2012
Managing and Financing
Innovations MBA – 606/
Mr. Marcelly
Tunoy Mukherjee

[BUSINESS PLAN - TPAD]
A cost effective p...
2

Business Plan “Tpad”

Idea
This product is unique in itself if I write this, it’s not completely true the technology ha...
3

it with the new semester Tpad). This not only makes the imparting of education easy but also
gives exposure to the tech...
4


Build execution into Strategy



. Get the strategic sequence right

Time line to begin the work and actual executio...
5


After negotiation and finalising expected cost per unit chf 80/- (VAT included)



Sinning a contract with the Chine...
6
e) Once the above steps are taken then finally ordering the partner company to manufacture and
deliver the product.
(Thi...
7


Ease of Use



Easy to carry



Store multiple books in one pad



Low priced product



Two years Guarantee



...
8

CEO
Sponsor
Director
(i)

Marketing
Manager
Sales &
Operations

We look to expand the staff once we receive bulk order ...
9

gives away its word processor reader for free but charges several hundred dollars for its word
processor writer.
Market...
10
Financial plan
Financial plan for this project is extremely transparent
First Year- Launch of the Product
Start Up Cost...
11


Discount (as it is a bulk order ) = CHF 10000/-



Our Selling Cost 1500 * 80 = CHF 120000 + 10000



Total Income...
12

Considering the Setting up Cost We have profit of CHF 8000/- The First Year
Setting Up Cost

22000

Year End Profit

3...
13
November

1000

9000

-10000

1000

9000

150000

January

1000

9000

-10000

February

1000

9000

-10000

March

100...
14
Year 2014-15

Income & Expenses

Total

Months

Income (Sales)

Expenses

Marketing EX

Wages

June

275000

25000

200...
15
Accounts Receivable

290000

Taxes Payable
Income Tax 1000

2000

Sales Tax 1000
Payroll Accrual
Profit 290000 - 284000...
16

Conclusion
The Product will have its own unique market segment which will further expand in future, ‘ Tpad ’ is
here t...
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Business plan tpad

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Business plan tpad

  1. 1. 2012 Managing and Financing Innovations MBA – 606/ Mr. Marcelly Tunoy Mukherjee [BUSINESS PLAN - TPAD] A cost effective portable Tablet which is dedicated only to Readers, which would contain more than 50 books in a tablet, it is here to replace books.
  2. 2. 2 Business Plan “Tpad” Idea This product is unique in itself if I write this, it’s not completely true the technology has advanced so much that it has launched various products of may be similar kind or has used more dynamic approach like iPAD and other portable tablets which are soon going to replace computers at offices and homes, having said that i also argue that this product is specifically of one kind of use and that it what makes its unique and different from available pads in the market, as we are quite aware that the only thing which is constant in this world is ‘Change’, our focus today is to change or replace heavy books and bags that students carry to schools, save paper (trees) looking into today’s environment, we have made a product called ‘Tpad’ (text-pad) which is a portable 9’ inch tablet with an operating system where you may load books for a semester and hand over these tablets to students, the most unique feature of this Tpad is that it comes with a preloaded software that would convert written text to spoken words, all you need to do is select a part of text or a chapter and press a button you may be able to listen to it. The product ‘Tad’ is the next generation text book that student would carry to school, a device that is user friendly where if you don’t feel like reading text you may just listen to it, vis-a-vis for schools and colleges it is a huge cost cutting by not buying course books every year for new students and just uploading them in a Tpad and give it away(or may replace submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16
  3. 3. 3 it with the new semester Tpad). This not only makes the imparting of education easy but also gives exposure to the technology. Market Study The introduction of a brand new type of device into the market is a challenging task. We’ve seen this with the Apple Newton, PDA and Net books. Like any innovative product in the high-tech market, we will have a monopoly until other products started to emerge. The Tpad will became a benchmark against which all other tablets would be compared, ‘However with its unique focus on schools and colleges & publishing house it will emerge as new age” book”. To launch this product we will use the Blue Ocean Strategy which looks at Blue oceans, denote all the industries not in existence today – the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored Six Principles of Blue Ocean Strategy Formulation  Focus on the big picture, not the numbers  Reach beyond existing  Overcome key demand organizational hurdles  Reconstruct market boundaries submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16
  4. 4. 4  Build execution into Strategy  . Get the strategic sequence right Time line to begin the work and actual execution : In Totality the whole process to begin will take somewhere around 6 months a) Contacting Chinese company who may manufacture Tpad at the most cost effective price possible ,also stating the fact that it should be user friendly and should have scope of up gradation of different software, which would require certain steps:  Contacting all small manufacturing Units in China asking them if they can produce such a pad with all these below mentioned specifications:  9’ inch Tablet  OS which has the capability to loading text books  Storage Capacity upto 50 books  Excellent screen good for reading  Software which converts text into speech  Rewriteable memory (you may upload and delete infinite times)  8 hour battery back up  Short listing the manufacturing units, & asking them for a price Quote per unit  Thereon finalising a company which gives the best price per unit and also the kind of credit availability and if ordered in bulk time for manufacturing and exporting the products to Geneva. submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16
  5. 5. 5  After negotiation and finalising expected cost per unit chf 80/- (VAT included)  Sinning a contract with the Chinese company and the patent rights (whole process may take up to 2 months of hard work and once we have the physical availability of Tpad we move on to the next step) b) Hiring a Marketing executive for marketing and launch of the product in the Swiss Market, we begin the process from a small geographical area from Geneva. c) Identifying our Target Market and our target audience :  School  Business School  Educational Institutions (Govt & Private both)  Publishing House  Book Stores  libraries d) Once we have identified our target market we focus on marketing our product through presentations in school, and various other identified audience which would involve certain steps:  Finding all schools and educational Institutions  Calling the Deans and Heads of the Institutions for an appointment for a meeting  short listing the Interested prospects and going for a second presentation with students involved and getting a first-hand feedback of the product  If successful taking orders and giving them a delivery date of Tpad (The whole process may take up to 3 months ) submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16
  6. 6. 6 e) Once the above steps are taken then finally ordering the partner company to manufacture and deliver the product. (This whole process may take upto 6 months or may be even longer depending upon all factors falling in place) Organisation Selling : To brief the selling process it is a “hit and trial ” method with a very low investment. we produce the first 5 Tpad and go to different identified buyers give them a presentation tell them about the pros and cons of the product, & also tell how it is now time for change and with development it is time for every individual to switch to Tpads, which would :  Saves paper (we don’t have to cut trees and make the environment worse and too at the time of Global Warming when all of should take this fact under consideration of saving trees)  Prepare the students well ahead during their learning stage to get exposed to Pad which later on they may use for job and other dealings(as with the launch and rapid growth of technology people are shifting to ipad which is going to replace the computer soon.)  it is here to replace books, the huge amount of weight the people carry when they want to read.  its Unique selling preposition – converting the text to speech is specially designed for the readers who are on-the-go, in their busy life people might not find time to read they may just plug into Tpad and can listen to it while travelling, working etc. it gives an extra edge to our product, it will be popular among students as well, who cannot sit for long hours and read which is boring can learn their lessons by simply listening to them. submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16
  7. 7. 7  Ease of Use  Easy to carry  Store multiple books in one pad  Low priced product  Two years Guarantee  First bulk Delivery within two months of Order(then it will be readily available) Production : It will be On order delivery , produced and manufactured in China where will have all the rights of intellectual property. Distribution : Supply chain management is very transparent at the initial stage, we get orders from the buyer- we order our manufacturing company in china to produce those many pieces of our product, we ship from china and deliver it to our clients. It is a unique product which would be available to general public through either the retail book stores, or to students from their schools, we may take orders online as well ,’however to begin with we are looking at market of Geneva in prime but would be open for other cities and countries once we have the proper exposure. Organisation Structure: I have mentioned in the text above that we will start small and avoid any extra cost, the organisational structure remain very small until we grow from our roots. We begin small, we would have three people in our Organization that would include : submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16
  8. 8. 8 CEO Sponsor Director (i) Marketing Manager Sales & Operations We look to expand the staff once we receive bulk order , and it is subject to our requirement. Development Plan Business Strategy and development plan of ‘Tpad’ is the oldest one ‘ the bait & hook business model ‘ we will sell the products for a very minimum price with few applications and then by every semester passes by will be introducing new and advanced applications and will charge for the upgrade. The bait and hook business model (also referred to as the razor and blades business model or the tied products model) was introduced in the early 20th century. This involves offering a basic product at a very low cost, often at a loss (the "bait"), then charging excessive amounts for refills or associated products or services (the "hook"). Examples include: razor (bait) and blades (hook); cell phones (bait) and air time (hook); computer printers (bait) and ink cartridge refills (hook); and cameras (bait) and prints (hook). An interesting variant of this model is a software developer that submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16
  9. 9. 9 gives away its word processor reader for free but charges several hundred dollars for its word processor writer. Market really Exists : the proof that market really exists is that colleges and schools giving away photocopied spiral books and passing photo copied handouts from the reference books buying just one copy of the book. teachers and profs passing handouts whereas with Tpad life becomes much easier. This is directly linked with the company strategy, sell the initial product for less price and once we manipulate the market and have sold our patent products to everyone we start earning on the upgrades of various application. The First Upgrade : by the end of one year and beginning second year will be introduction of a inbuilt dictionary. Year Two – Up Gradation IN- BUILT – DICTIONARY- it is simple the way people would highlight text to listen to it, if they do not understand a particular word simply highlight the word and press the dictionary button it will give the meaning along with it they may be able to listen to the pronunciation of the word. which would come handy if they are not the native speaker of the language. Year Three – Up Gradation Language – Translator- it will work in a conventional way you highlight a text and choose a language and it will translate it into that particular language, to begin with it will be available in French, German & Italian the three official languages of Switzerland. submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16
  10. 10. 10 Financial plan Financial plan for this project is extremely transparent First Year- Launch of the Product Start Up Cost Heads Cost CHF Research & Development 5000 Business Registration 5000 Domain name Registration 2000 Solicitor’s fee 5000 Sundries 5000 Total 22000 Profit & Loss Account Forecast Year One Employees apart from Sponsor  Director (Monthly Wage) = CHF 4000/-  Marketing Manager (Monthly Wage) = CHF 2000/- Cost of one Tpad :  Manufacturing and Shipping Cost = CHF 60/-  Selling Cost = CHF 80/-  We receive a order in the month of August for 1500 Tpads  Total Manufacturing Cost and Shipping = CHF 90000/- submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16
  11. 11. 11  Discount (as it is a bulk order ) = CHF 10000/-  Our Selling Cost 1500 * 80 = CHF 120000 + 10000  Total Income = CHF 130000/-  Another order in December for 2000 Tpads  CP per Tpad @50 = 2000*50 = 100000  SP @80 = 2000*80 = 160000 Year 2012-13 Income & Expenses Total Months Income (Sales) Expenses Marketing EX Wages June - - 1000 6000 -7000 1000 6000 -7000 6000 44000 July August 130000 80000 September 1000 6000 -7000 October 1000 6000 -7000 November 6000 -6000 December 6000 -6000 6000 54000 January 160000 100000 February 1000 6000 -7000 March 1000 6000 -7000 April 1000 6000 -7000 May 1000 6000 -7000 -8000 -72000 30000 Year End Total Profit 290000 -180000 290000 – 180000 – 8000 – 72000- = 30000 Total profit at the end of the year = CHF 30000/- submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16
  12. 12. 12 Considering the Setting up Cost We have profit of CHF 8000/- The First Year Setting Up Cost 22000 Year End Profit 30000 Tax 2000 Profit After Tax 6000 Starting Second year  Up gradation with inbuilt dictionary in Last Year sold 3500 tpad @ CHF 50/- =175000/-(june)  Softawre for inbuilt dictionary installed lump sum @10000/- (Cost Price)  Sold 2000 more Tpad with up gradation  SP = 50+80 *2000 = CHF 260000/- December  CP = CHF 100000/-  Hired a IT guy for up gradation & Marketing Compensation CHF 3000 per month Year 2013-14 Income & Expenses Total Months Income (Sales) Expenses Marketing EX Wages June 1750000 10000 1000 9000 155000 July 1000 9000 -10000 August 1000 9000 -10000 September 1000 9000 -10000 October 1000 9000 -10000 submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16
  13. 13. 13 November 1000 9000 -10000 1000 9000 150000 January 1000 9000 -10000 February 1000 9000 -10000 March 1000 9000 -10000 April 1000 9000 -10000 May 1000 9000 -10000 -12000 -108000 205000 December Year End Total Profit 260000 100000 435000 -110000 435000 – 110000 – 12000 – 108000 = 205000/- Total profit at the end of the year = CHF 205000/- Starting Third Year  Up gradation of 5500 tpads @ 50 = CHF 275000/-  Buying this Translator software for lump sum CHF 25000/-  Hired an office assistant for calling and fixing appointment and keep track of accounts @ 3000/ per month  Received order from Zurich of 4000 Tpad with up gradation  CP @ 50 *4000 = CHF 200000  SP @ 80+50+50*4000 = CHF 720000  Hired another IT guy @ 3000/ per month  Raised salary of Marketing Manager to 3000/- submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16
  14. 14. 14 Year 2014-15 Income & Expenses Total Months Income (Sales) Expenses Marketing EX Wages June 275000 25000 2000 13000 235000 July 2000 13000 -15000 August 2000 13000 -15000 September 2000 13000 -15000 October 2000 13000 -15000 November 2000 13000 -15000 2000 13000 505000 January 2000 13000 -15000 February 2000 13000 -15000 March 2000 13000 -15000 April 2000 13000 -15000 May 2000 13000 -15000 -24000 -156000 590000 December Year End 720000 200000 995000 -225000 Total Profit 995000 – 225000 – 24000 – 156000 = 590000 Total profit at the end of the year = CHF 590000/- Balance Sheet Assets Amount Liabilities Amount Capital 22000 Cash - Account Payable 180000 Petty Cash - Marketing Expenditure 8000 submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16
  15. 15. 15 Accounts Receivable 290000 Taxes Payable Income Tax 1000 2000 Sales Tax 1000 Payroll Accrual Profit 290000 - 284000 Total 6000 Total 290000 72000 290000 Break even Analysis Debit Average Selling price / unit Credit 80 Average Cost price/unit 60 Gross Profit Margin/unit 20 Fixed Cost - CHF break Even No. of unit sales to break even 1100 units *80 = 88000/66000=22000 submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16 22000
  16. 16. 16 Conclusion The Product will have its own unique market segment which will further expand in future, ‘ Tpad ’ is here to stay and reach great heights, with its low pricing , light weight and unique features it will entice more and more customers towards it, it will bring about a change in all of reading fraternity it will be an evolution in the Hi-tech market with very less innovation but dedicated towards a unique process. submitted by Tunoy Mukherjee, Geneva Business School, May 2012-05-16

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