CORPORATE FINANCE
REPORT ON PROJECT: SPORTS SCHOOL
Sun Valley School of Sports
You don’t win Silver - You lose Gold
Submitted to- Prof. Vikas Srivastava
Submitted By- Group 4 Pgpbf (2009-2011)
Abhishek Sharma , Ajitav Sinha , Akhil Goyal, Mohit Choudhary, Priyanka Ojha,
Sneha Jaiswal , V.Vinitha
PGPBF, NIBM Pune
Executive Summary
Project – SUN VALLEY is an exclusive SPORTS SCHOOL with the objective of ‘catching them young’ and bringing GOLD for India in the Olympics of 2020. The school will be located in a 60 acre campus in Vikhroli village in Pune. The school will be fully residential and co-ed. The school will have classes from standard III to standard XII. The school will coach the students in weight lifting, swimming, shooting, judo, cycling, boxing and athletics. For the academic program, the school will adopt the curriculum of National Open School (NOS)
Cap Ex Investment – Initial investment of Rs. 34.85 crore with incremental of Rs. 0.64 crore in the third and fifth years each. Land is provided free of cost by the Government of Maharashtra
Demand & Capacity – Full capacity of 400 students per annum. First two years’ operation at 50% capacity and next two years 75%.Full capacity with effect from fifth year.
Capital Structure – 56% owner’s equity and 44% bank loan (term loan) running for 5 years
Cost of Capital – 11% with debt at 14% and equity at 10%
Revenue Stream – Fee of Rs. 2.5 lakh per student per annum for the initial two years and increased to Rs. 3.0 lakh from the third year onwards
Profit – Profit after Tax since third year of operation and accumulated losses wiped out in fifth year of operation
Break Even – 17.5 years
Growth Rate – CAGR of 13% and approaching 7% in the long run
NPV – Rs. 15 crore
IRR – 17%
Management Team – The management team comprises of 7 members who are the Promoters of the Company and 2 Independent Directors, one of
2
whom is a current Cabinet Minister and another is a retired IAS officer.
Index
Contents Page No.
1. Introduction 5- 6
Concept
Objective & Vision
Business Model
2. Market Study 8– 10
Demand Projection
SWOT Analysis
Competitor Analysis
Marketing Mix
3. Technical Study 12 – 17
Costing
Steps for setting up a school
4. Financial Study 19 -24
Financing Plan
Leverage
Cost of Capital
Break Even & Sensitivity Analysis
Projected Financial Statements
NPV & IRR calculation
5. Economic Study 26 -28
General Macroeconomic condition
Porter’s Five-forces Model
6. Management Team 30 –33
Details of Board
McKinsey’s 7S Framework
CSR
3
7. Snapshots with Layout 34- 36
Introduction
4
The Concept
The system of sports school was founded in 1930s in the erstwhile USSR. Sports school is a type
of educational institution that prepares young students for the highest achievements in the field of
sports while also giving them the necessary academic proficiency for their future. One of the most
powerful system of the present times in sports education is practiced in the People’s Republic of
China. The success is for all to see – China has garnered 51 gold medals (highest) in the 2008
Beijing Olympics and most of them were from the students of such sports schools.
In the year 1973 the Government of Haryana started the Motilal Nehru School of Sports, Rai with
a prime objective to provide excellent education facilities with extra emphasis on sports to
deserving students. However, the focus later shifted to academics and sports became mere
exercise. The investment made by most States in sports has been negligible. In consequence, we
have not succeeded in creating a national sports culture, thus also impairing excellence in sports.
It is estimated that out of a population of adolescents and youth of some 77 crore, only 5 crore or
so have any access to organized sports and games, to the neglect of nearly 72 crore of our
children.
The Parliament Standing Committee on Human Resource Development identified the lack of
sports culture in the country and the non-integration of sports with the formal education system as
the major problems behind India’s lacklustre performance in sports.
Even a small country like Cuba, whose population of about 11.5 million is comparable to that of
NCT Delhi, boasts approximately 2 million athletes, of whom 23,000 are in the high performance
category in 38 different sports disciplines at the national and international level. With the sports
culture permeating every aspect of Cuban society, national athletes are folk heroes and receive
national recognition and lifetime financial support.
Cuba spends about 13 per cent of its national budget on sports and related activities. The outcome
in terms of excellence in sports is starkly measured by comparing the number of medals in
absolute numbers and the number of medals per ten million of the population won by Cuba,
China and India respectively at the most recent Olympics and Asian Games put together.
Country No. of medals Medals per 10 million pop. Cuba: 179 157.2 China: 379 2.8 India: 55 0.5
5
Objective
We plan to set up an exclusive SPORTS SCHOOL with the objective of ‘catching them young’
and bringing GOLD in the Olympics of 2020. The school is set up along the Russian & Chinese
model of identifying sporting talent in children at a young age and nurturing them for
representing the country at international level tournaments.
Vision
Our vision is to create a world class infrastructure with state of the art sporting complex and top
level coaches & supporting staff to nurture talents with an ultimate objective to stabilize India at
the pinnacle of world Sports and help become a leading contender in Olympics.
Business Model
The school will be set up as a private limited venture. The school will be located in a sprawling 60
acres campus in Vikhroli village that is 7 kms away from Hadapsar in Pune. The school will be
fully residential and co-ed. In addition to state of the art training in sports, the school will offer
academic programs to equip the upcoming sportsmen and women with requisite knowledge for
their future. For the academic program, the school will adopt the curriculum of National Open
School (NOS).
The school will have classes from standard III to standard XII with two sections for each
standard. Each section will have a maximum of 20 students. The maximum seats in the school
will be 400. The admission of students will be on the basis of entrance test combined with talent
scouting for inherent sporting talent.
The school will coach the students in sports which have been selected based on the medal tally in
Olympics viz. - weight lifting, swimming, shooting, judo, cycling, boxing and athletics. These
games are competed at individual levels and contribute to 51% of total gold medals at stake in the
Olympics.
6
MarKET STUDY
7
Demand Projection
India has the largest student population in the world with over 13.5crore pupils in primary
education. In the last five years, the government has been focusing on the Education Sector
through increased fund allocations. In the current year also, the government has increased the
allocation by 20% from Rs. 28,674 crore to Rs. 34,400 crore. The allocation is expected to
continue to increase in the foreseeable future as well. The government has imposed an Education
cess on income tax to fund its various programs, which target to improve the quality and reach of
education in India. Student enrolments have grown at a good rate of 3.2% CAGR over 1999-2000
to 2004-05 for primary enrolments, and 3.9% for upper primary enrolments.
With increase in per-capita income there is a greater propensity to educate children at premier
institutions. The parents whose children are studying at these schools expect a higher standard of
education and have comparatively higher expectations from these schools in terms of
infrastructure, facilities and courseware. For example, 50% of parents spending close to Rs. 3 - 4
lakh per year to educate their children at Doon School, Dehra Dun own medium sized business
and come from small towns like Moradabad, Panipat, Yamuna Nagar etc.
Formal schooling, globally known as K12 (Kindergarten to 12th grade) is India’s core education
market and occupies the largest space in the education system, growing at 14% CAGR. As for
India’s middle class households, we believe this segment of society would continue to spend a
large part of its income to fund the education (with an eye on quality) of its children. Overall, we
believe Budget allocations and high spending by the Indian middle class on education are
expected to fuel growth of private schools in India.
40% of the school going children attend private schools, which are approx 7% of the total number
of schools in the country. This indicates a clear preference for private schooling over public
education system. The quality of education in private schooling is better despite the higher costs.
There are over 75,000 private schools with investment of over US$20billion. The growth of
private schools is fast because of the absence of quality public schools. A growing awareness
about the importance of quality education and increasing ability and willingness of Indians to pay
for good education is driving private sector education forward.
8
SWOT Analysis
Strengths : Specialisation in sports
Focus on Olympics
A head coach for each game
Weaknesses: Sports education is a new
concept
Few specialised coaches available
Opportunities: Increased coverage & penetration of sports
Success of Indians in Beijing Olympics has raised hopes and demand for more sportsmen & women
Threats: In India people are Academic
centric.
Competition is with Sports Authority of India, Sports schools by Govt.
Competitor Analysis
The competition will be from existing premier residential schools like Doon School of Dehra
Dun, Lovedale School of Ooty, Boarding Schools of Darjeeling & Shimla as well as Sports
Schools set up by the State Governments. Though the infrastructure, ambience and facilities are
compatible with the former, their focus is academics while ours is Sports. Comparing with govt.
run sports schools, our infrastructure, coaching and exposure is much higher. The annual fee
structure of Rs 2.5-3 lakh is placed lower than the premier schools (with fee ranging from Rs 5-6
lakh) but higher than the govt. run sports schools (fee ranging from Rs 0.5-1.5 lakh)
Marketing Mix
Product: In this project we are basically selling the concept and not just the school. In India,
sports is considered as a leisure activity or the means to land a job through sports quota.
Besides, apart from cricket no other sport activity is encouraged. We plan to sell the
concept of winning GOLD for the country. The highlight would be state-of-the-art
coaching for students who have an inherent talent for sporting activities along with
quality academic knowledge.
Price: Proposed School Fees- Rs 2.5 lakh per annum for the initial two years, which will be
hiked to Rs 3.0 lakh per annum from the third year.
We plan to seek active corporate sponsorship in terms of scholarships in various sports
activities/ exchange programs and international expertise.
9
Place: We are targeting students at pan-India level. Talent scouts would visit schools’ sports
meets and camps to identify potential candidates.
Promotion:
For the promotion of the school following strategies will be adopted-
The communication about the school will be made through pamphlet distribution, advertisement on TV, in magazines, newspapers and hoardings in a particular niche area. The advertisement campaign will run all over the country.
We are also planning for a campaign in the up-coming Commonwealth Games and London Olympics in 2012 and other national and international level sports championship.
We plan to rope in Olympians like Abhinav Bindra & Vijender Singh as brand ambassadors for helping us in the promotion of the school.
10
TECHNICAL
STUDY
11
For the first year of operations, the school will be operating at 50% capacity as students up to
standard VII only will be enrolled. There will be proportionate capacity addition as number of
students increase
Costing
Cost of ProjectRs in Crore
Building Construction 30.00Furniture & Fixtures 0.50Athletic Arena/ Track 1.00Sports Equipment 0.40Vehicles 0.20Computer & Equipment 0.18Preliminary Expenses 2.57 34.85
Sports Equipments
No Game Batch Size Cost in USD
1 Wrestling 10 1669.50
2 Swimming 20 1712.19
3 Shooting 10 5001.13
4 Judo 10 839.60
5 Cycling 20 18825.80
6 Boxing 10 1085.04
7 Athletics 100 33114.38
Total 62247.64
Exchange rate 47.5
Amount in Rs crore 0.30
Dress & Replacements Rs in crore 0.10 per student Rs. 5000 p.a
12
Total Amt Rs in Crore 0.40
Manpower Description
S. no. Particulars No Per month Total per month1 Head Coach 10* 25000 2500002 Asst Coach 7 # 20000 1400003 gym instructor 1 20000 200004 dietician 1 20000 200005 doctor 1 25000 250006 nurse 1 10000 100007 visiting physician 1 4000 40008 physiotherapist 1 25000 250009 counsellor 1 20000 2000010 Teachers 10 20000 200000
TOTAL 714000
Annual Rs in Crore 0.86
11 Principal 1 35000 3500012 Vice Principal 2 30000 6000013 Support Staff 12 10000 120000
TOTAL 215000
Amount Rs in Crore 0.26
Computer & AccessoriesS. no. Particulars price /unit unit required total amount in Rs
1Computer 30000 55* 1650000
2Printer 3000 20 60000
3 Projector 5000 10 500004 White Board 3000 10 300005 MFD 15000 1 15000
TOTAL Rs in Crore 0.18
*one for 2 students-one for each teacher-one for each class-15 office one for 4 teachers-2 in lab(2 for 20 students)-1 each fr princi, VCs-12 office staff.
*1 head coach each for 6 games & 4 for athletics #1 asst. coach each for 6 games & 1 for athletics
13
14
Outsourced Activities Rs in Crore Scope
Food & Refreshments 1.50 As per diet chart for each student( Rs. 250 per person per day)
Security 0.12 Round the clock security
Repair & Maintenance 0.12Repair & Maintain electrical & plumbing fittings, vehicle, sports
equipments
Housekeeping 0.24 Cleaning, Gardening, Aesthetic Management,
Vehicle
Particularsin Rs lakhs.
Tata Motors School Bus 10.55Tata Motors School small van 6.5Tata Indica 2.95 Amount Rs. in crores 0.2
S no. Preliminary Expenses1 Company Registration Fee 500002 Legal Advisory Charges 1000003 CA charges 1000004 Approvals for land & Building 250005 Misc Expenses 3500006 Interest on loan for constuction period 150000007 Promotion Expenses 100000008 Approval & Affiliation for school 25000
Total in Rs. 25650000 Amount Rs in Crore 2.57
Amortised over 10 years @ Rs. 0.26 crore each year
15
Furniture and Fixtures1
Particularsprice /unit
unit required
total amount in Rs
2 class room desk & table 1000 200 2000003 bed+mattreses+pillow 6000 200 12000004 study table 3000 200 6000005 mess table + chair 4000 50 2000006 teachers table+chair 2500 10 250007 Coaches & others
table+chair 3000 20 600008 principal's office 100000 1 1000009 VC's office 60000 2 12000010 Audi chairs 500 300 15000011 Dispensary 130000012 Lockers & Cabinets 1000000
TOTAL 4955000Total in Rs crores 0.50
16
Rules and Regulations for Starting a school in Pune :
Cost of Construction:
1 School Building sq. feet Rs per sq. Feet
(in crores)
Plinth Area 100000 1000 10.00 Electrical 100000 40 0.40 Plumbing and water supply 100000 30 0.30 Central A.C. 100000 50 0.50
2 Girls Hostel Plinth Area 40000 1000 4.00 Electrical 40000 50 0.20 Plumbing and water supply 40000 50 0.20 Central A.C. 40000 75 0.30
3 Boys Hostel Plinth Area 40000 1000 4.00 Electrical 40000 50 0.20 Plumbing and water supply 40000 50 0.20 Central A.C. 40000 75 0.30
4 Staff Quarters Plinth Area 20000 1000 2.00 Electrical 20000 50 0.10 Plumbing and water supply 20000 50 0.10 Central A.C. 20000 100 0.20
5 INDOOR STADIUM & AUDITORIUM Plinth Area 10000 800 0.80 Electrical & Furniture 10000 100 0.10
6 Football Ground 0.607 Basketball ground 0.408 Canteen building 0.209 Swimming pool 0.78
10 Repairs & maintenance room 0.1011 Watchman's cabin 0.0212 Landscaping & Decorating 3.0013 Compound wall + gate + roads 1.00
Total 30.00
17
The players in starting a new school are:
Government agencies:
• Registrar of societies
• Charity commissioners’ office
• Zilla Parishad
• Pune Municipal Corporation (P.M.C.)
Actual Procedure for starting a school:
Step 1: Applications for starting a new school should be submitted to Zilla Parishad
Step 2: The Zilla Committee reviews the application and then it is sent to the Mantralaya. The
Mantrakaya has the final say to accept or reject the application based on the reports sent by
Zilla Parishad. The entire process requires 6 months.
Step 3: Register the school as a trust according to the Societies Registration Act, 1860 and
Bombay Public Trust Act, 1950.
Step 4: Apply for recognition to the Zilla Parishad or PMC.
Step 5: Obtain a temporary licence for the school.
Step 6: Affliation to National Open school certificate.
18
FINANCIAL
STUDY
19
FINANCIAL PLAN & ITS REASONS:
(Rs in Crore) InitialSubsequent Increment
Equity capital 18.00 2.50Term loan 15.36
Special Incentive from Govt. 1.49 3.00Loan from friends & Relatives 2.50
TOTAL 34.85
Newly formulated company so the proportion of owner’s equity is higher;
Long term debt for covering approx 60% of construction has been raised. This would
account for the “discipline of debt”;
Govt subsidies to promote sports culture in the country providing interest free capital
To plug in deficit financing, we propose to raise interest free additional finance from
friends & relatives;
Since there is no working capital gap, we are not raising any finance for working capital;
Internal accruals from fifth year onwards would be sufficient to meet the operating
expenses;
The promoters would not receive any remuneration or dividends, till 5th year. Henceforth,
we propose to declare dividends @ 20% of PAT.
DSCR and Interest Coverage Calculation
Particulars I II III IV V Total
EBIT 0.51 0.58 2.90 2.94 4.32
PAT -1.82 -1.34 0.99 1.31 2.58 1.72
Depreciation 1.18 1.11 1.12 1.08 1.06 5.54
Interest 2.08 1.67 1.24 0.81 0.38 6.16
Amortisation Exp 0.26 0.26 0.26 0.26 0.26 1.29
Cash Accruals 1.69 1.69 3.60 3.46 4.27 14.71
Interest 2.07 1.66 1.23 0.80 0.38 6.15
Installment 2.30 3.07 3.07 3.07 3.07 14.59
Payments 4.37 4.73 4.31 3.88 3.45 20.74
DSCR 0.39* 0.36* 0.84* 0.89* 1.24
ICR 0.25* 0.35* 2.35* 3.64 11.45
* The deficit made good by capital infusion
20
COST OF CAPITAL:-
To arrive at the cost of capital, we used WACC methodology.
It includes cost of debt and cost of equity.
To get the cost of debt, we considered a term loan charging an interest rate of 14% p.a. In this we
take into consideration the tax effect. The effective cost of debt comes out to be 14(1-0.3); =9.8%
To get the cost of equity, we used the CAPM approach, according to which,
where:
ke=cost of equity
Rf= Risk free rate ; considered 7% as per average Treasury-bonds discount rate.
β = Coefficient of systematic risk
Rm= Market returns of NSE for the period Sept 2008 to Aug 2009.
Beta value was calculated using the fundamental approach
Here the historical beta we are considering is of “Bhagwati Banquets and Hotels Ltd.” a
comparable hospitality industry firm.
We calculated the historical beta by regressing their returns against NSE returns. This was
the levered beta of the firm which we unlevered and again re-levered using our capital
structure.
21
ke =Rf + β(Rm-Rf)
Relevering the historical beta:
βrelevered = βunlevered [1+ (1-t)(D/E)target]
The beta for our firm came out to be 0.69 and we adjusted it for our new venture to a more
realistic value of 0.80
After arriving at the cost of debt and cost of equity, we used the WACC method,
ko = kd(D/D+E) +ke(E/D+E)
The weights of debt and equity is taken from the balance sheet.
Debt is 15.36 cr whereas equity is 20.5 cr.
The overall cost of capital comes out to be 10.77%
22
BREAK-EVEN ANALYSIS:
Key assumptions made for the break-even analysis are :
We have used Free Cash Flows to the Firm(FCFF) for arriving at a break-even.
FCFF is calculated as
PAT is taken as at the end of 3rd year as it is the 1st positive one we are getting.
Interest is added back as we are considering break-even for both the debt and equity
holders.
As already mentioned in the economic analysis, we are assuming the growth rate(g) of
13% which is on the lower side of the expected growth of 15-17%.
The discount ratebove equation is taken as the cost of capital (k) calculated earlier.
CALCULATION METHODOLOGY:
Initial CAPEX = FCFF [1+(1+g)/(1+k) + ((1+g)/(1+k))2 +………+((1+g)/(1+k))n]
where n is the number of years for break-even.
Solving the above equation as a summation of GP having common ratio (1+g)/(1+k), the
value of n came out to be 14.58 years.
The particular point in this calculation is that we need to add 3 years to the B-E calculated as
it was taken at the end of first 3 years.
Thus, the B-E for our project comes out to be 17.58 years.
23
FCFF=PAT+INTEREST (1-TAX)+DEPRECIATION
SENSITIVITY ANALYSIS:
Scenario 1: Number of students remains same=300, fee varies.
FEE
VARIATION
-20% -10% BASE=3lacs +10% +20%
REVENUE 7.2 8.1 9 9.9 10.8
VC 2.58 2.58 2.58 2.58 2.58
CONTRIBUTION 4.62 5.52 6.42 7.32 8.22
FC 2.4 2.4 2.4 2.4 2.4
PROFIT 2.22 3.12 4.02 4.92 5.82
Scenario 2: Number of students vary, so does variable cost, fee remains same=3 lacs
Variable costs= Total Cost-(Salaries +Repairs & Maintenance .+Security+ Housekeeping
+wages & salary)
= 4.98-2.4
Total VC for 300 students =2.58 crore
Thus VC per student = 0.0086 crore
24
STUDENT
VARIATION
-20% -10% BASE=300
students
+10% +20%
REVENUE 7.2 8.1 9 9.9 10.8
VC 2.064 2.322 2.58 2.838 3.096
CONTRIBUTION 5.136 5.778 6.42 7.062 7.704
FC 2.4 2.4 2.4 2.4 2.4
PROFIT 2.736 3.378 4.02 4.662 5.304
Analysis:
As observed from the above graph, the slope of the fee variance curve is more than that of student variance. Thus the profit is more sensitive to fee changes than the change in number of students.
25
ECONOMIC
STUDY
26
General Macroeconomic Framework
Recent performance: The Indian economy confronted one of the severest external shocks in
2008-09 in the form of an intense global financial crisis coupled with a global recession, but
exhibited notable resilience, with GDP growth at 6.7% in the year 2008-09.
GDP growth of second quarter of 2009-10 surprised on the upside growing at 7.9%. Growth had
slowed to 7.4% for 2008 and is expected to remain below trend over the next few quarters.
Second quarter expansion came on the back of high government spending and a stronger
performance in the manufacturing sector.
Outlook: Growth will slide to 6.6% in CY-2010, while the medium term outlook remains
favorable. The move towards gradual liberalization and deregulation will continue under the new
government; but a major overhaul is unlikely in terms of FDI in education sector. As per IMF‘s
outlook, medium term growth will return to 7-8% for India but not before 2011.
The adverse impact of the deficient monsoon on food prices and inflation expectations suggest
upside risks to inflation. RBI has revised its inflation projection upwards from the earlier 4% to
5%. With inflation posing a threat to growth and high forex inflows, as a response interest rates
are expected to harden in the future.
Education Sector
Our economy’s growth, development and ability to handle global competition is all dependent on
the availability, reliability and quality of the education offered to its ‘leaders of the future’.
As per the Indian Education Survey Report-2009, K12 market is expected to grow at 14% CAGR.
We are assuming 13% growth rate for our school considering the novel concept and the growth os
sports industry in India. The long term growth rate would approach that of the economy at 7%.
The higher offtake of education loans, pay commission rewards & recent settlement in case of
PSBs are expected to drive demand. The private consumption has already increased from 1.6% to
5.6% on year-on-year basis.
27
Industry Analysis using Porter’s Five-forces Model
A classic business tool and probably the mostly widely used framework for strategic industry
analysis is commonly known as Porter’s Five Forces with five controlling economic processes:
Degree of industry rivalry and competitive intensity
Barriers to entry into the industry
Threats of available product or service substitutes
Degree of buyer power to negotiate
Degree of supplier power to negotiate
Degree of Industry Rivalry Assessment
The education industry has a high fixed cost ratio and the premier school market is effectively
concentrated, which makes competitive rivalry predictably high. To some extent, the benefits of
being a growth industry offset the high degree of rivalry. Overall rivalry is mitigated because
several schools have large capacity enrollments, and are content seeing premier schools satisfy
growing demand by targeting niche markets. An overall competitive rivalry assessment is
moderate.
Barriers to Entry/ Exit
Residential schools are usually very large organizations with extensive administrative operations,
pervasive facilities and grounds, invaluable brands and a alumni base that can have a legacy well
over a hundred years old. These characteristics, the capital and endowments required to support
these long-term assets, including land grant entitlements, almost per se define large economies of
scale, which certainly represent formidable barriers to entry. Probably one of the most
controversial barriers to entry into specific areas of higher education is the requirements and
restrictions imposed by accrediting associations. General assessment shows that in a school there
is no exit barrier as such especially in private schools, but here a government aid is involved so
the exit barrier in this case will be higher.
Threat of Product or Service Substitution Assessment
There are an estimated 1.07 million schools and that quantity alone would arguably indicate a
wide variety of education options. Price points widely differ between the public and private
education segments. Since private schools are perceived as high in quality relative to government
28
schools, the student is already price conditioned which makes transferring to a more expensive
private school a realistic option.
Degree of Buyer Power Assessment
Buyers are widely fragmented across the market and in general, these potential students have
limited influence on the higher education industry. The role of freely available and instantaneous
information relating to course descriptions, college amenities, and school rankings most certainly
shifts the information asymmetries giving potential students more power of choice. This shift, to a
degree, offsets the effect of market fragmentation and consequently gives buyer power an overall
neutral assessment.
Degree of Supplier Power Assessment
Schools and colleges frequently represent large stable contracts to vendors, so the ensuing
competition for bids among these vendors is typically frenzied. Within the education industry,
there are numerous suppliers of a variety of products and services, fragmented across the
industry. An overall supplier power assessment is low.
29
MANAGEMENT
TEAM
30
MANAGEMENT TEAM:
The management team comprises of a Board, which consists of 7 members who are the Promoters
of the Company and 2 independent Directors. The members are zealous and passionate to pursue
the organizational objectives.
Brief profile of the Directors is as below:
Name of Director Qualification Specialisation Networth (in Rs
Crore)
Dr V Vinitha MCA, Ph. D. Educationist 30
Mr Abhishek Sharma BE (IT), MBA Finance 25
Mr Akhil Goyal M. Tech IT 20
Mr Mohit Chaudhary B. Tech, Eminent
sports personality
Sports 20
Ms Priyanka Ojha MBA Public Relations &
Marketing
25
Ms Sneha Jaiswal MBA Administration 20
Mr Jairam Ramesh Politician,
Economist
Independent Director
Mr Harnam Singh (Retd IAS,
Maharashtra Cadre)
Independent Director
Mr Ajitav Sinha BA (Eco), Reputed
Coach
Sports 30
31
McKinsey’s 7-S framework:
McKinsey & Co's 7S framework provides a useful framework for analyzing the strategic
attributes of our organisation. Strategy, structure and systems can be considered as the "hardware"
of success whilst style, staff, skills and shared values can be seen as the "software". Companies,
in which these soft elements are present, are usually more successful at the implementation of
strategy. There is no particular order to the 7Ss.
Each of the 7Ss is elaborated on below:
Shared Values
Shared values imply that all our employees share the same guiding values. Ours being an
organization for a national cause, we give high importance to values. We believe that each child
has inherent potential to achieve glory and plan to channelise their talent to secure a bright future
for them in Sports. The students are selected purely on merit and are nurtured in an environment
that promotes team spirit and working for a higher-than-self goal.
32
Strategy
The integrated vision and direction of the company, as well as the manner in which it is derived,
articulates, communicates and implements that vision and direction. We will formulate a strategy
and devise time bound tactics to achieve our main objective. To reiterate a few, we wish to
provide facilities akin to those available in developed nations. We would adopt China model to
groom as many talents as possible and then segregate between “winners and potential winners”.
Structure
The policies and procedures which govern the way in which the organisation acts within itself and
within the domain of its environment are also of utmost importance. There is a well defined
structure in our organization. The top management consist of the Directors. Reporting to them
would be the principal who would manage the different sports instructors and teachers. Assisting
in his job would be two VPs, each being responsible for Academics & Administration and Sports.
The hostel supervisor will also report to the Vice-Principal (A&A). There would be proper
synergy among all the tiers of management for achieving our goals.
Systems
The decision making systems within the organisation can range from management intuition, to
structured computer systems to complex expert systems and artificial intelligence.
The school operates on an ERP package that integrates all the operations and keeps track of each
student’s activities and schedule, including training, tuition, diet, etc. The school adopts the On-
Demand Examination system for academics. We would be adopting a technology that would help
us to keep a track of the individual development as well as structure our housekeeping in an
efficient way.
Style
Style refers to the employees shared and common way of thinking and behaving - unwritten
norms of behaviour and thought:
• Leadership Style: We believe in a democratic set up, where every individual would have a
platform to voice their concerns/ suggestions. Top management would basically be facilitator and
communicate with the Board on all issues of importance
• Organizational Culture describes the psychology, attitudes, experiences, beliefs and values
(personal and cultural values) of an organization. It has been defined as "the specific collection of
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values and norms that are shared by people and groups in an organization and that control the way
we interact with each other and with stakeholders outside the organization."
Skills
Skills refer to the fact that employees have the necessary skills to carry out the organisation's
strategy.
The school plans to have a tie up with reputed clubs in corresponding sports – at both national
and international level to keep the trainers and students abreast with the latest methodologies in
sports training. We plan to invite the top ranked sportsman/woman and their coach to the school
for an annual honorary camp to help the students and trainers to gain from their experience and
strategies. We also plan to conduct inter school competition in different sporting faculties to hone
the skill of students and expose them at a wider platform for mental toughness and psychological
edge.
Staff
Staff is an asset and it highlights the importance of hiring capable people with adequate exposure
at the highest level. There has to be a continuous training development programme for them and
should be made to attend workshops, seminars, conducted by apex sporting bodies. Selection,
training, reward and recognition, retention, motivation and assignment to appropriate work are all
key issues.
We employ specialised coaches for each sports and the ratio of students to trainer is 10:1. Our key
area of focus is on providing support system to all the students on the individual basis.
Corporate Social Responsibility
Sponsorship to meritorious students
Special Camps for under-privileged children and possible sponsorship
Green Buildings
Solar Power & Rain Water Harvesting
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Sun Valley Sports School model:
Bird’s Eye View - Projection
Logo & Motto:
You Don’t win Silver, You lose Gold
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Uniforms:
School Uniform Sports Uniform
Sports in Sun Valley:
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Sunvalley Infrastructure:
View of Academic Building
Auditorium
Swimming Pool
Athletic Track
School Bus Cafeteria
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Class rooms
Hostels
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