Superior

University
Lahore
Group number 6

entrepreneurship
Organizational & Financial Feasibility

 Waleed Ahmed (BBHM-F14-020)

 Ahmer Bilal (BBHM-F14-084)
 Asad Raza (BBHM-F14-030)
 Iram Amin (BBHM-F14-058)
 Shahzad Shokat (BBHM-F14-098)

Business Summary
 Introducing Chicken Gyro

Product:

We are going to introduce chicken gyro in Lahore. A gyro is a Greek dish made of meat cooked on a
vertical rotisserie, normally chicken, beef, veal, lamb or mutton, or other alternatives such as feta cheese,
and usually served wrapped in a flatbread such as pita, with cucumber, tomato, onion, and tzatziki sauce.
According to some sources, the Middle Eastern shawarma, Mexican tacosal pastor, and Greek gyros are
all derived from the Turkish donor kebab, which was invented in Bursa in the 19th century by a cook
named Haji Iskender. By 1971, a gyro was already popular in Athens and in New York City. The earliest
known American gyros meat mass-production plant was opened by John Garlic in Milwaukee.

Target Market:

We have decided to target almost every gender and adult people. But our first target market will be the
customer of 17-40 years old. In Pakistan there are 70% youngster and same as in Lahore. That is why we
have tried to target these people. In this age there are mostly students, jobbers, and food lovers. We are
also going to target the customers which are in hurry for lunch such as jobbers. We have target the market
of Liberty where most of the people come for shopping and after shopping they seek for good and healthy
food.

Why Chicken Gyro?

Nowadays people in Pakistan are very crazy about eating fast food and trying new dish. They always
admired something new. They always remain in search of something new to try, especially in Lahore. We
have identified that after Chinese and other Arabian fast food people are in search for something unique
and special. For that purpose it is our best chance to hit the opportunity.

Special Features:

We are going to use 100% healthy chicken and fresh ingredients. We are not only distributing it in our
restaurant but we will also run a food truck which will distribute it to any where we want after we get a
positive response from our customer. Our special feature is our uniqueness that we are going to introduce
totally unique dish.

Management Team:

Chicken is going to introduce in Lahore by the idea of Waleed Ahmed. For this purpose he is going to use
his whole team for managing whole business. Waleed is working on this dish now a days and trying hard
to make this dish all real as it is in other countries. Other crew will take care of marketing, advertising,
promoting and financing tasks.
 Business Description
Form of Business:
There are five partners in this business so business will be partnership. Partnership deed will be
signed by everyone. All partners are willing to do work as they are said. Division of profit will
be decided at the start of the business according to investment.

Managerial Structure:

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Our Vision:
“To provide healthy and hygienic fast food to our customer and to see our product selling in
every corner of city with number 1 service and staff”.

Mission:
Our mission is to introduce Chicken gyro in Lahore with proper way of Marketing. To keep our
concept fresh, exciting and on the cutting edge of the hospitality industry.
Objectives:
Fast food servers not only make food but they also serve food. Our core objectives are given
below;

 Providing clean environment

 Establishing the good relationship with customers
 Providing healthy and hygienic food to our customer
 To be the pioneer in providing chicken gyro
 Maintaining good customer relationship with skilled staff
 To penetrate in market and gain market share
 Provide 100% satisfaction to our customers
 Maintaining excellent services among other competitors

Industry Analysis
Porter’s Five Forces Model:
There are five forces which can affect our business.

1. Bargaining power of suppliers:

Bargaining power of suppliers is less with respect to our business because there are many
suppliers available in the market which will provide chicken and all the ingredients necessary for
chicken gyro. We will not bound to one supplier.

2. Bargaining power of buyers:

Bargaining power of buyers is also less because our target market is middle class and as our
product is new and unique for which the customers normally not bargain.

3. Threats of new entrants:

As our business is related to food industry so it is the possibility that in future we have to face
new entrants.
4. Threat of substitute product:

The people who don’t afford our product can move towards continental, traditional or other fast
food.

5. Rivalry among existing competitors:

As mentioned above all restaurants and cafes are our competitors.

SWOT Analysis:

1. Strengthens:
 New and innovative food concept
 Sales will increase
 Innovative décor
 Quality service
2. Weakness:
 Staff trainings
 Delayed supply
3. Opportunity:

As we come up with new trend of Turkish food this will be the biggest opportunity and we
will reap high profits by this way.

4. Threats:

There will be only on threat which we will face is the entry of new competitors in the
market. And unstable prices of raw ingredients required to prepare the food is also the threat.

Competitors Analysis:
A competitive analysis is a critical part of your company marketing plan. Market position,
strengths, market share and weakness of competitors are as follows;

 Maro tandoor

 Shawarma

 Pratha roll

Maro Tandoor

MARO Tandoors Launches Pakistan’s First Hygienic Tandoor in Lahore. MARO Tandoors is a
startup from the first batch of The Foundation at LUMS Center for Entrepreneurship and is
comprised of four highly passionate and talented undergraduate students of LUMS; Ali Ahmed,
Saifullah Minhas, Zainulabedin Hassan and Zaeem Shahid.

Swot Analysis

Strength:
i. They provide 24 hours service to the customers.

ii. Quickest serving time among other food industry, option to deliver food to houses,
offices, and other establishments

iii. Systematic food preparation

iv. Cost saving

v. Position in strategic location in populated areas

Weakness:

i. Product development for new offering takes too long.

ii. Does not change product often.

iii. Know to serve unhealthy meals.

iv. Limited menu offered to consumers

v. High employee turnover (operation)

Opportunities:

i. Growing economy.

ii. Continuous products and service expansion

iii. Adaptation on products and services to culture and tradition.

Threats:

I. Consumers look for a healthier lifestyle.

II. New entrance.
III. Competitor’s innovation.

Shawarma

Shawarma is a popular non vegetarian side dish in the Middle East, which is fast catching up in
the rest of the world. Shawarma normally is a juicy sandwich-like wrap made of grilled lamb,
chicken, beef, turkey and other meat varieties.It is a fast food usually eaten with pickled
vegetables.

Swot Analysis:

Strength:

i. Their location, the business model is operating on (brick and mortar shawarma bar and
online shawarma bar)

ii. Varieties of payment options.

iii. wide varieties of shawarma

iv. Their excellent customer service culture will definitely count as a strong strength

Weakness:

A major weakness that may count against us is the fact that we are a new shawarma bar –
business and we don’t have the financial capacity to compete with multi – million dollars chains
of shawarma cum sandwich shops like Hummus Bar Express, Dr. Sandwich, SAJ Bakery,
Shawarma Dadon, Jimmy Johns and Subway et al.

Opportunities:

The fact that we are going to be operating our shawarma bar in one of the busiest streets in
Salem – Oregon, provides us with unlimited opportunities to sell our shawarma, sandwiches,
pizzas, coffees and soft drinks to a large number of people.

We have been able to conduct thorough feasibility studies and market survey and we know what
our potential clients will be looking for when they visit our shawarma bar; we are well positioned
to take on the opportunities that will come our way.

Threat:

Just like any other business, one of the major threats that we are likely going to face is economic
downturn. It is a fact that economic downturn affects purchasing / spending power. Another
threat that may likely confront us is the arrival of a new shawarma stands, sandwich shop, pizza
shop or fast food restaurant in same location where ours is located.

Pratha Roll
A paratha is a flatbread that originated in the Indian subcontinent It is still quite prevalent in the
whole Pakistan and the whole of India, where wheat is grown and is the traditional staple of the
area. Paratha is an amalgamation of the words parat and atta which literally means layers of
cooked dough

SWOT Analysis

Strength:

i. Option to deliver food to houses, offices, and other establishments.

ii. Wide range of food options, customization of meal serving tailor fit to consumer’s
appetite.

iii. Position in strategic location in populated areas, flexibility on preparing food time

iv. Position in strategic location in populated areas, flexibility on preparing food time.

Weakness:
 i. Position in strategic location in populated areas,

ii. Flexibility on preparing food time.

iii. High employee turnover.

Opportunities:

i. Growing economy per capital

ii. Continuous products and service expansion,

iii. Adaptation on products and services to culture and tradition.

Threat:

i. Consumers look for a healthier lifestyle, industrialization.

ii. High number of foreign companies entering the fast food market vs. Local brands

iii. Non compliance to sanitary standards.

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Segmentation:

Targeting:
Marketing Strategies:

We have decided to target almost every gender and adult people. But our first target market will
be the customer of 17-40 years old. In Pakistan there are 70% youngster and same as in Lahore.
That is why we have tried to target these people. In this age there are mostly students, jobbers,
and food lovers. We are also going to target the customers which are in hurry for lunch such as
jobbers. We have target the market of Liberty where most of the people come for shopping and
after shopping they seek for good and healthy food.

Positioning:
We are going to position our product into our customers mind with the help of price and product.
We are going to manage our name by providing better taste at low cost, hygienic and healthy
food, creating good relationship with customers. We are going to give our first expression very
good, because first impression always remains in human mind.
 Marketing Research:
Our product:

Chicken Gyro
A gyro is a Greek dish made of meat cooked on a vertical rotisserie, normally chicken, beef,
veal, lamb or mutton, or other alternatives such as feta cheese, and usually served wrapped in a
flatbread such as pita, with cucumber, tomato, onion, and tzatziki sauce.

To make gyros, pieces of meat are placed on a tall vertical rotisserie, in the shape of an inverted
cone, which turns slowly in front of a source of heat, usually an electric broiler. If the meat is not
fatty enough, strips of fat are added so that the roasting meat always remains moist and crisp.
The rate of roasting can be adjusted by varying the strength of the heat and the distance between
the heat and the meat, allowing the cook to adjust to varying rates of consumption. The outside
of the meat is sliced vertically in thin, crisp shavings when done. It is generally served in an
oiled, lightly grilled piece of pita, rolled up with various salads and

Preparation
Gyros are cooked on a vertical broiler, formerly using charcoal in a "cage", now either gas or
electric. As the cone cooks, lower parts are basted with the juices running off the upper parts.

The meat can be beef, veal, pork, lamb or mutton, chicken, or a mixture. The meat is cut into
approximately round, thin, flat slices, which are then stacked on the spit and seasoned. Flat
trimmings are usually interspersed.

Spice mixes generally include salt, hot and sweet paprika, white and black pepper, dried parsley,
garlic powder, and oregano. Additional spices are sometimes added (e.g.cinnamon, nutmeg,
cumin, anise, coriander, fennel, allspice, sumac).

The rate of cooking can be changed by altering the intensity of the fire, the proximity of the meat
to the heat source, and the speed of the spit rotation.

Marketing Mix

 Products
We started as a Company, with all original products under the Pepsi brand. The following are the
current product lines of us:

1. Chicken gyro
 2. Soft drinks
3. Energy drinks
4. Snacks
5. Side dishes
6. Bottled water

Many of current brands and products were added to the product mix through acquisitions. For
example, snack products were added after PepsiCo acquired Frito-Lay.

 Place/Distribution
We use local network for distributing of our products to consumers. Venues for distribution and
sale are considered in this element of the marketing mix. Our places for distribution are as
follows:

1. Retailers
2. Online merchandisers
3. Gyro restaurant (Head Office)

Most products are available at retailers, such as Barkat market, liberty market, food stores, and
Lahore Food Street. Based on this element of the marketing mix, we also use the online method
of distribution.

 Promotion
We promote our products to attract target customers. This element of the marketing mix covers
the marketing communications strategies and tactics that the company uses to reach its
customers. The following are the tactics of promotional mix, arranged according to significance:

1. Advertising
2. Sales promotion
3. Direct marketing
4. Public relations
5. Social media
6. Cable networks
7. Decorating rikshaws according to our theme

Advertising is our primary tactic for marketing communications. For example, the PepsiCo
Company is popularly known for using celebrity endorsers to promote its products on TV, radio,
print media, and online media. The firm also advertises through business signs it sponsors or
gives to stores and other establishments. So according to this we also try to promote our products
through this strategy.

 Prices and Pricing Strategy

No matter what type of product we sell. The price we charge our customers or clients will have a
direct effect on the success of our business. Though pricing strategies can be complex, the basic
rules of our pricing are straightforward;

 All prices will cover costs and profits.

 We will review prices frequently to assure that they reflect the dynamics of cost, market
demand, response to the competition, and profit objectives.

 Prices will be established to assure sales.

Our main focus is the costs of running a business. If the price for your product or service doesn't
cover costs, your cash flow will be cumulatively negative.

To determine how much it costs to run our business, we include property and/or equipment
leases, loan repayments, inventory, utilities, financing costs, and salaries/wages/commissions.
We are trying to promote our product through this.

0R

Organizational
Feasibility
Organization type:
Our organization will be partnership organization. We are five members and each one is core
member of our team. Everyone is
paying his role in this team. Profit
will be divided according to our
partnership deed. Organization
can only be shutdown with the
willingness of all partners.
Following are the members and
their roles in this partnership
organization:
 Organizational Feasibility:

Organizational Hierarchy:

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Skills and Abilities of Crew:

Waleed Ahmed (Founder & Director):
The idea of chicken gyro in Lahore was introduced by Waleed Ahmed. He is the founder
because of his skills and abilities.

Skills:
 Have a strong grip on current affairs
 Have business judgment
 Business awareness
 Leadership qualities
 Representational qualities
 Problem solver

Abilities:
 Revenue generating abilities
 Negotiation power
 Lessen the burden
 Emotionally balance
Iram Amin (Chef):
Skills:

 Business sense
 Creative person
 Attentive in details
 Cleanliness
 Can learn online
 Don’t waste material while cooking

Abilities:

 She is a motivational woman

 Multitasking
 Can work as a team member
 Strong communication
 She is consistent in nature
 Knowledge of ingredient selection

Ahmer bilal (Marketing Manager)

Skills & Abilities:

 Creativity:

I absolutely love to think creative and be creative. This comes in many forms from thinking to
doing. I have seen and worked with many creative people in my career and every one of them
have inspired me to be creative myself.

 Intellectual Curiosity:

Marketers have an insatiable curiosity. Let’s face it; we’re smart people who want to be even
smarter. I guess that’s because we are trained to be that way for our job. If our marketing isn’t
working, we want to make it work and be smarter about how we do it. Being smart is organic to
our occupation.

 Create Something From Nothing:

 Like an artist, a marketer likes to create. We do this through words, sounds, videos, pictures,
interactivity and so much more. We are wired this way and always strive to create something
new and different.

 Be Innovative:

This stems from our genes that make us want to be creative and to create. This sounds like it’s all
the same thing, but it’s not. Being innovative is really our desire to do something completely
different than our competition. As marketers, we like to poke, push and stretch the boundaries of
what’s considered normal, and make it behave differently. Being innovative is really a badge of
honor marketers really want. At least I do anyway.

 Technology:

This is one of the hardest components of marketing to grapple with, yet one of the most
rewarding and fun. Technology has changed so much over the years and it has also permeated
everything a marketer does from design to content creation, metrics and distribution. I love it,
and continue to enjoy the journey of learning more about how technology is making my career in
marketing more effective, measurable, creative, diverse in distribution and dare I say frustrating
too.

 Media:

Marketers now have more media channels to work with than ever before. Media helps us tell the
story more effectively and also reach more people faster. Let’s face it; media is fun to use and
fun to manipulate. It’s fun to watch our customers interact with media as they become our brand
advocates.

Shahzad Shokat(Finance Manager)

Skills:

 Sense Maker
 Adaptive thinker
 Socially intelligent
 Design mindset
 Load manager
 Cross cultural competency
 Computational thinker
 Foresighted

Abilities:
  Handle all type of financial accounts
 Expert in bookkeeping
 Can handle all type of math
 Could assist clients
 Manage multiple accounts at once
 Knowledge about current situation

Asad Raza(Sales Representative):

Skills Regarding Sales

 Product Knowledge
 Active listning
 Communication
 Time Management
 Qualication Questioning

The most important of today sales skill is to simply understanding the buyer .Sales relresentative
sell the retail product good and services

Communication skills you will need to speak to customer about the product specification of the
product and also tell about the features of that product

You should tell that how the product is different and unique from other substitute product

You should also listen actively tha what your customer want to know about your product what
types of product he want and then answer about the product

The most important skill of sales representative is to persuade his customer to buy that product

Abilities Regarding Sales

Today is highly competitive market .Sales people need to not only have knowledge of their own
product and services Butt require an understanding of their client business and how they can
contribute positively to their success. Sales people have to act like an advisor Problem solver
Consultant and be able to demonstrate how they can promote growth profit and enhanced
customer satisfaction for their client

These are some important outcomes of sales

 Plan for the sales call

 Study prospect before the call
  Prepare the proposal well
 List of question that should be addressed
 Know the maximum Optimum and minimum prices that you can accept

Experience Regarding Sales:

I have six month experience as a CRO (customer representative officer) in black arrow
communication .After that I have one year experience as a DSO (order booker) in Baloch
Traders dealing in dairy product.
 Financial Feasibilities
Initial Investment
Contents No. of Units Price
Stove & grill machine 1 20,000
Shop with advance rent 1 120,000
Furniture 40,000
Air conditioner 1 60,000
LED 1 60,000
Sausages & ingredients 50,000
Tiles 30,000
Fans 4 8,000
Roof ceiling 24,000
Bikes for delivery 2 60,000
Sanitary appliances 6,000
Computer 1 8,000
Security Cameras 4 12,000
Advertisement 30,000
Paint 10,000
Refrigerator 1 40,000
Miscellaneous 10,000
Total 588,000

Debt and Equity Financing:

Our initial investment will be divided into credit and equity financing. Ratio will be as;

Equity financing: 60%

Debt financing: 40%

Balance Sheet:
Assets Price Liabilities:
Stove & grill machine 20,000 Accounts payable
235,200
Shop with advance rent 120,000
Furniture 40,000
Air conditioner 60,000
LED 60,000
Sausages & ingredients 50,000
Tiles 30,000
 Fans 8,000
Roof ceiling 24,000 Capital
Bikes for delivery 60,000 Equity financing
352,800
Sanitary appliances 6,000
Computer 8,000
Security cameras 12,000
Advertisement 30,000
Paint 10,000
Refrigerator 40,000
Miscellaneous 10,000
Total 588,000 Total
588,000

Revenue Generation:
In our business revenue will be generated only from direct resources such as sales. We will
generate our revenue by selling our products to customer. Our expected revenue will be;

Contents Price No. of units sell Monthly Annual revenue

(Per month) revenue
Mini chicken 400-/Rs 300 120,000 1,440,000
gyro
Regular gyro 500-/Rs 150 75,000 900,000
Jumbo gyro 600-/Rs 250 150,000 1,800,000
Cold drinks 25-/Rs 700 17,500 210,000
Total 4,350,000

Operating Cost & Expenses

Contents Monthly Annually
Salaries 56,000 672,000
Rent 30,000 360,000
Gas & Electricity bill 25,000 300,000
Internet 2,000 24,000
Sausages & Ingredients 50,000 600,000
Cable charges 300 3,600
Maintenance 2,500 30,000
Miscellaneous 2,500 30,000
Total 2,019,600
Depreciable Assets:
Contents Price
Furniture 40,000
Stove& Grill machine 20,000
Air conditioner 60,000
LED 60,000
Bikes 60,000
Refrigerator 40,000
Total depreciable assets 280,000
Depreciation rate 10%
Annual Depreciation 28,000

Income statement
Revenue
Mini gyros
1,440,000
Regular gyros
900,000
Big
1,800,000
Cold drinks
2,100,000
Total
4,350,000
Expenses
Salaries
672,000
Rent
360,000
Gas & Electricity
300,000
Internet
24,000
Sausages & Ingredients
600,000
Cable charges
3,600
Maintenance
30,000
Miscellaneous
30,000
Depreciation
28,000
 Total expenses
2,047,600
Gross profit
2,302,400
Tax 10%
230,240
Net profit
2,072,160
Cash flows & Net present Value:
Year Cash flow PVIF@15% PV
0 588,000 1 588,000
1 2,100,160 0.86956 1,826,215
2 1,500,000 0.75614 1,134,120
3 1,800,000 0.65751 1,183,518
4 1,800,000 0.57175 1,029,150
5 1,200,000 0.49717 596,604

Capital Budgeting Techniques:

Payback period:

Year Cash Flow Remaining amount

0 (588,000)
1 2,100,160

Payback period = Completed years + Remaining amount/ Next cash flow

=0 + 588,000/ 2,100,600

= 0.2799(12)

Payback period = 3 months