A

Entrepreneurship
Report

Submitted in partial fulfillment for the award of the degree

Master of Business Administration

Chhattisgarh Swami Vivekananda Technical University, Bhilai

Submitted by
MANISH KUMAR SAHU

MBA –Semester- III

(Session 2022 - 2023)

Approved By, Guided By,

Dr. Souren Sarkar Prof. Ravindra Mishra
Head of the Department Assistance Professor

SHRI SHANKARACHARYA TECHNICAL CAMPUS

Approved By AICTE
(Managed by Shri Gangajali Education Society, Bhilai)
JUNWANI, BHILAI-490 020 (CHHATTISGARH), INDIA
APPENDIX- II

DECLARATION

I the undersigned solemnly declare that the entrepreneurship report entitled is based on my
own work carried out during the course of my

study under the supervision of Pro. Ravindra Mishra.

I assure that the statements made and conclusions drown are an outcome of my

rural area visit. I further declare that to the best of my knowledge and belief the report does

not contain any part of any work which has been submitted for the award of MBA degree or

any other degree/diploma/certificate in this university or any other university of India or

abroad.

(Signature of the Candidate)

Enrollment No:CB3624
APPENDIX- III

CERTIFICATE

This is to certify that the work incorporated in the report is a record of entrepreneurship
work carried out by Manish Kumar Sahu bearing Enrollment no. CB3624 under my
guidance and supervision for the part fulfillment for the award of MBA Degree of
Chhattisgarh Swami Vivekanand Technical University, Bhilai, (C.G.),India.

To the best of my knowledge and belief, the report

i) Embodies the work of the candidate him/herself,

ii) Has duly been completed,

iii) Is up to the desired standard both in respect of content and language for External

Viva .

(Signature of the Supervisor)

APPENDIX- IV

ACKNOWLEDGEMENT

I would like to take the privilege to specially thank respected Pro. Ravindra Mishra (faculty
in charge)

for his/her kind support and valuable guidance which helped me to complete this project. I

am thankful to Dr. Souren Sarkar (HEAD) Faculty of Management Studies who has given me

the opportunity to do this training and also his/her continuous cooperation for our overall

growth.

Date – 20-01-23 Manish kumar sahu

Place – Bhilai MBA III Semester

.
 INDEX

Sr.no. Particular Page no.

1 Executive Summary 2

2 Industry Analysis 3

3 Competition Analysis 4

4 Product or Service Description 5

5 Marketing Sub-plan 6-10

6 Operation Sub-Plan 11-14

7 Development Plan 15

8 Human Resource Sub-Plan 16

9 Critical Measures 17-18

10 Financial Sub-Plan 19-21

1
Executive Summary

The bakery and confectionary business is one of those businesses that are growing all over
India. People look for quality in these products and wish to buy those products that are able
to meet their standards and can satisfy their cravings. The main aim of this project is to
establish a bakery in Rajnandgao that will be different from the ones already operating in the
city. The bakery will be called ‘The Baker’s Emporium ‘aiming to produce most of its
products from scratch and will serve a variety of confectionary products that will be
customized according to customer needs where they can choose from a wide variety of
toppings and flavours. In addition, Baker’s Emporium will also be serving gluten-free,
organic and reduced fat products. The project is targeted towards middle and high income
groups of people. It will be established at a location with a continuous stream of traffic and a
good parking space. Also, it will be close to other eateries and shops so that people can just
walk towards the bakery. An area that might be considered is Rajnandgaon, next to Hardee’s.

The project cost will depend on certain factors such as rental payments, seating area, cost of
baking machinery, hiring salesmen etc. Proposed product mix includes: Cakes, Brownies,
Cupcakes, and Cookies. The estimated cost of the bakery will be around Rs.40 lac, the
project being based on 50% equity and 50% debt ratio. Projected NPV, IRR and Payback of
this project are Rs. 83 lac, 53% and 2.61 years respectively.

2
Industry, Customer and Competitor analysis

Industry Analysis

Rajnandgao does not have a very huge variety when it comes to the
confectionary business, as compared to cities like Bhilai, Raipur. Businesses that do operate
in the city are mostly the same consisting of the same products with only a slight difference
in taste. All these businesses operate using the same idea. Baker’s emporium has a relatively
unique idea of preparing customer orders right in front of them with the use of a variety of
toppings and flavours based on customer demand. This unique idea, which has not yet been
implemented in the city, serves as an opportunity for the business that will help it grow and
compete with other confectionary businesses. Also, the fact that the taste of the products will
differ greatly from the ones already being served in the market, serves as an opportunity.
However, Satyam Café is one of the confectionary businesses that may serve as a threat,
considering that it
serves products with an exceptionally better taste and quality, and that it is also present in
Rajnandgaon. This may generate greater competition.

Customer Analysis

The main target of this business is towards middle-income and high-income customers,
consisting of both children and adults, who are keen about desserts and are looking for
something different, i.e. an idea that is not already implemented. Presentation is not the only

Factor that is considered by the customers. The most significant factor that influences
customer demand is the quality of the product, or in terms of the confectionary business, the
taste of the product. Customers will prefer buying products that actually taste good rather
than buying the ones that just look good. The business will meet customer needs by providing
them a variety of batter and toppings for cakes as well as different cookie dough for
cookies. The product will be baked right in front of them containing ingredients as per
demand. The last part of the customer analysis discusses how the customer will be reached.
This will be done by advertising through social media, bill-boards, and by initially setting up
a smaller version of the business in an area that is often visited by the targeted customers in
order to generate and analyse customer feedback thoroughly.

3
Competitor Analysis

None of the confectionary businesses in Rajnandgao are operating on the basis of the idea
proposed in this project. However, there are a few businesses
that provide similar products and so, may serve as competition. Satyam café, asmentioned
before, is a major competitor in this business as it provides most of the bakery products and is
well known for its good taste. Also, it provides other products including bread, savoury treats
etc.

Which Baker’s Emporium will not be offering? This may serve as strength for Satyam café.
However, all its products are pre-baked and they do not have a very wide variety of toppings
and flavours that Baker’s Emporium will be serving, which may be their weakness. Also,
other café does not offer gluten free, fat free or organic cakes. who also provide customized
or regular cakes but either lack some confectionary products or do not provide very high
quality along with taste.

4
Company and Product Description

Baker’s Emporium will be a small bakery located in Rajnandgao, offering certain

Confectionary products. The business will be entrepreneurial with enough employees to help
the business run smoothly. A couple of employees will be designated bakers, preparing the
delights in the kitchen, while the remaining employees take orders and fulfil the needs
of customers. The product of focus for this business will be cakes. A variety of flavours,
frostings, sizes, styles, toppings, and decorations will all be available at Baker’s Emporium to
rise above competitors; Baker’s Emporium will offer numerous options to satisfy.

Common health and dietary needs of consumers. Whether it is required by allergies or simply
a choice, a desire for gluten free, organic, naturally sweetened, reduced fat, and vegan foods
has recently grown. By offering cakes which meet these requests, more consumers will feel
welcome to this bakery because their needs will be recognized and satisfied. The bakery will
contain comfortable lounge area open to customers, allowing them to stop in and sit down.

The location of Baker’s Emporium will be another advantage for the company. The business
will work out of a store front in Rajnandgaon, making it extremely visible for all consumers.
Being centrally located in Rajnandgaon, Baker’s Emporium will be easily accessible by all
members of the area. Given the varieties of cakes, convenience, and accessibility, Baker’s
Emporium will be capable of standing above its competitors.

5
Marketing plan, Market Summary

In the past five years, the development in Rajnandgao has grown tremendously with the
establishment of universities, excellent medical institutions and attractive residential
programs. People and investors are now attracted towards this city which will help the
Baker’s Emporium to attract more customers. Currently the area is served with small
restaurants and coffee shops but none of those restaurants is based on the idea developed at
Baker’s Emporium.

Target Market

Baker’s Emporium will have a broad target market. People of all ages, children through
adults, enjoy delicious treats, and therefore will be incorporated in the target market. Middle
and high income customers will be the main target. The catering service will be especially
utilized by locals for large events and celebrations. Baker’s Emporium will be able to rely
on locals for more year round business. The products of Baker’s Emporium will be
appreciated by all consumers who simply enjoy a decadent treat. Whether consumers are
looking for plain, simple cakes, or custom flavoured treats,
this bakery will be able to meet their needs. For consumers who are looking to come in and
sit down, Baker’s Emporium will be preferred by customers who enjoy a calm, modern,
comfortable atmosphere.

6
Market Demographics:

Geographic

Baker’s Emporium will focus on Rajnandgao and its nearby areas. Some other bakeries are
already established but they are not providing most of the products which Baker’s Emporium
Will be providing.

Demographics

Baker’s Emporium will strongly focus on the priorities of children and young people

Market needs:

 Wants variety and flavour in its products.

 Looks for speed of service.

 Want an entertaining and fun experience.

 Insists upon a clean, friendly and attractive environment.

Market trends

The market trend has changed from simple cakes to customized cakes and other tasty
cupcakes which will be provided by the Baker’s Emporium.

7
Marketing Mix Product:

Cakes, brownies and cookies are the key products of Baker’s Emporium, and product quality
is essential for the success of the business. In order
to ensure product quality, this bakery will emphasize cleanliness and sanitation, use quality
ingredients, and will always make sure that all cakes are
properly baked. Innovations are also an important factor in the growth and success of the
company. This bakery will start by offering a variety of options, from simple flavours like
chocolate and vanilla, to more decadent ones such as red velvet and German chocolate cake
as well as different kinds of frostings, toppings and flavours. However, to grow a business, it
is important for Baker’s Emporium to innovate their product. To do so, the bakery will
continually worktop develop and test new recipes for new flavours of cakes and icings. Doing
so will allow the company to have more variety to offer and possibly attract new Customers.
Along with this, Baker’s Emporium will create a couple of seasonal cupcakes, such as
pumpkin, during the months of autumn, or coconut lime throughout the summer, which will
only be available during certain times of the year. Doing this will give consumers something
to look forward to in upcoming months, as well as increase business as customers splurge
on cakes they enjoy that are only around for a limited time. By creating new product flavours,
Baker’s Emporium will not only grow as a business, but will also Increase sales.

Place:

Baker’s Emporium will open as a bakery in the city of Rajnandgaon. Although the company
is beginning as a little bakery in a small town, the objective of the business is to continually
grow. In order to do this, the company will slowly open more of the same bakeries starting in
nearby towns, and gradually expand to larger areas. Likewise, the catering service will grow
as more bakeries are opened and perhaps the ability to cater multiple events at one time will
be reached. The internet is an extremely efficient way to expand the business to a wider range
of areas; therefore, Baker ’s Emporium will develop a website on which customers can place
orders. Customers will then pick up their order at a nearby bakery, or, if they are not located
near one, Baker’s Emporium will find an appropriate way to safely ship the cakes and other
products. Doing so will not only increase the number of consumers that will be able to access
the business, but will also allow Baker’s Emporium to determine appropriate locations for
opening more successful bakeries, based on the areas from which the most orders are placed.

8
Price:

After Baker’s Emporium first opens, its key objectives will include strong market share,
survival, and return on investments. Achieving these aspirations will eventually allow the
business to become profitable. Keeping these goals in mind, the company will choose prices
which are competitive with the industry. Doing so will help Baker’s Emporium stay in
business with prices that are not high over competitors, which would likely turn customers
away. Yet by not being immensely below the market price, the business will still be able to
receive as much possible income while remaining competitive. As these prices result in the
strong market share and survival of Baker’s Emporium the company will then be able to use
income to pay returns on investments, and in time, receive profits.

Promotion:

Promotion objectives of Baker’s Emporium will consist of creating consumer awareness,

generating interest and desire, and moving the customer to make the purchase. Strategies for
making consumers aware of the bakery will include advertising and hosting a grand opening.
Offering free samples of the tasty treats at the grand opening may lead to both consumer
interest and desire. As customers try the delicious delights, they will be less hesitant about
making purchase. By simply building customer awareness, interest, and desire, consumer
purchases will increase, raising company sales. Being located in small town, public relations
will also be important for the business. Community involvement will be an extremely
valuable method of addressing this. Doing so will not only help Baker’s Emporium receive
more business from locals, but will also increase the company’s chance of referrals in the
community. A few ways Baker’s Emporium will utilize public relations is through
community involvement such as taking part in community activities, sponsoring local events,
or donating gift certificates or baked goods for fundraisers. This will show the company’s
desire to be involved and help out the community, which is extremely appealing to
community members. It will also provide positive exposure for the company. Public relations
will be essential for Baker’s Emporium to be successful.

9
Various menu items:

 Pastries

 customized cakes for celebrations

 cupcakes

 brownies

 ice cream

 juices, tea and coffee

 cookies Apart from offering this menu,

Our bakery will also provide some services such as…

 Wi-Fi for students.

 Sound system

 Free home delivery of orders.

 A separate room reserved for small parties.

10
Operations Plan

The key in the operations plan section is to address how operations will add value for your
customers Here, you’ll detail the production cycle and gauge its impact on working capital. For
instance, when does your company pay for inputs? How long does it take to produce the
product? When does the customer buy the product and, more importantly, when does the
customer pay for the product. Starting a bakery can be a costly endeavour, from securing a
lease to stocking up on high-quality ingredients.

Operations Strategy

The first subsection of your operations strategy section provides a strategy overview. How
does your business compare on the dimensions of cost and quality? Operation strategies may
include different contents like labour needed for work, equipment etc.

Labour may include:

1) Specialty Chef

Teamwork is integral to our operation and the types of employees we will hire depend upon
numerous factors. Baker’s emporium will employ a chef who will have the required skills to
meet the exacting standards. Our goal is to produce customized cakes we will hire an artisan
baker who is trained to the highest degree to mix, shape and bake specialty goods. In
addition, the chef will also be responsible for creating our unique menu.

2) Delivery, Cleaning and Maintenance

Baker’s emporium will deliver to local customers. We will consider hiring driver to avoid
disrupting staff. Our bakery will be able to pass health department inspections as well. We
will hire a worker to clean table’s and counters, or sweep floors and pick up spills as they
happen. We will also employ a staff maintenance worker who will help in repairing any
broken equipment.

11
3) Marketing and Management

We will hire a marketing professional to help us define our objectives and create advertising
promotions that drive traffic into the store. Baker’s Emporium will employ a manager to help
streamline our processes, reduce costs and boost productivity in our workers. We will select a
manager who is familiar with the food service industry to help monitor and control the
operation at every stage. We will select the marketing management who will

 Ensure our marketing is effective and productive

 Provide strategic guidance and planning

 Improve budget management and analysis

 Coordinate and monitor all marketing activities

Free you to work on other areas of your business Marketing management will be the
responsibility of a marketing manager, who is tasked with the effective execution of all
marketing activities in a coefficient way. A dedicated marketer will help keep our marketing
plans focused and ensure our marketing tasks get done. Our marketing management
objectives will include:

12
Marketing Strategy Planning:

Ensure our marketing meets our business objectives with the right plan for now and into the
future

Marketing Implementation:

Get our marketing activities completed on-time and on-budget.

Marketing Operations Management:

Professional review of what’s

been done, what needs doing and what needs adjusting to continually improve our marketing

Campaign Analysis and Optimization:

Monitor results and apply data-backed changes to maximize the effectiveness of our
marketing campaigns

Training and Consulting:

This will include keep up with the latest technology and changes or just get advice on ways to
improve our marketing with our tailored training and consulting services

13
Equipment

Start-up bakeries and large well-established facilities all require equipment

to prepare baked goods. When starting a bakery, the business owner can beginwith smaller
capacity equipment and upgrade as the business grows. Ovens, mixers, baker racks and
storage equipment are necessary items for a new local bakery as well as a large commercial
bakery.

Baker’s emporium will need to have mixers to prepare multiple batches of dough for baking
.Many professional bakers will attest that the mixing processes the most important step when
it comes to producing quality dough to use in their bakery. Each type of food found in a
bakery more than likely requires different type of mixing equipment. For the most part
deciding on a bakery mixer depends on the level of business you would like to produce.

This bakery will use mixers which is also known as vertical mixers get their name from the
orbital motion the dough agitator makes, which are circular orbits along the inside wall. The
mixing bowl that is used stays
in place while this happens. Planetary mixers will be great to have for our business that needs
to produce smaller batches at a time. Baker’s Emporium will also have racks to store baked
goods during production. Bakery racks will be built to hold specific types of pans. Ovenracks
will be built to withstand the high temperatures in commercial bakery ovens and can roll right
into the oven. The bakery will have racks for storing, cooling, freezing and baking. Ovens
and fryers will be essential equipment for our bakery. The type of ovens the bakery will use
depends on the amount and type of baking.

14
Development plan:

The development plan highlights the development strategy and also provides a detailed
development timeline. Many new ventures will require a significant level of effort and time to
launch the product or service.

Development
plans provide guidance to organizations in purpose, including mission, vision and values, as
well as product or service, target audience and the strategies they will use to achieve success.
Baker’s emporium’s development plan entails tasks and processes to develop and implement
growth opportunities within and between organizations To maintain and develop market
share, bakery manufacturers have been forced to address the staple’ image of their products.
In doing so, manufacturers have innovated by reformulating to make products more
indulgent,fortifying products with functional ingredients to make them healthier and developi
ng innovative delivery methods. Baker’s emporium will develop new products to maintain
and improve their market position. Our new products will include new varieties and flavours
these are called “line extensions” where different varieties or flavours of the same product are
produced. Quality improvement of an existing product, either functional or nutritional.

Developing a new, innovative product resulting from new ingredients, new packaging. A
market expansion is a growth strategy, often called market development, entails selling
current products in a new market. There are several reasons why a baker’s emporium will
consider a market expansion strategy. The competition may be such that there is no room for
growth within the current market. If a business does not find new markets for its products, it
cannot increase sales or profits.

Baker’s emporium will also expand its product line or add new features to increase its sales
and profits. When small companies employ a product expansion strategy, also known as
product development, they continue selling within the existing market. A product expansion
growth strategy will work well to increase profit share of bakery. Baker’s emporium will
create a website and social networking page for our business that features many photos of our
baked products. We will offer online specials and discounts to those who join our mailing
list. We will make our site appealing and provide the information necessary to easily access
our bakery. We will consider setting up an online mail-order site for our customers to order
goods online for local pickup or shipping. Also, we will maintain a list of the emails collected
from our visitors and customers and launch an email campaign to announce specials and new
items of our bakery.

15
Human Resource:

Human resource required to run the operation of the proposed business include 12 members.
The detail of the members is as under:

Description No. of employees Monthly salary

1. Owner manager 25,000

2. Master Chef 20,000

3. Salesmen 12,000

4. Helpers 12,000

5. Driver 12,000

Above HR composition shall be engaged in order to manage the operational affairs of this
project under the supervision of the manager. Appropriate experience for chef and salesmen
would be required.

16
Critical Risks

Every new venture faces a number of risks that may threaten its survival. Following are the
factors critical for the success of this business venture:

 Background knowledge:

Background knowledge and experience of the entrepreneur in the bakery business is

essential to run a business in an efficient manner.

 Trained human resource

Induction of trained human resource

to produce requisite items. If employees are not specialized in their fieldthen it would
not be possible to satisfy the customer.

 Quality maintenance

Maintenance of quality and hygiene standards is necessary because low quality

products do not attract and satisfy customers. When it comes to the confectionary
business, quality and taste are the key factors.

 Pricing strategy:

Pricing strategy and understanding the requirements of the target customers are also a
critical risk to start a new business. Pricing of the products should be reasonable so
that target customers can easily buy them.

 Presentation:

Décor, presentation and layout of the shop and products matter a lot especially in the
confectionary business. Good presentations an important key to attract the customers.

17
 Location consideration:

Location for easy access of the customer’s is essential. If location is not suitable and
will be out of the customer’s range or access, then it can create a great risk for the.

18
 Financial Sub-Plan

Cashflow Statement
Particulars Year 1 Year 2 Year 3
Operating Activities

Net Profit 369325 951843 1561818

Add: Depreciation 287840 287840 287840

Pre-Operation cost 18000 18000 18000

Training cost 1000 1000 1000

Income tax 0 76796 378133

Finished Goods 208983 24385 44637

Raw material 103281 125820 201970

Building rent 22500 24750 29948

Account payable 505227 99766 123591

Cash provided by operation 846629 1250289 2776411

Financing Activities 0 290940 336045

Working capital loan 0 104817 121067

Cash provided by Financing Activities 0 395756 457113

Net Cash 846629 854532 1492828

19
 Income Statement
Particulars Year 1 Year 2 Year 3
Revenue `
Cost of sale 18347647 21908272 25707195
Raw material cost 11861105 14162923 16618792
Operation cost
Direct Labour 2366667 2637556 2901479
Direct Electricity 240000 264000 290400
Direct Water 24850 29673 34818
Direct Gas 345139 412118 483580
Total cost of sale 14837760 17506269 20329069
Gross profit 3509887 4402003 5378126
Selling Expense
ADM 876000 963600 1059960
ADM Benefit exp. 87600 96360 105996
Building rent 900000 990000 1089000
Electricity 360000 396000 435600
Travelling 91738 109541 128536
Communication 17520 19272 21199
Office exp. 8760 9636 10600
Promotional exp. 183476 219083 257072
Depreciation 287840 287840 287840
Operating cost 18000 18000 18000
Legal, Licensing, & Training cost 1000 1000 1000
Subtotal 2831935 3110332 3414803
Operating Income 677952 1291671 1963323
Earning before Interest and Tax 677952 1291671 1963323
Long term Debt 226886 193368 148262
Working capital 81740 69665 53414
Subtotal 308627 263033 201676
Earning before Interest and Tax 369325 1028638 1761647
Tax 0 76796 199829
Net Profit / Total funds 369325 951843 1561818

20
 Balance Sheet
Particulars Year 1 Year 2 Year 3
SOURCES OF FUNDS

Account payable
505227 604993 712477
Deferred Tax
0 76796 276625
Long term Debt
1463450 1172510 836465
Working capital
527238 422421 301353
Paid up capital
1990688 1990688 1990688
Retained Earning
527238 422421 301353
TOTAL LIABILITIES 4855927 5588575 700594

APPLICATION OF FUNDS

Cash & Bank

1346629 22001161 3693989
Finished Goods & Inventory
20983 243368 282593
Raw Material Inventory
432756 558576 718156
Prepaid Building Rent
247500 272250 299475
Machinery & Equipment
1164960 1035520 906080
Furniture & Fixture
396000 352000 308000
Office vehicles
774900 688800 602700
Pre-Operation Cost
162000 144000 126000
Legal, Licensing, & Training cost
9000 8000 7000
TOTAL ASSETS 4855927 5588575 7000594

21