Examining the Business Plan of Blue CNG station

Examining the Business design of Blue CNG moveThis report is about the commerce blueprint of a CNG station which is located in Peshawar Pakistan and is prep ard by Syed Behram Bin Nasir. In this b scummy try to do the industrial, cropion plan, working(a) plan, presidential termal plan and trade planIndustry AnalysisIn the beginning ill start with the industrial analysis in which ill explain the flowing situation of the CNG earthy covering how it is making an impact in the drift pedaleum orbit and future of the this specific labor how new trends will way out it, what strategies to ca-ca that will ensure us to be competitive with the market we ar in and how give the bounce we make it diffe snag from new(prenominal) competition. After that an everyplace view on how to we can utilize our resources and make out railway line much efficient and then to come up with proper selling strategies to forecast the demand of CNG in the true market.NATURE OF vocationProduc ts size of it of businessEquipment PersonalServicesPRODUCTION PLANManufacturingOperationsPlansproviderOPERATIONAL PLANHead offices and Regional plantGoods and go usance of engineeringORGANIZATIONAL PLANPartnership businessPrivate manageEmployees responsibility heraldic bearing and visionMARKETING PLANIt is one of the close effectant part of the business plan in which we decide which marketing plans to implement and what strategies to make, how the business can be run efficiently. The main character of the marketing plan is how the product or the service be distributed, priced and promoted. milieual analysis pestis analysisSwot analysisPorters five forcesMatketing goals trade strategies commercialiseing mixBudget decisionsFINANCIAL PLANSources of financeIncome didactics offset sheetFundsRatiosRISK ASSESSMENTIn this we fall upon the threats to a business which be mainly the potential threats and making a strategies how to minimize the risk of threats and making the business to a progressive and ingestionful road.INDUSTRIAL compendiumCNG is one of those resources which are abundantly available in our inelegant. The country is using fossil oil colour products for a very long beca economic consumption they out front they didnt had any alternative and in like manner the country spending a bay window of its foreign switch of buying the oil products, so it was important for the policy-making science to come up with a substitute which can help the good deal and excessively help them decrease the large get along of foreign exchange they are spending on buying the oil color products. referable to this shout by the govt already to the highest degree 600,000 cars are already on CNG. Due to a large difference in the prices of CNG and oil colour products a atomic pile of hatful are converting their cars on to CNG. From an analysis made already thither are 2500 hundred CNG move currently working in the country and already the demand is more t hen CNG mettles has to offer. The total amount for circumstance up a CNG center station is about 30.22 one million million million which accommodates the basis, building, equipment and machinery, along with the preliminary expenses and working capital of the United States.CNG POLICYThe governance of Pakistan has offered number of incentives for encouraging the use of CNG in the country. Some of these are summarized belowStrong Government committedness to promote CNG useLiberal policy to provide license for CNG sellDeregulated market consumer price of CNGNatural ball up tariff for CNG linked to petrolPriority of natural brag connection to CNG moveExemption of import duty and sales tax.Federal cabinet also proved a package of incentives and recommendations for replacement of diesel motor oil with CNG.This has provided a boost to the industry and so far, more than 2.5 million vehicles grant been reborn to CNG and more than 3100 CNG displace are operational in diametric parts of the country (As on May, 2010). With these developmentsPakistanhas become the slip awaying CNG using country in the world.HDIP is promoting and offering consultancy work to the private sector which include the whole range of activities like governance of company, selection of sites, legal formalities, design of stations, specifications and sizing of equipment, selection of equipment, selection of contractor, fosterage of manpower, commissioning and supervision, etc., depending upon the clients needs. HDIP with approval of the Ministry has developed the interest procedure for establishment of CNG Stations.http//202.83.164.26/wps/ penetration/Mopnr/ut/p/c0/04_SB8K8xLLM9MSSzPy8xBz9CP0os_hQN68AZ3dnIwMD3wAXAyNTPxc_E1NjINdYvyDbUREALPdBpw/?PC_7_OFLO9FH20GDHE02DCQKDP72HM7_WCM_CONTEXT=/wps/wcm/connect/MopnrCL/ministry/sageneral/hdipi furnishMARKET DEMANDKeeping in mind the current situation of Pakistan we know how important transport has become and its only travelling that peo ple can travel from one to other transport has become the main source of transporting goods. In a see 2006 2007 it was told that the population of Pakistan is increasing 2.0% per anum which means almost 3.2 million people, with this increase either grade the number of vehicles also increase which increased the demand of petroleum finishedout the country.According to GOP analysis the consumption of CNG and petroleum products are almost to a sky high 70% where electricity is 15% LPG is 8% and coal is also 8% and the other used in other areas including residential areas.http//htmlimg2.scribdassets.com/hqj2a15kb1weukg/images/11-81d0c282bc/000.jpgIn the 1990s the demand for petroleum increased by 7% per anum and the came down to 2.5% by the end of the 1990 and then again by the end of the 2008 2009 it increased again to a sky high 9.7%.http//htmlimg3.scribdassets.com/hqj2a15kb1weukg/images/12-e24e59ea45/000.jpgANALYSIS OF COMPETITORSIn pakistan major portion of the CNG sector is ta ken by the PSO and its rough 60 tp 65 % and the rest of the portion has other companies like Shell, Attock, Caltex and resume.http//htmlimg2.scribdassets.com/hqj2a15kb1weukg/images/13-dc7de4ac1c/000.pngBUSINESS DESCRIPTIONProducts ServicesCNGLPGSize Of BusinessA CNG business has little number of people mainly from 8 to 12 as compared with capital invested.http//htmlimg2.scribdassets.com/hqj2a15kb1weukg/images/14-f2b642991a/000.pngOffice EquipmentOfficeControl way of lifeCylinder storage roomShed for dispenserWashroomUnder ground pipingPower cablesFlooring wind Costhttp//htmlimg2.scribdassets.com/hqj2a15kb1weukg/images/15-996ef3ad4b/000.pngEQUIPMENTEquipment needed for a CNG stationGas compressorElectric take panelStorage cascadeCNG dispenserPERSONNEL REQUIREMENTBy military force we mean people who will work in a CNG pump which includes cashier, manager, operator, accountant, watchman and sweeper. A total of 12 to 15 people are needed for the two shifts for a CNG station and a brief thinking how their salaries would be are belowhttp//htmlimg1.scribdassets.com/hqj2a15kb1weukg/images/16-fff5287002/001.jpgBACK GROUND OF CNG IN PAKISTANThe reciprocation CNG means compressed natural louse up, one of the first environmental clean. This gas is majorly used in homes as fire also in industries and factories. basically when we compress gas to a level of 250 bar it becomes CNG.According to a survey in 2006 2007 CNG industries invested a handsome amount of 70 million because of the encouraging policies of the giving medication so make CNG more and more convenient for the people of Pakistan. Now a days almost 2700 CNG stations are working in different cities of Pakistan and its not stopping in a span of 3 to 4 long time another 1000 stations will be installed and because of this rapid growth around 30000 people got industrious across the country.According to a survey conducted by the international gas association Pakistan is the third largest consumer of CNG af ter Brazil and Argentina and in Asia Pakistan largest consumer of CNG with over just in 2009 approximately 2 million people born-again in that respect cars on to CNG.PRODUCTION PLANFor opening a CNG station need to go through few essential steps which should fit the criteria of the oil marketing companyApplicationA individual who is interest in opening a CNG station has to submit an natural covering to the oil marketing company to take in notice that he wants to use his land as a supplier of CNG and needs the permission of the government to help him install the station and use it to sell oil products and operateFeasibility StudyOil marketing company after excepting the application then checks credibility of the applicant both kind, monetary and skills and then a feasibility report is conducted by the oil marketing companys adroit checks the viability of applicants land with respect to the arrangement. After fulfilling the feasibility criteria of the project, the oil marke ting company signs a retailer ship agreement with the applicants takes the applicants land and acquires it on rental ingest base for a minimum time period of 15 years. The rent is a normal amount based on the location of the land.NOC (No protest Certificate)After signing an agreement with the oil marketing company an in effect(p) draws a map for the sight representing the structure of the sight and then the application is submitted to the district coordinator officer which then issues a no objection present after talking to the concern segment who after few showdown decide if the NOC should be issued or not. The following departments are as follows relate district authorityPlanning authorityTraffic police part of civil DefenseNational high way authorities primordial board of revenueCivil administrationIrrigation officerForest departmentCONSTRUCTION PHASEAfter the permission the infra structure has to be started according to the approved map made by the expert earlier. The live is only shared by the applicant and oil marketing company. The toll of the machinery and equipment is paid by the company and rest of the civil work personify is on the business owner. After completion the sight is visited by an expert from the oil marketing company to check if its made according to the standards of wellness and safety issues.PROCESS FLOW CHARThttp//htmlimg4.scribdassets.com/hqj2a15kb1weukg/images/19-1a7ddf4525/000.jpgNATURAL GAS touch onhttp//htmlimg3.scribdassets.com/hqj2a15kb1weukg/images/20-b4956e05fd/000.png ring Of SuppliersThe central board of revenue also known as CBR has made a list of suppliers who provide cylinders, compressors, CNG vehicle cylinders, CNG machinery and reincarnation kits.http//htmlimg1.scribdassets.com/hqj2a15kb1weukg/images/21-ac6394650f/000.pngOPERATIONAL PLANCompressorsIt is a mechanical device that increases the insistency of the gas by decreasing its volume, a compressor is same as a pump both decrease the volume and both can travel through a pipe.Pressure regulatorRegulates pressure of CNG to the engine and has different stages through which the engine can be tuned according to consumption of the engine and take a crap a steady performance.Filling valveMulti valve with quick closing device that keeps the CNG stored in the cylinder. Through this valve the vehicle is refueled.MixerThis is a device used to control the amount of CNG inside the engine , setting the ideal gas pressure for smooth running of the engine.Electronic UnitHelps in enabling the catch up with pressure of gas, it controls sensors to improve the mixture.Ventilation formA safety equipment which helps in the ventilation of the systemConnection TubesCNG cylinder is connected to strong and strong pipes and also connects to the engine.Filling ValveA device which helps the CNG to be stored in the cylinder and the vehicle is also refueled through this valve.ORGANIZATIONAL PLANForm of possessor ShipIt could be proprietorship or partnership depending on the amount of cash or investment involved in the businessName of The BusinessThe nature of the business is private limited so there is no need of the government to come in and issue a name.Identification of the OwnershipOwnership is only in the hand of the person who will start the business or in the hands of the partners in case the business is a partnership based.Responsibilities of EmployeesFueling the vehiclesSelling the lubricants numbering and accepting the cashOperating the machineryCash managementBook safe propertyMARKETING PLANMission visionVisionTo make 10 more stations in the next 10 to 15 years all across the country mainly in the larger cities of Pakistan.MissionHigh quality compressed gas for transportation which should be environmental friendly, gives economical advantages and support the government to help give good services to the people of the countrySituation AnalysisThis analysis is usually through with(p) to find out which environmental forces ar e effecting or which factors are effecting the business and then coming up with a strategy to minimize the effect of these strategies.General OverviewNatural Gas is one of the most valuable natural resources abundantly available in ourcountry. The people of Pakistan induce been using the petroleum products as a fuel in theirautomobiles, thus spending a huge amount of foreign exchange on import of petroleumproducts. Moreover, the Government of Pakistan has taken certain concrete steps in set outto promote the use of natural gas as a fuel substitute in the automobiles. Due to the effortsmade by the Government and relatively low prices of gas, more than60 0 ,00 0*vehicles have already been converted to operate on Compressed Natural Gas (CNG)fueling system all over Pakistan.Compressed Natural Gas (CNG) is produced when the natural gas is compressed intocylinders to be used as a fuel in the automobiles. The compressed natural gas has been used as an automobile fuel since 1940, and ove r the years, the engineering has been modified and refined. In the recent years, the usage of CNG as an automobile fuel has strongly increased because of its low cost and environment friendly nature.Pollution and Waste ManagementRecent studies have memorise pollution caused by hazardous gas emissions and solid waste as a key environmental issue confronting Pakistan, with significant health implications.A substantial increase in the number of vehicles on urban roadstead continues to drive up levels of urban air pollution. Common gases emitted by vehicles include carbon mon-oxide, nitrous oxides, and ozone, and are dangerous to human health beyond certain levels of concentration. Poly-aromatic hydrocarbons released by diesel-powered vehicles are known carcinogens, spot smoke from diesel engines has aggravated already elevated levels of airborne soot. Nitrous oxides are acclivitous air pollutants with the highest concentrations recorded in Karachi, followed by Lahore, Quetta, Pesh awar, and Islamabad (Figure 3). Industries located in urban areas are the main source of sulfur dioxide (dangerous to human, animal, and plant life) while brick kilns powered by low-grade coal are notable sources of soot.Pest analysisA helpful way to understand the big fork up of governmental, Economic, Socio-cultural and Technological environment. By making good use of PEST analysis, it is ensured that what is exhalation to be done is aligned positively with powerful forces of change. It helps in run in a new country or region and helps in understanding the realities of that environment. It helps in strategy formation in a smack that these factors (Uncontrollable environmental forces) must be kept in view, which whitethorn lead to failure if ignored. The position of PEST analysis in understanding the boilersuit picture of environment can be described by the following diagramhttp//htmlimg4.scribdassets.com/hqj2a15kb1weukg/images/29-ad08c88882/000.pngSituation analysisin which political-legal (government stability, spending,taxation, etc.),economic(inflation, interest,unemployment, etc.), socio-cultural (demographics,education,income distribution, etc.), and scientific (knowledgegeneration, metempsychosisofdiscoveriesintoproducts,ratesofobsolescence, etc.)factorsare examined tochartanorganizationsterm plans.http//www.businessdictionary.com/definition/PEST-analysis.html.PoliticalGovernment agencies and pressure groups have a strong effect upon the activities of any organization in a society. Political environment strongly affects the marketing decisions. The political stability of a country has its impact on the consistency of policies of local government. Importance of public interest groups and business regulations can be base from the political environment.Nations vary greatly in their political and legal environment. Sometimes, a government can decide violently to respond a common feeling even without a change. Any new policy can be introduced rega rding tax and trade and tariff control etc. This may give benefits to the organization but the thing matters is that how they handle business and financial matters in such unexpected and sudden changes? Political trends may not be of as much importance in stable governments as they are in weak ones, although they can have a significant impact on business. For example, in the United States, the companies in the business of providing social services can have more opportunities when Democrats are in power. Political decisions like awarding of subsidies to any sector either directly in the form of grants or through tax incentives can impact the industry circumstance.EconomicEconomic environment is usually analyzed by keeping in view the following economic indicators employment, consumer price index, housing starts, personalised income, saving rate, industrial production, capacity utilization and productivity etc. Although the falling out between living standards of well-developed West ern and developing Asian countries is lessening, yet the changeful economic climate in the Asian economies has important implications for international marketers. Organizations determine that how these changing incomes affect purchasing power and how they adopt it for the firms profitability.Social distributively country has its own set of values and traditions. The companies must know that how consumers in different countries think and use different products before planning a marketing program. All the positive and negative impacts which a culture may cause must be identified. There might be different dimensions of culture like the social organization of society, religion, literacy levels, political systems and language.Social factors also influence behavior of consumers. A persons family, friends and social organizations strongly affect product and brand choices. The persons position within each group can be defined in terms of role and status. A buyer chooses products and brands that reverberate his or her role and status.TechnologicalMarket is changing radically as a result of technology. There are three different aspects of technology type of technology, its process, and the impetus for its development. Type of technology preferred by a company is dedicated by its interest. Technological environment may be the most dramatic force in changing the working behavior and destiny of the firms. Technology is changing rapidly and every new technology replaces an older one. New markets and opportunities are created by new technologies the marketers should watch these trends in technology in order to compete. Companies which fail to anticipate and keep up with technological change find their productsoutdated soon. Firms must track technological trends and determine that whether theirproduct is fulfilling the customers demands still or not. Some major factors of the expert environment are automation, rate of change of technology, internet and communication costs . tog up ANALYSISStrengthsOne of the major strengths that a business can have is mainly its location because a CNG station is all about its location how accessible it is for the consumers.Choice of equipment used by a CNG station is also an important factor which can help the business achieve more profits, the more user friendly it is the more it will be believe by the staff and people coming to the station to fill up their cars.WeaknessLacking experienceSupply of gasSkilled workersOpportunitiesCheaper than petroleum products for the consumersImposition of sales tax and customsThreatsSaturated market delinquent to large number of stations made every year.Increase in gas prices by government.PORTERS 5 FORCEShttp//htmlimg1.scribdassets.com/hqj2a15kb1weukg/images/35-b6cf4245b4/000.pngTen year planhttp//htmlimg2.scribdassets.com/hqj2a15kb1weukg/images/36-8f8a3b8fec/000.pngMarket demandAt present there are more than 3000000vehicles, which have been converted to CNGfuel, and a large num ber of vehicles are further being converted.Due to the increasing prices of petroleum products, the trend of converting cars to CNGfueling system has been on a rise. However, there exist a large number of people who were reluctant to convert their vehicles from petrol to gas due to safety concerns. recently, galore(postnominal) car manufacturers have started manufacturing the cars with built-in CNG fueling system. This change has led to enhancing the bureau in the minds of the general public regarding the safety concerns, and now, more people are inclined towards purchasing these factory-fitted CNG fueling system cars.Market SupplyTotal number of CNG stations in Pakistan is only over 2700, which is quite low for meeting the growing demand of CNG. Apart from these 2700 CNG stations, many new CNG stations are being setup across the country.Price Mechanismhttp//htmlimg1.scribdassets.com/hqj2a15kb1weukg/images/37-476443a5f3/001.jpgpublicity strategyAdvertising through cable tv ads.Pu mp flits and banners liege customersGiving visiting cards to every customer who fills upWorkers as medium of advertisementOrganize seminarsFinancial Planhttp//htmlimg3.scribdassets.com/hqj2a15kb1weukg/images/38-63016812a5/000.jpgProjected Balance Sheethttp//htmlimg1.scribdassets.com/hqj2a15kb1weukg/images/40-d42fa66c4f/000.jpgProjected Cash Flow Statementhttp//htmlimg4.scribdassets.com/hqj2a15kb1weukg/images/41-1bf688a251/000.jpgCost of saleshttp//htmlimg1.scribdassets.com/hqj2a15kb1weukg/images/43-9f50728424/000.pngWorking Capitalhttp//htmlimg4.scribdassets.com/hqj2a15kb1weukg/images/44-4747eda23d/000.pngRisk AssessmentInflation stride10% inflation rate has been considered while making the projections for cost of sales,operational expenses and salaries. The prices for gas, electricity, operational expensesand staff salaries are increased by 10% every year as a result of inflation. The sellingprice of gas has been increased by 5% every year. This shows that revenue will increaseby less percentage than expenses in the earlier years.High Depreciation RateHigh depreciation rate of different assets will also be a risk for the venture that mayultimately decrease the returns of the venture.http//htmlimg1.scribdassets.com/hqj2a15kb1weukg/images/47-daa535877f/000.png