Organic Veg

ORGENIC VEG ENTREPRENEURSHI P
University of Education 1

EXECUTIVE SUMMARY
Organic veg is nursery that is specific for those people who are vegetarian and health
conscious and like to eat pure vegetables. Organic veg also has concern about the purchasing
power of the consumer thats why they target the middle class. For last few years the trend of
using organic food is increasing due to the high volume of nutrition rather than inorganic.
This is located at the heir pind. Organic veg will offer customers organic vegetables at home.
Organic veg provides such home base setup to customers which only providing fresh organic
vegetables but also the annual cost on food.
The organic vegetables that we are offering in the organic this setup are the seeds of chili,
dhanya, saag, onion, carrot, Spanish, lady finger, tomato. Ginger, Fenugreek, Peas,
Turnip,potatoes. These home grown products are basically grown with organic biomass,
pesticides, herbicides, so the seedling and seeds receive natural nutrition from the environment.
Organic Veg will be a full time venture and will be opened 7 days a week for the customer
convenience. It will remain open from 8:00 a.m till 10:00 p.m. Organic veg is operating under
partnership and four partners are going to start this venture.
The finance required for the organic veg is 15 lakh, where 12 lakhs are invested and remaining
amount use as a backup. The setup price for consumer is 12500 rupees for 800 sq/feet.
There are some obstacles and risks involves in the venture, which includes suppliers, employees
and the wastage of seedlings. Organic Veg will be a full time venture and will be opened 7
days a week for the customer convenience. It will remain open from 8:00 a.m till 10:00 p.m. If
we compare the cost with the values which the customer can get from the organic vegetables is
so much higher.



ORGANIC VEG
INTRODUCTION:
Nature is full of blessing for the human beings. Since the beginning, fresh fruits and
vegetables are always liked by the human beings. Even in today environment, growing better
tasting, nutritious and fresh vegetables from home gardens is the prime motivation for all of us
which are rich in vitamins, flavor and nutritious value.
In the time of economic stress, people are returning to the home cropping in order to save
money and guarantee that they will always have fresh vegetables to eat. The only thing people
need to limit is the seasonality and locality while grow these at their home gardens.
COMPANY DESCRIPTION
The Organic veg will be a vegetable nursery to provide a wide range of favorable
seasonal vegetables seedling and seeds with in Lahore. The basic purpose of this nursery is:
Sell highest quality vegetable seedlings and seeds with excellent customer service and
support.
Replace the community inorganic vegetables with home grown organic vegetables.
Providing excellent customer service and support
Providing technical support for the protection of their home based crops

MISSION:
The mission of organic veg is:
Our aim is to provide the widest possible selection of high quality organic seedlings
and seeds of different vegetables and motivate people to grow fresh, pure, high
quality and totally organic vegetables in their homes. With our expertise support
our customers will definitely get vegetables of their daily usage. We build relationships
with the consumers so we can continue to meet their changing needs and requirement.



VISION:
The vision of organic veg is:
Our vision is to sustain profitable growth by making people self sufficient
to grow and consume 100% organic vegetables.
OBJECTIVE:
The objective of organic Veg is:
Organic veg will makes a unique contribution in home base farming
By supplying the best organic vegetables seedlings and seeds for the
Consumer to get proper healthy diet
VALUES:

Improve the health:
The nutritious values of organic food are higher than inorganic, which balances the level
of required nutrient, nourish skin and makes the immune system stronger. Basically organic
veg is helping the society to reduce the diseases associated with exposure to poisonous
chemicals in inorganic foods.
Safe and natural
Organic vegetables are free from health harming chemicals such as pesticides, fungicides
and herbicides.
Environment protection
We have discovered through research at our nursery that Organic crop process requires
no needs of fertilizers therefore it emits less greenhouse gases and hence considerably more
climate friendly. Organic veg provide such self sufficient setup which discourages such
practices that are harmful for the health and environment.



Protect Future Generations
Organic veg is enthusiastic to protect the future generation by providing them a healthy
environment and pure nutrition. Organic practices at home not only help to provide pure
nutrition to our upcoming generation but also help to protect them by the harmful effects of
fertilizers, pesticides, herbicides and fungicides.
Rich in Flavor
All human being have the sense of taste that allows them to distinguish the quality of the
food they ingest. Organic veg provides the best organic vegetables seedling and seeds that
people can grow and enjoy the finest taste available in the environment to them.

FORM OF BUSINESS
Organic veg will be start with 4 members partners under the partnership Act.

OWNERS/ PRINCIPALS
The following are the owner/principals of organic veg
Maryam Mustafa
General Manager
Flat no. e/170 Ali view garden ,Lahore

Aisha Khan
Sales Manager
241 A1 johar town, Lahore

Chandni Saleem
Operational Manager
Jamal Agri services Mustafa Town, Lahore

NAME OF BUSINESS:
The name of the venture is ORGANIC VEG which basically shows the product
which nursery will provide.



LOGO:
The logo of organic veg is

START DATE:
It will be start in the mid of august 12, 2013 so that people start buying the seedlings
and seeds in that months and utilize the pure home grown organic vegetables afterwards.
BUSINESS OPERATION:
Organic Veg will be a full time venture and will be opened 7 days a week for the
customer convenience. It will remain open from 8:00 a.m till 10:00 p.m. So even the job holders
can come after their working hours to buy the seedlings and give orders. From 8:00 a.m till 10:00
p.m Organic veg will sell seedlings and seeds of seasonal vegetables, provide home delivery
services with the guidance of expert gardeners to select the appropriate place for vegetable
growth and other issues.
LOCATION:
The location of Organic Veg is in Heir pind Lahore.



CONTACT INFORMATION:
The contact information of organic Veg is
HEIR PIND(main badian road)
Lahore, Pakistan
Tel: 0324-9441559
Email: Organicveg@gmail.com

PRODUCT DESCRIPTION
Organic veg products are basically grown with organic biomass, pesticides, herbicides,
so the seedling and seeds receive natural nutrition from the environment. It is grown in home
gardens using natural methods that are suitable in favorable seasons. We aim to ensure the
availability of organic vegetation in urban areas.
Our products are convenient in the sense that it can grow in home gardens, roof tops, pots
and even in wooden crates and allow consumers to obtain fresh vegetables from their home
gardens instantly to cook according to their requirement.

STANDARD SET PACK CONTAINS
The standard set pack of our package contains:
Seedlings and seeds
Organic pest control syrup
Decomposed soil
Wooden crates
Plastic sheets
Coal tar
Greenhouse shed sheet
Instruction Manuals (English and Urdu)



GAP IDENTIFICATION
Organic food consumption has increase in the past 10years. Now even in Pakistan people
are becoming more and more conscious about the health and the nutrition value they are getting
from their food. In food, vegetables are preferred and act as a major source of getting nutritious
values. People know the value they are getting from organic vegetables is far above the inorganic
vegetables they are currently consuming. Mostly people do not have the budget to go 100%
organic vegetables consumption. Therefore we will be the first who are launching an organic
nursery outlet organic veg which enables people to grow organic vegetables in their home of
best quality within their budget.

LOCATION ANALYSIS
Social changes:
Now in Pakistan people are moving towards more and more organic food consumption
which increases the concept of organic farming. This will have a direct impact to alleviate
poverty by providing large scale employment to unskilled semi-skilled labor.
Environmental changes:
Pakistans natural resources are increasingly under stress due to a rapid population
growth and environmental unsustainable practices. In Pakistan, the irrigation of crops requires
heavy water requirements which have 20 million tons of river salts that inversely affect the crop
yields.
(3)

The acidity of soil in Pakistan is rising due to the increase in PH level. The researches
showed that the soil PH level should be maintained at 7- 9 point but due to industrial waste and
excess use of fertilizers the PH level of soils raise to about 11 point.
Demographic Changes:
During the past few years the people of Pakistan have improved their life style pattern.
The ways of consuming their time, energy and money has changes dramatically during the last 5


years. The people are becoming more health conscious therefore, expanding more on their
health. Similarly, their ways of daily routine have changed, now people are expanding their time
on health recreational activities as gardening. The changes in the way of their expenditures are
given below:

Life style
indicators
2006 2007 2008 2009 2010
Consumer Expenditure (US$
million)
93,617.51 106,442.71 109,598.51 124,223.65 128,765.70
Annual Disposable Income
(US$ million)
96,560.34 109,304.25 112,492.13 127,216.89 131,896.32
Consumer Expenditure on
Food (US$ million)
38,035.37 42,309.94 44,229.35 50,388.18 52,199.52

Technological Changes:
The agricultural sector represents 20 percent of the GDP. The continuous improvement in
technologies helps the agricultural sector to fulfill the demand of increasing population. The
technologies in yield cropping include Irrigation system (Drip irrigation), Fertilizers (Effective
microorganisms technology), Monocroping and e.t.c. On the other hand the improvement in
technology (i.e. pest syrup, garlic pyrethrum) of organic cropping production reduces 50%
expenditure on fertilizer and energy and 97% on pesticides.
(4)



SWOT ANALYSIS:
The SWOT analysis of industry is:
STRENGTHS

1. Local farming systems
Pakistan is an agricultural country and most of the farming tools developed locally. On
the other hands Pakistan is one of those countries who have large and well maintained irrigation
systems through canal and rivers.
2. Large labor force
Pakistan is the world 6
th
country with largest population. In Pakistan most of our
population lives in villages. So most of the people are directly or indirectly linked with
agriculture which means that agricultural sector has a large labor force.
3. National organic movements
There are some trust organizations in Pakistan who are working for the development of
organic culture. For example in Lahore Shirkatgah is a welfare organization who conducts
research on the home grown vegetables.
4. Low cost of production
In Pakistan there are four seasons which makes the land fertile and more suitable for the
agriculture sector. Due to this natural climate the cost of production is low.
5. Availability of technologies for organic production
Farming and agriculture are the oldest activities performed by human. Therefore with the
passage of time some innovation and techniques develop to practice these activities. Organic
vegetables basically demand the natural or traditional practices so in Pakistan the natural and
traditional practices are available for the organic vegetables.



6. Strongly motivated and committed organic sector
Recently tends of organic vegetable is increasing in past few years and people are more
motivated to grow and eat natural.
WEAKNESSES
1. Poor marketing image
In agricultural sector, the organic sectors is still behind because people are not aware of
these practices even they do not know the true meaning of organic food because of poor
marketing.
2. Education and extension system
There are only few institutions in Pakistan who are giving agricultural education degrees.
On the other hands in Punjab only one research institution is working on it.
3. Lack of resources
The agriculture sector has uncertainties due to lack of resources because most of the
financial resources are wasted on non productive activities by the government.
4. Lack of reliable data and information on organic agriculture
Lack of reliable data occurred due to institutional weakness because that the secondary
researches are not upgraded.
5. Poor local market opportunities and infrastructure
Poor infrastructure, such as a lack of good roads, electricity and the communications and
technology facilities exist in Pakistan that are needed for improved market information flows.
6. Difficulty in cropping
Some of the crops are very difficult to produce because they need a lot of care. They are
highly sensitive and easily attacked by most of the insects which might washout the whole crop.



OPPORTUNITIES

1. Availability of pure land
In Pakistan there is so much land which is still unused and clean so we can easily utilize
it.
2. Increasing interest in organic agriculture
Now in Pakistan people are becoming more health conscious so, there is more
opportunity to grow organic vegetable and develop such nurseries that provide that system that
energize people to grow organic food at home.
3. Increasing local awareness of benefits of organic foods
There is an opportunity to increase the awareness among consumers and policy makers
about the potential benefits of organic foods for health, environments, economies and income
generation.
THREATS
1. Crop wastage
The vegetable market in Pakistan are not well managed that why there is a threat that
most of the vegetables and other eatable became wasted.
2. Mismanaged government policies
The governments policies are mismanage. They are investing very low in agriculture
sector while imposing high taxes on agriculture products which increases the threat of reducing
agricultural businesses.
3. International competition
Our agriculture is far behind in technologies and process of production which increase
the threat of international competitors having low cost production processes in Pakistan.
(5)



KEY SUCCESS FACTORS:
The key success factors of agricultural sectors are:
Pakistan is blessed with the vast natural resources and covering various environmental and
climatic zones that is a great assets for agricultural sector.

Pakistan has one of the highest proportions of irrigated cropped area in the world. About 27
percent area of Pakistan is currently under cultivation.

The forward and backward linkages of agricultural sector to the domestic economy, to the
international trade and with employment are very strong.

Pakistan has abundant labor that can be utilized at cheap rate. Especially in agricultural
sector the farming community is so high as compared to other sectors.

Pakistan has one of the most fertile soils in this world due to the presence of Indus valley in
this region.
(6)

The irrigation system of Pakistan is the largest in this world. Currently, it includes 3 large
dams and 85 small dams with 19 barrages to fulfill the water need. In Pakistan, almost 75%
of the agriculture is covered by the irrigation system.

Unlike other sectors Agriculture credit is regularly supervised by the State Bank of Pakistan
therefore agriculture credit advisory committee meets every six months and ensures credit
delivery.
(7)



MARKET SIZE AND TRENDS:
Over the number of years people are shifting towards organic vegetables due to the
changes in their life style pattern. The changes in the consumption pattern of people of Pakistan
are shown in the following graph:

SOURCE: GOOGLE ADWORDS
It shows that the consumption of organic vegetables trend started in 2006 and further
increase in 2007. The organic vegetable consumption was higher till 2008 but at once decline in
2009 due to the flood in Pakistan. At the end of 2009, the consumption of organic vegetable
again increased to more than 40% and is still continuously increasing.

MARKETING STRATEGY:
COMPETITIVE ANALYSIS:
In our business there are some indirect competitors and some of them are direct
competitors.
DIRECT COMPETITORS
Following are our direct competitors because they are providing organic seeds, seedlings,
vegetables and the equipment.



All Plant nurseries
In Lahore there are huge number of plant nurseries which are providing seeds and
seedling of different inorganic vegetables. Not only had this they are providing some set up for
lawns in homes
1. Organic farms:
In organic farm, our main competitors are:
2. Roshni organic farms (30 years ago)
It provide organic bakery products to different restaurants
3. Daali organic farm:
In Lahore there are also some organic farms at Baydian Road which are producing organic
vegetables like daali organic farm has its own outlet for organic buy product in the main market
Gulberg.
AGRI SERVICES
In Agri services the competitors includes:

1. Haji sons (4 years)
The products provided by Haji sons are:
Seeds
Seedlings
Agri equipments
Importing seeds

2. Aryain Agri Corporation
The products provided by Aryain Agri corporation are:

Organic seeds
Organic seedlings
Gardening equipments


In Lahore there are some shops of agri services which are providing all the seeds of different
seasons along the equipment.
INDIRECT COMPETITORS
The indirect competitors of organic veg include:
Organic food shops
Organic food suppliers
Vegetable shops
In different areas of Lahore there are many food shops and their suppliers are in direct
competitors.
MARKET SEGMENTATION:
A division of market into different homogeneous group of potential customers is known
as market segmentation. While for organic veg we only define segmentation on consumer
bases:
Consumer Market Segmentation:
This is a market segmentation in which we make customer profile that are consuming
vegetables according to their Geographic, Demographic, Psychographic, and Behavioral
patterns. This shows us the trends and the changing responses of our customers.
Geographic segmentation:
The target market of organic veg is in Lahore. In Lahore the climate is suitable for the
production of the organic vegetables and even the population is quite high and health conscious.
It is the second largest city after Karachi with population of 10,000,000 and the growth rate of
this increasing population is 3.10% in 2011. So, there is a large, potential customer in this
geographical area.



Demographic segmentation
Organic vegetables are for consumed by people of all ages which include males and
females. The educated people like doctor and other professionals who have some knowledge of
vegetables go for the nutritional values of them. The organic vegetables are quite expensive
rather then the inorganic vegetables. It generally assumed that people with high income level
afford it. According to the define area of our venture the people are generally have Rs.20, 000
thousand monthly income. They fall in the middle class according to the economic survey. Our
aim of the business is to decrease the annual vegetable expense of the people while increase
nutrition values.

Psychographic segmentation
People living in Lahore are habitual of eating food outside their houses but due to this
unhealthy food and the complication in the form of diseases occurred by them they are now
looking for something natural desi to eat which provide them proper nutritional values.
Behavioral segmentation
The behavioral segmentation of the people is depending upon the purchase behavior of
the vegetables. According to our research the people in Lahore are generally buy vegetables in
weekend holidays and they have no concern from where they are buying it, they only just look
for their own convince. But they are more concern that the vegetables must be fresh.

TARGET MARKET:
Age Range: All the people consuming vegetables
Income Range: 30,000 and above (according to the economic survey of Pakistan)
Family status: A standard family of 4 to 5 people.
Occupation: Preferably working class.



PRODUCT DESCRIPTION:
Generally all the people who are consuming vegetables are our market but after dividing
the customer into different subset we selected the people of middle class according to their less
disposable income for purchasing vegetables. We selected a standard family of 4 to 5 members.
Preferably, the working class is in five locations of Lahore (DHA, Askari town ,Allama Iqbal
Town, Mustafa Town, Muslim Town and Wadhat Colony).
In these area people have small houses and less disposable income. Within their less
income they want such food which contributes healthy affect on their health. We are giving them
such home base setup for growing organic vegetables within their income for food. If we
compare the cost with the nutrition values of organic that is far much high rather then inorganic.
On the other hand by developing our setup of growing organic vegetables they will save quite
reasonable amount of money annually. Our unique services and our home base setup with in
their purchasing power will influence target market to make purchasing decision for our
business.
The four seasons in which we are providing the product are:



SERVICE OR PRODUCT:
Organic veg is providing the seeds and seedlings of vegetables that are placed in the consumers
home. The nursery is offering the package of 4 seasons in a year with different vegetable
combinations.
PRICING STRATEGY
The pricing of organic veg depends upon the product as well as services. The strategy used by
Organic Veg is price skimming because we are providing home base organic vegetable setup.
PRICING FOR A PRODUCT:
A product total charge yearly is Rs. 2464 and for Season 1 is Rs. 964 and Services that are being
provided to the consumers are of the total cost of Rs. 830 Labor:
Employee Salaries: Per Person Total
2 permanent Gardener
6000 12000
1 Guard
5500 5500
1 Part Time Gardener for 48 days
300 14400
2 Part time Labor for 48 days
300 600
5 Nursery Representative
7500 37500
Total
19600 70000

The total yearly cost associated with the labor is Rs.70, 000.
1. Overhead:
The overhead represents the total operating expenses of the year. Here we take the year
2013 which has of the amount of Rs. 840245
2. Materials:
The material and equipment charges of Customer is of Rs. 7363
3. Profit Margin: The profit margin of Organic Veg is 45%.


PRICING CONSIDERATIONS:
High:
Organic Veg is following the strategy of Skimming pricing that will leads towards the
high charging of the prices from customers.
Clients perception of value:
Clients observation regarding the value that is given by the Organic Veg is that it will
satisfy the need of the consumer. The organic vegetable development at home will leads toward
the saving of approximately Rs.40, 000 per year.
Organic Veg are not providing any type of discounts to the clients but in future (after 3
years) it will be focusing on the issuance of Membership cards that will provide reduction in the
package prices.
LOCATION:

Organic veg will be located in the area that caters the middle class consumer community
which includes:
Mustafa Town
Allama Iqbal Town
Wahdat Colony
New Muslim Town
Model Town
DHA


Costs associated with location:
The costs (all are in Rs.) that are associated with location are Security cost and Rental Cost. This
is shown as:
Cost associated: PRs
Nursery Rent 12,000
Nursery Security 24,000

MARKETING IMPORTANCE OF THE LOCATION:
The major importance and the benefit of choosing the above location are:
Model town area is one of the famous areas for nurseries with in Lahore.
It will provide customer convenience as initially we will be targeting the residential areas that
are coming from the locality of Mustafa Town, Allama Iqbal Town, Wahdat Colony and
New Muslim.
The infrastructure of Model town is better as compared to other middle class areas
Residential location:
Residential area refers to a place where people live. Organic Veg will not be in the
commercial location, it will be situated in the place where the customers get convenience in
finding and reaching that location.
FACTORS AFFECT METHODS OF DISTRIBUTION:
Sales:
The sales will increases as we make order through kiosk that contains the painting of our
logo and small description of our products. Kiosk will be handled by the sales representative. He
will not only give awareness for further growth but also used to take orders for seed bed
preparation, seed sowing, etc for houses.


Services:
The services that are being provided by organic veg is to visit the consumer houses on
weekly and monthly basis. This help organic veg to increase their positive positioning which
in turn increases their distribution area with in Lahore.
Promotion:
The promotion organic veg that affect the methods of distribution are:
Brochures that contain the important aspect of vegetable related issues
Kiosk that contains the logo of our nursery that is used for taking orders from consumers and
get awareness of organic vegetable consumption to them

Timing:
Timing affects a lot on the method of distribution because nobody can wait long for
product manufacturing. The venture will have to provide the vegetable on right time (within the
sowing period). Therefore, the company needs to make its distribution network strong as they get
more consumers.
Economic:
The economic effect of organic grown vegetables at home is the cost efficiency. Cost
efficiency refers to the cost reduction in consuming the organic vegetables. As per the research
of Sherkat Gah the organic vegetable cropping in 6000 sq feet at home will save
approximately Rs.20, 000 per year.
PROMOTION STARTEGY:
Organic Veg will be a small and medium size venture who needs to make awareness
about the product they are providing to the customers because middle class people in Pakistan
want organic vegetables but do not really aware about the benefit they are getting from it in form


of heath and finance. Therefore, after analyzing the trends organic Veg develop a pull strategy
to make the people aware about their product. The following are the ways through which the
company is promoting its products:
1. FLYERS
Organic Veg management will use the flyers to promote their product as flayer is cost
effective for small business development within their target market. This also helps to generate
responses in a short span of time. We use the green color which is close to the nature in flyers
which continuously influence customer buying decisions and opinions. They will be swapped
with newspapers in different areas through the news paper hackers.
The total cost of 1000 flayers is Rs. 800
The target areas for flayers are Mustafa town, New Muslim town, Garden town, Allama Iqbal
Town
The Distribution coverage for flayers is Wahdat road, Canal road, Sheikh Zaid road, Dubai
chock
This promotional or advertisement medium sends information about organic Veg for One
week.
SOME OF THE PROMOTIONAL TOOLS ARE SHOWN IN EXHIBIT 1
2. MANUAL
The second method that will use for the Organic Veg is manuals. Manual are some how
expensive as compare to the other methods. Manual only focuses on our particular products. It
will mention all the product packages for our potential customers. We will send this manual to
our customers on seasonal basis.
The cost of manual is Rs. 2500
The target areas for flayers are Mustafa town, New Muslim town, Garden town, Allama Iqbal
Town
The Distribution coverage for flayers is Wahdat road, Canal road, Sheikh Zaid road, Dubai
chock


3. WEBSITE
In future organic Veg will promote its product through the website. This is a sure way
of making your business known amongst the online community and will aware them about
Organic Veg product and services in low cost.
The Cost of website is 1200
Target market for website is online community
The Distribution coverage through website is the people who are doing online business.

4. BUSHEL BOXES STAMP AND INK:
Organic Veg will also use stamp advertisement on bushel boxes. These are given to the
entire consumers who buy the product from organic Veg. In this method, organic Veg places
the stamp on the bushel boxes containing venture name and contact number. It enables the
venture to increase its promotion through words of mouth in all the areas in which in it selling.
The annual cost company have to bear on it is Rs 700. The target areas for bushel boxes stamp
and ink are mainly consumers of Mustafa town, New Muslim town, Garden town, Allama Iqbal
Town.
5.KIOSK
Organic veg will use kiosk for the promotion. In this method, one sales representative
will be available in kiosk and provide specific information and take orders from customers. The
position of kiosk will be changed on weekly basis to target all the locations. It also sells the
organic seedling if the customer demands. The cost of manufacturing and placing the kiosk is Rs.
4000 which will be placed in Mustafa town, New Muslim town, Garden town, Allama Iqbal
Town.



ORGANIZATIONAL STRUCTURE:

LEGAL STRUCTURE:
Organic veg will be start with 5 members partners having equal share. Under the partnership act
1932, we are registered in the partnership at- will.
Partnership at-will: -
The cores of a partnership at-will are the following:
The partners do not limit the duration of their partnership,
They are free to break their relationship at any time.

The partnership deed signed by all the partners of Organic Veg is given in (exhibit 3)

HUMAN RESOURCE MANAGEMENT:

In human resource management, organic Veg will allocate organizational structure,
staffing plan, salaries and their job description and specification as given below:

ORGANIZATIONAL STRUCTURE/ STAFFING PLAN:

The organizational structure or staffing plan of organic Veg includes:

1. Full time:
Organic veg is a retail nursery that sells directly to the general public. Two caretakers
of the seedlings in our nursery are the full time workforces and five sales representatives are
hired for running day to day operations.



2. Part time:
Part time workers are one gardener and two labors that were hired on the starting of any
season when the demand of our product were so high. They were hired so that all the processes
will be effectively managed.

3. Guard:
One guard will be hired for night shift for the security purpose of our nursery.

FINANCIALS
ORGANIC VEG INVESTMENT:
At the beginning, organic veg owners is making an investment of 15lakh for starting their
venture. In this they are expanding 12 lakh on the venture and 3 lack is deposited to save the
business if any loss occurred.

BREAKEVEN:
The formula for breakeven is:
=Fixed Costs / (Selling Price per Unit - Variable cost per unit)

The fixed cost of nursery is: 1018925.833
The selling Price Per unit for nursery is 12499
The variable Cost per unit for nursery is: 6874
Breakeven in units 181

This showed that "organic veg have to sell its packages to 181.15 to 5 Marla houses.
These might be the combination of 5 Marla, 10 Marla = two 5 Marla houses or 1 kanal = four 5
Marla houses


CRITICAL RISK
POTENTIAL PROBLEM:
Organic veg can face multiple problems. Some of the potential problems are given below:
1. Crop failure:
Nature has is an important factor in the nursery business. It might be possible that climate
change became a cause of the failure of crop. The increasing effects of global warming on the
agricultural climate in Pakistan are posing huge problems for the people. Due to the increase in
temperature and the scarcity of adequate rainfall, Organic Veg might face a severe crisis of
fluctuation in the seasons.
2. Raw material:
The suppliers of Organic veg might increase the price of raw material due to the
increase in prices of raw material. So the increase in price will create the problem for organic
veg because they have to reduce their margin profit they were getting.

OBSTACLE AND RISKS:
The obstacles and risks faced by Organic Veg are:
1. Change in the government regulations
In Pakistan the political situation is really depressed. They are continuously changing
policies which are indirectly effect the plant nurseries like the increase in the prices of electricity,
increase wages limit, lack of infrastructure, lack of research institution etc. Due to these,
Organic veg will also be affected as they have to bear more expenses of raw material, tools and
etc.



2. Customer involvement
Customer involvement is one of the major risks. This might be the case that customer will
not involved to purchase this type of organic setup at home after getting all the information and
promotion because they are more concern about their work.
3. Backward integration
Backward integration of supplier is also a risk for organic veg as they have capacity of
developing this kind of nursery.
EXIT STRATEGY:
The exit strategy that will be followed of Organic Veg is Acquisition. The reason for
selection this approach is that it will provide a better way to make a profit and success as the
identity and ownership remains identical in this process. In this type of method the combination
of both businesses will leads to the profitability by acquiring the business processes, customers,
technology or even employees are working jointly.
Our nursery will make Acquisition with any nursery that is interested and dealing with
seed, seedlings and the organic vegetables. Through making this joining we will enable to
enhance the profitability and also increases the sales.
CONCLUSION:
For starting any venture people have to face many obstacles therefore, they need to
provide some things that differentiate among competitors. In starting organic veg the most
attractive feature they are providing are their seasonal services. It identifies the target markets in
the areas of model town, wahdat road, and mustaffa town and promotes their product through the
flayers, kiosk and manual. Similarly, organic veg is making a power full strategies form price,
product package and distribution tat helped it to become successful in todays environment.



REFERENCES
1. http://pakgardening.iforums.us/list-of-plant-nurseries-vt3.html
2. http://jia.sipa.columbia.edu/role-politics-pakistans-economy-0
3. http://www.adb.org/documents/assessments/country-environmental/pak/country-environment-
analysis.pdf
4. http://www.euromonitor.com/factfile.aspx?country=PK
5. http://www.unep-
unctad.org/cbtf/events/dsalaam2/day%203/SWOT%20ANALYSIS%20OF%20ORGANIC%20A
GRICULTURE%20IN%20OTHER%20AFRICAN.pdf
6. http://www.tbl.com.pk/indus-basin-irrigation-system-of-pakistan/
7. http://irrigation.punjab.gov.pk/pmiuindex.aspx
8. http://www.finance.gov.pk/survey/chapter_10/02_Agriculture.pdf
9. http://docs.google.com/viewer?a=v&q=cache:Fy69EP615zoJ:journeytoforever.org/farm_library/
worthington-
organic.pdf+nutritional+value+organic+vs+inorganic&hl=en&gl=pk&pid=bl&srcid=ADGEESi
AQ6t4hRH1lm9XlTJWnz_obSA39PNwUhz0qLKsqAQIkAtdznU3sxziO905hNkuC1JC-
LSm3ufw32bUt0CsPS0vdhu252ZCWbQr91aI2ONrQqY6nq0fiNuBg-
x1Pxt3Va1PxNku&sig=AHIEtbS2XfXl_9_gjrUfB6-j7L0NMUhOaw&pli=1

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