Tri Viet International School BUSINESS PLAN

Group 3Team Members:

Nguyen Thi Thanh Xuan Nguyen Thi Thanh Minh Do Duc Trung Dao Nguyen Trung Tran Xuan Toan Nguyen Luong Qui

ORGANIZATION BACKGROUND
international standard education for 6-18 years old students small class size of less than 25 students managed by experienced, qualified and caring academic teachers semi-boarding school -morning for Vietnamese education program developed by MOET- afternoon for British and American international curricula

TRI VIET MISSION VISIONS

Mission: challenge students to be independent, lifelong learners, strive for professional and highly qualified skills, able for global and regional integration and best serve our motherlandVietnam. Vision: a national leader in education for our students success in the global and regional integration challenging learning environment of child-centered, well-balanced, to be successful and responsible citizens.

Education, Enlightenment and Excellence

Tri Viet International School of Hanoi Organizational Structure

BOARD BOARD OF DIRECTORS OF DIRECTORS SCHOOL MANAGEMENT SCHOOL HEAD HEAD PRINCIPALS

Outreach & Outreach & Community Community Relations Relations

Teaching Teaching Department Department

Finance Finance Department Department

Administration/ Administration/ Facilities Facilities Development Development

COMPANY AND SERVICES

-2011-2016 lease a fully-furnished building in 2011fullyVan Phuc Diplomatic Compound -from 2013 commence the building of our own school facilities in An Khanh Development City on Lang-Hoa Lac express high way Lang-06/2016 construction completed -08/2016 school moved to the new facilities, introduced other new service lines e.g. boarding school,

Vietnam General Education System

Enrolment
3 year Upper Secondary (15-17 years old) 4 year Lower Secondary (11-14 years old)
100% 80% 60% 40% Primary ower Secondary Upper Secondary

ate 2010-2011

5 year Primary Education (6-10 years old)

20% 0%

Hanoi Demographic and Family Income

Hanoi Demographic Structure
100 90 80 70 60 50 40 30 20 10 0 Survey 1999 Survey 2004 Survey 2008 Ages 0-14 Ager 41+

Income groups
45 40 35 30 25 20 15 10 5 0 Survey 1999 Poorest Near Richest Survey 2004 Survey 2008 Middle

Total Residents Ages 15-40

Near Poorest Richest

Average Proportional Spending on Education in Family Income

Sur
 
f
E ucati %

Sur
E ucati %





E ucati

E ucati

 

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f %

F %

   
%

Current Key Service Providers in Hanoi Primary Education

Private 10% Inter.Org 1%

Public Private Inter.Org

Public 89%

Comparison of Service Cost

Name Location Facilities Curricula Service Cost/School year (US$)

Public

Fundamental Vietnamese Good location Large school area Far location, Higher inconvenient fundamental access Vietnamese and additional English course

30

Private

400 3,000

UN and Good International location, large area

International IB Diploma standard

6,500 11,000

SWOT ANALYSIS
Strengths Weaknesses Strong management team Far location of new school Good relations with relevant High start-up cost licensing bodies Good knowledge of the market Opportunities Threats Lucrative market New rivals Government Incentive policy Low competition

MARKETING STRATEGY SEGMENTATION

Vietnamese wealthy families Expatriates

MARKET RESEARCH
Direct interview survey Size: 200 Content: teaching method, curriculum, facilities standard, price, location Result: positive feedback

Sales Tactics
leaflet and brochure delivered door to door at the targeted areas information days for parents at big and high quality kindergartens free one week orientation course offered to children and parents an interactive website developed

Pricing Strategy
Perceived value based pricing Perceived value?
What other similar schools are charging in HCM and HN

Market skimming: little market competition

Critical Risks
Continued Government Support
Land rental Tax incentives

Relationship with stakeholders:

With authorities With potential investors, Construction contractors, Property Developers The teaching faculty

Critical Risks
Others:
Inflation rate Changes in market interest rates Foreign exchange risks

The Financial Plan

The 10 year plan
1st five year 2nd five year

The Financial Plan

Critical assumptions:
Governments incentives to education sector The countrys economic growth

Other assumptions:
Construction of new school facility Credit sale vs. credit purchase Repayment term and interest on long-term loan

The Financial Plan

Projected Profit and Loss
Sale, GM and NM
$20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000

USD
$8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 ($2,000,000)

Total sale Gross Margin Net Profit

5 Year

10

The Financial Plan

Break-even analysis
Break-even number of students in the first 10 years
2,500

2,000

No of students

1,500

1,000

Breakeven point

500

0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Year

The Financial Plan

Projected Cash Flow and Cash Balance
Net Cash Flow and Cash Balance in the 1st 10 years
$ 2,750,000 $ 2,500,000 $ 2,250,000 $ 2,000,000 $1 ,750,000 $1 ,500,000

US$ $ 1,250,000
$1 ,000,000 $ 750,000 $ 500,000 $ 250,000 $0 ($ 250,000) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 1 0

Net Cash Flow Cash Balance

Year

The Financial Plan

Projected Cash Flow by Activity
C sh Fl
$8,000,000

b A ivi

$6,000,000

$4,000,000

$2,000,000

USD
$0

Operating CF Investing CF Financing CF

($2,000,000)

($4,000,000)

($6,000,000) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

%$#

The Financial Plan

Projected Debt vs. Equity Capital
Debt vs. Equity Capital
$1 4,000,000

$1 2,000,000

$1 0,000,000

SD

$8,000,000

Total Liabilities Total Capital

$6,000,000

$4,000,000

$2,000,000

$0 1 2 3 4 5 6 7 8 9 10

Year