Question
Mr. Amaan has agriculture lands in Faisalabad, Sargodha and Gujranwala. In total, he owns 16 Acres of land in all the three cities, 10 Acres
Mr. Amaan has agriculture lands in Faisalabad, Sargodha and Gujranwala. In total, he owns 16 Acres of land in all the three cities, 10 Acres in Sargodha, 4 Acres in Faisalabad and 2 Acres in Gujranwala. The lands in Faisalabad is worth Rs. 2 Million per Acre, the land in Sargodha is worth Rs. 19 Million per Acre and the lands in Gujranwala are worth 75 Million per Acre. He wants to start a fruit farm where he wants to plant oranges. He has also found out that Sargodha is ideal for oranges, in Faisalabad, oranges can be grown, but underground water is not feasible, and Gujranwala is not at all feasible for oranges. Amaan wants these fruit farms to be his bread and butter. To start these fruit farms as business, Amaan needs to strategize his plans and needs help in feasibility report. You, being the qualified students of entrepreneurship are assigned the task to calculate the complete feasibility for Amaan. Before you advise Amaan with the feasibility, you need to keep the following guidelines in mind.
i. Please keep in mind that oranges have various types. Not all the types of the fruits can be planted in every area. Please search on the web for these types so that it is easier for you to calculate the feasibility.
ii. In each orchard one can plant approximately 100 trees per acre of oranges. 11-08-2020 Spring-2020
iii. To plant the trees, two seasons are ideal. First October/November and the second is February/March. October/November is usually recommended by citrus research institute. iv. It is also recommended that the orchards are given fertilizer and insect sprays three times a year each costing different prices. Please see the guidelines attached along with this paper. You can see the prices of the insect sprays and type fertilizer on the internet.
v. Employees (one employee for four acres) are usually hired to look after the orchards at the rate of Rs. 10000/- per employee.
vi. In every season, the leveling of the land is required which costs approximately Rs. 25000 per anum.
vii. The electricity bill is estimated to be Rs. 10000 per month and gas is not provided to the area yet (electricity is only provided in the living house and not in the agriculture land). viii. Currently the farm does not have any vehicle but will require one. ix. The first fruit usually comes after 4 years and the first fruit is usually shunted and not sold in the market. This allows better growth of the tree. The fruit in the fifth year is considered to be sold in the market.
x. Total of 4 bags of nitrophos per Acre, 2 bags Sulphate of Potash per Acre, 2 Bags of Urea, 4 bags of Ammonium Nitrate and 2 bags of Zinc Sulphate are required per Acre.
xi. The price of DAP fertilizer which contains ammonium and phosphate is approximately Rs. 3300 per 50 Kg bag, the price of Urea which contains nitrogen is approximately Rs. 1100 per 50 Kg bag and Sulphate of Potash which contains potassium is approximately Rs. 2800 per 50 Kg bag. Please look at the procedure of fertilizing the orchard in Figure 1, but is necessary to give all the fertilizers mentioned in point x.
xii. Total of three sprays for insecticides, one spray for disease and two anti-fungal sprays are necessary. The sprays in three seasons cost approximately Rs. 10000 per acre.
xiii. The small equipment such as motor based sprayer needs to be bought. One sprayer costs Rs. 20000 and can cover up to 10 Acres in one day. While spraying on the plants it is not necessary that spray on all the lands are done in the same day, but it is recommended.
xiv. A tractor is also needed. You may look at the price of the tractor on internet, but the fuel it costs is approximately Rs. 20000 per anum
xv. Amaan also needs a one bed residential structure with attached bath and kitchen. This has one time approximate cost of Rs. 500000
xvi. Usually one Acre of orchard is sold in the wholesale for Rs. 200000 depending on the condition of the oranges in the orchard. This is the gross income. xvii. The total taxation in Rs. 500 which is to be given to the government for the water supply. xviii. Initially Amaan does not have any liquid asset to initiate his ambitions and have recently left his job to fulfill his dreams.
+ ( ) 6 + 2 3 12 3 14 3 12 Analyze if the venture proposed above will be feasible by answering the following questions: What do think Amaan should do to gain the capital? Suggest the capital structure which can provide maximum benefit to Amaan to establish his orchards. Keep this in mind as well, that he has no experience of orchards and will be doing it for the first time. ii. Prepare the financial flow, income statement and financial feasibility which can provide financial projection for the feasibility of this orchard. Describe every decision that you take and any supporting document like financial plan and income statement etc. just copy paste any table in Appendix of the answer sheet which appropriate headings. iii. Develop a marketing strategy which will enable Amaan to capture the market substantially across Pakistan. This strategy will encompass most of the things that you studied during your course. Justify that the marketing strategy will help Amaan to capitalize the orange market in Pakistan. iv. Identify the potential risks, weigh those risks and plot them in PxI martrix + ( ) 6 + 2 3 12 3 14 3 12 Analyze if the venture proposed above will be feasible by answering the following questions: What do think Amaan should do to gain the capital? Suggest the capital structure which can provide maximum benefit to Amaan to establish his orchards. Keep this in mind as well, that he has no experience of orchards and will be doing it for the first time. ii. Prepare the financial flow, income statement and financial feasibility which can provide financial projection for the feasibility of this orchard. Describe every decision that you take and any supporting document like financial plan and income statement etc. just copy paste any table in Appendix of the answer sheet which appropriate headings. iii. Develop a marketing strategy which will enable Amaan to capture the market substantially across Pakistan. This strategy will encompass most of the things that you studied during your course. Justify that the marketing strategy will help Amaan to capitalize the orange market in Pakistan. iv. Identify the potential risks, weigh those risks and plot them in PxI martrix + ( ) 6 + 2 3 12 3 14 3 12 Analyze if the venture proposed above will be feasible by answering the following questions: What do think Amaan should do to gain the capital? Suggest the capital structure which can provide maximum benefit to Amaan to establish his orchards. Keep this in mind as well, that he has no experience of orchards and will be doing it for the first time. ii. Prepare the financial flow, income statement and financial feasibility which can provide financial projection for the feasibility of this orchard. Describe every decision that you take and any supporting document like financial plan and income statement etc. just copy paste any table in Appendix of the answer sheet which appropriate headings. iii. Develop a marketing strategy which will enable Amaan to capture the market substantially across Pakistan. This strategy will encompass most of the things that you studied during your course. Justify that the marketing strategy will help Amaan to capitalize the orange market in Pakistan. iv. Identify the potential risks, weigh those risks and plot them in PxI martrix + ( ) 6 + 2 3 12 3 14 3 12 Analyze if the venture proposed above will be feasible by answering the following questions: What do think Amaan should do to gain the capital? Suggest the capital structure which can provide maximum benefit to Amaan to establish his orchards. Keep this in mind as well, that he has no experience of orchards and will be doing it for the first time. ii. Prepare the financial flow, income statement and financial feasibility which can provide financial projection for the feasibility of this orchard. Describe every decision that you take and any supporting document like financial plan and income statement etc. just copy paste any table in Appendix of the answer sheet which appropriate headings. iii. Develop a marketing strategy which will enable Amaan to capture the market substantially across Pakistan. This strategy will encompass most of the things that you studied during your course. Justify that the marketing strategy will help Amaan to capitalize the orange market in Pakistan. iv. Identify the potential risks, weigh those risks and plot them in PxI martrix
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