Description
A finishing school (or charm school) is a school for young women that focuses on teaching social skills and cultural norms as a preparation for entry into adult society.
Name of the Institute Location
NUMERO UNO 4th Floor Swapnil Complex, Commerce six roads, Navrangpura, Ahmedabad – 380 009
Nature of Industry Date of Incorporation Cost of Project Means of Finance
Education 1st April, 2010 Rs.12,50,000 Rs.12,50,000 [To be equally contributed by the 10 partners]
Payback Period Average Rate of Return Internal Rate of Return
1.23 years 57% 87.54%
We have been assigned the Project on Finishing School wherein we have mainly focused on three groups as our target segments: 1. Students 2. Corporate executives 3. Housewives In the context of Gujarat, we think the scope for the growth of our business is high due to following reasons:
1. It is considered that the level of English in Gujarat is comparatively low due to influence of vernacular language specially Gujarati. The result of our market survey also reflects the same scenario that the majority of the respondents prefer to join the finishing school to get fluency in English. This aspect can be taken as important opportunity for our business. 2. Due to increasing professionalization of corporate enterprises, demand for well groomed professionals is increasing .To survive in such competitive scenario people are moving to such institutes which help them in grooming their personality and also in bringing best in them by giving their personality a complete touch. 3. In Gujarat the competition level in this field being low there is a high growth opportunity available for us. 4. We will survive and expand our business by providing best qualitative services to our customers and by maximizing their satisfaction.
? Our Finishing School, Numero Uno will constantly update its market knowledge so as to cater to the changing aspirations of our customers by providing such services as would become the paradigm of excellence for others in the same industry. ? In future we would like to expand our business by opening more branches of our school at various locations. And we are also thinking of having tie-ups with corporate.
A feasibility study looks at the viability of an idea with an emphasis on identifying potential problems and attempts to answer one main question: Will the idea work and should you proceed with it? Before you begin writing your business plan you need to identify how, where, and to whom you intend to sell a service or product. You also need to assess your competition and figure out how much money you need to start your business and keep it running until it is established. Feasibility studies address things like where and how the business will operate. They provide in-depth details about the business to determine if and how it can succeed, and serve as a valuable tool for developing a winning business plan.
WHY ARE FEASIBILITY STUDIES SO IMPORTANT?
The information you gather and present in your feasibility study will help you: ? List in detail all the things you need to make the business work; ? Identify logistical and other business-related problems and solutions; ? Develop marketing strategies to convince a bank or investor that your business is worth considering as an investment; and ? Serve as a solid foundation for developing your business plan. Even if you have a great business idea you still have to find a cost-effective way to market and sell your products and services. This is especially important for store-front retail businesses where location could make or break your business. For example, most commercial space leases place restrictions on businesses that can have a dramatic impact on income. A lease may limit business hours/days, parking spaces, restrict the product or service you can offer, and in some cases, even limit the number of customers a business can receive each day.
COMPONENTS OF FEASIBILITY STUDY
? ? ? ? ?
LEGAL FEASIBILITY TECHNICAL FEASIBILITY HUMAN RESOURCE FEASIBILITY MARKET FEASIBILITY FINANCIAL FEASIBILITY
LEGAL FEASIBILITY
To define the legal and corporate structure of the business. A Legal Feasibility Study may also include professional background information about the founders and principals of the business and what skills they can contribute to the business. Legal feasibility study should include:
? ? ?
Description of Your Business Structure Description of Your Organizational Structure Internal and External Principles and Practices of the Business
TECHNICAL FEASIBILITY
The Technical Feasibility Study assesses the details of how you will deliver a product or service (i.e., materials, labour, transportation, where your business will be located, technology needed, etc.). Think of the technical feasibility study as the logistical or tactical plan of how your business will produce, store, deliver, and track its products or services. A technical feasibility study is an excellent tool for trouble-shooting and long-term planning. In some regards it serves as a flow chart of how your products and services evolve and move through your business to physically reach your market.
HUMAN RESOURCE FEASIBILITY
It deals with the recruitment and selection of the proper kind of personnel in the various departments and also coming up with the ways of training, developing and retaining them by provision of various incentives and perks relevant to their needs and requirements.
MARKETING FEASIBILITY
All feasibility studies should look at how things work, if they will work, and identify potential problems. Feasibility studies are done on ideas, campaigns, products, processes, and entire businesses. Feasibility studies assess something and consider both pros and cons. They analyze potential business scenarios. A Marketing Plan maps out specific ideas, strategies, and campaigns based on feasibility study investigations that are intended to be implemented. Think of market feasibility studies as a logistical study and a marketing plan as a specific, planned course of action to take. What should be Included in a Market Feasibility Study? Things to Include in a market feasibility study include:
? ? ? ? ? ?
Description of the Industry Current Market Analysis Competition Anticipated Future Market Potential Potential Buyers and Sources of Revenues Sales Projections
FINANCIAL FEASIBILITY
A financial feasibility study projects how much start-up capital is needed, sources of capital, returns on investment, and other financial considerations. It looks at how much cash is needed, where it will come from, and how it will be spent. A financial feasibility study is an assessment of the financial aspects of something. If this case, for starting and running a business. It considers many things including start-up capital, expenses, revenues, and investor income and disbursements. Other portions of a complete feasibility study will also contribute data to your basic financial study. A financial feasibility study can focus on one particular project or area, or on a group of projects (such as advertising campaigns).
A service is any act or benefit that one party can offer to another that is essentially intangible and does not result into ownership of anything.
No
1
Characteristics
Intangibility
Marketing Implications
? No storage ? No ready display ? Communication problem ? Pricing difficulties
Strategies
? Tangible clues like documentation ? Personal sources ? Word of Mouth ? Organizational image ? Post purchase communication ? Selection & training contact person ? Manage consumers ? Multi-site location ? ? ? ? ? Service blue-print Training Internal External Customer satisfaction survey ? Staff monitoring ? Complementary service ? Reservation system ? Part time employees during peak time ? Future expansion ? Complementary services of
2
Inseparability
? Consumer Involvement in production ? Personal Selling ? Demand-Supply Match ? Difficulty in standardization ? Difficulty in Quality control
3
Variability
4
Perishability
? No inventorisation
A Finishing School: Defined
A finishing school is the final polish to your education to make you an all-rounder with a good personality, grooming, excellent personal etiquette and dress sense. A well groomed person with a pleasant personality stands out in a crowd and has a higher chance of ready acceptance in any setting - be it the job market, family environment or peer group.
Need for a Finishing School
None of us can truthfully say that we are perfect and have nothing more to learn. Life is a school with live experiences. At our finishing school we give you the accumulated wisdom of our faculty to help you move up in your life. There are two ways to learn one by making mistakes and the other by learning before you make the mistakes. We believe that we can make a difference in your life by helping you move upward towards your goals and ambitions.
Grooming in a Finishing School
You learn the art of conversation, the quietly elegant as well as the flamboyant style of dress and grooming, the art of conversation, managing to live within your income, tips on saving and investment, handling aggressive behaviour with calm and poise and to manage your time effectively. This is only an outline of things and each specific need has a programme to handle it.
The ways of learning in a Finishing School
Our programmes are FUN and learning has never been so easy. Practical learning always makes for more effective retention and we follow this approach in all areas of our programmes. Studies about learning methodology reveal that kinesthetic, visual and auditory learning has a better appeal and makes for better understanding. Our course modules are developed keeping these principles in mind.
Age no bar for a Finishing School student
A person can enrol in our finishing school at any age between 7 and 70. We believe that there are no barriers to learning. Our primary programmes are aimed at the segment seeking employment immediately or in the near future. These short-term courses help you enhance your basic knowledge and skill and give you additional inputs to make you stand out in the crowd. Programmes for children, teenagers, parents, brides and grooms and the retired person are also available in our finishing school.
Switzerland is known for its private finishing schools, such as Institut Villa Pierrefeu or Institut Alpin Videmanette (now closed), where Diana, Princess of Wales studied, and Mon Fertile, where Camilla, Duchess of Cornwall was partly educated. The finishing school that made Switzerland renowned for such institutions was the Institut Villa Mont Choisi, founded in the 1870s, which closed in 1995/6. Other notable schools included Institut Chateau Beau-Cedre which closed in 2002. The term finishing school is occasionally used in American parlance to refer to certain small women's colleges, primarily on the East Coast, that were known for serving to prepare their female students for marriage. Since the 1960s, many of these schools have become defunct as a result of financial difficulties stemming from parents' decreased interest in paying for such an education for their daughters.
Finishing School is a supplementary training school popular in India that attempts to make-up for deficiencies of low-tier colleges by providing specialized vocational training in technical fields such as computer programming and information technology. The recent boom in the Indian Economy has further enhanced the need for such finishing schools. These IT finishing schools cover technical skills as well as communication and problem solving skills. The biggest advantage of these finishing schools is that these schools cut down the "deployable time" for a company. Other finishing schools attempt to make up for deficiencies in the Indian secondary education system with regards to math and science education and bring the student up to the level necessary for attending university and gaining admission. For instance, it is not uncommon for Indian students to spend an entire 1 to 2 years studying in a tutorial cram school after secondary education to gain entrance into a top Medical or Engineering school. Western Countries are often flooded by extremely over-prepared and well networked Indian students, to the point of putting their own students at a disadvantage to their own rule and merit based college entrance and scholarship award systems where cram schools are virtually unknown, particular in Engineering and Medicine, areas which the Indian cram school focus on.
WELL KNOWN FINISHING SCHOOLS IN INDIA
? ? ? ? ? ? ? ? ? PRIYA WARRICK FINISHING SCHOOL, NEW DELHI WALCHAND DALE CARNEGIE FINISHING SCHOOL, BANGALORE GOOD SHEPHERD FINISHING SCHOOL, OOTY ECOLE SOLITAIRE, PUNE MODERN DAY FINISHING SCHOOL, MUMBAI SWISS PERSONA FINISHING SCHOOL, NEW DELHI ANOORADHA PATEL’S FI NISHING SCHOOL, MUMBAI RIGHT STEP FINISHING SCHOOL, CHENNAI MAKEOVER FINISHING SCHOOL, AHMEDABAD
A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors:
? ? ? ?
Political Economic Social Technological
The acronym PEST (or sometimes rearranged as "STEP") is used to describe a framework for the analysis of these macro environmental factors. A PEST analysis fits into an overall environmental scan as shown in the following diagram:
Environmental Scan / External Analysis / Macro environment | P.E.S.T. \ Micro environment \ Internal Analysis
Political Factors
Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include:
? ? ? ? ?
Tax policy Employment laws Environmental regulations Trade restrictions and tariffs Political stability
Our concept of finishing school does not require an in depth analysis of political environment as there are not any specific laws which restrict the entry or growth of this sector. We can say that the political conditions are not a deterrent enormous enough to consider deeply.
Economic Factors
Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macro economy:
? ? ? ?
Economic Growth Interest Rates Exchange Rates Inflation Rate
These are important criteria which are to be considered relevant. The most important one is the inflation rate which if blown up considerably might make the demand for this sector somewhat hazy making people curb this expenditure considerably. Even the interest rates would not be much above the teaser rate if we consider expansion through loans in the next 2-3 years. Projected Growth rate of 8-9% would boost the service sector economy amiably as a whole.
Social Factors
Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets. Some social factors include:
? ? ? ?
Health Consciousness Population Growth Rate Age Distribution Career Attitudes
?
Emphasis on Safety
Considering the dynamic young population of Ahmedabad which aspires to reach new heights in their career find that nothing stops them from achieving success
Technological Factors
Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:
? ? ? ?
R&D Activity Automation Technology Incentives Rate of Technological Change
We have tried to cater to the technological demand of the customers by including computer courses. Being a part of Generation Y we need to be technological savy.
External Opportunities and Threats
The PEST factors combined with external micro environmental factors can be classified as opportunities and threats in a SWOT analysis.
DATE & TIME:
This agreement of partnership deed executed on 1st April, 2010.
Name & Address of Partners NAME
Priyanka Yadav
ADDRESS
44, Swaraj society, Stadium Road, Motera, Sabarmati, Ahmedabad-5 G-1, Shaligram Flats, Nehrupark, Vastrapur, Ahmedabad. 1054, Jivan Pole, Panchpatti, Kalupur, Ahmedabad -1. 1639/2, Lal pole, Dariyapur, Ahmedabad-1. 1871, Dhantura pole, Dariyapur, Ahmedabad-1 11, Theosophical Society, Vijay Cross Roads, Navrangpura, Ahmedabad – 9. 7, Shiv Society, Naranpura, Ahmedabad. 15, Sanjay Society, Part -1, Shahibaug Road, Ahmedabad – 4. At:Kavitha, Ahmedabad. Taluka:Bavla, District
Saumya Iyer
Aakib Laliwala
Yogesh Padhiyar Krupesh Soni
Bhumi Prajapati
Ami Kothari Ankit Sharma Kuldeep Rathod Pradip Chaudhari
4, Rupnagar Society, Vijay Cross Roads, Navrangpura, Ahmedabad – 9.
Preamble
We, the above partners have come together to carry on the business of finishing school as from 1st April, 2010 and the terms and conditions of the partnership agreed upon are hereby in writing.
A] NAME
The business of the firm will be carried on under the name “Numero Uno”. However the partners shall be entitled to change the name of the firm as agreed upon.
B] BUSINESS OF PARTNERSHIP
The business of the firm will be to provide training that results into development & grooming of one’s overall personality and makes him marketable in this cut -throat competitive market.
C] DATE OF COMMENCEMENT
The date of commencement of partnership is 1st April,2010.
D] PLACE OF BUSINESS
The principal place of the business of the firm will be at Address:-2nd Floor, Swapnil Complex, Commerce six roads, Navrangpura, Ahmedabad-09 but the partners will have liberty to shift it to any other place or places and to open branch or branches at any other place or places as may be agreed upon.
E] DURATION
It is not fixed. It is the form of “Partnership at Will”.
F] CAPITAL
The initial capital of the firm will be Rs.12,50,000 equally contributed by all 10 partners.
G] DRAWINGS
Drawings can be made by the partners as many times as he wish in the year taking into account the respective accounts.
H] INTEREST
We will be giving the interest of 5% on capital and we will be charging the interest of 6% on drawings.
I] SHARE IN PROFIT OR LOSS
Profit or loss of the firm will be shared equally among all the partners.
J] BORROWINGS POWER
The firm shall be entitled to secure deposits, borrow money & seek loans from any banks and corporate & non-corporate bodies and financial institutions. Firm can also take loan from the partners.
K] ACCOUNTS
The books of accounts of the firm will be closed once in a year preferably from April 1 to March 31.
L] BANK ACCOUNTS
That the bank account of the firm will be maintained in SBI, Navrangpura branch in the name of the firm which 2 of the working partners would be entitled to handle as agreed by all the partners. They shall be authorized to avail all type of facilities in the name of the firm that are generally allocated by the banks. They are authorized to appoint any person to operate bank accounts of the firm by way of Power of Attorney.
M] DISSOLUTION
Death and disability or retirement of any partner(s) will not result into dissolution of the partnership; the remaining partners will be entitled to carry on the partnership with or without taking the nominee(s) of the deceased or disabled partner(s).
N] DEATH OR DISABILITTY
In case of death or disability of any partner(s), the nominee(s) of such partner shall be taken into the partnership. The partners are free to change the aforesaid nominee(s) from time to time by notifying the same to other partner.
P] MODIFICATIONS
The partners will be entitled to modify above specified terms of the partnership related to interest, remuneration etc by executing the supplementary partnership deed and the modified deed will be applicable from the first day of the accounting year in which it is executed.
Q] RIGHTS & DUTIES OF THE PARTNERS RIGHTS OF THE PARTNERS
*Each & every partner has a right to take part in day to day activities of firm *Each & every partner has a right to inspect books of account of the firm *Each and every partner has a right to express his opinion.
DUTIES OF THE PARTNERS
*Each and every partner is liable to deal honestly in the business of the firm *Each and every partner is liable to work hard & with dedication to achieve the common goal of the firm *Each and every partner is liable to make sure that assets of the firm will be protected & will be used in productive manner. *Each and every partner is liable to indemnify the firm in case any loss occurs to the firm due to his misconduct. *No partner is allowed to transfer hie interest in the firm without the common consent of other partners.
*Each and every partner has a right to have share in the profit of the firm *Each and every partner has a right to receive interest on the loan and capital contribution made to the firm. *Each and every partner has a right to be indemnified by the firm
R] ARBITRATION
That any dispute arising among the partners during the continuation of the partnership will be referred to the arbitration. For that the provisions of “Indian Arbitration Act, 1940” will be applicable.
S] AMENDMENTS & ALTERATION
That the partners will by mutual or oral agreement is at a liberty to amend, alter, vary or add to the aforementioned terms and conditions. We hereby, after hearing all the terms and conditions of the partnership put our hands to this deed on the said date, month, year.
FORM ‘H’ (See rule 17) CERTIFICATE OF REGISTRATION THE INDIAN PARTNERSHIP ACT, 1932 (Act No. IX of 1932)
Registration No. 237/GUJ/AMD32 It is certified that a firm by name NUMERO UNO with its head office at 2ndFLOOR, SWAPNIL COMPLEX, COMMERCE SIX ROADS, AHMEDABAD-380009 has this day been duly registered under the Indian Partnership Act,1932 (Act No. IX of 1932)
Give under my hand this day of 15/03/2010 Registrar/Assistant Registrar of Firms Ahmedabad
7 P’s of Service Marketing Product Price
Place Promotion
People
Physical Evidence
Process
? Service Product level chart
Potential Product Augmented Product Expected Product Basic Product
Core Benefit
No.
Level
Core benefit Basic product
Service Offers
? Personality development ? Qualitative teaching competent faculties ? Lucid Study materials library &lab facility ? ? ? ? ? ? ? ? ? ? ? ? ? Good infrastructure Regular classes Good interior & exterior Competent faculties Individual attention Cultural activity celebration Well equipped Library & Lab Video-conferencing Ergonomics & aesthetic arrangements Indoor games Health & meditation facilities Personal coaches Better life & career opportunity by With
1 2
3
Expected product
4
Augmented product
5
Potential product
Model of “Service level”
• Core service • Facilitating service Level-1 Basic service • Supporting service
package
Level-2 Augmented service
• Accessibility of service • Interaction • Customer participation
Level-3 Marketing Communication
• Corporate Image • Word of mouth • Marketing communication
Level-1 Basic Service Package Elements:
? Core Service:
It is the prime service which service provider exists to provide for. In our case it the “Development of Personality”. is
? Facilitating Service:
They are mandatory for the delivery of service without them the entire service process will collapse. e.g. Faculty, Infrastructure, Furniture, Stationery, Electricity, study material.
? Supporting Service:
They make value-addition to the core service. e.g. Library, computer lab.
Service Packages
Our main target segment will be students, corporate executives and Housewives. Accordingly we have designed individual training package for each segment along with two special packages meant for Spoken English and the other is crash courses of 5, 10, and 15 days.
Package for Students
Fees: Rs.5, 000 Duration: 3 months Timings: Morning: 8:00 - 9:30
Noon: 3:30 - 5:00 Evening: 6:00 - 8:30
Days: 3 Days in a Week Batch-1: Monday, Wednesday, Friday Batch-2: Tuesday, Thursday, Saturday
Level-1 Elementary level
Concept of language Usage & grammar Parts of speech Sentence formation skills Dialogue session Creative & simple terminology Soft-skill development Different usage of action words Questioning skills Messaging skills
Level-2 Advanced level
Ideal Introduction Self-Confidence & Perfection Session Listening Module Vocabulary & Pronunciation Session Preparing Impressive CVs Manners: Request, Offer Permission Art of Thanking People Telephonic Etiquette Group Discussion & Personal Interview Session Expressing opinions, views News session Effective speech session
Package for Corporate Executives Level-A
Fees: Rs.7, 000 Duration: 3 months Timings: Morning: 8:00-9:30
Evening: 6:00-8:30
Days: Monday, Wednesday, Friday Communication Skills
Business Communication Verbal and Non Verbal Communication Active Listening Behavioral & Telephonic Skills
Behavior Traits
Body Language Tone Presenting yourself Positive Attitude Confidence Building
Etiquette
Telephone and e-mail Etiquette Mannerism Art of Dressing Conversational Styles
Change Management
Understanding Change Causes of Change Resistance to Change Acceptance of Change
Presentation Skills Public Speaking Presentation by Participants Role Plays
Level-B
Fees: Rs.9, 000 Duration: 3 months Timings: Morning 10:00-11:30
Evening 7:30-9:00 Days: Tuesday, Thursday, Saturday
Creativity
Brainstorming Session Role Plays Small Projects
Time Management
Maintaining Time Log Prioritization to Works Art of Delegation Desk & Paper Management
Leadership
Leadership Styles Dos of Effective Leadership Perception for Leadership Leadership by Delegation
Team-Work
“We feeling” Factors Blocking & Contributing Team-Work Stages of Team development
Conflict Management
Techniques Practical Cases
Stress Management Goal Setting Presentations and Role Plays Video Films Management Games Case Studies
Package for Housewives known as “Be a perfect lady”
Fees: Rs.4, 500 Duration: 3 months Timings: Noon:-4:00-5:00 Days: Monday, Wednesday, Friday Level-1
Personality Development Confidence Building Social etiquette: Walking, Talking, Sitting Dinning Etiquette Developing Conversational Skill Improving Body Language, Gestures & Postures Personal Counseling Making your Importance felt in your family
Level-2
Art of entertaining guest in Hotel & Home Accompanying Husband to the Business Party Understanding Man – Woman Relationship Advanced Dinning Etiquette Home Management Beverages: Cocktail & Mock tail Preparation Developing Styles Special Sessions on Make-up, Hair style, &Art of dressing
Package for Spoken English
Level & Fees:
Basic Level Rs.4, 000 Intermediate Level Rs.5, 000 Advanced Level Rs.7, 500
Duration: 3 Months Timings:
Basic Level Morning: 8:00-9:30 Intermediate Level Noon: 4:00-5:30 Advanced Level Evening: 6:30-8:00
Days:
Batch-1: Monday, Wednesday, Friday Batch-2: Tuesday, Thursday, Saturday
Package for Computer course
Fees:
Ms-Office: Rs.4, 000 Tally : Rs.5, 000
Duration: 3 Months Timings: Noon: 3:00-4:30
Days:
Ms-office: Monday, Wednesday, Friday Tally: Tuesday, Thursday, Saturday
Crash Courses
Duration &Fees:
5 Days: Rs.1500 10 Days: Rs.3000 15 Days: Rs.4500
Level-2 Augmented service
At this level marketer tangibalize the intangibles & gives customer various clues to judge service quality & to make purchase decision.
Elements: Accessibility of Service:
It can be accessed on the basis of following evidences. ? Number & Skills of Employees ? Working hours & time used in performing various task ? Location of service outlet ? Exterior & interior of service outlet ? Knowledge of customers involved
Interaction: It mainly talks about3 type of interactions.
? Employees - Customers ? Customers - Physical & Technical resources ? Customers – Customers
Customer Participation:
It mainly depends on the followings. ? Awareness of customer about service-delivery & his role ? Preparedness of customer for sharing information ? How well customer shares information & uses service equipments
Level-3 Marketing communication of service
It makes those customers who are outside the service outlet aware of the service offer.
Elements: Corporate Image:
? Favorable Image helps in Increasing marketing of service ? Bad image affects its reputation
Word of Mouth:
? It is informal form of communication. ? Helps in making prospective customers aware of service quality.
Marketing Communication:
? It includes communication through various media like Leaflets, Brochures, and Hoardings/Displays.
Service Features
Competent & excellent faculties
Authentic study materials
Spacious & comfortable ambience
Well equipped library
Computer lab
Student resource centre
Competition & rewards
Price refers to “Value for money”. In our case Price refers to the course fees. Taking into account all the factors stated below we have determined most competitive price for our training packages. Price = Quantity of money received by service provider Quantity of service received by the customer
Pricing Methodology:
Our Pricing strategy is based upon “Going rate pricing method”. We have decided the fees structure for various training package which is nearer to the fees charged by our rivals so as to compete with them.
Pricing Objectives
Primary Objective:
Being new entrant in this industry the primary objective of our pricing strategy is Survival and profit maximization.
Secondary Objective:
Once we get established in the market and achieve brand reputation then we would like to maximize our market share by opening new branches of our school and also by developing web portal to provide our services.
Fees structure
Package For Students For Corporate executives Level-A Level-B For Housewives Spoken English Basic Intermediate Advanced Computer course Ms-office Tally Crash courses 5 days 10 days 15 days Fees (Rs.) 5,000 7,000 9,000 4,500 4,000 5,000 7,500 4,000 5,000 1,500 3,000 4,500
Factors Influencing Price
Our fees structure is based upon the factors like, the prime objective of business that is of survival, cost structure, estimated demand, and possible reactions from competitors so that our costs can be covered as well as we can earn the profit also.
Place refers to the physical existence of the service outlet where the customers will come into the direct inter course of the service provider and where services will be delivered by the service provider and received by the customers. Our Finishing school will be situated in the heart of the city.
Address: 2nd Floor, Swapnil Complex,
Commerce six roads, Navrangpura, Ahmedabad-380 009
Location Analysis
Reasons for selecting the Location:
We have hired the place on rent of Rs.45 per sq ft. The reasons for selecting this place are as follows.
? Proximity to Customers:
Navrangpura is considered to be both commercial as well as residential area. There are many colleges situated in this area o we will easily get access to our target segments.
? Transportation Facility:
This area has well developed transportation facility with easy and speedy access to various means of transportation like buses, auto-rickshaws etc.
? Diverse income Groups:
This area is considered to be economically developed area we can have access to the customers belonging to diverse income group.
? Better Infrastructure & Low Cost:
The infrastructure like access to transportation, energy, lift facility, communication facility is also very good. Rent is also reasonable compare to construction cost of the school in that context it has been selective option to hire the place in this location.
Characteristics of Service Outlet
Flexibility in Production
Flexibility in Consumption
Flexibility in Consumption Flexibility in Production
High Low
? Flexibility in consumption:
Availability of different timeslots to our customers will make the consumption flexible for them.
? Flexibility in production:
It will be low at the initial level as there are no other branches or franchises of our school so there will be only single place for delivering our services. Once we get established in the market, we are thinking of expanding our business by opening new branches of our school and also by developing web portal to provide our services.
The success of any new business entity depends on how well it has been able to create awareness about its products or services in its target segment so as to induce its consumption by customers. Promotion policy of business plays major role in this. Major means of promotion to be used by us are:
Advertisement: ? Newspaper
It will be the major mean of advertisement for our finishing school. We will be giving advertisement in, The Times Of India and in Gujarat Samachar.
? Leaflets with newspapers
This will be the second mean of advertisement to be used by us wherein the leaflets of our finishing school will be attached with the newspapers.
? Hoardings
We will be hiring the place like Vijay cross road, and Vastrapur for placing our hoardings.
It refers to the managing both internal customers that is the human capital of business involved in the service delivering process and external customers those who will actually consume the services.
External Custom ers Internal Custom ers
PEOPLE
Managing Internal Customers Elements: (1)Recruitment & selection:
We will be giving recruitment advertisement for faculties, receptionist and peon in The Times of India and Gujarat Samachar
. (2)Motivation:
The employees will be provided with following monetary and non-monetary benefits like bonus, picnic, and celebration of cultural activities, awards and certificates. Besides we will also follow suggestion box scheme.
(3)Team work:-
It is the team spirit on the part of the employees which is behind the success of any business entity. The culture of our organization will be such that will help in imbibing this spirit in our employees to provide qualitative service to customers. We will be having a meeting twice in a month to discuss important issues of business.
(4)Customer education:It is necessary for the employees of the organization to know who their customers are, what are their requirements and accordingly deliver the services to give them maximum satisfaction. In our case the major role in service delivering process will be played by counselors and faculties. We will create a kind of environment that updates them about the changing customer requirements continuously like by way of “Feedback Form” to be filled by our customers who have already availed our services and asking for their suggestion for further improvements.
No. of Employees: 12 Official Working Hours: 9:00am-9:00pm Designation Centre Head Counselors Faculty Receptionist Peon Sweeper No. of employees 1 2 Full time = 4 Visiting = 2 1 1 1 Working hours 10:00am - 8:00pm 10:00am - 8:00pm As per batch hours 10:00am - 6:00pm 9:00am - 9:00pm 9:00am - 11:00am 3:00pm - 5:00pm
Managing External Customers Elements: Characteristic of external customers influencing the Service Provider:
Demographic factors like Education and family background, Occupation, Income, attitude & aptitude, involvement of customer in the service delivering process, experience of customers, awareness & perception has direct influence on the service provider.
Awareness, Training & Education of customers:
The prime work on our part will be to make potential customers aware of our services by using various media like newspapers, hoardings, leaflets etc. Once they approach to our school for inquiry, this task will be handled by our counselors to create in them for joining school and once they join the school then responsibility of their training will be shouldered by our competent faculties.
Services being intangible it is difficult to touch, and judge them so it becomes necessary for marketer to tangibalize the intangible so as to provide customers with various clues to make purchase decision. This task is performed by physical evidence. The physical evidences for our services will be as follows:-
Name: “Numero Uno” Logo:
Punch Line: THE ULTIMATE FINISHING SCHOOL
Plant Layout: 4,500 sq ft
Business cards & brochure:
Performance Report:
We will be maintaining the performance report of our business on year to year basis. This will enable us in appraising our performance on the basis of certain criteria’s like profitability, revenue, cost etc. Besides the annual performance report of trainees will be maintained for comparative study this will act as a clue for our potential customers for taking decision.
Equipments:
LCDs, computers, audio-video materials, Library, computer lab will act as a physical evidence.
Our Service delivery process will be as follows:Entry
Inquiry about the courses offered
Customers can be Students, Corporate executives or housewives
Is he interested in joining school? c
Follow up & ask the reasons for not joining
Exit End
Admission Process (Collection of fees and advancing receipts)
Training/Teaching End
Evaluation at the end of the course End
Awards and Certificate to them who successfully complete the course
Exit
STEPS
Defining Problem & research objectives
Develop research plan
Collect Information
Make decision
Present Findings
Analysis of information
(1)Define the Problem & Research Objectives:
Market research is undertaken to achieve particular objectives by acquiring necessary information. The prime objective of our research is to find out scope and feasibility for establishing Finishing School in Ahmedabad.
Other Objectives:
? To get the information regarding the number of finishing schools existing in the Ahmedabad. ? To find awareness level of people regarding finishing school. ? To find the potential market for new finishing school. ? To find out process of establishing new finishing school. ? To determine the competitive fees structure to attract maximum customers.
(2)Develop Research Plan:
Sources of data:
Primary data:
It is the first hand information collected by the researcher for its research purpose. For us primary sources of data collection were ? Visit of various Finishing schools ? People:-We have surveyed 1000 people of Ahmedabad for this purpose.
Secondary data:
The data collected from external sources where it was already existing for research purpose is known as secondary data like from Newspapers, Magazines, Internet etc.
Data collection method
Research approach:-“Survey Approach” Research instrument:-Questionnaires for consumers
Sampling Plan:
It mainly contains following 3 components.
(1)Sample unit:
It represents the target population for the survey. We mainly targeted students, corporate executives, and housewives living in Ahmedabad.
(2)Sample size:
The survey was of 1000 respondents (Male & Female) of Ahmedabad city. We bifurcated them based upon their income level and occupation to make sample more representative of population.
(3)Sampling Procedure:
? Convenience Method: We have surveyed conveniently accessible respondents like students of various schools and colleges of Ahmedabad and corporate executives and housewives residing I our nearby area. ? Contact Method: We contacted each respondent individually and extracted information from them.
(3)Collect the information:
It is the most time consuming and expensive phase for any market research. In this survey we faced following problems. ? Non availability of respondents. ? Biased and wrong answers by respondents. ? Some respondents were not ready to give information about their financial position. We worked hard to collect all possible information so as to get the idea about the true market scenario.
(4)Analysis of Information:
Now, in this stage collected data is tabulated and analysed on the basis of some criteria.
(5)Present Finding:
We have presented our findings in the form of following charts.
GENDER WISE DISTRIBUTION OF REPONDENTS
Male Female Total
574 426 1000
57% 43% 100
Gender wise distribution of Respondents
43%
57%
Male Female
The above chart shows the respondents who were surveyed. From the above chart we can analyze that more than half of the respondents (about 58%) were male. The female constitutes about 43% out of the respondents who were surveyed.
OCCUPATION WISE DISTRIBUTION OF RESPONDENTS
Occupation Student Service Class Persons Business Person Housewife Retired Total
No. of Respondents 519 284 126 52 19 1000
No. of Respondents (%) 52 28 13 5 2 100
Occupation Wise Distribution of Respondents
60% 50% Respondents(%) 40% 30% 20% 10% 0% Student Service Class Business Person Housewife Retired 28% 13% 5% 2% 52%
Occupation
The above chart represents occupation-wise distribution of respondents. We can analyze that majority of the respondents were students (52%), followed by service class persons (28%), business persons (13%), as they are the main target segment for our finishing school. The number of housewives and retired persons surveyed constitute 7% of total respondents.
FAMILY INCOME (MONTHLY)
Income Level (In Rs.) Below 20,000 20,000-40,000 40,000-60,000 Above 60,000 Total No. of Respondents No. of Respondents (In %) 42 35 13 10 100
423 347 134 96 1000
Distribution of respondents as per Income
10% 13% 42% Below 20,000 20,000-40,000 35% 40,000-60,000 Above 60,000
This chart represents that majority of the respondents belong to the income group of below 20,000 (42%), followed by income group Rs. 20,000-40,000 (35%), Rs. 40,00060,000 (13%). The number of respondents belonging to the income group of Above Rs. 60,000 is very few approximately (10%).
EDUCATIONAL QUALIFICATION
Educational Qualification 10th or 12th Undergraduate Graduate Post Graduate Total No. of Respondents 84 412 349 155 1000 No of Respondents (In %) 8 41 35 16 100
Distribution of respondents as per Educational Qualification
45% 40% 35% Respondents 30% 25% 20% 15% 10% 5% 0% 10th or 12th Undergraduate Graduate Post Graduate Educational Qualification 8% 16% 10th or 12th Undergraduate Graduate Post Graduate 41% 35%
This chart represents that majority of the respondents approx. (41%) were undergraduates as the large portion of the sample was composed of the students, followed by graduates (35%) and post graduates (16%). The numbers of respondents belonging to Std. 10th or 12th were very few approx. (8%).
Whether personality can be developed or not
Strongly Agree Agree Neutral Disagree Strongly Disagree Total 352 307 179 109 53 1000 35% 31% 18% 11% 5% 100
Whether personality can be developed or not
Disagree 11%
Strongly Disagree 5%
Strongly Agree Strongly Agree 35% Agree Neutral Disagree
Neutral 18% Agree 31%
Strongly Disagree
Majority of the respondents agreed i.e. 66% that yes personality can be developed. There were some respondents who were neutral (18%) on the question. Around 16% of the respondents were of the opinion that personality can’t be developed.
Awareness about Finishing School
Yes No 437 563 44% 56%
Awareness about Finishing School
Yes Yes 44% No
No 56%
From the above chart we can analyze that more than half of the respondents (56%) were unaware about the Finishing School. Around 44% of the respondents were aware about the Finishing School. The reasons for unawareness can be attributed to lack of large scale advertisement of finishing schools in the city.
SOURCES OF AWARENESS
Sources Magazine Radio Internet Word of Mouth Hoarding Newspaper No of Respondents 123 139 345 234 216 358 No of Respondents (In %) 9 10 24 17 15 25
Sources of Awareness
Magazine 9%
Newspaper 25%
Radio 10%
Magazine Radio
Hoarding 15% Word of Mouth 17%
Internet 24%
Internet Word of Mouth Hoarding Newspaper
From the above chart it is clear that the major sources of information are Newspapers and Internet. Half of the respondents came to know about Finishing School from these 2 sources. Apart from these 2 sources Hoarding and Word of Mouth together (32%) are also the major sources of information. While few respondents (19%) came to know about Finishing School from Magazines and Radio.
WILLINGNESS FOR JOINING FINISHING SCHOOL
No of Respondents No of Respondents (In %) 54 39 7 100
Yes No Not Sure Total
543 384 73 1000
Willingness for joining Finishing School
Not Sure 7% Yes No No 39% Not Sure Yes 54%
More than half of respondents i.e. 54% agreed to join Finishing School. While 39% respondents said that they don’t want to join the Finishing School. The reason can be low awareness level.
SECTION - 1
FACTORS INFLUENCE TO JOIN FINISHING SCHOOL?
Factors Fluency in English Personality grooming Confidence enhancement Polished Social Interaction Polished Business Interaction Total No of Respondents 239 218 146 125 139 No of Respondents (In %) 28 25 17 14 16 100
Influencing Factors to join Finishing School
30% 25% Respondents 20% 15% 10% 5% 0% Fluency in English Personality grooming Confidence enhancement Polished Social Polished Business Interaction Interaction 17% 14% 16% 28% 25%
Influencing Factors
Around 53% respondents were of the opinion that they would like to join the Finishing School for getting Fluency in English and Personality Grooming. The reasons could be low level of English due to socio-cultural aspects and influence of vernacular (Gujarati) language. Apart from these Confidence Enhancement and Polished Business and Social Interaction were considered equally important by the respondents.
FEATURES
Features Very important Somewhat Important No. 219 235 187 178 % 40 43 34 33 Neutral Less Important Not Important No. 14 9 3 12 % 3 2 1 2
No. Flexibility in Timings Fees Professiona lism Responsive ness of staff Proximity of Location Special Discounts 240 223 217 192
% 44 41 40 35
No. 36 39 132 99
% 7 7 24 18
No. 34 37 4 62
% 6 7 1 12
167 186
31 34
183 162
34 30
113 107
21 20
64 59
11 11
16 29
3 5
Preference of Finishing School based on Features
50% 45% 40% Respondents(%) 35% 30% 25% 20% 15% 10% 5% 0% 7% 6% 3% 7% 7% 2% 1% 1% 2% 3% 24% 21% 18% 12% 11% 20% 11% 5% 34% 44% 40% 43% 41% 40% 35% 33% 34% 31% 34% 30% Very Important Somewhat Important Neutral Less Important Not at all Important
Features
From the above chart we can analyze that majority of respondents considered all the features as very important to important. There were some respondents also who were neutral about professionalism, responsiveness of staff, proximity of location and special discounts. Very few respondents considered above features as less important and not at all important.
WILLINGNESS OF SPENDING INCOME AS FEES
Fees Income Below 20,000 20,000-40,000 40,000-60,000 Above 60,000 5,000-10,000 No. 137 87 32 23 (%) 64 49 42 30 10,000-15,000 No. 73 65 19 11 (%) 34 37 25 15 15,000-20,000 No. 4 22 13 23 (%) 2 12 17 30 Above 20,000 No. 0 3 12 19 (%) 0 2 16 25
Willingness of spending Income as Fees
70% 60% Respondents(%) 50% 40% 30% 30% 20% 10% 0% 5,000-10,000 10,000-15,000 15,000-20,000 Above 20,000 Fees 49% 42% 37% 34% 25% 15% 17% 12% 2% 30% 25% 16% 0% 2% Below 20,000 20,000-40,000 40,000-60,000 Above 60,000 64%
Fee is the major factor of any service. Out of total respondents who were willing to join Finishing School it shows that 64% respondents who belong to income group of Below 20,000 were ready to pay Rs.5,000-10,000. This shows that respondents whose income was high were ready to pay more and whose income was low were not ready to pay more.
PREFERENCE OF TIMINGS AS PER OCCUPATION
Occupation No. Student Service Class Person Business Person Housewife Retired Total 156 21 12 17 6 212 Daily (%) 73 10 6 8 3 39% Weekends No. 98 106 99 19 9 331 (%) 29 32 30 6 3 61% 100 %
Preference of timings as per Occupation
80% 73%
Respondents
60% 40% 20% 0% Student Service Business Person Occupation Housewife Retired 29% 32% 10% 30% 8% 6% Daily Weekends 6% 3% 3%
Majority (61%) of respondents showed their preference to come on Weekends. Rest 39% respondents preferred to come daily which is mostly preferred by Students (73%).
BATCH PREFERENCE AS PER OCCUPATION
Particulars Morning No. Student Service Business Person Housewife Retired Total 43 4 5 3 2 57 (%) 75 7 9 5 4 27 Noon No. 59 12 2 12 1 86 (%) 69 14 2 14 1 41 Evening No. 54 5 5 2 3 69 (%) 78 7 7 3 5 32 100%
Batch preference as per Occupation
80% Respondents(%) 60% 40% 20% 0% Student Service Business Person Occupation Housewife Retired 14% 7% 7% 9% 2% 14% 5% 3% Morning Noon 4% 1% 5% Evening 7% 75% 78% 69%
Respondents who wanted to come daily said that noon would be the most preferable time. Around 41% of the respondents told it followed by 32% & 27% of the respondents who wanted to come in the evening & morning respectively.
TIME SPENT PER DAY
Particulars Male No. 1 Hour 2 Hours 3 Hours Total 155 141 42 338 (%) 46 42 12 62 Female No. 100 80 25 205 (%) 49 39 12 38
Willingness to spend time per day
50% 45% 40% 46% 49% 42% 39%
Respondents
35% 30% 25% 20% 15% 10% 5% 0% 1 HOUR 2 HOURS No of Hours 3 HOURS 12% 12% MALE FEMALE
In both the cases male & female preferred 1 Hour in a day for a Finishing School with 46% & 49% respectively followed by 42% & 39% who were ready to spend 2 Hours. There were only 12% of respondents who were ready to spend 3 Hours in a day.
SECTION – 2
REASON FOR NOT JOINING FINISHING SCHOOL
Reason Fees Timing Not Sure Total No of Respondents 153 231 73 457 No of Respondents (In %) 33 51 16 100
Reasons for not joining FS?
Not Sure, 16% Fees,33% Fees Timing, 51% Timing Not Sure
According to half of the respondents (51%) timing is the major reason for not joining the Finishing School followed by fees (33%). While 16% of the respondents were not sure of any reason for not joining the Finishing School.
IN FUTURE WOULD YOU LIKE TO JOIN FINISHING SCHOOL?
Yes No Not sure Total 162 207 88 457 36 45 19 100
Future Demad of FS
Not sure 19%
Yes Yes 36% No Not sure
No 45%
Approximately 45% of respondents were not ready to join finishing school even in future. Approximately 36% of respondents affirmed to join finishing school in future. While 19% of respondents were not sure of joining the same.
FINDINGS
? Majority of the respondents surveyed were the students as the large portion of the sample composed of the students. ? As Majority of the respondents were from the income group Below 20,000, they selected the fees structure varying from Rs.5000 to Rs.10,000. ? Awareness level for Finishing school was comparatively low in the Ahmedabad. Reasons can be lack of large scale advertisements. ? Major source of awareness were Newspapers and Internet. ? Majority of the respondents considered fluency in English as most influencing factor to join finishing school as the level of English being low in Gujarat due to socio-cultural aspect and influence of vernacular language. ? They also considered Personality Grooming as the second most influencing factor to join school. This can be due to growing demand for Professional with soft skills. ? Majority of the respondent opted for weekend time slots. This may be the case due to Saturday being half day and Sunday being holiday, they can get sufficient time to concentrate on this specially in case of Professionals.
Counseling Psychologist Job Description
Job Title: Counseling Psychologist Reports to: Center Head Supervises: Students/ New entrants Functions:
? Getting information ? Establishing interpersonal relations ? Analyzing information ? Identifying situations of the entrants and prescribing the right course for them ? Processing documentation and recording information and maintaining records ? Developing new standards of personality evaluation
Duties and Responsibilities:
? Must combine pieces of information to form general rules/conclusions ? The ability to tell someone about their problems in a subtle way ? To comprehend the nature of an individual from the replies he gives and to listen and understand clearly the problems pertaining to human nature. ? He must co-ordinate the information well enough to provide useful information to organization.
Job Specification Job Title: Counseling Psychologist Education Degrees:
? M.A. with Psychology as the main subject. ? M Phil/ PhD in psychology
Language Skills:
English, Hindi, Gujarati
Work Experience:
An experience of 2-3 years in counseling psychology
Skills:
Speech clarity, problem sensitivity, oral expression and comprehension, speech recognisation
Physique and Health:
Good health and sound mind
Appearance:
Sensitive, Empathetic and Affable.
Mental Abilities:
Inductive and deductive reasoning originality, listening and persuasion
Maturity:
To evaluate the personality to fill up the gaps to recommend appropriate courses therein.
Computer Teacher Job Description
Job Title: Computer Teacher Reports to: Centre Head Supervises: Students Functions:
? Interacting with computers ? Training and teaching students ? Updating and using relevant knowledge ? Observing, receiving and otherwise obtaining information from all relevant sources. ? Communicating with supervisors, peers or subordinates. ? Interpreting the meaning of information to others ? Coaching and developing students
Duties and Responsibilities:
? Taking regular classes prepare and deliver lectures to students ? Teaching students and clear their doubts
Job Specification Job Title: Computer Instructor Education Degrees:
BCA/MCA/MSC IT (specialization in tally course is must)
Language Skills:
English, Hindi, Gujarati
Work Experience:
At least 2 years experience in teaching computers at any institution.
Skills:
Expert in computer programming, especially in MS office and tally
Physique and Health:
Speech clarity, active listening, long term vision.
Appearance:
Dynamic, charming, presentable
Mental Abilities:
Critical thinking and complex problem solving
Maturity:
Presence of mind, problem sensitivity
English language and literature teacher
Job Description
Job Title: English language and literature teacher Reports to: centre head Supervises: students Functions:
? Training and teaching students ? Communication with peers ? Making decision and solving problems ? Scheduling work and activities
Duties and Responsibilities:
? Prepare and deliver the lecture ? Initiate, facilitate and moderate classroom discussion. ? Prepare course material according to the level of students ? Compile bibliographies of specialized materials for outside reading assignment ? Make practical presentation in the class
Job Specification Job Title: English language and literature teacher Education Degrees:
M.A (subject: English)
Language Skills:
Fluent English, Hindi, Guajarati
Work Experience:
2-3 years experience in teaching English at any institution
Skills:
Instructing, reading comprehension, writing, critical thinking, active listening, speaking, time management
Physique and Health:
A healthy body and sound mind.
Appearance:
A dynamic personality with cogent communicative abilities.
Mental Abilities:
Convincing capabilities with a prolific knowledge of the language.
Maturity:
Oral expression, speech clarity, inductive reasoning, deductive reasoning, vision, problem sensitivity
Receptionist
Job description Job Title: Receptionist Reports to: center head Supervises: students Functions:
? Receiving the customers and reverting them to the counseling psychologist. ? Data entry and maintenance of records of the trainees. ? Coordinating the schedules of the various classes. ? Attending and handling the telephone correspondences.
Duties and Responsibilities:
? To attend to the functions of correspondences and data entry operations with precision and skill. ? To remain present and to handle the customer inquiries and satisfy them completely by providing the required information.
Job Specification Job Title: Receptionist Education Degrees:
Graduation in any stream.
Language Skills:
Fluency in English, Hindi and Gujarati.
Work Experience:
1-2 years experience as a receptionist is an added advantage
Skills:
Convincing and fluent linguistic abilities, multi-tasking and handling the problems effectively.
Physique and Health:
A healthy body and sound mind.
Appearance:
A beautiful, presentable person with a good personality.
Mental Abilities:
Ability to manage time and handle customers with courtesy.
Maturity:
Oral expression and speech clarity.
SALARY STATEMENT FOR THE FINANCIAL YEAR 20010-2011
(Figures in Rs.)
SALARY STATEMENT FOR THE FINANCIAL YEAR 20011-12
(Figures in Rs.) Monthly Salary 15000 5000 10000
Designation Coordinator Counselors Faculties Visiting Faculty (Per Lecture 500) Receptionist Peon Sweeper Designation Coordinator Counselors Faculties Visiting Faculty (Per Lecture 550) Receptionist Peon Sweeper
No. of Persons 1 2 4
Annual Salary 180000 120000 480000
Bonus 15000 10000 40000
Total Salary 195000 130000 520000
2500 7000 4000 1000 Monthly Salary 16500 5500 11000
2 1 1 1 No. of persons 1 2 4
60000 84000 48000 12000 Annual Salary 198000 132000 528000
5000 7000 4000 1000 Total Salary Bonus 16500 11000 44000
65000 91000 52000 13000 1066000 Total Salary 214500 143000 572000
2750 7700 4400 1100
2 1 1 1
66000 92400 52800 13200
5500 7700 4400 1100 Total Salary
71500 100100 57200 14300 1172600
SALARY STATEMENT FOR THE FINANCIAL YEAR 2012-13 (Figures in Rs.)
Designation Coordinator Counselors Faculties Visiting Faculty (Per Lecture 605) Receptionist Peon Sweeper
Monthly Salary 18150 6050 12100
No. of persons 1 2 4
Annual Salary 217800 145200 580800
Bonus 18150 12100 48400
Total Salary 235950 157300 629200
3025 8470 4840 1210
2 1 1 1
72600 101640 58080 14520
6050 8470 4840 1210 Total Salary
78650 110110 62920 15730 1289860
ORGANISATION CHART
Particulars Fixed assets Preliminary expenses Contingencies Total
Amount(Rs.) 10,74,240 75,000 1,00,000 12,49,240 12,50,000
Particulars Partner’s Capital [Equally contributed by 10 partners]
Amount(Rs.) 12,50,000
Particulars Legal fees Stamp duty Market survey cost Trademark Electricity connection Total
Amount(Rs.) 15,000 10,000 5000 15,000 30,000 75,000
Particulars
Students Corporate Executives Level-A Level-B Housewives Spoken English Basic level Intermediate level Advanced Level Computer Course Ms-Office Tally Crash Course 5 days 10 days 15 days
Fees(Rs.)
5000
No. of students
10
Batch
6
Frequency
4
Total(Rs.)
1200000
7000 9000 4500
15 10 10
2 2 1
4 4 4
840000 720000 180000
4000 5000 7500
20 10 5
1 1 1
4 4 4
320000 200000 150000
4000 5000
10 10
3 3
4 4
480000 600000
1500 3000 4500
10 10 10
1 1 1
10 10 10
150000 300000 450000
TOTAL
5590000
Particulars Newspaper Ahmedabad Times [9*8cm, Page-3, 4 times in a week] City Bhaskar [15*12cm, page-1, once in a week] Leaflets with Newspaper [15000copies*1.5, distributed in 3 months] Commission [Rs.125 per 1000 copies] Hoardings Vijay Cross road, Navrangpura Satellite Vastrapur
Cost(Rs.)
Frequency(p.a)
Total(Rs.)
15,000 12,000
4 4
60,000 48,000
22,500
4
90,000
1875
4
7500
30,000 1,50,000 1,00,000
1Month 1 Month 1 Month
30,000 1,50,000 1,00,000
Recruitment Advertisement Gujarat Samachar [ 4 ads in a week] Times Of India [4 ads in a week] Total 20,000 10,000 2 2 40,000 20,000 5,45,500
Statement of Assets
Particulars Qty Price (Rs.) Per unit Trademark Benches White board Table Chairs 80 5 1 19 15 Sofa set with Tepoy Glass Cubicals Lights Library racks Computer Plank Fire fighting equipment ACs Computers Electricity connection charges LCDs Fans 2 12 50,000 550 1 1 25 1 1 3 8 12 1000 1000 15,000 1000 2000 45,000 40,000 300 10,000 15,000 1800 26,530 22000 15,000 80,000 5000 15,000 19,000 30,000 45,000 40,000 7500 10,000 15,000 5400 2,12,240 2,64,000 24,500 Amount(Rs.)
1,00,000 6600
Lamination Machine Water cooler Printer Books Generator Cost of Construction of wash room
1 1 1 1 1 1
5000 35,000 20,000 25,000 45000 50,000
5000 35,000 20,000 25,000 45,000 50,000
Total
10,74,240
STATEMENT OF DEPRECIATION
Particulars Trademark Benches White board Table Chairs Amount(Rs.) 15,000 80,000 5000 15,000 19,000 30,000 Sofa set with Tepoy Glass cubicals Lights Library racks Computer Plank Fire fighting equipment ACs Computers Electricity connection charges LCDs Fans Lamination Machine Water cooler 45,000 40,000 7500 10,000 15,000 5400 2,12,240 2,64,000 24,500 Depreciation rate (%) 25 10 10 10 10 10 10 10 10 10 10 25 25 60 25 Depreciation(Rs.) 3750 8000 500 1500 1900 3000 4500 4000 750 1000 1500 1350 53000 158000 6125 WDV 11,250 72,000 4,500 13,500 17,100 27,000 40,500 36,000 6,750 9,000 13,500 4,050 159,240 106,000 18,375
1,00,000 6600 5000 35,000
10 25 25 25
10000 1650 1250 8750
75,000 4,950 3,750 26,250
Printer Books Generator Cost of Construction of wash room
20,000 25,000 45,000 50,000
60 100 10 10
12000 25000 4500 5000
8,000 0 40,500 45,000
Total
10,74,240
322025
(Rs. In Lacs) PARTICULARS 20102011 20112012 20122013 20132014 20142015
GROSS RECEIPTS Fees Received TOTAL Increase Or Decrease COST OF PROJECT Material Purchase 0.50 0.55 0.61 0.67 0.73 55.90 55.90 61.49 61.49 10% 67.64 67.64 10% 74.40 74.40 10% 81.84 81.84 10%
Stationery
0.30
0.33
0.36
0.40
0.44
Specific course material
0.25
0.28
0.30
0.33
0.37
Electricity charges
3.07
3.38
3.71
4.09
4.49
Wages & Salaries
10.66
11.73
12.90
14.19
15.61
Rent
21.60
21.60
21.60
27.00
27.00
Depreciation
3.22
1.68
1.01
0.74
0.54
Cost of production Selling General & Administration exps.
39.60 6.20
39.54 6.82
40.49 7.50
47.41 8.25
49.18 9.08
SUB -TOTAL
45.80
46.36
48.00
55.66
58.26
OPERATING PROFIT BEFORE INT.
10.10
15.13
19.64
18.74
23.59
Less: Interest on capital @5%
0.63
0.66
0.69
0.72
0.75
OPERATING PROFIT AFTER INT. Other non-operating exps. Preliminary Expenses. PROFIT BEFORE TAX Less: PROVISION FOR TAXES NET PROFIT
9.47
14.47
18.95
18.02
22.84
0.15 9.32 2.88
0.15 14.32 4.43
0.15 18.80 5.81
0.15 17.87 5.52
0.15 22.69 7.01
6.44
9.90
12.99
12.35
15.68
(Rs. In Lacs)
PARTICULARS
20102011
20112012
2012-2013
2013-2014
2014-2015
CURRENT LIABILITIES. Sundry Creditors (Exp.) Provision For Taxation 4.00 4.00 4.00 4.70 5.00
2.88
4.43
5.81
5.52
7.01
TOTAL CURRENT LIABILITIES
6.88
8.43
9.81
10.22
12.01
NET WORTH Partners capital inclusive of profit/loss General Reserve NET WORTH 18.28 13.13 13.79 14.48 15.20
1.29 19.57
1.98 15.11
2.60 16.39
2.47 16.95
3.14 18.34
TOTAL LIABILITIES
26.45
23.53
26.20
27.17
30.35
CURRENT ASSETS Cash and Bank Balance Receivables Other Current Assets 12.67 11.08 14.21 15.47 18.54
5.60
6.10
6.80
7.40
8.20
Telephone Deposit
0.06
0.06
0.06
0.06
0.06
18.33 TOTAL CURRENT ASSETS FIXED ASSETS Gross Block Depreciation Net Block Preliminary expenses TOTAL ASSETS 10.74 3.22 7.52 0.60 26.45
17.24
21.07
22.93
26.80
7.52 1.68 5.84 0.45 23.53
5.84 1.01 4.83 0.30 26.20
4.83 0.74 4.09 0.15 27.17
4.09 0.54 3.55 30.35
(Rs. In Lacs)
Particulars
2010-11
2011-12
2012-13
2013-14
2014-15
Opening balance Capital introduced
0 12.5
13.13 0
13.79
14.48
15.2
Total
12.5
13.13
13.79
14.48
15.2
Interest on capital Profit and loss account
0.63 5.15
0.66 7.92
0.69 10.39
0.72 9.88
0.75 12.54
Total
18.28
21.71
24.87
25.08
28.49
Less : profit distributed amongst partners equally
5.15
7.92
10.39
9.88
12.54
Closing balance
13.13
13.79
14.48
15.2
15.95
ASSUMPTIONS UNDERLYING THE FINANCIAL STATEMENTS
? The demand is as per our estimate for all the packages designed are as per the results of the market survey. It does not vary largely. ? There is a consistent increase of 10% in revenue every year. ? All the expenses are increasing at the rate of 10% every year. ? 20% of the profits are transferred to General Reserve every year. ? Taxes are charged at the rate of 30%. ? Selling and administration expenses of the first year include: ? Telephone expenses of Rs. 18000 ? Internet expenses of Rs. 40000 ? Insurance premium of Rs. 1130 ? Audit fees of Rs. 13000 ? Advertisement expenses of Rs. 5,45,000. ? Rent will increase by 25% from the fourth year. ? All preliminary expenses are written off over a period of 5 years. ? Depreciation has been calculated as per the accounting standards. ? The profit is divided amongst the partners equally.
(Rs. In Lacs)
Particulars
A)CASH FLOW FROM OPERATIONS
2010-11
2011-12
2012-13
2013-14
2014-15
Opening balance of P&L Less: Closing balance of P&L
9.32
14.32
18.80
17.87
9.32
14.32 5
18.80 4.48
17.87 -0.93
22.69 4.82
Add: Transfer to General Reserve Depreciation Preliminary expenses written off Interest on capital
CHANGES IN WORKING CAPITAL
3.22
1.68
1.01
0.74
0.54
0.15 0.63
0.15 0.66
0.15 0.69
0.15 0.72
0.15 0.75
Increase in creditors for expenses Increase in debtors Less: Income tax paid
4
0.7
0.3
-5.6
-0.5
-0.7
-0.6
-0.8
2.88
4.43
5.81
5.52
Net cash flow from operations B)Cash flow from investment activities Purchase of assets preliminary YEAR expenses PAT deposits Net cash flow from investment activities C)Cash flow from financial activities Partners capital infusion Net cash flow from financial activities (A+B+C) Add:Opening cash balance Closing cash balance
11.72
4.11
1.20
(5.03)
0.24
-10.74
-0.75 DEPRECIATION -0.06
CFAT
CUM. CFAT
D.R. AT 10%
DISC.CFAT
-11.55
12.5
-5.7
1.93
6.29
2.83
12.50 12.67
-5.70 -1.59
1.93 3.13
6.29 1.26
2.83 3.07
12.67
11.08
14.21
15.47
12.67
11.08
14.21
15.47
18.54
(Rs. In Lacs)
2010-11 2011-12 2012-13 2013-14 2014-15 TOTAL
6.44 9.90 12.99 12.35 15.68 57.36
3.22 1.68 1.01 0.74 0.54 7.19
9.81 11.73 14.15 13.24 16.37 65.3
9.81 21.54 35.69 48.93 65.3
0.909 0.826 0.751 0.683 0.621
8.92 9.69 10.63 9.04 10.17 48.45
(1) Payback Period :Total investment (Cost of project) = 12.50lacs Amount recovered in 1st year = 9.81lacs = 12.50 – 9.81 = 2.69 lacs = 0.23 yrs
Amount left to be recovered after 1st year
Time period of recovery of remaining amount = 2.69/11.73 Payback Period= 1 + 0.23 = 1.23 years Criteria for selection of project
roject with least payback period is preferred first. Interpretation:-
Our total investment will be recovered within 1.23 years. The time period of recovery being less it is viable as per payback period method.
(2) Average rate of return (ARR) :ARR = (Average profit after tax/Average investment)*100 Average PAT = Total PAT/5 = 57.36/5 = Rs. 11.47 Lacs Average investment = (Cost – Scrap value/2) + scrap value + Working capital investment = 12.5/2 + 13.87
= 20.12
ARR
= (11.47/20.12)*100 = 57%
Criteria for selection of projectroject having highest positive rate of return is considered best. Interpretation:On an average our project will yield 57% return on total investment every year. ARR being positive our project is viable.
(3) Net Present Value:NPV = Present value of cash inflow – Present value of cash outflow = 48.45 – 12.50 = Rs. 35.95 lacs
Criteria for selection of project:If NPV is Positive, project is selected If NPV is zero, it is indifferent situation you can select it or reject it taking into account other factor. If NPV is Negative, project is rejected. Interpretation:As our NPV > 0 i.e. it is positive so it is acceptable.
(4) Profitability Index (PI)I = Present value of cash inflow/Present value of cash outflow = 48.45/12.50 = 3.88
Criteria for selection of project:If PI > 1, project is accepted. If PI < 1, Project is rejected. Interpretation:As our PI > 1, the project is feasible.
(5) Internal Rate of Return :CFAT 9.81 11.73 14.15 13.24 16.37 TOTAL DIS RATE @ 90% 0.526 0.277 0.146 0.077 0.04 DIS. CFAT 5.16 3.25 2.07 1.02 0.65 12.15 DISC.RATE @ 85% 0.541 0.292 0.158 0.085 0.046 DISC. CFAT 5.31 3.43 2.24 1.13 0.75 12.86
Fack payback period = Investment/Average cash inflow = 12.5/13.06 = 0.96years Average cash inflow = 65.3/5 = Rs. 13.06 Lacs IRR = 85 + [(12.86 - 12.5)/(12.86 – 12.15)] * 5% = 85% + 2.54% = 87.54% Interpretation:AS IRR is positive and greater than ARR, Project is feasible.
Particulars
2010-11
2011-12
2012-13
2013-14
2014-15
Total fixed costs
Salary Rent Depreciation Audit fees Preliminary expenses Advertisement expenses Insurance Interest on capital TOTAL FIXED COSTS Total variable costs Telephone Internet Stationery Material Purchases Special Course Material Electricity
10.66 21.6 3.22 0.13 0.15 5.45 0.01 0.63 41.85
11.73 21.6 1.68 0.14 0.15 6 0.11 0.66 42.07
12.9 21.6 1.01 0.15 0.15 6.6 0.12 0.69 43.22
14.19 27 0.74 0.16 0.15 7.2 0.13 0.72 50.29
15.61 27 0.54 0.17 0.15 7.9 0.14 0.75 52.26
0.18 0.4 0.3 0.5 0.25 3.07
0.19 0.44 0.33 0.55 0.28 3.38
0.2 0.48 0.36 0.61 0.31 3.71
0.21 0.53 0.4 0.67 0.34 4.09
0.22 0.58 0.44 0.74 0.37 4.49
Total Variable Cost
4.7
5.17
5.67
6.24
6.84
SALES Less:Variable costs
55.9 4.7
61.49 5.17
67.64 5.67
74.4 6.24
81.84 6.84
Contribution Less:Fixed Cost Profit
51.2 41.85 9.35
56.32 42.07 14.25
61.97 43.22 18.75
68.16 50.29 17.87
75 52.26 22.74
P/V Ratio =Contribution/Sales*10 0
91.59
91.59
91.62
91.61
91.64
BREAK EVEN SALES(in Rs.)= Fixed Cost/P/V Ratio
45.69
45.93
47.17
54.89
57.03
Margin Of Safety(Rs.)= Profit/P/V Ratio
10.21
15.56
20.47
19.51
24.81
RATIO ANALYSIS
PARTICULARS Current Ratio (Current Assets/Current Liabilities) Quick Ratio (Cash+Bank/Liquid Liabilities) Net Profit Ratio (Net Profit/Sales*100) % Expense Ratio (Expense/Sales*100) % Return on investment or Capital employed (EBIT/Capital employed*100) (In %) Fixed Assets Turnover Ratio (Sales/Fixed assets) (In times) Total assets turnover ratio (Sales/Total assets) (In times) Proprietary ratio (Proprietors' funds/Total assets) 2010-11 2.66 2011-12 2.05 2012-13 2.15 2013-14 2.24 2014-15 2.23
1.84 9.21 81.93 53.24
1.32 12.88
75.39
1.45 14.92 70.96 122.06
1.51 13.28 74.81 111.55
1.54 15.32 71.18 82.28
103.21
7.43
10.53
14
18.19
23.05
(in times) 2.16 2.45
2.61
2.75
2.7
0.73
0.58
0.62
0.62
0.94
Analysis
Current Ratio
The current ratio which shows the credibility of the organization to repay its creditors is very sound. So, it can be inferred that although the funding is totally by the partners now, it would be possible to finance any expansion plans in future with the help of loans from banking institutions and other financial sources. We have not tried to invest although the ratios tend to be very high because of the high lock in periods and because of the recessionary trends.
Current Ratio Trend
3.00 2.50 Current Ratio 2.00 1.50 1.00 0.50 0.00 2010-11 2011-12 2012-13 Year 2013-14 2014-15
Quick Ratio
The liquid position indicated by quick ratio stands at nearly 1.84 which is nearly double the liquid liabilities. It reflects strong cash position of the organization which shows a tendency to increase in all the consequent years.
Net Profit Ratio
The net profit ratio has a steady tendency of increasing which also shows that the profitability shows the upward trend in coming 5 years. Expenses are needed to be checked to increase it further.
Net Profit Ratio
18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 2010-11 2011-12 2012-13 Year 2013-14 2014-15
Net Profit %
Expenses Ratio
We can infer that the expenses are whopping 80% of sales value. Care needs to be taken to find ways to curb it and to keep it under control. Cost control and reduction methods need to be judiciously adopted.
Return of Capital Investment or Capital Employed
The rate of return is satisfactory at 53% and tends to grow steadily which shows that the earnings on investments are laudable and it even reaches 122% in its third year itself.
Return on Investment
140.00 120.00 Return on Investment % 100.00 80.00 60.00 40.00 20.00 0.00 2010-11 2011-12 2012-13 Year 2013-14 2014-15
Fixed Assets Turnover Ratio This ratio shows the efficiency with which the fixed assets are employed in business. The fixed assets are turned over 7 times a year which is very positive. Total Assets Turnover Ratio The efficiency with which the total assets are turned over in the business is somewhat lower which needs to get grow further.
Proprietary Ratio The proprietors share in the total assets of the business accounts for three fourths of the total assets in the year which is a positive sign.
Proprietory Ratio Trend
1.00 0.90 0.80 Proprietory Ratio 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2010-11 2011-12 2012-13 2013-14 2014-15 Year
SWOT Analysis
SWOT refers to “Strengths, Weaknesses, Opportunities and Threats.” Where strength and weakness are internal and are within the control of the business while opportunity and threat are external and are outside the control of the business.
A SWOT analysis is useful to determine internal characteristics of business and to improve upon the same. To grab the lucrative opportunities existing in the external environment and to overcome the threats to your business, if any. SWOT analysis for our business will be as follows:-
Strengths:
? Location:
Our school will be situated at commerce six roads which is both residential as well as commercial area. Besides Navrangpura is the area where most of the colleges of Ahmedabad are located so it will provide us proximity to our target customers. Apart from this the transportation facility is also robust here.
? Human capital:
Qualified and dedicated staff is strength of ours. We will create a kind of work environment that will keep them motivated and give their best in service delivering process.
Weaknesses:
? Constraint of resources:
Being a new entrant in this field our business currently exists at single place only due to constraint of resources most important of them is finance which is the backing for acquiring other resources like LCDs, computers, benches, etc. Currently, we do not have any other branch or franchise. This can act as a major constraint for us.
Opportunities:
? Expansion:
Once we get established in the market and achieve brand reputation, we would like to expand our business by opening new branches of our school as this business has high potential to grow due to increasing demand for the well polished professionals with fluency in English in the industry.
Threats:
? Competitors:
Our competitors already existing in this business like Makeover finishing school and other personality development schools like IGEM, Oxford etc will be acting as a major threat to our business but we will try our best to withstand this threat by distinguishing our services from our competitors’ services.
Vision
? An aggregate commitment towards quality through technical and professional perfection. ? To provide comprehensive value for money to our customers and bring customer satisfaction. ? An aggregate commitment and dedication towards training perfection. ? To keep pace with changing customer perception.
Objectives
Short term objectives:
? To create customer awareness regarding our services. ? To maximize the profitability.
Long term objectives:
? To maximize the market share. ? To become market leader in this field.
Conclusion
Our feasibility project on ESTABLISHING A FINISHING SCHOOL has had an effect on us which transgresses beyond mere analysis of relevant factors. It has been an experience which has enlightened and enabled us to be better in terms of our pool of knowledge. We truly felt that we know and understand things better than we used to yesterday as far as this industry is concerned. Considering that we had a change of topic midway due to justifiable reasons, we were hard-pressed for time but we took it as a challenge and it helped all of us to give it our best shot in the time given which also taught us important lessons in time management, multi-tasking, understanding group dynamics and to unlock the otherwise esoteric lock of financial feasibility which we would always cherish in our life—the times we felt utterly petrified and confounded when we couldn’t get our figures right and suddenly had an EUREKA MOMENT when we finally sorted out the numerical. Finally, the result of this feasibility project is ? It is feasible with profits surging every year. All the factors considered for evaluation yielded highly positive results. ? As far as the financial aspects are considered, the profitability shows a continuous upward trend. ? Also the initial investment is also very negligible, so the risk factor is low. ? Expansion plans can be met with the help of external finance in future. The financial credibility of the firm is high. We would consider owning our own premises in 7-10 years time. ? As far as the survey was considered, we found that the no. of students interested in joining the school is much more than those of the ladies and corporate executives. We would have to address this concern by targeting our marketing efforts at them in a much more convincing way. Also the professionalism required in the process of service delivery is high which might create problems in finding the experts required for tutorship. But considering the criteria we adopt for recruitment, we are bound to overcome it. At last we would like to conclude by summing up in this way:
“IT IS GOOD TO HAVE AN END TOWARDS A JOURNEY; BUT IT IS THE JOURNEY THAT MATTERS IN THE END.”
BIBLIOGRAPHY & WEBOGRAPHY
BIBLIOGRAPHY
MARKETING MANAGEMENT BY PHILIP KOTLER SERVICE SECTOR MANAGEMENT – AN INDIAN PERSPECTIVE BY C. BHATTACHARJEE
WEBOGRAPHY
WWW.GOOGLE.COM. WWW.QUICKMBA.COM WWW.WIKIPEDIA.ORG
doc_626509700.docx
A finishing school (or charm school) is a school for young women that focuses on teaching social skills and cultural norms as a preparation for entry into adult society.
Name of the Institute Location
NUMERO UNO 4th Floor Swapnil Complex, Commerce six roads, Navrangpura, Ahmedabad – 380 009
Nature of Industry Date of Incorporation Cost of Project Means of Finance
Education 1st April, 2010 Rs.12,50,000 Rs.12,50,000 [To be equally contributed by the 10 partners]
Payback Period Average Rate of Return Internal Rate of Return
1.23 years 57% 87.54%
We have been assigned the Project on Finishing School wherein we have mainly focused on three groups as our target segments: 1. Students 2. Corporate executives 3. Housewives In the context of Gujarat, we think the scope for the growth of our business is high due to following reasons:
1. It is considered that the level of English in Gujarat is comparatively low due to influence of vernacular language specially Gujarati. The result of our market survey also reflects the same scenario that the majority of the respondents prefer to join the finishing school to get fluency in English. This aspect can be taken as important opportunity for our business. 2. Due to increasing professionalization of corporate enterprises, demand for well groomed professionals is increasing .To survive in such competitive scenario people are moving to such institutes which help them in grooming their personality and also in bringing best in them by giving their personality a complete touch. 3. In Gujarat the competition level in this field being low there is a high growth opportunity available for us. 4. We will survive and expand our business by providing best qualitative services to our customers and by maximizing their satisfaction.
? Our Finishing School, Numero Uno will constantly update its market knowledge so as to cater to the changing aspirations of our customers by providing such services as would become the paradigm of excellence for others in the same industry. ? In future we would like to expand our business by opening more branches of our school at various locations. And we are also thinking of having tie-ups with corporate.
A feasibility study looks at the viability of an idea with an emphasis on identifying potential problems and attempts to answer one main question: Will the idea work and should you proceed with it? Before you begin writing your business plan you need to identify how, where, and to whom you intend to sell a service or product. You also need to assess your competition and figure out how much money you need to start your business and keep it running until it is established. Feasibility studies address things like where and how the business will operate. They provide in-depth details about the business to determine if and how it can succeed, and serve as a valuable tool for developing a winning business plan.
WHY ARE FEASIBILITY STUDIES SO IMPORTANT?
The information you gather and present in your feasibility study will help you: ? List in detail all the things you need to make the business work; ? Identify logistical and other business-related problems and solutions; ? Develop marketing strategies to convince a bank or investor that your business is worth considering as an investment; and ? Serve as a solid foundation for developing your business plan. Even if you have a great business idea you still have to find a cost-effective way to market and sell your products and services. This is especially important for store-front retail businesses where location could make or break your business. For example, most commercial space leases place restrictions on businesses that can have a dramatic impact on income. A lease may limit business hours/days, parking spaces, restrict the product or service you can offer, and in some cases, even limit the number of customers a business can receive each day.
COMPONENTS OF FEASIBILITY STUDY
? ? ? ? ?
LEGAL FEASIBILITY TECHNICAL FEASIBILITY HUMAN RESOURCE FEASIBILITY MARKET FEASIBILITY FINANCIAL FEASIBILITY
LEGAL FEASIBILITY
To define the legal and corporate structure of the business. A Legal Feasibility Study may also include professional background information about the founders and principals of the business and what skills they can contribute to the business. Legal feasibility study should include:
? ? ?
Description of Your Business Structure Description of Your Organizational Structure Internal and External Principles and Practices of the Business
TECHNICAL FEASIBILITY
The Technical Feasibility Study assesses the details of how you will deliver a product or service (i.e., materials, labour, transportation, where your business will be located, technology needed, etc.). Think of the technical feasibility study as the logistical or tactical plan of how your business will produce, store, deliver, and track its products or services. A technical feasibility study is an excellent tool for trouble-shooting and long-term planning. In some regards it serves as a flow chart of how your products and services evolve and move through your business to physically reach your market.
HUMAN RESOURCE FEASIBILITY
It deals with the recruitment and selection of the proper kind of personnel in the various departments and also coming up with the ways of training, developing and retaining them by provision of various incentives and perks relevant to their needs and requirements.
MARKETING FEASIBILITY
All feasibility studies should look at how things work, if they will work, and identify potential problems. Feasibility studies are done on ideas, campaigns, products, processes, and entire businesses. Feasibility studies assess something and consider both pros and cons. They analyze potential business scenarios. A Marketing Plan maps out specific ideas, strategies, and campaigns based on feasibility study investigations that are intended to be implemented. Think of market feasibility studies as a logistical study and a marketing plan as a specific, planned course of action to take. What should be Included in a Market Feasibility Study? Things to Include in a market feasibility study include:
? ? ? ? ? ?
Description of the Industry Current Market Analysis Competition Anticipated Future Market Potential Potential Buyers and Sources of Revenues Sales Projections
FINANCIAL FEASIBILITY
A financial feasibility study projects how much start-up capital is needed, sources of capital, returns on investment, and other financial considerations. It looks at how much cash is needed, where it will come from, and how it will be spent. A financial feasibility study is an assessment of the financial aspects of something. If this case, for starting and running a business. It considers many things including start-up capital, expenses, revenues, and investor income and disbursements. Other portions of a complete feasibility study will also contribute data to your basic financial study. A financial feasibility study can focus on one particular project or area, or on a group of projects (such as advertising campaigns).
A service is any act or benefit that one party can offer to another that is essentially intangible and does not result into ownership of anything.
No
1
Characteristics
Intangibility
Marketing Implications
? No storage ? No ready display ? Communication problem ? Pricing difficulties
Strategies
? Tangible clues like documentation ? Personal sources ? Word of Mouth ? Organizational image ? Post purchase communication ? Selection & training contact person ? Manage consumers ? Multi-site location ? ? ? ? ? Service blue-print Training Internal External Customer satisfaction survey ? Staff monitoring ? Complementary service ? Reservation system ? Part time employees during peak time ? Future expansion ? Complementary services of
2
Inseparability
? Consumer Involvement in production ? Personal Selling ? Demand-Supply Match ? Difficulty in standardization ? Difficulty in Quality control
3
Variability
4
Perishability
? No inventorisation
A Finishing School: Defined
A finishing school is the final polish to your education to make you an all-rounder with a good personality, grooming, excellent personal etiquette and dress sense. A well groomed person with a pleasant personality stands out in a crowd and has a higher chance of ready acceptance in any setting - be it the job market, family environment or peer group.
Need for a Finishing School
None of us can truthfully say that we are perfect and have nothing more to learn. Life is a school with live experiences. At our finishing school we give you the accumulated wisdom of our faculty to help you move up in your life. There are two ways to learn one by making mistakes and the other by learning before you make the mistakes. We believe that we can make a difference in your life by helping you move upward towards your goals and ambitions.
Grooming in a Finishing School
You learn the art of conversation, the quietly elegant as well as the flamboyant style of dress and grooming, the art of conversation, managing to live within your income, tips on saving and investment, handling aggressive behaviour with calm and poise and to manage your time effectively. This is only an outline of things and each specific need has a programme to handle it.
The ways of learning in a Finishing School
Our programmes are FUN and learning has never been so easy. Practical learning always makes for more effective retention and we follow this approach in all areas of our programmes. Studies about learning methodology reveal that kinesthetic, visual and auditory learning has a better appeal and makes for better understanding. Our course modules are developed keeping these principles in mind.
Age no bar for a Finishing School student
A person can enrol in our finishing school at any age between 7 and 70. We believe that there are no barriers to learning. Our primary programmes are aimed at the segment seeking employment immediately or in the near future. These short-term courses help you enhance your basic knowledge and skill and give you additional inputs to make you stand out in the crowd. Programmes for children, teenagers, parents, brides and grooms and the retired person are also available in our finishing school.
Switzerland is known for its private finishing schools, such as Institut Villa Pierrefeu or Institut Alpin Videmanette (now closed), where Diana, Princess of Wales studied, and Mon Fertile, where Camilla, Duchess of Cornwall was partly educated. The finishing school that made Switzerland renowned for such institutions was the Institut Villa Mont Choisi, founded in the 1870s, which closed in 1995/6. Other notable schools included Institut Chateau Beau-Cedre which closed in 2002. The term finishing school is occasionally used in American parlance to refer to certain small women's colleges, primarily on the East Coast, that were known for serving to prepare their female students for marriage. Since the 1960s, many of these schools have become defunct as a result of financial difficulties stemming from parents' decreased interest in paying for such an education for their daughters.
Finishing School is a supplementary training school popular in India that attempts to make-up for deficiencies of low-tier colleges by providing specialized vocational training in technical fields such as computer programming and information technology. The recent boom in the Indian Economy has further enhanced the need for such finishing schools. These IT finishing schools cover technical skills as well as communication and problem solving skills. The biggest advantage of these finishing schools is that these schools cut down the "deployable time" for a company. Other finishing schools attempt to make up for deficiencies in the Indian secondary education system with regards to math and science education and bring the student up to the level necessary for attending university and gaining admission. For instance, it is not uncommon for Indian students to spend an entire 1 to 2 years studying in a tutorial cram school after secondary education to gain entrance into a top Medical or Engineering school. Western Countries are often flooded by extremely over-prepared and well networked Indian students, to the point of putting their own students at a disadvantage to their own rule and merit based college entrance and scholarship award systems where cram schools are virtually unknown, particular in Engineering and Medicine, areas which the Indian cram school focus on.
WELL KNOWN FINISHING SCHOOLS IN INDIA
? ? ? ? ? ? ? ? ? PRIYA WARRICK FINISHING SCHOOL, NEW DELHI WALCHAND DALE CARNEGIE FINISHING SCHOOL, BANGALORE GOOD SHEPHERD FINISHING SCHOOL, OOTY ECOLE SOLITAIRE, PUNE MODERN DAY FINISHING SCHOOL, MUMBAI SWISS PERSONA FINISHING SCHOOL, NEW DELHI ANOORADHA PATEL’S FI NISHING SCHOOL, MUMBAI RIGHT STEP FINISHING SCHOOL, CHENNAI MAKEOVER FINISHING SCHOOL, AHMEDABAD
A scan of the external macro-environment in which the firm operates can be expressed in terms of the following factors:
? ? ? ?
Political Economic Social Technological
The acronym PEST (or sometimes rearranged as "STEP") is used to describe a framework for the analysis of these macro environmental factors. A PEST analysis fits into an overall environmental scan as shown in the following diagram:
Environmental Scan / External Analysis / Macro environment | P.E.S.T. \ Micro environment \ Internal Analysis
Political Factors
Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include:
? ? ? ? ?
Tax policy Employment laws Environmental regulations Trade restrictions and tariffs Political stability
Our concept of finishing school does not require an in depth analysis of political environment as there are not any specific laws which restrict the entry or growth of this sector. We can say that the political conditions are not a deterrent enormous enough to consider deeply.
Economic Factors
Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macro economy:
? ? ? ?
Economic Growth Interest Rates Exchange Rates Inflation Rate
These are important criteria which are to be considered relevant. The most important one is the inflation rate which if blown up considerably might make the demand for this sector somewhat hazy making people curb this expenditure considerably. Even the interest rates would not be much above the teaser rate if we consider expansion through loans in the next 2-3 years. Projected Growth rate of 8-9% would boost the service sector economy amiably as a whole.
Social Factors
Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets. Some social factors include:
? ? ? ?
Health Consciousness Population Growth Rate Age Distribution Career Attitudes
?
Emphasis on Safety
Considering the dynamic young population of Ahmedabad which aspires to reach new heights in their career find that nothing stops them from achieving success
Technological Factors
Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:
? ? ? ?
R&D Activity Automation Technology Incentives Rate of Technological Change
We have tried to cater to the technological demand of the customers by including computer courses. Being a part of Generation Y we need to be technological savy.
External Opportunities and Threats
The PEST factors combined with external micro environmental factors can be classified as opportunities and threats in a SWOT analysis.
DATE & TIME:
This agreement of partnership deed executed on 1st April, 2010.
Name & Address of Partners NAME
Priyanka Yadav
ADDRESS
44, Swaraj society, Stadium Road, Motera, Sabarmati, Ahmedabad-5 G-1, Shaligram Flats, Nehrupark, Vastrapur, Ahmedabad. 1054, Jivan Pole, Panchpatti, Kalupur, Ahmedabad -1. 1639/2, Lal pole, Dariyapur, Ahmedabad-1. 1871, Dhantura pole, Dariyapur, Ahmedabad-1 11, Theosophical Society, Vijay Cross Roads, Navrangpura, Ahmedabad – 9. 7, Shiv Society, Naranpura, Ahmedabad. 15, Sanjay Society, Part -1, Shahibaug Road, Ahmedabad – 4. At:Kavitha, Ahmedabad. Taluka:Bavla, District
Saumya Iyer
Aakib Laliwala
Yogesh Padhiyar Krupesh Soni
Bhumi Prajapati
Ami Kothari Ankit Sharma Kuldeep Rathod Pradip Chaudhari
4, Rupnagar Society, Vijay Cross Roads, Navrangpura, Ahmedabad – 9.
Preamble
We, the above partners have come together to carry on the business of finishing school as from 1st April, 2010 and the terms and conditions of the partnership agreed upon are hereby in writing.
A] NAME
The business of the firm will be carried on under the name “Numero Uno”. However the partners shall be entitled to change the name of the firm as agreed upon.
B] BUSINESS OF PARTNERSHIP
The business of the firm will be to provide training that results into development & grooming of one’s overall personality and makes him marketable in this cut -throat competitive market.
C] DATE OF COMMENCEMENT
The date of commencement of partnership is 1st April,2010.
D] PLACE OF BUSINESS
The principal place of the business of the firm will be at Address:-2nd Floor, Swapnil Complex, Commerce six roads, Navrangpura, Ahmedabad-09 but the partners will have liberty to shift it to any other place or places and to open branch or branches at any other place or places as may be agreed upon.
E] DURATION
It is not fixed. It is the form of “Partnership at Will”.
F] CAPITAL
The initial capital of the firm will be Rs.12,50,000 equally contributed by all 10 partners.
G] DRAWINGS
Drawings can be made by the partners as many times as he wish in the year taking into account the respective accounts.
H] INTEREST
We will be giving the interest of 5% on capital and we will be charging the interest of 6% on drawings.
I] SHARE IN PROFIT OR LOSS
Profit or loss of the firm will be shared equally among all the partners.
J] BORROWINGS POWER
The firm shall be entitled to secure deposits, borrow money & seek loans from any banks and corporate & non-corporate bodies and financial institutions. Firm can also take loan from the partners.
K] ACCOUNTS
The books of accounts of the firm will be closed once in a year preferably from April 1 to March 31.
L] BANK ACCOUNTS
That the bank account of the firm will be maintained in SBI, Navrangpura branch in the name of the firm which 2 of the working partners would be entitled to handle as agreed by all the partners. They shall be authorized to avail all type of facilities in the name of the firm that are generally allocated by the banks. They are authorized to appoint any person to operate bank accounts of the firm by way of Power of Attorney.
M] DISSOLUTION
Death and disability or retirement of any partner(s) will not result into dissolution of the partnership; the remaining partners will be entitled to carry on the partnership with or without taking the nominee(s) of the deceased or disabled partner(s).
N] DEATH OR DISABILITTY
In case of death or disability of any partner(s), the nominee(s) of such partner shall be taken into the partnership. The partners are free to change the aforesaid nominee(s) from time to time by notifying the same to other partner.
P] MODIFICATIONS
The partners will be entitled to modify above specified terms of the partnership related to interest, remuneration etc by executing the supplementary partnership deed and the modified deed will be applicable from the first day of the accounting year in which it is executed.
Q] RIGHTS & DUTIES OF THE PARTNERS RIGHTS OF THE PARTNERS
*Each & every partner has a right to take part in day to day activities of firm *Each & every partner has a right to inspect books of account of the firm *Each and every partner has a right to express his opinion.
DUTIES OF THE PARTNERS
*Each and every partner is liable to deal honestly in the business of the firm *Each and every partner is liable to work hard & with dedication to achieve the common goal of the firm *Each and every partner is liable to make sure that assets of the firm will be protected & will be used in productive manner. *Each and every partner is liable to indemnify the firm in case any loss occurs to the firm due to his misconduct. *No partner is allowed to transfer hie interest in the firm without the common consent of other partners.
*Each and every partner has a right to have share in the profit of the firm *Each and every partner has a right to receive interest on the loan and capital contribution made to the firm. *Each and every partner has a right to be indemnified by the firm
R] ARBITRATION
That any dispute arising among the partners during the continuation of the partnership will be referred to the arbitration. For that the provisions of “Indian Arbitration Act, 1940” will be applicable.
S] AMENDMENTS & ALTERATION
That the partners will by mutual or oral agreement is at a liberty to amend, alter, vary or add to the aforementioned terms and conditions. We hereby, after hearing all the terms and conditions of the partnership put our hands to this deed on the said date, month, year.
FORM ‘H’ (See rule 17) CERTIFICATE OF REGISTRATION THE INDIAN PARTNERSHIP ACT, 1932 (Act No. IX of 1932)
Registration No. 237/GUJ/AMD32 It is certified that a firm by name NUMERO UNO with its head office at 2ndFLOOR, SWAPNIL COMPLEX, COMMERCE SIX ROADS, AHMEDABAD-380009 has this day been duly registered under the Indian Partnership Act,1932 (Act No. IX of 1932)
Give under my hand this day of 15/03/2010 Registrar/Assistant Registrar of Firms Ahmedabad
7 P’s of Service Marketing Product Price
Place Promotion
People
Physical Evidence
Process
? Service Product level chart
Potential Product Augmented Product Expected Product Basic Product
Core Benefit
No.
Level
Core benefit Basic product
Service Offers
? Personality development ? Qualitative teaching competent faculties ? Lucid Study materials library &lab facility ? ? ? ? ? ? ? ? ? ? ? ? ? Good infrastructure Regular classes Good interior & exterior Competent faculties Individual attention Cultural activity celebration Well equipped Library & Lab Video-conferencing Ergonomics & aesthetic arrangements Indoor games Health & meditation facilities Personal coaches Better life & career opportunity by With
1 2
3
Expected product
4
Augmented product
5
Potential product
Model of “Service level”
• Core service • Facilitating service Level-1 Basic service • Supporting service
package
Level-2 Augmented service
• Accessibility of service • Interaction • Customer participation
Level-3 Marketing Communication
• Corporate Image • Word of mouth • Marketing communication
Level-1 Basic Service Package Elements:
? Core Service:
It is the prime service which service provider exists to provide for. In our case it the “Development of Personality”. is
? Facilitating Service:
They are mandatory for the delivery of service without them the entire service process will collapse. e.g. Faculty, Infrastructure, Furniture, Stationery, Electricity, study material.
? Supporting Service:
They make value-addition to the core service. e.g. Library, computer lab.
Service Packages
Our main target segment will be students, corporate executives and Housewives. Accordingly we have designed individual training package for each segment along with two special packages meant for Spoken English and the other is crash courses of 5, 10, and 15 days.
Package for Students
Fees: Rs.5, 000 Duration: 3 months Timings: Morning: 8:00 - 9:30
Noon: 3:30 - 5:00 Evening: 6:00 - 8:30
Days: 3 Days in a Week Batch-1: Monday, Wednesday, Friday Batch-2: Tuesday, Thursday, Saturday
Level-1 Elementary level
Concept of language Usage & grammar Parts of speech Sentence formation skills Dialogue session Creative & simple terminology Soft-skill development Different usage of action words Questioning skills Messaging skills
Level-2 Advanced level
Ideal Introduction Self-Confidence & Perfection Session Listening Module Vocabulary & Pronunciation Session Preparing Impressive CVs Manners: Request, Offer Permission Art of Thanking People Telephonic Etiquette Group Discussion & Personal Interview Session Expressing opinions, views News session Effective speech session
Package for Corporate Executives Level-A
Fees: Rs.7, 000 Duration: 3 months Timings: Morning: 8:00-9:30
Evening: 6:00-8:30
Days: Monday, Wednesday, Friday Communication Skills
Business Communication Verbal and Non Verbal Communication Active Listening Behavioral & Telephonic Skills
Behavior Traits
Body Language Tone Presenting yourself Positive Attitude Confidence Building
Etiquette
Telephone and e-mail Etiquette Mannerism Art of Dressing Conversational Styles
Change Management
Understanding Change Causes of Change Resistance to Change Acceptance of Change
Presentation Skills Public Speaking Presentation by Participants Role Plays
Level-B
Fees: Rs.9, 000 Duration: 3 months Timings: Morning 10:00-11:30
Evening 7:30-9:00 Days: Tuesday, Thursday, Saturday
Creativity
Brainstorming Session Role Plays Small Projects
Time Management
Maintaining Time Log Prioritization to Works Art of Delegation Desk & Paper Management
Leadership
Leadership Styles Dos of Effective Leadership Perception for Leadership Leadership by Delegation
Team-Work
“We feeling” Factors Blocking & Contributing Team-Work Stages of Team development
Conflict Management
Techniques Practical Cases
Stress Management Goal Setting Presentations and Role Plays Video Films Management Games Case Studies
Package for Housewives known as “Be a perfect lady”
Fees: Rs.4, 500 Duration: 3 months Timings: Noon:-4:00-5:00 Days: Monday, Wednesday, Friday Level-1
Personality Development Confidence Building Social etiquette: Walking, Talking, Sitting Dinning Etiquette Developing Conversational Skill Improving Body Language, Gestures & Postures Personal Counseling Making your Importance felt in your family
Level-2
Art of entertaining guest in Hotel & Home Accompanying Husband to the Business Party Understanding Man – Woman Relationship Advanced Dinning Etiquette Home Management Beverages: Cocktail & Mock tail Preparation Developing Styles Special Sessions on Make-up, Hair style, &Art of dressing
Package for Spoken English
Level & Fees:
Basic Level Rs.4, 000 Intermediate Level Rs.5, 000 Advanced Level Rs.7, 500
Duration: 3 Months Timings:
Basic Level Morning: 8:00-9:30 Intermediate Level Noon: 4:00-5:30 Advanced Level Evening: 6:30-8:00
Days:
Batch-1: Monday, Wednesday, Friday Batch-2: Tuesday, Thursday, Saturday
Package for Computer course
Fees:
Ms-Office: Rs.4, 000 Tally : Rs.5, 000
Duration: 3 Months Timings: Noon: 3:00-4:30
Days:
Ms-office: Monday, Wednesday, Friday Tally: Tuesday, Thursday, Saturday
Crash Courses
Duration &Fees:
5 Days: Rs.1500 10 Days: Rs.3000 15 Days: Rs.4500
Level-2 Augmented service
At this level marketer tangibalize the intangibles & gives customer various clues to judge service quality & to make purchase decision.
Elements: Accessibility of Service:
It can be accessed on the basis of following evidences. ? Number & Skills of Employees ? Working hours & time used in performing various task ? Location of service outlet ? Exterior & interior of service outlet ? Knowledge of customers involved
Interaction: It mainly talks about3 type of interactions.
? Employees - Customers ? Customers - Physical & Technical resources ? Customers – Customers
Customer Participation:
It mainly depends on the followings. ? Awareness of customer about service-delivery & his role ? Preparedness of customer for sharing information ? How well customer shares information & uses service equipments
Level-3 Marketing communication of service
It makes those customers who are outside the service outlet aware of the service offer.
Elements: Corporate Image:
? Favorable Image helps in Increasing marketing of service ? Bad image affects its reputation
Word of Mouth:
? It is informal form of communication. ? Helps in making prospective customers aware of service quality.
Marketing Communication:
? It includes communication through various media like Leaflets, Brochures, and Hoardings/Displays.
Service Features
Competent & excellent faculties
Authentic study materials
Spacious & comfortable ambience
Well equipped library
Computer lab
Student resource centre
Competition & rewards
Price refers to “Value for money”. In our case Price refers to the course fees. Taking into account all the factors stated below we have determined most competitive price for our training packages. Price = Quantity of money received by service provider Quantity of service received by the customer
Pricing Methodology:
Our Pricing strategy is based upon “Going rate pricing method”. We have decided the fees structure for various training package which is nearer to the fees charged by our rivals so as to compete with them.
Pricing Objectives
Primary Objective:
Being new entrant in this industry the primary objective of our pricing strategy is Survival and profit maximization.
Secondary Objective:
Once we get established in the market and achieve brand reputation then we would like to maximize our market share by opening new branches of our school and also by developing web portal to provide our services.
Fees structure
Package For Students For Corporate executives Level-A Level-B For Housewives Spoken English Basic Intermediate Advanced Computer course Ms-office Tally Crash courses 5 days 10 days 15 days Fees (Rs.) 5,000 7,000 9,000 4,500 4,000 5,000 7,500 4,000 5,000 1,500 3,000 4,500
Factors Influencing Price
Our fees structure is based upon the factors like, the prime objective of business that is of survival, cost structure, estimated demand, and possible reactions from competitors so that our costs can be covered as well as we can earn the profit also.
Place refers to the physical existence of the service outlet where the customers will come into the direct inter course of the service provider and where services will be delivered by the service provider and received by the customers. Our Finishing school will be situated in the heart of the city.
Address: 2nd Floor, Swapnil Complex,
Commerce six roads, Navrangpura, Ahmedabad-380 009
Location Analysis
Reasons for selecting the Location:
We have hired the place on rent of Rs.45 per sq ft. The reasons for selecting this place are as follows.
? Proximity to Customers:
Navrangpura is considered to be both commercial as well as residential area. There are many colleges situated in this area o we will easily get access to our target segments.
? Transportation Facility:
This area has well developed transportation facility with easy and speedy access to various means of transportation like buses, auto-rickshaws etc.
? Diverse income Groups:
This area is considered to be economically developed area we can have access to the customers belonging to diverse income group.
? Better Infrastructure & Low Cost:
The infrastructure like access to transportation, energy, lift facility, communication facility is also very good. Rent is also reasonable compare to construction cost of the school in that context it has been selective option to hire the place in this location.
Characteristics of Service Outlet
Flexibility in Production
Flexibility in Consumption
Flexibility in Consumption Flexibility in Production
High Low
? Flexibility in consumption:
Availability of different timeslots to our customers will make the consumption flexible for them.
? Flexibility in production:
It will be low at the initial level as there are no other branches or franchises of our school so there will be only single place for delivering our services. Once we get established in the market, we are thinking of expanding our business by opening new branches of our school and also by developing web portal to provide our services.
The success of any new business entity depends on how well it has been able to create awareness about its products or services in its target segment so as to induce its consumption by customers. Promotion policy of business plays major role in this. Major means of promotion to be used by us are:
Advertisement: ? Newspaper
It will be the major mean of advertisement for our finishing school. We will be giving advertisement in, The Times Of India and in Gujarat Samachar.
? Leaflets with newspapers
This will be the second mean of advertisement to be used by us wherein the leaflets of our finishing school will be attached with the newspapers.
? Hoardings
We will be hiring the place like Vijay cross road, and Vastrapur for placing our hoardings.
It refers to the managing both internal customers that is the human capital of business involved in the service delivering process and external customers those who will actually consume the services.
External Custom ers Internal Custom ers
PEOPLE
Managing Internal Customers Elements: (1)Recruitment & selection:
We will be giving recruitment advertisement for faculties, receptionist and peon in The Times of India and Gujarat Samachar
. (2)Motivation:
The employees will be provided with following monetary and non-monetary benefits like bonus, picnic, and celebration of cultural activities, awards and certificates. Besides we will also follow suggestion box scheme.
(3)Team work:-
It is the team spirit on the part of the employees which is behind the success of any business entity. The culture of our organization will be such that will help in imbibing this spirit in our employees to provide qualitative service to customers. We will be having a meeting twice in a month to discuss important issues of business.
(4)Customer education:It is necessary for the employees of the organization to know who their customers are, what are their requirements and accordingly deliver the services to give them maximum satisfaction. In our case the major role in service delivering process will be played by counselors and faculties. We will create a kind of environment that updates them about the changing customer requirements continuously like by way of “Feedback Form” to be filled by our customers who have already availed our services and asking for their suggestion for further improvements.
No. of Employees: 12 Official Working Hours: 9:00am-9:00pm Designation Centre Head Counselors Faculty Receptionist Peon Sweeper No. of employees 1 2 Full time = 4 Visiting = 2 1 1 1 Working hours 10:00am - 8:00pm 10:00am - 8:00pm As per batch hours 10:00am - 6:00pm 9:00am - 9:00pm 9:00am - 11:00am 3:00pm - 5:00pm
Managing External Customers Elements: Characteristic of external customers influencing the Service Provider:
Demographic factors like Education and family background, Occupation, Income, attitude & aptitude, involvement of customer in the service delivering process, experience of customers, awareness & perception has direct influence on the service provider.
Awareness, Training & Education of customers:
The prime work on our part will be to make potential customers aware of our services by using various media like newspapers, hoardings, leaflets etc. Once they approach to our school for inquiry, this task will be handled by our counselors to create in them for joining school and once they join the school then responsibility of their training will be shouldered by our competent faculties.
Services being intangible it is difficult to touch, and judge them so it becomes necessary for marketer to tangibalize the intangible so as to provide customers with various clues to make purchase decision. This task is performed by physical evidence. The physical evidences for our services will be as follows:-
Name: “Numero Uno” Logo:
Punch Line: THE ULTIMATE FINISHING SCHOOL
Plant Layout: 4,500 sq ft
Business cards & brochure:
Performance Report:
We will be maintaining the performance report of our business on year to year basis. This will enable us in appraising our performance on the basis of certain criteria’s like profitability, revenue, cost etc. Besides the annual performance report of trainees will be maintained for comparative study this will act as a clue for our potential customers for taking decision.
Equipments:
LCDs, computers, audio-video materials, Library, computer lab will act as a physical evidence.
Our Service delivery process will be as follows:Entry
Inquiry about the courses offered
Customers can be Students, Corporate executives or housewives
Is he interested in joining school? c
Follow up & ask the reasons for not joining
Exit End
Admission Process (Collection of fees and advancing receipts)
Training/Teaching End
Evaluation at the end of the course End
Awards and Certificate to them who successfully complete the course
Exit
STEPS
Defining Problem & research objectives
Develop research plan
Collect Information
Make decision
Present Findings
Analysis of information
(1)Define the Problem & Research Objectives:
Market research is undertaken to achieve particular objectives by acquiring necessary information. The prime objective of our research is to find out scope and feasibility for establishing Finishing School in Ahmedabad.
Other Objectives:
? To get the information regarding the number of finishing schools existing in the Ahmedabad. ? To find awareness level of people regarding finishing school. ? To find the potential market for new finishing school. ? To find out process of establishing new finishing school. ? To determine the competitive fees structure to attract maximum customers.
(2)Develop Research Plan:
Sources of data:
Primary data:
It is the first hand information collected by the researcher for its research purpose. For us primary sources of data collection were ? Visit of various Finishing schools ? People:-We have surveyed 1000 people of Ahmedabad for this purpose.
Secondary data:
The data collected from external sources where it was already existing for research purpose is known as secondary data like from Newspapers, Magazines, Internet etc.
Data collection method
Research approach:-“Survey Approach” Research instrument:-Questionnaires for consumers
Sampling Plan:
It mainly contains following 3 components.
(1)Sample unit:
It represents the target population for the survey. We mainly targeted students, corporate executives, and housewives living in Ahmedabad.
(2)Sample size:
The survey was of 1000 respondents (Male & Female) of Ahmedabad city. We bifurcated them based upon their income level and occupation to make sample more representative of population.
(3)Sampling Procedure:
? Convenience Method: We have surveyed conveniently accessible respondents like students of various schools and colleges of Ahmedabad and corporate executives and housewives residing I our nearby area. ? Contact Method: We contacted each respondent individually and extracted information from them.
(3)Collect the information:
It is the most time consuming and expensive phase for any market research. In this survey we faced following problems. ? Non availability of respondents. ? Biased and wrong answers by respondents. ? Some respondents were not ready to give information about their financial position. We worked hard to collect all possible information so as to get the idea about the true market scenario.
(4)Analysis of Information:
Now, in this stage collected data is tabulated and analysed on the basis of some criteria.
(5)Present Finding:
We have presented our findings in the form of following charts.
GENDER WISE DISTRIBUTION OF REPONDENTS
Male Female Total
574 426 1000
57% 43% 100
Gender wise distribution of Respondents
43%
57%
Male Female
The above chart shows the respondents who were surveyed. From the above chart we can analyze that more than half of the respondents (about 58%) were male. The female constitutes about 43% out of the respondents who were surveyed.
OCCUPATION WISE DISTRIBUTION OF RESPONDENTS
Occupation Student Service Class Persons Business Person Housewife Retired Total
No. of Respondents 519 284 126 52 19 1000
No. of Respondents (%) 52 28 13 5 2 100
Occupation Wise Distribution of Respondents
60% 50% Respondents(%) 40% 30% 20% 10% 0% Student Service Class Business Person Housewife Retired 28% 13% 5% 2% 52%
Occupation
The above chart represents occupation-wise distribution of respondents. We can analyze that majority of the respondents were students (52%), followed by service class persons (28%), business persons (13%), as they are the main target segment for our finishing school. The number of housewives and retired persons surveyed constitute 7% of total respondents.
FAMILY INCOME (MONTHLY)
Income Level (In Rs.) Below 20,000 20,000-40,000 40,000-60,000 Above 60,000 Total No. of Respondents No. of Respondents (In %) 42 35 13 10 100
423 347 134 96 1000
Distribution of respondents as per Income
10% 13% 42% Below 20,000 20,000-40,000 35% 40,000-60,000 Above 60,000
This chart represents that majority of the respondents belong to the income group of below 20,000 (42%), followed by income group Rs. 20,000-40,000 (35%), Rs. 40,00060,000 (13%). The number of respondents belonging to the income group of Above Rs. 60,000 is very few approximately (10%).
EDUCATIONAL QUALIFICATION
Educational Qualification 10th or 12th Undergraduate Graduate Post Graduate Total No. of Respondents 84 412 349 155 1000 No of Respondents (In %) 8 41 35 16 100
Distribution of respondents as per Educational Qualification
45% 40% 35% Respondents 30% 25% 20% 15% 10% 5% 0% 10th or 12th Undergraduate Graduate Post Graduate Educational Qualification 8% 16% 10th or 12th Undergraduate Graduate Post Graduate 41% 35%
This chart represents that majority of the respondents approx. (41%) were undergraduates as the large portion of the sample was composed of the students, followed by graduates (35%) and post graduates (16%). The numbers of respondents belonging to Std. 10th or 12th were very few approx. (8%).
Whether personality can be developed or not
Strongly Agree Agree Neutral Disagree Strongly Disagree Total 352 307 179 109 53 1000 35% 31% 18% 11% 5% 100
Whether personality can be developed or not
Disagree 11%
Strongly Disagree 5%
Strongly Agree Strongly Agree 35% Agree Neutral Disagree
Neutral 18% Agree 31%
Strongly Disagree
Majority of the respondents agreed i.e. 66% that yes personality can be developed. There were some respondents who were neutral (18%) on the question. Around 16% of the respondents were of the opinion that personality can’t be developed.
Awareness about Finishing School
Yes No 437 563 44% 56%
Awareness about Finishing School
Yes Yes 44% No
No 56%
From the above chart we can analyze that more than half of the respondents (56%) were unaware about the Finishing School. Around 44% of the respondents were aware about the Finishing School. The reasons for unawareness can be attributed to lack of large scale advertisement of finishing schools in the city.
SOURCES OF AWARENESS
Sources Magazine Radio Internet Word of Mouth Hoarding Newspaper No of Respondents 123 139 345 234 216 358 No of Respondents (In %) 9 10 24 17 15 25
Sources of Awareness
Magazine 9%
Newspaper 25%
Radio 10%
Magazine Radio
Hoarding 15% Word of Mouth 17%
Internet 24%
Internet Word of Mouth Hoarding Newspaper
From the above chart it is clear that the major sources of information are Newspapers and Internet. Half of the respondents came to know about Finishing School from these 2 sources. Apart from these 2 sources Hoarding and Word of Mouth together (32%) are also the major sources of information. While few respondents (19%) came to know about Finishing School from Magazines and Radio.
WILLINGNESS FOR JOINING FINISHING SCHOOL
No of Respondents No of Respondents (In %) 54 39 7 100
Yes No Not Sure Total
543 384 73 1000
Willingness for joining Finishing School
Not Sure 7% Yes No No 39% Not Sure Yes 54%
More than half of respondents i.e. 54% agreed to join Finishing School. While 39% respondents said that they don’t want to join the Finishing School. The reason can be low awareness level.
SECTION - 1
FACTORS INFLUENCE TO JOIN FINISHING SCHOOL?
Factors Fluency in English Personality grooming Confidence enhancement Polished Social Interaction Polished Business Interaction Total No of Respondents 239 218 146 125 139 No of Respondents (In %) 28 25 17 14 16 100
Influencing Factors to join Finishing School
30% 25% Respondents 20% 15% 10% 5% 0% Fluency in English Personality grooming Confidence enhancement Polished Social Polished Business Interaction Interaction 17% 14% 16% 28% 25%
Influencing Factors
Around 53% respondents were of the opinion that they would like to join the Finishing School for getting Fluency in English and Personality Grooming. The reasons could be low level of English due to socio-cultural aspects and influence of vernacular (Gujarati) language. Apart from these Confidence Enhancement and Polished Business and Social Interaction were considered equally important by the respondents.
FEATURES
Features Very important Somewhat Important No. 219 235 187 178 % 40 43 34 33 Neutral Less Important Not Important No. 14 9 3 12 % 3 2 1 2
No. Flexibility in Timings Fees Professiona lism Responsive ness of staff Proximity of Location Special Discounts 240 223 217 192
% 44 41 40 35
No. 36 39 132 99
% 7 7 24 18
No. 34 37 4 62
% 6 7 1 12
167 186
31 34
183 162
34 30
113 107
21 20
64 59
11 11
16 29
3 5
Preference of Finishing School based on Features
50% 45% 40% Respondents(%) 35% 30% 25% 20% 15% 10% 5% 0% 7% 6% 3% 7% 7% 2% 1% 1% 2% 3% 24% 21% 18% 12% 11% 20% 11% 5% 34% 44% 40% 43% 41% 40% 35% 33% 34% 31% 34% 30% Very Important Somewhat Important Neutral Less Important Not at all Important
Features
From the above chart we can analyze that majority of respondents considered all the features as very important to important. There were some respondents also who were neutral about professionalism, responsiveness of staff, proximity of location and special discounts. Very few respondents considered above features as less important and not at all important.
WILLINGNESS OF SPENDING INCOME AS FEES
Fees Income Below 20,000 20,000-40,000 40,000-60,000 Above 60,000 5,000-10,000 No. 137 87 32 23 (%) 64 49 42 30 10,000-15,000 No. 73 65 19 11 (%) 34 37 25 15 15,000-20,000 No. 4 22 13 23 (%) 2 12 17 30 Above 20,000 No. 0 3 12 19 (%) 0 2 16 25
Willingness of spending Income as Fees
70% 60% Respondents(%) 50% 40% 30% 30% 20% 10% 0% 5,000-10,000 10,000-15,000 15,000-20,000 Above 20,000 Fees 49% 42% 37% 34% 25% 15% 17% 12% 2% 30% 25% 16% 0% 2% Below 20,000 20,000-40,000 40,000-60,000 Above 60,000 64%
Fee is the major factor of any service. Out of total respondents who were willing to join Finishing School it shows that 64% respondents who belong to income group of Below 20,000 were ready to pay Rs.5,000-10,000. This shows that respondents whose income was high were ready to pay more and whose income was low were not ready to pay more.
PREFERENCE OF TIMINGS AS PER OCCUPATION
Occupation No. Student Service Class Person Business Person Housewife Retired Total 156 21 12 17 6 212 Daily (%) 73 10 6 8 3 39% Weekends No. 98 106 99 19 9 331 (%) 29 32 30 6 3 61% 100 %
Preference of timings as per Occupation
80% 73%
Respondents
60% 40% 20% 0% Student Service Business Person Occupation Housewife Retired 29% 32% 10% 30% 8% 6% Daily Weekends 6% 3% 3%
Majority (61%) of respondents showed their preference to come on Weekends. Rest 39% respondents preferred to come daily which is mostly preferred by Students (73%).
BATCH PREFERENCE AS PER OCCUPATION
Particulars Morning No. Student Service Business Person Housewife Retired Total 43 4 5 3 2 57 (%) 75 7 9 5 4 27 Noon No. 59 12 2 12 1 86 (%) 69 14 2 14 1 41 Evening No. 54 5 5 2 3 69 (%) 78 7 7 3 5 32 100%
Batch preference as per Occupation
80% Respondents(%) 60% 40% 20% 0% Student Service Business Person Occupation Housewife Retired 14% 7% 7% 9% 2% 14% 5% 3% Morning Noon 4% 1% 5% Evening 7% 75% 78% 69%
Respondents who wanted to come daily said that noon would be the most preferable time. Around 41% of the respondents told it followed by 32% & 27% of the respondents who wanted to come in the evening & morning respectively.
TIME SPENT PER DAY
Particulars Male No. 1 Hour 2 Hours 3 Hours Total 155 141 42 338 (%) 46 42 12 62 Female No. 100 80 25 205 (%) 49 39 12 38
Willingness to spend time per day
50% 45% 40% 46% 49% 42% 39%
Respondents
35% 30% 25% 20% 15% 10% 5% 0% 1 HOUR 2 HOURS No of Hours 3 HOURS 12% 12% MALE FEMALE
In both the cases male & female preferred 1 Hour in a day for a Finishing School with 46% & 49% respectively followed by 42% & 39% who were ready to spend 2 Hours. There were only 12% of respondents who were ready to spend 3 Hours in a day.
SECTION – 2
REASON FOR NOT JOINING FINISHING SCHOOL
Reason Fees Timing Not Sure Total No of Respondents 153 231 73 457 No of Respondents (In %) 33 51 16 100
Reasons for not joining FS?
Not Sure, 16% Fees,33% Fees Timing, 51% Timing Not Sure
According to half of the respondents (51%) timing is the major reason for not joining the Finishing School followed by fees (33%). While 16% of the respondents were not sure of any reason for not joining the Finishing School.
IN FUTURE WOULD YOU LIKE TO JOIN FINISHING SCHOOL?
Yes No Not sure Total 162 207 88 457 36 45 19 100
Future Demad of FS
Not sure 19%
Yes Yes 36% No Not sure
No 45%
Approximately 45% of respondents were not ready to join finishing school even in future. Approximately 36% of respondents affirmed to join finishing school in future. While 19% of respondents were not sure of joining the same.
FINDINGS
? Majority of the respondents surveyed were the students as the large portion of the sample composed of the students. ? As Majority of the respondents were from the income group Below 20,000, they selected the fees structure varying from Rs.5000 to Rs.10,000. ? Awareness level for Finishing school was comparatively low in the Ahmedabad. Reasons can be lack of large scale advertisements. ? Major source of awareness were Newspapers and Internet. ? Majority of the respondents considered fluency in English as most influencing factor to join finishing school as the level of English being low in Gujarat due to socio-cultural aspect and influence of vernacular language. ? They also considered Personality Grooming as the second most influencing factor to join school. This can be due to growing demand for Professional with soft skills. ? Majority of the respondent opted for weekend time slots. This may be the case due to Saturday being half day and Sunday being holiday, they can get sufficient time to concentrate on this specially in case of Professionals.
Counseling Psychologist Job Description
Job Title: Counseling Psychologist Reports to: Center Head Supervises: Students/ New entrants Functions:
? Getting information ? Establishing interpersonal relations ? Analyzing information ? Identifying situations of the entrants and prescribing the right course for them ? Processing documentation and recording information and maintaining records ? Developing new standards of personality evaluation
Duties and Responsibilities:
? Must combine pieces of information to form general rules/conclusions ? The ability to tell someone about their problems in a subtle way ? To comprehend the nature of an individual from the replies he gives and to listen and understand clearly the problems pertaining to human nature. ? He must co-ordinate the information well enough to provide useful information to organization.
Job Specification Job Title: Counseling Psychologist Education Degrees:
? M.A. with Psychology as the main subject. ? M Phil/ PhD in psychology
Language Skills:
English, Hindi, Gujarati
Work Experience:
An experience of 2-3 years in counseling psychology
Skills:
Speech clarity, problem sensitivity, oral expression and comprehension, speech recognisation
Physique and Health:
Good health and sound mind
Appearance:
Sensitive, Empathetic and Affable.
Mental Abilities:
Inductive and deductive reasoning originality, listening and persuasion
Maturity:
To evaluate the personality to fill up the gaps to recommend appropriate courses therein.
Computer Teacher Job Description
Job Title: Computer Teacher Reports to: Centre Head Supervises: Students Functions:
? Interacting with computers ? Training and teaching students ? Updating and using relevant knowledge ? Observing, receiving and otherwise obtaining information from all relevant sources. ? Communicating with supervisors, peers or subordinates. ? Interpreting the meaning of information to others ? Coaching and developing students
Duties and Responsibilities:
? Taking regular classes prepare and deliver lectures to students ? Teaching students and clear their doubts
Job Specification Job Title: Computer Instructor Education Degrees:
BCA/MCA/MSC IT (specialization in tally course is must)
Language Skills:
English, Hindi, Gujarati
Work Experience:
At least 2 years experience in teaching computers at any institution.
Skills:
Expert in computer programming, especially in MS office and tally
Physique and Health:
Speech clarity, active listening, long term vision.
Appearance:
Dynamic, charming, presentable
Mental Abilities:
Critical thinking and complex problem solving
Maturity:
Presence of mind, problem sensitivity
English language and literature teacher
Job Description
Job Title: English language and literature teacher Reports to: centre head Supervises: students Functions:
? Training and teaching students ? Communication with peers ? Making decision and solving problems ? Scheduling work and activities
Duties and Responsibilities:
? Prepare and deliver the lecture ? Initiate, facilitate and moderate classroom discussion. ? Prepare course material according to the level of students ? Compile bibliographies of specialized materials for outside reading assignment ? Make practical presentation in the class
Job Specification Job Title: English language and literature teacher Education Degrees:
M.A (subject: English)
Language Skills:
Fluent English, Hindi, Guajarati
Work Experience:
2-3 years experience in teaching English at any institution
Skills:
Instructing, reading comprehension, writing, critical thinking, active listening, speaking, time management
Physique and Health:
A healthy body and sound mind.
Appearance:
A dynamic personality with cogent communicative abilities.
Mental Abilities:
Convincing capabilities with a prolific knowledge of the language.
Maturity:
Oral expression, speech clarity, inductive reasoning, deductive reasoning, vision, problem sensitivity
Receptionist
Job description Job Title: Receptionist Reports to: center head Supervises: students Functions:
? Receiving the customers and reverting them to the counseling psychologist. ? Data entry and maintenance of records of the trainees. ? Coordinating the schedules of the various classes. ? Attending and handling the telephone correspondences.
Duties and Responsibilities:
? To attend to the functions of correspondences and data entry operations with precision and skill. ? To remain present and to handle the customer inquiries and satisfy them completely by providing the required information.
Job Specification Job Title: Receptionist Education Degrees:
Graduation in any stream.
Language Skills:
Fluency in English, Hindi and Gujarati.
Work Experience:
1-2 years experience as a receptionist is an added advantage
Skills:
Convincing and fluent linguistic abilities, multi-tasking and handling the problems effectively.
Physique and Health:
A healthy body and sound mind.
Appearance:
A beautiful, presentable person with a good personality.
Mental Abilities:
Ability to manage time and handle customers with courtesy.
Maturity:
Oral expression and speech clarity.
SALARY STATEMENT FOR THE FINANCIAL YEAR 20010-2011
(Figures in Rs.)
SALARY STATEMENT FOR THE FINANCIAL YEAR 20011-12
(Figures in Rs.) Monthly Salary 15000 5000 10000
Designation Coordinator Counselors Faculties Visiting Faculty (Per Lecture 500) Receptionist Peon Sweeper Designation Coordinator Counselors Faculties Visiting Faculty (Per Lecture 550) Receptionist Peon Sweeper
No. of Persons 1 2 4
Annual Salary 180000 120000 480000
Bonus 15000 10000 40000
Total Salary 195000 130000 520000
2500 7000 4000 1000 Monthly Salary 16500 5500 11000
2 1 1 1 No. of persons 1 2 4
60000 84000 48000 12000 Annual Salary 198000 132000 528000
5000 7000 4000 1000 Total Salary Bonus 16500 11000 44000
65000 91000 52000 13000 1066000 Total Salary 214500 143000 572000
2750 7700 4400 1100
2 1 1 1
66000 92400 52800 13200
5500 7700 4400 1100 Total Salary
71500 100100 57200 14300 1172600
SALARY STATEMENT FOR THE FINANCIAL YEAR 2012-13 (Figures in Rs.)
Designation Coordinator Counselors Faculties Visiting Faculty (Per Lecture 605) Receptionist Peon Sweeper
Monthly Salary 18150 6050 12100
No. of persons 1 2 4
Annual Salary 217800 145200 580800
Bonus 18150 12100 48400
Total Salary 235950 157300 629200
3025 8470 4840 1210
2 1 1 1
72600 101640 58080 14520
6050 8470 4840 1210 Total Salary
78650 110110 62920 15730 1289860
ORGANISATION CHART
Particulars Fixed assets Preliminary expenses Contingencies Total
Amount(Rs.) 10,74,240 75,000 1,00,000 12,49,240 12,50,000
Particulars Partner’s Capital [Equally contributed by 10 partners]
Amount(Rs.) 12,50,000
Particulars Legal fees Stamp duty Market survey cost Trademark Electricity connection Total
Amount(Rs.) 15,000 10,000 5000 15,000 30,000 75,000
Particulars
Students Corporate Executives Level-A Level-B Housewives Spoken English Basic level Intermediate level Advanced Level Computer Course Ms-Office Tally Crash Course 5 days 10 days 15 days
Fees(Rs.)
5000
No. of students
10
Batch
6
Frequency
4
Total(Rs.)
1200000
7000 9000 4500
15 10 10
2 2 1
4 4 4
840000 720000 180000
4000 5000 7500
20 10 5
1 1 1
4 4 4
320000 200000 150000
4000 5000
10 10
3 3
4 4
480000 600000
1500 3000 4500
10 10 10
1 1 1
10 10 10
150000 300000 450000
TOTAL
5590000
Particulars Newspaper Ahmedabad Times [9*8cm, Page-3, 4 times in a week] City Bhaskar [15*12cm, page-1, once in a week] Leaflets with Newspaper [15000copies*1.5, distributed in 3 months] Commission [Rs.125 per 1000 copies] Hoardings Vijay Cross road, Navrangpura Satellite Vastrapur
Cost(Rs.)
Frequency(p.a)
Total(Rs.)
15,000 12,000
4 4
60,000 48,000
22,500
4
90,000
1875
4
7500
30,000 1,50,000 1,00,000
1Month 1 Month 1 Month
30,000 1,50,000 1,00,000
Recruitment Advertisement Gujarat Samachar [ 4 ads in a week] Times Of India [4 ads in a week] Total 20,000 10,000 2 2 40,000 20,000 5,45,500
Statement of Assets
Particulars Qty Price (Rs.) Per unit Trademark Benches White board Table Chairs 80 5 1 19 15 Sofa set with Tepoy Glass Cubicals Lights Library racks Computer Plank Fire fighting equipment ACs Computers Electricity connection charges LCDs Fans 2 12 50,000 550 1 1 25 1 1 3 8 12 1000 1000 15,000 1000 2000 45,000 40,000 300 10,000 15,000 1800 26,530 22000 15,000 80,000 5000 15,000 19,000 30,000 45,000 40,000 7500 10,000 15,000 5400 2,12,240 2,64,000 24,500 Amount(Rs.)
1,00,000 6600
Lamination Machine Water cooler Printer Books Generator Cost of Construction of wash room
1 1 1 1 1 1
5000 35,000 20,000 25,000 45000 50,000
5000 35,000 20,000 25,000 45,000 50,000
Total
10,74,240
STATEMENT OF DEPRECIATION
Particulars Trademark Benches White board Table Chairs Amount(Rs.) 15,000 80,000 5000 15,000 19,000 30,000 Sofa set with Tepoy Glass cubicals Lights Library racks Computer Plank Fire fighting equipment ACs Computers Electricity connection charges LCDs Fans Lamination Machine Water cooler 45,000 40,000 7500 10,000 15,000 5400 2,12,240 2,64,000 24,500 Depreciation rate (%) 25 10 10 10 10 10 10 10 10 10 10 25 25 60 25 Depreciation(Rs.) 3750 8000 500 1500 1900 3000 4500 4000 750 1000 1500 1350 53000 158000 6125 WDV 11,250 72,000 4,500 13,500 17,100 27,000 40,500 36,000 6,750 9,000 13,500 4,050 159,240 106,000 18,375
1,00,000 6600 5000 35,000
10 25 25 25
10000 1650 1250 8750
75,000 4,950 3,750 26,250
Printer Books Generator Cost of Construction of wash room
20,000 25,000 45,000 50,000
60 100 10 10
12000 25000 4500 5000
8,000 0 40,500 45,000
Total
10,74,240
322025
(Rs. In Lacs) PARTICULARS 20102011 20112012 20122013 20132014 20142015
GROSS RECEIPTS Fees Received TOTAL Increase Or Decrease COST OF PROJECT Material Purchase 0.50 0.55 0.61 0.67 0.73 55.90 55.90 61.49 61.49 10% 67.64 67.64 10% 74.40 74.40 10% 81.84 81.84 10%
Stationery
0.30
0.33
0.36
0.40
0.44
Specific course material
0.25
0.28
0.30
0.33
0.37
Electricity charges
3.07
3.38
3.71
4.09
4.49
Wages & Salaries
10.66
11.73
12.90
14.19
15.61
Rent
21.60
21.60
21.60
27.00
27.00
Depreciation
3.22
1.68
1.01
0.74
0.54
Cost of production Selling General & Administration exps.
39.60 6.20
39.54 6.82
40.49 7.50
47.41 8.25
49.18 9.08
SUB -TOTAL
45.80
46.36
48.00
55.66
58.26
OPERATING PROFIT BEFORE INT.
10.10
15.13
19.64
18.74
23.59
Less: Interest on capital @5%
0.63
0.66
0.69
0.72
0.75
OPERATING PROFIT AFTER INT. Other non-operating exps. Preliminary Expenses. PROFIT BEFORE TAX Less: PROVISION FOR TAXES NET PROFIT
9.47
14.47
18.95
18.02
22.84
0.15 9.32 2.88
0.15 14.32 4.43
0.15 18.80 5.81
0.15 17.87 5.52
0.15 22.69 7.01
6.44
9.90
12.99
12.35
15.68
(Rs. In Lacs)
PARTICULARS
20102011
20112012
2012-2013
2013-2014
2014-2015
CURRENT LIABILITIES. Sundry Creditors (Exp.) Provision For Taxation 4.00 4.00 4.00 4.70 5.00
2.88
4.43
5.81
5.52
7.01
TOTAL CURRENT LIABILITIES
6.88
8.43
9.81
10.22
12.01
NET WORTH Partners capital inclusive of profit/loss General Reserve NET WORTH 18.28 13.13 13.79 14.48 15.20
1.29 19.57
1.98 15.11
2.60 16.39
2.47 16.95
3.14 18.34
TOTAL LIABILITIES
26.45
23.53
26.20
27.17
30.35
CURRENT ASSETS Cash and Bank Balance Receivables Other Current Assets 12.67 11.08 14.21 15.47 18.54
5.60
6.10
6.80
7.40
8.20
Telephone Deposit
0.06
0.06
0.06
0.06
0.06
18.33 TOTAL CURRENT ASSETS FIXED ASSETS Gross Block Depreciation Net Block Preliminary expenses TOTAL ASSETS 10.74 3.22 7.52 0.60 26.45
17.24
21.07
22.93
26.80
7.52 1.68 5.84 0.45 23.53
5.84 1.01 4.83 0.30 26.20
4.83 0.74 4.09 0.15 27.17
4.09 0.54 3.55 30.35
(Rs. In Lacs)
Particulars
2010-11
2011-12
2012-13
2013-14
2014-15
Opening balance Capital introduced
0 12.5
13.13 0
13.79
14.48
15.2
Total
12.5
13.13
13.79
14.48
15.2
Interest on capital Profit and loss account
0.63 5.15
0.66 7.92
0.69 10.39
0.72 9.88
0.75 12.54
Total
18.28
21.71
24.87
25.08
28.49
Less : profit distributed amongst partners equally
5.15
7.92
10.39
9.88
12.54
Closing balance
13.13
13.79
14.48
15.2
15.95
ASSUMPTIONS UNDERLYING THE FINANCIAL STATEMENTS
? The demand is as per our estimate for all the packages designed are as per the results of the market survey. It does not vary largely. ? There is a consistent increase of 10% in revenue every year. ? All the expenses are increasing at the rate of 10% every year. ? 20% of the profits are transferred to General Reserve every year. ? Taxes are charged at the rate of 30%. ? Selling and administration expenses of the first year include: ? Telephone expenses of Rs. 18000 ? Internet expenses of Rs. 40000 ? Insurance premium of Rs. 1130 ? Audit fees of Rs. 13000 ? Advertisement expenses of Rs. 5,45,000. ? Rent will increase by 25% from the fourth year. ? All preliminary expenses are written off over a period of 5 years. ? Depreciation has been calculated as per the accounting standards. ? The profit is divided amongst the partners equally.
(Rs. In Lacs)
Particulars
A)CASH FLOW FROM OPERATIONS
2010-11
2011-12
2012-13
2013-14
2014-15
Opening balance of P&L Less: Closing balance of P&L
9.32
14.32
18.80
17.87
9.32
14.32 5
18.80 4.48
17.87 -0.93
22.69 4.82
Add: Transfer to General Reserve Depreciation Preliminary expenses written off Interest on capital
CHANGES IN WORKING CAPITAL
3.22
1.68
1.01
0.74
0.54
0.15 0.63
0.15 0.66
0.15 0.69
0.15 0.72
0.15 0.75
Increase in creditors for expenses Increase in debtors Less: Income tax paid
4
0.7
0.3
-5.6
-0.5
-0.7
-0.6
-0.8
2.88
4.43
5.81
5.52
Net cash flow from operations B)Cash flow from investment activities Purchase of assets preliminary YEAR expenses PAT deposits Net cash flow from investment activities C)Cash flow from financial activities Partners capital infusion Net cash flow from financial activities (A+B+C) Add:Opening cash balance Closing cash balance
11.72
4.11
1.20
(5.03)
0.24
-10.74
-0.75 DEPRECIATION -0.06
CFAT
CUM. CFAT
D.R. AT 10%
DISC.CFAT
-11.55
12.5
-5.7
1.93
6.29
2.83
12.50 12.67
-5.70 -1.59
1.93 3.13
6.29 1.26
2.83 3.07
12.67
11.08
14.21
15.47
12.67
11.08
14.21
15.47
18.54
(Rs. In Lacs)
2010-11 2011-12 2012-13 2013-14 2014-15 TOTAL
6.44 9.90 12.99 12.35 15.68 57.36
3.22 1.68 1.01 0.74 0.54 7.19
9.81 11.73 14.15 13.24 16.37 65.3
9.81 21.54 35.69 48.93 65.3
0.909 0.826 0.751 0.683 0.621
8.92 9.69 10.63 9.04 10.17 48.45
(1) Payback Period :Total investment (Cost of project) = 12.50lacs Amount recovered in 1st year = 9.81lacs = 12.50 – 9.81 = 2.69 lacs = 0.23 yrs
Amount left to be recovered after 1st year
Time period of recovery of remaining amount = 2.69/11.73 Payback Period= 1 + 0.23 = 1.23 years Criteria for selection of project
roject with least payback period is preferred first. Interpretation:-Our total investment will be recovered within 1.23 years. The time period of recovery being less it is viable as per payback period method.
(2) Average rate of return (ARR) :ARR = (Average profit after tax/Average investment)*100 Average PAT = Total PAT/5 = 57.36/5 = Rs. 11.47 Lacs Average investment = (Cost – Scrap value/2) + scrap value + Working capital investment = 12.5/2 + 13.87
= 20.12
ARR
= (11.47/20.12)*100 = 57%
Criteria for selection of project
roject having highest positive rate of return is considered best. Interpretation:On an average our project will yield 57% return on total investment every year. ARR being positive our project is viable.(3) Net Present Value:NPV = Present value of cash inflow – Present value of cash outflow = 48.45 – 12.50 = Rs. 35.95 lacs
Criteria for selection of project:If NPV is Positive, project is selected If NPV is zero, it is indifferent situation you can select it or reject it taking into account other factor. If NPV is Negative, project is rejected. Interpretation:As our NPV > 0 i.e. it is positive so it is acceptable.
(4) Profitability Index (PI)
I = Present value of cash inflow/Present value of cash outflow = 48.45/12.50 = 3.88Criteria for selection of project:If PI > 1, project is accepted. If PI < 1, Project is rejected. Interpretation:As our PI > 1, the project is feasible.
(5) Internal Rate of Return :CFAT 9.81 11.73 14.15 13.24 16.37 TOTAL DIS RATE @ 90% 0.526 0.277 0.146 0.077 0.04 DIS. CFAT 5.16 3.25 2.07 1.02 0.65 12.15 DISC.RATE @ 85% 0.541 0.292 0.158 0.085 0.046 DISC. CFAT 5.31 3.43 2.24 1.13 0.75 12.86
Fack payback period = Investment/Average cash inflow = 12.5/13.06 = 0.96years Average cash inflow = 65.3/5 = Rs. 13.06 Lacs IRR = 85 + [(12.86 - 12.5)/(12.86 – 12.15)] * 5% = 85% + 2.54% = 87.54% Interpretation:AS IRR is positive and greater than ARR, Project is feasible.
Particulars
2010-11
2011-12
2012-13
2013-14
2014-15
Total fixed costs
Salary Rent Depreciation Audit fees Preliminary expenses Advertisement expenses Insurance Interest on capital TOTAL FIXED COSTS Total variable costs Telephone Internet Stationery Material Purchases Special Course Material Electricity
10.66 21.6 3.22 0.13 0.15 5.45 0.01 0.63 41.85
11.73 21.6 1.68 0.14 0.15 6 0.11 0.66 42.07
12.9 21.6 1.01 0.15 0.15 6.6 0.12 0.69 43.22
14.19 27 0.74 0.16 0.15 7.2 0.13 0.72 50.29
15.61 27 0.54 0.17 0.15 7.9 0.14 0.75 52.26
0.18 0.4 0.3 0.5 0.25 3.07
0.19 0.44 0.33 0.55 0.28 3.38
0.2 0.48 0.36 0.61 0.31 3.71
0.21 0.53 0.4 0.67 0.34 4.09
0.22 0.58 0.44 0.74 0.37 4.49
Total Variable Cost
4.7
5.17
5.67
6.24
6.84
SALES Less:Variable costs
55.9 4.7
61.49 5.17
67.64 5.67
74.4 6.24
81.84 6.84
Contribution Less:Fixed Cost Profit
51.2 41.85 9.35
56.32 42.07 14.25
61.97 43.22 18.75
68.16 50.29 17.87
75 52.26 22.74
P/V Ratio =Contribution/Sales*10 0
91.59
91.59
91.62
91.61
91.64
BREAK EVEN SALES(in Rs.)= Fixed Cost/P/V Ratio
45.69
45.93
47.17
54.89
57.03
Margin Of Safety(Rs.)= Profit/P/V Ratio
10.21
15.56
20.47
19.51
24.81
RATIO ANALYSIS
PARTICULARS Current Ratio (Current Assets/Current Liabilities) Quick Ratio (Cash+Bank/Liquid Liabilities) Net Profit Ratio (Net Profit/Sales*100) % Expense Ratio (Expense/Sales*100) % Return on investment or Capital employed (EBIT/Capital employed*100) (In %) Fixed Assets Turnover Ratio (Sales/Fixed assets) (In times) Total assets turnover ratio (Sales/Total assets) (In times) Proprietary ratio (Proprietors' funds/Total assets) 2010-11 2.66 2011-12 2.05 2012-13 2.15 2013-14 2.24 2014-15 2.23
1.84 9.21 81.93 53.24
1.32 12.88
75.39
1.45 14.92 70.96 122.06
1.51 13.28 74.81 111.55
1.54 15.32 71.18 82.28
103.21
7.43
10.53
14
18.19
23.05
(in times) 2.16 2.45
2.61
2.75
2.7
0.73
0.58
0.62
0.62
0.94
Analysis
Current Ratio
The current ratio which shows the credibility of the organization to repay its creditors is very sound. So, it can be inferred that although the funding is totally by the partners now, it would be possible to finance any expansion plans in future with the help of loans from banking institutions and other financial sources. We have not tried to invest although the ratios tend to be very high because of the high lock in periods and because of the recessionary trends.
Current Ratio Trend
3.00 2.50 Current Ratio 2.00 1.50 1.00 0.50 0.00 2010-11 2011-12 2012-13 Year 2013-14 2014-15
Quick Ratio
The liquid position indicated by quick ratio stands at nearly 1.84 which is nearly double the liquid liabilities. It reflects strong cash position of the organization which shows a tendency to increase in all the consequent years.
Net Profit Ratio
The net profit ratio has a steady tendency of increasing which also shows that the profitability shows the upward trend in coming 5 years. Expenses are needed to be checked to increase it further.
Net Profit Ratio
18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 2010-11 2011-12 2012-13 Year 2013-14 2014-15
Net Profit %
Expenses Ratio
We can infer that the expenses are whopping 80% of sales value. Care needs to be taken to find ways to curb it and to keep it under control. Cost control and reduction methods need to be judiciously adopted.
Return of Capital Investment or Capital Employed
The rate of return is satisfactory at 53% and tends to grow steadily which shows that the earnings on investments are laudable and it even reaches 122% in its third year itself.
Return on Investment
140.00 120.00 Return on Investment % 100.00 80.00 60.00 40.00 20.00 0.00 2010-11 2011-12 2012-13 Year 2013-14 2014-15
Fixed Assets Turnover Ratio This ratio shows the efficiency with which the fixed assets are employed in business. The fixed assets are turned over 7 times a year which is very positive. Total Assets Turnover Ratio The efficiency with which the total assets are turned over in the business is somewhat lower which needs to get grow further.
Proprietary Ratio The proprietors share in the total assets of the business accounts for three fourths of the total assets in the year which is a positive sign.
Proprietory Ratio Trend
1.00 0.90 0.80 Proprietory Ratio 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 2010-11 2011-12 2012-13 2013-14 2014-15 Year
SWOT Analysis
SWOT refers to “Strengths, Weaknesses, Opportunities and Threats.” Where strength and weakness are internal and are within the control of the business while opportunity and threat are external and are outside the control of the business.
A SWOT analysis is useful to determine internal characteristics of business and to improve upon the same. To grab the lucrative opportunities existing in the external environment and to overcome the threats to your business, if any. SWOT analysis for our business will be as follows:-
Strengths:
? Location:
Our school will be situated at commerce six roads which is both residential as well as commercial area. Besides Navrangpura is the area where most of the colleges of Ahmedabad are located so it will provide us proximity to our target customers. Apart from this the transportation facility is also robust here.
? Human capital:
Qualified and dedicated staff is strength of ours. We will create a kind of work environment that will keep them motivated and give their best in service delivering process.
Weaknesses:
? Constraint of resources:
Being a new entrant in this field our business currently exists at single place only due to constraint of resources most important of them is finance which is the backing for acquiring other resources like LCDs, computers, benches, etc. Currently, we do not have any other branch or franchise. This can act as a major constraint for us.
Opportunities:
? Expansion:
Once we get established in the market and achieve brand reputation, we would like to expand our business by opening new branches of our school as this business has high potential to grow due to increasing demand for the well polished professionals with fluency in English in the industry.
Threats:
? Competitors:
Our competitors already existing in this business like Makeover finishing school and other personality development schools like IGEM, Oxford etc will be acting as a major threat to our business but we will try our best to withstand this threat by distinguishing our services from our competitors’ services.
Vision
? An aggregate commitment towards quality through technical and professional perfection. ? To provide comprehensive value for money to our customers and bring customer satisfaction. ? An aggregate commitment and dedication towards training perfection. ? To keep pace with changing customer perception.
Objectives
Short term objectives:
? To create customer awareness regarding our services. ? To maximize the profitability.
Long term objectives:
? To maximize the market share. ? To become market leader in this field.
Conclusion
Our feasibility project on ESTABLISHING A FINISHING SCHOOL has had an effect on us which transgresses beyond mere analysis of relevant factors. It has been an experience which has enlightened and enabled us to be better in terms of our pool of knowledge. We truly felt that we know and understand things better than we used to yesterday as far as this industry is concerned. Considering that we had a change of topic midway due to justifiable reasons, we were hard-pressed for time but we took it as a challenge and it helped all of us to give it our best shot in the time given which also taught us important lessons in time management, multi-tasking, understanding group dynamics and to unlock the otherwise esoteric lock of financial feasibility which we would always cherish in our life—the times we felt utterly petrified and confounded when we couldn’t get our figures right and suddenly had an EUREKA MOMENT when we finally sorted out the numerical. Finally, the result of this feasibility project is ? It is feasible with profits surging every year. All the factors considered for evaluation yielded highly positive results. ? As far as the financial aspects are considered, the profitability shows a continuous upward trend. ? Also the initial investment is also very negligible, so the risk factor is low. ? Expansion plans can be met with the help of external finance in future. The financial credibility of the firm is high. We would consider owning our own premises in 7-10 years time. ? As far as the survey was considered, we found that the no. of students interested in joining the school is much more than those of the ladies and corporate executives. We would have to address this concern by targeting our marketing efforts at them in a much more convincing way. Also the professionalism required in the process of service delivery is high which might create problems in finding the experts required for tutorship. But considering the criteria we adopt for recruitment, we are bound to overcome it. At last we would like to conclude by summing up in this way:
“IT IS GOOD TO HAVE AN END TOWARDS A JOURNEY; BUT IT IS THE JOURNEY THAT MATTERS IN THE END.”
BIBLIOGRAPHY & WEBOGRAPHY
BIBLIOGRAPHY
MARKETING MANAGEMENT BY PHILIP KOTLER SERVICE SECTOR MANAGEMENT – AN INDIAN PERSPECTIVE BY C. BHATTACHARJEE
WEBOGRAPHY
WWW.GOOGLE.COM. WWW.QUICKMBA.COM WWW.WIKIPEDIA.ORG
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