Business Plan BLED

7/31/2019 Business Plan BLED

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Amity International Business School

Business Plan

On

Automatic Power Saver

Submitted to- Submitted by-

Ms. Poorva Ranjan Asif Unia

Faculty, BLED Kuhoo Chauhan

AIBS Naman Shrivastava

Prarthna Bajaj

Satyaneesh Dubey

Sugandha Poddar

Suman Raj


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Table of Contents- Introduction Goal and Objective The Product

Features Technicalities Future Upgrades

Block Diagram: Productions and Operations Plan Merits USP Market Competition

Financial Plan Cash Flow Statement

HR Plan Creation Recruitment and Selection Training and Development Remuneration Plan

Marketing Plan- End Consumer Analysis Competitor Analysis Marketing Plan- Segmentation, Targeting and Positioning Marketing Strategy Pricing Strategy Promotion


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Introduction

A basic problem in saving electricity is switching off when not needed. A large chunk of power

gets wasted as it was not preserved. To come up and meet the challenge this is a device that

allows power to flow if there is someone in the room else cuts the power.

Sound Automatic Power Server is an electronic engineering gadget which helps us to save

energy by sound sensor present in the room.

Goal and Objective

Our goal is to build a product that can

1.

Save energy.2. Use day to day technology.3. Provide good service4. Can be used in schools, colleges and everywhere it is realistically attainable.

Our basic objective and the vision is

Develop something that is beneficial for the society and finally for the best of nation

The Product

An automatic power saver device specially suited for school/college environment. The basic

device looks like-


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o Features of Automatic Power Saver- Intelligently detects sound level in a room. When the noise is below the preset threshold in the room it automaticallyturns off the power supply. Once the power supply is cut-off, it needs to be manually switched-on. Stray noise detection and rejection.

o Technical Details- The sound level is detected using a microphone. The microphone output is amplified by Op Amps. Sound threshold in the room is preset by programming a Micro-controller. Op Amps output is compared with the preset threshold using a comparator. If the sound level is detected below the threshold continuously for one

minute, then the power supply to the room is cut-off.

Once Cut-off, the supply has to be switched-on manually.

oFuture Upgrades-

Provisioning of Modes, like Examination-Hall Mode.Since during an exam, the sound level is expected to be low, so the system

will be bypassed in this mode.

Sensitivity control- to change threshold level Timer control- to adjust time-out period


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Block Diagram : Production and Ops Plan-

Automatic Power Saver Flow Chart


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Merits- Most cost-effective solution to save power. Novel technology in power-saving area. Easy to install and operate. Portable. Rugged and reliable. Its own power consumption is very low. Patented

USP-

First system, based on Sound threshold technology, for power

saving in school/college environment

Market Competition-

This product will not face any competition in the market due to:-

o Superior Technology in the power-saver area for schools/colleges.o Inexpensive (A system costs about Rs. 1750/-)o Highly rugged, portable and reliable (weight approx. 250 gm.).o Consumes less power (5-6 W).o Easy installation and maintenance.


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An example-Suppose a college has 50 classrooms with SAPS, the investment of college will be (if each unit

costs Rs.3000): Rs. 1, 50,000.

Let us consider that there are about 12 tube lights and 8 fans in a classroom, then the electricityconsumption will be : ((12*40)+(8*60)) = 960 W ~ 1 Kwh

If the device saves 4 hours of electricity drain per day, total electricity saved per day will be :50(classrooms) * 4 (no. of hours) * 1 (Kwh) = 200 Kwh

So, electricity saved per month = 6000 Kwh per year = 72000 Kwh

Cost Of electricity Saved per year = Rs. 3, 24,000 (at Rs. 4.5/Kwh) (which is too cheaplyconsidered)

So, savings of the college = Rs.( 3,24,000 - 1,50,000) = Rs. 1,74,000 in the first year, and thenit goes on for Rs. 3,24,000 for coming years.

Now, the question arises that "How much power does the system consumes?System consumption = 15 W (almost)

Currently, system has no algorithm to switch its own supply, so it runs 24 hours a day. Total

consumption per day for 50 classrooms = (24 x 50 x 15)/1000 Kwh = 18 Kwh

Let

Total consumption per year for 50 classrooms = (18 x 30 x 12) = 6480 KwhElectrical Cost Of Operation Per Year (at Rs. 4.5/Kwh) = 6480 * 4.5 = Rs. 29160

This figure is small as compared to the savings (Rs. 3, 24,000), but "itna bhi kyun waste

kare??"

So, we are working on newer versions capable of switching the own power supply off.

So, then the consumption of the device at 4 hours per day (9am1pm)

So for 50 classrooms = 50 * 4 * 15 = 3000 Kwh = 3 Kwh per year = 90 * 12 = 1080 Kwh

Cost of Consumption per year = Rs. 4860 ( at Rs. 4.5/ Kwh) which is one-sixth of the previous

versions consumption

So, average energy saving per year (for 50 classrooms): 72000 Kwh (Rs. 3, 24,000)


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Financial Plan--Project approved by MSME.

- MSME rewarded Rs. 5, 00, 000/- for starting the business.

Cash Flow StatementNAME: Automatic Power Saver for Classroom environment

Using Indirect Method

Cash Flow From operations activities: Amount

Profit/loss before taxation 83,000.00

(Assuming the newly setup company makes a profit)

Cash paid to suppliers -56,000.00

Cash from operations 27,000.00

Dividend received 250.00

Interest received 500.00

Interest paid

-

500.00

Tax paid -2,450.00

Net cash flow from operating activities 24,800.00

Cash flow From Investing Activities:

Additions to equipment

-

2,500.00

Replacement of equipment-

7,000.00

Proceeds from sale of scrap 500.00

Net cash flow from investing activities

-

9,000.00

Cash flow from financing Activities:

Proceeds from capital contributed 3,400.00


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Proceeds from loan 16,000.00

Payment of loan

-

5,400.00

Net cash flow from financing activities 14,000.00

NET INCREASE /DECREASE IN CASH

Cash at the beginning of the period 29,800.00

Cash at the end of the period 2,430.00

32,230.00


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HR planIn many businesses (especially ones) human resources are among the major expenses. So

calculating and managing them carefully is an important business planning task. And primarily

we have to work out our HR and hiring policies. These include general approach to payment,

compensation and insurance within our company. We should have answer for the following

questions:

1. Are your salaries higher or lower than the industry average?2. How will that affect your competitiveness as an employer?3. Will you be able to fill in jobs within your company with qualified workers?

Creating the HR plan

A series of action programmes are initiated as a part of HR plan. These include:

1. Recruitment and Selection2. Training and Development3. Remuneration Model

Recruitment and Selection

1. Management Identifies Areas for Change - Management conducts regular reviews of

operations and identifies areas in which positions and/or employees need to change, including

answers to the following questions:

What are the companys goals and objectives? Do these goals call for expansion into new markets? Are new product lines planned? Are changes in technology necessary to stay competitive? Will new skills and/or training be required to meet the companys goals and objectives?


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2. People Management for Change - Management consults with human resources experts

(either in-house or external) to match the companys changing needs with potential solutions:

training, shifting personnel, and/or recruiting new employees.

New positions are opened for engineers with an IT background. Special skills include software like SQL, JAVA Prior 2-3 years of work experience is required. However freshers may also apply Hiring will be scheduled in the month of April

3. Who Should Be Involved in Recruitment? Management follows a plan of recruitment which

incorporates the best human resources theory and practice available to ensure successful hiring,

including the following considerations:

The positions available are fulltime. Training will be provided to the freshers. However people for the higher positions like

engineers are required to have the skills

The interview will be conducted by the HR, Managing Director.

Training and Development

The training and development programme would cover the training needs necessary for theexisting staff, developing training programmes for freshers, frequency of such programmes and

budget allocation for such programmes.

The freshers would be given training for a period of 30 days to understand the demandsand challenges of the job.

The senior officials would be imparting the training to freshers. Trainers will be given additional incentives apart from their pay for the same purpose.


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Remuneration PlanAny remuneration plan must be understandable, workable, and acceptable. The remuneration

scheme must have two componentsa base rate and the scope for increasing the base rate. The

remuneration plan must be determined keeping in mind the requisites and the components.

Remuneration Model

Job Description

Job Evaluation

Pay Survey

Pricing Jobs

o Job Description: Job descriptions are crucial in designing pay systems,for, they help toidentify important job characteristics. They also help determine , define and wiegh

compensable( factors for which an organisation is willing to payskill, experience etc. )

o Job Evaluation: The next step in pay fixation is to establish relative worth of jobsbyemploying job evaluation. Each job is analysed and defined in terms of compensable

factors an organisation has agreed to adopt.

o Pay Survey: The next step is to establish pay differentials. Before fixing wage and salarydifferentials, prevailing wage and salary rates in the labour market need to be ascertained.

o Pricing Job: In pricing job, the job evaluation worth will be matched with the labour market worth and appropriate pay level for each job will be designed. MSME has

rewarded 5,00,000/- for establishing the business.


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Market & Competitor AnalysisThere are no devices available in India concerning saving electricity especially for universities

and colleges. The only devices which are available in the market are related to power saving

credit ratings and the automatic keys which also acts as a miniature for power in the rooms.

India is a major hub for electronics and with the apartment culture growing up and the need to

save electricity has boosted the demand for product like the projects. There has been seen a

tremendous growth in the colleges and universities these days, this product would be useful in

this area as well as students often tend to switch off the electricity while they are leaving the

classroom.

End Consumer Analysis

Our target group is not limited to just the universities and the colleges but our motto is to reach

every customer having the facility of electricity in major cities of India.today the consumer have

become very aware of the threats which he is causing to the environment. This product would be

very useful for them. Inbuilt with motion sensing techniques this would require only installation

and no further requirements.

Competitor Analysis

There is no direct competitor in India for a product like ours which is wholly and solely designed

for energy saving purpose. This gives us a first mover advantage above competitors. But asmentioned in Market Analysis the consumer durable industry have come up with power saving

rankings option and the electronic keys which also acts as a switch for power mode are indirect

competition to the product. Still our competitive advantage is our first movers advantage this

product just requires installation and with motion sensing techniques it further requires no man

control. The product is also available at a very competitive price in the market.


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Marketing Plan Segmentation Targeting And Positioning

Our market segment is based upon

To reach every residential, commercial & educational place in major cities

Middle and higher income group

Targeting

Our main targets at very initial stage would be commercial and educational institutions.

Generally it has been seen that employees and students often tend to forget switching ff the

power modes this product can be very useful for administrative authorities in order to save

electricity moving from this zone we would like expand our target group towards the residential

areas.


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PositioningWe would like to position our product purely as an philanthropic view in order to reduce global

warming and saving electricity. Today the consumer has become very aware of his actions

towards saving emery. This product would satisfy that need of the consumer.

Marketing strategy

We would use market premium starategy. We would like to first move in the market with an high

price of rs 3000 only and later on we may lower the prices depending upon the market

conditions. Once our organization, via our low cost product, has established a relationship with

consumers, our organization will sell additional, higher margin products and services that

enhance the consumer's interaction with the low-cost product or service. We will indulge in

extreme penetration marketing. There will be intensive marketing and the name would be

published well. But this would be done through more of the advertising media and very minimal

sales promotion will be adopted.

Pricing Strategy

The Pricing strategy used is premium pricing from the introductory to the repurchase stage,

every small detail has been looked into to offer the best product to our customers

Promotion

Following the initial promotional activity through pre-launch, launch and post-launch

advertisements in newspapers, magazines and real estate recommendations, will significantly

reduce its promotional activities few months after the launch, hoping that word-of mouth will

attract potential clients. Promotional activities will still be utilized through these media outlets,

but minimally. There would be costs incurred based on the stages of our launch-i.e. launch, pre

launch and post launch. Advertising (particularly in the national newspapers can be very

expensive the overall resource budget for the promotional campaign will often determine which

tools the business can afford to use. Thus we decide not to go for television advertising as it isexpensive. Some potential customers need to be provided with detailed, complex information to

help them evaluate a purchase. In this situation, more brochures and pamphlets will be

distributed we are using pull strategy to introduce our products to the market and create demands

among our customers.

Business Plan BLED

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