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 BAHRIA UNIVERSITY
MANAGEMENT SCIENCES

ENTREPRENEURSHIP PROJECT

” MR: LODHI”

Thanks to:

Ma’am Ayesha Zaidi

SUBMITTED BY:

Danish Sultan
+92 312 511 00 56

mrk56@live.com

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Preface

When starting this project I thought that it would be just like a regular project
but the experience was outstanding. There were many new challenges and
the learning experience was magnificent.

When the project was started there were many options of entrepreneurs who
we can approach easily using our recourses, in fact father of a one of our
group member is a well known entrepreneur in the field of pharmacy but we
were in search of a an entrepreneur who started from nothing and using this
mind and devotion has became famous.

Not only fame but we were looking for something new and innovative that
the entrepreneur has introduced in the market which didn’t existed before.
One can say a classic example of guerilla marketing plan (low budget,
unconventional and creative).

At last we found a person with and outstanding business and we prepared

our questioners and prepared for the interview but the only problem was
that we had never seen the entrepreneur and knew a little about the
personality, and we had no contacts with him.

As Ma’am Ayesha told that I must use layman terms so that if there is any
lack of education or knowledge it could be removed and clear
communication can be made. For that purpose I made the entire
questionnaire in Urdu and re-prepared for the interview. I issued a letter from
the HOD office addressed to the entrepreneur to cooperate with us in the
interview section.

At last on May 21, 2010 we approached the entrepreneur through the

contact number displayed in the advertisements and presented the letter
and the university cards.

It turned out that Mr.: Lodhi was not only an outstanding entrepreneur but
also a well educated man and a hospitable host. He welcomed us whole
heartedly and gave us his valuable time and gave us a food for thought. The
interview lasted for 45 minutes after that we had more than 2 hours of
discussion on the current business situation in Pakistan, and we became
good associations.

The question were asked according to the questionnaire, and the answers
presented by Mr:Lodhi are presented in this report as they were answered.

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The things which made this business so outstanding are present on next
page.

2 3 4 5

1. Pakistani Traditional Foods+ Tandor+ Catering

2. Fast Food+ Ice-cream parlor

3. Tea+ green tea+ pink tea

4. Refreshment Center (chat+ somosa+

pakora etc.)

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 5. Juice and milkshake centre

6. Family dining hall

7. Hall for parties

8. Offices

THE ENTREPRENEUR
9. Mobile boosters

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Entrepreneur

Sultan Mehmood Khan Lodhi

Industry

Food

Business

Lodhi Foods

Location

Adyala Road, Rawalpindi

Nature of Business

Sole proprietorship

Education

B.com

Other Qualifications

Diploma in Electronics

Job Experience

Railway Electric Supervisor

Initial Business

General Shopping Store

Year of Commencement of Business

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 1986

Initial Financing

Pak Rs: 200,000

Difficulties in Financing

Sources make everything possible.

Source of Financing

Self Financing

Roll model

Father (A big framed Picture is present in the office)

Vision

‘ap ki kidmadmat, ap ka ahtram, meari ashia, munasib dam’

(Urdu for: your service, your respect, quality products at reasonable price)

Change in the Business

Converted from general store to food industry.

Reason for Changing the Business industry

In the departmental store there are countless items

demanded, and it was impossible to provide all the
demanded products in a small store.

Change in the Vision

No (Vision remained the same).

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Preliminary Food Business

Refreshment center

Business locality

Lodhi Tower

Number of Employees

34

Personal Interests

At this stage none other than the Business

Food Business Expansion

Refreshment Center+ Juice and Milkshake Center+

Fast Food Center+ Ice-cream parlor+ (Desi)
Traditional Pakistani Food Restaurant + Catering
Services+ Tandor (under-ground oven to make
traditional Pakistani bread known as Nan/Roti/Kulcha
etc.)

Other incomes from the Business

Rental Party Hall and Rent from Mobile Companies

(for placing the boosters on the roof of the tower)

Customer Demand

Depends upon superior product quality

Budgeting Process

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 After such long experience, budgets and allocation of
the resources are done on daily bases.

Monthly expenses

Pak Rs: 150,000 to 200,000

Reason for Choosing the Adyala Road as the Location

Located near the residence of the entrepreneur

and Development of the local area.

Strengths

Employees and Sometimes customers

Weaknesses

Minors, nothing stands as a wall if you are motivated towards success.

Opportunities

None

Threats

There are many government organizations but I don’t

like to name them and sometimes Negative
customers.

Marketing

Television commercials +Banners +Broachers

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 Any Risk in the Business

As there is a lot of cash in circulation there are

some theft incidence and one armed robbery.

Time period involved (from Good to Great)

24 years

Inventory Management

90% of inventory is directly bought in business

from different suppliers (mostly perishable
goods)

10% of the inventory is brought from whole

sale markets

Promotion Schemes

Many marketing system are implemented time

to time.

Last month, in the Business anniversary

celebration we operated at the Break-even
(zero profit, no profit/ no loss), a scheme of buy
5 and get 1 free is implemented.

Government support

Not at all (making expectations from other in

your business is not acceptable).

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Facing Liabilities

No huge amounts of liabilities are involved,

only in case of shortage in account short term
borrowing is utilized which and are paid on
daily bases. (Bank Al-Falah)

Reason for triumph in the market

Best standards of Quality

Innovation

Availability of all food segments of country, under one roof.

Business Constraints

Parking Area problem

Affiliation with any social/ local organization

PML (political party)

Stood in the elections of 2009 as a candidate

Dislikes about your business/ industry

None

Likes about your business/ industry

Customer satisfaction by demand fulfillment

Future plans

Expansion plans for business by opening new branches

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What is the success story of Mr: Sultan Lodhi? A man who started
from a small general store and now sitting in an air-conditioned
luxury office in a multi-story building?

This is a long journey of difficulties and perseverance. Along with the

education I also learned different skills and got a government job in the
Pakistan Railway. After realizing that I can achieve more by becoming an
entrepreneur I left the job and enter the business field. Initially I stated with
general store but it was very disappointing for me when a customer
purchased more than 50 items and there were 2 items that were it present in
the store, because there is countless number of products and it is not easy to
fulfill each and every demand. At this time I realized that no matter how
much you would invest in this business of general store still there are going
to be some products that the customer will demand and I will not be able to
supply.

With this feeling I entered into the food industry and gradually converted my
general store business into a refreshment center, I didn’t make any further
investment. The concept that made me left the general store business
became my source of inspiration of the new business enterprise. I developed
the food business in such a way that there are all the segments of food that
are popular and demanded in Pakistan and according to my knowledge there
is no other place in the entire region where you can buy a from a somosa
(Pakistani Snack food) of Rs: 5 to a mutton karhai (Pakistan Traditional food)
of Rs: 600 or from a zinger burger to dage (a big vessel use to cook food for
at least 60 people) under one roof, owned by one man. In these so many
years there is not even a single time I have came across such a situation that
I am not able to fulfill the demand of my customers.

Hard work, loyalty and determination are the name of the steps which has
raised me from a small general store to the position where I am sitting now.

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With your initial investment did you ever expected to achieve such
high level of business?

It is human intension to think ahead about the future and success. I’m also a
human and have same intentions; I was sure about my success as I worked
hard but not about the time period.

How do you manage multi-segments of your business?

Everything must be planned and executed in the same manner. There are
separate cash counters for each food segment to record each and every
business transaction (income and expenses) in the ledger of the related
segment. I manage the overall business and my sons act as supervisors to
maintain the business.

Any effects of the political and economical instability on your

business?

Indeed there is a lot effect of the present instable situation on the business;
we have to face difficulties in maintaining the running (working) capital,
sales graphs have moved down and as we are in the food industry so there is
a lot of food wasted (as it is perishable).

How do you utilize profits/surplus? Employees Bonuses or Business

expansion?

For me employees have always been the priority as they are the back-bone
of the business, but employee’s cash bonus is not the only incentive. There
are other incentives given to the employees, at present business expansion
is more important for the business.

What are the Competitive advantages over the competitors and

what are the core competences giving that advantage?

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In my opinion ‘everybody operating in the market thinks of themselves not
just good but the best’ having some advantage over the competitors but the
ultimate decision is in the hand of the customer to decide who is best.

Do you consider your customer as your capital?

No doubt, customer are the business; in the previous days only cash was
considered as capital but in the present era customers and employees have
become the part of the capital.

How do you utilize the suggestions of customers to develop your

business?

Although I am not physically present all the time but my personal cell
number is displayed to each and every customer and I take direct complains
and suggestions from the customers to utilize in the business development
and make changes accordingly.

Have you ever informed/ educate your employees about your vision?

As I have already told you that I consider my employees as the back bone of
the business so, on 15th of every moth there is a meeting in which all the
employees participate and discuss the issues, I am so open to the employees
that all the earnings and the expenses of the business are overtly put in front
of the employees. This meeting has created a relationship of trust between
the employee and the employer. I also avail this opportunity to discuss my
thinking about the business (including the vision and goals) with the
employees.

In your point of view what will be your primary objective? Profit or

vision?

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That is an interesting question, both are necessary. I would say that my first
obligation and priority would be by business, if following my vision is more
essential for the business than I would follow my vision and if profits are
required than steps must be taken accordingly.

Any suggestion for the new entrepreneurs from your expertise and
experience?

Anybody thinking that he/she could just jump into the food industry and earn
profits than they must reconsider. If you have the ability to bear loss for at
least 6 months than you have chances to enter into the business because it
takes some time to earn your goodwill and to mark your presence in the
market. If you are persistence and loyal to your business only than you can
be at some recognizable place.

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