashing point and the entrance of the super markets so as to increase the visibility of the company in the first sight of the customers letting them to try out the product. Furthermore there have been some strategies that the company has planned to follow to promote the products which includes follows: The advertisements of the new company launched and the concerned product in the entrances and the bill points of the supermarkets which the first and last contact of vision of the customers and are considered to be the most strong points of sales. The advertisements could be made on the carry bags and the trellis used by the customers. Focussing on the health and nutrition factors of the product as customers are most concerned about these factors nowadays. The carry vans or the vehicles used by the supermarkets for delivery could show the advertisement of the Snackerz. Introducing the prize money offers such as on purchasing the product and sending a text message of the code found inside the wrapper of the snack. Leaflets to be made available to the customers outside big retail stores displaying the latest offers.

Promotional Strategy
For making a respective place and holding a share in the market in the relevant business model it is necessary for the company to introduce promotional offers for the customers to increase the sales and make the people aware about the product. Some of the offers which could be used for the promotion of the company as well as the product may be following: Snackerz combo: Such an offer may available to the customer allowing him to either choose the any of the two different or same snack at the discounted price attracting customers to buy two packs at a time such as if a pack of snack cost Rs 15 each then the combo pack is available at Rs 25 for two of any of the customers choice, therefore a saving of Rs 5. Snackerz multi pack: Similarly the customers who show loyalty towards the brand should be awarded as by giving a free pack of snacks. Such as if a customer buys 5 packs of snacks at a time then he could be given one pack for free. Snackerz weekly draw: There should also be a prize scheme runner by the company which attracts the customers to buy the snacks such as it could be a weekly or a monthly draw for the customers with which they can get prizes by sending the codes inside the wrapper of the snacks through text and if selected randomly by the computer should be given prizes. Page | 10

Pricing Strategy
Snackerz is marketed with the tagline of International quality with Indian taste which describes as it is providing superior quality. Certain factors such the base of the company in Delhi industrial area and the use of the latest food manufacturing tools and machineries in the production of the snacks which also produces the very good quality snacks which are speedier in production and long lasting fresh and consists the taste of Indian blend. Therefore the prices of the Snackerz products is liable to be competitive with the other major competitors such as Haldirams and Bikaner but not more than them, furthermore at the initial stage the company should provide promotions to the retail stores and give offers to the customers to increase the sales of the product and let it be popularize amongst the local residents of Delhi. Some of the strategies which could help the decision makers of the company to decide the pricing of the products are as follows: The cost of the certain product would be depending on the price of the raw material used, cost of transportation, the cost of labour, advertising and other expenses. In the initial stages it would be difficult for the company to meet the budget guidelines of the business plan because there would be a lot of expenditure on advertising and above that the company also needs to run the promotions for the customers and as the company has decided that it would not undergo any media advertising in the initial stages and focus more on the in house or in store advertisement. The price range of the products will also vary such as the smallest packet of snacks that the company will do would be of 100 grams which will cost Rs 15 for most of the items in this category but it may vary as per item to item. Revenue generation would be difficult for the company in the initial stages as there would be a lot of focus on the advertising and promotions of the products, also the offers availed on the products would bring loss to the company. The store will demand more money from the company as it being new and making a debut its prices would be extremely high, but as the business progresses and makes profit it would automatically come down.

Sources of Finance Available

A major part of the source of finance for the company will come from the loan from the bank as the owner has other business as well, therefore on security of them the national banks could provide about 60% of the load of total budget of the business plan and rest of the finance would be coming from the own funds of the company and releasing the market shares.

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Key People and Job Functions

1. Founder/ Owner: Mr Mateen Ahamed Pasha is the owner and founder of the company so thus he is also the chairperson of the company who takes the most important decisions and sign the agreements to the major proposals. Name Qualification Experience Roles : Mr Mateen Ahamed Pasha : MBA, LLM, And Entrepreneur, India. : 5+ years experience in business management, owner of other business models. : Chairperson of the company.

2. Business Manager Name Qualification Experience Roles : Mr Robert Vardar : MBA, IBM, India : 10+ years experience in Business management and empowerment. : Responsible for implementing action plans, new strategies and other decisions.

3. Marketing Manager Name Qualification Experience Roles : Mr Ravishankar Ayer : PGDM, LLM, Entrepreneur, And HRM India. : 12+ years experience in marketing strategies in improving the brand image. : Responsible for marketing and advertisement of products to increase sales.

4. Accounts Office Head Name Qualification Experience Roles : Ms Neha Sharma : MBA finance, Accounts : 6+ Years experience in leading accounts department. : Responsible for managing the team of finance and accounts department.

5. Administration Office Head Name Qualification Experience Roles : Mr P. R Singh : PGDM, MBA (HRM), Business Intelligence (SAP). : 5+ Years experience in the administration management department. : Responsible for leading the working team, risk management and development.

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FINANCIAL PLAN
1. Source of Funds Loan : Self : Assets : 20,000,000 10,000,000 5,000,000

2. Funding Requirements/ Applications Fixed Assets Formation Expenses Working Capital Stock 3. Fixed Assets A. Machinery and Equipments Machinery/Equipment No. : : : : 8,000,000 5,000,000 3,000,000 2,000,000

Price + Taxes

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Pastry Mixing System High Speed Slicer Line Weigh, fill, seal pots Dicer Cutter Shredder Granulator Conveyors Fort lift trucks Sealing and Packing machines

25,00,000 3,00,000 12,00,000 4,00,000 3,00,000 6,00,000

Qty. Require d 1 3 1 2 3 3

Total Value

25,00,000 9,00,000 12,00,000 8,00,000 9,00,000 18,00,000

14,00,000 15,00,000 30,00,000 32,00,000

7,00,000 15,00,000 6,00,000

2 1 5 2

16,00,000

Total

1,72,00,000

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B. Premises: the premises of the industrial sector would be the most expensive investment in this business, as to set up a industry in Okla. Industrial area which is the home to many multinational companies and is located at a very prime location The premises will cost about 18,000,000 for the infrastructural development and the rest of the would be invested in the machinery and fixed assets and movable assets. Furthermore, the company will also needs to spend huge sum of money in building the premises because its first headquarter will also reflect its brand image. Therefore from whole of the business project the major percentage would be covered in building the industrial premises.

C. Raw Material: The raw material that would be used in the manufacturing of the snacks would mostly from the wheat and rice flour along with the milk and artificial products. Also the seasonings that would be used to give the Indian blend would be used in as the raw materials. The cost of purchase of raw material wood be dependent on the stock availability and would be ordered in regular intervals such as in weeks or in months. The cost of the raw materials could also not be fixed as there are regular changes in the due to the change in the government policies and regulations, due to which the industrial sector and thus the common man has to suffer.

D. Formation Expenses: The expenses on the formation and production stage would be less as compared to other stages of the production or selling such as the setting up of the industry, the money spent in purchasing the machineries and after the production the money to be invested in advertisement and promotion of the new product or the company. Therefore the formation process only involve the cost of the raw materials used, the resources used such as water and electricity and the cost of the labour, which is still comparatively less than the other stages as explained earlier. Therefore roughly estimating the initial formation costs would be around 5,000,000, in which the cost of the raw materials is not included because the raw stock is ordered in the regular interval and also would be very less as compared to the other expenses. The formation cost shown above would be valid for the one consecutive session. E. Working capital for expenses: The expenses that would be taking place during the initial stages would be from the own cash assets and the money landed from the Bank as a form of a loan would be used in building the infrastructure and industry. The working capital as stated before should be around 3,000,000 in the initial stages as there would be the cost of raw materials, loss management, electricity and the labour would be included in this working capital, other than this everything else has been already deployed or have been used in other stage or process. Therefore the budget for the working process should be around as stated.

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4. Key people, Job Functions and Salary: The main people of the company who are responsible for making most of the decisions and are the head of the departments and the office workers salary statics have been stated as follows: 4.1. Business manager: The business manager is the chief head of the company after the owner and takes all the major decisions in favour of the company to take it to the new heights. The salary range of the business manager is about 20,00,000 per annum. 4.2. Marketing Manager: the marketing manager is the person who is responsible for building companys brand name and image through applying new marketing strategies to improve the state of the business. The salary package of the marketing manager is about 15,00,000 or more depending on the company and seniority. 4.3. Accounts Head: The accounts head is the one responsible for managing all the transactions based on money and finances from the companies. This is the head of the department whos keeps on checking that how much is the current assets and liabilities of the company is this department. The salary package of the finance manager is around 10,00,000. 4.4. Finance Head: the Finance head is the one responsible for the company asset declaration to be free or under any hold of a liability and gets the strategies to increase sales and production. The salary package of a finance head is similar to the accounts heaps as 10,00,000. 4.5. Administration Head: This is the person who is responsible for doing and maintaining all the things in order in the company and loads the task of administrating the works in the company. The salary package of these people are around 8,00,000. 4.6. Production In charge: This person is the lead for the manufacturing unit and verifies whether the work is going properly or not, such as for the labours and cross checking the work after it has been done. 5. Key Financial Assumptions: The company will face certain financial issues regarding the budget because of less margin money available to it instead. There would also be survey conducted in future by the company and the annual turnover would be decided by taking this in the consideration. The policies of the government has also been same in the consecutive next yard which is a breath of relief to the country otherwise the recommendations of the people in blocking the company to be endowed under the tax laws and implications of the government. The economy of the company will start to increase once it has got a decent market hold and a respectable share in the market.

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Financial

Highlights

(for the first two years) Year 1

Turnover profit break over GP% NP% ROE% ROCE% Project Growth of Turn over Project growth of NP Gearing Interest coverage 60,000,000 10,000,000 50,000,000 20% 10%

Year 2
80,000,000 30,000,000 50,000,000 35% 10%

Growth of 10,000,000

Growth of 30,000,000

Forecast Income Statement (Business: Fast moving consumer Goods, Period: Five Years) Year 1
Sales: 60,000,000 Less direct (variable) costs 50,000,000 Materials Direct wages other Total direct costs 20,000,000 Operating profit Fixed costs 5,000,000 (Overheads): Profit before 60,000,000

Year 2
80,000,000 60,000,000

Year 3

Year 4

Year 5

140,000,000 190,000,000 300,000,000 70,000,000 130,000,000 180,000,000

30,000,000

50,000,000

50,000,000

100,000,000

2,000,000

3,000,000

6,000,000 10,000,000

80,000,000

140,000,000 190,000,000 300,000,000

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interest and tax 20% Taxation Profit after tax 40,800,000

20%

20%

20%

20%

60,400,000

110,800,000 140,200,000 260,000,000

Forecast cash flow statement

Year 1 Year 2 Year 3 Year 4 Year 5

Cash 60,000,000 80,000,000 140,000,000 190,0000,000 300,000,000 Receipts Cash sales 500,000 700,000 1,100,000 1,800,000 2,300,000 collection from debtors capital loan others Cash 60,500,000 80,700,000 141,100,000 191,800,000 payments Cash purchases 50,000,000 Payment to 20,000,000 30,000,000 50,000,000 creditors capital expenses: 302,300,000

100,000,000

Revenue expenses: Net flow cash

5,000,000

2,000,000

3,000,000

25,000,000 32,000,000 53,000,000

6,000,000 56,000,000

10,000,000 110,000,000 302,300,000 202,000,000 100 ,000,000

Opening 60,500,000 80,700,000 141,100,000 191,800,000 cash Over drafting or short 5,000,000 60,000,000 131,000,000 137,000,000 term. Closing cash 50 30 60,000,000 20,000,000 ,000,000 ,000,000

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Forecast Balance Sheet Year 1

Non Current 50 Assets ,000,000 Current Assets Total Assets Capital: Noncurrent liabilities Current liabilities

Year 2

Year 3

Year 4

Year 5
100 ,000,000

30 20,000,000 ,000,000

60,000,000

60,500,000 80,700,000 141,100,000 191,800,000 302,300,000 5,000,000 60,000,000 131,000,000 137,000,000 202,000,000

60,000,000 80,000,000 140,000,000 190,000,000 300,000,000 25,000,000 32,000,000 53,000,000 30,00,000 56,000,000 50,00,000 110,000,000

20,00,000

30,00,000

110,00,000

Total: capital 60,500,000 80,700,000 141,100,000 191,800,000 302,300,000 +Liabilities

Sensitivity Analysis
1. Based on Sales: Based on the sales trend in the future the company will have reassess its

marketing strategy and bring some new changes in its offers, marketing or promotional strategies, pricing strategies etc. Also the company will need to ask the people that what actually the problem with their products is directly through either conducting a product survey which involves participation of the target audience in spending some time filling the survey or to draw an prize offer in which the people have to fill a feedback form and send it to the company through which they can win a lottery.
2. Based on Direct cost: Based on Direct cost, as the company initiated with the slogan of

International quality with Indian taste which means there would be a lot concern on the quality and freshness of the snacks but because of maintaining of the quality the prices of the snacks have risen up. Therefore either the prices needs to be brought down or the quality of the products needs to be lowered down so as to level up with the prices of the other companies.

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Based on Indirect/fixed cost: Based On fixed cost, if the product still manages to meet the price range of the products then the company needs to revise its policies and rules in detail and try to find out the loophole in its strategy which is under the marketing promotions strategy, pricing strategies or under the manufacturing unit increasing the cost of the product.

Long Term Strategy

The long term strategy that could be applied to the company should be not the only and only focus on quality because as we stated earlier that the local snacks are more in flow everyday by the customers, therefore making the snacks as per the requirements and demands of the customers would give it better value and market respect, tough the companys strategy of packing the snacks in the nitrogen gas with the air sealed wrappers is much expensive than the normal packaging, therefore one such point is that the cost of the snack is increasing irrelevantly therefore deducting such values becoming the reason for price hike of the company products could give a long term benefit and profits. As far as the question of making huge profits is concerned the desire of the company to expand into a foreign country could be only made possible through building a strong brand image in India first, which the company seemed to be failing in the initial stages, but no sooner the reasons for the negligence was found and has been operated by the marketing and business managers of the company it was again on its way. Therefore the only long term strategy for the company to build image as well as gain profit is to improve the brand image of the company in India, even if had to face some loss but the resultant of this will bring the popularity of the snacks in foreign countries which will certainly increase its revenue generation.

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References

Paul Burns (2011), Entrepreneurship and Small Business, Palgrave Macmillan. Anil Kumar (2009), Small Business and Entrepreneurship, International Publishing house, New Delhi. Talloo (2007), Business organization and management, Tata McGraw-Hill Companies, New Delhi.

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