Professional Documents
Culture Documents
BD Organic Farm is the first in Bangladesh to provide 100% organic chicken. In recent times
people of Bangladesh have been very health conscious and we now have the perfect
opportunity to serve the people and provide them with healthier chicken. In the first years
according to our financial studies we will be selling 1700 chicken 900 of them are layer
chickens and 800 of them are broiler chickens. Raising chickens organically, for eggs, meat or
both, is a low cost project that provides a rapid return on our investment. It takes around 1 to
1.5 million taka to start our business. Many chickens will begin laying eggs by the time they are
five months old and extra roosters can be butchered for meat at around four months of age. At
first we explained our company mission, vision, values and strict guide lines for employees that
will always be followed. Then we have used Porters five forces, PEST Analysis and SWOT
Analysis to analyze and understand the current status of our business in Bangladesh. Moreover,
the industry and product life cycle has been elaborately described using a diagram. Core
Competency and competitive advantage both are very important for any company to survive in
the long run. This report specifically describes the core competency and competitive advantage
of our new venture. Initially we have targeted business to business customers only and the
details are described in this report. Physical environment on which the business will continue is
very important. So we have elaborately described everything about our business location,
buildings, Sanitation, equipments and the organic feed that will be fed to the chicken. The
whole production process has also been described in brief. A very specific description of the
marketing plan and the human resource strategy has been done in this business report. Finally,
the financial statements including income statement, balance sheet, cash flow statement,
assumptions etc has been added and these calculations have become a very crucial and
important part of this business report. This report contains all that an investor needs to know.
Company Overview
Name:
BD Organic Farm
Logo:
Mission Statement
Our mission is to provide quality healthy organic meat for our customers consumption, in
accordance to the quality and food safety standards. Our commitment is to aware more people
about the existence of organic meat consumption and thus so enhancing our customer range.
Vision Statement
Our vision is to continue to consolidate the market positioning of our company. We intend to
optimize our business results by promoting teamwork and professionalism, and upholding our
social commitment. We hope to provide services to our future customers.
Values
It is very important that we follow certain values for our business complying with international
business. We will be built on a foundation of integrity, teamwork, customer focus, , quality and
food safety. We believe in operating our business at the highest ethical standards, and we
ensure to sustain our culture.
Company Guidelines for employees
We will follow flexible workplace and ensure that workers follow companys code of conduct.
Following business ethics will be highly encouraged my employees. Legal laws and regulations
must be followed provided it is maintained throughout the hierarchy. Any conflict of interest,
disputes between employees and supervisors must be brought to attention to the
management. The working policies such as working hours should be productive. Hostile
environment will not be tolerated. In addition to that we will maintain a non discriminatory
workplace. We will not be biased towards
Race- If the employee is eligible for the job; we will make sure he/she will not be
discriminated due to race.
Gender- Any person male or female resulting on their capabilities will be applicable for the
job. Also, transgender people will not be undermined if they are good enough for the job.
Religion- Different religious background will not be a problem as long as employees respect
each others religion.
Ethnicity- People from different ethnicity will not be discriminated provided they are
habituated with our local culture and system.
Color- We will not be discriminative towards the skin color of our employee.
Disability- An employee must be qualified enough to do the job. If a person is disable and if
he/she is capable and it falls under reasonable accommodation that person will be good
enough for the job. Otherwise if that person falls under undue burden it would be
impossible for them to be provided with logistic supports.
Sexual orientation- Any kind of sexual behavior will not be tolerated. In addition, we will
maintain a sexual harassment policy, since all employees have a right to work in an
environment free from the demoralizing effects of harassment or unwelcome offensive or
improper conduct. Sexual harassment or harassment based on race, gender, color, religion,
national origin, age, sexual orientation, gender identity or expression, disability, or veteran
status or any other status protected by law will simply not be tolerated at our company.
PEST Analysis
Political:
The first element of a PEST analysis is a study of political factors. Political factors influence our
business in many ways. Political factors can create advantages and opportunities. Conversely
they can place obligations and duties on our business. The recent havoc in Bangladesh has been
destructive for many businesses and we are likely to be affected by it as well. Political factors
include the following types of instrument:
- Rules passed on by the Government
- Voluntary codes and practices
- Market regulations
- Trade agreements, tariffs or restrictions
- Tax levies and tax breaks
- Type of government regime (we are democratic)
Non conformance with legislative obligations can lead to sanctions such as fines, adverse
publicity and imprisonment. Ineffective voluntary codes and practices will often lead to
governments introducing legislation to regulate the activities covered by the codes and
practices.
Economic:
Economically we are a developing country and our business shall provide employment
opportunities which would increase our economic growth. The growth for our business is huge
as people are more health conscious.
Social:
The third aspect of PEST focuses its attention on forces within society such as family, friends,
colleagues, neighbors and the media. Social forces affect our attitudes, interest s and opinions.
These forces shape us, the way we behave and ultimately what we purchase. For example the
people of Bangladesh are changing their attitudes towards their diet and health. As a result for
the demand for organic food is rising.
In summary we are able to offer products and services that aim to complement and benefit
peoples lifestyle and behavior. If organizations do not respond to changes in society they will
lose market share and demand for their product or service.
Technological:
Our poultry is simple and effective and it does not require much technology to start the
business. Although, the technology infrastructure such as the internet and other information
exchange systems including telephone, fax machine and computer will be acquired.
Technology has created a society which expects instant results. This technological revolution
has increased the rate at which information is exchanged between stakeholders. A faster
exchange of information can benefit our business as they will be able to react quickly to
changes within our operating environment.
SWOT Analysis:
Strengths
Weaknesses
Lack of expertise
Unavailability of inventories
Opportunities
Branded fast food chains like KFC, BFC are positive towards organic chicken
Threats
Core Competencies:
Our core competency is the uniqueness of our product and the way the final product is
achieved. We are providing our customers with organic chickens and we are the first to do so.
Eating organic chickens can help limit your exposure to pesticides and chemical-based
fertilizers. Organic chicken farming is cleaner and more environmentally friendly. Our organic
chickens do not contain antibiotics which help prevent the development of resistant bacterial
strains. Our poultry are fed corn, wheat, barley, as well as nutri-balancer crab meal and field
peas. So to conclude we can say that our core competency is that we are providing organic
chickens and we are the only one to do so in Bangladesh.
Competitive Advantage
As Organic Poultry is new to the market so we already have a advantage of having no
competitors and if it is correctly assessed then it will have a great opportunity of rapid market
growth. Still there is a possibility of losing market share to new competitors but in that stage
firm will take actions like price cutting and promotional activities to gain back market share. The
other challenges are securing the important channels, such as the food suppliers and the chick
suppliers, These are very important to carry on the business. The unique advantages of these
chickens are its size and by eating organic chicken provides a number of health benefits, and
also promotes a healthier ecosystem. We will be going for patenting it. As it grows the brand
gets established, sooner people will be able to identify the product and we will be able to
create a distinct image on the customers mind.
Market Overview
Target Customers
Renowned superstores like Shopno, Agora, Best Buy, Meena Bazar etc
High Profile community centers like Ananda Bhuban, Amirimi, Hilton etc
10
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Facilities:
Chickens are territorial. They rarely roam far during the day, and they come back at night to
roost in a familiar place. Chickens need housing that keeps out predators and protects them
from inclement weather.
Location:
Gazipur is a very good place for starting an organic poultry farm and the location we have
selected for our farm has a history of being free of any chemicals. The land is huge and has
already got a substantial amount of grass on it. The soil of the land is suitable for organic
farming as it drains out all the water automatically. It is also great in terms of convenience since
everything thats necessary to make organic feed for the chicken is available nearby. Moreover,
this location is very close to the capital city of Bangladesh Dhaka.
Housing:
We have a huge space for the chickens to range freely and have exercise. We will construct
laying boxes, chicken coops and chicken pens for our poultry farm. Our coop will protect our
chickens from wind, rain and extreme temperatures as well as predators and parasites. This will
be a well-insulated facility with a light bulb or heat lamp for the winter months as well as
ventilation for fresh air. The allocated space for each chicken will be 2.5 square feet.
Sanitation:
An important element to chicken health is sanitation. In order to maintain a clean, healthy
environment, the coop and outdoor area will be cleaned out weekly. Feeders and water
providers will be regularly cleaned and disinfected. Dust baths will be available, as they help
control mites. At least once a year, a thorough cleaning will be done on the coop and yard. Also
cleaning will be done before introducing new birds to the area to limit the spread of disease.
During this cleaning, safety precautions will be taken in dealing with dust. Employees will wear
a dust mask while cleaning as inhalation of dried chicken manure can be harmful to humans.
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Dust and cobwebs will be removed from corners of the coop. The inside of the coop will be
disinfected including troughs, perches and nests. To disinfect, one-tablespoon chlorine bleach
to one gallon boiling water will be used.
Equipments:
Very few types of equipment are required for organic poultry farms. The main purpose of
organic poultry farm is to provide chicken and chicken eggs in harmony with the nature. To
keep the process natural, very few equipments are used. Some basic equipments that will be
used are:
Biddie Drinker: The Bidde drinker is used for all chicks and the water level is adjustable. It is
very economical and reliable. Moreover, this drinker is very easy to clean and maintain.
Price: Tk. each
Round Drinker: Open water for all kinds of poultry. Different sizes are available depending
on the bird type and bird weight. These drinkers are usually installed in a suspended
position. Water level can be adjusted precisely with minimal labor.
Lubing Nipple Drinker: 360 degree nipple for vertical and horizontal activation ensures
optimum water intake even for day-old birds. Stainless steel housing for ultimate hygiene
and reliability. Provides sufficient water supply even for heavier poultry. Single-arm drip
cup style keeps the litter dry without inhibiting the birds from drinking.
Cyclone Feed Pan: The Cyclone pan feeding system is a broiler feeding system that
performs from start to finish. Pans are fixed on the tube to maintain optimum feed space all
around the pan. Cyclone intermediate control pans can be installed anywhere on the feed
line.
Male Pan Feeder: The correct feeding of males is very important for a high fertility rate.
Separately feeding males guarantees that all males receive the specified amount of feed.
One pan is sufficient for feeding 7 -9 males.
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SILOS - external and internal silos including accessories for hygienic feed storage. External
and internal silos made from galvanized sheet steel, inside silos made of Trevira fabric
including accessories for hygienic feed storage.
Agrilight barn lighting: Maximum light spread of 24 metres wide, low installation &
maintenance costs and long lasting.
Organic Feed:
It is very important for organic poultry farmers to ensure that the chickens are provided with
the right type of organic feed. Organic chickens cannot be fed the usual poultry feed (contains
synthetic substances) rather the feed has to be 100% organic. We feed our free-range organic
chickens a mix of clover, grass and minerals to keep them healthy and happy. Chickens at our
farm have access to vegetation. Our chicken feed contains crushed dried fish, oil cakes, oyster
shells, grains, wheat and mixed vitamins to produce a balanced, standardized combination of
ingredients. We will raise our chicken on pasture. This is the most natural diet chickens can eat.
As long as they have enough acreage or consistently fresh pasture (such as using a movable
coop to give them fresh ground daily or weekly), chickens can self-regulate and find enough
insects, bugs, weeds, grasses and seeds to stay healthy.
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Production Process:
The production process is quite natural for organic chickens. With very little manual care and
maintenance the process can be completed. The production process differs for different
breeds. Every different types of chicken have to be taken care of differently. In general, at the
starting of the process, very young batch of chicks are bought and kept in a place where the
temperature and the ventilation can be controlled. The chicks are fed age appropriate organic
feed. For two to three weeks high level of nutrients (protein, energy, minerals and vitamins) are
provided to the chicks to enhance their health. These chicks do not have access to the outside
environment until the third week of their age. Roosters are taken care of separately. For every
ten hens a rooster is bought. This is the case only for egg producing chickens but for meat
producing chicken (broilers) do not need any male chickens.
After second or third week the type feed is changed with another type of age
appropriate organic feed. During this period all types of chicken are kept in movable coops and
have access to the outside environment for eight hours during the day. They are allowed to roam
through fields and pastures and to graze on the grass. During this eight hours they eat pastures (the
most natural diet) and find enough insects, bugs, weeds, grasses and seeds to keep them healthy.
They also get enough exercise which adds some extra flavor to their meat and eggs. At night the
chickens return to their respective coops to rest.
After 45 to 55 days the meat producing chickens (broilers) grow up to two to three
kilograms. These are then sold at more prices than conventional chickens. But the layers or
other egg producing chickens are kept until they no longer produce eggs. A fully matured layer
chicken can grow up to a maximum weight 4 kilograms. After this point the layers cannot
convert the feed into muscles so keeping them longer can incur loss.
Before bringing in a new batch of chicks the whole facility is cleaned and kept empty for
few days. This stops any spreading of diseases. A different section of the field is allocated for
the new batch and the previously used section of the field is kept untouched so that the grasses
can grow again and the field can come back to normal for reuse.
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Marketing Plan
SALES
The first target of our sales and marketing will be the big departmental stores around Dhaka.
The departmental stores sell the frozen chickens and we will try to reach every departmental
stores in Dhaka. The availability of the product will have an impact on the sales. Then the fast
food shops as they search for big size and quality chickens. Then we will be taking orders from
the big convention centers or the community centers for supplying chickens for very high
profile ceremonies. In future we will start home delivery service at places like Banani, Gulshan,
Baridhara, Uttara, Bashundhara etc.
Distributions
The distribution channels need to be maintained perfectly to reach the desired customers. We
will try to reach every outlets present in the Dhaka city of the departmental stores. We will be
following direct distribution procedure, producer to the retailers. As it will be in the
introductory stage so we will be concerned about the availability of the product, as it grows the
popularity and the demand will make the retailers ask for the product.
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Advertising
Advertising is a vital aspect of the marketing plan. Organic chickens are totally a new concept
among Bangladeshis, so we need to aware and educate people about it. There will be banners
about the organic chickens in front of every departmental stores. Basically we are going for
direct marketing strategy. We will send calendars, posters, catalogs and other attractive things
to our desired business to business target customers. We will send our representatives to
explain and convince them why should they sell organic chickens and how can they be
benefited by this.
Customer Service
At the very beginning of our business we wont be very focused on customer service. But
gradually we will increase our staffs and will provide superior customer services like home
delivery, dressing, cutting of chickens before delivery etc.
9. Human Resource Strategy
Key Issues:
Discrimination: No sort of discrimination will be done on the basis of gender, race, family
background or religion. People will be hired strictly on the basis of quality, skill and
experience. We will be very interested in a managing a diversified work force. Even though
there are no strict implications of any law against discrimination here in Bangladesh still our
internal code of contact will react immediately towards any kind of discrimination by
anyone within the business.
Sexual Harassment: It is one of the most important issues all over the world. People are
teased and harassed everywhere all over the world. This kind of behaviors decreases
employee motivation and satisfaction towards their job. We will show zero tolerance
towards this kind of behaviors and if the accused person is found to be guilty then that
person will be handed over to the police and will be subject to automatic expulsion from
the farm. Prevention is always better than the cure so every newly employed person will be
familiarized with our code of conduct during the orientation program.
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Staff Requirement: The whole process of producing organic chicken and eggs is quite natural
but yet staffs will be needed for cleaning, maintenance, feeding and collecting eggs. Initially we
will have one coop (each containing 250 to 300 chickens) and room for very young chicks. So
four staffs will be hired two for each coops and two for the room for young chicks. A care
taker will be hired to look after all eight staffs and the night guard.
Structure: The structure is pretty simple. All the eight employees and the night guard will
answer to the caretaker and the caretaker will answer to the owner or top manager.
Chairperson & CFO
Tasneem Tazakka
Amin
Marketing
Manager Lokman
Hossain
Mozumder
Operations
Manager
Caretaker
Cleaner
Two Staffs
Night Guard
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2014
2015
2016
Sales
2577000
3092400
3710880
4453056
-768444
-883711
1016268
1168708
Gross profit
1808556
2208689
2694612
3284348
Less: expenses
Salaries:
Caretaker
72000
72000
144000
144000
Employee
432000
432000
475200
475200
60000
60000
60000
60000
Water bill
120000
120000
120000
120000
Administration expense
120000
150000
180000
180000
Selling expense
20000
22000
24200
24200
Guards salary
48000
48000
52800
52800
Owners salary
300000
350000
400000
500000
Machinery
15000
15000
15000
15000
Furniture
5450
5450
5450
5450
Office equipment
3200
3200
3200
3200
20000
20000
20000
20000
Rent expense
300000
300000
300000
480000
Office rent
240000
240000
240000
384000
Vaccination expense
100000
100000
100000
100000
Electricity bill
Depreciation
coop
1855650
1937650
2139850
2563850
-47094
271039.4
554732
720498
-4709
27104
-55473
72050
-51803
243935
499259
648448
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2013
2014
2015
2016
Cash
415347
702932
1245841
1937939
Accounts receivable
257700
309240
371088
445306
1295239
1012172
1616929
2383245
200,000.00
187000
174000
161000
-13000
-13000
-13000
-13000
Furniture
74500
69050
63600
58150
-5450
-5450
-5450
-5450
102000
98800
95600
92400
-3200
-3200
-3200
-3200
Coup
200000
180000
160000
140000
-20000
-20000
-20000
-20000
534,850.00
493200
451550
409900
1207897
1090025
2068479
2793145
Accounts payable
515400
318480
742176
890611
515400
318480
742176
890611
Total liability
515400
318480
742176
890611
Net Asset
692497
693692
1326303
1902534
1000000
1000000
1000000
1000000
243935
499459
648448
1192132
1691591
2340039
1510612
2433767
3230650
TK
Current assets
Fixed Asset
Machinery
Office equipment
Less Accumulated depreciation
Owners equity
Retained Earnings
1515400
20
2013
2104
2015
2016
-51803
243935
499259
648448
43650
43650
43650
43650
-51540
-61848
-74218
Increase in accounts
receivables
-8153
200000
Furniture
74500
21
196920
423696
39125
904757
617880
Coup
200000
equipment
102000
-576500
-576500
1000000
415347 287585
542909
692098
415347
702932
1245841
702932
1245841
1937939
500000
Venture capital
500000
Breakeven analysis
Payback
Period
Year
2012
Initial Outlay
-576500
Cash Flow
2013
2014
2015
2016
415347
(161153/702932)
1.52 Years
Ratio Analysis
Current Ratio
Working capital ratio
Net Profit Margin
Gross Profit Margin
2013
2014
2015
2016
2.5
3.2
2.2
2.7
779839
693692
2.01%
7%
13.50%
14.60%
70.02%
71%
73%
74%
874753 1492634
Days Sales
Outstanding
37days
37days
37days
37days
73days
73days
73days
73days
Return on asset
-4.20%
22.30%
24.10%
23.20%
Return on equity
-5.10%
19.60%
33.30%
39.30%
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Notes
Administration will rise be 30000
Selling expense will rise be 10%
In the year 2013 there will be 2 caretakers
Salary will rise by 10%
Rent will rise by 60% in 2016
Accounts receivable will be 10% of sales
Accounts payable will be 20%of sales
Layer chicks : 400*6*15*10=360000 first 6 months
after 6 months sell 400*150= 60000
800*12*33
Cost of food:
73644
15000
5450
24
3200
20000
43650
20000*12 (office)
Conclusion
Prevention is better than the cure. So instead of curing the diseases caused by eating
unhygienic things its better to eat healthy meal. Organic poultry farms provide people with
healthy chicken which is tastier and beneficial for health. We hope that our organic poultry
farm will be widely accepted by the people of Bangladesh. We have tried our best to create a
perfect business plan for this new idea and we hope for the best.
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Reference:
1. http://www.bigdutchman.de/en/poultry-production/products/poultrygrowing.html?gclid=CPPLkK2prrkCFWJS4godzEcAhA
2. http://www.ehow.com/how_5758805_start-organic-chicken-farm.html
3. http://www.livestrong.com/article/178321-what-is-organic-chicken/
4. http://www.ausagservices.com.au/medicator.html
5. http://www.slideshare.net/drsreenathds/organic-poultry-farming
6. http://www1.extension.umn.edu/food/small-farms/livestock/poultry/backyard-chickenbasics/
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