The opening of our Business Management senior project's front pages - "Lebanon Racing Club", completed in June 2016 and consisting of an introduction, index, and abstract. Credit: Sandro Eid Samer Abou Saad Khaled Sayegh

1. Lebanon Racing Club
Senior Project Presented to the Faculty of Business and Economics
Department of Business Management
American University of Science and Technology
In Partial Fulfillment of the
Requirements for the Degree
Bachelor of Science in
Business Management
Sandro Eid
SamerAbouSaad
Khaled Sayegh
Fall 2015 - 2016

2. ii
American University of Science and Technology
Faculty of Business and Economics
Approval of the Senior Project
Candidates : Sandro Eid
SamerAbouSaad
Khaled Sayegh
Degree : Bachelor of Science in Business Management
Title : Lebanon Racing Club
The following professor nominated to serve as the advisor of the above candidates
has approved this work.
Advisor: Dr. Nazareth Nicolian Signature:

3. iii
Dedication
We would like to dedicate this project to all AUST academic instructors for their
patience and devotion and to our advisor Dr. Nazareth Nicolian for his impeccable
attention to details. We would also like to dedicate this work to our parents for their vast
help and support in completing our degrees after several years of hard work.

4. iv
Table of Contents Page
Chapter One Introduction 1
1.1 Overview 1
1.2 Need for the Project 1
1.3 Objectives 2
1.4 Scope of the Project 2
1.5 Project Benefits 3
1.6 Constraints 3
Chapter Two Literature Review 4
2.1 Overview 4
2.2 History of Drag Racing 4
2.2.1 NHRA's First Races 5
2.2.2 Incredible Success and Growth 5
2.3 Racing in Lebanon and the Middle East 5
2.3.1 In Lebanon 5
2.3.2 In the Middle East 6
2.4 Risk Assessment 6
2.5 Drag Strip Design and Dimensions 7
2.6 Drag Racing Rules & Regulations 7
2.6.1 Event Rules 7
2.6.2 Track Rules 8
2.6.3 General Safety Rules 8
2.7 Human Resources in Drag Racing 10
2.8 Conclusion 11
Chapter Three ResearchMethodology 12
3.1 Overview 12
3.2 Methodology Adopted 12
3.2.1 Quantitative Analysis 12

5. v
3.2.1.1 Advantages of Quantitative Research 12
3.2.1.2 Disadvantages of Quantitative Research 12
3.2.2 Qualitative Analysis 13
3.2.2.1 Advantages of Qualitative Research 13
3.2.2.2 Disadvantages of Qualitative Research 13
3.2.3 Mixed Methods Research 14
3.2.3.1 Reasons for Using Mixed Methods 14
3.2.3.2 Steps for doing Mixed Research Methods 14
3.3 Methods and Techniques Used 14
3.3.1 Qualitative Methods and Techniques 14
3.4 Sample Selection 16
3.5 Questionnaires 16
3.6 Research Ethics 18
3.6.1 Ethical Principles 18
Chapter Four strategic Plan 21
4.1 Overview 21
4.2 Vision 22
4.3 Mission 22
4.4 Hierarchy of Goals 23
4.4.1 Strategic Goals 23
4.4.2 Tactical Goals 23
4.5 Choice of Strategies 26
4.5.1 Cost Leadership Strategy 26
4.5.2 Differentiation Strategy 27
4.6 Porter’s Five Forces Model 27
4.6.1 Threats of New Entrants 27
4.6.2 Determinants of Buyer Power 27
4.6.3 Determinants of Supplier Power 27
4.6.4 Threats of Substitute Products 28
4.6.5 Rivalry among existing firms 28
4.7 S.W.O.T Analysis 28
4.7.1 Strengths 28
4.7.2 Weaknesses 28

6. vi
4.7.3 Opportunities 29
4.7.4 Threats 29
4.8 SWOT MATRIX 29
4.9 Internal Factor Evaluation 31
4.10 External Factor Evaluation 34
4.11 Required Resources 37
4.11.1 Required Human Resources 37
4.11.1.1 Managers and Employees 37
4.11.1.2 Other Stakeholders 38
4.11.1.3 Importance of Human Resources 39
4.11.2 Required Equipment 40
4.12 Internal Policies and Plans 42
4.13 Logo Design and Interpretation 43
4.13.1 Overview 43
4.13.2 Logo Design 43
4.12.3:Logo Interpretation 43
Chapter Five Marketing Strategy 45
5.1 Overview 45
5.2 Market Strategy 45
5.2.1 Segmentation Strategies 45
5.2.1.1 Behavioral segmentation. 45
5.2.1.2 Demographic 46
5.2.1.3 Geographical 46
5.2.1.4 Psychographic 46
5.2.2 Targeting Strategy 46
5.2.2.1 Differentiated targeting strategy. 47
5.3 Marketing Mix 47
5.3.1 Product/Service Strategies 47
5.3.2 Place Strategies 48
5.3.3 Price Strategies 48
5.3.4 Promotion Strategies 52
5.4 Media Costs 53
5.4.1 Magazines 53

7. vii
5.4.2 Internet 53
5.5 Sponsorship Programs 53
5.5.1 Sponsorship in Drag Racing 53
5.6 Survey Results and Findings 54
5.6.1 Age 55
5.6.2 Gender 55
5.6.3 Car Ownership 56
5.6.4 Car Customization 56
5.6.5 Street Racing Experience 57
5.6.6 Racing in A Safe Environment 57
5.6.7:Is our Business Profitable? 58
5.6.8 Minimum Pay Amount for Racing Attendance 58
5.6.9 Minimum Pay Amount for Racing 59
5.6.10 Awareness for Illegal Street Racers 61
5.6.11 Conclusion 61
Chapter Six Financial Analysis 62
6.1 Overview 62
6.2 Financial Statements and Balance Sheets 62
6.2.1Consolidated Balance Sheet 63
6.2.2 Income Statements 64
6.2.3 Cash Flow Statement 65
6.2.4 Net Present Value and IRR 66
6.2.4.1 Net present value 66
6.2.4.2 IRR 67
Chapter SevenConclusion and Recommendations 69
7.1 Conclusion 69
7.2 Recommendations 69
7.3 Future Research 70
References 71

8. viii
List of Figures Page
Figure 4.1 Logo Design 43
Figure 5.1 Car Ownership (Yes or No) 56
Figure 5.2 Car Customization (Like or Dislike) 56
Figure 5.3 Street Racing Experience (Yes or No) 57
Figure 5.4 Racing in A Safe Environment (Yes or No) 57
Figure 5.5 Is our Business Profitable? (Yes or No) 58
Figure 5.6 Minimum Pay Amount for Racing Attendance 58
Figure 5.7 Minimum Pay Amount for Racing 59
Figure 5.8 Awareness for Illegal Street Racers (Yes or No) 60

9. ix
List of Tables Page
Table 4.1 TOWS Matrix 30
Table 4.2 Internal Factor Evaluation Matrix (IFE) 32
Table 4.3 External Factor Evaluation Matrix (EFE) 35
Table 5.1 Age Distributions 55
Table 5.2 Gender Distributions 55
Table 6.1 Net Present Value 65
Table 6.2 IRR 66

10. x
Lebanon Racing Club
Abstract
Since 1964, ATCL (Automobile et Touring Club du Liban) was the leading club of Car
Racing in Lebanon, located in Kaslik, Jounieh. This club has been organizing Rally,
Drifting, and Karting events through the following years that were at the national and
international levels. Talented and expert drivers were required to register for a particular
event and compete with each other. Up until today, ATCL has been the leading club in
car racing, and it is too costly, time-consuming, and require pro-level skills to participate
in its events.
Our project under the title “Lebanon Racing Club” will provide a solution for such
issues. It is based on a track in a shape of a drag strip, where car enthusiasts bring their
cars and bikes, and race in a straight line whether they are modified for racing or not.
This track will also welcome international events for the higher car categories and create
a show for people to come and watch.
Car enthusiasts today race on public roads, endangering their lives and the lives of
others. People are getting extremely angry and annoyed by the troubles these racers are
causing, from car accidents, to loud disturbing car and motorcycle noises.
Having conducted a detailed strategic plan, including a SWOT analysis and marketing
plan, we find this project to be operationally feasible. In addition, a financial analysis is
conducted showing a positive net present value and a favourable pay-back.
We strongly recommend the appropriate Lebanese authorities to implement our proposed
project in the near future.