(About ‘Hybrid’ car manufacturing company)

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Table of Contents
1. Introduction3
2. Company’s background5
3. Location of business10
4. Financial planning12
5. Human resources 18
6. Rules and regulations30
7. Funds and Business

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 Types………………………………………………………………………………………………………………………..37

8. Marketing
Strategy……………………………………………………………………………………………………………………38

9. Conclusion……………………………………………………………………………………………………………….

10. References…………………………………………………………………………………………………………………;
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0. Introduction

It is common phenomenon and indisputable fact that as I are living in the 21st

century, technology is improving at very fast pace. Particularly, the car industry has been

through a lot of drastic changes and the introduction of hybrid cars in the car industrial

market has already become a critical point of business nowadays. Therefore, the

purpose of this business proposal is to propose the project about hybrid car

manufacturing company in Pakistan . There is no precise evidence to refute the fact

that countless number of companies all over the world have produced hybrid cars,

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however, not at large scales. According to the My research that I have done about the

topic, I have realized that there has been a rise in the number of hybrid cars wanted and

in the future this will continue to show the same trend. And thus, hybrid car

manufacturing can become a future success not only in Pakistan , but also in other

parts of the world.

The location that I have chosen to construct My manufacturing plant is the

capital city of Pakistan , Islamabad ,. There are a number of reasons why I have come to

the conclusion that I will be building the premises and the buildings of My car

manufacturing company in Islamabad , the most predominant one is that Islamabad ,

Pakistan is very conveniently situated in the South Asian region where there are about

231.4 million people. . The next most important factor that made us choose the capital

city of Pakistan , Islamabad is the political stability of the city and the country itself .

According to the recent report released by the World Bank (2013), Pakistan is now

considered to be one of those countries which are quite easy to start a business in. We

are quite elated and convinced that My car manufacturing company will be able to

thrive and become quite successful in the Pakistani business world. It is also quite

critical and crucial to mention and emphasize that Pakistan does offer a number of

chances and opportunities for the business people to open and launch their businesses

in the country. One of these sorts of opportunities and the chances that Pakistan offers

to the business people is the competitive tax rates of the country.

The reason for choosing the car industry is clear – the car industry is one of

those industries which are considered to be one of the most profitable industries in

today’s business world. From this context, it can easily be inferred that choosing the car

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industry and doing My business with this industry will certainly be financially feasible

and profitable to deal with. Thus the Hybrid Company can make a lot of profit from car

manufacturing and it can also contribute to the economic well-being of Pakistan . On

the other hand, Hybrid Company intends to reduce the environmental pollution by

producing Hybrid cars which are eco-friendly.

1. Company’s Background

Hybrid offers many improvements over conventional vehicles in terms of variety of

societal and environmental benefits. The Hybrid car is a vehicle which uses two or more

power sources to make the car to move. The two power sources are an electronic

motor and a small combustion engine. Day by day, Hybrid cars are slowly gaining

popularity with the auto buyers because most of the people are seeing the benefits that

owning a car that will help the driver to reduce their carbon footprint and also energy

efficient. Additionally, when people talk about carbon footprint, they are talking about

the amount of pollution and emissions that a person contributes individually that can

destroy the environment. On other hand, when people talk about hybrid cars, they are

talking about a car that is ahead of the past all- electric vehicles which run from pug-ion

batteries. The way that hybrid car is different is that, they use the power form the engine

to get started and then to keep the car running and then to keep the car running they

use the stored electricity that is created from the battery packs that are stored in the

trunks.

The Hybrid does not net to be plugged in, but some of the newer ones can be plugged in

when they are not in use to charge up. This is a way that will help to cut back on the gas

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that you need to use and the amount of pollution in the environment because you will be

only using the gas for long trips and in cases of emergencies.

1.1Define your business

A) Hybrid will be a company limited by shares thus it is legally separated from

owners and individuals who run business and it is limited to remaining unpaid amount

on the member’s shares.

B) The company’s main product will be hybrid car and a few numbers of traditionally

energized cars.

1.1.1 Types of goods or services

Low-cost hybrid cars which are more affordable and eco-friendly than

traditional cars and other hybrid cars in Pakistan .

1.1.2 Reasons why do you engage in this business.

There are a number of reasons why I have chosen to open and launch My

Hybrid Car Manufacturing Company here in Pakistan , Islamabad . One of the most

indispensable and outstanding facets of this issue, which ought to asserted, is that not

everybody in Pakistan can afford a high–cost cars in the country and the price of the

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fuel and other aspects of the traditional cars are quite high and expensive. By opening

up My hybrid car manufacturing company in Islamabad , Pakistan , I will not only be

making a lot of money and profit, but I will also be helping to protect and help the better

being of the environment around us. This is predominantly due to the fact that My

hybrid cars will not be having detrimental effects on the environment which the

traditionally energized cars are having. The third reason why I do contend and believe

that My business will be successful and why there is a need to launch My business is

that the price of My hybrid cars will be quite lower than the other types of traditional

cars and therefore there is a high level of potentiality for us to able to have the chance

to implement all the potential measures and the right degree of application to make

sure that I will get a lot of profits and benefits by creating My hybrid car manufacturing

company here in Pakistan ’s capital city, Islamabad .

The reason why I have chosen to call My company “Hybrid Car

Manufacturing Company” is that My company mainly produces hybrid cars. However, I

might also consider manufacturing traditionally energized cars depending on the

demand and feedback from the market.

1.2 Company’s name:

1.2.1 “Hybrid”

1.2.2 Reasons behind your company’s name.

- “Hybrid” means a plant or animal that has been produced from two different

types of plant, especially, to get better characteristics, therefore, My company name is

“Hybrid” which means I mix two types of cars to get a better car.

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 - Hybrid cars help us to save energy and environment.

- The word “hybrid” is used by the media and industry to refer to engines that are

green and more eco-friendly.

1.3.1 Design of logo:

Picture 1. The company logo:

1.3.2 Reasons for choosing the logo

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- The picture of the tree in the logo means green energy.

- The name “Hybrid” means that I produce hybrid cars.

- It also means ‘green technology’ used in My cars.

The name of the first new brand is called ‘Hybrid-007’ and there are some

reasons for choosing this name:

- The first new brand is called ‘Hybrid-007’ because the name is taken from the

company’s name ‘Hybrid’ and 007 is taken from the famous movie about James Bond,

agent 007 these two things are related to each other because James Bond uses super

cars in the movie which have hi-tech gadgets and they can use even electricity instead

of fuel.

- Another reason is that a lot of people think that 7 is a lucky number that brings

fortune, therefore this will bring extra customer attention.

Picture 1: The design of the first car-‘Hybrid-007’:

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1.4 Vision, mission, and objectives.

Vision: “The Company aims to attract and attain customers with high valued products

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and services and most satisfying ownerships in Pakistan . By offering Hybrid, I make

the life of the people much easier and enjoyable than ever before.”

Mission:

- My main mission is to help the people to get comfortable and affordable

cars

- Save the environment from air pollution by using hybrid cars and making

the life much easy to live in.

- Become top selling cars all over Pakistan .

Objectives:

- To develop the most suitable and affordable cars for people.

- To promote realistic strategic planning of business.

- To improve business models to speed-up car industry.

- To contribute to the safety of environment.

2. Location of the Business.

2.1 Islamabad

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 Islamabad is one of the biggest city of Pakistan among the all cities with the

population of 1.015 million people and the population of Pakistan is 231.4 million

according to the 2012 survey. As the population living in Islamabad consists of people

who earn average and high salaries the demand for cars is higher than other cities and

also Pakistan is one of the richest countries in South Asia. Therefore, starting the

business in Islamabad has many advantages and Pakistan is also a country from

where the company can export cars to other countries more easily. So Pakistan is the

best spot for starting a business as its location is geographically right, therefore, from

Pakistan the company can reach other neighbouring countries like India,, chaina,

Afghanistan and more thus they can buy a lot of cars.

2.2 The best location in the city

The i-9 secter is the best location to open a new car manufacturing company

because in that area there are so many car manufacturing, car selling companies and

many car mechanics companies. In addition, there are many car manufacturing

companies like BMW, MITSUBISHI, COROLA which gives bigger chance to the company

to sell its cars . This gives a better chance of selling cars and promoting the company to

the public. On the other hand, in i-9 secter is very easy to reach the customers without

further delay and this will save time.

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3. Financial Planning

3.1 My company’s budget: RM 8,759,891,772

3.1.1 Fixed Costs:

- List down the fixed assets and determine the cost acquired of each asset.

Description Cost of Per Unit Quantity Used Fixed Cost

of Fixed

Assets

Cost of 10M 1 RM 94,425,900

Building

Factory 1 RM 157,232,000

Computers 12000 RM 70,563,333

Accounting RM 200,000 ------------------- RM 100,000

Software

Tables RM 70 13500 RM 945,000

Chairs RM 60 13500 RM 810,000

Cabinets RM 100 10000 RM 1000000

Permanent - - RM 1,500,000,000

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 Staff Salary

Engineering RM 6240 10000 RM 62,400,000

tools

Robots RM 475036 1155 RM 548,666,666

(KUKA)

Machinery: RM 53542 6500 RM 358,736,900

Total Fixed RM 2,794,879,799

cost:

3.1.2 Variable Costs:

Description: Cost: Quarterly

Electricity RM 333,333

Water RM 333,333

Raw materials RM 148,334,518

Telephone bills RM 166,666

Travel expenditures RM 150,000

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 Advertising RM 500,000

Cost of transportation (Trucks) RM 60,000

Total Variable cost: RM 149877850

The cost of producing 1 car is RM 41,377 and so the company produces 40,000

cars quarterly so the total cost of producing 40,000 cars is RM 1,655,080,000 On the

other hand Total Revenue will be RM 2,440,000,000 if one car is sold by RM 61,000.

3.3.3 Ability to supply materials needed.

These companies can supply the Hybrid Company very quickly and

efficiently.

They have all the necessary materials to produce hybrid cars from the engine to a ready

product.

3.4 Demand and Consumers

3.4.1 Who are your target market/ consumers?

RM 100000. The majority of the people with average income are the youth and middle-

aged people and some old people. These people are concerned with saving the

environment and using green technology so they are willing to buy the cars made by

Hybrid Company. Moreover, they want to save money that they spent on petrol and

other taxes for using a traditional cars.

3.5 Pricing Decision

Hybrid-007’s uniqueness is that it is the cheapest hybrid car in Pakistan and it

has more powerful engine than other hybrid cars produced by other companies.

Specifications of My Hybrid Cars: Hybrid-007

Powertrain engine and performance

Engine 2.0L MIVEC, 4 Cylinder, DOHC 16V

Maximum Speed (km/h) 202 km/h (126 mph)

Acceleration 0–100 km/h

Maximum Output 148 hp (110 kW) / 6000 rpm

Maximum Torque 177 N·m (131 lb·ft) / 4250 rpm

Full tank capacity (Litre) 59

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Tires & Rims 205/60 R16 92H & Alloy – 16" x 6.5JJ

Chassis

Power Steering Hydraulic Power Steering

Macpherson strut with Stabilizer Bar/Multilink Coil Spring with Stabilizer

Brake (Front/Rear) Vent Disc 15"/Solid Disc 14

4. Human Resources

The human resource of a business is responsible for managing the people

related issues in a company. It has the responsibility of recruiting suitable candidates

for company, identifying and meeting the training needs of existing staff. It is ensuring

the employee welfare and employees relations are positive. Existence of human

resource is to ensure the working environment is safe for employees and raising

awareness of current workplace legislation. Human resources carry the responsibility of

recruiting personnel for company. They will decide who satisfy to company requirement

and which position of each employment.

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 4.1 Departments:

The Hybrid car industry is a famous car in the world and almost people like to

use it with the better convenient. It will be established in i-9 secter which is the famous

place in ISLAMABAD. Since, I plan to have a department which divides into small main

parts with their own function. There are 6 departments for My company which are

property department, marketing department, engineering service department, financial

services department, manufacturing department and associate/other investee

companies.

a. Property department:

The property department of a business involves the daily operations at the individual

property level and can include marketing and promotion, tenant screening and selection,

managing rent, coordination of the maintenance and repair function, optimizing building

efficiency and acting as liaison between owners, investors, vendors, and tenants. The

duties and expectations of property managers have grown over time especially as the

downturn of the economy has put an increased focus on the bottom line. The position

increasingly involves a comprehensive understanding of the asset or assets in a real

estate portfolio and the responsibility to lease and management to maximize returns

and insure the real estate's long-term viability.

b. Marketing department.

A company needs to have a marketing department to marketing My product. As the

role of marketing department, it has the responsibility for growing revenue, increasing

market share and contributing to company growth and profitability. Marketing

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department will develop the strategies of selling product, supporting sales and

communicating with external to extend its activities and its market. Marketing

department is also responsible to exchange the services online and manage the amount

costumer from online.

c. Engineering services department:

At Hybrid car industry, the engineering services department is provide technical and

regulatory expertise relating to products safety, emissions, fuel economy, facility

environmental matters and vehicle recycling. With the role of this department to working

with products and manufacturing operations to assure regulatory compliance of Hybrid

products and facilities worldwide, establish regulatory forecast, recommend corporate

policies, and being the external customer interface for all relate matters.

d. Finance department:

The finance department of a business takes the responsibility for organizing the

financial and accounting affairs including the preparation and presentation of

appropriate accounts, and the provision of financial information for managers. The

main areas covered by the financial department will include book keeping procedures,

create a balance sheet and profit and loss account, providing management information,

management of wages and raising of finance. The finance department carries the

responsibility for management of the organization’s cash flow and ensuring there are

enough funds available to meet the day to day payment. It helps to analyse and keep

track of what happening is in economy society as well.

e. Manufacturing department

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This department is also important in business. They are plans and facilities around the world to produce
world class product for customers around the world. And it also ensures flawless and efficient assembly for
the vehicle as well as the production tooling, design and installation. The goal of this department to ensure
best in class quality, flawless launch and manufacturing innovation that will ensure My manufacturing
processes are leading edge, green and sustainable.
f. Associate/other investee companies In a company in which an investor makes a direct investment, more
commonly used in the venture capital vernacular to describe a company in which a controlling interest is
held by a VC firm. In finance, the purchase of a financial product or other item of value with an expectation
of favourable future returns. In general terms, investment means the use money in the hope of making more
money but in business the purchase by a producer of a physical good, such as durable equipment or
inventory, in the hope of improving future business.

There are some restrictions and regulations that are put forward by the Pakistani government. Firstly, there
is limit on the amount of emission of CO 2 gasses that the car produces, therefore, Hybrid’s cars must follow
these restrictions. In addition, government agencies require the company to pay taxes on time and pay the
charges like: for the purpose of executing Form 42B (Evidence of Satisfaction of Charge/Release of Property
or Part of Property from Charge) for the release of a charge.
Anotherrestrictionthathastobeaddressedisthesafetyneedsofthe
customers so the Hybrid Company needs to install airbags in every car. In order to

produce and regulate its business in Pakistan the Hybrid Company should obey these

restrictions and limitations after that the company can become successful and

competitive.

5.3 Challenges and Risks.

When it comes to challenges and risks that the Hybrid Company faces during its

existence these challenges and risks are of higher significance: There are many heavy-

duty companies ready to compete the company, the absolute advantage belongs to

other companies like Toyota, BMW and Honda and lastly, there’s irremediable risk of

going bankrupt.

First of all, in the market of car industry the competition is cut-throat since this

industry brings a great turnover and so the leading companies try to eliminate the new

companies that want to catch their share of the market. Thus the Hybrid Company must

produce the products that are unique and innovative so that it can survive and grow rich

year by year.

Secondly, reputable companies like Toyota, BMW and Honda also produce hybrid

cars and they are the main competitors of the Hybrid Company which also concentrates

on producing the same cars. Moreover, they have already earned customer trust with

their durable and high-quality cars and they can produce more cars spending less time,

that’s the reason why they have the absolute advantage over the Hybrid Company.

Thirdly, there’s undeniable risk of going bankrupt as the stakes are very high in

car industry and market. Therefore, the company should take calculated risks and have

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the clear vision of actions from starting the business until expanding the company after

surviving the challenges and risks initiated by car industry.

6. Funds and Business Types

6.1 Financial Supporters

The Hybrid Company is supported by investors rather than banks because the

investors are willing to risk their money and don’t need the company to return the

wasted money.

6.1.2 Drawbacks of choosing investors

The drawbacks of investors is that they cannot provide financial support at any

time because they also make their money from other companies so when other

companies cannot return enough profit the investors also cannot give support to the

Hybrid company.

Lastly, The Company of Hybrid will be a sole proprietor.

7. Marketing Strategy

The mainstream of Hybrid’s success is credited to the expansion of a steady

marketing strategy, the 'market niche' approach. The company has constructed its

trademark on four main standards, which are:

- Machinery

- Excellence

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- Enactment

- Exclusiveness

7.1 Importance of advertising and marketing your products.

Most of the car industries use advertising to accomplish varied goals, and

companies place those ads in diverse media. Besides advertising products in traditional

venues such as newspaper, magazines, companies advertise in media that reach

specific markets, which makes easy for companies to introduce a new product.

Additionally, advertising provides an effective way to inform the audience about the sale

promotion.

7.2 Methods used in the marketing strategy.

Since My company is new and the way reaching the target it’s long and always

difficult as for so many other companies. Advertisement through TV, Internet, radio,

newspaper, magazines and so many other ways has become useful for all other

business industries. However, My Hybrid car company has decided to generate a

unique way of reaching its target audience. The company has come up with a new

campaign. It’s called “market niche” strategy. In order to attract highly recognized

famous people, such as actors, directors, without letting outside the random people. In

addition to come up with this unique advertising campaign, I also have change the

image of My Hybrid cars. One of the goals was to make Hybrid car to look, not only cool

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but likeable for all the ages, for instance producing cars 80’s style and so on.

7.3 Sales Promotion

Selling a car at the fixed price without doing any promotion, is an ill-mannered

way to behave towards customers. That’s why My Hybrid will make promotion for the

lecturers, low-income earners, and the elderly, the company will give them discounts up

to 10% and will give vouchers so that this can reduce the price for the teachers and

lecturers, low-income earners, and the elderly.

8. Conclusion

In conclusion, the Hybrid Company can be very successful with its innovative

business and marketing strategy in the near future. As the price of oil is getting higher

year by year, the demand for more efficient transport will rise; therefore, Hybrid

Company can be in a win-win situation by producing hybrid cars which are affordable

and durable. Starting business in Pakistan and after getting enough shares in the

Pakistani car market, the company will widen its horizon by selling cars in international

market as well. This will benefit not only Pakistani customers but also customers all

around the world and will also reduce the environmental pollution.

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