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Business Plan

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  • 1. “SYNERGIES CARE LIMITED”<br />THEME<br /> <br /> <br /> Submitted by-:<br />Ankit Gupta<br />Urvashi Arya<br />Pranjal Aeron<br />Deepak Khandodiya<br />Prasoon Varshney<br /> ACKNOWLEDGEMENT<br />The fact that we have been able to prepare this project report is due to help and support of many sources. We could not have achieved anything without those sources.<br />First of all we would like to express our enormous gratitude to our entrepreneurship professor Mr. Sray Agarwal for his continuous encouragement and guidance throughout the project. His way of thinking and converting ideas into something concrete helped us a lot. He was always there to encourage us, whenever we were down and looking for some support. He helped us to think in right direction and gave us his precious time in spite of having very busy schedule. We thank him for his timely guidance and the pains he took to make us complete this project report.<br />We are also thankful to our parents who were a constant source of inspiration to us. <br />Thank youContents<br />Executive Summary 4<br />Company Overview 5-6<br />Nature of business<br />Mission & vision Statement <br />Company Goals and Objectives<br />Legal form of ownership<br />Industry Analysis7-8<br />Market Place Analysis 9-10<br />
    • Target Market/Customer Base
    • 2. Characteristics of the target market:- Demographic profile (age, income, sex, education)- Business customer (industry, size, purchaser)- Geographic parameters
    • 3. Market segmentation
    • 4. Customer buying habits
    • 5. Swot analysis
    Market Plan 11-12<br />
    • Product/Service description
    • 6. Pricing policy/objectives/methods
    • 7. Promotion strategies
    • 8. Sales forecast
    Operational Plan 13-15<br />Key Management Personnel 16-18<br />EXECUTIVE SUMMARY<br /> Synergy Care Limited (S.C.L) will establish a pharmaceutical manufacturing plant in Gurgaon, Haryana, to fulfill the requirement of drugs in India and abroad. The plant will manufacture generic drugs at most competitive prices. It will offer Tablets, Capsules, Injections, Dry Syrups, Oral liquids, Protein Powders etc. <br />Synergy Care Limited is an integrated, research based, international pharmaceutical company, producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across Globe. <br />The Synergy care limited will be located on 10 acres with an additional three acres dedicated for transportation, storage and parking facility. The area will be completely fenced for security purpose. Synergy Care limited is primarily focused on increasing the momentum in the generics business. It will evaluate acquisition opportunities in India, emerging and developed markets to accentuate its business and competitiveness. The Company’s growth is expected to be well spread across geographies with near equal focus on developed and emerging markets. <br />The S.C.L will also encourage health consciousness among people by setting up health campaigns time to time in different regions.<br />S.C.L will engage leading experts to help plan and develop the factory. Senior management has been a member of the Indian Medical Association.<br />In its first year, the Company believes it will attract 1,025 daily weekday customers and 3,333 daily weekend customers, with sales forecast (worst case) of 18 crores and best case (30 crores) by next year.<br />COMPANY OVERVIEW<br />Name & logo of the business<br />The S.C.L (Synergies care limited) is a private company and will be opening a pharmaceuticals manufacturing enterprise. The pharmaceuticals industry in India is growing at the rate of 9% and close to Rs 400 - Rs 500 billion was invested in the Indian market last year. This figure is expected to double in the next few years. There are over 20,000 registered companies across the country today and few more are expected in 2008. <br />The company will fulfill the medical needs of general public by providing medicines at affordable price. Within the targeted area of around 239,859 sq km, the population numbers more than 18 crore people.<br />In addition to pharmaceuticals enterprise, S.C.L will also provide new jobs in as well as it will arrange free health campaigns time to time. <br />Mission statement<br /> <br />“Our aim is to help people lead healthier lives by making medicines affordable and accessible in all parts of the India so that as many people as possible benefit from them.” <br /> <br /> <br />Vision statement<br />“The Company is driven by its vision to achieve significant business in proprietary prescription products by 2012 with a strong presence in Indian market and to be among the top 100 Indian generic players by the year 2012”. <br />Company Goals and Objectives:<br /> To achieve the necessary growth and profit in the business, the<br />S.C.L will:<br />Bid for acquiring commercial plot in Gurgaon.<br /> Retain consultants for S.C.L in the following areas:<br />- Feasibility Study <br />- Drug’s raw material and manufacturing <br />- Builders<br />- Marketing and Advertising <br />- Plants and machinery equipments<br />- Warehousing and packaging <br />- Transportation<br />- Distribution of free samples<br />Initiate marketing plans to facilitate a health checkup camp prior to opening.<br />The development of an overall sample distribution and salt introduction programs to doctors and wholesalers will be completed in the first quarter of 2009.<br />Regulate growth of the company in such a manner to not exceed cash flow Establish a working relationship with Board of Directors with operational and property management consultants.<br />Hire people mostly B.pharma graduates and necessary Scientists for daily activities.<br />Build a staff of s full-time professional employees and up to 90 part-time Employees.<br />Grow 2009 revenues to 30 crores.<br />Grow the area of distribution each year.<br />Develop a reputation that will exceed competitors in every area.<br />Legal Form of Ownership: <br />The S.C.L will be privately capitalized for Rs 18 Crore. It will be registered with the registrar of company one factor is a must: The CMD owns controlling stock. And there are sound provisions for both ownership and management succession. The biggest asset a private company has is stability and long-term thinking.<br />INDUSTRY ANALYSIS<br />3835400223520Giving a Consideration to India's large population, the Pharmaceutical sector of the Indian economy holds out promise for investors, both domestic and foreign.  <br />The industry is ranked fourth in the world in terms of production volume and 13th in domestic consumption value. The industry reached $ 6.2 billion in 2006, which represents about one percent of the global industry size i.e. $ 643 billion in 2006.<br />From 2008-12, the industry is expected to grow three-fold in terms of both number of companies and total investment intake.<br />Between 2008 and 2012, an estimated 400 new companies are expected to be built all over India.<br />However, earlier there were lesser legal formalities required for entry in pharma business. As for now there are 20 legal formalities to be fulfilled before entering into the business.<br />The industry has been growing at a compounded annual growth rate (CAGR) of 11.42 percent from 2001 to 2006.<br />According to a report by McKinsey, Indian pharmaceutical industry has the potential to reach $ 25 billion by 2010. The factors that could materialize this target include a world-class patent regime and an environment that fosters innovation and entrepreneurship<br />Entry Barriers<br />The primary barrier to the company is controlled by three factors:<br />Cost of land<br />Cost of plant and machinery.<br />Legal formalities and license requirements.<br />Market Share:<br />The market share for synergy care limited will be dependent upon the effectiveness of the marketing plans and customer databases. Other pharmaceuticals companies have customer database for their variety of products. S.C.L has a customer base through Neuro drugs (drugs for mental health) & other prescribed and non prescribed drugs. Our competitive and affordable prices will gives us an advantage. S.C.L intends to level the playing field with an aggressive advertising and promotion budget<br />MARKETPLACE ANALYSIS<br />Target Market/ Customer base<br />Till today in Indian market the neurological drugs are not affordable by everyone. They are quite expensive in India. The National Institute of Health predicts, if the current trend continues, there will be more than 4.5 million patients suffering from Brain disorders. The current consumer size of the market is very less and is growing at a rate of 7 percent per annum. <br />The target market will include:<br />Elderly people<br />Non -prescribed drug consumer<br />Neurological surgeons.<br />Geographic location: Near Delhi, NCR<br />Customer buying habits:<br />As we know that neurological disorders can’t be treated in a day or a week time. A patient requires medicine for few months or years or sometime for the whole life. So, if we will enter the market once successfully than our revenues we definitely go high and there will be continuous growth. If we will be able to penetrate the market successfully then we will have a regular buying pattern.<br />COMPETITIVE STRATEGY<br />
    • Whereas the other companies provide neurological drugs at prices which are not affordable by everyone S.C.L will provide the salts for neurological ailments at affordable prices.
    • 21. Our other products include both prescribed as well as non prescribed drugs will also be available at competitive prices.
    • 22. The S.C.L will also encourage health campaigns time to time; this will help us to popularize our products.
    SWOT ANALYSIS:<br />Strengths<br /> All kinds of neurological drugs at affordable prices.<br /> Booming pharmaceuticals industry in India.<br />Weaknesses<br /> Unknown entity, both to market and customers.<br />Opportunities<br />Other type of drugs like cardiovascular, retro viral etc.<br /> Research work and new drug development<br /> Threats<br />High Competitive environment.<br /> Duplicity of drugs.<br />MARKETING PLAN<br />PRODUCTS:<br />Neurological drugs:-<br />Zolpidem tortrate Alprazolam 1 mg<br />Haloperidol 1.5/5/10 mg Clobazam 10 mg<br />Mirtazapine 15/30 mg Olanzapine 5/10 mg<br />Alprazolam+Sartraline Flunarizine Hcl 5/10 mg<br />Sertraline hcl 50/100 mg Duloxetine 20/30 mg<br />Sodium Valproate+ Valproic Acid 200/500 mg Clozapine 25 mg<br />Resperidone1/2/3/4 mg<br />Other prescribed drugs:-<br />Ciprofloxacin 250/500 mg Norfloxocin 500 mg<br />Norfloxocin+tinidazole Clorazepam 1/2/5 mg<br />PROMOTION<br />Promotion through<br />
    • Visual aid folder Order book
    • 23. Detailing story Visiting cards
    • 24. Product scientific detail Reminder cards
    • 25. Sample catch cover Gifts articles
    • 26. Leave behind card Health Campaigns
    PRICING – Each drug is priced at a different rate, however the prices will be quite affordable as well as competitive.<br />Sales Forecast<br />The Company believes it can achieve significant sales in the next twelve months by reaching its customer targets.<br />SALES FORECAST<br />Best Forecast: 30 Crore / year<br />Worst Forecast: 18 Crore / year<br />OPERATIONAL PLAN<br />LEGAL ENTITIES AND LICENCES REQUIRED<br />1. Legal Structure<br />The COJ will be privately capitalized for Rs 18 Crore.It will be registered with the registrar of company. A Board of Directors will be chosen based on their financial capabilities, professional experience and a strong understanding of business and property management.<br />2. Location<br />The Company will operate out of the Carnival of Joy Amusement park in Gurgaon, Davoda across 70 acre. Business office at DLF.<br />3. Intellectual Property<br />COJ intends on maintaining a website at www.carnivalofjoy.com to market its services. No other proprietary intellectual property is owned at this time.<br />How to apply for approval<br />If one has a feasible proposal for setting up an amusement park, rush your application in the enclosed format to the Directorate of Tourism, Haryana for approval. The application shall be made in quadruplicate.<br />Documents to be enclosed with the application<br />Project report establishing the feasibility of the proposed centre and describing the amenities to be provided at the centre. Suitability of the proposed project site. This will be based on accessibility and basic infrastructure like water supply, electricity and other communication facilities. Permit from the local authority with copy of the approved plan and proof of ownership of land.<br />Ownership details:<br />i. Name and business antecedents of the promoters<br />ii. Proposed ownership structure.<br />iii. Estimated cost of the project and the manner in which it is proposed to raise funds to meet the cost.<br />A detailed site sketch showing the location of the project with respect to the nearest major transportation network.<br />Application fee<br />Your application should be accompanied by a fee of Rs. 5000/- for an amusement park in the form of a Demand Draft favouring the Director, Department of Tourism, Government of Haryana. The fee is not refundable whether the project is approved or not.<br />Project appraisal<br />Every project will be meticulously appraised by the special committee constituted for the purpose.<br />Financial incentives offered to approved projects<br />Investment subsidy limited to 10% subject to a ceiling of Rs. 10 lakhs.<br />Support to avail loans from state financial corporations.<br />Concession in electricity charges.<br />Guidance and publicity support from the State Government<br />Entertainment tax by Haryana government – 30%.All equipment will have to be certified by BIS before being installed, for safety.<br />SERVICE BLUEPRINT<br /> PhysicalEvidence Customer Actions Employee Actions Face-to-face Front Stage Phone ContactFor early booking of tickets, and checks for any theft or lossEnter at ticket counter Gatekeeper greets, valet takes car Enter Data for records Valet Parks Car Security staff verifies the ticket and checks for securityGo inside the park Amusement exterior,employeesAutomated machines for re-checking the ticketsLine of InteractionLine of VisibilityArrive, valet parkCheck out the ridesOperates the ridesWork with security surveillance by closed circuit TV<br />Backstage <br />Staff requirement<br />Management: 8 Members<br />Supervisors: 6 Members<br />Executives: 35 Members<br />Part- Time Employee: 40 Members<br />Others: 300 Members<br />The Company’s management team is well balanced in talents and experience and is supported by a highly qualified Board of Advisors.<br /> Suppliers:<br />Adlabs-For animated studios<br />HI-tech-For rides equipments<br />Malls:-<br />The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof. Examples include Shoppers Stop, Piramyd, Pantaloon. <br />Specialty Stores:<br />Chains such as the Times Group's music chain Planet M, ITC’s Will’s lifestyle are focusing on specific market segments and have established themselves strongly in their sectors.<br />Department Stores:<br /> Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc. Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, are K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop!, Westside, globus<br />Convenience Stores: <br />These are relatively small stores 400-2,000 sq. feet. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium.<br />Key Management Personnel<br />-457200101600<br /> Important duties of Management in Carnival of Joy<br />- Assist in development of business plan<br />- Development of marketing strategy and plan<br />- Development of operating strategy and plan<br />- Development of operating budget<br />- Management of staff recruitment<br />- Interviewing, hiring and placement<br />- Staff training<br />- Development of policies and procedures<br />- Implementation of marketing plan<br />- Park opening and start up plan events and actual operations<br />- Monitoring and controlling of budgets<br />- Cash control systems<br />- Work with security surveillance by closed circuit TV<br /> Heritage Investments will provide asset management and property management for C.O.J and will be responsible for the following duties:<br />- Payroll<br />- Accounts Payable<br />- Providing tax information to the Accountant<br />- Coordinating with operational management regarding safety, insurance issues, and staffing<br />Directors. Responsibilities<br /> <br />Park will be evaluated by their Board of Directors. They will be responsible for recommendations to the operational director, the property management of company and the investors in the C.O.J. The recommendations of the board will follow the outline below:<br />Review income expense with the park recommendations to maximize the net income.<br />Review operational procedures that include safety, staffing, training, and new revenue sources.<br />Review the marketing plan recommendations and assist the operational managers in selecting their target income and an overview of what they would recommend to increase the number of admissions to the park.<br />Ticket pricing.<br />Concessions with comments on quality of food, pricing of food sales, selection of menu and any additions or deletions to the food concession menu.<br />Review locker income and equipment sales and make recommendations on how to improve net income food concessions.<br />Review the country store operations, gross income, sale items, and make recommendations to add or delete sale items that are carried by the general store.<br />Review all cash control, computer programs, and reporting procedures.<br />Review physical plant and make recommendations for improvements and additional attractions.<br />Review insurance and safety issues with the park to include evaluation of each park component with regard to the number of injuries or incidents with the park operations.<br />Maintenance review will include all maintenance performed on the facility plus the additional supplies used from the maintenance department.<br />Review the park components and make recommendations on additional attractions that would be beneficial to the increase in park gross revenues.<br />Any attractions added to the park will be coordinated with the marketing arm of the water park in order to optimize advertising potential.<br />Review the security communications and general park appearance. Board of Directors will review all financial data at the end of the year.<br />The financial evaluation will review all aspects of the park and make recommendations for expenditure; decrease in expense and increase in revenue plus the potential for selling the property should be reviewed every year.<br />The sale of the Park will be determined by the Board of Directors and approved by the partners of C.O.J<br />The primary function of the Board of Directors is to recommend Operation Strategies and Revenue Increases<br />Compensation-Overview<br />Presidents’ 30,00,000/- (Annually)<br />VP’s: Rs. 20,00,000/- (Annually)<br />Head of Departments: Rs. 11,00,000/- (Annually)<br />Executives: Rs. 2,16,000/- (Annually)<br />Supervisors: Rs. 1,80,000/- (Annually)<br />Others: As per contract (Approx. Rs. 2500/- to Rs. 3500/- pm)<br />FINANCIAL PLAN<br /> <br />The Company is seeking a 20 crores bank loan to execute this business plan. C.O.J intends to use these funds to develop and build out the amusement park. Remaining funds will be used for sales, marketing and staffing expense.<br />Ownership of the Company is providing 18 crores in capital. The loan to value (LTV) ratio on the bank loan is 42.85%. The loan will be amortized over twenty years.<br />However, the ownership intends to retire the loan in ten years. The loan will provide for additional voluntary principal payments of up to 5% of the original loan amount annually<br />INITIAL SET UP COST<br />Total cost – 200 cr.<br />Raw material-40cr<br />Labors-30cr<br />Direct expenses<br />(Wage, freightinward, etc)-50cr<br />Factory overhead <br />(salary,electricity bill,telephone exp,machine repair, factory insurance,etc.)- 38cr.<br />Administration and Selling and Distribution Overheads<br /> (Salaries, sales promotion, training, staff welfare, legal fees, consulting fees, etc.) – 42cr<br />BREAK EVEN ANALYSIS<br />Break even point is the sales volume at which revenue equal cost i.e., no profit no loss).<br />Break even = fixed cost*100/contribution<br />Contribution=100-% of variable cost to sale<br />Sales- 300cr<br />Variable cost-120cr<br />Fixed cost-60cr<br />Contribution=100-120/300=9.6<br />Break even=60*100*/9.6=625cr<br />PAY BACK PERIOD<br />Payback (period) method is the exact amount of time required for a firm to recover is initial investment in a project as calculated from cash inflows.<br />PB=investment/constant annual cash flow<br />PB=1000cr/200=5yr<br />RISKS AND CONTINGENCIES<br />There are unseen risks to all the amusement parks and carnival rides. Thousands of injury and accidents happen at carnival rides and amusement park rides. <br />An amusement park accident can happen from poor construction plans, defective construction of the ride, from an employee error, bad training and even negligence. Safety devices can and do fail also causing amusement ride accidents.<br />Fear is the stock in trade of many theme parks, where children and adults relish the thought of being scared to death by gravity-defying rides. But the fright is all in fun. Visitors leave their real world worries at the gate. Behind the scenes, however, park managers are aware of all the threats that could keep the good times from rolling. And they have prepared contingency plans for each. For a theme park, the range of potential disasters is large. Natural disasters, such as sudden storms, tornadoes, hurricanes, floods, and earthquakes, represent one aspect of the threatscape. Mechanical problems, such as when a fast-moving roller coaster malfunctions, leaving children stranded upside-down, are another. Other threats include fires or a bomb scare that could cause panic and a stampede. Even an emergency at a nearby factory could create problems, resulting in the need to evacuate tens of thousands of visitors from the park. <br />Whatever the emergency, any financial effects can have long-term ramifications because, given the amusement industry's seasonal nature, lost business days are not easily recouped. Even worse, damage to a facility's reputation could be fatal. <br />To keep an amusement park from becoming a house of horrors, management needs to develop a comprehensive contingency plan, which in the industry is referred to as an emergency response or emergency action plan. As with any other industry's plan, the goal is to set out how the staff should respond to an event in an efficient and professional manner while minimizing the impact to the business operation. <br />In most facilities, the security, safety, risk, or loss prevention manager reports directly to the general manager, ensure that he or she always has the ear of the facility's executives. Their assistance and input is critical to the completion and success of the plan. Getting amusement-facility managers to buy in to security is not difficult, however. Because the industry is so unforgiving, safety and emergency planning are considered even before the facility is built; everyone, from the owners and developers on down, understands that these issues must be addressed to create a successful venture. <br />Threat assessment: The first step in creating an emergency response plan is to conduct a threat assessment. Managers from across the enterprise should be involved in this process, including the head of the food service department and the director of maintenance. The threat assessment starts with the obvious threats to a business such as fire, robbery, and power outage. Depending on geographic location, threats such as earthquakes, tornadoes, and flooding may also be considered. <br />Nearby businesses and existing infrastructure must be taken into account as well. An airport, chemical factory, or nuclear power plant in the vicinity presents risks that must be factored into the assessment. Train tracks or a highway frequented by tractor-trailers even several miles from the park may also present danger from hazardous materials spills. <br />In addition, like other businesses that attract enormous crowds, theme parks must consider crimes such as kidnappings, shootings, and fights. <br />When It " Rains" on Parade<br />What you might do to make the crowd safer:<br />Limit the speed of motorized vehicles in your parade to 10 mph. <br />Restrict drivers (including clowns on bicycles or unicycles) from weaving or swerving towards the crowd. <br />Forbid throwing of candies, toys, trinkets or other items into the crowd, or only permit entrants walking along the curb to hand out such items, to prevent small children from running onto the parade route. <br />Require that animals be under control at all times: those riding on floats must be tethered to the float; experienced equestrians must handle horses. <br />Bar fireworks, starter pistols and canon; moderate the level of amplified sound effects and music, which can startle animals or drivers. <br />What you might do to make entrants safer:<br />Limit the length, height and width of floats to dimensions that accommodate the route's street widths, turns, bridge clearances and overhanging branches. <br />Require all decorations be fire retardant. <br />Insist that each float carry a fire extinguisher. <br />Require that floats carrying people to have secured handrails that riders must grasp at all times, and that no one extend arms or legs beyond the edges of the float. <br />Prohibit anyone in the parade from using alcohol or drugs prior or during the event and from smoking anywhere near floats or costumes in the staging area or during the event. <br />Require that vehicles be in good mechanical condition. <br />Specify there must be two unimpeded, quick exits from the vehicle for the driver. <br />Monitor weather conditions and make adjustments as needed. <br />Races that may run wild<br />What you might do to level the playing field:<br />Find out what laws pertain to your event and make certain that you follow the laws' intent. <br />Verify that there is handicapped parking and how close it is to the event entrance. <br />Make certain the terrain between parking space and entrance is accessible: smooth pavement, ramps or elevators. <br />Require handicapped-accessible bathroom facilities. <br />Set up registration tables at a height convenient for those seated or standing. <br />What you might do to make the marathon route safer:<br />Work with a local runners club to map out the best route for your competition. <br />Publicize the route well in advance and publish/post a map of the route with start and end times on the day before the race. <br />Enlist the help of local law enforcement to block streets intersecting with the route and to direct traffic elsewhere and clear the route of all parked vehicles the night before the event. <br />Assign a lead vehicle to proceed the front runners by and eighth of a mile and a " sweep" vehicle to trail the last runners by the same distance. <br />What you might do to improve safety in a high-risk event.<br />Decide whether or not the event is worth the risks. <br />Prepare for how you will respond should the risks materialize and whom you can call on for help. <br />Develop a set of criteria for when to postpone or cancel the event. <br />Provide onsite medical care, as well as procedures for transporting people to offsite care. <br />Require appropriate personal protective equipment be worn and competitors to train for a specified length of time or to a specified level for the event. <br />APPENDICES<br />1. Application format for approval of amusement parks<br />1. Name of the  centre....................................................... <br />2. Name of promoters.........................................................................    (a note giving details of business antecedents may be enclosed)<br />3. Complete postal address of promoters..........................................<br />4. Status of owners /promoters............................................................ whether a company   yes/no(if yes a copy of the Memorandum& articles         should   be furnished) orb. Partnership firm yes/no(if yes , a copy of partnership deed and certificate of registration under the Partnership Act should be furnished) or<br />c. Proprietory concern yes/no (if yes, give name and address of the of the proprietor/s)........................................................................................................<br />5. Location of the site ........................................<br />6. Details of the site: a Area............................................................................<br />b. Title.................................................................................................................<br />Whether outright purchase yes/no(if yes, a copy of the registered sale deed should be furnished) Or on lease yes/no( if yes, a copy of the registered lease deed should be furnished)<br />c. whether the required land use permit for the construction of the Centre on it has been obtained. yes/no(if yes a copy of the certificates from the concerned local authorities should be furnished)<br />d. Distance from railway station........................................................................<br />e. Distance from airport......................................................................................<br />f. Distance from main shopping centre.............................................................<br />7. Details of proposed Amusement park/ Recreation centre/Exclusive handicrafts emporium ( A copy of the project/feasibility report should be furnished)<br />a. Facilities Provided .......................................................................<br />b. Blue prints of the sketch plans of the project ( A complete set duly signed by the architect /engineer should be furnished including site plan, plan elevation and sections of the building ...................................................................................................<br />8. Proposed capital structure<br />a. Total estimated costi. Equity Rs.......................ii Loan Rs. ...................................................b. Equity capital so far raised Rs..........................................................c.i. Sources from which loan is proposed to be raised......................ii. Present position of loan.....................................................................9. Application fee       (A demand draft for Rs.5000/- for Amusement Park, Rs. 2000/- for Recreation Centre , and Rs. 1000/- for Exclusive Handicrafts Emporium, drawn in favour of the Director, Department of Tourism, Government of Kerala, Park View, Thiruvananthapuram to be enclosed with the application.)<br />Place                                                                                        Signature<br />date                                                Full name & designation of the applicant <br />2. The Walt Disney Company-a case study<br />The Walt Disney Company was funded in 1922, and has became a world leader in family entertainment. Today, the company is operating on a multinational level, and has over 58,000 employees world wide, and over 189,000 share holders. What are the factors that contributed to the company's successes and failures on its way towards becoming the World's largest family entertaining company? I would like to answer the stated question by analyzing the following four factors; <br /> (1) Disney's industry in relation to Porter's Five-Forces Model,<br /> (2) the strengths and the weaknesses and the opportunities and the threats that the company is facing (a SWOT analysis), <br /> (3) the corporate-level strategy and finally, financial trend for the years 1989 through 1991. <br />In addition, I would like to deliberate on the strategic changes and tactical changes that are needed to be made at the Walt Disney Company. <br />Porter's-Five-Forces Model focuses on the external environment that the company has to be able to cope with. The first force to be discussed is the threat of new entrants. Since the Disney company has been able to find a very distinctive niche in the industry, the entrance barriers are relatively high. The company has been able to grow over a long period of time, and has developed from within the departments of Research and development, marketing, and finance. By relying on past experience, company officials know to a large extent what the target customer wants. As Disney pretty much dominates the family entertainment market, it will be very difficult for such a new organization to develop brand recognition/identification, and product differentiation. Disney has focused of market diversification for years and the company covers a wide array of products and services. Being a market leader has made it possible for the company to practice effective economies of scale in production. For example, over 500,000 copies of the Videocassette " Pinocchio" was sold in only two months, and has 20-30 million visitors to its theme parks every year. In addition, extremely large amounts of capital investment is required for new entrants into the industry. The capital requirements are extremely high. For instance, Disney spent USD3.6 billion in its European theme park (Euro Disneyland). Only very large companies can meet such large capital requirement. Lastly, the government policy towards the industry appears to be very favorable. The French government invested USD 1.2 billion (40%) in Euro Disneyland, provided public transportation facilities, provided a large tax relief (from 18.6% to 7%) on the cost of goods sold. <br />The bargaining power of customers is high in the service and in the entertainment industry. Since a large number of customers are needed to make Disney's operations run smoothly, the customers have certain powers. For instance, if the price on a particular home video is too high, customers may be reluctant to spending the money needed to purchase the product. Another example is the entrance fee charged at Disney's theme parks. It is stated in the case that the maximum amount of money that customers are willing to pay is USD 33. Furthermore, the entertainment industry does not save the buyer money. Instead it is designed in a way that it will make the buyer spend more. A majority of Disney's product mix focuses on intangible returns on the buyer's money. The case that some customers may not realize that they are getting such a return may increase the bargaining power of the customers. <br />The bargaining power of suppliers is moderate. As the Disney company is operating in a highly differentiated and unique industry with high switching costs associated with operations, the suppliers are dominated by a few companies and is most probably very concentrated. However, Disney is a unique and important customer of many of the suppliers. Furthermore, the size of the company may certainly be a great advantage. By being able to order large volumes of unique products from unique suppliers, will create a dependency relationship in the industry. <br />The threat of substitute products or services is moderate to low. Obviously, other cartoon figures, theme parks, and movies can penetrate the market in which Disney is operating in, but I do not believe that this is representing a significant threat. The Disney company has already placed price ceilings on many of its product lines, and should be able to compete with new competitors. However, the threat alone of new entrants into the market requires Disney to hedge against such risk by concurrently upgrading products and services. <br />. <br />External opportunities should be recognized, analyzed, and responded to in a very early stage. The Disney company is facing several external opportunities, however, presently I believe that the external threats facing the company are out-numbering the opportunities. Opportunities includes the following; Positive government attitudes towards its operations, Barriers of entry are significant, and the entertainment industry itself. <br />Legal and legislative forces are usually identified as being negative external factors to a company. Ironically, in Disney's case, the French government contributed greatly in the Euro Disneyworld project. The French government invested over USD 1.2 billion in the project, built communication facilities, and gave Disney tax relief's on cost of goods sold accounts. In addition, since the barriers of entry into the highly specialized industry in which Disney is operating, competition will find it difficult to penetrate the company's highly diversified product/service mix. Furthermore, large initial capital investments are required to enter the industry. <br />Site Map<br />CASH FLOW STATEMENTS FOR THREE YEARS<br />Cash Flow Statement for the year ended on April 2007SL.noParticularsAmts Rs.Amts Rs.ANet profit794  ADD- Adjustments   preliminary exp656 B Cash from operating activities   Creditors400  Provision for taxation180  Stocks200  Debtor 1830    CCash from Investing Activities   Purchase of Land and Buildings2500  Purchase of Plants and Machines1010        -3510    DCash from Financing Activities       Raised loans from Banks16501650     Net Cash inflow/ outflow -30 Add- opening cash balance  780     Closing cash balance 750    Cash Flow Statement for the year ended on April 2008ParticularsAmts Rs.Amts Rs.Net profit852 ADD- Adjustments1229 preliminary exp467 Cash from operating activities  Creditors300 Provision for taxation250 Stocks268 Debtor6502180   Cash from Investing Activities  Purchase of Land and Buildings2650 Purchase of Plants and Machines1030      -3680   Cash from Financing Activities     Raised loans from Banks16501650   Net Cash inflow/ outflow 150Add- opening cash balance  380   Closing cash balance 530   Cash Flow Statement for the year ended on April 2009ParticularsAmts Rs.Amts Rs.Net profit1096 ADD- Adjustments423 preliminary exp700 Cash from operating activities  Creditors600 Provision for taxation360 Stocks268 Debtor6002311   Cash from Investing Activities  Purchase of Land and Buildings2650 Purchase of Plants and Machines1030      -3680   Cash from Financing Activities     Raised loans from Banks16501650   Net Cash inflow/ outflow 281Add- opening cash balance  380   Closing cash balance 661   <br />P&L ACCOUNT OF COJ FOR 3 YEARS<br />Trading and Profit and Loss Account of COJ for the year ending on April first Year 2007       (All figure in 00,000)   TO PURCHASE 1000  BY SALES      LESS- RETURN 100900  TICKETS 2000         FOOD STALL 500    TO WAGES 150  Shopping Mall 5003000   TO FRIEGHT INWARD 50           BY CLOSING STOCKS 200             TO GROSS PROFIT 2100                   3200   3200                       To Salaries 200 BY Gross Profits 2100   To Sale Promotion 100 By Rent received 100   TO Advertisement  75       TO Computer Maintenance 5       To Employee Uniform 10       TO Legal Fees 24       TO Insurance 100       TO Rent Paid 300       TO Staff Welfare 150       To Telephone Expenses 100       To Interest on Loans  35       TO Repair 10       To Training 10       TO Real Estate Tax 7       To Preliminary Expenses 100       To Income Tax 180       To Net Profit 794                             2200   2200            <br />Trading and Profit and Loss Account of COJ for the year ending on April first Year 2008 (2nd year) to opening stock200    (All figure in 00,000)   TO PURCHASE 1100  BY SALES      LESS- RETURN 110990  TICKETS 2400         FOOD STALL 550    TO WAGES 165  Shopping Mall 6003550   TO FRIEGHT INWARD 55           BY CLOSING STOCKS 240             TO GROSS PROFIT 2580                   3790   3790                       To Salaries 200 BY Gross Profits 2580   To Sale Promotion 110 By Rent received 120   TO Advertisement  100       TO Computer Maintenance 12       To Employee Uniform 10       TO Legal Fees 24       TO Insurance 120       TO Rent Paid 200       TO Staff Welfare 190       To Telephone Expenses 110       To Interest on Loans  50       To discount 110       To depreciation 150       To Repair 15       To Printing & Stationary 50       To Training 10       TO Real Estate Tax 7       To Preliminary Expenses 130       To Income Tax 250       To Net Profit 852                   2700   2700     2700                <br />Trading and Profit and Loss Account of COJ for the year ending on 3rd Year April, 2009 to opening stock240    (All figure in 00,000)   TO PURCHASE 1210  BY SALES      LESS- RETURN 1211089  TICKETS 2680         FOOD STALL 660    TO WAGES 165  Shopping Mall 7204060   TO FRIEGHT INWARD 60           BY CLOSING STOCKS 268             TO GROSS PROFIT 3014                   4328   4328                       To Salaries 200 BY Gross Profits 3014   To Sale Promotion 130 By Rent received 120   TO Advertisement  120       TO Computer Maintenance 12       To Employee Uniform 10       TO Legal Fees 24       TO Insurance 120       TO Rent Paid 200       TO Staff Welfare 190       To Telephone Expenses 110       To Interest on Loans  50       To discount 110       To depreciation 170       To Repair 25       To Printing & Stationary 60       To Training 10       TO Real Estate Tax 7       To Preliminary Expenses 130       To Income Tax 360       To Net Profit 1096                   3134   3134     3134                <br />BALANCE SHEET OF COJ FOR 3 YEARS<br />Balance Sheet of COJ as on first Year 2007      LiabilitiesAmt. RsAmt. RSAssetsAmt. RSAmt. Rs      Share Capital  fixed assets        Authorised share capital100000000 Lands & Buildings2500    Plants and Machines1010                  3510  100000000               Reseves and Surplus  InvestmentsNil       Net Profit794    General Reserve1200            1994Current Assets & Advance        Secured Loans  Stocks200 IDBI BANKS (Mortages Loan@0.05%) 850Debtors450 ICICI BANKS (Mortages Loan@0.05%) 800Cash at Banks300    Cash in Hands35 Unsecured Loans 169  985                  Current Liabilites & Provision  Miscellaneous Expenses        Creditor 400Preliminary Expenses 656Provision for taxation 938                 5151  5151<br />Balance Sheet of COJ as on second Year 2008       LiabilitiesAmt. RsAmt. RS AssetsAmt. RSAmt. Rs       Share Capital   fixed assets         Authorised share capital100000000  Lands & Buildings2650     Plants and Machines1030     furniture50              3730  100000000                  Reseves and Surplus   Investments200200       Net Profit852     General Reserve1400              2252 Current Assets & Advance         Secured Loans   Stocks268 IDBI BANKS (Mortages Loan@0.05%) 850 Debtors650 ICICI BANKS (Mortages Loan@0.05%) 900 Cash at Banks430     Cash in Hands100 Unsecured Loans 180          1448              Current Liabilites & Provision   Miscellaneous Expenses         Creditor 300 Preliminary Expenses 467Provision for taxation 1040    Proposed Dividend 323             5845   5845<br />Balance Sheet of COJ as on third Year 2009       LiabilitiesAmt. RsAmt. RS AssetsAmt. RSAmt. Rs       Share Capital   fixed assets         Authorised share capital100000000  Lands & Buildings2650     Plants and Machines1030     furniture70     Motor Vehicle400       4150  100000000                  Reseves and Surplus   Investments100100       Net Profit1096     General Reserve1540              2636 Current Assets & Advance         Secured Loans   Stocks268 IDBI BANKS (Mortages Loan@0.05%) 850 Debtors600 ICICI BANKS (Mortages Loan@0.05%) 900 Cash at Banks530     Cash in Hands131 Unsecured Loans 180   1529                     Current Liabilites & Provision   Miscellaneous Expenses         Creditor 250 Preliminary Expenses 700Provision for taxation 1340    Proposed Dividend 323             6479   6479       <br />