Business Plan DCFM DIP 02020 000d PDF

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Summary

This assignment is regarding a business plan for entrepreneurship and Business Plan ....

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Department of Commerce and Financial Management University of Kelaniya

Diploma in Business Entrepreneurship & Business Plan| DIPB 02046 Assignment | Business Plan

Name: DCFM/DIP/2020/000

Student Biographies.

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Company name: Wisdom City Educational Institute. Student name: Course: Diploma in Business Student Registration No: DCFM/DIP/2020/000 Date of submission: 24th February 2021

Supervisor name: Mr. Supervisor signature: ………………….

Declaration. 2|Page

The work described in this report was carried out by me under the supervision of Mr. H.A.H. Hettiarachchi and this material has not been submitted in whole or in part to any university or any other institution for another Degree/ Diploma.

…………………………. Student Name: Student ID: Subject Name: Entrepreneurship and Business Plan Subject Code: DIPB 02046 Diploma in Business Department of Commerce and Financial Management Faculty of Commerce and Management Studies University of Kelaniya

Supervisor Approval. 3|Page

I certify that work described in this report was conducted under the supervision of me and the report is suitable for submission to the university for the purpose of evaluation.

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Table of Contents

1.0 Executive Summary…...…………………………………………………………………07 2.0 Business Description…...………………………………………………………………...08 2.1 Company Background…...………………………………………………………….…08 2.2 Vision and Mission……………………………………………………………………. 08 4|Page

2.3 Goals & Objectives………………………………………………………………….…09 2.4 Products & Services……………………………………………………………………09 2.5 Strengths & Core Competencies………………………………………………………. 11 2.6 Legal Status & Ownership. ……………………………………………………………11 2.7 Key Partners……………………………………………………………………………11 3.0 Industry & Market Analysis…...………………………………………………………...12 3.1 Industry Background…...………………………………………………………………12 3.2 Industry Structure………………………………………………………………………13 3.3 Market Segmentation…………………………………………………………….….….14 3.4 Target Market……………………………………………………………………….….15 3.5 Market Analysis……………………………………………………………………..….16 3.6 Compative Advantage………………………………………………………….….……17 3.7 Competitor Analysis………………………………………………………….…...……17 3.8 SWOT Analysis………………………………………………………………………...21 4.0 Marketing & Sales Plan……………………………………………………………….…22 4.1 Overall Marketing Strategy….…...…………………………………………………….22 4.2 Marketing Message & Tools……………………………………………………...….…22 4.3 Product, Price, Promotions, Distribution (Place) ………………………………………23 4.4 Market Positioning. …………………………………………………………………….24 4.5 Marketing Calendar & Budget………………………………………………………….25 4.6 Estimates of Annual Sales & Market Share…………………………………………….26 5.0 Operations Plan……………………………………………………………………….….27 5.1 Locations & Facilities…………………………………………………………………..27 5.2 Quality Control…………………………………………………………………………27 6.0 Management Plan…………………………………………………………………….….28 6.1 Organization Structure………………………………………………………………….28 6.2 Human Resource Management…………………………………………………………29 6.3 Management Team………………………………………………………………….….30 7.0 Financials………………………………………………………………………………...32 7.1 Startup budget…………………………………………………………………………..32 5|Page

7.2 Forecast Income Statement……………………………………………………………..33 7.3 Forecast Statement of Financial Position………………………………………………. 34 7.4 Forecast Cash Flow…………………………………………………..…………………35

1.0 Executive Summary. “Wisdom City Education Institute” is a standed private education business, a sole proprietorship business going to established in 2021. The business is owned and oversee the managers by Mr. Chamath Perera and there are 5 managers to manage the business. We will provide the best solutions for online education and extra class education. Our vision is ensuring to be the

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forefront of digitally revolution in technological education of sri lanka as a private education institute. “Wisdom City Education Institute” would like to offer our customers online education through an App and website and other online teaching medias. We have plan to approach both local and foreign markets through online classes and app. Also, we would provide classroom classes and smart classroom classes in our institute as well. We will cover both Colombo and Gampaha districts through classroom classes and island wide and global through our online classes and app. We will use social media for our promotions. The market is full with many competitive institutes like us, there for the market is an oligopolistic and the market structure. Our marketing executives have been empowered to implement strategies that will not only make us penetrate the target market but also make us stand out from others. When it comes to market, we are going to segment it and we have identified the target market as lower middle to high income earners customer of age 7-19 our young students. We have given weightage for ordinary and Advance level students. There are many competitors in the market currently. “Sigma institute” and “Shakya Institute” are the main competition we will have because they have introduced online classes due to pandemic situation and sigma institute also introduce an app for there students. As area competitors we will have “Wasity institute” and “Science Image”. By analyzing the strengths and weakness we will face the industrial competition. The main competitive advantages we have over competition are our App and online classes island wide and globally, doing both online and physical classes and smart classroom classes. With these advantages we will provide the best quality education a all students and expand the business to next level. For the end of first year, we will have sales value and students base of more than 1000 both online and classroom classes, we have planned to open the 2nd institute in Kandy end of 2nd year. Based on the research and financial flow end of the 2nd year we will have an increase of revenue over 60%, as the business grow the promotions will be also high and customer will increase 45%. We have planned to get sales income of Rs. 2.5Mn end of 2021. The purpose of the business plan is to expand the business, brand awareness and to seek investors. Our brand will be next phase of online and extra classroom education in sri lanka.

2.0 Business Description. 2.1 Company Background. Due to pandemic situation online learning is currently having a hung demand in the market. There are many failures and issues with the current online teaching and learning system. To 7|Page

overcome these failures Wisdom City Educational Institute is a private tutoring institute going to start in mid-May 2021 in Kiribathgoda will provide quality products and professional services such as classroom classes, online classes and smart classroom classes through learning management system (LMS) and products are learning materials, eBooks and App. The products and services will be provided for a reasonable price and for local students as well as students in Asia region. The institute will provide education for primary level up to Advance level students. Within next couple of years, we would expand our business and start new branch at Kandy and provide our online classes to England and Italy.

2.2 Vision and Mission. Vision To be at the forefront of digitally revolution in technological education of sri lanka and global market and to improve Customer satisfaction. Mission To provide high quality education, learning and training with a digital environment beyond traditional practice. Creating technologically and innovative thinking to meet a digitally evolved future. To transform students into knowledgeable and leaders of society.

2.3 Goals & Objectives Objectives 

Increase sales and marketing by 50% in 2022.

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Start new branch at Kandy end of 2022 and start branch at every province in sri lanka end of every 2 years.

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To have the best market size with local as well as global compaired to competitors in 2023.

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To provide our online classes to England and Italy end of 2023.

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Ensuring maintenance of institute standards and developing of our human resources through training.

Goals

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Training our students adopting the latest Teaching and E-Learning methodologies with the rapid technology advancement.

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Understand the relationship between students and educational achievement and their emotional well-being.

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To become the best institute out of all competition and make a brand name in future.

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To promote digital classroom concept all around the sri lanka through our app.

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To hire the best teachers and staff members.

2.4 Products & Services. Service Teaching (Extra Classes) (Online classes and classroom classes)

Inclusive access

Smart Classroom

Online Tutoring

Product Online learning services (Study Materials)

Books and E-Books

Description We teach the students in physically and digitally classes according to the government syllabus. We provide both Sinhala and English Medius for study. For the digital classes any student can join island wide through our App. Online students will have exams as well as assignments for evaluation. Students can access to the study materials related to day-to-day lessons anytime through LMS. We provide the services free of charge. Smart Class room we provide a glimpse to future of education. This is the method teaching all subjects through digital medium using tablets and improve of knowledge within a short period of time. Only provide for O/L & A/L students. Given students an access to improve their knowledge feather more than their syllabus through LMS. Tutoring can be requested by students. Only provide for O/L & A/L students. This will include charges. Description This includes exam papers of schools, study material, past papers, module papers, papers made by our teachers and answer for all papers by our teachers. Consumer has to pay will be updated monthly with papers. With Online Tutoring we proved books and eBooks to our students. 9|Page

App

(Inclusive access)

Consumer has to pay will be updated monthly with books. Anyone can download through app store android and apple through this student can access to our Study Materials and other services.

(Online classes and classroom classes)

(Smart Classroom)

(Online Tutoring)

(E-Books & Study Materials)

(App)

2.5 Strengths & Core Competencies. Strength 

A very advanced technology is be used for the education.

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Better class teachers to teach and development students.

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Creating knowledge using new ways (LMS) for students based.

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Growth of the institute with technological advances.

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Motivation for employees and educated what we know.

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New concepts in teaching compaired to other institutes.

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Highly skilled workforce through successful training and learning programmers.

Competencies 

Skills of critical thinking.

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Problem-solving

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Interpersonal skills of communication

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Social and emotional proficiencies

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Thinking

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Personal and social

2.6 Legal Status & Ownership. Wisdom City Education Institute is a sole proprietorship which is owned and controlled by Chamath Perera. Due to sole owners of businesses can self-contractors and cause more effective towards goals. Also follow the digital guideline when teaching online. By the Start of 3rd year we planned to register our business as a private Limited company.

2.7 Key Partners. Initial investor. Other cash investors. Bank.

3.0 Industry & Market Analysis. 3.1 Industry Background. Today, there are around 10,390 government schools and more than 50 international schools in sri lanka. Schooling is compulsory for children from age 5 to 14 years of age and it extend up to age 19. Education is state funded and offered free of charge at all levels, including the university 11 | P a g e

level but for international school must do a payment monthly. Sri lanka is having a free education system schools only stick to their syllabus due to this reason most of the students are intended to learn from private education institutes. Demand for private tutoring in Sri Lanka has increased over time. Private tuition classes are in sri lanka especially in urban areas. “Based on a survey conducted by Sri Lankan National Institute of Education, Suraweera (2011) reports that 91%, 73% and 68% of grade 10 students in Sri Lanka received private tutoring in Mathematics, Science and English prior to GCE O/L examination. GCE Advanced Level (A/L) students at grade 13 usually go to private tuition classes depending on their major stream”- Asankha Pallegedara. The results imply that private tutoring has become necessity good in sri lankan household budget recently. The education industry is growing day by day with the impact of this pandemic schools also have introduce the online teaching but the process is no much effective at all because they haven’t introduced an evaluation system and also many network errors. Sri lanka households have high demand for private tuition classes even under the free education policy provided by Sri Lankan.

Market size and Growth rate. There are many private education institutes in the market large and smaller size institutes and classes. But most smaller size institutes or classes only provide classroom classes and some of the large institutes provide both online and classroom classes. Market size of private tutoring is

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70% per year. We are capable of serving 40% of our students base with both online and classroom classes. Growth rate of the business is around 15% per year. We will use our resources to increase the growth rates by mainly advertising and adapting to the current environment and overseen students’ requirements.

3.2 Industry Structure. Porter’s five forces analysis Threat of new entrants. In private education industry is facing high threat of new entrants due to anyone can easily start a class. To face this issue, we have to be unique and creative with what we present to our customers, building capacities and spending money on research and development and counter our competition before it been major threat to us. We have a unique set of services and also who we present them to customer are special. Bargaining power of suppliers. The general suppliers of private education industry will be those who supply furniture, electronic, stationary materials and building lenders and specially for our business the digital support providers, electronic supplies and digital platforms etc. The industry is fill with supplies. Therefor the bargaining power of suppliers will be less as the complete on price. Bargaining power of buyers. Buyers are often a demanding lot. We provide our customers with best experience and quality services with an outstanding reasonable price. Most of the buys decide how the service is delivered and the price therefor the bargaining power of buyers are moderate.

Threat of substitute products or services. When a new product or service meet a similar customer needs in different ways, industry profitability suffers. The threat of substitute product or service is low if it offers a value propositions that is uniquely different from present offering of the industry. Rivalry among existing competitors.

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Competitors in an industry is intense high then it will drive down price and decrease the overall profitability of the industry. This competition does take the overall long-term profitability of the organization. With the competitive advantages we have over our business the chance of rivalry among existing competitors will be low.

3.3 Market Segmentation. By using market segmentation to categorize the market in to different groups based on geographical, demographical and other factors. This strategy is very important to doing marketing campaign and focus the product to specific customers also, After the evaluating market segments, we able to reduce our waste of resources and get more understanding of current market. Geographical segmentation - We divided whole market based on nine provinces. Then we wish to selected only one province for classroom classes promotion as Western province and rest of nine provinces to promote online classes and Global in Asian countries. Demographical segmentation - We got both men and women as a gender. In addition, concerning about the age it is in 7 to 19 years old. Physiological segmentation - Our services and product more related to middle class and highclass people specially for students who like to learn from online. Behavioral segmentation - People who prefer online classes with technological advance rather than traditional classes are a strength to our company.

3.4 Target Market. Our target market is “School Students” can be divided in to 4 parts as – Primary, Secondary, Ordinary level and Advance level. Primary: Students from grade 3-5, (Age 7- 10)

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Secondary: Students from grade 6 -9, (Age 11- 14) Ordinary level: Students from grade 10 -11, (Age 15- 16) Advance level: Students from grade 12 -13, (Age 17- 19) We can give more weightage to “Advance level Students” and “Ordinary level” because the need more time and can gain more revenue to our institute with compaired to primary and secondary students. In sri lanka more than 65% teenagers use smart devices and within Colombo and Gampaha districts more than 60% teenagers use smart devices so they can join to online teaching and come to our physical classes. More than 85% students go to extra classes Colombo and Gampaha districts.

3.5 Market Analysis. Macro environment factors are the external forces which influences business marketing strategy in various ways. These factors are uncontrollable and due to change over time and adaptation is a must. Elements of macro-environment of marketing are; 1. 2. 3. 4. 5. 6.

Demographic Analysis. Economic Analysis. Natural Analysis Technology Analysis. Political Analysis. Cultural Analysis.

As our business don’t use natural resources, we have excluded Natural environment. Demographic Analysis It is mainly use companies to identify target market and their specific customer group. When it comes to the demographic environment it is consist with sex, gender, education level, income level and other socialistic factors. In our business mainly concern about income level, age and gender also. Our classes we wish to be popular both male and female students. In addition, concerning about age it is more suitable to age 7 to 19 years old people. Not only that when think about the income level we believe the middle lower level up to luxury people to buy our products and services.

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Economic Analysis According to the economic environment as a business we have to mainly concern about parents’ income, interest rate loans, government policy for education institutes. Due to pandemic situation parents’ income could be lower but for our services we have a moderate level price set can affordable. Increasing the profit and revenue of the business we will have to pay some taxes to the government and we have to get some standard to the services to build up customer loyalty. Technological Analysis This is also one of the main environments that effect to the company. At present, the technology is day to day developing ever more rapidly. For online classes can add featur...