"Total Cost of Sales 79,500 117,000 140,400Gross Margin 286,800 495,000 594,000Gross Margin % 78.30% 80.88% 80.88%Expenses Payroll 77,300 142,600 161,596Sales and Marketing 15,030 12,000 14,400and Other ExpensesPublic Relations 2,400 2,400 3,600Utilities 1,800 1,800 2,400Rent 14,400 18,000 19,200Total Operating 110,930 176,800 201,196ExpensesProfit Before Interest 175,870 318,200 392,804and TaxesEBITDA 175,870 318,200 392,804Taxes Incurred 26,380 47,730 58,920Net Profit 149,490 270,470 333,8846.5 Projected Cash Flowst Cash flow projection is one of the important factor to the company accomplishment. The 1 yearprearranged cash flow diagram shows below.Page | 46 Pro Forma Cash Flow Year 1 Year 2 Year 3Cash Received Cash from Process Cash Sales 91,575 153,000 183,600Cash from Receivables 205,695 412,697 527,733Subtotal Cash From 297,270 565,697 711,333OperationsExpenditures Year 1 Year 2 Year 3Cash Spending 77,300 142,600 161,596Bill Payments 139,989 229,073 275,803Subtotal Cash Spent 217,289 371,673 437,399Net Cash Flow 79,981 194,024 273,934Cash Balance 100,381 294,406 568,3406.6 Projected Balance SheetThe balance sheet displays strong growth of net value, and healthy financial positions.Pro Forma Balance SheetPage | 47 Year 1 Year 2 Year 3Current AssetsCash 100,381 294,406 568,340Accounts69,030 115,333 138,399ReceivableTotal Current169,411 409,738 706,739AssetsLong-term AssetsLong-term112,000 259,000 450,890AssetsAccumulated20,000 60,000 75,000DepreciationTotal Long-Term132,000319,000525,890 AssetsTotal Assets 301,411409,738706,739 Liabilities andCapitalCurrent LiabilitiesAccounts17,28918,96623,000 PayableCurrent10,0005,0003,000 BorrowingOther Current2,0001,000500 LiabilitiesTotal Current29,28924,96626,500 LiabilitiesLong-Term100,00090,00080,000 LiabilitiesTotal Liabilities 129,289114,966106,500 Paid-in Capital 70,00070,00070,000 Retained(49,600) 82,123320,773 EarningsEarnings 131,723238,650292,966 Total Capital 152,123390,773683,739 Page | 48 Total Liabilities281,412505,739790,239 And CapitalNet Worth 152,123390,773683,739 7. ImplementationandChange ManagementThere are few steps should be undertaken by STO to implement theirground-breaking businessidea within the Maldives.Task People In Charge Task WeeksNo.01 Marketing Manager Present the project proposal to the management for approval. 1 Month02 Logistics Manager Inform and get clearance from the Ministry of Health, Republic of 15 DaysMaldives03 Marketing manager Send a sample of organicjuice products to management for tasting. 10 Days04 Logistics manager Order juice vending machines, and bottled from China and India. 8 Daysand sales manager.05 IT Manager and Fine tuning the design and printing of the packaging. 10 DaysMarketing Manager06 IT Manager Design banners and posters to be displayed at points of sale and 10 dayssupermarkets as well as other prominent locations.07 Marketing manager Create a TV commercial to be aired before launch. 15 days08 Marketing manager Create a voice clip to be aired on radio channels before launch. 5 days09 Marketing teamGo to schools, universities, supermarkets, train stations, airports, etc. 20 daysto promote and create awareness about the organic juice products10 IT Manager E-mail digital banners to be printed4 days11 Marketing manager Start showing STO organic drinks and juice barthrough commercials 10 daysand radio voice clips.12 Marketing team Brief all salespeople on good communication with customers and on 3 dayshow to sell the product. Inform them of their points of sale.13 Sales team and Go to all selected locations and set up banners and posters 5 daysSalespeoplePage | 49 14 Logistics manager On the day of the launch, make sure juice bar and employees 2 dayshave the necessary items.Sales, marketing and Meet all employees after the first day (launch) and check if all went 1 days15Logistics managers. well.16 Events Manager, Promoting continuously through promotional activities and in public 1 monthMarketing Manager events.and Accountsmanager.17 Marketing, Sales, Have and end-of-year meeting to discuss progress, issues that arose 7 daysFinance, Logistics and make changes for the next year.and HR managersChange ManagementChange management will be mainly undertaken by adapting an established model and modifyingthe same in accordance with the requirements of the organization. Kurt Lewin’s model of changemanagement will be implemented for the organic drinks on the go by STO. The model providesa simple framework to manage the change, of three main phases, namely, Unfreeze; change;refreeze, often completing a cycle in a continuous process.The first phase of the change management is the unfreeze stage. This will enable a small pause inthe operations of the sectors which are derived as the strategic business unit from the parentalorganization. The unfreeze phase occurs in the parental organization in establishing the strategicbusiness unit. Human resources, physical resources and to an extent the financial resources ofconcerned areas are halted during the phase. The change is within the strategic business unit after its establishment where the establishment ofthe business takes place. The phase is more fluid in nature due to an array of invariabledeterminants concerned. The phase of change may take up to a period of one year as a substantialperiod of time is necessary to establish the business onto sustainability. Page | 50 "