1 | P a g e

F 9.27%

m4.0763%

EASIBILITY REPORT

FEASIBILITY REPORT Market Viability Test of SAE in Bangladesh

2 | P a g e

Feasibility Report

Market Viability Test of SAE in Bangladesh

Report Published by DeltaBay

3 | P a g e

\

Research Team

Sayed Mizanur Rahman

Head, Department of Journalism & Mass Communication

Director, Career Development Center

Daffodil International University

Md. Ejaj-Ur-Rahaman, MBA (AIS)

University of Dhaka

Lecturer

Cambrian College

Ex-Trainee at ACNABIN, Chartered Accountants

&

Farhana Yasmin

Student (Level-1),

Institute of Cost & Management Accountants of Bangladesh

(ICMAB)

Feasibility Report Market Viability Test of SAE in Bangladesh

Report Published by

DeltaBay

All rights reserved by DeltaBay, Bangladesh

4 | P a g e

Abstract I

Chapter 1 Introduction 1-3

Chapter 2 Service Description 4-11

Chapter 3 Promoter/Licensee 12-14

Chapter 4 Market Assessment 15-29

Chapter 5 Competition Analysis 30-33

Chapter 6 Technology Viability 34-35

Chapter 7 SWOT Analysis 36-39

Chapter 8 Socio-Economic Impact 40-41

Chapter 9 Financial Analysis 42-43

Chapter 10 Conclusion 44

Chapter 11 Appendices 45-49

CONTENTS

5 | P a g e

CHAPTER 01 __________________INTRODUCTION

I

NTRODUCTION

6 | P a g e

Bangladesh as a nation turns 41 in 2012. This report will review the trends and

developments of media industry in Bangladesh in the last four decades. The report will

also try to forecast here the trends of the media industry in the coming decade after which

Bangladesh will be a 50-year-old nation. By analyzing the trend of the aforementioned

industry we will test the viability of establishing SAE Institute, the largest institute in the

world providing media education.

Broad objective

To analyze whether the establishment of SAE Institute (the largest media institution in the

world) in Bangladesh will be feasible or not

Specific objective

To find out the current market demand for media studies

To analyze the level of competition in media industry

To test & report the technical feasibility

To analyze the critical risk factors that might affect the business and to suggest

the ways to mitigate them

To report the economic effects through the aforementioned project in Bangladesh

To analyze the financial feasibility

The sample population of 95 selected for the study was limited to students enrolled in

Faculty of Media studies and Journalism and covered 4 universities (ULAB, Daffodil

International University, Stamford, Dhaka University), 3 colleges (Imperial College,

Dhaka City College, Dhanmondi Boys School),

1.2 S cope of the Study

1.1 S tudy Objective

1. INRODUCTION

7 | P a g e

4 TV channels and 2 radio stations thus to generalize the entire population of media

industry and beyond its border is severely limited. The sample however is similar in nature

to the population that attends other universities, colleges, TV channels & radio stations

and can thus be generalized.

This study had been completed by following systematic and sequential steps. Firstly, the

research problem was formulated. Secondly, an extensive survey had been taken place to

gather relevant and required literature. Thirdly, working hypothesis was developed.

Fourthly, a research design had been determined. In the fifth stage a sampling technique

had been chosen which is called non probability judgment sampling. Sixthly, both the

primary and secondary data was collected. At the level of seventh step collected data were

analyzed arranged as per the study demands.

Primary Data:

The primary data has been collected from original sources by the investigator through field

operations. The primary data are those which are collected a fresh and for the first time

and are original in character. So, the primary data are assembled from the first hand field

investigation.

Primary Data Sources:

The sources of primary data were high schools, colleges, universities both private and

public, TV channels, radio stations, newspaper houses etc.

Primary Data Collection Method

To collect primary data most popular and convenient questionnaire method was used.

Three set of questionnaire has been designed on the basis of multiple choice question and

a few questions got the dichotomous format.

The survey includes personal interviews, statistical and published information in target

area, and informed opinion of knowledgeable people. We divided the responded in three

group – Respondent 1: Target customer (Students Studying HSC, Students Studying

Bachelor & Masters, Professionals at Media Houses) Respondent 2: Professionals (to

assess the current media situation) Respondent 3: Competitor (Current students studying

Media studies and employee working in rivals institute)

1.3 M arket Research Technique

8 | P a g e

Sampling Technique

To gather primary information a sample size had been determined from a population by

selecting a sampling technique named judgment sampling which is non-probability

sampling.

Sample Size: The sample size of the study as follows:

4 HR Manager of private TV channels

18 employees of different TV channels include producer, broadcast

engineer, camera man, news controller and others.

26 current media students.

57 target customer (students of colleges and universities)

A total of 95 respondents answered to the questions asked.

9 | P a g e

CHAPTER 02 __________________SERVICE DESCRIPTION

S

ERVICE DESCRIPTION

10 | P a g e

2.0

2. SERVICE

DESCRIPTION

SAE Institute is the world‟s largest international network for media training in

audio engineering, digital film production, interactive animation, games

programming and multimedia. It is a private college and was established in 1976

by sound engineer, record producer and business man, Tom Miser which later

grew with a network of more than 50 colleges in 6 continents worldwide including

middle-east.

C

Europe North America Latin America Asia Australia Middle East Africa

2.1

SAE Institute Location

orporate Profile

2. SERVICE DESCRIPTION

11 | P a g e

Continents & Campuses Europe Europe North

America

Latin

America

Asia Australia Africa

Amsterdam Istanbul Atlanta Mexico Bangalore Adelaide Cape

town Athens Cologne Chicago Bangkok Auckland

Barcelona Leipzig Los Angels Chennai Brisbane

Berlin Liverpool Miami Jakarta Byron Bay

Brussels Ljubljana Nashville Mumbai Melbourne

Belgrade London New York Singapore Perth

Bochum Madrid Sans

Francisco

Bangladesh* Sydney

Bucharest Milan Middle East

Frankfurt Munich Amman

Geneva Oxford Dubai

Glass glow Paris Jeddah

Stuttgart Rotterdam Qatar

Vienna Stockholm

Zurich

Today, more than ever before, solid training, careful practice and creative thinking will

give students the edge in the competitive media industry. These qualities are the

hallmarks of our programs, and are the main reasons why students choose to study at

SAE. We offer innovative teaching techniques, state-of-the-art equipment and a

complete package of courses.

Above all, our graduates have the large international network to support them in

finding employment and making contacts within the industry. Our qualifications enjoy

world-wide recognition and acceptance. All SAE Institutes are equipped with the best

technology which is only available for use by our students.

SAE Institute is the only media Institute with a network of over 50 campuses

world-wide

SAE Institute guarantees you individual "hands-on" practical time

2.2 C ontinent Wise Campuses

2.3 SAE Uniqueness

12 | P a g e

SAE Institute has a unique practical way of teaching with over 30 years‟

experience

SAE Institute offers recognized university degrees

SAE Institute offers accelerated learning format programs, earn your degree in 2

years

SAE Institute has an impressive track record with highly successful graduates

SAE Institute guest lecturers are leading industry professionals

Students of SAE can relocate (transfer credit) to any SAE campus world-wide

SAE Institute limits the enrolment to guarantee individual equipment access

SAE Institute maintains an international job placement programme for our

graduates

SAE Institute has an active alumni association to further help our graduates

Online Graduate College provides post graduate courses from Masters to Doctorate

Graduates have been nominated and received many international awards

Diploma Level

•The Media Technology Diploma is an intensive and comprehensive qualification that covers all aspects of Creative Media, Audio Technology and Digital Film Making. The content and structure encourages students to learn the theoretical background of the topics covered and to apply their knowledge to the production process with a high standard of creativity and technical ability.

Bachelor of Arts (Honours) Degree

Level

•Honours degree, emphasizing creative media project work, is an ideal pathway to Masters and other postgraduate studies.

Master of Arts Degree Level

•Direct access to postgraduate studies through SAE Online.

2.4 D egree/Programs Offered

13 | P a g e

01. ANIMATION

01.1. Diploma in Animation Arts (Animation for Games – DAG)

Animation and games have come a long way since the monotone pixels of Odyssey and

Pong. Successive generations of hardware has opened the doors for more closer to life

gaming experience; and with technology ever expanding the storytelling possibilities of

the medium has the animation and gaming industry hunting today for animators who can

redefine the capabilities of the digital screen. Our 18 month program is designed to open

up the world of animation and gaming for the students by developing skills tailor made to

create next generations of gaming experience. This is drawn out in three semesters- six

months each. Subjects under diploma in animation -

Fundamentals of Drawing

Principles of Design

Scripting & Storyboarding

Narrative & Character Development

Principles of 2D Animation

Advanced 2D Animation

Design for Interactive Entertainment

Principles of 3D Modelling

Game Level Design

Advanced 3D Animation

Digital Audio and Video Production

Communication Design

Long Term Courses

01. Animation 02. Film 03. Audio

Diploma in

Animation Arts

Diploma in Digital Film Making Diploma in recording Arts

Intensive course in

Animation

B.Sc in visual communication B.Sc in visual

communication

Certificate course in Television

production

Certificate course in

Electronic Music Production

2.5 C ourses Offered by SAE

14 | P a g e

01.2 Intensive Course in Animation

This is a specialized course which focuses on key areas of 3D Animation from ideating

concept to rendering a full-fledged 3D animated movie. The course is divided into four

specialized areas of a 3D Animated Movie Making;

Preproduction for Animation

3D Modeling

3D Animation

Post Production

In preproduction students are introduced to sketching and developing backgrounds and

characters for the 3D Animation. Digital painting helps them to convert these dream

sketches into Digital art works which can suitably be drawn into Animation with well-

planned script and story boarding. The Preproduction lay the foundation to create amazing

3D backgrounds in 3D Modeling and Animation Modules to follow, where the students

learn to transfer their creative imagination to 3D outputs in terms of Character modeling,

Props, Environment and animating them manually with keys and simulation. No animated

film is effective without scintillating effects and audio synchronization which will be

exposed in their last module, Post Production. Overall the students will be introduced to

3D Animation Film Making process and their production pipeline.

Intensive course on Animation (ICA) guides students and customizes the software

applications such as Maya, 3DsMax, Mudbox, Motion Builder, Combustion, Photoshop

and Premier to create effortless animation and make your imaginations come true.

02. FILM MAKING

02.1 Diploma in Digital Film Making

From script to screen, SAE's Digital Film Making course is a comprehensive, rigorous and

demanding program that focuses on developing the fundamental skill-set for an

Independent Filmmaker. It emphasizes cinematography, editing and sound design across

both film/video based and animation-based products. Each student writes, produces directs

and edits a number of projects, then screens them and engages in constructive discussion

and critique. Typical projects include Television Commercials, Music Video, Short Film,

Documentary, Narrative Short Film etc.

02.2 B.Sc. in Visual Communication

Writing for Media, Aesthetic and Techniques of Cinematography, Audiography, Radio

Broadcasting, Environmental Science, English.

Duration: 3 years

15 | P a g e

02.3 Certificate Course in Television Production

SAE's television production course is designed to bridge the gap in the industry in getting

the best television trained talents to work in the medium. Currently, there is no course

matching our Television Production course, in equipping the students will all necessary

skills to work in a full-fletched Television Programme in various genres, straight after

getting their certificate, because this is the only course which trains students on-hand on

how to be involved in the A-Z creation of a Reality Show, a Game Show , a Serial or a

talk show, while also learning the processes, the creatives and technologies behind it, both

in indoor and outdoor production

03. AUDIO

03.1 Diploma in Recording Arts (Audio Engineering)

The recording arts program is an intensive audio training that covers every aspect of music

and audio production from tracking to mixing to mastering.

The course has 11 modules including Introduction to Basic Studio Studies, Studio

Equipment, Music Theory, Advanced Studio Studies, Digital Recording Basics, Recording

& Mixing, Acoustics, Post Production, Advanced MIDI and Post Production. This course

also enables the student to acquire a substantial portfolio in the form of their assignment.

03.2 Certificate Course in Electronic Music Production

Electronic Music Production

If students are passionate about music and think you have the potential for music career,

then maybe it‟s time you signed up for our Electronic Music Production course. It‟s a

ticket to enter the world of jingles, music videos, ring tones and mobile entertainment.

EMP trains you in the production of different genres of music using various technology

and software. Comprehensive knowledge of music, mixing on a console, EFX and more

are imparted, both theoretically and practically in three stages.

Short Term Courses

Studio Assistant Course

Film Assistant Course

2D & 3D Graphics Certificate Course

Video & Audio Editing

3D Animation - Maya Certificate Course

16 | P a g e

Country-wide/Local:

After completing graduation/masters/certificate courses/diploma from SAE Bangladesh

one will be considered as an eligible candidate to build up his/her career in any TV

channel, Print media, production house as a -

4.26

23.4

29.79

17.02

4.26 4.26

10.64

AudioEngineering

Film Making DigitalJournalism

Animation BroadcastEngineering

SoundEngineering

Web Design

Potential Students Intersted to Enroll in (%)

2.6 S urvey Says

Director/Assistant Director

Production Designer

Editor

Scriptwriter

Producer

Line Producer

Camera Operator

Lighting Operato

Studio Sound Recordist/Engineer

Live Sound Engineer

Mastering Engineer

Broadcast Engineer

Audio Post-Production

Music & Dialogue Editor

Location Recordist

Music Producer

2.7 C areer Options

17 | P a g e

Career Options in Abroad (World-wide):

Career Options in Outsourcing:

Graduates can choose his/her career as a self-driven entrepreneur and can do the job

seating in bed room through internet as an outsource professional. The world is waiting for

the experts and ready to remunerate the adroits for their potentials where location doesn‟t

matter.

Director/Assistant Director

Production Designer

Editor

Scriptwriter

Producer

Line Producer

Camera Operator

Best Boy

Lighting Operator

Film 3D Modeller

Rigging Designer

Motion Capture

Animation Web Designer

Texture & Scenery Design

Film Animation Executive

Production Manager

Storyboard Artist

Consultancy, Education & Careers

Animation

Studio Sound Recordist/Engineer

Live Sound Engineer

Mastering Engineer

Broadcast Engineer

Audio Post-Production

Music & Dialogue Editor

Location Recordist

Music Producer

Audio

3D Modeller

Rigging Designer

Motion Capture

Animation Web Designer

Texture & Scenery Design

Film Animation Executive

Storyboard Artist

Consultancy, Education & Careers

Studio Sound Recordist/Engineer

Live Sound Engineer

Mastering Engineer

Broadcast Engineer

Audio Post-Production

Music & Dialogue Editor

Location Recordist

Music Producer

3D Modeller

Motion Capture

Animation Web Designer

Texture & Scenery Design

Film Animation

Consultancy

Career Options in a Nutshell (in home & abroad):

18 | P a g e

CHAPTER 03 __________________LICENSEE/PROMOTER

L

ICENSEE + PROMOTER

19 | P a g e

About Us

London,

UK__________________________________________________________________

Delta Bay began its journey in 2004 being one of the proudest partners of the British-

Asian Community‟s audio-visual media. From the very beginning, Delta Bay almost

inevitably captured the market through its expertise in making television commercials.

Delta Bay has worked effectively with most of the remarkable South Asian business

organizations in Britain.

By the unique presentation and creation of Britain‟s most respected award show‟s logo,

crest, graphics and presentation, Delta Bay has gained everyone‟s attention. Delta Bay has

successfully worked at Europe‟s biggest Bengali new year celebration.

Dhaka,

Bangladesh_____________________________________________________________

In Bangladesh, Delta Bay began its journey in 2009 with the idea of creating programs

introducing international formats. Each production of Delta Bay has become an

exceptional combination of the latest media technology and modern ideas. From LIVE

events to Reality Shows or documentary, Delta Bay workers have got an identical

expertise in all these areas. Therefore, Delta Bay provides assistance in research; planning

and overall technical support to individuals or organizations across the world who wish to

make documentaries or different TV productions in Bangladesh

Delta Bay Offers

World Standard Television Productions

International TV Format Rights (Bangladesh)

Research & assistance for International TV & Film Producers / Bangladesh

Specializes in large studio based shows

Leadership in field of edutainment and studio based productions

3. OFFICIAL LICENSEE

3.1 O fficial Licensee and The Promoter

20 | P a g e

1st time in the history of Bangladesh

Delta Bay brought an International Franchise program

MasterChef is a television cooking game show

originated with the UK version of the show in 1990.

DeltaBay brought its license and will be broadcasted

soon.

"Idol" is a reality show worldwide to find out young

talent. This “Idols” have aired in more than 129 series,

in about 43 territories in the world. Day by day it is

becoming famous in the whole world. Delta Bay

Distribution and Production bring the franchise "Idol"

in Bangladesh.

3.2 D eltaBay Owns Licensee of

21 | P a g e

Delta Bay - Offering Universal Standard of Entertainment

In every single year DeltaBay produces such a three mammoth program in Bangladesh.

Along with those reality shows DeltaBay have affiliation with number of TV channels. In

this regard only DeltaBay requires thousands of media graduates/crews/experts every year.

Hence, DeltaBay will recruit yearly more than a thousand students from SAE for the

productions. DeltaBay will extend its hand and will open its door for the students of SAE

for any sort of facilities like internship, practical support, part-time and obviously full time

jobs.

Bangladesh Office

House No # 15, Flat # 501

Road No # 128

Gulshan 1, Dhaka-1212

Bangladesh

Mobile:

0088 01841 870 172

0088 01713-229143

Tel/Fax: 0088-02-9881020

United Kingdom Office

26 New Road

London E1 2AX

Tel: +44(0)20 7001 1111

Fax: 0208981 7008

3.3 A ssurance of DeltaBay to SAE

22 | P a g e

M

ARKET ASSESSMENT

CHAPTER 04 __________________MARKET ASSESSMENT

23 | P a g e

4.1 M

edia Industry in Bangladesh

Existing Media Studies in Bangladesh

Media of Bangladesh point toward the print, electronic and internet media. The

Constitution of Bangladesh guarantees freedom of print, electronic and internet media.

The Bangladesh media is ranked at 136th out of 178 countries of the world on the

Reporters without Borders Press Freedom Index.

Media of Bangladesh such as print and electronic media are owned by private mostly.

There are hundreds of weekly magazines, presenting a vast array of viewpoints, though

some outspoken papers have faced pressure in the past.

Television Channel is the biggest medium for watching news in Bangladesh. There are

about 24 television stations in Bangladesh Media. In 2012, there were 15 AM and 13 FM

radio stations available. There are around 6,000,000 internet users in Bangladesh reading

daily news on the internet.

Other than a few media, all print or broadcast outlets appeared in the last two decades. It is

to be noted that these two decades are the age of globalization based on the idea of a free

market economy after the fall of communism. As a result, an influence of capitalist

globalization is felt in the media institutions.

In this global economic system, Bangladesh was at the receiving end. The peripheral

capitalist countries of the Third World like Bangladesh have become the market of

globalization. However, other than the readymade garments industry based on cheap

labour and the telecommunications sector based on foreign direct investment, in the 1990s,

there arrived a class of traders who mainly imported products from foreign countries.

These three sectors were parts of the emerging corporate class. A country of 150 million

people meant a big potential market. From the traders‟ point of view, there was a need

to change people into consumers and a consumer culture became an essential prerequisite

of the prevailing economic process.

4. MARKET ASSESSMENT

24 | P a g e

The channel boom in the first decade of the millennium is another phenomenon in the

industry. The pattern of today‟s television programs was set by Ekushey Television (ETV)

– especially the news presentation, programme selection and graphical presentation style

of ETV which are still followed by other channels. Currently, 23 to 25 channels are

operating in the country, with more on the way (approximately 26 more TV channels are

awaiting for the permission). But all the channels including Channel I, ATN Bangla and

NTV are operating within corporate journalism. These channels are totally dependent on

advertisement market and as a part of corporate branding they have sold all of their news

slots to advertisers. To get their stakes from the competitive advertisement market, they

have made their news slot cheaper. The broadcast channels are submerged in the corporate

journalism created by the print media.

Growth of Media in Bangladesh

Chart – 4.1

Upward curving growth indicates the industry is in growth stage and the market size will

be expanding at a higher rate since ever. However, it is also true that in the last decade, the

middle class has developed a habit of watching television news daily. The government-

controlled news served by Bangladesh Television for decades prior to that kept the

audience news-hungry. While the government has freed the print media, it still controls the

broadcast media.

In the first decade of the millennium, the FM channel arrived as a new phenomenon. Five

to Seven FM channels based on pop music are now on the air. The target audience of these

channels are young people and teens who have grown through the consumer culture or

who are eager to access that culture. The channels with English-influenced Bengali

accents serve hourly news, traffic updates and stock updates. These channels also include

talk shows and interviews along with music. These stations survive on the corporate

culture created by other media before them.

0

10

20

30

Electronic media

0

200400600800

1000

Print media

25 | P a g e

At this moment, the economy of Bangladesh is expanding and the usage of Internet is less

than in developed countries. Arrival of new newspapers complies with the prevailing

socio-economic situation in Bangladesh. As a result, not only television channels or FM

radio, the print media is also expanding here. It should be noted that, until today, the

print media is the most influential media in Bangladesh. In 1990s, like many other

countries, the Internet emerged as a new media, which has been appeared in urban areas

only. Mushroom growths of Cyber cafes in the city like Dhaka, Chittagong or Rajshahi

proves the significant expansion of Internet in urban life, though according to the total

number of people the rate of using the internet, is very low (in 2010, 200 per thousand

people). But of course, it doesn‟t seem unusual in an agriculture based and technologically

poor country like Bangladesh. However, the change in the next decade will not be very

radical. A few more television channels will go on air.

Film industry of Bangladesh has about 50 years of experience and has released more than

2000 films in total and 86 in 2012. But the tradition of the industry is not glorious enough.

In 1980s and 1990s the quantity of films increased but the quality of films fell down in an

alarming manner. Sex and violence are essential elements of mainstream films and which

are failed copies of Bollywood. But at the beginning of new millennium, some makers are

coming ahead who has the experience of film society and the experience of independent

cinema movement and producing quality films. Film like „Matir Moina‟ (The Clay Bird)

and “Television” has achieved international recognition.

The age of Bangladesh as a nation will be half a century in the next decade. There came a

great change in the media sector in the last one and a half decades, making it difficult to

forecast what changes will come in the next decade but history indicates it will create a

mammoth market.

Everybody who think about the future of the media studies in Bangladesh have an idea

that the family or guardians are not willing or interested to send their child in a media

school to study film making or audio engineering due to our culture, customs and

traditional beliefs and thoughts. But incredibly the market says (based on survey) the

students and the family both have an answer YES while asking would your family allow

you to study media education. Undoubtedly 55.32% respondent replied that they and their

family are ready to enter to avail such a degree if the institute ensures quality education.

YES NO DON'T KNOW

55.53%

21.28% 17.08%

YES or NO to Media Studies

26 | P a g e

Figure – 4.2

There are a few universities offering media studies which are locally established and

operated. The survey shows 36.17% people are interested of learning media education

from an institute which has international establishment and 51.06% people strongly agreed

they will choose an internationally recognized institute if it is available in Bangladesh.

Figure - 4.3 above provides an overview of the Existing Media Education in Bangladesh &

Current Demand-Supply of Media Graduates.

Criteria

(Supply)

Native

Educational

Institution

(Yearly)

(Supply)

Educational

Institute

(Abroad)

(Yearly)

Total

Supply

(Yearly)

Total Demand

by

TV/Newspapers/

Faculty/Radio

(Yearly)

Supply

Deficit

(Yearly)

Journalism 250-350 7-12 257-362 1000-1700 743-1338

Broadcast

Engineer - 1-2 1-2 20-50 19-48

Sound

Engineer - 1-2 1-2 50-100 49-99

Graphics &

Animation 30-50 (poor) 2-5 32-55 200-300 168-245

Film Making

(Producers-

Program/News)

110-120 2-3 112-123 150-300 40-177

Total 390-520 13 – 24 403 - 546 1,420 - 2,450 1,019 -

2,127

4.2 E xisting Media Education in Bangladesh

Media Industry in Bangladesh

Total Supply, 546

Total Demand,

2450

27 | P a g e

Figure - 4.4: Current Demand & Supply of Media Graduates

The above table indicates that the native universities & institutes produce 21.66% of the

total graduates demanded. Many attempts have been made by the government and private

universities with funds from domestic and international sources since 2000 to promote the

development of media studies in Bangladesh but the significant demand-supply deficit still

exist.

Aforementioned table far narrates that only a moderate number of graduates major in

Journalism are being supplied but all the graduates of different courses are not adequately

produced by the native institutions unless Graduates in Journalism.

Figure - 4.4 below provides an overview of Demand-Supply of Media Graduates for the

last three decades

Figure – 4.5

The students passing HSC (Higher Secondary Certificate), A-Levels (similar class of 11-

12), students completing 4 years Graduation (Honours, BBA, similar class of 13-16),

students completing Masters (MBA, similar class of 16-17), students have at least passed

Intermediate Level ( Class-12), Neighbourhood Foreign Students (Students seeking for

lower cost) e.g. students of Philippines, Thailand, Nepal, Malaysia, and India (West

Bengal), Professionals who are seeking a Master Degree (Evening) in Media Studies or

short term certificate courses. The free-ones who have interest and creative talent in the

field of media more specifically in film making, sound composing, photography and

related belongs to our target customers‟ list.

0

500

1000

1500

2000

2500

3000

1990 2000 2010

Demand

Supply

4.3 T arget Market

Who is buying the service?

28 | P a g e

Figure – 4.6

The people of Bangladesh are most dynamic and always embrace changes they need. The

new era has become digitalized. Every single step we are forwarding passing through

technology. The people of the entire country do not wait till the dawn for the daily

newspaper rather they use internet to access the online hot news. In this regard we can

assure that we are living in an era where customs can be turned into technology.

Figure - 4.7 below provides the yearly current student admission rate of media studies

comparing other studies-

Figure – 4.7

18000

12000

20000

900

Enrolment in Media Studies & other Studies

Passing HSC, A levels

Completing Graduation

Completing Masters

Neighborhood Foreign Students

Professionals

Private Entrepreneur

500,000

200,000

100,000

10,000

20,000

8,000

Target Customer

4.4 M arket Size

How many customers are there?

29 | P a g e

Market Size Considering the Current Demand of Media Graduates

Figure – 4.8

While conducting the survey we got an incredible response from the potential students.

60.04% of the students said they will choose an institute for media studies which is foreign

rather going abroad for the same purpose.

4.5.1. Growth Rate of Demand for Film & Media Studies

Year/

Institute

Stamford

University ULAB DIU

Increasing

Demand of

Graduates

Total

Growth

Rate

(%)

2008 45 - - 900 945 -

2009 60 60 30 1100 1250

32.28

2010 80 90 40 1400 1610

28.80

2011 150 100 60 1600 1910

18.63

2012 180 120 90 1935 2325

21.73

Compounded Annual Growth Rate (%) 29.21%

Science Studies(Engineering

Business Other Studies Market Size ofMedia

Graduates

18000

12000

20000

5,000

4.5 M arket Share

Forecasting the potential demand for the service?

30 | P a g e

4.5.2 Projected Demand for the Film & Media Studies

Figure – 4.9

Here the market indicates 29.21% compounded growth rate but due to lack of resources

current number of customers are lower. If we consider the both growth of the service and

the growth of the media graduates demanded by the industry then the growth rate become

higher which is shown and discussed in next pages.

4.5.3 Growth Rate of Demand for Media Graduates:

The demand of media graduates in Bangladesh during the period 2005-2012 as presented

below has been complied by survey -

Table-4.10

Demand for Media Graduates in the Year 2005-2012

Year Total Demand of Human Resource in

TV/Newspaper/Radio/Film/Online Change (%)

2005 4,000 -

2006 5,900 47.5

2007 7,900 33.9

2008 9,589 21.4

2009 11,000 14.7

2010 12,450 13.0

2011 15,100 21.3

2012 18,765 24.3

Compound Annual Growth Rate (CAGR): 46.14%

Year

Compounded

Annual

Growth Rate

Total

Demand

for the

Service

2013

29.21%

504

2014 651

2015 841

2016 1,087

2017 1,404

31 | P a g e

Interpretation:

Over the course of 8 periods demand for Human Resources grew from

4,000 to 18,765, its compound annual growth rate, or its overall growth

rate, is 46.14%.

CAGR essentially shows out the increasing demand of HR due to rapid

growth of this industry over a period of time, providing a clearer picture

of annual growth. However, although in the aforesaid table the starting

demand was 4,000 and ended with 18,765, its growth in one year have

been quite a bit higher or even lower.

Direct Causes

Competition among TV Reality Shows

If we look back at last 8 years of the TV program trend in Bangladesh, we will

have a clear scenario that the numbers of TV reality shows have been significantly

increased and also it‟s being still increasing and a healthy competition among TV

channels is seen. More reality shows will require more skilled media professionals

but still the supply is too limited regard to the demand of human resource in this

particular sector.

SAE Bangladesh won‟t miss the opportunity offered by the booming media

industry of the country. Therefore, SAE will ensure the supply of quality media

experts to develop the mentioned charming sector.

SAE Itself

When the certificate, the goodwill, the acquaintance, the quality of SAE is

approved and accepted through the world so, SAE itself will create a vast market

for the potential candidates who will be produced by SAE Bangladesh.

Bangladesh is a country of 160 million people and SAE will turn this human into

Human Resource by providing those media education which has a worldwide

market. Hence, the people of the country will understand the demand of media

graduates in home & abroad and they will turn their career objective in media

education consequently the demand of media studies in Bangladesh will be

increased.

4.5.4 Significant Reasons behind the Growing Demand of Media &

Media Studies

32 | P a g e

Indirect Causes

Reduction of Play Grounds & Outside Security

Bangladesh is well known as one of the populous countries in this world. From the

last decade major cities of the country have become densely populated and

consequently open grounds are occupied for the commercial spaces, industries and

residence. At the moment, city dwellers cannot even think about a single room to

live in, a garden to breathe, a ground to walk on, and a wide-safe road to drive.

Thus, roads are becoming narrow; narrow roads result traffic jam, severe and

frequent accidents which compel people to stay at home. Excessive people means

excessive unemployment rate, higher unemployment rate results increasing rate of

crime which compel people to stay at home. Developers do not relinquish a slice of

land for the children to play; lack of playground compels children to stay at home.

Staying home during the leisure means spending time in front of television and the

above situation indicates the dwellers of the city will pass more time by watching

TV. Hence, the demand of TV channels and TV programs will be enormously

increased by the very next decade.

4.5.5 Projected demand for Graduates:

The demand for media graduates including media related short courses degree is growing

at a higher rate in Bangladesh than the production of graduates due to

the growing market size,

the high price margin,

career consciousness,

urbanization and poor availability of competing services; which are sometime

inferior in quality and innovation,

and the distinct trend in the new generation of population to switch from traditional

career choice to Career in Media.

33 | P a g e

Based on a compound growth rate of 46.14% per annum, taking 2014 as the base year, the

demand for media graduates up to 2018 has been projected as shown at Table-5 below:

Table-4.11

Projected demand for GRADUATES in Media Industry

Year

Growth

Rate

Projected Demand of Human Resource in

TV/Newspaper/Radio/Film/Online/private/

Career in abroad

2014

46.14%

26,765

2015 38,765

2016 55,756

On the basis of past Trend of graduates demanded of 4,000 graduates in 2005 which

increased to 18,765 graduates in 2012, the demand of media graduates & masters has been

assumed to rise to 55,756 in the year 2015.

4.5.6 Present Arrangement to Meet the Demand of Media Graduates

A discussion with the HR manager of Television Channel, expert in the sector, indicate

that there is a severe shortage of media studies graduates in the country. A very

insignificant supply is available from the native sources comparing the increasing demand.

A small portion of total supply is supplied by the foreign Institutions located abroad.

Although there is a demand supply deficiency a number of Universities or Institutions are

producing graduates and masters in media studies in our country. Among all the public

universities only Dhaka University recently initiated Media Studies on October 2012. A

few private universities started their journey in this sector a bit earlier. The pioneer

university in Media Studies is Stamford University; a private university of Bangladesh

started Faculty of Film & Media in the year 2005. On the contrary, department of

Journalism & Mass Communication is an old form of media studies in the country from

where a number of students have been producing since 1997.

Where are they currently buying the service?

Public Universities

Private Universities

University of Dhaka Stamford University

Jahangir Nagar University ULAB

North South University

Daffodil International University

AIUB

34 | P a g e

Presently, there are 12 universities/institutes different in size in terms of number of

courses offered offering media studies. Among the listed universities we are presenting

below a yearly average production capability of competitive institutes-

Table-4.11 : Supply Position

Current Production House of

Graduates

Average Yearly Production of

Graduates

Stamford University 80 Media, 60 Journalism

ULAB 90 Journalism

University of Dhaka 80 (Journalism)

North South University Not yet

Jahangir Nagar University 40 (Drama only)

Daffodil International University 40 (Journalism)

4.5.7 Are the customers satisfied?

The survey reveals both side of customer satisfaction and dissatisfaction regarding the

services they are receiving from the countrywide institutions. Zero percent of the total

respondent is fully satisfied and only 20% of the customers are moderately satisfied

because the degree has a certain demand in this country.

A significant number of students demanded a well-resourced practical laboratory with

contemporary instruments which are totally unavailable in their own campus. Along with

these unavailable practical instruments they have another unfilled desire that the

certificates are being achieved should have an international recognition.

When we visited the market (different private & public universities) the current buyers

(Students) showed a desire of changing the service they are now buying. Majority of the

respondent wants to have some classes with renowned professional (director, editor,

cinematographer, journalist etc.) as a guest lecturer or as a guest speaker. They specified it

more that they dream to share the practical experiences of popular & successful

International Directors. 80% of the current students studying media related courses agreed

that the certificate they are trying to avail must have international recognition which will

open the door of international career opportunities.

Only 30% students think that they have well-equipped practical laboratory and they are

moderately satisfied but rest of the students strongly agreed that they must be taught

5.4.8 What would the buyers like to see changes

about the products they are now buying?

35 | P a g e

practically using contemporary technologies since the channels are using present-day

technologies in Bangladesh.

4.5.9 Market Share/Supply Gap Share

The market share and share of supply gap at full capacity utilization of SAE is shown in

Table-4.12

Table-4.12

Year/

Institute

Compounded

Annual

Growth Rate

Total

Demand

for the

Service

Market Share

of SAE

Bangladesh

In %

2013

29.21

504 168 33.33

2014 651 217 33.33

2015 841 280 45.18

2016 1,087 362 38.64

2017 1,404 720 51.12

Projected Demand & the Market Share of SAE

67%

33%

Market Share of SAE at an entrance year of 2014

Rest of the Competitors

SAE

48.88% 51.12%

Market Share of SAE in the year of 2017

Rest of the Competitors

SAE

36 | P a g e

Course Fees

Applicable for two years graduation program

1. Deposits of all Fees. Details are given below:

Amount in

Taka BD

Amount

in USD

Particulars

Exchange rate @ USD 1 = Tk. 80

a. Admission Fee 20,000 250 (Once)

b. Registration Fee 5,000 63 (per semester)

c. Student Activity Fee 500 6 (per semester)

d. Library Fee 1,000 13 (per semester)

e. Lab Fee 3,000 38 (per semester)

29,500 369

and add for

f. Course/subject fees 9,500 119 (per subject)

For example:

For three courses : Tk.

37,500+29,500

67,000 838 (at the time of

admission)

For three courses : Tk.

37,500+9,500

47,000 588 (at the time of

other semesters)

2. To complete two years graduation

program (e.g. Film Making) each student

have to complete at least 20 (twenty)

subjects. Thus the program cost for each

student for entire two years in total of 6

semesters (4 months semester):

267,000

3,338 (in two years)

[subject to change

in total amount

depending on total

number of semester

taken by a student]

25.53% pupil studying Honours and Intermediates are willing to pay Tk. 200,000-250,000

and equal percentage of students think that they will pay 300,000-400,000 Taka for a 2

years graduation. Rest of the people remained silent or didn‟t make any response

regarding the pricing issue

26%

27%

47%

Willing to Pay Tk. 300,000-400,000 Tk. 200,000-250,000 Don't have Idea

4.6 P ricing

What is the price structure of the service?

37 | P a g e

4.6.1 What determines price on the service – quality, size, demand?

SAE is a global brand name which is well-known, popular and accepted due to its quality

education both theoretical & practical. The price structure set above is lower comparing

rest of the campuses of SAE but a bit higher comparing the local rivals. The customers

will pay more due its quality, international standard and also the demand of this service is

quite high and will be higher as discussed earlier.

38 | P a g e

CHAPTER 05 ________________COMPETITION ANALISYS

C

OMPETITION ANALISYS

39 | P a g e

(Star indicates competitors‟ competitiveness)

Rivals/Competitors Average Yearly

Production of Graduates

Daffodil International University 40 (Journalism)

Stamford University 80 Media, 60 Journalism

ULAB 130 Journalism

University of Dhaka 80 (Journalism)

North South University Not yet

Jahangir Nagar University 40(Drama only)

North South University

Stamford University

ULAB

Dhaka University

Healthy Competitors

Jahangirnagar University

5. COMPETITION ANALYSIS

5.1

M ajor Competitors

Who are the major competitors?

5.2

P roduction Capabilities

What are their production capabilities?

Daffodil International University

40 | P a g e

Our competitors average age is more than 8 years in Bangladesh. Due to this early mover advantage they have a few number loyal customer.

Rivals have a profit maximization goal by lowering their cost as they are offering lower price structure for different courses.

Since they have started earlier and the market size is upward curving so all the rivals are moving on growth stage towards maturity.

Poor Technology

Where the new & coming TV channels are using contemporary technoloies, the universities are not capable to use advanced technologies in their practical lab.

Only local Acceptance

The certificates provided by the competitors are not internationally recognized. Thus, graduates are getting limited career opportunity.

Poor Growth Rate

Since the competitors don't have any promotional strategy, so consequently they are admitting reduced number of students per semester.

Seniority

Pricing Structure

Growth Stage

5.4

M ajor Weakness of Competitors

5.3

M ajor Strength of Competitors

41 | P a g e

Competition Analysis Matrix

Particulars

SAE

Institute,

Bangladesh

Stamford

University ULAB

University

of Dhaka

Daffodil

International

University

Low Course Fee 2 4 4 5 3

Product Line (Superior

Quality) 4 2 3 3 3

Know-How 5 3 3 3 4

Practical Lab 5 2 3 2 3

Promotional Activity 4 1 1 1 1

International

Recognition/Career

Opportunity

5 1 1 1 1

Campus Location 3 5 5 5 5

Total Score 4 2.6 2.9 2.9 2.9

Based on the success factors noted in our Industry Analysis, we rated each university. The

factors rated were Service Quality, Low Course Fee, Know-How, Practical Lab,

Promotional Activity, International Recognition/Career Opportunity and Campus

Location.

The competitor matrix helps us to see the areas in which our competitors excel in which

areas they need to improve. With this we will be able to improve on the areas other

companies lack and help our business succeed. If we know what we are doing right, and

what we are doing wrong, we can improve upon their weaknesses, therefore making our

institute the best it can be. Based on our Competitor Matrix, our top competitors are:

ULAB University of Dhaka and North South University with a score of 2.9 and our

weakest competitor is Stamford, who scored a 2.6. University succeeds because they

combine a low-priced course fee with efficient service. The entire four competitors, on the

other hand succeed, because they have a convenient location for the students and faculties.

5.5

F actors Concerning Competitors

42 | P a g e

We can also improve upon our competitors in terms of price. We can grow our customer

base if we keep our prices low enough that even people with lower incomes will be able to

afford our product. With the rising prices of food, gasoline, and other services, keeping

our prices reasonable may come as a challenge. While we definitely have areas that we

can improve upon our customers, each factor can play a huge part in making or breaking

our institute‟s success.

Overall, however, our establishment will lead our competition because we provide a

service and a concept that is different from the other universities in the South Asian area.

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

Competitors size & position

DU

Stamford

ULAB

Daffodil

SAE

43 | P a g e

CHAPTER 06 ______________ TECHNOLOGY ASSESSMENT

ECHNOLOGY ASSESSMENT

T

44 | P a g e

Since 36 years from 1976 in 24 countries with 50 campuses SAE steps ahead with a single

motive that teach students emphasizing practical learning using contemporary

technologies.

All the equipment required for the sound engineering lab room, camera, PC, will be

provided by our world renowned technology partners e.g. Apple Inc. Panasonic, Yamaha,

Sony etc. No doubt the students of SAE will get the opportunity to prepare themselves for

the country as well for the universe.

In Bangladesh there are two parts of technology used in television houses; one is for

broadcast and another for news and newsroom management. As far as broadcast is

concerned, all satellite TV stations of Bangladesh are using most modern technology for

synchronizing with the technology of satellite service providers. Internally, for production,

all television companies are using modern computers which are compatible with the most

modern production and special effects software. But, in newsroom management, a few are

using software like Octopus or any software of similar standard.

Most of the TV newsrooms use computer for typing and printing of the script. BTV, the

government owned TV, has the capacity but the company has no inclination for using

modern technology any way. Bangladesh Betar, the state owned radio service has vast

capacity in terms of coverage and ability but again similar to the BTV, they are not much

tech-savvy. Private FM radio stations are a bit more technology loving. In at least

broadcast and production, they are using modern technology. In newsroom the Newsboss

is the popular software in Bangladesh.

6. TECHNOLOGY VIABILITY

45 | P a g e

Our Technology Partners

46 | P a g e

CHAPTER 07 __________________SWOT ANALYSIS

O

W S

T

PPORTUNITIES HREATS

EAKNESSES TRENGTHS

ANALYSIS

47 | P a g e

An Experience of 36 Years

SAE is operating for more than 36 years worldwide with 54 campuses in 24

countries. SAE started with a tiny village but it turned into a global village by the

size and by the years. It will initiate its journey in Bangladesh not as fresher but as

an old experienced profound Institute which is our know-how skill.

.

Strength

• Experience of 36 years

• Globally Recognised degree

• Well structured institute

• Profound & prudent faculty

• Cutting edge equipment and software

Weakness

•Cost

Oppurtunities

•Employment Oppurtunity

•Technology development

•Bulk market size

•World wide acceptance

Threat

•Social misconception

•Threat of new entrants

•Political Instability

•Economic pressure

•Price competiton

7. SWOT ANALYSIS OF SAE

7.1 S trengths

48 | P a g e

Globally Recognized Degree

The degree received from the SAE institute is recognized all around the world.

SAE has more than 50 campuses scattered around the world in seven different

continents from Australia, where the head quarter of SAE is located, to Africa

(Cape Town). Students of SAE can access any sort of facilities from any of the

SAE institute located all around the earth.

Migration Tool

In the earlier paragraph it is mentioned that any student of SAE Bangladesh will be

able to transfer credit in any other campus located around 6 continents. It specifies

that as a student they can migrate but SAE ensures migration not only as a student

but also the students who have completed the graduation will be able to work

anywhere in this world as a graduate of SAE Bangladesh which will be ensured by

SAE and SAE alumni.

Well-structured Institute

SAE is a complete version of a media institute including all the elements a media

institute should possess for which SAE has huge possibility of taking first mover

advantage in the media industry despite of the existing competitors in the market

as their structure is still under the process of expansion.

Profound & Prudent Faculty

SAE Bangladesh will engage full time faculty members from both home and

abroad. Personalities having high profile and contribution in the media in

Bangladesh will be recruited for SAE as full time faculty members. From the

neighborhood country (e.g. India, Malaysia, and Indonesia) where SAE is

operating its operation from a decade or more a few faculty members will work in

SAE Bangladesh as full time and also a number of guest lecturer from 24 other

countries will visit regularly to ensure the global learning.

Cutting Edge Equipment & Software

SAE allows students to benefit from vast equipment purchasing power and also

provides access to the latest digital film making contemporary equipment, audio

engineering laboratory equipment and required all other accessories.

Tight & Global Network

SAE has more than 50 campuses scattered around the world in 24 different

countries from Australia, where the head quarter of SAE is located, to Africa (Cape

Town). Students of SAE can access any sort of facilities from any of the SAE

institute located all around the earth. Not only from the campuses but also students

of any country will enjoy a structured benefit from Alumni Association of SAE

operated and founded by SAE institutes‟ students‟ around the world.

49 | P a g e

Individual Practice Time

SAE also allows individual practical time for the student to grasp the ever

increasing skill set required to work with and understand countless technologies

and techniques used in modern film making.

Employment Opportunities

The media industry in Bangladesh is still booming. There are already 25 channels

and still much more to come. And to assure the sustainability of these channels in

the market they require exhilarating shows which will increase their TRP

(television rating points) and SAE being an experienced institute will be able to

make use of such opportunities.

Technology development

A rapid development in the technology can be seen in a worldwide media industry

and SAE being a hi-tech based institute will be able to exploit such a prospect.

Bulk Market Size

There is a massive number of interested candidate yet left to be captured.

High cost

SAE being a foreign media institute whose education system is based on

internationally accepted standard and the technology used to deliver classes is quite

up to date for which the estimated cost to pursue the desired course is expected to

be reasonably higher than that of the other media institute in Bangladesh.

Social Misconception

In a country like Bangladesh media studies is still not considered to be a career to

pursue for. Majority of the community are still ignorant about the concept of media

and how much it can contribute to the national economic growth of an economy, to

develop the culture or to bring up the image of Bangladesh itself.

7.3 W eakness

7.2

O pportunities

7.4 T hreats

50 | P a g e

Threat of New Entrants

If any institute enters into the market in near future with international standard then

SAE will face a price competition and the market share will be divided. But the

chances of entering and competing with SAE are lower.

Political Instability

Bangladesh as a democratic nation faces politically unrest situation created by the

rivals. Oppositions always try to reject the prior decisions taken by the preceding

government. But the nation encourages Foreign Direct Investment and Foreign

Institutions to develop the socio-economic condition of the country.

Price Competition

In Bangladesh there are a few universities providing or offering the courses what

will be offered by SAE. Deshi universities are offering a lower price for the

courses whereas SAE will charge more. In this regard, SAE expects and survey

says the potential pupil will accept their services because of its numerous

advantages.

51 | P a g e

CHAPTER 08 _______________SOCIO-ECONOMIC IMPACT

S

OCIO-ECONOMIC I M P A C T

52 | P a g e

Economic Impact

When it comes to establishing a new business in the country it is quite important to

visualize the impact it will have on an economy as a whole. Before we understand what

factors are responsible for economic growth? We need to have an idea about the sectors

that are accountable for the economic growth. There are three main sectors:-

Agriculture

Industry

Service

If we take a look at the past records it will be seen that among all three sectors,

contribution of the service sector has been consistently lower and media industry being a

part of it has a huge role to play in.

The progress of the media industry has been slower due to lack of resources (adequate

technology), lack of knowledge and absence of expertise to deal in the field. SAE being a

full-fledged media institute has the capability to bring in the required resources and to

produce well skilled professionals. Animation, filmmaking and audio courses will bring a

change in the current scenario of film industry. The courses that are being offered are

aligned with the current global media trend. Therefore SAE will not only produce global

experts but it will also help the nation to reach the required standard.

We all are quite aware about the fact that our film industry is not still able to produce good

quality films with good video quality , it‟s not still capable of producing a film that will

not only last in the memory of the viewers but will be also be able to compete globally.

Not a single movie till now has reached the doors of KAN or Oscar which is quite

disappointing. SAE being a hi-tech based institute will be able to cover up the problems

that are being currently faced. It will change the video quality as well as it will change the

quality of directors. When this trend will be laid down automatically the consumer group

will shift their taste and will prefer more of local movies and local music to foreign

movies. This will aid in reducing the outflow of money from the country.

8. SOCIO-ECONOMIC IMPACT

53 | P a g e

Our media because of SAE will produce & broadcast good quality programs inside &

outside the boundary cause in the mean time we will be able to change the trend. Along

with this quality production SAE will also export skilled human resources to the rest of the

world. In this way we will manage to increase the inflow of foreign remittance which will

increase the foreign reserve in the bank and which will increase the value of taka with

respect to dollar. As a result the purchasing power of the people will be increased and the

overall inflation in the economy will be decreased. And a decrease in the inflation rate

will increase the GDP value which is a fair indicator of economic growth.

Compared to other fields, media is still growing and promises to grow in an everlasting

manner. There are 24 channels and still more to come which means more job

opportunities. If we take a closer look at our country we would define it as densely

populated .And SAE will make use of these human resources and will produce very well

skilled professionals who will be able to fully utilize their knowledge in their respective

field. SAE will therefore be able to capture the job creation opportunities. More job

creation means a rise in the household income. And a rise in the household income will

increase both government earnings and private investments .i.e. more new business will be

established creating more employment opportunities and so the cycle goes on. In addition

to that it will increase the living standard of the people. An increase in the government

earning will increase daily expenditure by developing infrastructures, by doing social

works, by giving subsidies to little organization which in turn will help them to earn

additional revenue which will again contribute to GDP.

We can finally summarize the fact that creation of jobs will eventually increase

consumption, government expenditure and private investment which will eventually

contribute to GDP an indicator of economic growth.

Socio-cultural Impact

Similarly SAE will also contribute to the socio-cultural value. It is now a matter of fact

that the current generations are more prone to watching foreign movies or listening to

music and why not? , which is far better than the local ones. But SAE promises to break

the chain and to set up a trend that will hold the traditional values among the upcoming

generation and cultivate more of it. Culture and beliefs will no longer be confined to

geographical locality but will be shared and dispersed across nations because of SAE.

54 | P a g e

CHAPTER 08 __________________FINANCIAL ANALISYS

F

INANCIAL ANALISYS

55 | P a g e

A detail of budgetary notes are given in the chapter of Appendices.

SAE Institute Bangladesh

Statement of Financial Position (Projected)

as on 31 December 2014, 2015 & 2016

Amount in Taka

Budgetary

Notes 31.12.2014

31.12.2015

31.12.2016

ASSETS AND PROPERTIES

Non-Current Assets

199,247,158

217,125,000

227,025,000

Current Assets

3,479,614

14,217,614

4,865,612

202,726,772

231,342,614

231,890,612

EQUITY AND LIABILITIES

Owner's Equity

187,674,156

184,312,727

204,811,210

Current Liabilities

15,052,616

47,029,887

27,079,402

202,726,772

231,342,614

231,890,612

SAE Institute Bangladesh

Statement of Comprehensive Income (Projected)

for the year ended 31 December 2014, 2015 & 2016

Amount in Taka

Budgetary

Notes 2014

2015

2016

Service Revenue 12

9,900,000

38,225,000

79,575,000

Less: Variable Cost 13

1,000,000

2,000,000

4,000,000

Contribution Margin

8,900,000

36,225,000

75,575,000

Less: Operating Expenses

21,225,844

39,586,429

55,076,517

Operating Profit for the period

(12,325,844)

(3,361,429)

20,498,483

Less: Income Tax 16

-

-

-

Net Profit after tax

(12,325,844)

(3,361,429)

20,498,483

9. FINANCIAL ASSESSMENT

In the very beginning year of 2014 SAE will have a huge amount of fixed cost to expend and a

minimum number students will be admitted which will result minimum revenue, reason being it will

face a loss of Tk. 12,325,844. Immediately after a year in 2015 fixed cost will increase and revenue

will also be increased due to the number of students enrolled will be increased which will result

more revenue, reason being the lose figure will fall/become on Tk. 3,361,426. On the other hand,

in the year 2016 at the third year of its operation student enrolment will tremendously go up which

will maximize the revenue. Increase in revenue in higher volume will result more profit. SAE will

start to earn profit in the year of 2016 at a figure of Tk. 20,498,483.

9. FINANCIAL ASSESSMENT

56 | P a g e

Break-even Analysis

Contribution Margin

8,900,000

Contribution Margin per unit 74,167

Break-even point (in unit) = 16,225,844

74167

= 219 units

Break-even point (in Taka) =

Tk.

29,170,057

219 unit or 219 students will have to enroll to reach to the break-even point where cost and

revenue are equal. SAE will reach in the break-even in third year of its operation and on

that year it will start to enjoy profit.

1

4

2

3

1 2 3 4 5

Sales Volume in Taka

Amount in 00,000,000

Cost/

Revenue in Taka

Amount in 00,000,000

Break-even point Total cost

Fixed cost

Total revenue

Variable cost

57 | P a g e

Conclusion

Looking at the benefits SAE can contribute to economy and the socio cultural values it

can add up to, the opportunities it can capture ,the number of strength it has when

compared to its competitors SAE has dazzling future in Bangladesh. To meet the ever

increasing demand of the media which is has a growth rate of 41.69% ( due to change in

the shift of consumer‟s taste ) compared to its limited supply ,SAE will have to keep on

producing skilled professionals decades after decades .Therefore establishment of SAE

,school of audio & engineering, is highly viable for the association itself.

10. CONCLUSION PAGE

58 | P a g e

CHAPTER 11 __________________APPENDICES

A

PPENDICES

59 | P a g e

SAE Bangladesh

Notes to the Financial Statements (Projected)

for the year ended 31 December 2014, 2015 & 2016

1 Reporting Currencies

The figures in the financial statements are expressed in Bangladeshi Taka. Transactions in foreign currencies are converted at effective exchange rates at the transaction date.

2 Other

The figures stated in the financial statements are conveniently rounded off to the nearest Taka

Amount in Taka

31.12.14 31.12.15 31.12.16

3 Property, Plant & Equipment

119,297,158

137,200,000

147,200,000

Land & Building

14,297,158

32,200,000

32,200,000

Laboratory Equipment

80,000,000

80,000,000

90,000,000

Office Decoration

10,000,000

10,000,000

10,000,000

Office Equipment

5,000,000

5,000,000

5,000,000

Furniture & Fixture

10,000,000

10,000,000

10,000,000

Less: Accumulated Depreciation

50,000

75,000

75,000

119,247,158

137,125,000

147,125,000

4 Preliminary Expenditure

License/Opening Balance

80,000,000

80,000,000

80,000,000

Less : Amortized during the year

-

-

100,000

80,000,000

80,000,000

79,900,000

5 Accounts Receivable

Opening Balance

-

500,000

800,000

Add : Added during the year

1,000,000

1,000,000 128,000

1,000,000

1,500,000

928,000

Less : Payment received

500,000

700,000

400,002

500,000

800,000

527,998

11. APPENDICES

60 | P a g e

6 Advance & Prepayment

Opening Balance

-

1,397,614

1,297,614

Add : Added during the year

2,397,614

1,200,000

2,200,000

2,397,614

2,597,614

3,497,614

Less : Settled

1,000,000

1,300,000

1,490,000

1,397,614

1,297,614

2,007,614

7 Cash and Cash Equivalent

Cash in Hand

80,000

120,000

130,000

Balance with Bank

1,502,000

12,000,000

2,200,000

1,582,000

12,120,000

2,330,000

8 Capital

Initial Investment/Opening Capital

200,000,000

187,674,156

184,312,727

Add: Re-investment by owner

-

-

Add: Profit/(Loss) During the Year

(12,325,844)

(3,361,429)

20,498,483

187,674,156

184,312,727

204,811,210

Less: Drawings by Owner

-

187,674,156

184,312,727

204,811,210

9 Accounts Payable

Opening Balance

-

4,300,000

6,200,000

Add : Addition during the year

4,500,000

6,500,000

7,500,000

Less : Payment

200,000

300,000

1,200,000

4,300,000

6,200,000

6,300,000

10 Outstanding Liabilities

Salary

2,678,348

2,641,363

2,678,348

Tax deducted at source

527,584

301,392

527,584

Electricity

54,003

88,763

54,003

Overtime Payable

177,803

58,748

177,803

Tiffin & Refreshment

101,896

38,319

101,896

Attendance Bonus Payable

39,000

47,000

39,000

Holiday Payable

69,766

59,776

69,766

Director's Remuneration

36,000

56,000

36,000

Telephone Bill

-

6,622

6,622

Office Rent

-

78,000

-

3,684,400

3,375,983

3,691,022

61 | P a g e

11 Short Term Bank Loan

Loan Received from XYZ Bank

7,068,216

34,565,336

37,453,904

Less: Payments

-

2,888,568

20,365,524

7,068,216

37,453,904

17,088,380

12 Service Revenue

24 months Graduation

7,500,000

34,625,000

72,375,000

12 months Masters

1,200,000

2,400,000

2,400,000

3/6 months Short Courses

1,200,000

1,200,000

4,800,000

9,900,000

38,225,000

79,575,000

13 Variable Cost

Cost per student

1,000,000

2,000,000

4,000,000

1,000,000

2,000,000

4,000,000

14

Administrative Expenses

Director's Remuneration

2,400,000

5,400,000

5,400,000

Salary & Bonus

8,400,000

14,400,000

22,680,000

Automobile Expenses

360,000

1,292,890

1,360,000

Telephone, Mobile Fax & Email

885,408

773,081

885,408

Insurance

200,000

200,000

200,000

House Maintenance

97,937

140,500

197,937

Training expenses

14,450

122,200

114,450

Advertising expenses

30,750

27,534

30,750

Printing and Stationeries

100,000

367,300

799,673

Postage and Courier

22,072

62,827

18,072

Newspaper, Books and Periodicals

19,035

3,498

19,035

Fees, Forms & Subscriptions

379,048

349,006

379,048

Utilities

414,409

547,730

414,409

Office Rent

1,340,000

1,080,000

1,340,000

Traveling & Conveyance

410,885

844,647

410,885

Gift, Tips and Donation

487,841

219,265

487,841

Uniform & Liveries

29,152

9,730

29,152

Medical Expenses

170,458

240,676

170,458

Water Testing Charge

18,850

-

18,850

Crockeries & Cutleries

30,414

18,983

30,414

Depreciation

-

50,000

75,000

Salary - Foreign Employees

402,780

3,294,000

402,780

Beautification & Gardening

12,355

142,562

12,355

Amortization of Preliminary Expense

-

-

100,000

16,225,844

29,586,429

35,576,517

15 Promotional Expense

Advertising Expense

20,000,000

20,000,000

20,000,000

Less: Pre-paid Advertising Expense

15,000,000

10,000,000

500,000

5,000,000

10,000,000

19,500,000

16 Income Tax

According to the government policy the educational institutions exercise TAX HOLIDAY benefits.

62 | P a g e

SAE Institute Bangladesh

Statement of Financial Position (Projected)

as on 31 December 2014, 2015 & 2016

Amount in Taka

Notes

31.12.2014

31.12.2015

31.12.2016

ASSETS AND PROPERTIES

Non-Current Assets

199,247,158

217,125,000

227,025,000

Property, Plant & Equipment 3

119,247,158

137,125,000

147,125,000

Preliminary Expenditure 4

80,000,000

80,000,000

79,900,000

Current Assets

3,479,614

14,217,614

4,865,612

Accounts Receivable 5

500,000

800,000

527,998

Advance & Prepayment 6

1,397,614

1,297,614

2,007,614

Cash and Cash Equivalent 7

1,582,000

12,120,000

2,330,000

202,726,772

231,342,614

231,890,612

EQUITY AND LIABILITIES

Owner's Equity

187,674,156

184,312,727

204,811,210

Capital 8

187,674,156

184,312,727

204,811,210

Current Liabilities

15,052,616

47,029,887

27,079,402

Accounts Payable 9

4,300,000

6,200,000

6,300,000

Outstanding Liabilities 10

3,684,400

3,375,983

3,691,022

Short Term Bank Loan 11

7,068,216

37,453,904

17,088,380

202,726,772

231,342,614

231,890,612

The annexed notes form an integral part of the Statement of Financial Position.

Managing Director

Director

This is the Statement of Financial Position referred to in our separate report of even date.

63 | P a g e

SAE Institute Bangladesh

Statement of Comprehensive Income (Projected)

for the year ended 31 December 2014, 2015 & 2016

Amount in Taka

Notes

2014

2015

2016

Service Revenue 12

9,900,000

38,225,000

79,575,000

Less: Variable Cost 13

1,000,000

2,000,000

4,000,000

Contribution Margin

8,900,000

36,225,000

75,575,000

Less: Operating Expenses

21,225,844

39,586,429

55,076,517

Administrative Expenses 14

16,225,844

29,586,429

35,576,517

Promotional Expenses 15

5,000,000

10,000,000

19,500,000

Operating Profit for the period

(12,325,844)

(3,361,429)

20,498,483

Less: Income Tax 16

-

-

-

Net Profit after tax

(12,325,844)

(3,361,429)

20,498,483

The annexed notes form an integral part of the Statement of Comprehensive Income.

Managing Director

Director

This is the Statement of Comprehensive Income referred to in our separate report of even date.