Management education with public spirit and market dynamism

INSTITUTE OF MANAGEMENT SCIENCES | PESHAWAR

FINAL ASSIGNMENT

Topic: Startup Analysis

Submitted By: Mohsin Khan

Muhammad Rehan

Adnan Rashid

Ali Ahmad

MBA (1.5)

Group D

Submitted To: Mr. Abdul Ghaffar

(Innovation & Entrepreneurship)

Date: January 17, 2019

1-A, Sector E-5, Phase VII, Hayatabad, Peshawar- Pakistan im|s

1.1 Introduction

Mr. Muhamamad Yasir Saeed Qazi is a 26 years old entrepreneur & business graduate, started his business “Global Friends Travel and Tours” in February
2018 at Islamabad. He has completed his “Bachelors in Business Administration” and “Master in Project Management” at Institute of management sciences,
Peshawar. After his graduation, he started his business which deals in Hajj, Umra, Ticketing, and vacation planning all over the World. His Family was a
pioneer in this industry in Pakistan and but due to some reason, they left the business in 2013.

Further, he explained that “After completion of my studies I tried to enter to the same business again. Since my family was already in this business. I tried to
use their previous links and connections for supervision and sought expert opinions and guidance from them.
My greatest fear was being an Immature and inexpert the already very huge and competitive industry. Before 2010 when my family was in this business at that
time there were only a few big companies in the market and the competition was almost nil. But when I entered the same industry the competition is enormous.
The reason is the economic downfall of Saudi Arabia. At that time only 15 companies in KSA were dealing with Pakistani umra companies. But now the
companies have grown to 700 in number in Saudi Arabia and the process of forming an agreement with Saudi companies is very easy and simple”.

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1.2 The Business Model Canvas

Key Partners Key Activities Value Proposition Customer Relationships Customer Segments

 Hotels owners  Handling Booking  Value proposition to  Loyalty Programs  Travelers

 Other  Lobbying travelers  Exclusive offers  Going for Umra
accommodation  Develop new travel-  Cheap prices  Credit Cards  Business People
providers related services to  Amount of choice  International students
 Airlines grow partner and  Customer service
customer base  Useful travel content
 Rental car
 Agents  Observe regulatory
 Value proposition to
landscape
travel service
providers (i.e. hotels)
Key Resources  Incremental revenue: fill Channels
otherwise empty-staying
 Office rooms  Direct Calls
 Employees  Global reach: helps hotels  Webpage
 Number of Hotels in to reach global markets  Social Media
contact  Risk reduction: no  Email
 Number of Areas booking, no commission
covered
Cost Structure Revenue Streams

 Property & Equipment  Tickets revenue

 Operations  Commission in
 Salaries o Hotel,
 Sales & Marketing o Air ticketing,
 Commissions o Car renting ;
 Taxes o Insurance

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He explained the competition and current situation of the business that “Back then the industry was service oriented. Clients use to seek service from Umra
operating companies. But now clients go to any company which offers the services at lower prices. The profit is margin is decreased 700 times. The company
competes through lower prices rather than services”.

The business is succeeded because his family was also engaged in this business and they helped them a lot.

“Few of my family members are still in this business. But they lack financial resources to directly connect to Saudi companies and directly provide the services
to clients. With their experience and my financial support, I succeeded in this business”.

It is very important to build a relationship with potential customers. Nowadays, Social Media is a useful tool through which you are in touched with your
customers but the most important is the direct call and customers are willingly responding to the phone calls. We cannot survive with an agent. As there is a
low-profit-margin so we are going for a direct relationship with clients.

Education and experience both are important to start a business but without education, you can start a business if you have experience. Through Experience,
you can learn about the ground reality and different dynamics of the business.

As business graduates, it was an informative and inspirational interview. We have learned that for starting a business you must have experience as well as
education. Also, keep in touch with experienced individuals. Secondly, for business, you must have to build a relationship with your potential customers.