Choosing a Location for a Burger King fast food...

The nature of a Burger King restaurant and a car factory are both very different as they are both different services, therefore there will be many varying factors that need to be considered when choosing an appropriate location for siting either of these. Burger King provides a service to the public, therefore it lies in the tertiary sector, whilst a car factory is a manufacturing business, which provides cars for there company. Every business needs to be located, but this has to be done carefully, as it is very expensive to reverse. The main factors which will influence a businesses decision to locate in a certain area are, competition, costs of the area, government incentives, availability of labour, proximity to materials and†¦show more content†¦The type of land may also be important, as a car factory will not need the same land as a restaurant would, this would mean a clear price difference. Availability of labour is also a key factor, both businesses will need staff to work for them. In both businesses, a large supply of unskilled workers are required to be trained up and taught how to perform there jobs. The businesses would need to locate in an area where there is a high-level of unemployment as they will easily attract people wanting jobs. Also, these areas will have low labour costs, as they will be able to pay workers the minimum wage rate. One factor that a car manufacturer will have to consider, but not Burger King, is the proximity to market. This is because businesses that assemble components often chose to locate closer to where the customer markets are. This is because the cost of transporting the finished heavy product is more then transporting the raw materials. Similarly, a factor that Burger King will have to consider and not a car factory is the shops that are around them. Burger King needs to be located in a High street or a urban town centre, as this i s where the majority of people who visit fast-food restaurants will be shopping or visiting. People will already be in the area, and if they see a fast-food restaurant and are hungry they will go in, however they will not drive outShow MoreRelatedDesigning a Customer Driven Statergy23698 Words   |  95 Pagesand fresh doughnuts. Rosenberg started franchising the Dunkin’ Donuts name, and the chain grew rapidly throughout the Midwest and Southeast. By the early 1990s, however, Dunkin’ was losing breakfast sales to morning sandwiches at McDonald’s and Burger King. Starbucks and other high-end cafes began sprouting up, bringing more competition. Sales slid as the company clung to its strategy of selling sugary doughnuts by the dozen. In the mid-1990s, however, Dunkin’ shifted its focus from doughnuts to coffeeRead MoreHbs Case Study Guid30915 Words   |  124 Pages..................................... 102 PRACTICE CASE 22 (HBS AS A BUSINESS).............. ............................................................................................................................. 104 PRACTICE CASE 23 (FAST FOOD RESTAURANT) .................................................................................................................................. 106 PRACTICE CASE 24 (AUTOMOBILE PRODUCER) ................................................................Read Morepaul hoang answers72561 Words   |  291 Pagessmall company such as Reload from entering overseas markets where such rivals exist. By locating in a different continent, Reload will need to establish itself with new suppliers who are reliable in providing the firm with fresh ingredients for its food and beverages. Legal systems are different in foreign countries so legal experts will need to be hired to ensure there is a smooth transition of operations in Scotland and other countries outside of New Zealand.  © Paul Hoang and IBID Press Read MoreReed Supermarket Case32354 Words   |  130 PagesThe international market selection process Learning objectives 8.1 Introduction 8.2 International market selection: SMEs versus LSEs x CONTENTS 8.3 Building a model for international market selection 8.4 Market expansion strategies 8.5 The global product/market portfolio 8.6 Summary Case studies 8.1 Tata Nano: international market selection with the world’s cheapest car 8.2 Philips Lighting: screening markets in the Middle East 8.3 Video case study: Hasbro Questions for discussion References Read MoreCase Studies67624 Words   |  271 Pagesvision, and new products since then have been based on this vision. The adaptation of the strategy went well beyond the menu, encompassing many aspects of the restaurant management system. Two different menu boards were displayed in each restaurant – green for vegetarian products and purple for non-vegetarian products. Behind the counter, restaurant kitchens had separate, dedicated preparation areas for the meat and non-meat products. The kitchen crew (in charge of cooking) had different uniforms to distinguishRead MoreOperational Management36687 Words   |  147 PagesTAB LE OF CONTENTS Section Introduction 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Operations and Productivity Operations Strategy in a Global Environment Total Quality Management Forecasting Design of Goods and Services Process Strategy and Capacity Planning Location Strategies Human Resources, Job Design and Organisational Effectiveness Supply Chain Management Inventory Management and JIT Systems Aggregate Scheduling Materials Resources Planning (MRPII) Project Management Bibliography Title of Section Page 3-6Read MoreMarketing Mistakes and Successes175322 Words   |  702 Pagesaggressive Airbus, brought market shares close to parity. Both firms are now introducing strikingly new planes, but are finding problems with their outsourcing key components to foreign suppliers. Comebacks McDonald’s had long dominated the fast food restaurant market. Then it began to falter, and hungry competitors made inroads into its competitive position. As it fought to regain its momentum, it explored diversifications and ever more store openings, while profitability plummeted. Recently,Read MoreVarian Solution153645 Words   |  615 Pagesmeals in French gourmet restaurants. The price of Jonathan’s brand of whiskey is $20 per bottle, the price of designer tennis shoes is $80 per pair, and the price of gourmet restaurant meals is $50 per meal. After he has paid his taxes and alimony, Jonathan has $400 a week to spend. (a) Write down a budget equation for Jonathan, where W stands for the number of bottles of whiskey, T stands for the number of pairs of tennis shoes, and M for the number of gourmet restaurant meals that he consumes. Read MoreMarketing Management 14th Edition Test Bank Kotler Test Bank173911 Words   |  696 Pagesa firms intangible assets. D) It is more important for bigger organizations than smaller ones. E) It is seldom used by nonprofit organizations. Answer: B Page Ref: 4 Objective: 1 Difficulty: Easy 2) ________ is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. A) Marketing management B) Knowledge management C) Operations management D) Strategic management E) DistributionRead MoreMiss23262 Words   |  94 Pagesenvironment and internal environment (as a basis for deciding on a long-term strategic direction and developing a strategic vision), then proceed to an evaluation of the most promising alternative strategic options and business models, and culminate in choosing a specific strategy. This chapter presents the concepts and analytical tools for zeroing in on a single-business company’s external environment. Attention centers on the competitive arena in which a company operates, the drivers of market change

Day Care Essay example - 4502 Words

A STUDY OF CURRENT PROBLEMS ASSOCIATED WITH INADEQUATE CHILDCARE FOR PARENTS WHO WORK NONTRADITIONAL HOURS PROPOSAL FOR MSA 685 PROJECT Submitted by Larone R. Daniels December 06, 2004 Instructor Dr. Diana Otto ABSTRACT The number of parents entering the workforce continues to grow. However, the amount of available, affordable, and quality childcare facilities in the United States remains inadequate. Employees using inadequate childcare are more likely to be late for work, absent, or distracted on the job. High rates of turnover, absenteeism, and low productivity cost employers money. This researcher proposes to formulate a study designed to analyze the problems associated with inadequate childcare and parents who†¦show more content†¦When childcare problems are chronic, parents don’t just miss work; they may leave their jobs altogether. Finding childcare is especially difficult for employees who work evening or weekend hours or for those who have rotating shifts. More and more U.S. workers find themselves working nontraditional hours as the trend toward a global, service-based economy intensifies. Most child care providers offer day care during the traditional working hours of nine to five. Now, only 1 out of 3 mothers stays at home and provides full-time care for her children. About half of all preschoolers spend at least part of the day in some type of facility outside of the home (DOL, 1998). Dual career families are now the most predominant types of family in the American workforce. Because so many parents face the same problems, childcare is no longer a strictly private matter; it is an urgent public concern. Parents, therefore, have a special role to play in ensuring that early care and education become a high priority on the national agenda. The Statement of the Problem This researcher proposes to examine and evaluate current problems associated with inadequate childcare for parents who workShow MoreRelatedDay Care Essay2550 Words   |  11 Pageswhile they are away at work. â€Å"These days couples face complex negotiations over work, family, child care, and housekeeping. It becomes evident that where traditional marriage through the centuries has been a partnership based on mutual dependency, modern marriage demands greater self-sufficiency† (Hekker). Day care becomes a necessity for many families, and the main concern for most parents is if the day care will be a positive experience for their children. Day care can be a positive option for parentsRead MoreUnited Day Care Essay1188 Words   |  5 PagesIn a regular day to day basis businesses must face a great deal of external and internal forces. Businesses have many different aspects of external and internal forces they must face in order to be successful. External forces, interna l forces and trends continually make the pathway for where a business is headed and where a business stands currently. Organizations should do a SWOTT analysis to examine business potential and business risks so that if any action needs to be conducted it can be doneRead More Day-care is Good for Children Essay1001 Words   |  5 Pages Day-care is a place where children ranging from as little as one month, to any other age, are taken care of during the day. This could be due to the parents being too busy to take care of them during the same time, either due to work, school, or other time consuming obligations. Day-care therefore provides alternative care for little children, when their parents are away. This is widely criticized by a large number of people who believe that children should not be left under the care of strangersRead MoreEssay on The Effect of Day Care on Children967 Words   |  4 PagesThe Effect of Day Care on Children Because many stay at home mothers are entering the work force, there is a higher demand for day care centers for the mothers’ children. The topic of day care centers and whether they are beneficial to young children is becoming discussed more frequently. An increasing number of parents are becoming more cautious about the type of childcare they choose for their children. Some parents are adhering to the traditional way of raising their children by staying at homeRead MoreEssay on Sending Your Child to a Day Care Center3341 Words   |  14 PagesSending Your Child to a Day Care Center Abstract Sending your child to day care is a tough decision to make. Parents most look into various ideas when picking a day care center. They also must think about what is best for their child’s development whether it be social, physical or cognitive. There are various pros and cons to sending your child to day care and decide if it is right for your child and family. â€Å"As they stepped into Ms. Couchons office, the motherRead MorePrograms and Activities Involved in a Long Day Care Essay736 Words   |  3 Pagesorganization is to provide a long day care mainly for children aged 0-5 years and give education to children so they can learn through play as well as formal programs or activities. Even there aim is to acknowledge and respect all staff skills and interests. Even they try to have partnerships with families and communities side by side they create home-like environment. The support that organization provides†¨They support the Parents so they can leave their children’s in day care when they on work. They alsoRead MoreWhat Do Parents Look For A Day Care Center?2228 Words   |  9 Pagesattention and care is given to children or old people who are not independent and cannot take care of themselves. Most of the time people love to refer to daycare as centers for taking care of children. A day care center should be secure enough for children to play around without fear of danger or harm. A day care center should also be an educational facility for children and it must be licensed. What do parents look for in a day care center? When relatives are looking for a day care center, theyRead MoreBusiness Feasibility Study of a Day Care Center Essay2746 Words   |  11 PagesStudy of A Home Day Care Center Muhisani Kerr OMM 614 Innovation and Entrepreneurship Josephine Carola April 9th, 2012 Executive Summary Kilo’s Loving Care is a venture that provides 24 hour home care services for children in DeKalb County. This facility provides child care services for up to 6 children from the age of 6 months to 12 years. The service also provides weekend and holiday care for parents who work non-traditional hours. There are 73 child care centers in a 35 mileRead MoreEast Hollywood Child Day Care Center Fundraising Event993 Words   |  4 PagesEast Hollywood Child Day Care Center Fundraising Event Since day care centers are convenient resources for working parents, it is crucial for these centers to provide healthy meals and snacks for the children. On December 10, 2015 parents, children, and friends will be able to enter the new day care center opening on the here in Los Angeles. About 100 participants of all ages are expected to attend the fundraising event. The theme: good habits start at an early age will be displayed throughout theRead MoreHome Day Care vs Center Based Care Essay1431 Words   |  6 Pages121-049 16 March 2011 Home Day Care verses Center Based Day Care Choosing between center-based day care and home-based day care can be a very harrowing experience for a parent. The following evaluation may be helpful in choosing the best fit for your day care needs. Although many parents may choose center-based care, as a parent I prefer home day care in favor of its scheduling, environment, pricing, and amenities. Home-based day care takes place in a day care providers home, which results

Elearning Business Plan Free Essays

string(82) " of around 635000 inhabitants of our country who fall within the 19-60 age group\." DECLARATION OF ORIGINALITY OF WORK: I affirm that the attached work is entirely my own, except where the words or ideas of other writers are specifically acknowledged according to accepted citation conventions. This assignment has not been submitted for any other course at Robert Kennedy College or any other institution. I have revised, edited and proofread this paper. We will write a custom essay sample on Elearning Business Plan or any similar topic only for you Order Now Veronika Olenika, 10/08/2012 CERTIFICATION OF AUTHORSHIP I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and fully disclosed in this paper. I have also cited any sources (footnotes or endnotes) from which I used data, ideas, theories, or words, whether quotes directly or paraphrased. I further acknowledge that this paper has been prepared by me specifically for this course. Veronika Olenika, 10/08/2012 Midterm examination: Entrepreneurship Word count: 3016 (excluding bibliography, table of contents, appendices, exhibits) Page 1 Table of Contents 1 Executive Summary †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 1. 1 1. 2 1. 3 1. 4 1. 5 1. 2 Service †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4 Business Case †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 4 Market Size †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 5 Start-up costs †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 6 Pay-off †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Management Team †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 Business Plan †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 2. 1 2. 2 2. 3 2. 4 2. 5 2. 6 Overview †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 Business Model †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 Market Analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Financial Statements †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 11 General Strategy (Development Plan) †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 13 Competitive Advantage †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 15 Appendix 1 – Management Team †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 16 Exhibitsà ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 Bibliography †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 24 Exhibits’ List Table 1 Forecasted Income Statements †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5 Table 2 Calculated Market Share †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6 Tab le 3 Survey Participants’ per Age Group †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 10 Table 4 Survey Results †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 0 Page 2 Table 5 Projected 3 years Income Statement †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 11 Table 6 Projected 3 Years Balance Sheet †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 12 Table 7 Projected 3 years Cash Flow †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 12 Figure 1 Survey Results †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 4 Figure 2 Forecasted break-even chart †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Figure 3 Start-up Roadmap †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 14 Figure 4 Calculated NPV for the start-up †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 18 Figure 5 Projected Monthly Financ ial Statement of Accounts for 2012/2013 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 18 Figure 6 Projected Monthly Financial Statement of Accounts for 2014 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 19 Figure 7 Projected Monthly Financial Statement of Accounts for 2015 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 0 Figure 8 Projected Monthly Income Statement for 2013 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 20 Figure 9 Projected Monthly Income Statement for 2014 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 21 Figure 10 Projected Monthly Income Statement for 2015 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 21 Figure 11 Projected Monthly Cash Flow 2012/2013 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 22 Figure 12 Projected Monthly Cash Flow 2014 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2 Figure 13 Projected Monthly Cash Flow 2015 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 23 Page 3 1 Executive Summary 1. 1 Service ‘e-Individual Language Course’ is a new service for the market in my country. This services will help people who are willing to learn foreign languages (Russian, English, German, French, Italian, Spanish, Norwegian, Finnish and other languages) to accomplish this directly from their offices and/or homes with no need to go to the special course place and to spend time for the way to and from the course venue. 1. 2 Business Case Analysis of the market has revealed that the need in foreign languages knowledge is growing constantly. This is required for business expansion to other markets and in order to keep the competitive advantage of already existing businesses. It became obvious to the different people that foreign language knowledge is required to seize the lucrative opportunities. There is a plenty of proposals on the market for foreign language courses, but you have to arrive to a certain place – Language course office: 1. to join the group and the time of the course which is not always comfortable 2. o have an individual language course session for the price that is higher than for group training According to the recent research 81% of people are willing to learn the selected language individually and not within the group, however they are constrained with the price of the individual language session. The same research revealed that 90% of the aforementioned people are ready to take an advantag e of distance learning in order to save their time and to have the flexibility for other tasks and duties they are obliged to fulfill. Besides that, they are ready to pay slightly higher price that is defined for the group trainings and slightly lower price that is defined for the individual trainings. Figure 1 Survey Results Would you take a disctance learning course? 6% 1% 3% Would you select the individual language course if this would cost 2/3 from the current price? 1% 5% 13% 90% 81% Rather Yes Yes Rather No No Rather Yes Yes Rather No No Page 4 Our proposal: – To provide individual language course sessions at two thirds of the currently existing price on the market (15 EUR vs. 20 EUR excl. VAT) This potentially attracts to us 30% of currently lost market and also 50% of the people who are willing to change their educational sessions from group to individual approach. The forecasted Income statement is presented for your reference below, please refer to the 2. 4 Financial Statements Chapter for details. Table 1 Forecasted Income Statements Income Statement for years ended Dec-12 Sales (50% of average sales is expected in the first operational year) Electricity Utilities Internet Rent Advertisment Salaries (teachers) Salaries (managing director/ HR manager) Salary (Assistant) Salary (Accountant) Depreciation (equipment) Profit before Interset Interest (2%) Profit befor Tax Taxes (35%) Profit/Loss after Tax Dec-13 Dec-14 Dec-15 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ (10,000. 00) â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ (10,000. 00) â‚ ¬ â‚ ¬ (10,000. 00) â‚ ¬ â‚ ¬ (10,000. 00) â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 114,660. 00 (330. 00) (330. 0) (240. 00) (6,000. 00) (3,000. 00) (61,600. 00) (5,500. 00) (3,850. 00) (6,600. 00) (4,620. 00) 22,590. 00 (1,242. 00) 21,348. 00 (32,844. 00) (11,496. 00) â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 176,400. 00 (360. 00) (360. 00) (240. 00) (6,000. 00) (1,200. 00) (67,200. 00) (12,000. 00) (4,200. 00) (7,200. 00) (4,620. 00) 73,020. 00 (1,242. 00) 71,778. 00 (32,844. 00) 38,934. 00 â‚ ¬ 176,400. 00 â‚ ¬ (360. 00) â‚ ¬ (360. 00) â‚ ¬ (240. 00) â‚ ¬ (6,000. 00) â‚ ¬ (1,200. 00) â‚ ¬ (67,200. 00) â‚ ¬ (12,000. 00) â‚ ¬ (4,200. 00) â‚ ¬ (7,200. 00) â‚ ¬ (4,620. 00) â‚ ¬ 73,020. 0 â‚ ¬ (621. 00) â‚ ¬ 72,399. 00 â‚ ¬ (32,844. 00) â‚ ¬ 39,555. 00 1. 3 Market Size The potential for the market is huge for the service proposed, due to the fact that we are not constrained with students and teachers physical presence at one place, these constraints are resolved by means of world wide web internet access and social networking applications like Skypeâ„ ¢ and others. However in order to start with a prototype for our service we are aiming to the audience of around 635000 inhabitants of our country who fall within the 19-60 a ge group. You read "Elearning Business Plan" in category "Essay examples" 0% of this amount has to know at least two languages due to the geographical position of the country and the services/products this country is focusing on, thus our audience is 508000 people. Let’s assume that according to the statistics only 3rd part of them has their own PCs Workstations, Notebooks or iPads, thus our audience now is limited to 152400 people. Page 5 These people will come from different areas, but due to the fact that the main service areas for our country are tourism, woods and IT services we do have a good opportunity for the service proposed. With the planned teachers’ capacity we will cover 7% (refer to Calculated Market Share) of the market per year with assumption that every customer will stay with us at least for one year. Thus, we have a very good outlook for our service extension. Table 2 Calculated Market Share teachers working days sessions a day capacity for one year* calculated market size % of the available market 8 230 6 11040 152400 7% 1. 4 Start-up costs Start-up costs for the service are 62’100 EUR to be prepared to start the business on a high quality level. The start-up costs include but are not limited to: – Company legal authorization – Office re-engineering/adaptation costs – Language programs’ adaptation for on-line sessions – Internet connection set-up – Office arrangements (furniture, stationery, etc. ) – Advertisement expenses The start-up investment will be covered by National Bank with Interest rate 2% and for 2 years deferred payment for the borrowed amount. 1. 5 Pay-off We are planning to break-even in 2 years and 10 months. The assumptions are as follows: – First operational year: Jan-Jun’13 in average 50% of planned sales are realized – First operational year: Jul-Dec’13 in average 80% of planned sales are realized – Second and subsequent operational years are operated on 100% of the planned sales level. Page 6 Figure 2 Forecasted break-even chart EUR, K 90 60 Potential Reward 30 Break-even 0 t Dec’13 Dec’14 Dec’15 Dec’16 Dec’17 -30 -60 Depth of hole NPV for the project covering 5 years forecast is equal 31’449. 0 EUR (please refer to the Figure 4 Calculated NPV for the start-up). 1. 6 Management Team The Managing Director and HR manager is a Project Management Professional since 2009 (PMIâ„ ¢) with extensive experience in IT company management. She is a second year ‘General MBA’ student at Robert Kennedy College, Switzerland. The Accountant is a professional accountant, with an extensive experience in accounti ng for more than 10 years, operating within the companies up to 250 employees. The Team Lead of the teachers’ group – English language teacher, graduate of the State University with extensive experience of educational programs development and courses conduction. (Please refer to the Appendix 1 – Management Team for detailed team members’ information) Page 7 2 Business Plan 2. 1 Overview Our ‘e-Individual Language Course’ service will tackle at least two issues: 1. Provides an opportunity to learn the foreign language individually at a lower price (2/3 from the current market price) 2. Provides flexibility in learning sessions due to individual approach to each and every customer we have. At the moment we are planning to have nine [9] languages in our service, these are: – English – German – French – Latvian – Russian – Italian – Spanish – Norwegian – Finnish The languages listed above are of a great interest for our inhabitants due to the reason that the main business focus of the country is Tourism. Another driver to learn the Scandinavian languages is an opportunity to find jobs in neighbor countries and to raise the level of living. One individual language session shall last for 60 minutes, i. e. one astronomic hour. The desired time of the session is agreed in advance with the teacher. The session itself is run via Skypeâ„ ¢ hence all the required files could be shared either thru the communication tool or via e-mail in advance. The communication tool, that we are planning to use is designed for video transmission, thus the teacher and the student will see and hear each other like they are in one room. 2. 2 Business Model The value proposition of the ‘e-Individual Language Course’ service is to provide our customers the high quality language course at lower prices than currently exists and schedule the sessions independently from student physical presence capabilities. Every language teacher has his/her own schedule, which has to be filled with six ‘one hour’ sessions in a timeframe from 8:00 until 22:00. Having such flexibility in a time table let both the student and the teacher to find the most appropriate time slot for the studies. Moreover, the studies’ sessions must not be scheduled always to one and the same timeslot, but could vary depending on the student availability. Another important thing is that student may select a number of sessions per week/month, so his/her studies will proceed in the most efficient way. Our teachers will provide a recommendation on the frequency of the language sessions/ lessons, however the final decision will always stay with the student. Page 8 An office space is a savings item for our start-up. We do not need to rent a big office and setup separate rooms for the individual or group language sessions, like our competitors do, due to the fact that teacher’s and student’s physical presence is required while the session. We will limit our office space to three rooms and our teachers will be placed in a so called ‘boxes’ in order they will be able to conduct the language sessions efficiently with their students and would not disturb their colleagues, working at the same time. In addition, for early mornings’ and late evenings’ sessions it is allowed to conduct these from teachers’ homes. The aforementioned saving is quantifiable. We will require 55 m 2 of the office space for all our employees, however if the physical presence would be required for students and their teachers, we would need at least seven 10 m2 spaces, meaning 90 m2 together with MD/HR and Accountant rooms. The price for the chosen office space is 10 EUR per square meter per month, when we are talking about the distance learning model. When the physical presence is required we are talking about the language office preferably in the city centre with much higher prices – 30 EUR per square meter per month. Thus there is an overt saving of 2150 EUR a month, 25’800 EUR a year. We do not consider our growth at the current moment. However, we do see the potential in extension of the languages’ set and the geographical extension, covering neighbor countries, due to the fact that we have a good knowledge of their language, because of our joint history during a long period of time (from 1917 till 1990). 2. 3 Market Analysis The respective market analysis has been performed. Our analysis has revealed a good potential for our opportunity of ‘e-Learning individual Course’ service. There are no language course companies with the similar proposals on the market at the moment, thus we are in a good position with our start-up from the market niche point of view. Our country population we are interested in is limited to 635000 inhabitants form the 19-60 years age group. 80% of this amount has to know at least two languages due to geographical position of the country and the services/products this country is focusing on, thus our audience is 508000 people. Let’s assume that according to the statistics only every 3rd has their own PCs Workstations, Notebooks or iPads, with respective internet connection and video facilities, thus our audience now is limited to 152400 people. These people arise from different areas, but due to the fact that the main service areas for our country are tourism, woods and IT services we do have a good opportunity for the service proposed. In order to confirm our assumption, the small survey has been held. The following questions were addressed: 1. Are you planning to take a language course within next year? 2. Do you need this for your professional growth/ opportunities? Page 9 3. Would you select the individual language course if this would cost 2/3 from the current price? 1 4. Would you take a distance learning language course? 2 5. If Yes, for Nr. 4: Would this save significantly your time due to unnecessary travel? 3 6. If Yes, for Nr. 4: Would this save significantly your time due to flexible individual schedule? 4 The number of people participating in the Survey was 650 from different age groups (19-60 years). Here is the breakdown of the participants per age-group: Table 3 Survey Participants’ per Age Group Age group Number per age group % per age group 19-25 225 35% 26-40 325 50% 40-60 100 15% You may look into the survey results below: Table 4 Survey Results Nr. Questions / Answers Rather Yes Yes Are you planning to take a language course 1 within the next year? 200 Do you need this for your proffesional growth / 2 opportunities? * 150 Would you select the individual language course if this would cost 2/3 from the current 3 price? * 80 Would you take a distance learning language 4 course? * 20 If Yes, for Nr. 4: Would this save significantly 5 your time due to unnecessary travel? * If Yes, for Nr. 4: Would this save significantly your time due to flexible individual 6 schedule? ** Rather No No 350 420 80 40 20 20 Rather Yes (%) 31% 24% Yes (%) 54% 67% Rather No (%) 12% 6% No (%) 3% 3% 510 570 10 35 30 5 13% 3% 81% 90% 2% 6% 5% 1% 300 236 44 10 51% 40% 7% 2% 120 400 50 20 20% 68% 8% 3% As you may see 85% of the survey participants are planning to take a language course within one year and 94% from them are ready to pay 2/3 of the price that currently is set for the individual lessons on the market. Moreover, our assumption that flexible schedule and time savings due to travel is also important to the respondents has been confirmed – 91% and 88% accordingly. The survey results above are very optimistic for our start-up, however in order to attract these people to our service we need to launch the respective advertisement campaign. Our focus for the advertisement campaign is as follows: 1 2 3 4 100% constitute the answers: ‘Rather Yes’, ‘Yes’, ‘Rather No’ 100% constitute the answers: ‘Rather Yes’, ‘Yes’, ‘Rather No’ 100% constitute the answers: ‘Rather Yes’, ‘Yes’ 100% constitute the answers: ‘Rather Yes’, ‘Yes’ Page 10 Adds within the public transportation, covering 35% of our potential customers (1625 age group) – Adds on radio/TV/Internet (social networks, e-mails), covering the 50% of our potential customers’ (26-40 years) – Post notes, cards, etc. delivered to the mail boxes, covering the rest 15% of our potential customers’ (40-60 years) We are planning to continue the advertisement of our service further in 2013 – 2015 depending on the outcome of the first advertisement phase, selecting one or two most effective advertisement channels. – 2. Financial Statements The following projected financial statements have been developed for the ‘e-Individual Language Course’ service, covering 3 years projection of business operations: Projected Financial Statements of Accounts (please refer to Figures 4 to 6 in Exhibits section, page 18 for monthly breakdown) Projected Income Statements (please refer to Figures 7 to 9 in Exhibits section, page 20 for monthly breakdown) Projected Cash flows (please refer to Figures 10 to 11 in Exhibits section, page 22 for monthly breakdown. – – The yearly summary for all the financial statements mentioned above could be found here: Table 5 Projected 3 years Income Statement Sales Electricity Utilities Internet Rent Advertisment Salaries (teachers) Salaries (managing director/ HR manager) Salary (Assistant) Salary (Accountant) Depreciation (equipment) Profit before Interset Interest (2%) Profit befor Tax Taxes (35%) Profit/Loss after Tax â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ Dec-12 (10,000. 00) (10,000. 00) (10,000. 00) (10,000. 00) â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ Dec-13 114,660. 00 (330. 0) (330. 00) (240. 00) (6,000. 00) (3,000. 00) (61,600. 00) (5,500. 00) (3,850. 00) (6,600. 00) (4,620. 00) 22,590. 00 (1,242. 00) 21,348. 00 (32,844. 00) (11,496. 00) â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â ‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ Dec-14 176,400. 00 (360. 00) (360. 00) (240. 00) (6,000. 00) (1,200. 00) (67,200. 00) (12,000. 00) (4,200. 00) (7,200. 00) (4,620. 00) 73,020. 00 (1,242. 00) 71,778. 00 (32,844. 00) 38,934. 00 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ Dec-15 176,400. 00 (360. 00) (360. 00) (240. 00) (6,000. 00) (1,200. 00) (67,200. 00) (12,000. 00) (4,200. 00) (7,200. 00) (4,620. 0) 73,020. 00 (621. 00) 72,399. 00 (32,844. 00) 39,555. 00 Page 11 Table 6 Projected 3 Years Balance Sheet Balance sheet as at 31-Dec-12 ASSETS Non-current assests Computers, Cofee-machine, etc Accumulated Depreciation (straight-even, 5 years) Language Programs Current assets Trade receivables Cash at bank and in hand Total Assets EQUITY AND LIABILITIES Equity Retained Earnings (Profit/Loss) Non-current liabilities Current Liabilities Borrowings (all bank overdraft) Trade payables Total Equity and liab ilities Table 7 Projected 3 years Cash Flow 1-Dec-13 31-Dec-14 31-Dec-15 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 23,100. 00 â‚ ¬ 6,300. 00 29,400. 00 21,800. 00 51,200. 00 (10,000. 00) â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 23,100. 00 â‚ ¬ (4,620. 00) 6,300. 00 24,780. 00 14,924. 00 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 23,100. 00 â‚ ¬ (9,240. 00) 6,300. 00 20,160. 00 33,478. 00 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 23,100. 00 (13,860. 00) 6,300. 00 15,540. 00 41,453. 00 56,993. 00 â‚ ¬ 39,704. 00 â‚ ¬ â‚ ¬ â‚ ¬ (21,496. 00) 61,200. 00 – 53,638. 00 â‚ ¬ 17,438. 00 â‚ ¬ 36,200. 00 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 56,993. 00 56,993. 00 â‚ ¬ â‚ ¬ 61,200. 00 â‚ ¬ â‚ ¬ 51,200. 00 â‚ ¬ 39,704. 00 â‚ ¬ 3,638. 00 â‚ ¬ Cash flows statement for the year ended Operating profit Depreciation costs Interest payable Cash generated from operations Interest paid Taxation paid Net cash from operation activities Cash flows from investing activities Intangible assets (additions) Net cash used in investing activities Cash flows from financing activities Re-payment of Loan notes Net cash outflow from financing activities Net decrease in cash and cash equivalents Reconciliation 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 â‚ ¬ (10,000. 0) â‚ ¬ 21,348. 00 â‚ ¬ 71,778. 00 â‚ ¬ 72,399. 00 â‚ ¬ â‚ ¬ 4,620. 00 â‚ ¬ 4,620. 00 â‚ ¬ 4,620. 00 â‚ ¬ â‚ ¬ 1,242. 00 â‚ ¬ 1,242. 00 â‚ ¬ 621. 00 â‚ ¬ (10,000. 00) â‚ ¬ 27,210. 00 â‚ ¬ 77,640. 00 â‚ ¬ 77,640. 00 â‚ ¬ â‚ ¬ (1,242. 00) â‚ ¬ (1,242. 00) â‚ ¬ (621. 00) â‚ ¬ â‚ ¬ (32,844. 00) â‚ ¬ (32,844. 00) â‚ ¬ (32,844. 00) â‚ ¬ (10,000. 00) â‚ ¬ (6,876. 00) â‚ ¬ 43,554. 00 â‚ ¬ 44,175. 00 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ ↚ ¬ â‚ ¬ (10,000. 00) â‚ ¬ (6,876. 00) â‚ ¬ 43,554. 00 â‚ ¬ 44,175. 00 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ (25,000. 00) â‚ ¬ (36,200. 00) â‚ ¬ â‚ ¬ â‚ ¬ (25,000. 00) â‚ ¬ (36,200. 00) â‚ ¬ (10,000. 00) â‚ ¬ (6,876. 00) â‚ ¬ 18,554. 00 â‚ ¬ 7,975. 0 â‚ ¬ (6,876. 00) â‚ ¬ 18,554. 00 â‚ ¬ 7,975. 00 Page 12 All the above financial statements have been calculated based on the following assumptions: The number of personal (11 people) requires at least 5 m2 of the working space according to our country’s labor law, thus the rent was calculated for 55 m 2 office space. Notebooks with headsets and respective software will be required for 10 out of 11 employees, due to the fact that the Managing Director/HR Manager will use her personal notebook during the start-up activities. The language programs’ adaptation costs will be spent and paid out during the preparation phase to the respective teachers in December’2012 The advertisement campaign will be launched in December 2012 to attract as many potential students as possible in order to fulfill our assumption for the teachers’ load for the first half of the operational year 2013 (50% respectively). – – – Considering all of the above our goal is to reach a break-even point in 2 years 10 months and to cover fully the initial investment that was assigned by the National Bank to the company within the same period of time. The Return on Invested Capital5 (http://www. accountingscholar. com/roic. html, accessed on 8-Aug-2012) for years 2014 and 2015 is 64% and 65% accordingly, what is really an impressive number for the service provider company. 2. 5 General Strategy (Development Plan) It is essential to define the major milestones for our start-up. At this major milestones we will cross check our actual Financial Statements with the forecasted ones in order to understand whether we are moving forward as planned or some adjustments are required. 5 ROCI=After Tax Net Income / Capital Invested Page 13 Figure 3 Start-up Roadmap 1 Business Plan is Ready 2 The funding is received 3 †¢ Office is available †¢ Language Programs are adapted †¢ Advertisements are designed and launched 4 †¢50% teachers’ capacity workload is reached †¢2013 H1 actuals are as forecasted 5 †¢80% teachers’ capacity workload is reached †¢2013 H2 actuals are as forecasted 6 2014 and beyond: actuals are as forecasted Milestone 1 – BP is ready: No doubts the current business plan is a prototype for one more detailed, however it gives the main idea of the opportunity, start-up and its potential development. Milestone 2 – The funding for the start-up is available. This is one of the milestones when the start-up really has a chance to grow into a business. The management team of the start-up has to use the available funds according their initial plan to reach their objectives. Of course, some adjustments could be required while moving to further milestones, but this one is a confirmation of the sustainability of your business by the investors/bank. Milestone 3 – Here we have to have a re-constructed office space according to the size we are planning to have, with all the facilities in place and working. The facilities in our case are of utmost importance, due to the fact that our ‘e-Learning Language Course’ requires very good internet connection (100 Mbs) and video transmission. The furniture and ‘office-boxes’ for our teachers have to be ready as well. In parallel, to reach Milestone 3 we have to adapt the standard ‘face-to-face’ language programs to the distant-learning programs. The last but not the least the advertisement has to be ready for launch via 3 advertisement channels mentioned in 2. 3 Market Analysis Chapter. Milestone 4 – Now we are in our first operational year. The responsibility of the managing director with the start-up accountant is to monitor closely the sales, expenses, teachers’ workload and respective financial statements. This is one of the major milestones in a way that if the expected sales are not as high as we have planned or the forecasted expenses Page 14 are higher and increase our operational losses we will have to make a weighted decision whether we have to stay on the market or close the start-up or to change our business model. Milestone 5 – Is another important milestone that is planned to be reached by the end of the first operational year of the start-up. The same rules as for Milestone 4 are applied here. Milestone 6 – Another check point for the start-up operations. We may consider our services extension and geographical expansion at this milestone in case we are proceeding according to the forecasted financial statements. As you may see from the top, our strategy is pretty simple and straightforward. We do see the opportunity for the ‘e-Learning Language Course’ service – the most difficult thing would be really to accomplish all the planned milestones one by one making the right decisions at every milestone. â€Å"Milestone reviews are pointless unless managers use them for making decisions. The decisions help planners determine what they can do to ensure success or reduce the cost of failure. † (Block and MacMillan, Milestones for Successful Venture Planning, 1998, Harvard Business Review, p. 132) 2. 6 Competitive Advantage At the moment there are no companies on the market, rendering the similar services, thus we are in a very good competitive position at the moment. However, due to the fact that this service could not be patented, we do expect that other companies from the educational branch will start to propose the same service to their customers. Hence our competitive advantage is the time and the quality – we are first on the market and we have the best teachers in our industry. Page 15 Appendix 1 – Management Team Managing Director / HR Manager Summary Major achievements during the last 5 years of my carrier in several words could be expressed as management, analysis and continuous improvement of the competence areas like Company Business Administration, Portfolio/Project Management, Company Operations and Financial Management. I possess management, business administration, leadership, analysis and communication skills developed up to high levels. Since 2006 I’ve contributed into successful project/program management practices, by means of introduction of a comprehensive estimation, planning and monitoring framework for company projects. It is worth mentioning that since 2007 more than 10 projects (up to 2m ? ) with multiple releases have been delivered to our customers successfully under my supervision and mentoring. Project Management Framework setup is another achievement I was able to accomplish. It is very important not only to detect the problems, it is much more important to make people understand that they have problems and o organize them in efficient way to resolve these. My personal Project Management experience as far as Project Management Professional [PMP] certification and participation in conferences and workshops enabled to accomplish this non trivial task. The last but not the least, I’ve put in order our Contract Management and Financial Management systems what resulted in tangible financial sa vings for the company and my current studies on General MBA program of University of Wales at Robert Kennedy College, Switzerland supported me in these endeavors. Education General MBA UoW – 2nd year in progress Master of Computer Science, Master degree in Telecommunications (Programming Languages, Math, Diploma on Characters Recognition) Bachelor of Radio electronics (Aviation, Electrical Circuits, Economics, Diploma on Transmission-Line Antennas) Social Skills Strong leadership and communication skills, experience being a mediator between management, customer representatives Page 16 Team Lead of Teachers’ Group Summary An articulate qualified English teacher who is able to effectively communicate with students from diverse backgrounds or varying degrees of ability. A committed and dedicated professional with a proven ability to teach, motivate and direct students to maximum performance by encouraging a positive and energetic environment. Teaching English Language Literature from KS3, KS4 and Entry level. Helping pupils to define and identify different types of verbs. Tailoring English teaching methods to suit the needs of individual students. Planning, preparing and delivering lessons to a range of English classes. Conducting up to 6 classes in one day. Marking work and giving appropriate feedback to pupils. Devising and writing new curriculum materials. Preparing pupils for external examinations, such as GCSE and A-level. Leading a group of different language teachers. Country State University, PhD in Modern Languages Master degree in English language and Literature Strong leadership and communication skills Able to use computer-assisted educational resources. Researching new topic areas and maintaining up-to-date subject knowledge. Able to teach vulnerable and sometimes challenging students. A committed and organized professional. Education Social Skills Page 17 Exhibits Figure 4 Calculated NPV for the start-up Dec’12 Year 2013 Year 2014 Year 2015 â‚ ¬ (61,200. 00) â‚ ¬ â‚ ¬ (11,496. 00) â‚ ¬ 38,934. 00 â‚ ¬ â‚ ¬ (72,696. 00) â‚ ¬ (33,762. 00) â‚ ¬ Year 2016 39,555. 00 â‚ ¬ 5,793. 00 â‚ ¬ Year 2017 40,176. 00 â‚ ¬ 86,145. 00 â‚ ¬ 86,145. 00 31,449. 00 Start-up investment Profit/Loss after taxes NPV 40,176. 00 â‚ ¬ 45,969. 00 â‚ ¬ Figure 5 Projected Monthly Financial Statement of Accounts for 2012/2013 Statements of Financial position Dec’12 EUR ASSETS Non-current assests Computers, Cofee-machine, etc Accumulated Depreciation (straight-even, 5 years) Language Programs Current assets Trade receivables Cash at bank and in hand Total Assets EQUITY AND LIABILITIES Equity Profit/Loss Non-current liabilities Current Liabilities Borrowings (all bank overdraft) Trade payables Total Equity and liabilities 23,100. 00 23,100. 00 (385. 00) 6,300. 00 29,015. 00 28,526. 50 28,526. 50 57,541. 0 23,100. 00 (770. 00) 6,300. 00 28,630. 00 28,143. 00 28,143. 00 56,773. 00 23,100. 00 (1,155. 00) 6,300. 00 28,245. 00 19,248. 50 19,248. 50 47,493. 50 23,100. 00 (1,540. 00) 6,300. 00 27,860. 00 18,565. 00 18,565. 00 46,425. 00 23,100. 00 (1,925. 00) 6,300. 00 27,475. 00 17,881. 50 17,881. 50 45,356. 50 23,100. 00 (2,310. 00) 6,300. 00 27,090. 00 8,987. 00 8,987. 00 36,077. 00 23,100. 00 (2,695. 00) 6,300. 00 26,705. 00 12,713 . 50 12,713. 50 39,418. 50 23,100. 00 (3,080. 00) 6,300. 00 26,320. 00 16,440. 00 16,440. 00 42,760. 00 23,100. 00 (3,465. 0) 6,300. 00 25,935. 00 11,955. 50 11,955. 50 37,890. 50 23,100. 00 (3,850. 00) 6,300. 00 25,550. 00 15,682. 00 15,682. 00 41,232. 00 23,100. 00 (4,235. 00) 6,300. 00 25,165. 00 19,408. 50 19,408. 50 44,573. 50 23,100. 00 (4,620. 00) 6,300. 00 24,780. 00 14,924. 00 14,924. 00 39,704. 00 Jan’13 Feb’13 ? m Mar’13 Apr’13 May’13 Jun’13 Jul’13 Aug’13 Sep’13 Oct’13 Nov’13 Dec’13 6,300. 00 29,400. 00 21,800. 00 21,800. 00 51,200. 00 61200 (10,000. 00) (10,000. 00) 61200 61,200. 00 61,200. 00 51,200. 00 (3,658. 50) (3,658. 50) 61,200. 00 61,200. 00 57,541. 50 (4,427. 0) (4,427. 00) (13,706. 50) (13,706. 50) (14,775. 00) (14,775. 00) (15,843. 50) (15,843. 50) (25,123. 00) (25,123. 00) (21,781. 50) (21,781. 50) (18,440. 00) (18,440. 00) (23,309. 50) (23,309. 50) (19,968. 00) (19,968. 00) ( 16,626. 50) (16,626. 50) (21,496. 00) (21,496. 00) 61,200. 00 61,200. 00 56,773. 00 61,200. 00 61,200. 00 47,493. 50 61,200. 00 61,200. 00 46,425. 00 61,200. 00 61,200. 00 45,356. 50 61,200. 00 61,200. 00 36,077. 00 61,200. 00 61,200. 00 39,418. 50 61,200. 00 61,200. 00 42,760. 00 61,200. 00 61,200. 00 37,890. 50 61,200. 00 61,200. 0 41,232. 00 61,200. 00 61,200. 00 44,573. 50 61,200. 00 61,200. 00 39,704. 00 Page 18 Figure 6 Projected Monthly Financial Statement of Accounts for 2014 Statements of Financial position Jan’14 EUR ASSETS Non-current assests Computers, Cofee-machine, etc Accumulated Depreciation (straight-even, 5 years) Language Programs Current assets Trade receivables Cash at bank and in hand Total Assets EQUITY AND LIABILITIES Equity Profit/Loss Non-current liabilities Current Liabilities Borrowings (all bank overdraft) Trade payables Total Equity and liabilities 23,100. 0 (5,005. 00) 6,300. 00 24,395. 00 21,290. 50 21,290. 50 45,685. 50 23,100. 00 (5,390. 00) 6,300. 00 24,010. 00 27,657. 00 27,657. 00 51,667. 00 23,100. 00 (5,775. 00) 6,300. 00 23,625. 00 25,812. 50 25,812. 50 49,437. 50 23,100. 00 (6,160. 00) 6,300. 00 23,240. 00 32,179. 00 32,179. 00 55,419. 00 23,100. 00 (6,545. 00) 6,300. 00 22,855. 00 38,545. 50 38,545. 50 61,400. 50 23,100. 00 (6,930. 00) 6,300. 00 22,470. 00 36,701. 00 36,701. 00 59,171. 00 23,100. 00 (7,315. 00) 6,300. 00 22,085. 00 43,067. 50 43,067. 50 65,152. 50 23,100. 00 (7,700. 0) 6,300. 00 21,700. 00 49,434. 00 49,434. 00 71,134. 00 23,100. 00 (8,085. 00) 6,300. 00 21,315. 00 47,589. 50 47,589. 50 68,904. 50 23,100. 00 (8,470. 00) 6,300. 00 20,930. 00 53,956. 00 53,956. 00 74,886. 00 23,100. 00 (8,855. 00) 6,300. 00 20,545. 00 60,322. 50 60,322. 50 80,867. 50 23,100. 00 (9,240. 00) 6,300. 00 20,160. 00 33,478. 00 33,478. 00 53,638. 00 Feb’14 Mar’14 Apr’14 May’14 Jun’14 Jul’14 Aug’14 Sep’14 Oct’14 Nov’14 Dec’14 (15,514. 50) (15,514 . 50) 61,200. 00 61,200. 00 45,685. 50 (9,533. 00) (9,533. 00) 61,200. 00 61,200. 00 51,667. 0 (11,762. 50) (11,762. 50) (5,781. 00) (5,781. 00) 200. 50 200. 50 (2,029. 00) (2,029. 00) 3,952. 50 3,952. 50 9,934. 00 9,934. 00 7,704. 50 7,704. 50 13,686. 00 13,686. 00 19,667. 50 19,667. 50 17,438. 00 17,438. 00 61,200. 00 61,200. 00 49,437. 50 61,200. 00 61,200. 00 55,419. 00 61,200. 00 61,200. 00 61,400. 50 61,200. 00 61,200. 00 59,171. 00 61,200. 00 61,200. 00 65,152. 50 61,200. 00 61,200. 00 71,134. 00 61,200. 00 61,200. 00 68,904. 50 61,200. 00 61,200. 00 74,886. 00 61,200. 00 61,200. 00 80,867. 50 36,200. 00 36,200. 00 53,638. 00 Page 19 Figure 7 Projected Monthly Financial Statement of Accounts for 2015 Statements of Financial position Jan’15 EUR ASSETS Non-current assests Computers, Cofee-machine, etc Accumulated Depreciation (straight-even, 5 years) Language Programs Current assets Trade receivables Cash at bank and in hand Total Assets EQUITY AND LIABILITIES Equity Profit/Loss Non-current liabilities Current Liabilities Borrowings (all bank overdraft) Trade payables Total Equity and liabilities 23,100. 00 (9,625. 00) 6,300. 00 19,775. 00 39,844. 50 39,844. 50 59,619. 50 23,100. 00 (10,010. 00) 6,300. 00 19,390. 00 46,211. 00 46,211. 00 65,601. 00 23,100. 0 (10,395. 00) 6,300. 00 19,005. 00 44,366. 50 44,366. 50 63,371. 50 23,100. 00 (10,780. 00) 6,300. 00 18,620. 00 50,733. 00 50,733. 00 69,353. 00 23,100. 00 (11,165. 00) 6,300. 00 18,235. 00 57,099. 50 57,099. 50 75,334. 50 23,100. 00 (11,550. 00) 6,300. 00 17,850. 00 55,255. 00 55,255. 00 73,105. 00 23,100. 00 (11,935. 00) 6,300. 00 17,465. 00 25,525. 00 25,525. 00 42,990. 00 23,100. 00 (12,320. 00) 6,300. 00 17,080. 00 31,995. 00 31,995. 00 49,075. 00 23,100. 00 (12,705. 00) 6,300. 00 16,695. 00 30,254. 00 30,254. 00 46,949. 00 23,100. 00 (13,090. 00) 6,300. 00 16,310. 00 36,724. 00 36,724. 00 53,034. 00 23,100. 00 (13,475. 0) 6,300. 00 15,925. 00 43,194. 00 43,194. 00 59,119. 00 23,100. 00 (13,860. 00) 6,300. 00 15,540. 00 41,453. 00 41,453. 00 56,993. 00 Feb’15 Mar’15 Apr’15 May’15 Jun’15 Jul’15 Aug’15 Sep’15 Oct’15 Nov’15 Dec’15 23,419. 50 23,419. 50 36,200. 00 36,200. 00 59,619. 50 29,401. 00 29,401. 00 36,200. 00 36,200. 00 65,601. 00 27,171. 50 27,171. 50 33,153. 00 33,153. 00 39,134. 50 39,134. 50 36,905. 00 36,905. 00 42,990. 00 42,990. 00 49,075. 00 49,075. 00 46,949. 00 46,949. 00 53,034. 00 53,034. 00 59,119. 00 59,119. 00 56,993. 00 56,993. 00 36,200. 00 36,200. 00 63,371. 50 36,200. 00 36,200. 00 69,353. 00 36,200. 00 36,200. 0 75,334. 50 36, 200. 00 36,200. 00 73,105. 00 42,990. 00 49,075. 00 46,949. 00 53,034. 00 59,119. 00 56,993. 00 Figure 8 Projected Monthly Income Statement for 2013 First operational year (2013) Sales Electricity Utilities Internet Rent Advertisment Salaries (teachers) Salaries (managing director/ HR manager) Salary (Assistant) Salary (Accountant) Depreciation (equipment) Profit before Interset Interest (2%) Profit befor Tax Taxes (35%) Profit/Loss after Tax Jan’13 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 7,350. 00 (20. 00) (500. 00) (385. 00) 6,445. 00 (103. 50) 6,341. 50 6,341. 50 Feb’13 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 7,350. 0 (30. 00) (30. 00) (20. 00) (500. 00) (5,600. 00) (500. 00) (350. 00) (600. 00) (385. 00) (665. 00) (103. 50) (768. 50) (768. 50) Mar’13 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â⠀š ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 7,350. 00 (30. 00) (30. 00) (20. 00) (500. 00) (300. 00) (5,600. 00) (500. 00) (350. 00) (600. 00) (385. 00) (965. 00) (103. 50) (1,068. 50) (8,211. 00) (9,279. 50) Apr’13 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 7,350. 00 (30. 00) (30. 00) (20. 00) (500. 00) (300. 00) (5,600. 00) (500. 00) (350. 00) (600. 00) (385. 00) (965. 00) (103. 50) (1,068. 50) (1,068. 50) May’13 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 7,350. 00 (30. 00) (30. 00) (20. 00) (500. 00) (300. 0) (5,600. 00) (500. 00) (350. 00) (600. 00) (385. 00) (965. 00) (103. 50) (1,068. 50) (1,068. 50) Jun’13 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 7,350. 0 0 (30. 00) (30. 00) (20. 00) (500. 00) (300. 00) (5,600. 00) (500. 00) (350. 00) (600. 00) (385. 00) (965. 00) (103. 50) (1,068. 50) (8,211. 00) (9,279. 50) Jul’13 â‚ ¬ 11,760. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (300. 00) â‚ ¬ (5,600. 00) â‚ ¬ (500. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 3,445. 00 â‚ ¬ (103. 50) â‚ ¬ 3,341. 50 â‚ ¬ â‚ ¬ 3,341. 50 Aug’13 â‚ ¬ 11,760. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (300. 00) â‚ ¬ (5,600. 00) â‚ ¬ (500. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 0) â‚ ¬ 3,445. 00 â‚ ¬ (103. 50) â‚ ¬ 3,341. 50 â‚ ¬ â‚ ¬ 3,341. 50 Sep’13 â‚ ¬ 11,760. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (300. 00) â‚ ¬ (5,600. 00) â‚ ¬ (500. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 3,445. 00 â‚ ¬ (103. 50) â‚ ¬ 3 ,341. 50 â‚ ¬ (8,211. 00) â‚ ¬ (4,869. 50) Oct’13 â‚ ¬ 11,760. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (300. 00) â‚ ¬ (5,600. 00) â‚ ¬ (500. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 3,445. 00 â‚ ¬ (103. 50) â‚ ¬ 3,341. 50 â‚ ¬ â‚ ¬ 3,341. 50 Nov’13 â‚ ¬ 11,760. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (300. 00) â‚ ¬ (5,600. 00) â‚ ¬ (500. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 3,445. 00 â‚ ¬ (103. 50) â‚ ¬ 3,341. 0 â‚ ¬ â‚ ¬ 3,341. 50 Dec’13 â‚ ¬ 11,760. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (300. 00) â‚ ¬ (5,600. 00) â‚ ¬ (500. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 3,445. 00 â‚ ¬ (103. 50) â‚ ¬ 3,341. 50 â‚ ¬ (8,211. 00) â‚ ¬ (4,869. 50) Page 20 Figure 9 Projected Monthly Income Statement for 201 4 Second operational year (2014) Sales Electricity Utilities Internet Rent Advertisment Salaries (teachers) Salaries (managing director/ HR manager) Salary (Assistant) Salary (Accountant) Depreciation (equipment) Profit before Interset Interest (2%) Profit before Tax Taxes (35%) Profit/Loss after Tax Jan’14 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 14,700. 0 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 5,981. 50 Feb’14 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 5,981. 50 Mar’14 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 (8,211. 00) (2,229. 50) Apr’14 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 14,700. 0 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 5,981. 50 May’14 Jun’14 â‚ ¬ 14,700. 00 â‚ ¬ â‚ ¬ (30. 00) â‚ ¬ â‚ ¬ (30. 00) â‚ ¬ â‚ ¬ (20. 00) â‚ ¬ â‚ ¬ (500. 00) â‚ ¬ â‚ ¬ (100. 00) â‚ ¬ â‚ ¬ (5,600. 00) â‚ ¬ â‚ ¬ (1,000. 00) â‚ ¬ â‚ ¬ (350. 00) â‚ ¬ â‚ ¬ (600. 00) â‚ ¬ â‚ ¬ (385. 00) â‚ ¬ â‚ ¬ 6,085. 00 â‚ ¬ â‚ ¬ (103. 50) â‚ ¬ â‚ ¬ 5,981. 50 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 5,981. 50 â‚ ¬ 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00 ) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 (8,211. 00) (2,229. 50) Jul’14 â‚ ¬ 14,700. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 0) â‚ ¬ (500. 00) â‚ ¬ (100. 00) â‚ ¬ (5,600. 00) â‚ ¬ (1,000. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 6,085. 00 â‚ ¬ (103. 50) â‚ ¬ 5,981. 50 â‚ ¬ â‚ ¬ 5,981. 50 Aug’14 â‚ ¬ 14,700. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (100. 00) â‚ ¬ (5,600. 00) â‚ ¬ (1,000. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 6,085. 00 â‚ ¬ (103. 50) â‚ ¬ 5,981. 50 â‚ ¬ â‚ ¬ 5,981. 50 Sep’14 â‚ ¬ 14,700. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (100. 00) â‚ ¬ (5,600. 00) â‚ ¬ (1,000. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 6,085. 00 â‚ ¬ (103. 50) â‚ ¬ 5,981. 50 â‚ ¬ (8,211. 00) â‚ ¬ (2,229. 50) Octà ¢â‚¬â„¢14 â‚ ¬ 14,700. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 0) â‚ ¬ (500. 00) â‚ ¬ (100. 00) â‚ ¬ (5,600. 00) â‚ ¬ (1,000. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 6,085. 00 â‚ ¬ (103. 50) â‚ ¬ 5,981. 50 â‚ ¬ â‚ ¬ 5,981. 50 Nov’14 â‚ ¬ 14,700. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (100. 00) â‚ ¬ (5,600. 00) â‚ ¬ (1,000. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 6,085. 00 â‚ ¬ (103. 50) â‚ ¬ 5,981. 50 â‚ ¬ â‚ ¬ 5,981. 50 Dec’14 â‚ ¬ 14,700. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (100. 00) â‚ ¬ (5,600. 00) â‚ ¬ (1,000. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 6,085. 00 â‚ ¬ (103. 50) â‚ ¬ 5,981. 50 â‚ ¬ (8,211. 00) â‚ ¬ (2,229. 50) Figure 10 Projected Monthly Income Statement for 2015 Third operational year (2015) Sales Electricity Utilities Internet Rent Advertisment Salaries (teachers) Salaries (managing director/ HR manager) Salary (Assistant) Salary (Accountant) Depreciation (equipment) Profit before Interset Interest (2%) Profit before Tax Taxes (35%) Profit/Loss after Tax Jan’15 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 5,981. 50 Feb’15 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 0) (385. 00) 6,085. 00 (103. 50) 5,981. 50 5,981. 50 Mar’15 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â ‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 (8,211. 00) (2,229. 50) Apr’15 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 5,981. 50 May’15 Jun’15 â‚ ¬ 14,700. 00 â‚ ¬ â‚ ¬ (30. 00) â‚ ¬ â‚ ¬ (30. 00) â‚ ¬ â‚ ¬ (20. 00) â‚ ¬ â‚ ¬ (500. 00) â‚ ¬ â‚ ¬ (100. 00) â‚ ¬ â‚ ¬ (5,600. 00) â‚ ¬ â‚ ¬ (1,000. 00) â‚ ¬ â‚ ¬ (350. 00) â‚ ¬ â‚ ¬ (600. 00) â‚ ¬ â‚ ¬ (385. 00) â‚ ¬ â‚ ¬ 6,085. 0 â‚ ¬ â‚ ¬ (103. 50) â‚ ¬ â‚ ¬ 5,981. 50 â‚ ¬ â‚ ¬ â‚ ¬ â‚ ¬ 5,981. 50 â‚ ¬ 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1 ,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 (8,211. 00) (2,229. 50) Jul’15 â‚ ¬ 14,700. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (100. 00) â‚ ¬ (5,600. 00) â‚ ¬ (1,000. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 6,085. 00 â‚ ¬ â‚ ¬ â‚ ¬ Aug’15 â‚ ¬ 14,700. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (100. 00) â‚ ¬ (5,600. 00) â‚ ¬ (1,000. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 6,085. 00 Sep’15 â‚ ¬ 14,700. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (100. 00) â‚ ¬ (5,600. 00) â‚ ¬ (1,000. 0) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 6,085. 00 Oct’15 â‚ ¬ 14,700. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (100. 00) â‚ ¬ (5,600. 00) â‚ ¬ (1,000. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 6,085. 00 Nov’15 â‚ ¬ 14,700. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (100. 00) â‚ ¬ (5,600. 00) â‚ ¬ (1,000. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 6,085. 00 Dec’15 â‚ ¬ 14,700. 00 â‚ ¬ (30. 00) â‚ ¬ (30. 00) â‚ ¬ (20. 00) â‚ ¬ (500. 00) â‚ ¬ (100. 00) â‚ ¬ (5,600. 00) â‚ ¬ (1,000. 00) â‚ ¬ (350. 00) â‚ ¬ (600. 00) â‚ ¬ (385. 00) â‚ ¬ 6,085. 00 6,085. 00 (8,211. 00) (2,126. 00) 6,085. 00 â‚ ¬ â‚ ¬ 6,085. 00 â‚ ¬ 6,085. 00 â‚ ¬ 6,085. 00 â‚ ¬ 6,085. 00 â‚ ¬ 6,085. 00 â‚ ¬ â‚ ¬ (8,211. 0) â‚ ¬ â‚ ¬ â‚ ¬ 6,085. 00 â‚ ¬ (2,126. 00) â‚ ¬ 6,085. 00 â‚ ¬ 6,085. 00 â‚ ¬ Page 21 Figure 11 Projected Monthly Cash Flow 2012/2013 Cash flows statements Operating profit Depreciation costs Interest payable Cash generated from operations Interest paid Taxation paid Net cash from operation acti vities Cash flows from investing activities Intangible assets (additions) Net cash used in investing activities Cash flows from financing activities Re-payment of Loan notes Net cash outflow from financing activities Net decrease in cash and cash equivalents Dec’12 Jan’13 Feb’13 Mar’13 Apr’13 May’13 Jun’13 Jul’13 Aug’13 Sep’13 Oct’13 Nov’13 Dec’13 (10,000. 0) 6,341. 50 (768. 50) (1,068. 50) (1,068. 50) (1,068. 50) (1,068. 50) 3,341. 50 3,341. 50 3,341. 50 3,341. 50 3,341. 50 3,341. 50 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 (10,000. 00) 6,830. 00 (280. 00) (580. 00) (580. 00) (580. 00) (580. 00) 3,830. 00 3,830. 00 3,830. 00 3,830. 00 3,830. 00 3,830. 00 (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) ( 103. 50) (103. 50) (103. 50) (8,211. 0) (8,211. 00) (8,211. 00) (8,211. 00) (10,000. 00) 6,726. 50 (383. 50) (8,894. 50) (683. 50) (683. 50) (8,894. 50) 3,726. 50 3,726. 50 (4,484. 50) 3,726. 50 3,726. 50 (4,484. 50) (10,000. 00) 6,726. 50 (383. 50) (8,894. 50) (683. 50) (683. 50) (8,894. 50) 3,726. 50 3,726. 50 (4,484. 50) 3,726. 50 3,726. 50 (4,484. 50) Figure 12 Projected Monthly Cash Flow 2014 Jan’14 Feb’14 Mar’14 Apr’14 May’14 Jun’14 Jul’14 Aug’14 Sep’14 Oct’14 Nov’14 Dec’14 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 385. 00 385. 0 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (8,211. 00) (8,211. 00) (8,211. 00) (8,211. 00) 6,366. 50 6,366. 50 (1,844. 50) 6,366. 50 6,366. 50 (1,844. 50) 6,366. 50 6,366. 50 (1,844. 50) 6,366. 50 6,366. 0 (1,844. 50) 6,366. 50 Operating profit Depreciation costs Interest payable Cash generated from operations Interest paid Taxation paid Net cash from operation activities Cash flows from investing activities Intangible assets (additions) Net cash used in investing activities Cash flows from financing activities Re-payment of Loan notes Net cash outflow from financing activities Net decrease in cash and cash equivalents 6,366. 50 (1,844. 50) 6,366. 50 6,366. 50 (1,844. 50) 6,366. 50 6,366. 50 (1,844. 50) 6,366. 50 6,366. 50 (25,000. 00) (25,000. 00) (26,844. 50) Page 22 Figure 13 Projected Monthly Cash Flow 2015 Jan’15 Feb’15 Mar’15 Apr’15 May’15 Jun’15 Jul’15 Aug’15 Sep’15 Oct’15 Nov’15 Dec’15 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 6,085. 00 6,085. 00 6,085. 00 6,085. 00 6,085. 00 6,085. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (8,211. 00) (8,211. 0) (8,211. 00) (8,211. 00) 6,366. 50 6,366. 50 (1,844. 50) 6,366. 50 6,366. 50 (1,844. 50) 6,470. 00 6,470. 00 (1,741. 00) 6,470. 00 6,470. 00 (1,741. 00) 6,366. 50 Operating profit Depreciation costs Interest payable Cash generated from operations Interest paid Taxation paid Net cash from operation activities Cash flows from investing activities Intangible assets (additions) Net cash used in investing activities Cash flows from financing activities Re-payment of Loan notes Net cash outflow from financing activities Net decrease in cash and cash equivalents 6,366. 50 (1,844. 50) How to cite Elearning Business Plan, Essay examples

Distribution Channels of Abu Dhabi National Insurance Company

Question: Discuss about theDistribution Channels of Abu Dhabi National Insurance Company. Answer: Introduction: The assignment concentrates on providing a brief context of Abu Dhabi National Insurance Company (ADNIC) in terms of its products and services. The focus of this assignment is to provide critical evaluation of the existing channels of distribution of the organisation and its contribution towards increasing the revenue margin. Along with this, the effectiveness of the current distribution channels of the organisation has been critically evaluated to find out the growth in the UAE insurance industry. Finally, the assignment sheds light on developing suitable recommendations to improve the existing channels of distribution and explore new ones for generating new customers into the organisation. Brief Context of Abu Dhabi National Insurance Company: ADNIC have trusted itself as an insurance partner with the expertise in providing various types of insurance and service products related to specific fields of areas of providing both individual and corporate support. The company aims to provide a specialized service in order to manage unpredictable health conditions, general risks and life risks. The company mainly leads in proving a multiline solution with its branch spread across 400 insurance professionals. The company has varied range of individual as well as corporate insurance products. The individual products include home insurance, wedding insurance, personal accident insurance, motor insurance, medical insurance and travel insurance. Some of the corporate insurance products of the company includes aviation insurance, liabilities insurance, group medical insurance, motor fleet insurance, financial lines insurance, energy sector insurance and various types o the insurance products given in the marine cargo and engineering pro ducts. The services of the company mainly include claims services (both for individual claims services and corporate claims of the services), risk engineering, mobile application support, assisting of America, MSH international, IGP partnership. It has been also observed that the company is transparent in providing the latest circulars with a clear intention of maintaining the highest amount of the services and transparency for the changes occurring on real time basis. The latest circular of the company is easily available in the websites of the company. The insurance company further aims provide leading underwriting solutions all over Middle East and North Africa (Adnic.ae 2016). Current Distribution Channels of Abu Dhabi National Insurance Company: ADNIC, have several distribution channels which mainly includes distribution of the previously insurance products via Banc assurance, Reinsurance and affinity programs. The company has taken several types of the partnership programs done with the help of leading partnership program, in the leading banks based in UAE, which are operating since 2010. The banc assurance program of the company aims to provide a tailor made services related to the commercial insurance products, health insurance products and the various types of the insurance services provided in the protection of the commercial health insurance solution. At present, the bank seen to o a tie up with National Bank of Abu Dhabi and this types of the distribution service is also seen with distribution of the insurance services via online portal (Adnic.ae 2016). The different types of distribution diversification of the company are further seen with the service provided to both the individuals and the corporate customers, and thereby meeting the necessary needs of the individual customers (Olsson, Gadde, and Hulthn 2013). The customized services provided by ADNIC aims to provide distribution via banc assurance in the fields such as: Credit insurance products Products related Motor vehicle Insurance Different of the products related to the home rentals and the insurance for the home owners insurance The company also aims to provide a varied range of the service in the critical illness products and the travel insurance products The second most important distribution channel of the company is seen with the distribution of the services in the various types of the affinity program offered by the company. The affinity programs are aimed provide the required amount of the benefit in the selected communities which are seen to operate in the varied range of professional societies, sports leisure groups, expat communities, business councils and the varied range of the employees operating in the corporate society (Wang 2016). ADNIC further offer various typed of the service related to the distribution of the insurance products with wide range of the corporate and the consumer products. The product of the company further shows the customization of the products in order to meet the needs and the requirement of customers and include the combination of the different types of the preferential terms. The affinity program shows the different types of the value added service, which are being distributed among the consumers which is seen to enhance the satisfaction among the members of the company. The affinity program is further seen to include the offer the required set of the essential services of the organization and the inclusion of the combination of the both preferential and the value added services in the specified set of service of the company (Sharma, Kolath and Sharma 2016). The different types of the secondary distribution channels of the company are seen with distribution of the products through direct marketing, online internet portals and insurance brokers. The company has taken several initiatives to communicate directly with the different types of the customers of the company. The company has maintained the new developments through the methods of research and the buying of the different types of the marketing products in the channel of directing marketing. The various types of the initiatives in the online portal distribution are seen with the transaction of the insurance services and the banc assurance products of the company found in the respective online portal of the company. For instance, ADNIC has maintained the online portal of National Bank of Abu Dhabi for the distribution of the banc assurance services of the company (Soleimani, Meshkani and Naami 2013). The company is further seen to take the different types of the developments seen in the mobile application and web portal development for providing the varied range of the insurance service both to the consumers are well as the corporate. It has been further observed that the insurance brokers has taken significant amount initiatives for viewing and the comparing of the policy details, making the necessary changes in the policies of the company, assisting in the payment of the premium of the insurance products (Vyas 2016). The main activities of the distributional services carried out by the brokers are related to interacting communicating and transacting the varied range of the available insurance service and products of ADNIC. It has been further seen that the company has taken the necessary initiative for social distribution in platforms such as Facebook and Twitter. The company offers the distribution of the several types of the products via the live chat support available in Facebook (Watkins and Diacon 2016). Effectiveness of the Current Distribution Channels of the Company in Marketing its Products and Services: The different distribution channels of ADNIC identified above and their effectiveness are briefly demonstrated as follows: Bancassurance: As commented by Genetay and Molyneux (2016), bancassurance is the association or partnership between a bank and an insurance firm, in which the latter utilises the sales channel of the former for selling its insurance products and services. In this context, ADNIC has established a partnership with the Abu Dhabi National Bank in 2010 for marketing its products and services. It has been observed that the organisation provides a series of protection, commercial and health solutions to corporate as well as individual customers. The major services promoted through bancassurance include credit life insurance, travel insurance, critical illness insurance, motor insurance and home renters and home owners insurance. With the help of this channel of distribution, ADNIC has been able to extend its customer base through reaching the customers in rural areas, which have difficult before. In addition, the company has managed to reduce the excessive reliance on a single network through bancassurance. However, Christopher, Payne and Ballantyne (2013) argued that the insurance organisation could use the details related to the customer identity for marketing its products, which could result in data insecurity. It has been assessed that National Abu Dhabi Bank holds a positive and strong image in the UAE market and involving in partnership with the same has enabled ADNIC to reduce its business risk through diversification. In this context, Gonulal, Goulder and Lester (2012), remarked that the insurance organisations benefit from the corporate image and reliability, in which people are likely to attribute to the banks. In addition, ADNIC has been able to diminish its cost of distribution in opposition to the conventional sales representatives. This is because the network of sales is identical for both banking and insurance solutions. Affinity Programs: In the words of Gadde (2014), the affinity programs are comprised of partnerships between two or more firms by accumulating persons having identical interest. This is mainly practiced to increase the consumer base of the opposite party. ADNIC has developed affinity program as a major distribution channel to offer advantages to the different communities of UAE. These communities include business councils, expat communities, professional societies and the staffs of the business partners. The voluntary insurance of ADNIC provides diverse range of consumer as well as corporate products to maximise the satisfaction level of the staffs, customers, members and the businesses. In this regard, Hsu, Lin and Shao (2014) advocated that increase in satisfaction level of the stakeholders helps an organisation to develop positive brand image and enhanced customer loyalty. The affinity programs offered on the part of ADNIC could be customised to suit the organisational requirements. The customisations include a mix of preferential terms and value-added characteristics on the sets of products. Under this distribution channel, ADNIC sells its products and services at cheaper prices, since the expenditures in marketing research could be minimised. Thus, with the help of affinity programs, the organisation could gain from the increase in customers in fidelity (Kiragu 2014). Hence, by entering into partnership with the professional communities, ADNIC has strengthened its reputation. Along with this, ADNIC could be able to identify the target audience of its business by accessing the information of the affinity partners for undertaking research programs. Furthermore, the affinity groups seeking help from ADNIC would be able to prevent and enhance goodwill by avoiding any risk and cost associated with direct merchandising of the product or service. Finally, with the help of affinity programs, ADNIC provides maximum value to the end consumers. However, Kumar and Srivastava (2013) argued that the advantages to the consumers rely on the nature of the affinity partner and the services sold. In addition, ADNIC is engaged in providing discounts to the customers like Multi Motor Policies Discount of 5%. Thus, it could be inferred that ADNIC has been able to accomplish its business strategy largely by initiating Affinity Programs in marketing its products and services. Social Media Insurance: As commented by Mols (2013), knowing the target audience is the key to success forb any industry, which necessitates the development of distribution channels. In order to ensure such success, the role of social media in insurance industry is immense. ADNIC has created a special page in Facebook to provide information and promote its services to the customers. With the help of this social media tool, ADNIC has been able to identify the target audience by tracking their age groups and gender. Hence, the company has gathered knowledge about the potential customers to plan for marketing campaigns and product offers to earn higher return on investment. It has been observed that ADNIC uses geo-targeting to deliver messages to the customers or demographic depending on the location. For instance, the organisation has marketed its products and services through Hootsuite for targeting the audience by age, gender and location. In addition, the organisation has been able to revise its marketing strategies based on the feedback received from the customers. Furthermore, ADNIC has adopted learning method for obtaining the perspectives of the customers regarding their product usage and ideas. Social media insurance helps an organisation to enhance the market intelligence and enjoy competitive advantage (Olsson, Gadde and Hulthn 2013). It has been found that the market capitalisation of ADNIC is 918.75 million AED, a part of which has been generated through its distribution channel of social media. Thus, ADNIC has formed strategic business decisions for maintaining competitive advantage in the market. For instance, the organisation has formed search streams in Hoot suite to monitor the new launch of the products and services of the competitors. Thus, ADNIC has introduced VIP level benefits and services to its customers by designing a platinum insurance policy to stay ahead of its competitors in the UAE market. Direct Marketing: As stated by Sharma, Kolath and Sharma (2016), the direct marketing could be defined as selling products to the customers directly by using different sales media. IN order to apply the direct marketing strategy, ADNIC has employed sales representatives to accumulate customer information. The accumulated data are then stored in the database of the organisation to reach the target audience. ADNIC applies direct mail and telemarketing as the direct marketing strategy to generate customers. The direct mail sent to the customers could be personalised to suit the customer requirements (Brophy 2013). In addition, the direct mail helps in saving additional cost in contacting the customers. Moreover, ADNIC also uses telemarketing strategy to interact with the customers. This task is mainly handled on the part of the marketing executives of ADNIC, in which the persons aim to address the customer issues and queries for convincing the customers. Since, the response rates are lower in direct mail, telemarketing has been chosen as another direct marketing strategy to reach the customers (Eling and Kiesenbauer 2014). The organisation has also been involved in keeping regular touch with the policyholders to find out if its coverage suits the needs of the latter. This has been done through cross selling to the portfolio and integration of value services. In addition, ADNIC contacts the policyholders, who want to lapse by convincing them to keep the policy over phone. Lowering the premiums on insurance policies is another marketing strategy to attract the customers. Hence, the direct marketing strategy of ADNIC is highly effective in nature owing to the methods deployed. Online Internet Portals: The online portal is another tool to link with the suppliers and buyers all over the world to generate new business partners and increase the sales revenue every year (Soleimani, Meshkani and Naami 2013). With the application of online portal in the organisation, ADNIC has been able to receive full access to the contacts of the buyer coupled with characteristics of online trading. Hence, by implementing the online business portal, the organisation has been able to save additional sum of money each year to penetrate deeper into the target market. Moreover ADNIC has been able to automate its sales process by configuring alerts related to certain keywords and triggers to provide notifications to the customers. In this regard, Vyas (2016) cited that the online portals enable the organisations to obtain notifications about the activities of the other businesses. The online portal of ADNIC has provided the organisation with an added advantage to examine the products and services of the rivals in detail. Along with this, ADNIC has used this online portal as a gateway to add innovation in the current products by studying the competitors products in detail. Therefore, the organisation has not applied additional resources to gain competitive edge in the UAE insurance industry due to the use of this powerful channel of distribution in expanding its network. Insurance Brokers: Insurance brokers are those persons that sell or negotiate insurance for compensation on behalf of the organisations (Wang 2016). ADNIC has appointed special insurance brokers to identify insurance cover for the organisation. These persons play major roles in generating strong relationships between ADNIC and its customers. In addition, the organisation often utilises its insurance brokers to schedule and attend meetings with the customers along with collecting the insurance premiums. In addition, the insurance brokers of ADNIC contribute to identifying the type of business risks faced. These risks include the natural hazards like weather conditions, fire and floods. Based on the information provided, the organisation selects its coverage area in the UAE market for distributing its products and services. However, the insurance brokers need to be utilised more, as direct interaction with the customers would help in increasing the revenue margin of the organisation. Recommendations to Improve Existing Distribution Channels or Explore New Channels for Achieving the Business Objectives: The advent of online banking and money transfers provides larger opportunities for ADNIC to streamline the payment pertaining to insurance premium. However, in terms of social media presence the company lags behind other corporate houses. The introduction of a Smartphone application can result in improving the level of engagement to its current and prospective consumers. A Smartphone application can convey the introduction of new insurance products by ADNIC; moreover, any changes in amount of premium can be communicated by a notification in the application. Moreover, the company needs to install separate set of analytics team in order benefit from different degrees of development in Big Data analytics to ascertain the insurance requirements of different sectors in the economies that ADNIC operates in. For instance, ADNIC can benefit from data analysis on road accidents to identify which regions are more prone to accident. Moreover, the company can also synthesize information regarding the income levels of certain region. Thereby, through targeting specific segments and geographical regions, the insurance company in turn can benefit from such customized form of marketing. A large proportion of health insurance arises from the migrant workers employed workers deployed in UAE through work permit visa. ADNIC can capitalize upon the large influx of workers through associating itself with the different employment contractors and thereby accepting employment insurance in bulk lots at a time. Moreover, the company can reduce overall degree of brokerage through higher level of accessibility to its end consumers by tying up with different sets of service providers in order to connect with the consumers. The company inadequately utilizes the insurance agents; thereby, the company requires in troducing more performance based incentives for such the brokers in order to engage them further. Thus, following these series of recommendations would help the organization to increase its market reach and generate additional customers in future. Conclusion: Based on the above discussion, it has been found that ADNIC has developed itself as an insurance partner having relevant expertise in various types of insurance and service products related to specific fields of areas of providing both individual and corporate support. The organisation uses different channels of distribution to increase its customer base and revenue generation. The major channels of distribution identified for ADNIC comprise of bancassurance, affinity programs, direct marketing, social insurance, insurance brokers and online internet portals. These channels of distribution have been found to be highly effective; however, the insurance brokers need to be utilised properly for generating maximum revenues. Additionally, it has been found that the organisation uses the online portals to accumulate customer information at lower cost and with minimum resources. Accordingly, the recommendations have been provided to the organisation to improve its channels of distribution further. References: Adnic.ae. (2016).ADNIC. [online] Available at: https://www.adnic.ae/en/products/bancassurance [Accessed 25 Oct. 2016]. Adnic.ae. (2016).ADNIC. [online] Available at: https://www.adnic.ae/en/about-us/about-adnic/ [Accessed 25 Oct. 2016]. Brophy, R., 2013. Bancassurance: An insurance concept from a Irish perspective.Journal of Financial Regulation and Compliance,21(4), pp.319-333. Christopher, M., Payne, A. and Ballantyne, D., 2013.Relationship marketing. Taylor Francis. Eling, M. and Kiesenbauer, D., 2014. What policy features determine life insurance lapse? An analysis of the German market.Journal of Risk and Insurance,81(2), pp.241-269. Gadde, L.E., 2014. Distribution network dynamics and the consequences for intermediaries.Industrial Marketing Management,43(4), pp.622-629. Genetay, N. and Molyneux, P., 2016.Bancassurance. Springer. Gonulal, S.O., Goulder, N. and Lester, R.R., 2012. Bancassurance--a valuable tool for developing insurance in emerging markets.World Bank Policy Research Working Paper, (6196). Hsu, W.Y., Lin, T.Y. and Shao, S.S., 2014. Distribtion systems and the quality of business: an empirical test on individual health insurance.Academia Economic Papers,42(2), p.197. Kiragu, S.M., 2014. Assessment of challenges facing insurance companies in building competitive advantage in Kenya: A survey of insurance firms. International journal of social sciences and entrepreneurship,1(11), pp.467-490. Kumar, R.K. and Srivastava, M., 2013. The antecedents of customer loyalty: An empirical investigation in life insurance context.Journal of Competitiveness,5(2). Mols, N.P., 2013. The Internet and the banks strategic distribution channel decisions.International Journal of Bank Marketing. Olsson, R., Gadde, L.E. and Hulthn, K., 2013. The changing role of middlemenStrategic responses to distribution dynamics.Industrial Marketing Management,42(7), pp.1131-1140. Sharma, K., Kolath, T.R. and Sharma, M.G., 2016. Group Mediclaim: A Product for Health Insurance.Available at SSRN 2796432. Soleimani, F., Meshkani, F. and Naami, A., 2013. An exploration study to detect important factors influencing insurance firms.Management Science Letters,3(11), pp.2691-2698. Vyas, M.M., 2016. A Study of Recent Trends in Insurance Industry.Indian Journal of Applied Research,5(9). Wang, H.C., 2016. E-commerce and Distribution of Insurance Products: A Few Suggestions for an Appropriate Regulatory Infrastructure. InThe" Dematerialized" Insurance(pp. 39-58). Springer International Publishing. Watkins, T. and Diacon, S., 2016. 13 Marketing Insurance.A Guide to Insurance Management, p.208.