Full & final report

Entrepreneurship & Business Project Development
Course Code: F--306

EXECUTIVE SUMMARY

Bangladesh in one of the least developed countries in the world. In such a country like
ours where people strive to maintain a minimum living standard, the price of fuel is
mounting. Present government of the Bangladesh is now in a great challenging
position for the regular increase in the power and fuel price. It is fully dependent on
the imported power and fuel to meet the ever increasing demand of its citizen. As a
result, Bangladesh government is spending millions everyday as subsidy in the
petroleum sector. In search of a way to help the government in these situations
whether through a giant or a small initiative, we the business students of University of
Dhaka came up with a new idea to start a medium sized (in capital) fuel business in
the petroleum industry. We have named our business “Green Energy” because we will
be both generating the fuel and making it available to people in an easy way. We are
dealing with the sole product of our business named “bio-fuel” generated from
renewable sources like sea algae. Fuel generated from any nature friendly source
means that it will emit lower amount of hazardous particles in the environment, will
be low-priced, good for the engines and will definitely provide a better mileage than
conventional fuel which is endangering our lives and also the next generation. In that
sense, we call our fuel as a green fuel also. Our product bio-fuel can bring
revolutionary change in the power and fuel industry of Bangladesh, as a new product.
At the same time it will be less costly and environment friendly energy. Our product
analysis discloses that it will be a perfect product in the context of our country.Our
business is Bangladesh based and we are targeting only consumers such as
manufacturing organizations, private car owners, public transports, necessary goods
carrier and also the agricultural sector in our country. The marketing plan specifies
that it can be possible to target potential customers and to distribute our product to
them. So, in near future, we want to see ourselves as one of the promising businesses
of bio-fuel in the petroleum sector of Bangladesh. We are planning for being a private

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limited company and the possible time to start the business is 1st May, 2014. Initially,
we will need 11 office employees and 30 factory workers later as our production
capacity will increase, the number of workers will increase. Initially we will invest
10,000,000 taka in our business. 60% of this investment will be collected as financial
leverage (debt) and remaining 40% will equity capital. We will invest 6,500,000 taka
in fixed asset;2,800,000 taka in the initial current asset and the remaining 700,000
taka as startup cost. From the financial plan, we are suggested that it will be a
profitable company in the future. At the end, we want to conclude that our bio-fuel is
able to save subsidy of Bangladesh government in petroleum sector and increase the
purchasing power of general mass indirectly by reducing the transportation cost of
daily necessary goods.

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Brief Description of the
Business

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Brief Description of the Business

Name of the Business:Green Energy Pvt. Ltd.
Nature of Business:Green Energy Pvt. Ltd. is an Algae Bio-fuel manufacturing company.
Sector/ Industry:Power and Fuel Industry.
Objectives:The objectives of our business are as follows:

I. Habituating people to use an alternative source of Bio-fuel from Algae.

II. Serving the country with a low priced fuel.

III. Rescuing the world and our country from the severe fuel crisis.

IV. Improving the economy of our country by creating a new dimension for employment
opportunity and reducing the inflation rate.
V.Developing the new fuel industry in our country to keep pace with the modern developed
country and properly utilizing our ample algae resources.

Type of Company:Private limited Company.

Core concept of the Business:
The energy crisis that hit the world in the recent decades has triggered off the race for
invention of effective as well as cheap bio-fuels. As we know, Bangladesh is a developing
country and it is also not out of this severe energy crisis. Present government of the
Bangladesh is now in a great challenging position for the regular increase in the power and
fuel price. It is fully dependent on the imported power and fuel to meet the ever increasing
demand of its citizen. Lack of technology and sufficient fund to use our natural resource
properly, unawareness and less eagerness to use alternative energy sources, higher cost of
using the solar energy encourage us to participate in the race for the invention and
utilization of the cheap and effective Bio-fuels from the Algae with the developed county
over the world. Algae petroleum is one of the 3rd generation bio-fuel that has been derived
from algae. The concept of algae culture or algae farming has been derived as a result, and
many forms of algae fuels like cooking oil, biodiesel, bio-ethanol, bio-gasoline, etc. are in the
process of development. Algae are one of the best examples of putting eco-friendly
resources to use, as none of the products derived from algae are considered to be

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pollutants. In many industries, algae bioreactors are used to curb the emission of carbon and
carbon compounds. Nowadays many countries are giving emphasis to produce bio-fuel from
algae at a commercial level. A recent research in the New Yorkcity shows that the innovative
process of producing Algae Bio-fuel is at least 40 percent cheaper than that of others now
being used. Supply will not be a problem: There is a limitless amount of algae growing in
oceans, lakes, and rivers, throughout the world. That’s why we decide to make our business
plan on the production and commercialization of the Algae bio-fuel.

Total Investment

Investment Fixed Assets Current Start-up Total
Assets cost
10,000,000 6,500,000 2,800,000 700,000 10,000,000

Loan and Equity

loan Equity Total
6,000,000 4,000,000 10,000,000

Potential Market

Local Market International Market
During the first 3 years of our business of Our product has the potential for export
Algae Bio-fuel, we will target only in almost every country of the world
Dhaka metropolitan city to serve. Then because fuel crisis is a burning problem
we will target entire Bangladesh from all over the world. Although there is huge
district to district, as our production demand of our product but due to our
capacity, skill and competency will be small capacity at the beginning years of
increased by that time. We will sale our our company we can’t go for international
product through local dealers and factory market. But we have plan for global
sales will also be encouraged. expansion in the upcoming future.

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Description of the Product

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Description of the Product

The world energy demand is expected to rise 60% by 2030; oil consumption has increased by
20% since 1994, while the European Union import dependency has reached almost 54% of
its energy requirements in 2006. Land filling of bio waste is one of the major sources of
methane emissions. Additionally attention is being focused on the treatment of bio waste to
address difficulties in their direct utilization, cost-efficiency and its output product pollution.

Moreover, the need to focus on ‘non-food’ energy crops for the production of 2nd
generation bio-fuels and develop cost-efficient solutions has been revealed and underlined
in the recent report of the Food and Agriculture Organization. In fact, currently, the
production of biogas is principally carried out through anaerobic fermentation of (mixed)
cereal crops. So, one promising source of bio-fuels has been identified as marine algae
grown in large open ponds. The algae would be harvested and turned into a carbon neutral
fuel source.

Product

An alternative low-priced, environment friendly fuel named “algae-Fuel”. It will be produced
from sea algae. The existing large-scale natural sources are of algae are: bogs, marshes and
swamps - salt marshes and salt lakes. Micro-algae contain lipids and fatty acids as membrane
components, storage products, metabolites and sources of energy. Algae contain anything
between 2% and 40% of lipids/oils by weight.

Features of the product

It is a scientifically proven and renewable natural resource of bio-fuel. Normally, maximum
diesel engines do not require any modification to use bio fuel. So it will not face any problem
in that case. It can cover a huge market demand efficiently and economically. It will also
provide an acceptable margin for sellers and can still be cheaper for buyers of conventional
fuel. It will provide high safety and better mileage for car engines especially. Lastly, it will
stand in line with the need of a country like ours through reducing the transportation cost of
daily necessities ultimately lowering price of those goods.

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Comparative Advantages

It will be less expensive than “Normal Fuel”. Its production process is less costly and less
complicated. Moreover, it is very unique fuel for all types of engines. It is more environment
friendly product. Algae and aquatic biomass has the potential to provide a new range of
third generation bio-fuels, even including jet fuels. Their high oil and biomass yields,
widespread availability, absent (or very reduced) competition with agricultural land, high
quality and versatility of the by-products, their efficient use as a mean to capture CO2 and
their suitability for wastewater treatments and other industrial plants make algae and
aquatic biomass one of the most promising and attractive renewable sources for a fully
sustainable and low-carbon economy portfolio.

Producing biodiesel from algae has been touted as the most efficient way to make biodiesel
fuel. The main advantages of deriving biodiesel from algae oil include:

Rapid growth rates,
A high per-acre yield (7 to 31 times greater than the next best crop – palm oil),
Certain species of algae can be harvested daily,
Algae bio-fuel contains no sulphur,
Algae bio-fuel is non-toxic,
Algae bio-fuel is highly bio-degradable, and
Algae consume carbon dioxide as they grow, so they could be used to capture
CO2 from power stations and other industrial plant that would otherwise go into
the atmosphere.

Comparative disadvantages

Normal Fuel is more familiar to the consumers than algae-Fuel. Acceptance of this fuel may
take time. Its Viscosity may vary which needs more inspection during the production time. It
will be more costly than CNG in some extent which can bring a massive competition for our
product. Marketing or advertising of this new product is the most problematic than other
factors. It totally depends on the consumers’ view of acceptance. Another disadvantage is in
case of expanding the idea; it cost a lot in the research and development sector.

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Research and Development

Currently most research into efficient algal oil production is being done in the private sector
in some countries over the world but if predictions from small scale production experiments
bear out then using algae to produce biodiesel may be the only viable method by which to
produce enough automotive fuel to replace current world gasoline usage, according to U.S.
Department of Energy.

Research into algae for the mass-production of oil is mainly focused on micro-algae. The
preference towards micro-algae is due largely to its less complex structure, fast growth rate,
and high oil content. Some species of algae are ideally suited to biodiesel production due to
their high oil content – sometimes topping out near 50%. Some commercial interests into
large scale algal-cultivation systems are looking to tie in to existing infrastructures, such as
coal-fired power plants or sewage treatment facilities. This approach not only provides the
raw materials for the system, such as CO2 and nutrients; but it changes those wastes into
resources.

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Marketing Plan

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Marketing Plan

Analysis of Competitors

In the power and fuel industry of Bangladesh, all types of fuel are imported by Bangladesh
Petroleum Corporation. They are the sole distributor in Bangladesh in case of petroleum.
Bangladesh government gave all types of authority to handle petroleum product through
Bangladesh Petroleum Corporation ordinance 1976. Padma, Meghna and Jamuna ltd are
three subsidiary companies of BPC who distribute fuel all over the country on behalf of
Petroleum Corporation. Other multinational companies like Shell, Chevron are mainly
working to produce Gas in our country. So, in that sense, we don’t have any direct
competitor in the market. We can consider the international company from which BPC is
importing fuel is our soul competitor. Beside that use of will also bring competition for our
product.

SL Competitor Position

1 Companies from which BPC is importing First
petroleum currently
2 CNG Second

Comparison of product with customer

Strength Weakness Opportunity Threat

Renewable More costly than Huge market Foreign
source of fuel. CNG Demand companies
can enter
Simple Less familiarity. Introduction into the
production Of a new source fuel. market. like

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process. Chevron,
Future govt. support. Shell
Green Energy Less costly
product. Immense
scope of
Engine competition
modification is
not necessary.

Ability to meet High price They can also supply After
huge demand their bio-fuel product introducing
Differ product eco-fuel
International Most familiar for different govt. may
Competitor fuel product engine not be
interested to
No specific import these
promotional product
activities for the
product

Ability to Engine Market acceptance. Price of gas
supply at a low modification is is gradually
price. necessary to use increasing.
Local Competitor it.
Can be used as an
Gas used to alternative of oil in
produce it is not different purposes.
unlimited

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Pricing Strategy

The pricing strategy for our product will be based on the cost. That means we shall use the
‘cost plus pricing method‟ to price our product Algae-Fuel. It must be lower than the
existing fuel market price.

year Product category price(TK)

2013-14 Algae Bio-Fuel 43





Distribution StrategyDistribution Strategy:

We will sell our product to Bangladesh Petroleum Corporation, a sole distributor of
petroleum in Bangladesh. They will sell our product all over the country through different
filling stations. Besides this, we will sell some of our product through dealers and in our
factory as factory sales. For the first 3 years of our business we will distribute our algae fuel
only in the Dhaka Metropolitan area and we will try to expand our business in the whole
country with the pace of time advances. We are thinking to distribute our product in free of
cost to the different tourist organizations for the special promotional activities.

Promotional Strategy

Print Media: We will contact with the different newspaper and
magazines to make an Advertising Contract with them.

Television Media: We will make a contract with ad agencies to make
an advertisement showing different aspects of our product.

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Banners and Billboards: We will use our banners and billboards in
different busy highway for the publicity for our product beside that in
different filling stations, we also use our banners to provide knowledge
to the consumers about our product.

TAC (Tourist Awareness campaign): We will distribute our product free of
cost to different travel agency of our country. In return, they will use our banners
and stickers in their car. Through this way, we can do branding of our product to the
foreign people who will visit our country. In this way, our company will get
recognition all over the world.

Green Energy Forecasted Sales

(1% of yearly BPC Sales)
(BPC Yearly Sales are shown in the Appendix)

Year Quantity Unit Price Total taka

3,000,000 43 129,000,000
2014
3,000,000 43 129,000,000
2015
3,000,000 43 129,000,000
2016
4,500,000 45 202,500,000
2017
2018 4,500,000 45 202,500,000

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Projected Sales
Yearly projected sales 25000000

20000000
yearly
15000000 projected sales

10000000

50000000

0
1 2 3 4 5
Year

Figure 1: Yearly projected sales

Market Segmentation
As per the rule regarding petroleum in Bangladesh, Bangladesh Petroleum Corporation (BPC)
is the sole distributor of petroleum in Bangladesh. Companies exporting petroleum in our
country trade under BPC. We shall do the same. After extracting our fuel, we will go for
distribution through BPC. So the customers served by BPC are our customers also.

Farmers

Bangladesh being an agro based country needs a high level of irrigation
when cultivating the lands. To irrigate our lands, farmers use machines
which are operated by using diesel. This diesel is very costly to the
farmers and on the other hand pollutes our environment. For this
reason, we have decided to provide our bio-fuel to the farmers also to
operate their machines. The result we acquired from them is:

Characteristics:
The farmers of our country live below the poverty line. So, it is very obvious that
almost all of them are price conscious rather than considering quality. To know more
about the characteristics of the farmers, they were asked about whether they prefer
saving the environment over financial consideration. It led us to conclude that they
are also in a neutral state regarding such matter.

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Factors considered when buying:
According to the farmers, the fuel should be available to them through selling agents
because it is easier for the farmers to interact with the agents rather than going to
the filling stations. Another fact about the farmers that we came across through the
survey was that they want our fuel not just because of the low price, also because our
fuel comes from a renewable source.

Manufacturing organizations

Manufacturing organizations were surveyed because most of the organizations have
their own transport to distribute their products to the consumers. If they were
provided the low priced Green Energy fuel, it is obvious that the price of such
products will be lowered. The results are:

Characteristics:
Most of the organizations prefer the quality of the fuel, rather than considering the
price. They said that they are quality conscious to a great extent because they want
their car engines to be working smoother. Coming to the dilemma of choosing
between saving the environment and financial expenditure, most of them were
agreed to save the environment from dangerous particles emitting fuel.

When they were asked about how they want to avail our product, they expressed
their desire to get it from the filling stations which is another factor to them
whenever buying the fuel. They also concluded that other than the cost, the reason
to switch to bio-fuel was that it was saving our environment.

Public Transport

The last group of consumers who were surveyed by us for their valued opinion was
the public sector. Whatever they think of our algae-fuel was very important to us to
project the future of our business.

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Characteristics:
Most of them preferred a quality fuel for their engines, rather than focusing on the
price only. When they were asked to make judgment on the matter that saving our
environment is much more important than the financial expenditure, they were
totally agreed with us.

100% of the owners said that they want to take the fuel for their engines from
the filling stations nearby. The owners were considering a high mileage with
the fuel as a reason to switch to bio-fuel other than cost.

Marketing Budget

Items 2013-14 2014-15 2015-16 2016-17 2017-18

Promotion cost 900,000 900,000 750,000 750,000 720,000

Distribution cost 200,000 150,000 100,000 100,000 100,000

Total 1,100,000 1,050,000 850,000 850,000 820,000

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Implementation Plan

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Implementation Plan

To implement the plan, at first it is needed to register the business as a private limited
company under the company act. That will require at least 1 month. Then it will be
needed to apply for the loan to meet up capital expenditure. And at least 1 month and
15 days require fulfilling this activity. In the mean time, the required resources are
needed to be acquired for the proper start up of the business. And at least 1 month
and 15 days require rent a space for office. Besides these, 3 months are needed to
connect the utilities. For the recruitment of personnel it is required 2 months. For the
completion of other activities, at least 1 month is needed. This start up activities can
be described as following table:

Business Start-up Activities Time Cost

Business Plan Preparation 1 month 60,000

Registration 5 months 100,000

Application for loan 1 months and 15 days 40,000

Leased Land/Office rent 1 month and 15days 300,000

Connection Of Utilities 3 months 70,000

Recruitment 2 months 50,000

Others 1 month 80,000

Total 16months 700,000

Table: Business Start-up Activities and Cost

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Operational Plan

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Operational plan

Basic Production Process of Algae fuel

Step-1: Choosing the Right Algae

Our bio-fuel production will start with the choice of right algae from which we can produce
high quality bio-fuel. It is the first step in bio-fuel production.

General Aspects to Consider:

There are many aspects to consider when choosing the right algae for biodiesel production.
In order to achieve the highest possible production rate of oil, oil content has to be balanced
against growth kinetics. Furthermore there are many advantages in having a healthy species
of alga since the system will be less sensitive to variations in parameters like temperature,
pH and salinity. Size and oil composition are also important in order to achieve a simple
separation and post processing. Last but not least, it is important that the alga strain is well
known and that sufficient research and information exists.

Step-2: Choosing an Algae Strain
Algae with high oil content from the list in Micro- and Macro- Algae: Utility for industrial
applications by Anders S Carlsson et al 2007 (14) were investigated. When considering
important parameters it resulted in further evaluation of the following three algae:
Phaeodactylumtricornutum, Chlorella ProtothecoidesandBotryococcusbraunii. After a
conversation with the commercial company Algae Link the algae Nannochloropsissalinawas
also investigated.

B.brauniiis is one of the most known hydrocarbon producing algae. This fact that it’s well
known and thoroughly researched is one of its strengths. If an unknown alga strain is
chosen, expert knowledge and extensive research are required to produce necessary data
concerning oil composition and to properly dimension the equipment.
So, after this stage we select B. brauniialgae to produce bio-fuel.

Step-3: Algae grown for production

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We have to grow algae for our bio-fuel production. We will follow closed system to grow
algae.

Closed system
A method for growing algae is a vertical growth or closed loop production system. This
process actually came about as bio-fuel companies sought to produce algae quicker and
more efficiently than what was possible utilizing open pond growth. The closed photo
bioreactor system consists of a number of transparent reactors. The reactors are designed to
maximize the absorption of the incoming light and to minimize negative effects such as
oxygen oversaturation. And unlike the open pond method where algae are exposed to
contamination, the vertical growth method isolates algae from this concern.

Type of reactor
The preferred reactor will be the closed photo bioreactor, since the open ponds suffer from
contamination risks together with high evaporative losses of water and diffusion losses of
CO2. This means that the investment cost will be significantly higher, but also that the
separation step will be easier, due to dense cell cultures. Land area unsuitable for
agricultural activities are generally sparse on fresh water, why the loss of water should be
minimized, this supports the closed reactor. Of the different kinds of closed reactors,
tubular, flat and in polyethylene bags, the tubular reactor is chosen. The research on
polyethylene bags is not sufficient for the bags to be an alternative. The tubular reactor has
a better photo efficiency than the flat reactors, and will be the preferred choice.

Step-4: Extracting oil from algae

Once the algae are harvested, the lipids, or oils, are extracted from the walls of the algae
cells. There are a few different ways to extract the oil from algae. But we will use the mostly
use method Oil Press to extract oil from algae.

Oil press
This is the simplest and most popular method.
It can extract up to 75 percent of the oil from the algae being pressed.

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Oil press process
First the algae are ground into an algae paste using large milestones.
The algae paste generally stays under the stones for 30-40 minutes
After grinding, the algae paste is spread on fiber disks, which are stacked on top of
each other, then placed into the press. Traditionally the disks were made of hemp or
coconut fiber, but in modern times they are made of synthetic fibers which are
easier to clean and maintain.
These disks are then put on a hydraulic piston, forming a pile. Pressure is applied on
the disks, thus compacting the solid phase of the algae paste and percolating the
liquid phases (oil and vegetation water). The applied hydraulic pressure can go to
400 atm.
To facilitate separation of the liquid phases, water is run down the sides of the disks
to increase the speed of percolation. The liquids are then separated either by a
standard process of decantation or by means of a faster vertical centrifuge.

Step-5: Transesterification

Once the oil's extracted, it's refined using fatty acid chains in a process called
transesterification. Here, a catalyst such as sodium hydroxide is mixed in with an alcohol
such as methanol. This creates a biodiesel fuel combined with a glycerol. The mixture is
refined to remove the glycerol. The final product is algae biodiesel fuel.

Production capacity

For the 1st three years 3000,000 liters of bio-fuel will be produced at unit price of tk.43
making a total of tk. 129, 000,000. In the fourth and fifth year 4,500,000 liters of bio-fuel is
planning to be produced at unit price of tk.45 making a total of tk. 202,500,000. We will try
our level best to fulfill our production capacity planning. This planning is based on the
resources what we will need for our production. It is fully analyzed in Appendix 1.

Resource requirements

For initiating our business operations we will definitely need some resources including fixed
assets, current assets, and start-up costs.

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Fixed assets
Fixed assets are those assets which are tangible and must needed for our business which
cannot be converted to cash easily.

We need a patent for our bio-fuel which will cost tk.350,000
We need a machine for our production of bio-fuel which will cost tk. 2,050,000
Warehouse is must for a better inventory management which costs
tk.1,000,000
Our main business factory with storage facilities will cost tk.1,500,000
Vehicle is needed for better sales and marketing system will cost tk.800,000
Furniture needed for our administrative office will cost tk.200,000
Air cooler and computer needed for proper business management will cost
tk.200,000 respectively.
Furniture needed for factory arrangements will cost tk.200,000.
For proper management we will use computers that cost tk. 200,000.

So, Total cost of fixed assets will be approximately tk. 6,500,000.

Current assets

Current assets are all assets that a person can readily convert to cash to pay
outstanding debts and cover liabilities without having to sell fixed assets.

Raw material needed for bio-fuel production will cost tk.600000
Wages of the workers will show a total of tk.400000
Manufacturing overhead will cost tk.400000
Administrative expenses will cost tk.400000
The most significant part of our business, marketing segment will incur
expense of tk.10,00,000
Start-up costs
Every business incurs start-up costs at the beginning of their business which is not
avoidable. We make a list of the start-up activities of our business and their costs.

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At first the business plan preparation will cost tk.60,000
Legal registration of our business will cost tk.100,000
Application for a business loan costs tk.40,000
Land leased and Office rent will cost tk.300,000
Connection fee of utilities will cost tk.70,000
Beginning recruitment costs tk.50,000
Others will cost tk.80,000

Workforce Engaged in Production

Yearly direct and indirect wage for the first 3 years are:

Designation Number Salary/person Time Total

Factory 1 15,000 12 months 180,000
Manager
Chemist 2 15,000 12 months 360,000

Assistant. 2 10,000 12 months 240,000
Chemist
Direct labor 10 2,900 12 months 348,000
(permanent )
Indirect labor 3 975 12 months 34,750
(permanent )
Supervisor 1 3,500 12 months 42,000

Guard 2 2,500 12 months 60,000

Total 21 1,263,750

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Inventory Management

In our inventory, there will be two types of inventory. One is raw material and another one is
finished product that is Bio-Fuel. It will be our policy to complete our production fully within
a year that will help us to have zero wok-in-process inventories. In case raw material, we will
determine the order size by using Economic Order Quantity which will minimize the total
raw material cost (ordering cost, carrying cost) for our company. Timing of placing an order
will be determined by calculating the reorder point after considering the safety stock.

In case of finished goods, we will determine how much we should produce in each
production
Run on the basis of Economic Production Size that will help us to minimize the cost for
finished product.
For the purpose of inventory control, we will use ABC analysis. It means, we will divide our
inventory in three sections depending on their value. A category includes highest valued
inventories and it will be under tightest control. B category includes second highest valued
inventories and it will be under moderate control. C category includes inventory having
minimum value which will be under simple control.

The storage section or warehouse will be owned by the company. Our product is one kind of
fuel so we have high risk of fire. For security purposes, we will build our warehouse and
storage in such a way that will help to adjust the temperature for our product time to time.

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Organizational & Management
Plan

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Organizational and Management Plan

Organizational Structure

The organizational structure of Green Energy Pvt. Ltd is divided into 3 levels. Top level
management, mid-level and operational level are the three levels of management.

Top level management
Top level is responsible for strategic decision making. Mainly the board of directors and CEO
will be included in this stage. Their main purpose is to create the mission, vision for the
organization and long term goals for organization.

Mid-level management
Mid-level management is mainly responsible to implement the plan created by the top level.
All the departmental heads are included in this level like CFO, Head of the Human Resource
department etc. They are responsible for plan.

Operational Level
Operational level managers are the lowest level of the management hierarchy. They work
with the operational level employees and labors to implement the plan of mid-level which
will ultimately fulfill the goals of top management.

Goals set by the top management are in the strategic level. It is very important to interpret
those goals to all levels of employees. After understanding that they can realize what they
need to accomplish from their position to achieve the overall goal of the organization.

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Management Team

SI Name Designation Experience Qualification
1 Not Recruited Director, Finance 5 years Chartered Accountant
yet &Accounts minimum
2 Not Recruited Director, HR 5 Years MBA, Major in HRM
yet minimum
3 Not Recruited Director, Production 5 years MBA, CMA
yet minimum
4 Not Recruited Director, Marketing 5 years MBA, Major in
yet minimum Marketing

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Organogram

Top Management
(CEO)

Manager Manager Manager Manager
(Finance & Accounts) (Production) (HRM) (Marketing)

Treasurer Controller

Factory
Manager

Sales
Officer Officer Worker Officer Officer

Figure 2: The organogram of the organization

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Succession Plan
Green Energy is a private limited company. All of its shares are equally distributed among
the entrepreneurs. In the absence of these entrepreneurs, their selected persons will
continue the business on behalf of them. If shares are sold, new shareholders will run the
business. If any emergency arrives the company will be dismantled according to the
Company Act 1994.

Office Equipment

Fixed Assets Quantity Per Unit Cost Total Cost Depreciation

Furniture 150,000 5,250

Computer 5 40,000 200,000 5,000

Air cooler 4 50,000 200,000 5,000

Total 550,000 15,250

Salary of the Employee

For the first 3 year the salary will be same after that it will change.

SI Designation Number Salary per person Total Salary Yearly Salary

1 CEO 1 30,000 30,000 360,000

2 Manager 6 15,000 90,000 1,080,000

3 Officers 4 10,000 40,000 480,000
4 Clerk 2 5,000 10,000 120,000

5 Cleaner 2 2,500 5,000 60,000

Total 2,100,000

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Administrative Expenses

Items Amount
Salaries & Wages 3,363,750
Utilities expense 120,000
Office rent 110,000
Audit fee 75,000
Depreciation 417,750
Printing and stationary 50,000
Insurance 120,000
Recruitment and training 120,000
Research and development 300,000
Amortization of preliminary expenses 17,500

Convenience 80,000
Legal and other professional expenses 112,000
Total 47,66,000

Monitoring and Evaluation
Organization’s strategic goals will be determined by the top executives .Those goals will be
interpreted to each level of management and guidelines will be sat for every level like what
their responsibility is to fulfill the goals, how they can contribute from their own position to
add value. Every employee must be clear about their authority and responsibility in the
company. So, periodically their performance will be evaluated with the standard sat by the
top management for example whether they are contributing properly to attain the goals of
the organization or not. If there is any deviation, corrective action will be taken to increase
efficiency. Reward system will be implemented to appreciate employee for their good
performance.
For performance evaluation, we will divide our all segment as different centers. Like cost
center, profit center and investment center. Cost and profit center will be evaluated
depending on the periodical segment report and investment center will be evaluated
depending on the return on investment ratio and residual income.

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Corporate Social Responsibility
First and most important social activity of our business is to serve our society by providing
our high quality product with a minimum price.
By habituating people to use eco fuel, we will help to build a pollution free green
environment in our country. It will be a subconscious process of developing pollution free
environment.

Research and Development
Since, it is bio fuel manufacturing company, we need to do a lot of research and
development activities to improve the quality of our product and at the same time we need
to find out new renewable source of fuel. Our research and development works will focus on
the following areas:

Improving quality of the fuel.
More cost efficient way of production.
Finding new source from which more oil can be extracted.
Making more environment friendly product.

Training and Development
For continuous performance development, we will implement some training program in our
organization for the employees. Training program will focus on the skill development of the
employees, adaptability in difficult situation, innovative thinking development, ethical
learning

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Risk Assessment

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Risk Assessment

Risks Inherent to the Business

Businesses are not free of risk. A business without risk is impossible to conduct. Some risks
can be controlled and some cannot be. Our business of bio-fuel production from algae also
faces some risks. We have classified the risks mainly in two types. These are:

Unavoidable Risk
Avoidable Risk

Unavoidable Risk

Unavoidable risks are mainly natural calamities and change in weather. Some risks are
inherent in the type of the business, so these are unavoidable too. Some of these
unavoidable risks are discussed below:

Fire:
in our fuel production process many highly flammable materials are used.
Sometimes produced oil is stored in the factory for some time before distribution. If
the flammable materials are not kept in safe place or the produced oil is not stored
with adequate caution it may cause explosion or any other accident the result of
which will be very acute.

Temperature and sunlight:

We will mainly useBotryococcusbraunii algae in our oil production. A research on one strain
of this algae has found that it grows best at a temperature of 23°C, a light intensity
of 60 W/M², with a light period of 12 hours per day, and a salinity of 0.15 Molar
NaCl.In different seasons the temperature and sunlight may vary. It can create
problems in algae production and growth.

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Ways to reduce the risks

The risks to which our business is exposed are unavoidable due to their nature. Still some
steps can be taken to mitigate those risks. They are as follows:
Fire and property insurance policy will be taken.
There will be availability of fire extinguisher in the factory premises.
Employees will be properly trained to handle any hazardous uncertain event.
Fire safety regulations will be strictly maintained.
Highly flammable materials will be kept in a safe place.
There will be safe arrangement for oil storage.
There will be facility of artificial temperature and light in case of unsuitable weather.

Avoidable risk

There are many risk factors inherent in the business, which are avoidable. The risk factors,
related risks and ways to minimize risks are shown in a table format below:

Risk factors Risk Ways to
minimize risk
The process of producing algae fuel 1. Customer oriented marketing.
is quite easy and the cost of the fuel
will be cheaper than much other 2. Making unique contract with BPC
Competitors existing oil, so we may face the risk so that new entrance in this sector
of new entrance. will be difficult and expensive.

If the production cost of other 1. Creating an eco-friendly
different biodiesels gets lower their appearance of algae fuel to people.
Demand Risk cost will be lower for the consumers 2. Giving emphasis on less emission
too. It can shiver the demand of of CO₂ by algae fuel.
algae fuel.

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Operational Risk The equipment may go out of The machineries are locally made
service and easy to repair.
This may affect production.

Socio- Algae fuel is a new product in Focusing on lower cost, safe
psychological people’s lifestyle so it may cause environment and high mileage
risks setback. during promotion.

Contingency plans
Considering future risk of more competitors entering in this business sector we have made
some plans which can increase our production capacity in a good figure. In our current
production process we use oil press method as it is easy and traditional. Low cost of
production process is also one main reason. But after 2 or 3 years when our company will be
in a good financial position we can go for more efficient methods. These methods will surely
be costlier than the oil press method but their production will be larger also. Using oil press
method we can extract maximum 75% oil. The alternative methods can extract up to 90% oil
even 100% also. Besides the financial problem the labor problem is one of the main reasons
of our not using these efficient methods at the beginning of our business. It is not possible
for us to get a large manpower at the very first beginning. But after few years the success of
the company will lead to the necessary man power very easily.

Here we have two alternative methods of oil pressing. These are discussed briefly below:

Hexane solvent method

This process extracts up to 95 percent of oil from algae.
First, the press squeezes out the oil.

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Then, leftover algae is mixed with hexane, filtered and cleaned so there's no
chemical left in the oil.

Supercritical fluids methods
It extracts up to 100 percent of the oil from algae.
Carbon dioxide acts as the supercritical fluid -- when a substance is pressurized
and heated to change its composition into a liquid as well as a gas.
At this point, carbon dioxide is mixed with the algae. When they're combined,
the carbon dioxide turns the algae completely into oil. The additional equipment
and work make this method a less popular option.

So these methods should always be in our consideration for long term risk assessment. We
cannot stop new entrance fully. If new companies come we can maintain our share in the
fuel market by using any of these methods, because it will be difficult for the new companies
to use these methods at the beginning of their business.

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SWOT Analysis

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SWOT Analysis

Strengths:

1. Algae produce cellular oils that can be refined into different bio-fuels, including jet
and diesel fuels that can be used without engine modifications.
2. Bio-fuels are organic sources of energy that replenish naturally and quickly.
3. Algae consume large amounts of carbon dioxide, a major greenhouse gas and
contributor to Global warming.
4. Algae based bio-fuel being an oxygenated fuel (enriched with oxygen), biodiesel
from algae makes fuel combustion more complete and results in carbon emission
much lower than conventional diesel.
5. Algae as bio-fuel can be used on all aircraft and engines don't need to be modified
for this usages.
6. Lower cost & Easy production process than other fuels.
7. Import dependency minimization.
8. Sound marketing & Distribution plan.
9. Lower cost of labor.
10. Raw materials are local & available in our country.
11. Non toxic& highly bio degradable fuel.
12. Eco friendly fuel production.

Weaknesses:

1. The algae bio-fuel production is highly dependent on availability of suitable climatic
condition, substantial quantity of water, flat land, and carbon dioxide feed --all in
one location
2. Whether people will use this fuel is a question.
3. Continuance of Supply of high growth algae.
4. Behavioral changes needed to adapt using new form of Fuel.
5. Lack of Government support, needed to succeed the venture.

Opportunities:

1. Some strains are capable of producing at least 10 times as much fuel per acre than
corn or soybeans.

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2. The greatest advantage of algae for producing biodiesel over other plants is that this
plant is not used for any food products. This gives benefit of lower price volatility to
algae .
3. Demand of fuel is increasing day by day.
4. Expansion is easy and effective in this venture.
5. Using this fuel also serves social responsibility.
6. International Fuel crisis will have less effect in our country.
7. After meeting local demand we can export the excess Fuel in international market.
8. Ample opportunity of research and development.
9. We can also cultivate our raw materials in future.
10. High price of other fuels will aggravate the need of algae fuel.

Threats:

1. Competitors are heavyweights in our country.
2. The environmental effects of extracting oil from algae are also quite controversial
topic because some environmentalists do not think they are environmentally
friendly source of energy
3. Proper funding is necessary.
4. Level of acceptance by People is not certain.
5. Huge amounts of water needed to produce enough algae in future.
6. If improperly managed it can contaminate water.
7. Threat from CNG as a substitute.
8. Several pressure groups can create problems in implementing this venture.

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Financial Plan

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Financial Plan

1. Fixed Assets

Items Amount
Patent 350,000

Machine 2,050,000

Warehouse 1,000,000

Factory Building with storage facilities 1,500,000

Vehicle 800,000
Furniture(Office) 150,000

Air cooler 200,000
Furniture(Factory) 250,000

Computer 200,000
Total invest in fixed assets 6,500,000

2. Current Assets

Items Amount
Raw material 600,000
Wages 400,000
Manufacturing overhead 400,000
Administrative expenses 400,000
Marketing expenses 1,000,000
Total 2,800,000

3. Start-up costsTotal start-up costs is 700,000

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.4. Total investmentFixed assets +Current assets+ Start-up cost

= 6,500,000+2,800,000+ 700,000

=10,000,000

5. Sources of Fund

Description Loan Equity Total

Machine 1,150,000 900,000 2,050,000
Warehouse 600,000 400,000 1,000,000
Factory Building with storage facilities 1,000,000 500,000 1,500,000

Vehicle 550,000 250,000 800,000

Furniture(Office) 150,000 0 150,000

Air cooler 200,000 0 200,000
Furniture(Factory) 250,000 0 250,000
Computer 0 200,000 200,000
Business start-up costs 0 700,000 700,000
Current Assets 2,100,000 700,000 2,800,000
Other Office assets 350,000 350,000
Total 6,000,000 4,000,000 10,000,000

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6. Loan repayment Schedule

Loan will be taken from United Commercial Bank Ltd. From Kawranbazar Branch with 20%
interest

Year Installment Principal Interest Total
Payment Remaining
0 - - - 6,000,000
1 2,006,278 806,278 1,200,000 5,193,722
2 2,006,278 967,533 1,038,744 4,226,188
3 2,006,278 1,161,040 845,238 3,065,147
4 2,006,278 1,393,248 613,029 1,671,898
5 2,006,278 1,671,898 334,379 0

7. Pro forma Income Statement

Items 2013-14 2014-15 2015-16 2016-17 2017-18

Sales 129,000,000 131,150,000 131,150,000 202,500,000 202,500,000
(-)COGS 123,360,000 123,360,000 123,360,000 188,500,000 188,500,000
G.P 5,640,000 7,790,000 7,790,000 14,000,000 14,000,000
(-)
Administrative
expenses
Salaries & 3,363,750 3,363,750 3,363,750 4,567,750 4,567,750
wages
Utility 120,000 120,000 120,000 160,000 160,000
expenses
Office rent 110,000 110,000 110,000 140,000 140,000
Audit Fee 75,000 75,000 75,000 90,000 90,000
Depreciation 417,750 417,750 417,750 626,625 626,625
Printing and 50,000 50,000 50,000 60,000 60,000
stationary

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Insurance 120,000 120,000 120,000 160,000 160,000
Entertainment 80,000 80,000 80,000 100,000 100,000
Recruitment 120,000 120,000 120,000 160,000 160,000
and training
R& D 300,000 300,000 300,000 400,000 400,000
Amortization 17,500 17,500 17,500 17,500 17,500
of preliminary
expenses
Convenience 80,000 80,000 80,000 95,000 95,000
Legal and 112,000 112,000 112,000 140,000 140,000
other
professional
expenses
Total 4,766,000 4,766,000 4,766,000 6,716,875 6,716,875
Administrative
expenses
Marketing
expenses:
Promotion cost 900,000 900,000 750,000 750,000 720,000
Distribution 200,000 150,000 100,000 100,000 100,000
cost
Total 1,100,000 1,050,000 850,000 850,000 820,000
Marketing cost
Net Operating (226,000) 1,974,000 2,174,000 6,433,125 6,463,125
income
Interest 1,200,000 1,038,744 845,238 613,029 334,379
expenses
Net income (1,426,000) 935,256 1,328,762 5,820,096 6,128,746
before tax
Income Tax 0 0 0 0 0
Net income (1,426,000) 935,256 1,328,762 5,820,096 6,128,746
after tax

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Gross Profit Projection Net Profit projection

25000000 7,000,000

6,000,000
20000000
5,000,000
Sales, COGS & Gross profit

4,000,000
15000000

Net Profit
sales 3,000,000
COGS N.P
10000000 2,000,000
G.P
1,000,000
50000000
0
1 2 3 4 5
-1,000,000
0
1 2 Year3 4 5 -2,000,000
Year

Figure 2: Gross profit Projection and Net Profit Projection

8. Owner’s equity statement

Items 2013-14 2014-15 2015-16 2016-17 2017-18

Initial 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000
capital
Retained 0 (1,426,000) (490,744) 838,018 6,658,114
Earnings
Net income (1,426,000) 935,256 1,328,762 5,820,096 6,128,746
after tax
Dividend 0 0 0 1,000,000 1,200,000

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Ending (1,426,000) (490,000) 838,018 5,658,114
retained
Earnings
Owner’s 2,574,000 3,510,000 4,838,018 9,658,114 11,586,860
equity

9. Breakeven Point

For Year 2013-2014

Description Fixed cost Variable cost

Variable cost
Material cost

Factory wages

Factory utilities

Indirect labor

Total variable cost 123,360,000

Per unit variable cost 41.12

Fixed cost

Factory wages 1,000,000

Insurance 120,000

Depreciation 417,750

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Amortization of patent 17,500
Repair and maintenance 400,000

All administration 4,766,000
expenses

All marketing expense 1,100,000

Total fixed cost 7,821,250

10. Pro Forma Balance Sheet

Items 2013-14 2014-15 2015-16 2016-17 2017-18

Current assets
Cash 2,909,250 3,312,966 3,915,193 7,777,290 8,469,388
Intangible assets
Patent 350,000 350,000 350,000 350,000 350,000
Property ,equipment
Machine 2,050,000 2,050,000 2,050,000 2,050,000 2,050,000
Warehouse 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Factory building 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
Vehicle 800,000 800,000 800,000 800,000 800,000
Furniture(office) 150,000 150,000 150,000 150,000 150,000
Air cooler 200,000 200,000 200,000 200,000 200,000
Furniture (factory) 250,000 250,000 250,000 250,000 250,000
Computer 200,000 200,000 200,000 200,000 200,000
Start up cost 800,000 800,000 800,000 800,000 800,000
Total assets 10,209,250 10,612,966 11,215,193 15,077,290 15,769,388
Liabilities and equities

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Current liabilities
Accounts payable 1,200,000 1,038,745 845,238 613,030 343,380
Accumulated 17,500 35,000 52,500 70,000 87,500
amortization(preliminary
expense)
Accumulated 417,750 835,500 1,253,250 1,671,000 2,088,750
depreciation(plant)
Bank loan(current 806,278 967,533 1,161,040 1,393,248 1,671,898
portion)
Long term liabilities
Bank loan 5,193,722 4,226,188 3,065,147 1,671,898 0
Owners equity
Owners equity 2,574,000 3,510,000 4,838,018 9,658,114 11,586,860
Total liabilities and 10,209,250 10,612,966 11,215,193 15,077,290 15,769,388
equities

11. Pro Forma Cash Flow Statement

Items 2013-14 2014-15 2015-16 2016-17 2017-18

Sales 129,000,000 131,150,000 131,150,000 202,500,000 202,500,000
(-)COGS in (121,503,800) (123,239,173) (123,160,745) (189,708,876) (192,908,875)
cash
Gross profit 7,496,200 7,910,827 7,989,255 12,791,124 9,591,125
(-)Salaries& (3,363,750) (3,363,750) (3,363,750) (4,567,750) (4,567,750)
wages
(-)utility (120,000) (120,000) (120,000) (160,000) (160,000)
expense
(-)Office rent (110,000) (110,000) (110,000) (140,000) (140,000)
(-)Printing and (50,000) (50,000) (50,000) (60,000) (60,000)
stationary
(-)Audit Fee (75,000) (75,000) (75,000) (90,000) (90,000)

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(-)Insurance (120,000) (120,000) (120,000) (160,000) (160,000)
(- (80,000) (80,000) (80,000) (100,000) (100,000)
)Entertainment
(-)Recruitment (120,000) (120,000) (120,000) (160,000) (160,000)
(-)R&D (300,000) (300,000) (300,000) (400,000) (400,000)
(-)Connivance (80,000) (80,000) (80,000) (95,000) (95,000)
Legal expenses (112,000) (112,000) (112,000) (140,000) (140,000)
(-)Promotion (900,000) (900,000) (750,000) (750,000) (720,000)
cost
Distribution (200,000) (1,50,000) (100,000) (100,000) (100,000)
cost
Interest (1,200,000) (10,38,744) (845,238) (613,029) (334,379)
expenses
Net cash flow 665,450 1,371,249 1,763,267 5,255,345 2,363,996
from operating
activities
Cash flow from
investing
activities
(-)Patent (350,000)
(-)Machine (2,050,000)
(-)Warehouse (1,000,000)
(-)Factory (1,500,000)
building
(-)Vehicle (800,000)
(-)furniture (250,000)
(-)computer (200,000)
Start up cost (800,000)
Net cash flow (6,950,000)
from investing
activities
Cash flow from

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financing
activities
Capital 4,000,000
Loan 6,000,000
(-)Loan (806,200) (967,533) (1,161,040) (1,393,248) (1,671,898)
repayment
Net cash flow 9,193,800 (967,533) (1,161,040) (1,393,248) (1,671,898)
from financing
activities
Cash change 2,909,250 403,716 602,227 3,862,097 692,098
during the year
Beginning 2,909,250 3,312,966 3,915,193 7,777,290
balance
Ending balance 2,909,250 3,312,966 3,915,193 7,777,290 8,469,388

Ratio Analysis

Ratio Ref. 2013-14

SQuick Ratio Quick Asset 1.45
Current Liabilities
Current ratio Current Asset 1.45
Current Liabilities
Net working capital Total current Asset 9,02,972
-Current Liabilities
Debt equity ratio Total debt 2.8:1
Total equity
Liverage ratio Total Liabilities 1.08
Net worth
Return on Asset Net profit after tax -.14
Total assets
Gross Profit Gross Profit .043
ratio Net sales

Operating profit ratio EBIT -.0018
Sales
Net profit ratio EAT -.011
Sales
Interest coverage ratio EBIT -.188
Interest

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Other Courses of Actions

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Other Courses of Actions

Environmental Issues
Our product is totally an environment friendly product that will reduce CO₂ by consuming it
at their growing period. It does not contain sulphur or any other toxic elements.

Ethical Issues
We will ensure the supply of the best quality product to our customers. We will employ
certain quality control procedures in our company to maintain certain standard of our
product.

We will maintain complete books of accounts and reasonable accounting policies and
estimates that will ensure fair presentation of financial statements and free of material
misstatement in all material respect.

There will be independent audit every year.

Certain code of ethics will be developed for the employees of the organization that will help
them to understand what is right and what is wrong in different circumstances.

Legal Issues
Each and every rules and regulations related to our business must be taken into
consideration at the time of taking any operational or financial decision.

Internal regulation like Article of Association and entity’s constitution that is
Memorandum of Association will be designed by considering the existing legal issues
related to the entity.

Intellectual Property issues
In each and every new business, protection of the business is a vital issue. New ideas can be
duplicated. Our business of bio-fuel generated from algae is the first and a complete new

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business in Bangladesh. So, all the legal rights of the business and bio-fuel production lie
with us. So we will strictly focus on our protection issues from other businesses in the energy
area. In this regard, we shall apply for the patent for our business from the government.
Patents which are a kind of intellectual property are a government's way of giving an
inventor, in this case us, ownership of our creation for a specified period of time. For that
certain period of time, we, the patent holders shall be allowed to control how our inventions
are used, what process to be selected etc.
Another protection for the name of our business will be our ‘Green Energy’ trademark. After
getting the right of trademark, no business will be allowed to duplicate the name of our
business. If anyone breached the rule we shall enjoy the right to file a legal suit against them
as the trademark holders.

Working environment
To be an effective organization and to keep pace with the outer world, right working
environment at the right time is a great factor for the employees. We know that upper
management only plan the functions in an organization but employees execute those plans.
So a working environment with peace and harmony must be ensured. Promoting peace and
harmony in the business is not an easy task. Several initiatives must be taken which are as
follows:
(1) A semi-democratic environment: In our business we will maintain a semi-democratic
environment not an autocratic one. People here will be free to provide any advice they think
to be useful for the business. It will not be always the situation that managers are doing
whatever they say. This may lead to the situation for employees to rule over upper
management.

(2) Consultancy: There will be continuous consultation with the employees in the business,
both with the factory workers and with the administrative employees regarding ways to
develop the business more. It helps the employees to feel that they are an important part of
the organization.

(3) Discussion: There will be discussion held twice a month with the representatives of the
employees and the management. In this session, the representatives discuss all of their
problems regarding their jobs, their working environment, their pay, job security.

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(4) Solution of conflicts: Sometimes it may happen that one employee is not comfortable to
work with other employee. There may be differences in opinion which may lead to conflict.
Any such disputes among the employees will be resolved as early as possible by upper
management.

If above steps are taken and maintained on a regular basis, peace and harmony in the
working environment can be ensured.

Safety and security issues
Employees hold a large portion of an organization. A manufacturing organization’s smooth
work, efficient and effective production depends largely on how the employees of that
organization are motivated, directed, what they feel towards their organization. Employees
get enthusiasm to work efficiently only when they feel that their inputs and efforts won’t go
priceless. They want security of their job, security of their families, and safety in the
workenvironment. In our organization, we will try our utmost to ensure all of the safety and
security issues of the employees. The following measures will be implemented:

Factory workers:-

(1) Safe working environment: We will ensure that the factory environment of our
business remains safe all the time. The supervisors will inspect the processes, machines on a
continuing basis. Records will be kept regarding the inspections to be reviewed further by
middle management.

(2) Proper maintenance:Any kind of defect detected in the machines will be repaired
immediately so that they will cause no harm for our employees.

(3) Training of the employees: Before the workers start formal production works, they
will be properly trained by the supervisors and others who are specialized in this area so that
workers can handle the machines smoothly.

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(4) Providing precautionary toolsfor workers:Workers in the factory will be given
some tools like metal gloves, masks etc.

For administrative employees:
(1) Insurance:Employees will be under the protection of group insurance which will help
the employees feel protected.
(2) Medical allowance:Medical allowance of a particular percentage of the basic salary
will be provided to the employees each month for themselves and for their families too.
(3) Overtime premium:Employees working overtime will be provided an overtime
premium. It helps them feel that they are getting adequate return of their efforts towards
the organization.

Use of ICT
ICT has become the most cost effective medium that helps managing business activities in
today’s world. I.C.T. is very useful as it provides a faster way of doing many tasks and
ultimately saving the business time and money. It is more efficient when works are done
through a computer with an internet connection. Having an internet connection helps doing
researches and competitor analysis as computers can quickly handle data and convert it to a
better form like a graph and a pie chart. Documents can be typed and reports can be
compiled with the added advantages that back - ups can be made and they can be edited
and are easier to read. Interaction with the customers becomes very easy. There are
thousands of other advantages of having ICT in a business other than the above. Each of our
employees with a computer will be given an internet connection. Moreover, for making our
accounts easier to record, analyze, summarize and interpret, we will have specialized
accounting software embedded in each of the computers in the office. The software is
named Tally which is renowned for accounting in the world. Using this software will enable
us to produce our financial statements in a shorter time period putting in less effort by the
employees. This will be just a matter of a click to the employees.

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Course Code: F--306

Conclusion

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Course Code: F--306

Conclusion

A business is a part of a society and serving the society by making reasonable profit is the
main purpose of business. From this point of view, we want to introduce our new business
Green Energy Pvt. Ltd which will be an exclusive solution of the fuel problem of Bangladesh.
Our product bio-fuel can bring revolutionary change in the power and fuel industry of
Bangladesh. As a new product, at the same time it will be less costly and environment
friendly energy. Our product analysis discloses that it will be a perfect product in the context
of our country; our financial plan indicates that it will be a profitable company in the future
and the marketing plan specifies that it can be possible to target potential customers and to
distribute our product to them.

It can be summarized that this business has an immense opportunity to serve the people of
Bangladesh. It will save government from the hand of subsidy loss; it will help to reduce the
inflation rate indirectly by reducing the transportation cost of daily necessary goods and it
will provide us a green society by reducing the CO2.

So at the end, to save ourselves as well as the planet, it is needed to use bio-fuel.

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Appendix

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Appendix

Appendix 1:

Marketing Research:
To understand the target market, condition of the target market, behavior of the target
market, we have done a marketing research. It also helped us a lot to do the sales
projection. For feasibility study, we developed a questioner and made a survey of around 65
people who live in Comilla and some of its nearer places. We used random sampling to
determine the sample. We also considered the population characteristics and the survey
purposes to determine the sample size. Our target markets are Public transport, daily goods
carriers and farmers. We took a sample of at least 21 from each group to understand their
current fuel consumption habit, their satisfaction dissatisfaction, their views about our
product, what they are demanding, what they prefer most etc. To analyze this researched
data, we used some modern statistical techniques also.

Analysis and Findings:
In this section, we analyze and describe the result of our research relating to each target
group as well as a whole. Reasons for switching from normal fuel to Algae Bio-fuel other
than cost are:

Reasons farmers Public Goods
Transports Carriers
High Mileage 8% 29.4% 48.5%
Environment 10% 18.2% 17%
friendly
Good for 24% 32.1% 20%
Engines
Renewable 58% 20.3% 14.5%
alternative
sources
Total 100% 100% 100%

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Full & final report

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