Business Plan

1 MGEM - JEV Class Fu Jen Catholic University
Professor Daniel Yang MGEM Cohort 6 Spring 2015
Ding Sheng Student Service Center
Student Name: Stanley Yu (Dongxiang Yu) — MGEM Cohort 6 Student
Instructor: Professor Daniel Yang — MGEM Cohort 6 JEV Class teacher
Date & Time: 04/14/2015
Contact Information:
Tel: +886-0975-752-964 (Taiwan)
Tel: +86 - 13621959937 (P.R. China)
E-mail: stantico@outlook.com
Company Address: LM 208 Ricci Hall 510 Chung Cheng Road
HsinChung District, New Taipei City, Taiwan 24205

TABLE OF CONTENTS
EXECUTIVE SUMMARY.....................................................................................................................3
The Company ..................................................................................................................................3
The Opportunity ..............................................................................................................................3
The Technology...............................................................................................................................3
Value Proposition ............................................................................................................................3
The Products....................................................................................................................................4
Target Customer ..............................................................................................................................4
The Revenue....................................................................................................................................4
DING SHENG’s MISSION ....................................................................................................................6
DING SHENG: THE COMPANY..........................................................................................................6
WHY DING SHENG ..............................................................................................................................8
Business Opportunity ......................................................................................................................8
Competitive Advantage...................................................................................................................9
Value Proposition ..........................................................................................................................10
MARKET ANALYSIS .........................................................................................................................12
Macro Market ................................................................................................................................12
Market Analysis.............................................................................................................................12
Market Share Estimation ...............................................................................................................12
PRODUCT DISCRIPTION...................................................................................................................14
General Information ......................................................................................................................14
Information Part.............................................................................................................................14
Service Part....................................................................................................................................15
IMPLEMENTATION PLAN................................................................................................................17
General Information & Specific Plan............................................................................................17
Investment Scale............................................................................................................................17
MARKETING PLANNING..................................................................................................................19
SWOT Analysis.............................................................................................................................19
Target Customer ............................................................................................................................19
Sales Strategy ................................................................................................................................19
BUSINESS MODEL.............................................................................................................................21
FINANCIAL PLAN & FORCAST.......................................................................................................22
Financial Statements & Explanation .............................................................................................22

EXECUTIVE SUMMARY
The Company
Ding Sheng Students Service Center ( ) is a company that provides
personalized customer service to students who are studying abroad. Currently, the primary
mission of the company is to help student from Mainland China to get use to American life as
soon as possible.
The Opportunity
During recently years, the Chinese economy has grown significantly. As a result, more and more
family starts to become wealthy; as a result, more parents decide to let their children to study abroad.
Statistics have shown that for the year 2013, the American Institute in Shanghai China has issued
nearly 12,000 new visas to students who are from Mainland China; and there is a strong belief that
this number will continue to growth in the future. We believe that when the total number of student
who are going to study abroad continue to increase, the demand for school related information and
also services will be also increased.
The Technology
Building both a website and also some Smartphone apps are priority number one for my company;
besides that, we also plan to set up a call center, using cloud storage and computing, maybe also
corporate with some 3D companies (later), etc. It will ensure that our customer will not only receive
the best services that they ever had, but also they can access information any time and from any where.
Value Proposition
Carrying the mission of “Make American feels like a second home”, the value proposition for
Ding Sheng student service center can be descried as follow:
1) Charge the lowest price that is possible, but provide the best customer service.
2) Provide accurate, timely information to each of my customer.
3) Provide fully customizable service to each of my customer.

The Products
The products that our company provides can be divided into two parts, one part is the
information part, and the other part is the service part. Below is a brief description of our
products and services:
l Information part:
Currently, our company provides information about school surroundings, neighborhood
environment, etc. All these important necessary information will be provided to both students
and also their parents.
l Service part:
Currently, our company provides necessary services such as airport pick-up, procurement
service, etc. important necessary information will be provided to both students and also their
parents.
Target Customer
Our company can provids services to students and parents from all over the world, but currently we
decide to mainly focus on the Mainland China market. The target customer will be student who are
willing to study abroad/parents who are willing to send their children to study abroad.
The Revenue
Our company decides to sell products with low profits but for a big quantity. So based on the
view of financial prediction and market analysis, we are pretty confident that the estimated
annual sales return will keep growing. As we have estimated (more details in the financial plan
and forecast section) the total revenue and net profit for the first five years will be the
following:

Table 1. Total Revenue & Net Profit
Year
1
Year
2
Year
3
Year
4
Year
5
Total
Revenue
4.03 4.44 6.63 9.02 10.41
Net
Profit
18.4% 18.2% 17.9% 21.4% 18.3%
Note: For the table above, total revenue is being measured in US dollars, and the unit is
million.

DING SHENG’S MISSION
Ding Sheng will offer services for International Students (currently only for students who are from
Mainland China), our mission is “Make American feels like a second home”. Since these students are
going to step into a brand new environment, they may experiences feelings such as homesick, stress,
etc; and our job is to help them reduces these kind of feeling, so they can adapted into the new
environment quickly. In order to achieve this, we will offer the best service at the lowest price that is
possible.
DING SHENG: THE COMPANY
The implementation of reform and open policy has been successfully conduced in Mainland China,
after that more and more family starting to get wealthy. As a result, the majority of the family can
afford the amount money their children needed to study abroad; therefore, during recent years, the
amount of students who are studying abroad has increased significantly. Personally speaking, I have
been a foreign student for more than 10 years; therefore I do have a deep understanding of how they
will feel when they first begin their journey as a foreign student. Just like their parents, I hope all the
foreign students’ life can be smooth, which is why I choose this logo below to represent our company.
In Chinese culture, a circle always represents smooth; and in the middle of the circle is the word , it
signifies stable. By using this combination, we hope all foreign students’ life abroad will be smooth;
and we also hope our company will also last for a long period of time.

Ding Sheng Student Service Center will power up by a talent leader who has personal experiences of
being a foreign student in the past. In order to ensure the quality of the service, and also help the
company grow more quickly, it is my honor to invite Professor Daniel Yang to serve as the chief
advisor for this company.
Chief Executive Officer: Stanley Yu (Dongxiang Yu)
High School:
n Washington Academy — East Machias, Main, USA (2009)
College Education:
n B.S. Computer Science — University of San Francisco, SF, CA, USA (2014)
n M.S. Global of Entrepreneurship and Management— University of San Francisco, SF, CA,
USA (2015)
Chief Advisor Officer: Daniel Yang
GlobalTic Association — Taiwan R.O.C
Global TIC Award — Co-Founder & Consultant
UDM — CEO

WHY DING SHENG
Business Opportunity
Economy growth in China
December 1978, the Chinese Communist party has set up a magnificent plane, which was they plane
to spent 30 years to construct Mainland China into a brand new world; later this plan has been known
as the famous reform and open policy. With the successful implementation of this policy, the
economy growth in Mainland China was significant; lots families starting to get wealthy and wealthy.
Therefore, more and more families start to feel dissatisfied with lots of policies that are being
implemented in Mainland China; in fact, the education system was actually one of them. As a result,
studying abroad becomes a fashion instead of a need, since more and more family can afford the
amount of money their children needed to study abroad. More and more parents have decided to let
their children go abroad and study there. Looking at the statistics from multiple departments, the total
amount of Chinese students who are study abroad has increased about 10% during the last 3 years;
and this number are being expected to continue grow in the future.
No Google & Facebook service
Within Mainland China, Facebook services have been completely blocked for a long period of time.
Around year 2010, Google has accounted that they will also stop provide service to Mainland China
areas, since they are experiencing multiple issues with the Communist Party. It is quite obvious that
besides using the search engine Baidu, student from Mainland China have not other ways of searching
for information related to their school. But when students try to search for information relate to
foreign countries, Baidu is a terrible search engine to use. With the total amount of Chinese students
who are study abroad has increased significantly, we believe that the demand for information related
to foreign will also be increasing.
One Child Policy
Due to the One Child Policy in Mainland China, more and more children are being over spoiled by
their parents. As a result, they become quite lazy, and they are also highly depending on other people.
So rather than sped time search for information related to their school, arrange pick up, etc., they are
more willing to spend money hiring someone to do this for them. Together with the previous two

conditions, there is a strong reason to believe that we can generate a huge amount of profit by doing
this kind of business.
Aviation gasoline price increase
Within recent year, the aviation gasoline price continues to increase; as a result, lots of major airline
only allow their customers to check-in one luggage instead of two. So, it is impossible for students to
pack every that they needed into their luggage compartment. It is reasonable to say that student will
only pack items that are necessary to them, and they will purchase the rest of the items when they
arrive at their final destination. Therefore, we believe that there is huge market for the procurement
service. Together with the previous three conditions, there is a strong reason to believe that we can
generate a huge amount of profit by doing this kind of business.
Competitive Advantage
By analyzing the market and also our competitor, it is not too hard to find out the competitive
advantage that Ding Sheng has. Therefore, the competitive advantage for Ding Sheng can be quickly
described as follows:
We are the first one that trying to start a company which primarily focuses on this kind of
business. So it is more credible and also more regulated, we believe this will help us to avoid
some unnecessary problems and also better serve our customers.
We will set up offices both in Mainland China, and also the U.S., so customer can go ahead
locate us quite easily. They can come to our office, and discuss specific requirements that they
had with us.
Besides standard services, Ding Sheng also provides fully customizable services to any of the
customers who need it.
Since Ding Sheng will sale the products with low profit, but for a big quantity. It can be
guaranteed that Ding Sheng will charge the lowest price that is possible, but offer the best
services our customer has ever experienced.
The founder of this company do have personal experiences of being a foreign student, therefore it
is guaranteed that this company can better serve our customer.

Value Proposition
Figure 1. Value Proposition of Ding Sheng
Parents no longer need to worry about their children, this is one of the advantages of using
services offered by Ding Sheng. Our company will offer them information regarding the school
surroundings, the average consumption level of the city, etc. We can even provided services to
their children after they have already landed in the USA.
Ding Sheng will help student get use to American life ASAP. In order to achieve this goal, we
will link new students with local student/student service organizations. So, when they arrived at
their school, there will be senior brother/sister that will help and guide them.

Besides offering information about school surroundings to students and their parents, Ding Sheng
will also act as a purchasing agent. So when new students no longer need to carry “uncessary”
items, such as pillow, bed, etc. with them when they travel, they can save more space in their
luggage compartment to pack some other necessary items.

MARKET ANALYSIS
Macro Market
Statistics have shown that for year 2013, there are about four hundred thousand students from China
who are studying aboard. Compare with year 2012, the amount of students who are study abroad has
increased about 3.85%. The number here has been expected to continue increase for the following
year, and China has actually becomes the world’s biggest source for international students. For the
past couple years, organizations related to this kind of business suddenly appears like bamboo shoots
after a spring rain, therefore it has been proven that any business related to this area will be extremely
profitable.
Market Analysis
According to statistics from the Chinese Ministry of Education, study abroad as an early young age
are becoming quite popular nowadays; speaking about year 2013, there are about two hundred
thousand students who are attend education institutions below college level. As year 2013, all these
students have generated about one hundred and seventy-eight USD for the U.S. and China economy.
Whit the amount of students who are going to study abroad will continue to increase, it is reasonable
to believe that the amount of profits they are creating will also be increased as well. As Student from
Mainland China continue to show a trend toward younger ages, it is absolute reasonable to assume
that the market demand for services will increase. As Mainland China continue to be the largetst
source of international students, we are completely confident that our company will be profitable.
Market Share Estimation
The Market share estimation of Ding Sheng Student Service Center will be demonstrated by the
following table.

Table 2. Market Share & Sales Estimation
Year 1st 2nd 3rd 4th 5th
Information Part
Domestic Market Share (%) 5.0% 10.0% 20.0% 50.0% 60.0%
Foregin Market Share (%) 5.0% 15.0%
Domestic Sales Volumes 134,500 147,950 166,000 186,252 208,975
Foregin Sales Volumes 473 10,802
Service Part
Domestic Market Share (%) 5.0% 10.0% 20.0% 50.0% 60.0%
Foregin Market Share (%) 5.0% 15.0%
Domestic Sales Volumes 134,500 147,950 166,000 186,252 208,975
Foregin Sales Volumes 473 1,802

PRODUCT DISCRIPTION
General Information
The products of our company can be divided into two big categories. Generally speaking, the most
basic function of our company is it serves as a huge platform. It offers opportunity for both businesses
and also customers. The second category of our product is that we provided services to International
students (currently only students who are form Mainland China); and this part can be divided into two
small subparts, which is information part and also service part.
Information Part
Information about school & School surroundings
Due to Facebook and Google services are not available, so there is no better way for students to know
information about his/her school in Mainland China nowadays. Ding Sheng Student Service Center
will offer students information about school (surroundings) through our website; we believe that this
is the best way for student and also their parents to get to know the school.
Information about local community & General information
Since more and more family are become wealthier in Mainland China, more and more family can
afford their children to own a vehicle while they are studying abroad. But these parents are also a little
worried about their children, because they do not know the local community and also relative
information. Therefore we believe providing them information about local community, driver license,
insurance, etc.
Connect new students with old students & Student organizations
Our main slogan is “Try to make American feels like a second home”. For the majority of the student
who are study abroad, the biggest problem is homesick, language, and also inturned character. We
believe connecting them with student (organizations) will help them get use to new life a little bit
quicker, so they can adapted into American culture much more easier.
Information about Professor & Course work (later implementation)
Like we have already mentioned above, our company will continue provided services to students even
when they had already arrived at their school. Some students’ English ability may not be strong;

therefore we believe that some students may need extra help on course work and also information
related to their professor. So we decided to create platform that students can interact with each other
on this platform; we do charge student if they want to use this platform, but the rate is fairly
reasonable.
More customizable information & Services
Again, Ding Sheng will provide fully customizable services to any customers who need it.
Service Part
Airport pick-up service
One of the biggest problems for international students would be language; when they first get off the
plane, the entire surroundings to them may looks quite new. At this moment, even though when they
do speak perfect English, they always forget how to speak. Again, our main slogan is “Try to make
American feels like a second home”, so providing door to door pick-up services will help them to
reduce the feeling of pressure. We are offering door to door Chinese speaking pick-up services, and
we do change at a reasonable rate.
City & School tour service
In order to help students to get use to U.S. life ASAP, we believe providing them city tour service is
necessary. We will be asking student from China/local senior or junior schoolmate to show them
around, we believe that this is an excellent change for them to interact with each other. This will us to
achieve our goal much easier, because interact with their senior or junior schoolmate will help them
reduce the feeling of stress.
Procurement service
Nowadays lots of major airlines only allow students to check in one luggage, it is impossible for new
international students to bring everything they need. Therefore procurement services are need, so they
can bring stuff/items that are more important to them. Before they landed in the U.S., what they are
asking for will be already available, so they can go ahead pick it up and use it. We will provide them
with booklet about all the procurement services we are offering; the booklet will also contain the
original price and also the price that we charge, so they can choose it depend on their personal flavor.
More customizable information & Services

Again, Ding Sheng will offer fully customizable information and services to any customers who need
it.

IMPLEMENTATION PLAN
General Information & Specific Plan
As we have stated before, Ding Sheng Student Service Center will offer multiple services to students
who are study abroad. Glance through all the services that Ding Sheng offers, it can be divided into
two big parts which is information part and also service part.
Information Part
The implementation plan for information part will be simple. Basically Ding Sheng will try to
corporate with intermediary agencies and also 3D companies (later), so that students and patents will
know our company. Then Ding Sheng will require each of our clients to register for an account, and
also pay for fees that are associated with it. Some of the clients may like to collect little advantages;
for example, some clients may want to pay less, so they may share an account with couple other
clients. In order to avoid this kind of problems, Ding Sheng will use the following ways:
Our website will prohibits unauthorized copying or establish mirror.
Each of our clients will be assigned to a single account, and they needs to also choose one single
school. After the school is being selected, they cannot change it unless proves of changing school
is being submitted. Besides this, they also cannot view any information that does not related to
their school.
Service Part
The implementation plan for service part will be a little bit complicated. As usual, Ding Sheng will try
to corporate with intermediary agencies. Since Ding Sheng will provide service such as airport pick-
up, city tour, and procurement service etc. So in order to avoid unnecessary problems, economize
time, money and energy; we encourage our employees (students) to use their own car. Only under
extreme pressure of circumstances, Ding Sheng will offer car to its employees (students). For the
procurement services, in order to avoid unnecessary problems, we will have put information such as
price, customer review, etc to the booklet.
Investment Scale
Ding Sheng Student Service Center plans to infuse roughly about XXX dollars, all the money that is
being infused here will be used for the following purposes:

Paying for the rent of our office and also other necessary expenses
Hiring engineers to program and also build our website, database.
Pay to our employees (students/students’ organizations) to help us gathering information.
Pay to our employees (students/students’ organizations) who provided airport pick-up service, etc.
Buying cars, insurances and some other necessary items that will be used under extreme pressure
of circumstances.
Etc.

MARKETING PLANNING
SWOT Analysis
Table 3. SWOT Analysis of Ding Sheng Student Service Center
Strength Opportunity
Cross Culture understanding
Already started
Personal experiences
More regulated & creditable
More students are going to study in
the USA
Business can be expanded to some
other countries
² Start to target customer from
other countries
² Start to focus on universities in
other countries
Weakness Threats
Capital
Homesick (Students)
Information resources
Competitor
Competitor
Information resources creditability
Target Customer
Our target customer for the fist couple years will baiscally be students and parents form Mainland
China; after that we are planning to expand our target custoomer to some other countries, such as
Taiwan, ect.
Sales Strategy
Product

Ding Sheng Student Service Center will apply our excellent services into both information part, and
also service part. So each customer can enjoy the best services that they deserved, and also they are
paying at a low rate. Again, our main strategy here is we plan to get a small turnover from each
customer, but with a high turnover.
Integrated Channel of Distribution
Ding Sheng Student Service Center has two major distribution channels, which is the internet channel
and also the physical channel. Figure 2 below is a clear demonstration of our integrated channel of
distribution.
Figure 2. Integrated Channel of Distribution
Promotion Strategy
Products and services propaganda is operated by enhance Ding Sheng’s reputation. We want to
charge the lowest price that is possible, but do provide the best services. Therefore any product or
services promotion will be strictly based on customers’ satisfaction. Any dissatisfied products or
service will be removed immediately.

BUSINESS MODEL
General Information
Ding Sheng’s business model can be clearly illustrated by Figure 3 below.
Figure 3. Ding Sheng’s Business Model

FINANCIAL PLAN & FORCAST
General Information
The detail financial plan & forecast will be discussed in the following sections. I will use table
to explain each section; beside table explanations, each section will also contain a brief
explanation of the table.
Financial Statements & Explanation
Cost of good being sold
Table 4. Statement of Sales Volumes and Sales Revenue
Item Cost
CEO Salary 720,000
Website, App, etc. Develop Expense 70,000
Salary pay to the employee 30,000
Total Cost 820,000

Statement of Income
Table 5. Income Statement
Year 1 Year 2 Year 3
Sales
Sales Revenue 1,676,160 1,843,920 2,028,384
Cost of Sales 820,000 820,000 820,000
Gross Profit 856,160 1,023,920 1,208,384
Expenses
Marketing Promotion 50,000 50,000 50,000
Payroll 540,000 540,000 540,000
R&D (Project expense) - 420,000 -
Total Operating Expense 590,000 1,010,000 590,000
Net Income Before Tax 266,160 13,920 618,384
Tax Expense（5%） 83,808 92,196 101,419
Net Income 182,352 (78,276) 516,965
Earning Per Share
Year1 Year2 Year3
Sales
Sales Revenue 1,676,160 1,843,920 2,028,384

Balance Sheet
Table 6. Balance Sheet
Assets
Current Assets
Cash and deposit account 200,000 202,000 204,020
Fixed Assets
Computer equipment 100,000 70,000 40,000
Less: Accumulated depreciation (30,000) (30,000) (30,000)
Total assets 270,000 242, 000 214,020
Liabilities
Current Liabilities
Accounts payable
Accrued expenses
Total Liabilities
Equity 270,000 242, 000 214,020
Total Liabilities and Equity 270,000 242, 000 214,020

Statement of Cash Flow
Table 7. Cash Flow Statement
Cash flows from operating activities
Net Income 182,352 (78,276) 516,965
Adjustments
Depreciation (30,000) (30,000) (30,000)
Increase in accounts receivable
Increase in accounts payable
Increase in accrued expense
Increase in tax payable
Net cash provided by operating activities 152,352 (108,276) 486,965
Cash flows from investing activities
Acquisition of property, equipment
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issuance of common stock
Cash dividends
Net cash provided in financing activities

Net increase in cash
Cash, beginning of period 182,352 (78,276) 516,965
Cash, end of period 152,352 (108,276) 486,965
Statement of Cash Budget
Table 8. Cash Budget
Year1 Year2 Year3
Cash, beginning of period 850,000 850,000 850,000
Add: non-financing revenues
Proceeds from accounts receivable
Less: non-financing revenues 826,760 993,920 1,178,384
Cost of production
Acquisition of buildings 100,000 100,000 100,000
Acquisition of equipment 50,000 50,000 50,000
Operating expenses 100,000
Tax expenses
Cash dividends
Cash dividends

The need of working capital
(Insufficiency) balance of cash before financing activities
Financing activities
Proceeds from issuance of common stock
Cash, end of period

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