dhaka - baker's dream

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PHOENIX HOUSE

BY: BAKER’S DREAM

Md. Asadul Islam Ai.shuvodumkt16@gmail .com Md. NurBillah [email protected]

Md. AlauddinTarek [email protected] Md. SahadatHossain [email protected]

Phoenix House BAKER’S DREAM University of Dhaka

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About us

We are phoenix house to assure healthy employment opportunity for disabled people

through involving them into environment friendly paper made bag production process.

Disable people work particularly on adjoining the paper to make the bag.

We engage street child as our primary supplier and in return we give them food, shelter.

Our investors just get back their investment rather dividend and after investors get their

investment back, we will go for the further expansion of our business to solve the other

social problems regarding the pattern of type-1 social business. We have destiny to be a

global brand representing the disadvantage people’s contribution to the world economy.

Mission: Creating employment opportunity for disadvantaged people

Vision: Vanishing poverty even from the encyclopedia

Objectives:

1. Ensure better working condition and hygiene environment;

2. Ensuring product with fair price;

3. Develop environment friendly production plant and achieve environment

sustainability;

4. Remove illiteracy by establishing night school;

5. Develop global partnership through foreign trade and make our product as strong

brand;

Key employees:

Disable people on the manufacturing process.


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Type of disable people whom we employ:

1. Dumb;

2. Lame;

3. Mock;

Company Profile

Basic Information

Company Name: Phoenix House

Business Type: Recycler and Manufacturer

Product/Service

(We Sell): Shopping bag, Sweet box, Shoe box,

Product/Service

(We Buy): Used paper as raw materials

Registered Address: 3rd floor, 27/32, Dhanmondi, Dhaka

Brands: Phoenix House

Number of Employees: Around 200

Company Website URL: http://www.phoenixhouse.com

Ownership & Capital

Year Established: 2012

Registered Capital: US$ 37500 (3 million BDT)

Ownership Type: Social Business

Legal Representative/Business

Owner:

Md. NurBillah

Md. SahadatHossain

Md. AlauddinTarek

Md. Asadul Islam

http://www.phoenixhouse.com/


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Trade & Market

Main Markets: Home country

Main Customers: Clothing and Shoe Industry, Food Chains.

Total Annual Sales

Volume: Us $ 1- 2 million

Export Percentage: Currently not

Factory Information

Factory Size: 6000-8,000 square meters

Factory Location: Narayangonj and Rayer Bazar, Bangladesh

QA/QC: In House

No. of Production Lines: 3

No. of R&D Staff: Less than 5 People

No. of QC Staff: 5 - 10 People

Management

Certification: ISO 9001:2012

Social problem addressed

As we are living in the ocean of problems, our product addresses many of those problems

such as

I. Disability

II. Hardcore poverty

III. Illiteracy

IV. Environment sustainability;

V. Global trade and partnership


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Disability in Bangladesh:

Bangladesh has 160 million people with disabilities representing almost !2.31% of

the total population. Number of disable people is a debatable issue. It varies

regarding its source such as

Protibondi kollansomiti…………………..7.8%

Action Aid Bangladesh………………….14.04%

World Health Organization……………….12.31%

Though the number of disable people is a debatable issue, it is sure that the number

is high and a major cause of poverty in Bangladesh.

In our product manufacturing process, disable people engage in recycle package

making (provide input in machine and later mostly in wrapping and making the

final product (woven bag). Under this process, we employ dumb, lame and mock

people. As most of the people are poor , by making employment opportunity ,our

business plan will remove hardcore poverty.

Street child are our raw materials suppliers. Not only we employ street child but

also make their primary education by establishing night in our factory inside.

Through recycling the used paper,

we save tree as means of environment sustainability. We destine our company will

be globalized after capturing the local market.

Five key factors to success

1. Managing and developing people: Though our workforce is disable people, we

will make sure productivity through efficient and effective way as we arrange

training program by highly expert trainer with friendly manner. Effective human

resource management is another motto. We will control our efficiency through

periodical controlling process (per month). We make sure healthy working

environment, safe drinking water, nutritious food, free checkup and initial

treatment. Thus all our effort is to manage and develop people.

2. Strategic focus: Paper made bag industry may be replaced by other product by

inventing new technology. So our strategic focus is on “product

modification”.


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3. Innovation: “Good better best, never let it rest, it is the motto of any successful

business. Our R&D department always searches for continuous innovation and

product development. We will focus on extending our product line in future.

4. Integration: Honesty, persistency and perseverance facilitate and fasten

succession. Our honest and hardworking managing and labor force make things

happen to be global brand.

5. Leadership: Obviously there will be participatory leadership. All disable people

can make comments and we will value al the comments, we ensure that their

counsel will be valuable by making them knowledgeable enough about business

and organization.


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Market Analysis

Target Market

We follow the B2B strategy. We set our target market based on our product. As we have three products, we

selected three sectors as our target market.

1. Shopping bag : We select the fabric and shoe selling outlet that use the shopping bag mainly.

2. Shoe Box : All the shoe industry in Bangladesh.

3. Sweet box : The entire sweet producing firm in Bangladesh.

Market Trend

Paper made bag is a growing industry. As polythene is banned and biodegrade paper is

environmental friendly, manufacturing branded product become more in faster growth

trend as a result people become brand conscious, manufacturer become aware about

manufacturing product and on buying and post buying packaging. Inventing new process

for modifying product to make more sustainable and longer lasting durable bag fosters its

market growth.

So it is sure that, in future, this sector will flourish more than today.

Competitors and competitive strategy

Paper bag making industry is flourishing day by day.. But weakness of this industry is that people know very

few about this industry. Following companies are engaged in paper bag making industries who are major

competitors.

1. Shovan paper shopping bag industry ltd.

2. Handiea

3. Almadina marketing system

4. Fazilat trade international

5. Kawsar and co.ltd

6. Expo plus

7. Gorgeous fashion

8. CEL


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9. Nafis international

10. . Some small business is also engaged in with low marketing tool and low quality.

Shovon shopping bag industry limited is the market leader of this industry. They hold 38% market

share.

Competitive advantage:

Every paper bag making company purchases paper as raw materials. But Phoenix House produces paper by

recycling after collecting raw materials directly from suppliers. It makes us price competitive.

Pricing Strategy and Promotional Strategy

Pricing Strategy:

We are following “diversified pricing strategy”. Reasons are:

1. Our number of product line is three;

2. We are much more “customized type” business organization;

3. To produce, we first collect order from our buyer. According to their order, we

produce and deliver the products. That’s why price may differ based on product

type;

Shovon 38%

Cel 28%

Expo plus 13%

Hendica 6%

Gorgeous fashion 5%

Al modina 6%

Others 4%

Market share


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Promotional Strategy:

Phoenix house is a business to business trading company because our buyers are also

businessman such as Bata, Bay emporium etc. Beside this we are social business firm, so

our promotional activities should also go for social objectives. Through our promotional

activities we will raise awareness about disabilities in Bangladesh. Our business motto will

be for disable people is “Disability is not a curse, so let’s make floor them”.

Phoenix house will follow the following marketing and promotional tools.

o Celebrating the disability day with corporate professionals to encourage them to

contribute for disable people. The program will be held in a convenient corporate

place. Experts and opinion leader will be also invited there for discussion and whole

program must take media coverage.

o Build a documentary about the sufferings of the disadvantage people and inform

about the initiative of Phoenix House for disable and street child intended to

encourage other people to do more for the disadvantage people.

o WE have developed a fan page in Facebook, a profile in Linked in, and Glass room to

reach the professional. Initially we purchase a Subdomain for performing our online

trading where buyer can make order and payment.

o We offer 2%disount for 50,000 or above pieces order. To reach new buyer, we

provide at least 20 pieces sample to every targeted buyer.

o During Eid and special occasion, we will provide extra quality product at same price

with eid greetings, sponsor for the special arrangement on that special occasion.

o During world environment day we will arrange a campaign in ‘TSC’ , Dhaka

University on sustainable lifestyle with the help of social activist group GREENVOY

to make people aware about using natural resources sustainably and to encourage

recycling as Phoenix House do.

o We provide free study materials , food, cloth in world children day among street

children

o We will help our buyer in decorating their outlet in decorating their outlet for free in

different occasion like Eid, Puja, 31st night, Pohelaboisakh and different sale session

like summer sale, winter sale etc.

o We also celebrate product exhibition day in different location in every two months,

prior to do this, we invite different potential buyers through invitation card on our

exhibition.


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Type of Social Business

Type 1 or Type 2

We follow the pattern of type -1 of social business. Initially we invest 30 lakh and after our

investment back we go through expansion with our net profit.

Involvement of The corporate partners

Our corporate partners are BATA, HSBC, BAT, BAY EMPORIUM, GALLERY APEX, PRIDE

GROUP, GRAMEEN CHECK etc. Our corporate partners also work for disability problem in

Bangladesh as we have encouraged them greatly. HSBC will facilitate us in fund raising

process and in export trading. BAT will also assist us environmental campaign, children day

campaign through sponsor sharing.


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Source of initial funding

Investors:

1. Team member( Entrepreneurs) 4*50,000 2,00,000/=

2. CSR funds: 20,00,000/=

a. BAT 10,00,000/=

b. HSBC 5,00,000/=

c. BRAC 5,00,000/=

Loans from financial institution 8,00,000/=

Who are the investors?

Entrepreneurs are the investors of Phoenix House Named

1. Md. Asadul Islam

2. Md. SahadatHossain

3. Md. AlauddinTarek

4. Md. NurBillah

Others investors are

a. BAT

b. HSBC

c. BRAC


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Product and services

Product service design Process

Boiling the waste

paper in water

with alan and

costic soda

Raw material for

new paper

Wastage

Roll up and

cutting machine

Wrapping paper

Shopping bag

Sweet box,

carton, shoe box

Printing machine

Making the final

output with gum

and supplies by

disable people


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Range of product to be offered

1. Shopping bags

2. Sweet boxes

3. Shoe boxes

How does our Product address social Problem?

Our product materials are recycled paper. World is concerned about environmental

sustainability. Our product is environmentally sustainable product. Disabilities is another

burning issue in today’s world

Because 7% of the world population is disable. Maximum disable people are suffered from

hardcore poverty as they do not have any employment opportunity and neglected by the

society. It is breaking news for disable people are that our product makes huge

employment opportunity for disable people what is really a rare a case. Another important

factor is that our product is biodegradable. In collecting raw materials we employ street

child, fromthe profit of our product we also make sure the minimum educational support

and provide primary education. By this our product solves the problem of street children

significantly. So it is an environment friendly product. So in brief our product identify

following social problems:

1. Disability problem

2. Environmental sustainability

3. Environmental pollution

4. Hardcore Poverty

5. Street children

6. Illiteracy


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Business Structure

Operational Model

Collection of raw materials

Final product

processing

Store houseCustomer(Business

organization)

processingrecyclingFinal

processing


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Company Structure

Production Manager

Financial manager

Human Resource manager

Marketing manager

Supply manager

Operation manager

Supervisor 2

Supervisor 1

Assistant supply manager

Accountant

CEO


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Three Major Challenges

Challenge 1:

Making established brand as our regular buyer, switching themselves from current provider to us.

Prior to production, we have already managed them and make contract with Bata and Banaful.

Challenge 2:

Operate the business on low profit margin. Really it is hard task. Through gaining economies of scale,

we will make it happen.

Challenge 3:

Continuous supplies of raw materials. By implementing our contingency plan, we ensure continuous

supply of raw materials.


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SWOT analysis

Strengths Weakness

1. Quality product at low price

2. Cheap labor cost

3. Cheap cost of raw materials

4. Efficient manufacturing process

5. Continuous innovation

1. Low experience

2. Employee need to be trained

3. Budget limit

4. Backdated technology

5. Start up cash drain

Opportunity Threats

1. Less competitive market

2. Low marketing cost

3. Support from the social activist

group

4. Easier business expansion

5. Environment friendly

6. Export opportunity

1. Child labor

2. Social organization can protest

3. Upcoming competitors

4. Technological innovation

5. Loss of trained staff


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Contingency Plan

We have some contingency plan as we will face emergency situation such as unsought demand, employee

training, technological advancement, scarce of raw materials, loss of trained staff.

Our plans are:

1. Suppliers certainty:

University hall(newspaper)

Exam paper from school, college and university

Residence

2. Face unsought demand:

Effective market survey

Collecting order for unsought time earlier like eid, puja and pohelaboisakh etc.

Employee outsourcing

3. Trained new employees:

Develop training school

Quarterly training program for existing employee

4. Employee scarcity:

Tie-up with the NGO’s

Look for alternative workforce

5. Adjusting with new technology:

Making the employee more technologically updated through effective training program.


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Financial Forecast


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Costing

Break even analysis

N.B:Left numbers indicate months.


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Phoenix House achieves its Breakeven point in 1st week of 13th

month.1046000 is approximate to 1046115, that’s why we estimate

that.

Payback period

Our payback period is 26 months.


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Social Impact Analysis

Social return on investment

Social Impact analysis:

Reduce dependency on others;

Contribution to GDP;

Participating on family income;

Enhance the standard of living;

Solving the street children problem gradually;

Ensuring education of all class of people;

Ensuring the environmental sustainability through recycling process and reduce the deforestation

for paper production;

Ensuring better life for street child through shelter, food, education etc.

Social Impact per Beneficiaries

Every disable people and street children are the major beneficiaries of our business.

Social Impact on per disable people:

o Self-dependent

o Overcome poverty

o Enhance social status

o Considered as potential workforce

o Become an active citizen

o Gain food and shelter

o Their children might have education and other basic needs.


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Fulfilling the 7principles of & principles of Social Business

Yes, our business fulfills the 7 principles of social business.

1. Our business eradicate extreme poverty and hunger through generating

employment opportunity which is the 1st MDG

We also cover other 3 MDG by ensuring primary education for street

children, ensure environment sustainability through recycling,and develop a

global partnership by expanding our business globally.

2. By employing disable people in our business, disable people achieve financial

and economic sustainability.

3. 3rd and 4th principle is about type -1 pattern of social business, we follow it.

4. We don’t give any dividend to our investors. Just they get back their

investment amount.

5. Our company is environmentally conscious we do have a good waste

management program, we sell it and we recycle it.

6. We ensure 3000 BDT wage with better working condition and hygiene

working environment. Workforce have to work 9am-5pm(8 hours) a day.

Along with their salary they will get bonus on special occasion such as Eid

,puja etc. Later on we ensure day care center for employee’s child.

7. We are working for solving a severe problem which makes sense good, self-

satisfactory job. We fell proud to do something for the disadvantaged people.


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Long Term business strategy and implementation

Primarily our goal is to cover the central city of Dhaka. After achieving it we will go for

cover the whole country, we will try to reach every potential buyer. To create more

employment opportunity, we will build our production plant in every divisional district

after reaching international buyer to export in 2014. We will build our divisional

production plant by 2018. We have a long term plan for street children. So, our next SBU

will be stationery products. By this portfolio we will ensure study materials for poor

children at cheap rate. We plan it for in 2014. After setting up divisional production plant,

we will set up our industry in South Sudan, Uganda, Kenya and Haiti.

2012

covering the central area of Dhaka

2012-2014 Cover the whole country(Buyer)

2014 -2018

cover 64 (Production plant of disable people)

2014 Starting Export of Paper Bag Expanding Business Portfolio Statonaries

2019 Production Plant

Hyeti

Uganda

Kenya

South sudan

dhaka - baker's dream

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