An electronic chips manufacturing company is willing to open a new chips production plant to produce micro-chips. The Total investment they have set for such plant is valued at 7 million Dinars (in cash) to be paid immediately. The plant is designed to produce up to 20,000 chips a day. And is planned to commence production in July 2023.

The chip cost of production is at 0.2 BD (Variable cost) and selling price is at 0.7 BD. Other associated cost is valued at 0.1 BD (Fixed Costs). There are no further associated costs. And no debt. Make sure to reflect the taxation rates of Bahrain.

In the case analyses students allowed to use the following resources:

1- Related chapters from the Book

2- Google search engine

3- Lecture Slides

4- All calculation should be supported by excel document.

Given the above, each student is required to develop a business plan that covers the following areas:

1. Project Description: Here you must briefly explain the project, how the blocks are produced (process steps), make sure to show the flow chart of the process, addressing the critical path.

1. Financial Model: you should develop a Profit and Loss (P&L) schedule, showing revenues, operating margin. And Net profit Margin. Explain how could net profit margins could be improved.and the way to improve net profit margin can be in increasing revenues with this company to produce more chips rather than 10,000.

1. Recommendation