Lebanon Racing Club - Business Management Senior Project

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Chapter One
Introduction
1.1 Overview
Drag racing is a type of motor racing where specially prepared automobiles and motorcycles
compete two at a time, to be first to cross the finish line. The race consists of a standing start
over a measured distance in a straight line, most commonly ¼ mile (402m). The cars and bikes
used are mostly sports and modified ones with high performance engines. Electronic timing
and speed sensing systems are utilized to record race results.
Before each race, every driver is allowed to make a burnout in his car to heat up the tires,
which improves traction. Each driver then lines up at the starting point. Between the two
drivers up front, is a post showing the lights for knowing when to accelerate. Several
measurements are taken for each race; reaction time, elapsed time, and speed. The winner will
be the first driver to cross the finish line.
Most race events use a traditional bracket system, where the losing driver is disqualified, and
the winner advances to the next round, until the last winner of them all holds the victory
crown. A popular alternative to the bracket system is the Chicago style format. All entered cars
compete in one qualifying round, and then pair for the elimination round. The two fastest times
among winners from the elimination round participate in the championship round. The next
two fastest times may play for third, fourth and fifth positions.
This senior project proposes opening a modern race facility in Beirut. This chapter provides
the rationale and justification for selecting this project, by describing the problems it will help
resolve, and the benefits it will generate, and finally the scope that it will cover.
1.2 Need for The Project
According to ISF, “http://www.isf.gov.lb/en/statistics”, the number of injuries and deaths from
street racing in Lebanon last year, have reached up to 4,000. Most of them took place on the
coast road in Lebanon, especially in Beirut area, and the rest where on high mountain roads
resulting in cars falling off cliffs.
The amount of disturbance of the citizens in Beirut from loud car and bike noises has reached a
high peak. The citizens are always complaining to the Lebanese government, where there is no
quick response or act from them at all.
For those reasons we have figured out an effective solution which is to build a drag and drift
racing arena at very nice location in Mount Lebanon, which would far from populated areas

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and easier to reach. It will be a very secured and safe area for racing and drifting, hoping to
decrease the death rates from car accidents and to attract petrol heads to race in our arena
instead of public streets. The problems currently faced include:
- Illegal street racing
- Disobeying traffic safety laws such as speeding
- Disturbing the public
- No government responsibility for capturing the offenders
1.3 Objectives
This project aims to address the following objectives:
- Evaluate the feasibility of the business (financial, operational, and strategical)
- Evaluate the rules and regulations for the permit to build the arena
- Create awareness by implementing a marketing study to see if the business is feasible,
and if people are aware of that project
- Provide car enthusiasts with a safe place for racing
- Invite international events for drag and drift racing such as Red Bull events
- Provide a full design of the arena to satisfy the international rules and regulations
1.4 Scope of the Project
This project is divided into eight chapters. Chapter one introduces drag racing in general. It
defines what drag racing is in terms of its design and rules.
Chapter two present the literature review. This part gets information from similar project
how to operate finance and design a drag racing arena.
Chapter three talks about the methodology of the project about the survey, questionnaires
and the interview conducted with a person working in the field of racing.
Chapter four outline the strategic mindset of the organization showing a general definition
of strategic planning, explaining the organization mission and vision statement and the
ranking of goals and objectives.
Chapter five provides the marketing plans by showing the market strategy and marketing
mix.
Chapter six present the survey result, finding and analysis.
Chapter seven clarifies the financial plan presenting the financial statement, balance sheet,
the NPV and IRR analysis.
Chapter eight reveals the conclusion and recommendations.

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1.5 Project Benefits
This project aims at enhancing the image of this kind of sports to the public, in making it
safer with a broader space for racing. It will help street racers to stop racing in public; that
creates danger to themselves and others. Instead this arena will allow them to participate
and show their racing passion as much as they want with all the safety regulations
provided.
Our project will definitely decrease the amount of deaths from street racing year after year.
The arena without any awareness of the dangers of street racing being spread want is any
effective. Many will become excited about our project before its initiation and will not
hesitate bringing their cars to our arena from the opening day.
Our deep commitment to social responsibility reflects our desire to play a part in building a
safe and sustainable Lebanon for future generations. We will be able to entertain the public
and get them closer together, by encouraging them to like our sports and practice it. This
will make them set away their differences and become all as one, and start to cheer the
drivers instead of differentiating between people for their religions and political views.
1.6 Constraints
Lebanon is experiencing a political instability for the time being. The country is divided into
two large parties, and the economy is declining. It’s in a recession. This is causing a threat on
establishing new businesses. In addition, the prices of land, and the equipment needed has
highly increased, and Lebanon has weak infrastructure which effect on building the arena.

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Chapter Two
Literature Review
2.1 Overview
This Chapter provides the history of drag racing and how it evolved through the years to the
present day. It will include how racing is practiced today in Lebanon and in the Middle East in
general. We will provide an example about a drag racing arena that exists in Qatar today, and
will state the key findings from it that will benefit us through this project.
The keywords used in this chapter are related to our drag racing topic. These keywords have
helped us to get all the information we need to do this research. They are the following:
 Racing club
 Drag Racing
 Drifting
 NHRA
 ATCL
 Human Resources
 Rules and Safety Regulations
 Design and Layout
2.2 History of Drag Racing
Drag Racing was born on the backroads of America in the post-World War ll years, located in
California’s Mojave Desert, where hot rodders first met since the early 1930s, and speed first
topped 100 mph.
Others argued that Drag Racing was born in Goltry, Okla., in 1913, with the birth of Wally
Parks. Parks had an early interest in cars. He attended his first racing event in the 1930s. He
participated in many car racing events and was the founder of the Road Runners Club.
The first drag strip, the Santa Ana Drags, started running on an airfield in Southern California
in 1950 and gained popularity among racing enthusiasts because of its revolutionary speed
clocks.
Parks formed the National Hot Rod Association in 1951 or NHRA, by instituting safety rules
and performance standards that helped legitimize the sport. He was its first president.

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2.2.1: NHRA's First Races
NHRA first held its official race in April 1953 in the Los Angeles County Fairgrounds parking
lot in Pomona, Calif. Four decades later, that track has undergone a $6-million expansion and
renovation procedure such as the upgrading of facilities to stadium quality, with fan amenities,
VIP towers and tall grandstands. This was made by the NHRA president Dallas Gardner who
took the reins in 1984 when Parks became board chairman. Six years later, the Nationals
circled around the country before settling in Indianapolis in 1961, where the Winter nationals
became NHRA’s second event.
2.2.2: Incredible Success and Growth
Today, with 70,000 members, more than 40,000 licensed competitors, and more than 200
dedicated employees, NHRA offers drag racing opportunities for hot rod enthusiasts of all
levels, from youth ages 5 to 17 in the NHRA Summit Racing Jr. Drag Racing League all the
way up to the top of the professional ranks with the NHRA Mello Yello Drag Racing Series.
2.3 Racing in Lebanon and the Middle East
2.3.1: In Lebanon
In 1919, the (Automobile et Touring Club Du Liban) “ATCL”, was founded by (Jean de
Freige, Alfred Sursock, Sélim Slam, Habib beyPharaon, Jacques Tabet, Albert Naccache,
Ahmad Beyhum, Michel Chiha, Charles Corm etc.) It implemented its rules and regulations
according to the FIA (Federation International d’Automobile).
ATCL started organizing rally events in mountain roads in Lebanon with the participation of
Lebanese, Syrian and Jordanian drivers with their rally prepared cars. ATCL kept on practicing
rally racing for years and until today, with drivers from the all over the world. Today they have
many sponsors such as Red bull and Yaza. The Rally cars were considered of three groups
(Group A and Group B and Group N), where they all had racing engines, a heavy built chassis
and an internal roll cage. The group N cars were licensed by the WRC (World Rally Car.
Afterwards ATCL Started sponsoring Karting events in mini race tracks, such in Pit Stop
Karting track in ZoukMosbeh, and in RPM karting track in Mtein. Each year five Karting
events take place in the two tracks and the participants are mostly kids and teenagers ranging
between 8 and 16 years old. Of course the drivers have specially equipped Karting cars for the
competitions.
Five years ago a racing event took place at the underground car parking of City Mall in Beirut.
The race consisted of racing cars drifting between the parking poles in a form of a track, and

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the driver that has the best drifting skills, scoring the highest points wins the race. Today these
drifting events are taking place on outdoor parking lots all around Lebanon where cones get
placed to form a drifting track. These events are notional and international events both
sponsored by Red Bull and other sponsors that change each year.
Other types of street racing include street racing which happen illegally in the public streets of
Lebanon which is very dangerous involving in the loos of many lives. This is the main reason
why we are initiating this project. We have to do our best to stop the deadly accidents.
2.3.2: In the Middle East
Racing is practiced in almost every country of the Middle East. For example, Rallying is
practiced in Syria, Jordan, Qatar, and UAE… Drag Racing is practiced in Qatar and Abu
Dhabi, and GT racing in Bahrain and Dubai. Finally drifting events take place in all of the
countries.
Qatar today organizes national and international drag racing events on its drag strip located in
its industrial area. Qatar also welcomes motorcycle racing in their Moto GP race Track located
in Losail. Dubai welcomes GT racing in its track called YAS Marina circuit such as Porsche
GT3. Saudi Arabian welcomes Dakar Rally Racing in the desert region called Hahel. In Abu
Dhabi, they have a big theme park called Ferrari world, where they have mini circuits for
Karting racing and a museum showing all about Ferrari. It was founded in 2010. Abu Dhabi
also has a Formula One for the international Formula One events, so as Bahrain.
2.4 Risk Assessment
There are many major risks concerning this project. We will make a risk study to determine
the long and short-term risk factors that can affect or create blocks in our project.
Lebanon is experiencing political instability today. There is a conflict inside the government
between two parties and our economy is facing a depression. This is creating a threat on
establishing new businesses and on existing ones. These are the following major risks:
 Political: There is a turmoil in the Middle East, and conflicts in Lebanon causing
political instability
 Economic: The economy in Lebanon is always shifting between a recession and a
depression. Any increase in the cost of raw materials for building the arena will force
us to increase the prices of entrance tickets and participation costs for the racers. This
will lead to lower numbers of audiences and participant which will lead to decrease our
profits in order for us to pay for the employees and maintenances. Also, we sometimes

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would have to borrow loans from banks with high interest rates so we can buy new
materials to complete our building.
 Technology: Lebanon has a weak funding in research and development projects. It has
a weak infrastructure in telecommunication, Internet. It also has electricity problem,
which makes the electricity cutting off many times per day. This will force us to
purchase our own generator to provide 24/7 electricity.
2.5 Drag Strip Design and Dimensions
There are many aspects involved when designing a drag strip. First and foremost, you have
to make sure there is suitable drainage to prevent any problems with rising water levels on
the track. After that to insure the grading and the compacting of the soil below the surface
is stable, along with the drainage. Installing a cooling system in the first 300 feet of the
race track should be considered, so you could maintain an acceptable track surface
temperature, especially during hot summer days. We are talking about running piping
under the concrete launching pad and using ground water to cool it.
For the racing track itself, there is a concrete and an asphalt track versus all-concrete
quarter-mile. The concrete track is considered longer lasting. The one apparent drawback
with a concrete track is that the surface is smooth that the groove becomes extremely
narrow.
Another crucial are to be considered is the shut-down area. This area of the track needs to
be smooth to allow the car in trouble to slow down. The shut-down area should run uphill.
This way you have more down force on the car, which allows you to use more braking to
slow it down.
There are other facets of construction, including the timing system and wiring regarding
the lighting system of the arena and the start and finish buttons of the Christmas tree which
will talk about later in detail in chapter 4.
2.6 Drag Racing Rules & Regulations
According to Raceway Park, NHRA, US 131 Motorsports Park, and Federation International
de l’Automobile (FIA), The Drag Racing rules & regulations are the following:
 All competitors must have a valid driver’s license and show it at the moment of
inspection.

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 All drivers and crew members must be responsible to show professional and
sporting attitude towards officials. Any aggressive or insulting attitude towards any
official and worker will result in a sever sanction
 Any protest or claim must be made to the Race Director who is in the start or
burnout area.
 If the violation is repeated. The person will be suspended from participating in any
event for a period of one year.
 A health test must be done by a certified Doctor no sooner than 2 weeks before the
event. The results can be handed to the race director or attached to your Race Entry
Form.
2.6.2: Track Rules
 The maximum speed is15 mph in all areas of the Pit, including return roads.
 Competition numbers MUST be visible and readable on both sides of all
competition vehicles.
 When a competitor “Pre Stages” it is a confirmation that he or she has accepted the
Dial in that is indicated on the score board.
 No use of ‘coolant’ (Glycol) or antifreeze in the vehicles’ radiator.
 In case of an accident on the track, no crew member whatsoever is allowed to go on
the race track without consent from the Race Director.
 During the race, if any racer is experiencing problems with his car such as oil leak,
he will be forced to move his car aside, or else he will be suspended.
 NO alcohol or smoking in the general Pit area.
 NO glass bottles in the general Pit area.
 NO open flame in the general Pit area.
 NO burnouts will be allowed in the return lane.
2.6.3: General Safety Rules
 All vehicles must pass tech inspection and have a proper sticker indicating that it
has passed inspection before being allowed to race.
 All motorcycle riders must wear full all-leather suits, leather gloves, leather boots
over the heels and full face approved helmets.

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 ALL vehicles using methanol as fuel, the drivers or riders must wear a special suit
according to SF1 specs: 3.2A/15
 All cars that have a roof must have a windshield, back and sides windows; the
material must be glass or Lexan.
 All drivers and riders must wear a good quality helmet;
 All drivers and riders must wear long pants and shoes and socks; no sleeveless tops
at all times on the raceway. Also all crew members that go to the burnout area/start
line to assist must be properly dressed with shirts or T-shirts (no cutouts) and
shoes, no slippers.
 ALL drivers with cars with no roof must have a roll cage over the driver who must
wear a helmet with a FACE SHIELD.
 JACKET: for cars that run between 10.00 and 11.99 seconds, the jacket must meet
SF1 specs 3.2A/1.
 JACKET and PANTS or full suit for all cars 9.99 and faster. The jacket and pants
or full suit must meet fire retardant SF1 specs 3.2.A/5.
 Cars using methanol as fuel, the driver’s jacket and pants or full suit must meet
SF1 specs 3.2.A/15 and gloves and shoes SF1 specs 3.3/5
 Neck collar, racing gloves and racing shoes for all cars 9.50 seconds and faster.
 ALL cars using Nitrous Oxide, the bottle must be attached with 2 clamps to the
car’s roll cage or to the car’s floor firmly. Bikes’ Nitrous Oxide bottles must be
attached firmly to its frame. No ties strips for cars or bikes
 ALL cars and bikes must have good tires and brakes on all wheels unless the car is
a dragster or altered. The brakes must be in good working order for the race.
 ALL cars and bikes must have their batteries wall attached with clamps, NOT with
wire, string or tie strips.
 ALL cars and bikes must have good tires and brakes on all wheels unless the car is
a dragster or altered. The brakes must be in good working order for the race.
 ALL cars must have a fire extinguisher (in good working condition) minimum
capacity 2lbs. The fire extinguisher must be attached firmly to roll cage or floor
and must be at arm’s reach while driver is strapped in and easily removable for use
in case of emergency.

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 ALL cars MUST have a working seat belt and must be worn by all drivers while on
the raceway. Seatbelt MUST be bolted firmly to the frame of the car or to the roll
cage of the car.
 ALL cars running 9.50 seconds and faster MUST have a window net installed on
the inside of the roll bar on the driver side.
 ALL cars 10.00 seconds and faster or faster than 150 mph MUST have a parachute.
 A Battery Master Cutoff Switch is mandatory when the battery is relocated from
factory position.
2.7 Human Resources in Drag Racing
Our company Lebanon Racing Club cannot be operated without a professional staffing and
trained employees. Human critical is critical to our company. Each employee has a crucial and
critical role to play that helps the company to survive through his training programs and
experiences. If one employee leaves, it will make a potential threat to the company’s
profitability and leave a huge gap to fill it, since finding experienced employees is difficult and
time consuming especially for our company.
The benefits for human resources for our company are the following:
- Budget control: includes negotiating better rates for benefits. In addition, it ensures
competitive and realistic wage-setting based on studying the labor market, employment
trends and salary analysis based on job functions.
- Conflict Resolution: Workplace conflict is inevitable, since we have diversity of
personalities, work styles, backgrounds and levels of experience among employees. We
need to create stress free environment, increase employee satisfaction and decrease
their turnover. Conflict resolution is a key essential factor that builds trust and
teamwork, and enhances self-belonging to the company.
- Training and Development: We need to determine the types of skills training and
employee development necessary for improving skills and qualifications. Training the
employees improves their satisfaction. They will attain more knowledge about their
positions, and they will have self-achievements and will be more enthusiastic about
their jobs.
- Corporate Image: Employees represent the company’s values, culture, attitudes outside
its area which gives a positive public image about the company. This case happens
when the company treats its employees well and in an ethical way. If the company
respects the international ethical standards towards the community, the employees will
publish its image in a better way considered as it is their second home.

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2.8 Conclusion
After going through the material of this chapter, we can learn that Drag Racing is a very
Interesting type of sport and an important element especially for the Lebanese community.
This has encouraged us to prepare this senior project in order to create a completely new
atmosphere for Lebanon, and to fulfill all the Lebanese car enthusiasts’ dreams.
We were not fully aware of the racing industry. Our research of the project’s content has
helped us learn more about racing, its history, rules, types, and building for the drag racing
arena.

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Chapter Three
Research Methodology
3.1 Overview
This chapter presents and justifies the methodology to be used including quantitative and
qualitative methods, in order to obtain information about the possible gaps and opportunities
that concerns our project in the Lebanese market. Also the chapter will provide definitions of
all the methods and tools, which will identify and analyze the business strategic process. We
will use quantitative and qualitative methods to collect primary data, and we’ll include the
interview and the survey questions in this chapter. Furthermore, we will provide the ethical
basis for doing this senior project.
3.2 Methodology Adopted
3.2.1: Quantitative Analysis
Quantitative methods are used by operations analysts and economists to provide solid evidence
for guiding management decisions on production, distribution, marketing and personal
management. These methods also help managers’ future business conditions, which enables
them to adjust their strategies as needed. Quantitative research methods include questionnaires,
statistical numbers (surveys, population, and sample). It is all about using numbers to be
involved in the analysis.
3.2.1.1: Advantages of quantitative research.
Quantitative research is simpler to define and identify. The data produced are always
numerical, and are analyzed using mathematical and statistical methods. For example;
easier to collect information and turn them into charts and graphs making them simpler
to read. Quantitative research is strongly justified through the history of management
theory development. It has led to solve the simplest and sophisticated problems related
to several domains such as humanities, business and social sciences. The results in the
quantitative research methods are more objective and accurate.
3.2.1.2: Disadvantages of quantitative research.
In quantitative research, the results are restricted as they provide numerical descriptions
rather than detailed narrative and generally provide less elaborate accounts. Self-

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reported information obtained from questionnaires may be inaccurate or incomplete. In
addition, the administration of a structured questionnaire creates an unnatural situation
that may alienate respondents. The quantitative studies are expensive and time-
consuming, and even the preliminary results are usually not available for a long period
of time. For the research methods, they are inflexible because the instruments cannot be
modified once the study begins. Finally, errors in the selection of procedures for
determining statistical significance can result in erroneous findings regarding impact.
Another disadvantage is that a large sample of the population must be studied; the
larger the sample of people researched, the more statistically accurate the results will
be.
3.2.2: Qualitative Analysis
Qualitative research is an inquiry method employed in various academic disciplines such as in
business, social sciences and market research. It is designed to help qualitative researchers with
all aspects of their research from start to finish. It discusses the key philosophies showing
qualitative research and design in business and management. Qualitative research is primarily
exploratory research. It is used to gain and understanding of underlying reasons, opinions, and
motivations. It provides insights into the problem or helps to develop ideas or hypotheses for
potential quantitative research.
3.2.2.1: Advantages of qualitative research.
Qualitative research provides depth and detail, looks deeper than analyzing ranks and
counts by recording attitudes, feelings and behaviors. It Creates openness
in encouraging people to expand on their responses can open up new topic areas not
initially considered, simulates people's individual experiences and draws a detailed
picture about why people act in certain ways and their feelings about these actions. As
for the researchers, they gain more detailed and rich data in the form of comprehensive
written descriptions or visual evidence, therefore they will have a clear vision on what
to expect. The direction and framework of research can be revised quickly as soon as
fresh information and findings emerge.
3.2.2.2: Disadvantages of qualitative research.
In qualitative research usually fewer people are studied because the collection of
qualitative data is generally more time consuming than quantitative data collection. In

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addition, the researcher's presence during data gathering, which is often unavoidable in
qualitative research, can affect the subjects' responses, also giving the researcher a
subjective view of the study and its participants. The researcher interprets the research
according to his or her own biased view, which skews the data gathered. Issues on
confidentiality and anonymity can pose problems during presentation of findings.
3.2.3: Mixed Methods Research
The goal of mixed methods research is to tackle a given research question from any relevant
angle, making use of previous research where appropriate, and more than one type of
investigative perspective.
3.2.3.1: Reasons for using mixed methods.
 To explain and interpret.
 To explore a phenomenon.
 To develop and test a new instrument.
 To serve a theoretical perspective.
 To complement the strengths and overcome the weaknesses of a single design.
 To address a question at different levels
3.2.3.2: Steps for doing mixed research methods.
 define the challenge
 collect the appropriate data from any relevant source to develop and test
hypotheses
 rigorously examine those data for obvious and hidden patterns
 analyze your findings
 present your results for peer review and audience education.
3.3 Methods and Techniques Used
3.3.1: Qualitative Methods and Techniques
There are two re are two types of techniques used in qualitative research:
Interviews

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An interview is a conversation between two or more people where questions are asked by the
interviewer to produce facts or statements from the interviewee. The interview is undoubtedly
the most common source of data in qualitative studies. The main task in interviewing is to
understand the meaning of what the interviewees say. The person-to-person format is most
widespread. Interviews range from the highly structured style, in which questions are
determined before the interview, to the open-ended, conversational format. In qualitative
research, the highly structured format is used primarily to gather sociodemographic
information. For the most part, however, interviews are more open ended and less structured
(Merriam, 2001). Frequently, the interviewer asks the same questions of all the participants,
but the order of the questions, the exact wording, and the type of follow-up questions may vary
considerably.
 Focus Groups
Another type of qualitative research technique employs interviews on a specific topic with a
small group of people, called a focus group. This technique can be efficient because the
researcher can gather information about several people in one session. The group is usually
homogeneous. A focus group is a common qualitative research technique used by companies
for marketing purposes. A focus group typically consists of a small number of participants,
usually around six to 12, from within a company's target market. The consumers are brought
together and led through discussions of important company and brand topics by a moderator.
 Observation
Observation in qualitative research generally involves spending a prolonged amount of time in
the setting. Field notes are taken throughout the observations and are focused on what is seen.
Many researchers also record notes to assist in determining what the observed events might
mean and to provide help for answering the research questions during following data analysis
(Bogdan &Biklen, 2007; Pitney & Parker, 2009).
 Other Data-Gathering Methods
Among the many sources of data in qualitative research are self-reports of knowledge and
attitude. The researcher can also develop scenarios, in the form of descriptions of situations or
actual pictures that are acted out for participants to observe. The participant then gives her or
his interpretation of what is going on in the scenario. The participant’s responses provide her

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or his perceptions, interpretations, and awareness of the total situation and of the interplay of
the actors in the scenario.
Other recording devices include notebooks, narrative field logs, and diaries, in which
researchers record their reactions, concerns, and speculations. Printed materials such as course
syllabi, team rosters, evaluation reports, participant notes, and photographs of the setting and
situations are examples of document data used in qualitative research.
3.4 Sample Selection
In our project we choose the type of survey from the quantitative methods since it is clearer
and not time consuming. In this survey the sample size will be a hundred people from different
ages and gender and from different locations ranging from Beirut and Mount Lebanon. All of
the participants will be car enthusiasts in general because they can give us a stronger, more
effective feedback then others.
3.5 Questionnaires
These are the following questions that are in the surveys that we are going to conduct:
Q.1 What is your age?
o 17 or younger
o 18-20
o 21-29
o 30-39
o 40-49
o 50-59
Q.2 What is your gender?
o Female
o Male
Q.3 Do you own a car?
o Yes
o No

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Q.4 Do you like customizing or upgrading your car?
o Yes
o No
Q.5 Have you everbeen in a street race with your car?
o Yes
o No
Q.6 Would you like to race your car in a safe and specialized track?
o Yes
o No
Q.7 Is building a drag race strip, a profitable business in Lebanon? Elaborate
Q.8 How much would you pay as minimum for watching real-life racing action in
Lebanon?
o Between 20 and 30 dollars
o Between 30 and 40
o Between 40 and 50
o 50 and above for VIP
Q.9 How much would you pay as minimum to race with your car on a drag strip? (Note:
Depending on your car category)
o Between 100 and 300
o Between 300 and 500
Q.10 Do you think that building a drag strip will create awareness for illegal street
racers, where they can race safely instead? Elaborate

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3.6 Research Ethics
When most people think of ethics (or morals), they think of rules for distinguishing between
right and wrong, such as the Golden Rule ("Do unto others as you would have them do unto
you"). Research ethics involves the application of fundamental ethical principles to a variety of
topics involving research.
3.6.1: Ethical Principles
According to David B. Resnik, J.D., Ph.D., the ethical principles are the following:
 Honesty
Strive for honesty in all scientific communications. Honestly report data, results, methods and
procedures. Do not fabricate, falsify, or misrepresent data. Do not deceive colleagues, granting
agencies, or the public.
 Objectivity
Strive to avoid bias in experimental design, data analysis, data interpretation, peer review,
personnel decisions, grant writing, expert testimony, and other aspects of research where
objectivity is expected or required. Avoid or minimize bias or self-deception. Disclose
personal or financial interests that may affect research.
 Integrity
Keep your promises and agreements; act with sincerity; strive for consistency of thought and
action.
 Carefulness
Avoid careless errors and negligence; carefully and critically examine your own work and the
work of your peers. Keep good records of research activities, such as data collection, research
design, and correspondence with agencies or journals.
 Openness
Share data, results, ideas, tools, resources. Be open to criticism and new ideas.

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 Respect for Intellectual Property
Honor patents, copyrights, and other forms of intellectual property. Do not use unpublished
data, methods, or results without permission. Give credit where credit is due. Give proper
acknowledgement or credit for all contributions to research. Never plagiarize.
 Confidentiality
Protect confidential communications, such as papers or grants submitted for publication,
personnel records, trade or military secrets, and patient records.
 Responsible Publication
Publish in order to advance research and scholarship, not to advance just your own career.
Avoid wasteful and duplicative publication.
 Responsible Mentoring
Help to educate, mentor, and advise students. Promote their welfare and allow them to make
their own decisions.
 Respect for colleagues
Respect your colleagues and treat them fairly.
 Social Responsibility
Strive to promote social good and prevent or mitigate social harms through research, public
education, and advocacy.
 Non-Discrimination
Avoid discrimination against colleagues or students on the basis of sex, race, ethnicity, or other
factors that are not related to their scientific competence and integrity.
 Competence
Maintain and improve your own professional competence and expertise through lifelong
education and learning; take steps to promote competence in science as a whole.

20
 Legality
Know and obey relevant laws and institutional and governmental policies.
 Human Subjects Protection
When conducting research on human subjects, minimize harms and risks and maximize
benefits; respect human dignity, privacy, and autonomy; take special precautions with
vulnerable populations; and strive to distribute the benefits and burdens of research fairly.
 Plagiarism
Make sure that you do not copy verbatim more than two words in a row from the text you have
found. If you do use more than two words together, you will have to use quotation marks. To
avoid plagiarism, use paraphrasing, citing, quoting, citing quotes, and referencing.
 Ethics Statements
The team will abide by all the ethics mentioned above.

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Chapter Four
Strategic Plan
4.1 Overview
Strategic management is the art and science of formulating, implementing, and evaluating
cross-functional decisions that enable an organization to achieve its objectives. The term
strategic planning originated in the 1950s and was very popular between the mid-1960s and the
mid-1970s. During these years, strategic planning was regarded as an answer to major
problems. At the time, most of corporate America was obsessed with it. However, during the
1980s, strategic planning was neglected because during the growth period, it perceived as not
paying higher returns, only to be revived in the 1990s, today strategic planning is widely used
all over the business world. A strategic plan is, in essence, a company’s game plan. Because of
today’s shrinking profit margins there is little room for mistake in the overall strategic plan.
The strategic management process consists of three stages: strategy formulation, strategy
implementation, and strategy evaluation. Strategy formulation includes developing a vision
and mission, identifying an organization’s external opportunities and threats, determining
internal strength and weaknesses, establishing long term objectives, generating alternative
strategies, and choosing particular strategies to attain. One important aspect in strategy
formulation is that it should involve all employees in the process, and it should be
communicated in a clear manner across the departments. Strategy implementation requires a
firm to establish annual objectives, devise policies, motivate employees, and allocate resources
so that formulated strategies can be executed. It is often considered to be the most difficult
stage in strategic management. Strategy evaluation is the final stage in strategic management
assesses strategies to see if they are working well. All strategies are subject to future
modification because external and internal factors are constantly changing.
According to Stephen Covey, some of the problems in an organization dealing with strategic
management are:
 15% of the employees identify the top goals, the remaining don’t know about the goals
because of frequent changes and some even think that they don’t have any.
 19% of the employees feel passionate and involved about the goals.
 49% only focus on the implementation of the goals, the others are distracted by the
daily problems, and we call this ‘firefighting’.
 51% don’t understand what to do.

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Strategic management provides many benefits, here are some of them:
 Turns an organization into proactive rather than reactive in shaping its own future.
 Increases the profitability of an organization.
 Increases the market share.
 It allocates resources available for growth and change to the programs and activities
with the highest potential payoff.
 It increases productivity from increased efficiency and effectiveness.
 Helps in acquiring the competitive advantage.
 It organizes the actions of diverse and separate parts of the organization into unified
programs to accomplish objectives.
In this chapter we will talk about:
 Formulating our vision and mission statements
 Our main strategic plan,
 The hierarchy of goals
 Our choice of strategies
 Porter’s five forces model
 S.W.O.T analysis
 Internal policies and plans
4.2 Vision
Our vision is to become the first providers of drag racing facility in Lebanon.
4.3 Mission
Lebanon Racing Club is the home of Motorsports in Lebanon. LRC provides you access to the
best drag strip and drift skid pad in the Middle East, which allows participants to unleash the
power of their cars and bikes in a safe and controlled environment. We aim to improve the
reputations of this kind of sports. Remember, you don’t have to be a pro! Anyone is allowed
to participate! As a Lebanon first racing facility our primary approach is simple, to please car
and racing enthusiasts and to bring like-minded thinking so together we can share thoughts,
experiences, and interests in motor racing. Our common goal is taking racing off the streets
and to provide donation to local racers, racing programs, future stars, and contributions to the
preservation of local racing. Our drag strip is equipped with the newest drag racing technology
in terms of the tarmac and the equipment and facilities provided for racers and fans. This

23
business cannot be achieved without motivated and well trained personnel. We will provide
our employees with fair treatment and good working conditions.
4.4 Hierarchy of Goals
In order to accomplish our mission, we have to set goals that are challenging, realistic and
attainable. Hierarchy of goals will be divided into three categories: Strategic, Tactical and
Operational. The strategic goals will be set by the top management, the tactical goals by the
middle management and the operational goals by the line management. However, it is best if
everybody participates in the brain storming and formulation of the strategies.
4.4.1: Strategic Goals
Strategic goals are a milestone the organization points to achieve that evolves from the
strategic issues. They transform strategic issues into specific performance targets that impact
the total organization. Strategic goals are general in nature and are set for a period more than
five years, therefore considered long-term plans.
LRC’s strategic goals are:
 Gain 60% of the local market share after three years.
 To attract the largest number of racers and car enthusiasts worldwide after four years.
 To open training sessions in our track for the public to become future racers, and give
them awareness on road safety regulations.
4.4.2: Tactical Goals
Tactical goals are more specific than strategic goals, and should be reached within two or three
years. They support the strategic goals and their aim is to contribute in achieving it.
Find below the tactical goals of the company:
Operations Department
 Efficient staff management with sales forecasting.
 Efficient handling of inventories.
 Buy more property space near the track for further parking lots in the future.
 Decide how many employees to hire, train and motivate.
 Make deals with international and local franchised restaurants to open Kiosks in our
arena to provide best quality food to customers. And we provide them with the best
rental fees.

24
These are the steps in Preparing and operating a drag race:
First, prepare for a day at the drag races: Bring only the essentials including: a camera or video
(for bragging rights), folding chairs to be comfortable in the pits, helmet (required if car is
quicker than 8.6 seconds & ALL motorcycles), long pants, shoes and sleeved shirt (for
drivers). Racing participants pay $60 as a starting price, depending on the car category (car +
driver).
Second Technical Inspection: Before any vehicle can race it must first pass the basic safety
inspection. Things such as tire tread, brakes, safety belts and steering are checked closely. No
leaking fluids are allowed. Some Certified tech inspection personnel will assist racers with
compliance issues.
Most late model factory original vehicles pass through tech inspection in only a few minutes
while some of the highly modified muscle cars require more scrutiny. Vehicle must be clean
inside and out.
Third Racer Registration: Once the tech inspector is done checking your vehicle, he will sign it
off allowing you to go to the next step at racer registration. All drivers must show a valid
driver license, and sign a liability release form before being allowed to race. You will be given
a wristband and a "run-card" that shows track personnel that you have successfully completed
the technical inspection/registration process. Finally, a number is applied to the windows of
your vehicle using a white "shoe polish" like marker. That number is used to identify and
group the competitors to race control personnel.
Fourth The Pits: The racer can now go find a pit space to claim. Using cones, tires or chairs to
mark a space is common and acceptable; however, you must be careful not to block fire-lanes
or park in someone else's pit space. While it's acceptable to work on vehicles in the pits there is
no draining of fluids allowed. Vehicles on jacks must use jack stands. Anytime the vehicle is
running a licensed driver must be in the driver seat with all safety equipment in place.
Fifth Staging Lane: When only a small number of racers show up at the track the "staging
lanes" will be open to all racers at the same time. However, when a large number of racers
show up on race day, the lane calls will be made by groupings. The groups will be called
depending on the nature and format of the event. In example, if about half of the cars are
imports and the other half are domestic cars then the call may be made by these groupings.
Other times the groups will be made by car numbers. When your group is called may proceed
to the rear of the "staging lanes". Be sure to bring your run card and have all loose items
removed from the vehicle. As you drive into the rear of the staging lanes a track official will

25
ask for your run card and direct you to a lane. This allows the track officials to verify that you
have been through tech inspection and to give drivers some instructions if needed.
When you get to the front of the staging lanes another track official will again ask for your run-
card. He will punch a hole in it to show that you've made a run and he may even do a quick
check for safety items on your vehicle. He will then direct you to the starting line area of the
track.
Sixth The Burn-Out: The area directly behind the starting line is called the "water box" and is
designed for heating the tires to maximize traction. A track official will signal you to stop
when the drive tires are in the water box. On his signal you may "power brake" the vehicle to
spin the tires for up to 5 seconds. Properly done, the tires will heat up from spinning and start
smoking as you allow the vehicle to move forward out of the water box. Vehicles that use
racing slicks benefit the most from a good smoky burnout because the hot tires will provide
maximum traction on the track.
Finally, The RACE: Immediately after the burnout you may stage your vehicle on the starting
line. Once both vehicles are staged, the Christmas tree will be activated to signal the start of
the race. After the vehicles exit the track, they return to their pit area using the return road.
Racers can stop along the return road at a station called "Time Slips" where a track official will
hand the driver a printed slip that shows his times. The time slip will have your vehicle
number, the class you're in (if applicable) and the incremental times of your run. The first
number is your dial-in printed as "R/T", followed by your 60' time, 330' time and finally you're
660' time printed as "E.T.", and you’re our top speed. Another number prints below as "MOV"
which shows the mathematical margin-of-victory for your race. The speed on the return road is
limited to 5 m.p.h.
 Finance and Accounting Department
 Install an accounting information system within one month.
 Manage day to day financial and accounting activities.
 Provide future income and cash flow statements, and break even analysis.
 Marketing Department
 Create a customer service department.
 Provide segmentation, targeting, and marketing mix strategies.
 Make advertisements through TV, radio, and social media.

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 MIS Department
 Create a website for our company.
 Make ERP system for the following operations:
- Ticketing.
- Restaurant kiosks.
- Application forms for racers.
- Mobile app.
4.5 Choice of Strategies
According to Michael Porter, strategies are basic approaches to strategic planning that can be
adopted by any business in any market or industry to improve its competitive performance.
These strategies can be applied at corporate, business, and functional levels. Each company
can adopt a different strategy to reach its goals. The main generic strategies are:
 Cost leadership strategy.
 Differentiation strategy.
 Focus strategy.
4.5.1: Cost Leadership Strategy
Cost Leadership emphasizes producing standardized products at a low per-unit cost for
consumers who are price-sensitive. Two alternative types of cost leadership strategies can be
defined. Type 1 is low-cost strategy that offers products or services to a wide range of
customers at the lowest price available on the market. Type 2 is a best-value strategy that
offers products or services to a wide range of customers at the best price-value available on the
market; the best-value strategy aims to offer customers a range of products at the lowest price
available compared to rival’s products with similar attributes.
In our project, we will be using type 2 which is best-value strategy. We have different prices to
offer according to seating class whether it’s regular, standard or VIP. The regular seat will be
the highest place, standard seat will be in the middle, and VIP will be at bottom front row
which is closest to the track. VIP is specialized with more comfortable seats with cup and tray
holders. There will be one price range for teenagers between 13 and 18, and another price
range for adults that are 21 and above. We will not charge kids from 12 and below to sit and
watch any event.
For the drivers who want to compete with their cars in the track, the pricing will be according
to each type of racing categories.

27
4.5.2: Differentiation Strategy
Differentiation strategy is used to differentiate a company from all its competitors by the
product or services they offer or by any process used in a certain function, it allows a business
to compete in areas other than price.
We are considered as the first to open this drag strip in Lebanon. In this case we control most
of the market share and therefore we will gain competitive advantage. We also will appoint
expert engineers and designers that have experience in building such strip. In addition, there is
a new product in the market which is the water proof tarmac; it is a type of tarmac that absorbs
the water in case of rain. The advantage of this tarmac is that when rain occurs in the middle of
an event, the racers and crowd won’t have to wait for a longer period of time because the
tarmac will do its job in absorbing the water immediately. This creates a safer track and an
unstoppable event.
4.6 Porter’s Five Forces Model
The Porter's Five Forces tool is a simple but powerful tool for understanding where power lies
in a business situation. This is useful, because it helps you understand both the strength of your
current competitive position, and the strength of a position you're considering moving into.
The Five Forces Analysis assumes that there are five important forces that determine
competitive power in a business position.
4.6.1: Threats of New Entrants
 This industry has high, thus the threat of new entrants is low because the cost of
building the drag strip is very high and there is no available space for it in Lebanon.
4.6.2: Determinants of Buyer Power
 Some customers are price sensitive; they have high bargaining power.
 Middle class customers seek quality and brand; they have low bargaining power.
4.6.3: Determinants of Supplier Power
 For our building supplies, our suppliers have low bargaining power since we have
many dealers in Lebanon. We have the freedom to choose who are the suppliers will
be, with different qualities and prices.

28
 For our water-absorbing tarmac, there are few suppliers and they are abroad. They have
high bargaining power and high control over price.
4.6.4: Threats of Substitute Products
 There are no direct substitutes. Customers might find our prices high and might watch
our events on TV, or may prefer buy tickets for cheaper prices such as for karting and
drifting events. They can also race and drift illegally in the streets because it has no
charge.
4.6.5: Rivalry among existing firms
 There will be no existing firms to rival our business because we will be the first and
only drag strip in Lebanon.
4.7 S.W.O.T Analysis
SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By definition,
Strengths and Weaknesses are considered to be internal factors over which you have some
measure of control. Also, by definition, Opportunities and Threats are considered to be
external factors over which we have essentially no control
4.7.1: Strengths
1. We are the first and only service providers of this business in Lebanon.
2. Employees with five years past experience in moderating and handling racing events.
3. Well-designed and successful marketing strategies
4. Strong Leadership.
5. Good internal communications.
6. We are able to give really good customer care.
4.7.2: Weaknesses
1. Limited funds.
2. New company.
3. Location of the drag strip may be considered a bit far. (The track will be held in
Qlayaat, Keserwan Area).
4. Project is very complex.
5. We are vulnerable to vital staff being sick and leaving.

29
6. Future competitors might take place.
4.7.3: Opportunities
1. Large number of customers (Car enthusiasts).
2. We will attract regional events and racers.
3. We have no major competitors.
4. Internet as a marketing tool.
5. Customers in the market are loyal.
6. Project will boost company’s public image.
4.7.4: Threats
1. Economic recession.
2. Unstable political environment.
3. Lebanon is prominent for a war.
4. Environmental constraints.
5. Time delays.
4.8 SWOT Matrix
The TOWS matrix is an important matching tool that helps manager to develop four types of
strategies SO (Strength-Opportunities), WO (Weakness- Opportunities), ST (Strength-Threat),
and WT (Weakness-Threats). There are eight steps to develop the matrix:
1. List the external opportunities
2. List the external threats
3. List the internal strength
4. List the internal weaknesses
5. Link internal strengths with external opportunities
6. Match internal weaknesses with external opportunities
7. Relate internal strength with external threats
8. Match internal weaknesses with external threats

30
Table 4.1 TOWS Matrix
Opportunities
1. Large number of
customers (Car
enthusiasts).
2. We will attract
regional events
and racers.
3. We have no major
competitors.
4. Internet as a
marketing tool.
5. Customers in the
market are loyal.
Project will boost
company’s public image.
Threats
1. Economic recession.
2. Unstable political
environment.
3. Lebanon is prominent
for a war.
Environmental constraints
Strengths
1. We are the first and only
service providers of this
business in Lebanon.
2. Employees with five
years past experience in
moderating and handling
racing events.
3. Well-designed and
successful marketing
strategies.
4. Strong Leadership.
5. Good internal
communications.
6. We are able to give really
good customer care.
SO Strategies
 Design a
marketing plan
and imply
promotion
strategies for our
customers (S6,
O1).
 Use the internet
such as social
media, to
advertise our new
project. (S1, O4).
ST Strategies
 Take advantage of our
strong leadership in
order to avoid
environmental
constraints (S4, O4).
Hire a project manager in
order to avoid time delays
(S1, O5

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Weaknesses
1. Limited funds.
2. New company.
3. Location of the drag strip
may be considered a bit
far. (The track will be held
in Qlayaat, Keserwan
Area).
4. Project is very complex.
5. We are vulnerable to vital
staff being sick and
leaving.
6. Future Competitors might
take place
WO Strategies
 Offer free bus and
winch rides for
our customers
(W3, O1).
WT Strategies
 Take advantage of our
strategic plan to avoid
future threats (W1, T1
T2 T3).
4.9 Internal Factor Evaluation
Internal Factor Evaluation (IFE) matrix is or short IFE matrix is used in strategy formulation it
is a tool for auditing or evaluating major strengths and weaknesses in functional areas of a
business. IFE matrix also provides a basis for identifying and evaluating relationships among
those areas.
The IFE matrix can be created using the following five steps:
1. List key internal factors
Conduct internal audit and identify both strengths and weaknesses in all your business areas
the more you can provide for the IFE matrix, the better.
2. Weights
Having identified strengths and weaknesses, the core of the IFE matrix, assigns a weight that
ranges from 0.00 to 1.00 to each factor. The weight assigned to a given factor indicates the
relative importance of the factor. Zero means not important. One indicates very important. If
you work with more than 10 factors in your IFE matrix, it can be easier to assign weights using

32
the 0 to 100 scale instead of 0.00 to 1.00. After you assign weight to individual factors, make
sure the sum of all weights equals 1.00 (or 100 if using the 0 to 100 scale weights). The weight
assigned to a given factor indicates the relative importance of the factor to being successful in
the firm's industry.
3. Rating
Assign a 1 to 4 rating to each factor. Practitioners usually use rating on the scale from 1 to 4.
Rating captures whether the factor represents a major weakness (rating = 1), a minor weakness
(rating = 2), a minor strength (rating = 3), or a major strength (rating = 4). If you use the rating
scale 1 to 4, then strengths must receive a 4 or 3 rating and weaknesses must receive a 1 or 2
rating.
4. Multiply
Now we can get to the IFE matrix math. Multiply each factor's weight by its rating. This will
give you a weighted score for each factor.
5. Sums
The last step in constructing the IFE matrix is to sum the weighted scores for each factor.
This provides the total weighted score for your business.
Table 4.2 Internal Factor Evaluation Matrix (IFE)
INTERNAL
STRENGHT
WEIGHT RATING WEIGHTED
SCORE
1. Only provider for
the service
0.12 4 0.48
2. Expert employees
in handling race event
0.09 4 0.36
3. Successful
marketing
0.06 3 0.18
4. Strong leadership 0.12 4 0.48

33
5. Good
communication
0.09 4 0.36
6. Costumer oriented 0.08 3 0.24
Internal weaknesses
1. Limited funds 0.11 1 0.11
2. New company 0.08 1 0.08
3. Location is far 0.07 2 0.14
4. Complex project 0.05 1 0.05
5. Turnover may be
high
0.07 2 0.14
6.Future competitors
might take place
0.06 1 0.06
Total weighted score 1.00 2.68
Major weaknesses (1), Minor weaknesses (2), Minor strength (3), Major
strength (4)
S1, S2, S4, and S5 with a rating of 4, represent major strengths with weights of 0.12, 0.09,
0.12, and 0.09 respectively. These weights are considered high concerning the strengths’
importance in our project. Being the only providers for the service gives us opportunities to
take advantage of the market with rapid increase of sales. Our expert employees in handling
racing events are ready for any type of event whether it is local or international. We have a
very strong leadership which makes us correctly apply our vision, and we have good
communication skills which is very important for team work.
S3 and S6 with a rating of 3, represent minor strengths with weights of 0.06 and 0.09. These
weights are considered lower as they show less importance considering these strengths. We
need a successful marketing enabling us to study the market by means of its strategy,
marketing mix, and media costs, and we have to be customer-oriented for our customer
satisfaction.

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W1, W2, W4, and W6 with a rating of 1, represent major weaknesses with weights of 0,11,
0.08, 0.05 and 0.06 respectively. These weights are considered high concerning the
weaknesses’ importance in our project. Our funds are limited which will show drawbacks in
our financial statement. Our company is new, which means that we might face many
constraints in our way. It is a complex project requiring much time and effort to deliver. We
might face new entrants as competitors in the future that might cause a threat to our business.
W3 and W5 with a rating of 2, represent minor weaknesses with weights of 0.05 and 0.06.
These weights are low concerning the weaknesses’ importance in our project. Our location is
far, but its easily reachable and would be very near without traffic. Turnover and absenteeism
might be high, but we have a large amount of employees and a high possibility of new joiners.
The total of weights must be equal to 1. We multiply each weight by each rating to find the
weighted score. The total of our weighted score is equal to 2.68. It is above 2.5, which
indicates a strong internal position.
4.10 External Factor Evaluation
External Factor Evaluation (EFE) matrix method is a strategic-management tool often used for
assessment of current business conditions. The EFE matrix is a good tool to visualize and
prioritize the opportunities and threats that a business is facing.
1. List key external factors
Conduct external audit and identify both opportunities and threats in all your business areas the
more you can provide for the IFE matrix, the better. Usually most common factors are
economic, social, culture, political and economic situation, legal issues, technology, and
competitive information.
2. Weights
Having identified opportunities and threats, the core of the EFE matrix, assigns a weight that
ranges from 0.00 to 1.00 to each factor. The weight assigned to a given factor indicates the
relative importance of the factor. Zero means not important. After you assign weight to
individual factors, make sure the sum of all weights equals 1.00 (or 100 if using the 0 to 100
scale weights). The weight assigned to a given factor indicates the relative importance of the
factor to being successful in the firm's industry.

35
3. Rating
Assign a 1 to 4 rating to each factor. Practitioners usually use rating on the scale from 1 to 4.
Rating captures whether the factor represents a response is poor (rating = 1), a response is
average (rating = 2), a response is above average (rating = 3), finally a response is superior
(rating = 4).
4. Multiply
Multiply each factor's weight by its rating. This will give you a weighted score for each factor.
5. Sums
The last step in constructing the EFE matrix is to sum the weighted scores for each factor.
This provides the total weighted score for the organization
Table 4.3 External Factor Evaluation Matrix (EFE)
Opportunities WEIGHT RATING WEIGHTED
SCORE
1. Large number of
customers
0.12 4 0.48
2. Attract regional
events and racers.
0.10 4 0.40
Use of social media
as marketing tool
0.13 4 0.52
3. No direct
competitors
0.08 3 0.24
4. Customer loyalty 0.05 2 0.10
5. Enhance public
image
0.07 3 0.21
Threats

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1. Economic
recession
0.15 1 0.15
2. Unstable political
environment.
0.12 1 0.12
3. War 0.10 1 0.10
4. Constraints 0.08 3 0.24
Total weighted score 1.00 2.56
response is poor (1), response is average (2), response is above average
(3), response is superior (4)
O1, O2, and O3 with a rating of 4, that allows us with a superior response, have weights of
0.12, 0.10, and 0.13 respectively. These weights are high concerning the opportunities’
importance in our project. We have a large number of customers because of the existence of
many car enthusiasts in our country. Our drag strip is licensed and will definitely attract
national and international events. In addition, Social media is known as the best and most
effective marketing tool.
O4 and O6 with a rating of 3, that allows us with an above average response, have weights of
0.08 and 0.07. These weights are considered lower as they show less importance considering
these opportunities. Currently we have no direct competitors which will allow us to take
advantage of the market. Our project will boost our company’s public image.
O5 with a rating of 2, that allows us with an average response, have a weight of 0.05. This
weight is low concerning this opportunity’s importance in our project. A Lebanese customer is
always loyal regarding any type of business.
T1, T2, and T3 with a rating of 1, that allows us with a poor response, have weights of 0.15,
0.12, and 0.10 respectively. These weights are considered very high as they show more
importance concerning these threats. Lebanon is facing a deep economic recession and a
political turmoil. It is prone to a war if governmental resolutions are not taken.
T4 with a rating of 3, that allows us with an above average response, have a weight of 0.08.
This weight is considered medium to high as it shows average importance concerning this
threat. Environmental constraints in Lebanon are low. Lebanon faces windy weathers with
heavy rains and snows each year, which are tolerable and not affective.

37
The total of weights must be equal to 1. We multiply each weight by each rating to find the
weighted score. The total of our weighted score is equal to 2.56. It is above 2.5, which
indicates that our business is doing pretty well, taking advantage of the external opportunities
and avoiding the threats facing the project.
4.11 Required Resources
The drag strip will be located at Qlayaat, Keserwan Area. In this place there was an old
deserted airport for more than three decades which belongs to the government and it is used to
race illegally. This facility is a quarter mile strip suitable for our project and near it there is a
plenty of space that we need for constructing other facilities like parking lots, garages for
storing equipment, racers’ cars and food courts. There will be two large spaces for parking lots
and six garages for parts and service. There will also be five food facilities. The plan is to
make negotiations with the Lebanese government so we can buy the land and renovated to
become the drag strip race arena.
4.11.1: Required Human Resources
4.11.1.1: Managers and employees.
In our project we will hire the following employees and managers:
 Four employees for our marketing department.
 Three employees for our accounting department.
 Four employees for managing the track during events.
 Three employees for food quality management.
 Three employees for ticketing.
 Five employees for safety.
 Seven mechanics for parts and service.
 General Manager.
 Process Improvement Director.
 Drag Strip Manager.
 Drift Track Manager.
 Ticketing Manager.
 Event Staff Manager.
 Safety Director.

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 Marketing Director.
 Food & Beverage Manager.
 Facilities & Maintenance Manager.
4.11.1.2: Other stakeholders.
 Government
Our government is the Lebanese government that will be providing us with financial
support for our project and help us by doing the following:
 Providing us with cheap loans and give us grants.
 Providing us with advice and information centres.
 Providing college courses and training programmes for entrepreneurs.
 Offering us subsidies or tax reduction.
 Maintain a stable exchange rate of the currency.
 Suppliers
Regarding our suppliers, we have many supplies such as steel for lamp posts and
building, concrete and cement for building, equipment, machinery, plastic for
attendees’ seats, normal and water-proof tarmac, pit tiles, bathroom tiles and
equipment, drainage, pit tools for car tuning, electricity generator and wirings, and
finally Drag Racing technological equipment. These are our following suppliers:
 DEMCO Steel Lebanon for steel and lamp posts.
 CONCRETE Lebanon for building concrete, cement and equipment.
 KHOURY Contracting Lebanon for building equipment and machinery.
 Lebanon Plastics for attendees’ seats.
 Tarmac Contracting Lebanon for normal tarmac.
 CEMEX USA for water-proof “Thirsty” tarmac.
 TRABOULSI CERAMICA Lebanon for tiles.
 TRAMCO Lebanon for bathroom equipment.
 Drain Aid Lebanon for drainage.
 HILTI Lebanon for tools.
 DEBBAS Lebanon for electricity generator and wirings.
 DREGSTUFF USA for Drag Racing technological equipment.

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 Society
Concerning society, LRC will benefit from two non-profit organizations “YASA” and
“KUNHADI”. The two are responsible for creating awareness for road safety in
Lebanon, and will play a huge role in spreading our project for the public, inducing
more safety awareness, and motivating everybody to come and attend our future racing
events.
Finally, our customers will be car and non-car enthusiasts as well, as we will do our
best to make them love this type of sports and discover its adrenaline-pumping features
that makes everybody use their energy and anger in a positive and safe way.
4.11.1.3: Importance of human resources.
These are five important aspects considering human resources which we will be
applying in our project:
 Make sure you think about human resource solutions
For many small businesses, it’s easy to forget about HR. But to avoid any legal
problems, you’ll want to be sure to set some guidelines. Spend some time outlining
what will and won’t be allowed in your business. This way, you’ll be able to convey to
your employees exactly what they can and can’t do. Best of all, this will also keep you
accountable as well.
 Having a good management philosophy
Now it’s time to review your management policies. Making sure that your team is
thriving and working at its best means being sure of how you’re running the team.
Make sure that you’re making responsibilities clear and that you’re communicating
expectations.
 Understand your customer
Another area to consider is customer service. One of the best ways to provide good
service is to know what your customers want and expect. It’s best to create a list of
your customers’ wants and needs. This way you’ll have a good understanding of what
they’re looking for.

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 Grow it all together
Another factor for running a great small business is making sure to grow it all together.
What do we mean by this? If you scale up the support department but not the
production department, you’ll have chaos. As you grow your business, make sure to
build departments at the same pace.
 Outstanding marketing
In today’s world, marketing is more than just TV ads and billboards. To best deploy
your small business’ marketing, you’ll want to consider the different channels available
to you. By using marketing like social media, mailers, and email newsletters, you’ll be
able to connect with your potential customers.
4.11.2 Required Equipment
These are the steps to be taken for our equipment and their process of building:
1) Buy land/use own property
2) Hire contractor to "okay" your operations (maybe even help you out)
3) Rent tractors to flatten land
4) Hire crew to use tractors
5) Calculate asphalt needed for your specifications by the ton per square inch
6) Rent trucks to carry loads of asphalt
7) Hire crew to lay asphalt and drive trucks (they will need special licenses for big rigs,
unless you use regular trucks with flat beds that aren't too big, but this will cost a lot
more money relative to time.)
8) Your crew may use tampers or rollers to flatten the asphalt, rollers are much easier and
faster... but you'll have to pay to rent them while your crew may have their own
mechanical tampers (if you see them using sticks with steel plates at the bottom you
should expect to pay TONS in hourly wages, because that'll take forever).
9) The stands and equipment (lights, megaphones, audio equipment etc.) will set you back
about $20K. Otherwise you'll just have an expensive strip of asphalt. You may as well
drop more money on it so you can profit off it in the end.
The equipment concerning the technological and other parts of building the strip are the
following:

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 60 Foot Timer
Measures the time it takes the car to cross the first 60 feet of the quarter-mile. This
shows you how well the car launches, which affects your elapsed times. Most street-
tired cars have 60 foot times around 2 seconds.
 660 Foot Timer
The 660-foot mark is the halfway point of a quarter-mile track. Your elapsed time is
recorded. At some tracks, speed (in miles per hour) is also recorded.
 The Tree
getting a good reaction time at the starting line (better known as cutting a light) all
starts with the Christmas tree. A good light, will give you a big advantage over your
opponent, especially if you are running the slower car.
In simple terms, the Tree is a set of vertical lights that gives the driver a visual
countdown to the start of a race. The lights are as follows, from top:
 Pre-Stage Indicator Lights
Round yellow bulbs that warn you when you are getting close to the starting line and
the staged (ready to race) position.
 Stage Indicator Lights
second set of round yellow bulbs that tell you when you are on the starting line and
ready to race. The bulbs light up when the front wheels of the car cross a beam of
light that goes to a set of photo cells. These cells trigger the timer when the car leaves
the light beam.
 Green Light
this is the one you're waiting for. When the green light flashes, it means you're free to
mash the gas pedal and make a run. This is called the launch.
 Red Light
if this bottom bulb flashes, you're out. The red light will go off when you leave the
starting line before the green light is activated, resulting in a disqualification. Known
as red lighting, this action automatically gives the win to your opponent.
 Reaction Time (RT)
This tells you how quickly you reacted to the green light on the Christmas tree. In this
case, it is set as, 500 second. You want your RT to be at or as close to .500 as
possible. If you react faster than that, you've just red lighted.

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 Miles Per Hour Timer
Also known as the speed trap, this timer is located 66 feet before the finish line. It
records the car's average speed between it and the finish line. This is the mile per hour
figure on your time slip.
 Finish Line
when you cross the light beam at the end of the quarter mile, you stop the ET clock.
The amount of time (in seconds) between when the timer was activated and when it
stopped is the ET figure on the time slip.The time split is after you make a run, the
guys in the little booth at the end of the track will hand you a piece of paper with
numbers all over it. This paper is called the time slip.
The time slip provides a wealth of information about a run. It tells you how well you
launched, how quick and fast you went at various points on the track, and what your
final ET and miles per hour and if you were racing against an opponent, the time slip
tells you how he did, too.
 Shutdown Area
Beyond the finish line is the shutdown area, usually a quarter mile or more in length,
where you can safely slow the car down to take the turnout that takes you to the time
slip booth. If something goes wrong and you can't stop the car, most tracks have a
sand trap, net, or other setup at the end of the shutdown to stop you.
4.12 Internal Policies and Plans
1. Opening hours are from 10:00 AM to 11:00 PM.
2. There will be two daily shifts for employees (five and a half hours each)
3. Total working hours are 70 hours per week.
4. Over time hours are to be paid 30% more than the ordinary working hours.
5. Each employee has the right of 15 days’ vacation per year in a condition that he/she
worked for the company not less than one year.
6. Sick leaves are allowed when a reliable report of sickness is signed by a trusted doctor
assigned by the company.
7. Health insurance for workers.
8. Warn or expel any employee that commits actions that causes damage to the company.
9. The right for each employee who lost a member of his/her family to take five days off
fully paid.

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4.13 Logo Design and Interpretation
4.13.1: Overview
A logotype is a graphic mark, emblem, or symbol commonly used by commercial enterprises,
organizations and even individuals to aid and promote instant public recognition. Logos are
either purely graphic or are composed of the name of the constitution.
4.13.2: Logo Design
Figure 4.1 Logo Design
Figure 4.1 Logo Design
4.12.3: Logo Interpretation
Lebanon Racing Club will be referred and marked as the number one provider of a licensed
drag racing facility in Lebanon. Some car enthusiasts are familiar with this type of racing, and
some are not. It will be officially introduced to everybody and they will have the curiosity to
experience the thrill of racing.
We have used two colors only in most of this logo that are black and white. These two colors
refer to the official racing flag which has black and white squares. This flag is used in races- at
the starting line and at the finish line- where the flag is raised by a race organizer to indicate
starting and finishing time for the racer.
We wanted a simple type of logo, because we believe that when someone looks at it, he will be
able to identify its components immediately. The letter “L” refers to the word “Lebanon”, the
letter “R” refers to the word “Racing”, and the last letter “C” refers to the word “club”. When
someone looks at the logo and doesn’t know what does “LRC” stand for, he will be able to
identify our business as a racing type facility, by identifying the racing flags that most people

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know. Finally, the flag between the two racing flags is the official Lebanese flag representing
our country of origin.

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Chapter Five
Marketing Strategy
5.1 Overview
A proper marketing plan helps a business to grow by identifying three subjects:
1. Knowing who are the customers.
2. How to reach them.
3. How to increase customer retention?
Other elements of a marketing plan include:
 Description of the product or service, including special features.
 Marketing budget, including the advertising and promotional plan.
 Description of the business location, including advantages and disadvantages for
marketing.
 Pricing strategy.
5.2 Market Strategy
5.2.1: Segmentation Strategies
It is the subdivision of a market or population into segments with defined similar
characteristics. Four major segmentation strategies are:
1. Behavioral segmentation.
2. Demographic segmentation.
3. Geographic segmentation.
4. Psychographic segmentation.
5.2.1.1: Behavioral segmentation.
A more concentrated form of market segmentation that groups consumers based on
specific behavioral patterns they display when making purchasing decisions, enabling
producers to adapt their marketing approach to specific groups.
Lebanon Racing Club targets customers that have the desire urge to watch and attend
racing events which will benefit them with adrenaline-pumping racing experiences. Our
customers will have loyalty to our business and will never miss any type of event.

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5.2.1.2: Demographic.
Demographic segmentation is market segmentation according to age, race, religion,
gender, household size, ethnicity, income, and education. Demographics can be
sectioned into several markets to help an organization target its consumers more
accurately. With this type of segmentation, an organization can categorize the needs of
consumers.
Lebanon Racing Club targets customers of all age, race, gender, ethnicity and
education. Our target customers will also be from abroad, for racers competing
internationally. They will be of all nationalities, religions and beliefs. Customers with
low income can attend either by racing or watching with our lowest prices provided.
Customers with high income race or watch with any of our offers.
5.2.1.3: Geographical.
Gathering and analyzing information according to the physical location of customers or
other data sources. Geographic segmentation is often practiced in marketing to know
where the products are being sold in order to increase advertising and sales efforts.
Lebanon Racing Club will be located in Qleyaat, Kesrwan, which is at the heart of
Lebanon. Lebanon’s is located in the Middle East, at the Mediterranean Sea, with an
area of 10,452 Square Meters, and a population between 3.5 and 4 million people.
5.2.1.4: Psychographic.
Psychographic segmentation is dividing the market based upon consumer personality
traits, values, attitudes, interests, and lifestyles. This type of segmentation allows to
better develop and market the products because there will be more match between the
product and each segment’s needs and wants.
Lebanon Racing Club targets customers that love cars and racing. Such customers
would like to drive fast, modify their cars, watch car channels, surf through car-based
internet websites and social media, and always talk about cars. We also target other
customers that are event lovers and keen on novelty.
5.2.2: Targeting Strategy
Targeting strategies are used in advertising in order to maximize sales by pointing marketing
projects to the most likely consumer base. There are three targeting strategies:

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Undifferentiated, differentiated, and concentrated. This way the marketing department spends
money to reach the customers who need the company’s services or products.
5.2.2.1: Differentiated targeting strategy.
A differentiated targeting strategy involves dividing the market into a few segments
and then targets those segments with the right marketing campaign.
Lebanon Racing Club will adopt this strategy by dividing the market into two
segments.
 Car Enthusiasts and Others as Spectators: This sector has a large amount of
customers, they can be any car enthusiast or families seeking to watch the best
racing action in respect to service quality and price.
 Local and International Car Enthusiasts as Racers: This sector includes car
enthusiasts as racers to participate in drag racing events with their cars. We will
target them to meet their demands by providing them the greatest racing
facilities.
5.3 Marketing Mix
The term marketing mix became popularized after Neil H. Borden published his 1964 article,
The Concept of the Marketing Mix. The ingredients in Borden’s marketing mix included
product planning, pricing, packaging, display, servicing, and physical handling. E. Jerome
McCarthy later grouped these ingredients into the four categories that today are known as the 4
P’s of marketing. The four P’s are the parameters that the marketing manager can control and
they are subject to the internal and external constraints of the marketing environment. The goal
is to make decisions that center the four P's on the customers in the target market in order to
create perceived value and generate a positive response.
5.3.1: Product/Service Strategies
Our service features two things; race watching and race participating. For People who want to
attend and watch races, we should provide them with the greatest spectator environment. First
of all, the spectator seats must be safe, by means of away from and high up the track. The track
and the spectator seats will be separated by steel fences joined by high quality steel nets. This
way, if an accident takes place, the spectators are protected from any sudden injury. We will
meet the needs of the spectators that will have a clear view of the race will be able to listen to
the engine sounds from the racing cars.

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Concerning the racers, they will have the opportunity to participate in a drag racing type of
race, which is on a straight and specialized track, from start to finish in a quarter mile distance.
For each racer, considering any car category, in a tournament for twelve contestants for
example, there will be a total of 13 races between them. In every race, the winner who reaches
the finish line first will be qualified for the next qualification race. The contestant who loses
will be disqualified from the race. The winning titles will go to the first, second, third, and
fourth places. The final race will be between the first and the second, and the winner will hold
the crown.
Lebanon Racing Club will try to satisfy all customers by having a top quality drag strip with
the most sophisticated technology and a modern drag racing experience. Customers whose
budgets are high will attend drag racing events in the VIP seating section and racers will
compete with expensive and highly modified cars by paying higher participation fees.
Customers with low budgets will be able to attend in the random seating section, and racers
will be able to compete with lower budget cars by paying lower participation fees, as each
category of cars has its own fees prices. Our aim is to not lose any sales and satisfy the highest
possible clients.
5.3.2: Place Strategies
The races will be held in one place which is at the drag racing track located in Qleyaat,
Keserwan. For tickets customer can either reach us geographically, or online at our website
which will offer them a quick and easy way to purchase tickets. They can follow all the ticket
details held in our brochure given from the track entrance and posted online in our website. In
addition, the access through our website to day will be very quick, which is through the use of
smartphones.
5.3.3: Price Strategies
We have different prices to offer according to seating class whether it’s regular, standard or
VIP, and according to age, whether he or she is a teenager or an adult. The regular seat will be
the highest place of the spectator area. The standard seat will be in its middle. Finally, the VIP
seat will be at the bottom front row which is closest to the track. VIP is specialized with more
comfortable seats with cup and tray holders. Children with ages 12 and below will be free of
charge.
The prices concerning age and seating will be the following:

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 For teenagers (between 13 and 18 years)
 Regular: 20 dollars
 Standard: 30 dollars
 VIP: 50 dollars
 For adults (21 years and above)
 Regular: 30 dollars
 Standard: 40 dollars
 VIP: 60 dollars
Customers who regularly attend will get 50% discounted tickets for five days, after attending
fifteen days in a row.
For the drivers who want to compete with their cars in the track, the pricing will be according
to each type of racing categories. These are the following car classes and race costs for drivers:
 Top Fuel Dragster (TF/D). The rail dragsters, or "diggers", are the fastest class. Among
the fastest-accelerating machines in the world, these cars can cover the dragstrip in less
than 3.8 seconds and record trap speeds over 325 mph. Top Fuel cars are 25 feet long
and weigh 2,320 pounds in race-ready trim. Methanol fuel mixed with up to
90% nitromethane is used. The price to participate with a Top Fuel Dragster car will be
1,000 dollars.
 Typical Funny Cars
 Top Fuel Funny Car (TF/FC) Similar to their Top Fuel counterparts but with a shorter
wheelbase and a carbon-fibre body that loosely resembles a production-based
automobile, Funny Cars, or “floppers,” routinely run in the 4.0s and can exceed
315 mph. The price to participate with a Top Fuel Funny Car will be 800 dollars.
 Typical Pro Stock Cars
 Pro Stock (NHRA, IHRA/MMPSA) Often called “factory hot rods” because of their
resemblance to production-based cars (and because they must maintain a relatively
stock appearance), commonly called "doorslammers", Pro Stockers can record quarter-
mile times in the 6.4 second range, and speeds over 210 mph. They can rev to more
than 10,500 rpm and make in excess of 1,300 horsepower. NHRA engines can be no
more than 500-cubic-inch (8.2 L) displacement while IHRA/MMPSA cars can run a
maximum of 820 cubic inches (13.4 L) (called "Mountain Motors"). Both classes

50
require the motors to be naturally aspirated. The price to participate with a Pro Stock
car will be 500 dollars.
 Pro Stock Motorcycle (NHRA and ANDRA) These highly modified vehicles, which
can run under 6.8 seconds at more than 195 mph, feature a purpose-built tube chassis
and a lightweight, aerodynamically enhanced replica of original bodywork. The price
to participate with a Pro Stock Motorcycle will be 300 dollars.
 Pro Modified (Pro Mod) or Top Doorslammer (T/D) Some engine restrictions, very
high power. Cars can run superchargers, turbochargers, or nitrous oxide. Cars running
blowers are limited to 527 cubic inches (8.6 L) while cars with nitrous can run up to
740 cubic inches (12.1 L). This class is globally recognised, although the name differs
between North America and Australia. The price to participate with a Pro Modified car
will be 600 dollars.
 Top Alcohol Dragster (TA/D). Known as Top Methanol Dragster in FIA competition.
Top Alcohol Dragsters resemble Top Fuelers, but have significant differences. They
may use a supercharged methanol-burning engine or an injected nitromethane
combination. They can run in the 5.1s at more than 280 mph. The price to participate
with a Top Alcohol Dragster will be 600 dollars.
 Top Alcohol Funny Car (TA/FC). Known as Top Methanol Funny Car in FIA
competition. Similar in physical appearance to their nitro-burning Funny Car
counterparts, Top Alcohol Funny Cars are restricted to the use of methanol fuel and
have three-speed transmissions. They can run in the 5.4s at more than 265 mph. In the
IHRA, Alcohol Funny Car is the fifth pro category, replacing NHRA's Pro Stock Bike.
The price to participate with a Top Alcohol Funny Car will be 500 dollars.
 Typical Comp Cars
 Outlaw Series. The price to participate with an Outlaw Series car will be 300 dollars.
 Pro FWD (Front Wheel Drive). The price to participate will be 200 dollars.
 Super Comp/Quick Rod The quickest of the heads-up Super classes (8.90 index) is
composed primarily of dragsters. Most cars are capable of running well under the index
but use electronic aids to run close to it without breaking out. The price to participate
with a Super Comp/Quick Rod will be 400 dollars.
 Super Gas/Super Rod Super Gas entries, which run on a 9.90 index, are primarily full-
bodied cars and street roadsters. No dragsters or altereds are permitted. As in Super

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Comp, competitors use electronic aids to run as close to the class standard without
going under. The price to participate with a Super Gas/Super Rod will be 400 dollars.
 Super Street/Hot Rod Racers compete on a fixed 10.90 index. All vehicles must be full-
bodied cars and weigh no less than 2,800 pounds except for six-cylinder cars (2,000)
and four-cylinder and rotary-powered cars (1,200). Engine and chassis modifications
are virtually unlimited. The price to participate with a Super Street/Hot Rod will be 300
dollars.
 Super Stock Super Stock vehicles resemble ordinary passenger cars, but are actually
heavily modified. Entries are classified using factory shipping weight and horsepower
and compete on indexes. The breakout rule is enforced. The price to participate with a
Super Stock Super Stock car will be 200 dollars.
 Stock Stock cars are similar to Super Stockers, but rules regarding everything from
engine modifications to body alterations are much stricter. Virtually any car is eligible
to compete, and entries are classified using factory shipping weight and horsepower.
The price to participate with a Stock Stock car will be 100 dollars.
 Sport Compact. The price to participate will be 100 dollars.
 Top Sportsman (NHRA and IHRA) Competitors in these full-bodied entries may
choose their own dial for eliminations, generally from 6.00 to 7.99 seconds. Full Tree
starts are used, and the breakout rule is enforced. Cars can run in the sixes at more than
200 mph. The price to participate with a Top Sportsman will be 400 dollars.
 Blown Top Dragsters
 Top Dragster (NHRA and IHRA) Competitors in these open-wheel entries may choose
their own dial for eliminations, generally from 6.00 to 7.70 seconds. Full Tree starts are
used, and the breakout rule is enforced. Cars can run in the sixes at more than 200 mph.
Cars can run any combination of motor: blown, turbo, nitrous or just all motor. The
price to participate with a Top Dragster will be 600 dollars.
 Top Fuel Funny Bike (high performance 5 second bikes). The price to participate will
be 500 dollars.
 Nostalgia Super Stock. The price to participate will be 300 dollars.
 NHRA and ANDRA Summit Racing series Super Pro, Pro, and bike. The price to
participate will be 350 dollars.

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 NHRA new class for Juniors is JR COMP running 6.90s at a top speed of 110 miles per
hour (180 km/h) (1/8 mile or 1/16 mile). The price to participate with a 150 dollars.
 Stock Street Legal
 Stock Street Legal is owned by a civilian, registered in the government and is
modification free. The price to participate with a Stock Street Legal will be 60 dollars.
5.3.4: Promotion Strategies
Lebanon Racing Club will target customers using Internet, Magazines and Word of Mouth.
Internet is the greatest vehicle to reach racers because a large majority of them surf through the
web in search of the latest car info. Magazines reach a large portion of the public, letting them
see what we have to offer. Word of Mouth is the one area we really hope to see develop, as a
personal endorsement by a customer is worth more than what any advertisement can achieve.
LRC will not only rely on social media as a promotion tool, it will also utilize the Lebanese
television network that today has nine 24/7 active channels. The majority of the Lebanese in
Lebanon are still watching TV at home or anywhere else more than using social media.
Therefore, it is an opportunity for us to advertise and promote our project through these
channels.
LRC will organize meetings with LBC, MTV and Future TV and OTV. These are considered
the most watched channels by Lebanese citizens. We have chosen the following TV programs
in which our company will appear:
 “NharkomSaiid” on LBC
 “Sabah el KheirYaLoubnan” on MTV
 “Aalam al Sabah” on Future TV
 “YawmJdid” on OTV
After taking appointments from the TV companies, we will send a crew composed of the three
people with good communication skills. They will introduce our project to the public and talk
about its components and specifications, and most importantly explain its benefits for the
Lebanese citizen. The crew will be ready to answer any question asked by the talk show
presenter, and the people who will call to contribute.
LRC will also benefit from the Lebanese Radio Network, by contributing through two radio
stations which are “IzeiitJabalLubnan” and “Izeiit al Sharq”. In the end, our aim is to spread
our message to all Lebanese citizens, and most importantly car enthusiasts.

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5.4 Media Costs
5.4.1: Magazines
Magazines or journals are a good way to attract consumers who are coupon minded.
5.4.2: Internet
Sharing content with thousands of followers at once isn’t the only benefit of social media for
business. Small businesses all over the world have been discovering the ways social media can
contribute to success and growth in all areas of their companies. Some of the benefits of social
media are:
 Social Media is an easy way to learn about your audience. For business in any industry,
the key to success is knowing your audience. Social media makes this possible, and
easier to accomplish than ever.
 Social media allows you to receive instant feedback from your customer’s perspective.
 Social media helps generate leads for one third of the cost.
 With Social media you don’t only communicate with customers but you also entertain
and create meaningful relationships.
5.5 Sponsorship Programs
Sponsorship is the act of supporting a person, organization, or activity by giving money,
encouragement, or other help. Well-designed sponsorship programs offer the ability to
distribute coupons, generate sales leads, enroll new customers, conduct corporate
entertainment, test market or introduce new products, directly increase sales through rights
agreements, and more through a single avenue. Sponsorship has the ability to create an
emotional connection with fans or potential customers.
5.5.1: Sponsorship in Drag Racing
It is a fact that Drag Racing leads the way in fan loyalty, which in part is an emotional reaction
that fans have because of their passion for the sport. This fan loyalty can quickly turn into
brand loyalty. It is the job of each racer to educate his sponsorship prospects of this fact as well
as the many opportunities that exist by partnering with his race team. It is up to the racer to
deal with sponsors and use them as valuable tools for his car tuning expenses and participation
fees. He should Identify companies that are currently in the mode of advertising, check out the
newspaper, TV commercials, racing channels, other racing broadcasts, and of course,

54
companies that are local track sponsors. He should spend quality time with his research in
order to save tons of time and money commonly wasted by calling companies that have neither
the budget nor a good alignment with racing.
The racer who has a sponsor and want to pay us a sponsored racing fee, will be handing us a
form that provides the name of the company sponsoring, the value amount of the fee, and the
number of its bank account. Then It will be the accountant’s duty to receive the money and add
it to our company’s balance.
5.6 Survey Results and Findings
In this section we will discuss about the results and findings of the market survey that we
conducted in Lebanon. Analysis of the findings is presented. The purpose of the survey was to
extract key qualitative and quantitative characteristics concerning age, gender, people’s
relations with cars, prices for entrants, safety, and where the business stand. The data collected
from the survey was entered manually for analysis. The aim of the analysis was to know was to
find out whether the survey results are feasible or not.
Since the survey questionnaire consisted of 10 questions, given to a hundred persons, we will
analyze each one using descriptive method (frequency and percentage).

55
5.6.1: Age
Table 5.1 Age Distributions
The results show that the majority of the respondent’s age distribution is between twenty-one
and twenty-nine years old.
5.6.2: Gender
Table 5.2 Gender Distributions
Age Frequency Percentage
17 or younger 8 8%
18-20 13 13%
21-29 72 72%
30-39 3 3%
40-49 4 4%
Total 100 100%
Gender Frequency Percentage
Female 37 37%
Male 63 63%
Total 100 100%

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5.6.3: Car Ownership
Figure 5.1 Car Ownership (Yes or No)
The chart shows that 73 persons own cars and 27 don’t. The number of people who own cars is
much larger than the ones who don’t, showing that they know at least a little about cars, know
how to drive, and can be eligible to race with their cars.
5.6.4: Car Customization
Figure 5.2 Car Customization (Like or Dislike)
The chart shows that 66 persons like customizing their cars whether they own one or not, and
34 people don’t. This shows that the majority are into cars and will have the curiosity to attend
racing events where most of the cars are customized for racing. Or, they would like to
customize their own cars for racing in the higher car categories.
0
10
20
30
40
50
60
70
80
Yes No
NumberofPersons
If He or She Owns a
car
Percentage
Frequency
0
10
20
30
40
50
60
70
Like Dislike
NumberofPersons
If He or She Likes Customizing Their Car
Percentage
Frequency

57
5.6.5: Street Racing Experience
Figure 5.3 Street Racing Experience (Yes or No)
This chart shows that 43 persons have been in street races with their cars, and 57 haven’t. For
those who have been street racing, we will do our best to attract them to race in our drag strip
instead of risking their and others’ lives in the public streets.
5.6.6: Racing in A Safe Environment
Figure 5.4 Racing in A Safe Environment (Yes or No)
This chart shows that 70% of the persons want to race in a safe and specialized track. This
explains that we have a large number of customers willing to participate with their cars in
racing events, and enjoy a safe and one of a kind racing experience.
0
10
20
30
40
50
60
Yes No
NumberofPersons
If He or She Has Been in a Street Race With His or Her
Car
Percentage
Frequency
0
10
20
30
40
50
60
70
80
Yes No
NumberofPersons
If He or She Wants to Race in a Safe and Specialized
Track
Percentage
Frequency

Lebanon Racing Club - Business Management Senior Project

Lebanon Racing Club - Business Management Senior Project

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