CYBER LOUNGE

Geethanjali (09AC11) Iyer Karthik (09AC14) Tom Vincent (09AC42)

Objectives..
y To earn profit at less investments y To satisfy our customers providing best quality

service at effective price
y Providing the service at low cost by providing

the best quality at affordable price
y To know a fair return on the capital invested by

the owner

. core and functional competencies in Internet Café business .Mission Statement. y To achieve the economies of scale to minimize costs while maximizing value to customers y To achieve leadership.

Partnership .Organizational Structure..

.Promoters. y Iyer Karthik± MCA ± Business operations y Tom Vincent ± MBA ± Marketing y Geethanjali ± MBA ± Finance .

. Avinashi Coimbatore. . Road.Location. Near PSG College of Arts and Science.

Why such location..000 . y High visibility y Proximity to the majority of people living. who are from middle income group y Proximity to Private hostels setup in different areas of cities y Low cost rent Rs 16.

new software- better services y DSL (Digital for subscriber better line) Internet and high connection connectivity speed .Operational Feasibility« y P-4 computer systems y Usage of latest systems.

y DSL 1250 with a bandwidth of 512kbps .Contd« y DSL .improves the performance of video chatting & reduces the telephone expenses y Airtel¶s DSL Internet connection y Wide range of plans available.

Target Customers« y Students y Business people y Middle Income Groups y Private Hostels .

Marketing analysis« Product Differentiation Strategy !! .

Marketing Feasibility.different types of customers . y Unique services y Coffee shop y Music Library y Gaming y Location advantageous ..

Rs 500 -Weekly schemes ± Rs 130 .Promotions« y Coupons and discounts y Membership card: -Monthly schemes.

Opportunities« EDUCATIONAL INSTITUTES Engineering college Arts and science college Polytechnic college MCA college Primary school Higher secondary school 30 67 16 15 178 130 NUMBERS .

Threats« y Cost factor associated with keeping state-of-the-art hardware y Emerging local competitors .

TECHNICAL ANALYSIS .

. 10.000 .Proposed Capacity. The proposed project is based on 20 computer systems Project Cost« The total cost of the project is approximately Rs 11.

200 Total cost(Rs) 659..200 231.000 1110.000 28.200 . Capital expenditure Equipment Furniture and fixture Pre-operational expenses Total capital expenditure(A) Working capital Up front insurance payment Up front building rent Total working capital(B) Total investment in project (Rs) (A)+ (B) 0 192.000 918.000 192.Capital Outlay.

067 370.067 Ratio Amount(Rs) .067 370.. Particular Equity Shareholder Fund Iyer Karthik Geethanjali Tom Vincent 1/3 1/3 1/3 370.Means of Finance.

Factors considered for Investments« ‡ Location of the project ‡ Unique services ‡ Quality of service .

Equipment requirement. Description Number Cost per unit (Rs) Computer system(p-4) Hub Computer camera UPS Printer Scanner modern DSL Networking cable 21 1 20 1 2 1 1 500 ft 25000 6000 1000 60000 28000 4000 8000 10 / ft Total cost(Rs) 525000 6000 20000 60000 28000 4000 8000 15000 659200 Total equipment cost ..

000 276.000 .000 Annual Salary(Rs) 96.000 132.000 11.000 4.Human Resource « Description Network Administrator Web designer Assistants Total Cost Number 1 1 1 Monthly Salary (Rs) 8.000 48.

20% .Ratio Analysis« Return on owners equity = Profit after Tax x 100 Owners equity 2012 27.89% 2015 22.38% 2016 20.72% 2014 24.54% 2013 26.

83 times 2013 .17 times 2016 1.30 times .93 times 2014 1.04 times 2015 1.Ratio Analysis« Return on Assets = Profit after Tax x 100 Total Assets 2012 .

Net Present Value.724 664.319 549.848 432..310 .559 266.715 608.200) 400.110.200) 333.898 330.110.083 318.002 DISCOUNT AT 20% (1.122 293. YEAR 0 1 2 3 4 5 NPV CASH FLOW (1.678 475.

715 608.002 Pay back Period = 2 years and 5 months .678 475.724 664.319 549..Pay back Period. YEARS 1 2 3 4 5 CASH FLOWS 400.

Road Ahead« y Computer and animation courses y E.seva y Peripherals .

THANK YOU !! .

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