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Vision and mission
Mission and vision statement of the organization have been developed in the following
manner.
Vision
To integrate real life businesses with simulations in best way possible.
Mission
To increase business efficiency without wasting single penny
Main business
The main business that we are targeting is providing simulation services to the students of
management sciences department and in the future to the corporate level employees of
organizations.
In this business, we will provide different scenarios to the students and will ask them to take
decisions in those certain situations. For this purpose a complete document outlining the rules
to be followed and techniques to be used in the simulation training will be provided to the
trainees at least a week before the simulations will be carried out. On the basis of the data
provided in those documents, the trainees will take certain decisions and data regarding their
decisions will be fed in the simulation software. This software then on the basis of the data
put in will tell about the efficiency of the decision been taken in the form of future
projections and the effect of these decisions on these future projections.
Values and principles
The basic values that we following are
Being profitable while staying true to our mission
Providing our customers with satisfactory training
Inducing rational approach in the trainees
Staying true to our customers
Providing our customers the strategic evaluation abilities
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Considering the contribution that we would like to make to society in the coming
future
Uniqueness of our business
So far in Pakistan no company is providing simulation training. The only trainings that are
being provided are in the form of seminars and in the office trainings. Considering the above
factors, our company will be the first one in Pakistan to provide such exercises and trainings.
More over as it is prominent from our vision and mission that we have the capability of
providing trainings to trainees without wasting any capital.
The tradition that is prevalent in Pakistan is companies invest in decisions and then find and
evaluate whether it is profitable or not. Contrary to this situation, we would help different
universities and firms to understand that how different aspects should be weighed when such
sort of decision is to be taken.
In short we have the capability of establishing real life scenarios for the trainees to make
decisions.
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Business and industry profile
Industry analysis
Over the past few years more and more students are turning to management sciences
education and fields affiliated to it because of the versatility available to the students after
doing such sort of degree. A student doing BBA or MBA from a business school can look for
a job or can start his or her own business.
In the light of the above facts, the market that we are targeting is expected to increase in
future. Moreover because of the profit margin and potential target market available more and
more companies are expected to emerge in the near future.
Moreover as the market is un served right now, because of the increasing demand and
potential monopoly we can charge our customers the prices of our desire and can cover our
cost quickly. By doing so we would be able to decrease our prices in the future to force our
competition out of the market and would be able to maintain our monopoly.
As said before due to increasing profit margin we have a good probability of having highprofits in the future.
Key success factors
Following are our ksfs
Personal attention for customers
Trained and motivated employees
High quality
Consistency of services
Friendly and empathetic staff
Besides these KSFs we would try our best to satisfy our customers in the best way possible.
Goals and objectives
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Business strategy
For any business to operate in the environment, it needs to be very much clear regarding how
it is going to tackle with the competitors in the market. For our business the business strategy
is as follows.
Image of our business
We as a company are portraying image of simulation solution providers. For organizations
and universities that are trying to provide their employees and students with real life tinge
without wasting capital, we are the right company for them to contact.
Position in customer mind
As discussed earlier we would like to position ourselves as a simulation solution provider in
the mind of the customer. We portray our image as a company that would take care of our
clients and would provide them with personal attention and satisfaction. Personal attention
means that we would try our best to customize our processes according to the needs of our
customers and satisfaction in the sense that we would try to provide our customers with the
best training and facilitating services possible.
Competitive strategy
The competitive strategy that we are following is focus. Under this focus strategy we have
identified a certain niche in the market. This niche has further been divided in to 2 parts. In
the first phase we are targeting one of the part of niche that is the students who are graduating
and receiving MBAs degree from different universities.
Once we have completely captured the university part of our niche, then we will set out to
target the other part that is the corporate level executives of organizations functioning.
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For this purpose we have closely monitored the needs of our target niche universities". We
have identified that the universities want to provide their students with practical experiences
but do not have enough capital to practically build different businesses in real life to provide
students with opportunities to learn. Moreover it is not their responsibility and is also not
practically feasible to develop businesses on such large scale for the sake of providing
trainings to the students. So keeping in view the above stated requirements of universities we
are using such softwares with the help of which simulated businesses will be generated and
the students will be asked to take decisions for effective performance of these businesses.
This will provide an opportunity to the universities to provide their students with real life
experiences without making huge investments.
Similarly we will provide opportunity to organizations to train their corporate employees to
take critical decisions without the fear of losing investment.
SWOT analysis
We will SWOT our company in the following manner.
Strengths Weaknesses
Educated staff ! Inexperienced staff
High Motivation ! Limited Capital
Defined business plan ! No PR
Urge to learn ! No history for customer
Opportunities S / O O / W
Un served mkt Use educated staff to serve un served mkt Serve mkt to gain experience
Chance of monopoly Use business plan to create monopoly Develop PR to create monopoly
Demand Learn how to force competition out
No direct competition Use motivation to fulfil demand
Threats S / T W / T
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Expectation Use educated staff to meet expectation Develop PR to meet expectations
Building demand Use business plan to cope uncertainty Use limited capital to meet
Uncertainty uncertainity
Instability of economy
Company products and services
The product that we will be offering to our customers is the training services that we will be
providing to our customers.
Description of our services
We will be providing training services to our customers. In these trainings, we will beproviding our customers with the skills of taking the most efficient decision in the situations
called for it.
We will provide different scenarios to the trainees and will ask them to take decisions in
those certain situations. For this purpose a complete document outlining the rules to be
followed and techniques to be used in the simulation training will be provided to the trainees
at least a week before the simulations will be carried out. On the basis of the data provided in
those documents, the trainees will take certain decisions and data regarding their decisions
will be fed in the simulation software. This software then on the basis of the data put in will
tell about the efficiency of the decision been taken in the form of future projections and the
effect of these decisions on these future projections.
As a result the trainees will be able to identify the effect of this decision on their future
conditions. The effects of decision of factors such as the finances of the company, human
resource of the company, marketing and other departments.
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Benefits for customers
The benefits that our customers will receive from our services are
Rational skills to evaluate different options
Team leading skills
Decision making skills
No capital wastage
Strategy making skills
Crisis and conflict management skills
Organization development skills
Uniqueness
The nature of our business is in itself unique as it has not been implemented practically in
Pakistan up till now, so this service is being provided for the first time in Pakistan.
Some of the universities like Lahore University of management sciences are providing these
services but there are no such company working in Pakistan whose sole formation is based
for the purpose of providing these services. So our organization is the first one in Pakistan.
Patents or trademark protection
We are not developing any new product or service instead we are providing trainings and the
software that we are using, we have developed a contract with the developers of the software.
According to this contract they are going to provide us with the software for which they have
obtained a copyright and we will use it in return for money.
As far as copyright and trade mark for the incorporation of the company and name of the
organization is concerned, we have received a letter of commencement of business for the
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registration department has been received and we have been given the right to use the name
of the company.
For the website we have purchased the domain name of the company in return for a fee and
has the right and authority to use it.
Future services
In the coming future we would include certain other aspects in our training facilities such as
training regarding
Quality assurance
Quality of work life
Diagnosis of the organization
Moreover as newer fields will continue emerging we will in cooperate them in our training
services as well.
Marketing section of business plan
In this section we are going to discuss the four main Ps that are included in marketing that
are
Product
Price
Placement
Promotion
In order to define the above stated factors we have to first identify the situational factors that
are residing with respect to our product.
Situational analysis
Over the past few years, the field of management sciences has seen new heights and
challenges. With increasing interest of youth to adopt management sciences as their career
path, the level of competition has been all time high.
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With the changing trends, the old yearly systems have been replaced by new and improved
semester systems in which students are given more and more experience and tinge of real life
that how things are done in real life.
Adding to the above aspects is competition from students who go abroad to obtain education
and then come back to serve people in Pakistan. The main difference between them and
students graduating from Pakistan is their experience and knowledge with respect to practical
implementation and research work.
As a result universities in Pakistan are trying their best to educate the students at level
comparative and competitive with the international standards.
Customer analysis
Up till now considerable amount of research has not been done in this particular field
however, as discussed in the prior section, with increasing competition students want to be asmuch practical as they can be within the limited resources available and for that the
simulations that we are providing will help them in the fullest sense to the maximum extent
possible.
Target market
Initially, we are targeting all the universities that are offering MBA and BBA across the
province of Punjab and Islamabad. If we add these up the universities that we are targeting
are as follow
If the number of students coming put from these universities are added up, it would give us a
target market of around 15000 to 16000 thousands students. For the time being we can say
that we are targeting a niche completing their business degrees around Pakistan.
Market will shrink or expand in future ?
If we would evaluate the conditions, the trend over the past few years show that our target
market would grow with the passage of time and we would have more customers to capture.
Moreover we can also serve the corporate sector in future that is we can target the corporate
management of big organizations and can provide them training in future.
SWOT analysis (customer point of view)
From the eye of customer we can SWOT our organization in the following manner.
Strength
Educated and qualified staff
Collaboration with international simulation company
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Well defined plan and products
Weaknesses
Inexperienced staff
No past history
Limited capital
Opportunities
No direct competition
Un served market
High demand
Threats
Conventional frame of mind of people
Changing economic conditions
Uncertainty
1. Pricing strategy
As we have already discussed that there are no direct competitors of ours in Pakistan as for
now. So we have un tapped sources of revenue that we can use to reach our breakeven point
as soon as possible.
In the later stages if any new competitor would enter the market, we would have the first
mover advantage and we will be able to force out our competitors with the help of decreased
prices because of economies of scale.
High
price
Low
EconomyPenetration
Skimming
Premium
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Low quality High
In the light of the above data the pricing strategy that we are going to use is skimming that is
we are going to skim as much revenue as possible in the beginning and then we will use
penetration strategy to grab and capture more market.
Cost structure
Our basic cost structure will be based on the following costs
Cost of software
Overheads ( projector, fuel etc)
Fee of trainer
Miscellaneous costs
Member ship
For those institutions that would sign contracts with us we would give them 5% discounts of
the accumulated charges.
2. Placement
We have decided to place our office in blue area in one of the buildings. This decision has
been made because of the following reasons.
High traffic area
Proximity to all the universities of Islamabad
An ideal location to start a business
Main stream business location of Islamabad
Easy to identify
3. Promotion
The following means will be used for the purpose of promotion of our products
Our website
The main tool that we are going to use to promote our products will be our website. With the
help of this website we will not only promote our products but we will also sell them.
Collaboration
We will also collaborate with different universities to promote our product. It will be a part ofour PR activities that will be carried out with different universities.
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Advertisement in newspaper
Advertisement in the Sunday news papers will be given in order to promote our product.
Advertisement on face book
The last tool that will be used is advertisement through face book.
Distribution
One of the main factor that can be considered about any service is that it cannot be separated
from its providers. Keeping the same point in view the distribution of our service will be
done in the form of the trainings that will be given to different customers.
LOCATION
The location that we have chosen is Blue Area Islamabad to setup our office
GEOGRAPHIC IMPORTANCE OF LOCATION
Its a commercial area
Easily accesable for major universities
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Helpful for future expansion plans regarding providing corporate training as offices of
many business organizations are there
LEASE RENTAL RATE
30000 per month
Size requirement
For the time being as we have just started two rooms offce is enough for us so we have leased
a two room office on rent
Plan of operations
Forio is the name of software that we have acquired for this purpose costing us 5.99$ per
student
The location of training sessions depends on the customers where they want to arrange it
For the start we have decided to have 7 pcs and 6 laptops for our own use in office and
laptops for training session
LABOR
Includes
Managers marketing
Manager finance
Manager HR
Manager operations
2 sweepers
2 peons
1 security guard
1 IT expert
FORM OF OWNERSHIP
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We have chosen partnership 6 partners are there with following percentage
Ali raza 20%
Qasim ejaz 20%
Salman khan 20%
Hamna Khalid 20%
Naqi husnain 10%
Muhammad umar 10%
REASON
We are all students and lack financial resources and combine we can contribute the cost that
is required to start the business as we are starting on smaller scale so cannot think of
corporation at this time
DECISION MAKING AUTHORITY
It will be decentralized each manager of a particular field will take decision connected to that
respective field
COMPENSATION AND BENEFIT PACKAGE
There will be profit sharing to the extent of investment percentage in the business
Competitor Analysis
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The competitor analysis for our product can be done in the following manner.
Existing competitor
There is no such organization in Pakistan that has started for the sole purpose of providing the
services that we are providing. The competitor to simulation solution can be done in the
following manner.
Direct competitor
As said earlier there are no such companies in Pakistan that are providing simulation services
to universities and companies. So our target market will not have competitors to compare us
to.
Indirect competitors
Few universities like Lahore university of management sciences and institute of business
administration are providing these services but they are not providing these services for the
purpose of doing business instead they are using it to train their students. As a result we have
a huge market that we can capture.
Potential competitors
A number of people are thinking about entering this market. Among these are a group of
entrepreneurs from COMSATS University. More over LUMS and IBA can also see the
potential and can decide to enter the market in future.
As a result of these universities entering the market, our target market will be divided and
because of their names and reputation and goodwill that they have developed over the past
few years it is quite possible that the customers will switch over to them.
Impact on our business
As discussed above, if these universities would start providing these services professionally
in future simulation solution will have tough competition and the market will be divided.
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Human Resource Department
I as the manager of the H.R department will be outlining the major HR developments and
perspectives which are necessary to keep our consultation firm on the run.
Key managers and employees:
In this section I will highlighting our key departments, their managers and our employees
Finance department
The finance department is being supervised by Qasim Ejaz and Salman khan. Along with
these supervisors there are 5 employees working in the finance department which look after
the organizations finances and financial aspects.
Marketing department:
Marketing department is being headed by M.Ali Raza and Naqi hussain.
Operations
Operational department is also a very active department of our organization. Its being
supervised by M.Umer.
HR department:
H.R department is being headed by Hamna Khalid.
MANAGERIAL PROFILE:
1. QASIM EJAZ:
Qasim Ejaz is a graduate from COMSATS University Islamabad with a degree in
bachelors in management sciences. He has majored in finance. In his educational
career he has done many finance related projects for example the Ratio Analysis and
Comparison on Two listed companies and has also wrote finance related research
papers
1. SALMAN KHAN:
Salman Khan is a graduate from COMSATS university Islamabad with a degree in
bachelors in management sciences. He has also majored in finance. He worked on many
portfolio investment and credit management related projects in his educational career.
2. M.ALI RAZA:
M.Ali Raza is also a graduate from COMSATS university Islamabad with also a degree
in management sciences. He majored in Marketing. In his educational career he did many
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marketing and advertising related projects. He wrote a business plan for opening a inter
university radio channel and has also wrote many research papers related to marketing.
3. NAQI HUSSNAIN:Naqi Hussnain is a graduate of COMSATS University Islamabad with a degree in
bachelors in business administration. He has majored in Marketing. He has also been
affiliated with marketing related projects which includes a creation of business plan for
opening a Youth Club in Islamabad and also for opening a business consultancy firm.
M.UMER:
M. Umer Khan is a graduate from COMSATS university Islamabad with a degree in
bachelors in business administration majoring in Operational management. He has
worked in many operational management and TQM projects and has also wrote many
research papers related to it
HAMNA KHALID:
Hamna Khalid is a graduate from COMSATS university Islamabad. She has also acquired
a degree in business administration majoring in human resource management. She has
worked on many HR related projects, has also conducted a training session on job skills
and wrote many human resource management related research ppers.
JOB TITLES;
Qasim Ejaz Finance Manager
Salman khan- Sr finance Analyst.
M.Ali Raza- Product Manager
Naqi Hussnain- Advertisement Head
M.Umer- Executive Team Leader, Operations
Hamna Khalid- Executive recruiter and HR head.
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% ofPartnership
Particulars % Ammong partners Particulars
M.Ali Raza 203,00,00
0
Qasim Ejaz 203,00,00
0
M.Salman Khan 203,00,00
0
Hamna Khalid 203,00,00
0M.Umar 10
1,50,000
Naqi Hussnain 101,50,00
0
Total15,00,0
00
ExpenseSheet
Particulars Rs.
Software cost
Initial cost 8600
Semi Annually 4300
Per person 515OfficeEquipments2 LaptopsCompaq
1,00,000
2 DesktopComp 30,000
Office Furniture etc
1,00,0
00
marketing exp3,00,0
00
Office acquiring cost3,00,0
00advancepayment
3 MonthAdvance 90,000
per month rent 30,000
Hall Charges 20,000
Total9,82,9
00
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Cash Flow Budget Worksheet
[Month]
Beginning Cash Balance 1500000.00
Cash Inflows (Income): 2712778.00
Sales & Receipts 7500000.00
Total Cash Inflows 7500000.00
Available Cash Balance 9000000.00
Cash Outflows (Expenses):
Advertising 300000.00
Maintinance 40000.00
Depriciation 20000.00
Miscellaneous 40000.00
Professional Fees 100000.00
Rent or Lease 120000.00
Utilities & Telephone 250000.00
Travell 120000.00
Direct Labour 216000.00
Hall Charges 750000.00
Taxes 1003356.00
Subtotal 2959356.00
Other Cash Out Flows:
Capital Purchases 2577866.00
Subtotal 2577866.00
Total Cash Outflows 5537222.00
Ending Cash Balance 3462778.00
SIM SOL
Income StatementFor the period ended jan 01 To 30th
April 2010
Revenue:
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SIM SOL
Balance SheetFor the period ended jan 01 To 30th
April 2010
Rs. RS.
CURRENT ASSETS:
Bank 10,00,000
Cash 17,12,778
Accounts Receivable .
TOTAL CURRENT ASSETS 27,12,778
PROPERTY & EQUIPMENT:
Fixtures & Equipment 1,00,0002 Laptop 1,00,000
2 Desktop 30,000
Prepaid Rent 90,000
NET FIXED ASSETS 3,20,000
TOTAL ASSETS 30,32,778
CURRENT LIABILITIES:
Notes Payable .
Accounts Payable .
Accrued Expenses 529422
Taxes Owed 10,03,356
TOTAL CURRENT LIABILITIES 15,32,778
STOCKHOLDERS EQUITY:
M.Ali Raza 20% 3,00,000
M.Salman Khan 20% 3,00,000
Hamna Khalid 20% 3,00,000
QasimEjaz 20% 3,00,000
M.Omar 10% 1,50,000
Naqi Hussnain 10% 1,50,000
TOTAL NET WORTH 15,00,000
TOTAL LIABILITIES AND NET WORTH 30,32,778
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