GLOBAL BUSINESS ENVIRONMENT

ICON – A5 Aircraft

ABOUT US….o Company Name : Royal Wings o Established – 2006o Based In :Bangalore, Indiao The Royal Wings Team :

• Founder & CEO Karan Brahmabhatt• Co-Founder & COO Vivan Patel• CFO Ankit Agarwal• Spokesperson Prakruti Pujar• President [Marketing] Bhowmik Goradia• President [PR] Saloni Seth

PRODUCT OVERVIEW

Amphibious aircraft Carbon fibre airframe Retractable landing gear - enabling it to take

off from water or landing strips. Enclosed cockpit – 2 seater - with

wraparound canopy Powered by a single internal combustion

engine driving a pusher propeller. Removable side windows. Hydrodynamic stability. Its high-wing design - superior visibility Foldable wings aft - facilitates transportation

and storage.

ICON – A5 AIRCRAFTo Specifications;

Seats: 2Maximum Takeoff Weight: 1430 lbsUseful Load: 430 – 530 lbs (option dependent)Baggage: 60 lbs (maximum)Fuel (Auto Gas or Av Gas): 20 galMaximum Speed: 105 kts (120 mph)Range: 300 nmTakeoff & Landing Distance: 750 ftEngine (Rotax 912 ULS): 100 hp

Performance specifications are estimates only.

ICON – A5 AIRCRAFT

o DIMENSIONS

– Interior Cockpit Width: 46 in– Wingspan: 34 ft– Aircraft Length: 22 ft– Aircraft Height: 7.1 ft– Trailered Width: 8.5 ft– Trailered Length: 28 ft– Trailered Height: 8.3 ft

ICON TRAINING Due to recent regulation changes, becoming

a Pilot is now easier and more fun than ever before. The Aviation Administration’s Sport Pilot License is all you need to fly an ICON A5.

Further, ICON can provide all the necessary training to get you safely flying before taking delivery of your new A5.

DOING BUSINESS IN INDIA

Doing Business In India

WHY INDIA? India is a country with the second largest

population in the world The vision is to promote light general

aviation as the safest, most affordable and purposeful option for the common man in India.

India is our home country due to the following factors:

An attractive destination for most industries Labor wage rate in India are very low. Skilled manpower & technology available

PEST ANALYSIS

Political

Tax Policies

Employment Laws

Political Stability

Economic

Exchange rates

Setting up business in SEZ (Special Economic

Zones)

Scope of FDI

PEST ANALYSIS

Social

Lifestyle changes

Resistant to change

Technological

India also has a large pool of IT professionals

Setting up R&D facilities

SWOT ANALYSIS

Strengths

The first mover advantage

Pricing of our product

Availability of resources

Weakness

Red Tapism

Land acquisition problems

Labor unions

SWOT ANALYSIS

Opportunities

An unexplored market

Tapping the premium segment

Using the aircraft for recreation

Threats

Mindset of the people

Safety challenges

An unexplored market

ENTERING THE MARKET

The product launch will be taking place at the

Delhi Auto Expo(2011)

Initially factory owned outlets will be opened

in the metros

Promotional campaigns and advertising

teasers be released

Tie-up with financial institutions, Sahara City

& Lavassa Corporation.

PROMOTIONAL CAMPAIGN Fractional Ownership Program

This is believed to be the first fractional ownership

program for light aircrafts

Designed to help owners share the rising costs of

plane ownership

Allow up to 10 people to share a new fully loaded ICON

A5 , a light two-seater plane

Each owner will get 50 hours of use per year including

10 overnights per person

Provide flight instruction to make sure each partner is

competent in the aircraft.

DOING BUSINESS IN THE UNITED ARAB EMIRATES

Dawlat al Imarat al Arabiyya al Muttahida

HISTORY

The United Arab Emirates were bound by truce (Trucial States) to Great Britain until WWII.

The seven Emirates formed a federation in 1971 and have since worked closely together to build a stable economy and political climate.

PESTLE ANALYSIS Political

Each Emirate has its own governmental institution. The ruling family of each Emirate is a member of the

Supreme Council, which is responsible for policy-making and electing the president and vice president for five-year terms.

Economic Wealth is based on oil and gas exports (Abu Dhabi) The government increased spending for infrastructure

and job creation, and there is a greater opportunity for private sector investment.

Lately there has been a surge in real estate and shares prices and consumer inflation is elevated.

PESTLE ANALYSIS Social

Islam plays a large role in business Women are seen as equals and are protected by

rights and privileges laid down by Islam

Technological Telephones (land line and cell), radio broadcast

stations, television, internet Legal

Court proceedings in the UAE are time-consuming. There are no juries; only a single judge or a three-

judge panel (depending on the case) hears cases. All evidence submitted to the court must be in Arabic.

Environmental Arid/tropical, sandy desert, and coastal areas.

SWOT ANALYSIS Strengths

Free Trade Zones, relative ease of business start up

Weaknesses One needs a network of people in order to expand

opportunities Trust must be gained before any business transaction

occurs

SWOT ANALYSIS Opportunities

Large export market Trade missions

Threats Sandstorms and dust storms occur frequently.

ECONOMY United Arab Emirates is now the second-richest country

in the Muslim world. This is because the UAE claims the world's third largest proven oil deposits.

The GDP per capita fell by 42% in the 1980s, but successful diversification helped to provide a positive growth of 48% in the 1990s.

Immigrants make up a large percentage of the UAE’s workforce.

The UAE government wants to preserve its traditional forms of art and culture. However, change is also apparent.

BUSINESS The United States Department of State has noted

widespread instances of blue collar labor abuse throughout the United Arab Emirates businesses.

It is a common practice for managers and employers in the UAE to hold employees' passports for the duration of their employment contract.

The UAE government has been criticized by many human rights agencies. One of them, the Human Rights Watch, has criticized the government for not acting when discrimination against Asian workers in the emirate is present.

ENTERING THE MARKET A local sponsor or service agent Trade license Register with the local Chamber of Commerce and

Industry, the Economic Development Department, and with the Minister of Finance

Annual renewal of the trade license Company can function only within the emirate where the

license was granted Separate license must be obtained to open a branch in

other emirates

ENTERING THE MARKET Free Trade Zones

100% foreign ownership is allowed with no recruitment or sponsorship problems

Corporate tax and customs duty exemption on imported raw materials and equipment

No levy on exports and imports The Free Zone Authority gives a questionnaire to

assess the company's requirements and whether it can be met.

Once the company submits the questionnaire, it will be given a license application, a list of invoices required for planning, consumer request for electricity and Form B for environmental concerns (if applicable).

DOING BUSINESS IN SWITZERLAND

WHY SWITZERLAND? Highly flexible legal environment Long-term stability Protection of free competition and property

ownership Geographically isolated locations Quality conscious customers Sophisticated and modern infrastructure –

highly operational High per-capita spending on luxury

PESTLE ANALYSIS Political : Stable Protection of free competition and property

ownership Access to government agencies and services

Economic : Depends for its wealth on foreign trade Highly qualified labour force performing highly

skilled work. Need foreign markets in order to make investment

in research and development worthwhile Prompt investment in ICT

PESTLE ANALYSIS Social : Population of about 7.6 million – 21%

foreigners Lifestyles are changing as the Swiss adapt to

new demands Mountains and valleys physically keep

communities apart

Technological : Important– limited or nil natural resources Raw output of scientific research – one of the

best in the world Country’s “e-readiness” for private use

PESTLE ANALYSIS Legal : Confederation can levy indirect taxes and

duties Uses the tax exemption method and does

not tax income or net worth that is allocated to the source country

Full tax relief is often available for newly established companies for limited periods of time, followed by reduced rates for their international business

Tax treatment of expatriates -

PESTLE ANALYSIS

Tax treatment of expatriates

PESTLE ANALYSIS Environmental: Main producer of greenhouse gases in

Switzerland overall is transport - 31% emissions in 2000

Emissions - Carbon dioxide (CO2) and nitrous oxide (NO2)

SWOT ANALYSIS Strengths

High standard of living Strong home market Cooperation with EU Infrastructure

Weakness High cost of land Stagnation in the expansion of the air

connections

SWOT ANALYSIS Opportunities

Ongoing improvement as a business location Focus on the links between industry and research Foreign direct investments – encouraged – thus

easy expansion and diversification

Threats Diminishing availability of sites

ENTERING THE MARKET Government is liberal.

Permissions -International civil aviation is governed by the Convention on International Civil Aviation (the Chicago Convention)

An aircraft registration is a unique alphanumeric string that identifies an aircraft, in similar fashion to a licence plate on a motor vehicle.

Certificate of Registration

ENTERING THE MARKET Associating with General Aviation

Manufacturers Association, Switzerland

Target Frequent Holiday goers/ Travelers Senior managers in corporate houses Sport enthusiasts Rich and the wealthy

ENTERING THE MARKET Marketing : Examples :1. Associating with corporate houses and flying

senior managers during business/personal travel

2. Reasonable Pricing3. We will hire Michael Schumacher for our ad

campaigns4. Hiring well-known faces as spokesperson

and promoters5. Promoting premier sports like golf and skiing No existing competitor in the specific price

range and specific segment of private flyers

SUMMARY We have spoken about 3 countries , namelya. India – home countryb. UAEc. Switzerland We have done PESTLE and SWOT analysis of

every country Explained how we would enter the respective

Markets to gain foot hold each country Explained the marketing strategy

ACKNOWLEDGEMENT Firstly, we’d like to thank Mrs. Vinima Sharma

for giving us an opportunity to work on this project.

Secondly, we’d like to thank the class for their co-operation.

And last, but not the least, we’d like to thank Mr.Yash Ajmera, on being our first customer to book an Icon A-5

ANY QUESTIONS?