Final 501 Report EDUCATION TV

Assignment on New Business Venture: “EDUCATION TV”

Course: Introduction to Business-501

Submitted To

Md. Masudul Haque

Assistant Professor

Submitted By

Group No: 5

Section: B

Md. Nur Hossain ID: 150361

Aninda Roy Dip ID: 150362

Anik Uddin Ahmed ID: 150363

Md. Talha Talukder ID: 150364

Md. Rajiur Rahman Raju ID: 150365

Bangladesh Institute of Bank Management

Date of Submission: April 2, 2015

1

Table of Contents

Particulars Page Number

Executive Summary iii

Education TV 4

Company Summary 5

Market Segment 7

Products or Services 8

Sources of Earning 11

Pricing 12

Promotion 13

SWOT Analysis 14

Social Responsibility 16

Porter five forces analysis 17

Management Segment 20

Financial Segment 22

Bibliography 26

2

Executive Summary

“EDUCATION TV” is the educational based TV channel broadcast throughout the Bangladesh in order to spreading knowledge, make the education more easy and efficacious and to ensure the national development as well. Our vision is to be a premier TV channel in Bangladesh and contribute significantly to the educational development in Bangladesh. We will ensure all required instruments to make a highly educated and well developed nation. We, as a premier broadcaster of our country, shall adhere to highest ethical standards and values of our society. We shall cast our programs with objectivity, integrity and absolute professionalism. It will be a partnership business where each partner will contribute the same portion of capital and profit and loss will be allocated according to that portion of the capital. In case of domestic purpose we are targeting 2 segments; city area and rural area. For international market we are targeting South Asian countries & other different developing countries. Our main products or services include Analysis of academic book, study for job (Bank, Multinational Company), BCS session, world competitive exam ( GRE, GMAT, SAT, GED), IELTS ( Speaking, Listening, Writing & Reading), computer learning and access of internet, training to develop skill, learning for mother, health and neutrino etc. Advertising is the main source of earning of our TV channel. Social responsibility is the integral part of every business entity and as our business is closely concerned with the society, we are so much cautious about our social responsibility.20% of the whole profit will be contributed to the schooling of the street and poor people, 5% of the profit will be allocated to ensure the nutrition and good health of the street and poor people and many more steps will be taken. Our objective is to earn profit through the assurance of making an educated nation, wealth maximizing through national development and eradicate poverty from the country by making productive human resources.

3

iii

EDUCATION TV

“EDUCATION TV” is the educational based TV channel broadcast throughout the Bangladesh in order to spreading knowledge, make the education more easy and efficacious and to ensure the national development as well.

We are arranging different types of TV programs like the explanation of academic books, job related study, curriculum study and different training programs.

Vision:

To be a premier TV channel in Bangladesh and contribute significantly to the educational development in Bangladesh.

Mission Statement:

We will ensure all required instruments to make a highly educated and well developed nation.

We, as a premier broadcaster of our country, shall adhere to highest ethical standards and values of our society;

We shall cast our programs with objectivity, integrity, and absolute professionalism We shall harness new talents from all fields of our cultural life, nurture and promote

their growth, and place them forward We shall commit ourselves towards satisfaction of each of our viewer, worldwide, and

will be responsive to their expectations

Objectives:

To earn profit through the assurance of making an educated nation. Wealth maximizing through national development. Creating and assuring job opportunity for the country people Eradicating poverty from the country by making productive human resources. Uphold the country’s prestige throughout the world.

4

Company Summary

Company Name:

EDUCATION TV

Location:

40, ShahidTajuddin Ahmed Sarani, Tajgaon I/A, Dhaka -1208, Bangladesh.

Company Ownership:

It will be a partnership business where each partner will contribute the same portion of capital and profit and loss will be allocated according to that portion of the capital.

Name of the Owners:

There are 5 owners of the company. They are as follows according to their name:

Md. Nur Hossain Aninda Roy Dip Anik Uddin Ahmed Md. Talha Talukder Md. Rajiur Rahman Raju

Total amount of investment:

Total amount of investment is BDT 40000000 which will be financed 50% by owners’ fund and 50% by using debt. This will take from:

Commercial Banks Non-Banking financial Institution Financial institutions (that give loan for different specialized sectors). Borrowing from relatives and friends

5

Startup Summary

Particulars Amount of Taka

Amount of Taka

Cash RequiredCurrent Assets:Office Equipment

Long Term Assets:Plants & EquipmentRaw Material Purpose (1 Machine)For Production Purpose (2 Machine)Motor Van Business Premises (Rent of Factory,20000 Square feet) Warehouse & Maintenance cost (Per Month 50000)

Intangible assetsLicense fee

Collecting Material Cost:Cost Cleaning staff(Per Year)Estimation of Incentives

Total

50,00,000

10,00,000

20,00,00055,00,00012,00,00024,00,000 6,00,000

1,00,00,000

3,60,00010,000

2,42,90,000

6

Market Segment

Target Market: Our primary target is to capture our local market. Then we will go for international market.

Local market:

In case of domestic purpose we are targeting 2 segments:

1) City Area

2) Rural Area

1) City Area: In this market segment, we have mainly focused on Division town and district town. This part is very crucial to us. We believe that if our TV channel becomes popular in urban area, it will be benefactor for us to achieve our ultimate goal. That is why we have taken some special strategy for urbane area to make our TV channel more accepted and more popular. For example, we have planned to make a strong advertisement throughout the city area.

2) Rural Area: This segment includes the every Thana area and other local part of the country. Since we want to widespread our TV channel throughout the country, bucolic area is also important to us. For advertising our TV channel, we want to make different types of program like debating, seminar and quiz in different schools and college in city area.

International market:

For international market we are targeting South Asain countries & other different developing countries. In primitive stage we are not planning to broadcast our TV channel in overseas but we have a keen intention to broadcast later.

7

Products or Services

Analysis of Academic Book Study for Job (Bank, Multinational Company ) BCS Session World Competitive Exam ( GRE, GMAT, SAT, GED) IELTS ( Speaking, Listening, Writing & Reading) Computer Learning and Access of Internet. Training to develop skill Learning For Mother Health and Neutrino.

Analysis of Academic Book

Analysis of academic book is the main product in our business. We want to impart every book from class 5 to class 12 at different times in a day by our TV channel. Besides we want to emphasis the subjects like Math, English, General Science, Social science, ICT, History etc which seem difficult to the students. For SSC and HSC student, we want to arrange special session for the subjects of accounting, Finance, Marketing for the group of Business Administration; Physics, Chemistry, Biology, Hire Math etc for the group of Science; Economics, Geography, Statistics etc for the group of Human Studies.

Generally we know that our country does not have sufficient adroit teacher. Mainly the country people face a great scarcity of adept teachers. And it is so chronic for some difficult but crucial subjects like English, Math, Accounting, Finance, Economics, Physics, Chemistry etc. since we will arrange and operate our classes by the most renowned and well knowledge teacher, we think that the whole country students will be benefited and we will can assure our business purpose and goal.

Higher Studies:

It is true that our country students getting higher studies face a lot of problem in their studies. So we have planned to identify some most difficult and most demandable subjects and to make a season for those subjects. We will generally conduct those classes by the reputed teachers from the reputed universities throughout the country to ensure higher quality to the students. We believe that this program will be more popular to students which will ensure our popularity and growth. We want to adorn this season for the degree of:

8

BBA MBA LAW English Economics ACCA CAT and so on.

BCS and Job

To become a BCS holder or to get a good job is the ulterior motive of more than 90% students. And it is obvious that our country’s job examination is totally different from the students’ academic study. For example a student accomplished his post and higher graduation from the subject of finance but when he will give a job exam, he has to face the questions from the subject of Bangla, English, General Math etc. It is natural that the student will not face any question from his core subject. That is why our country’s students are so much worried about the job and BCS examination. And considering about this matter, we want to arrange a season based on job and BCS. Here all the matters related to competitive examination will be imparted with convenient strategy by the most talented students and teachers. The related topics in this seasons are:

Math (MCQ & Written) English (MCQ & Written) Analytical Ability Critical Reasoning General Knowledge Bangla (MCQ & Written)

GRE, GMAT, SAT, IELTS

It is fact that our country students’ performance for international competitive examination like GRE, GMAT, SAT, IELTS is very poor. As our country cannot ensure higher study for all the students, we emphasize our students to participate international admission test. For this reason, we want to allocate a program to the study in abroad. In this season, we will assign some preceptors to scrutinize the books which are so crucial for these examinations. Some of the books are:

9

Barron’s SAT, Cliff’s SAT GRE Big Book, GRE Math Bible Official GMAT Book Kaplan’s GRE & GMAT

Computer & Vocational Training

Present era is the era of technology. Now computer is using in every aspects in our life. In modern era every type of activities are done promptly and accurately by the help of computer. So we want to make a program based on computer, internet and other technology. Besides, vocational training is very crucial for creating employment and becoming self sufficient. So we also cherish to make a very attractive and pragmatic vocational training program.

Social and Cultural Attitude

Morality, Humanity, Integrity, Norms, Behavior etc directly affect to the culture and society as well as the whole country. So we want to organize a program based on this matter to ensure a happy society and to attract the people in our TV channel. We also want to make a program related to the religion for ensuring spiritual peace and happiness to the society.

10

Sources of Earning

Advertising Download fee of the lecture through internet Selling books and Articles Demanding Goodwill charge Selling ticket for arranging Debating, Seminar etc.

Advertising

Advertising is the main source of earning of our TV channel. The 85% 0f the total earning will come from this source. As our TV channel is education based, we have a great opportunity to get the advertising from some brands which are closely related with education like book Publication Company, pen producing company, private schools, college & universities. There are also many coaching centers like Saifurs, UCC, Udvas etc in our country and I think they will be highly eager to advertise their products and services via our TV channel. There are also many training institutions like BIBM, NIDA, also be interested to advertise through our TV channel. Now many banks are providing different types of services such as school banking and they will be highly interested to inform their clients about their services via our TV channel.

Besides, since our channel is highly concerned with youngster we have a huge opportunity to get the advertising of some renowned brands in Bangladesh like telecommunication brands, toiletries, cosmetics, cold drinks, mobile brands, computer & laptop brands and so on. In Bangladesh, the most cherished brand for the TV channels is telecommunication. And the most telecommunication companies are targeting the young generations in our country. So it is very probable that we will attract these companies very easily because our channel is closely concerned with the young group in our country. Besides, we are expecting electronic brands like mobile phone, laptop, and computer as they are also targeting young group. We are also arranging health and nutrition program where we are longing for getting advertisement of this related firms such as Square, Senora, Acme, SMC etc. in addition to these, we are also coveting the advertisement of the firms related to our programs.

Other Sources of Earning

We are also expecting to generate our income from selling books, taking charge when lectures will be downloaded via internet, demanding good will charge from the teacher, selling tickets for arranging debating, seminar, quiz etc. As we will arrange our every lecture by the reputed teacher and most convenient way, it is a great opportunity for us to converter this lectures into books. And it will help us to enhance our income. Besides, some teachers will intend to

11

participate in our program to amplify their goodwill. At that time we will get some opportunity to take charge from them and to widespread our income. Since we are education based business, it is very auspicious for us to arrange different types of educational program. And it will help us to increase our income.

Pricing

Pricing strategies usually change as the product passes through its life cycle. The introductory stage is especially challenging. Our company bringing out a new product faces the challenge of setting prices for the first time. We can choose between two broad strategies:

Market skimming pricing Market penetration pricing

We are following market penetration pricing for local market & market skimming pricing for International market.

12

Promotion

Promotion is one of the most important matters for every organization. So we want to carry these activities in the most strategic ways. For promotion, the procedure which we want to follow are:

Making rally in every district: for informing and making popular about our TV channel (EDUCATION TV), we want to arrange a rally in every district and some important Thana area. The people of this rally will wear school dress bearing festoon, placate etc which help to make a positive impression in peoples mind.

Arrangement of educational program: As our TV channel is educational based channel, we want to arrange different educative programs like debating, quiz, seminar in different reputed schools throughout the country. And we think that it will create a great popularity to our TV channel.

Advertising using both electronic and print media: at the incipient period, we will advertise our TV channel in both electronic media (other TV channel) and print media (like-newspaper, magazine etc).

Web Media: we will also use web media or Internet to publish our TV channel. We want to use online advertisement (Face book, Twitter, Gmail, Yahoo etc).

13

SOWT Analysis

A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Here we have done SWOT analysis for our company.

14

INTERNAL FACTORS INTERNAL FACTORS

EXTERNAL FACTORSEXTERNAL FACTORS

STRENGTH WEEKNESS

OPPORTUNITI-ESTHREATS

Internal factors:

STRENGTH: First mover in the country. Availability of experienced teachers at lower payment. Availability of office staffs at lower cost. People of Bangladesh are more enthusiastic to learn. Gradual decreasing of fixed and variable costs. Appearing as a country development patronizing TV channel

WEAKNESS: No previous experience. Huge starting cost. Comparatively high working capital. Strict government’s rules and regulations. Need to carry communication with different level of people.

External factors:

OPPORTUNITY: Very possibility to increase its wings (School, College, University, Training Institution

etc). Possibility to build up a national recognized brand. Huge opportunity to make it as an international recognized brand. Creating employment, making women empowerment and reducing poverty.

THREAT: Local and overseas TV channels. Government intervention. Different coaching & training centers throughout the country.

15

Social Responsibility

Social responsibility is the integral part of every business entity and as our business is closely concerned with the society, we are so much cautious about our Social responsibility. We will take some specific initiatives to carry our Social responsibility. These are:

20% of the whole profit will be contributed to the schooling of the street and poor people. 5% of the profit will be allocated to ensure the nutrition and good health of the street and

poor people. 5% of the profit will be distributed to the poor unemployed people for purchasing job

application form. Free seminar and training program will be arranged throughout the country for making

consciousness of family planning, empowerment of women and ensuring good health and nutrition.

Organizing different cultural programs to amplify social brotherhood and peace.

16

Porter Five Forces Analysis

Porter five forces analysis is a framework to analyze level of competition within an industry and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of an Industry. We have used Michael Porter’s five forces analysis of intrinsic long-run attractiveness of a market to plot the industry and competition for our company.

17

Rivalry among existing firms:

As our business is education based TV channel which is not available in our country, we have to face a little threat of rivalry among existing firm. There are also some other TV channels which are broadcasting somewhat similar type of programs, that is why we are also cautious about the threat of rivalry among existing firm.

Globalization:

Since the world is gradually coming closer, the competition is increasing day by day. So in this era of globalization if we want to survive successfully, we need standard education and training. So the growth rate of this industry is very high which allure a chronic competition among existing firm.

Competition among competitors:

This market is not yet competitive enough. There is no firm that directly casting this types of programs. There are very few channels which provide few programs based on education

Switching cost:

Switching cost is very high in this business which is a matter of concern about serious competition.

From the above discussion we can conclude that we will face little threat about the rivalry among existing firm which is auspicious for us.

Threat of new entrants:

Legal barriers:

There are not much legal barriers to enter the market. Current TV channels and other people or organizations may enter the market as this is the lucrative sector in business.

First mover advantage:

In our country there are many TV channels that have been casting different programs like News, Natoketc but no channel is casting highly education related programs which we have intended. So it is obvious that we will enjoy the First mover advantage.

18

Threat of substitute products:

Substitutes of our products are mainly coaching centers, house tutors, training institutions and other teaching academy. But as our process and medium are totally different from them, they will not be considered as threat able substitute product.

Bargaining power of firms that come for advertising:

As there are more than 30 TV channels in Bangladesh, the firms giving advertisement to the channels have comparatively more bargaining power. Besides, illegal competition between the TV channels accelerates them to control the bargaining power on their hand. But we expect that as we are closely concerned with young as well as whole groups, they will not affect us by their bargaining power rather after the ending of the incipient period, it possible for us to manipulate them.

19

Management Segment

Our Organization is a Partnership oriented organization. Here All the Owners are director among them chairman will be elected. Promotion & Incentives are made on the basis of performance of the employees according to our HR policy. For maintaining the factory environment we follow rules & regulations of labor law 2006.Different benefits like compensation & insurance facilities are given to the employees & workers. The key personnel are remunerated according to our salaries structure.Our Management Structure is as follows:

20

Salaries Structure:

Job Responsibility Qualification Number Annual SalaryManaging director MBA 1 24,00,000

Manager MBA 4 48,00,000Assistance manager MBA 5 36,00,000

Executives BBA 6 21,60,000Workers SSC 10 240000

Other staffs SSC 10 360000Total 1,35,60,000

Health & Safety Issues of the employees:

Bangladesh Labor Law Act-2006 Fire Extinguisher & Fire sprinkler Smoke Detector

21

Financial Segment

Sales Forecasting

Figure:Sales Forecasting(In BDT)0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

40000000

45000000

201420152016

Profit Forecasting

22

2014

2015

2016

0

2000000

4000000

6000000

8000000

Figure:Profit Forecasting(In BDT)

4300000

5600000

7200000

2014

2015

2016

EDUCATION TV

Income Statement

For the year ended 1st January 2014 to 31 December 2014

Particulars Amount of Taka

Turnover (net off VAT) 24300000Less: Cost of goods sold 20000000 Gross Profit 4300000

Administrative and Other Expenses 800000 Financial Expenses 5000001300000

Net Operating Profit 3000000

Net Profit Before Tax 3000000

Less: Tax Holiday Reserve 200000 Net Profit after Tax 2800000

23

EDUCATION TVBalance Sheet

For the year ended 1st January 2014 to 31 December 2014

PARTICULARS Amount of TakaASSETS:Non-current Assets: Property, Plant and Equipments 7500000 Capital work in Progress 5000000TV License 1,00,00,000Total Non-current Assets 22500000

CURRENT ASSETS:Inventories 5000000 Trade & Other Receivable 1000000Advances, Deposits & Prepayments 1000000Investment 5000000Stores & Spares 3000000Cash and Cash Equivalent 2500000Total Current Assets 17500000

TOTAL ASSETS 40000000

EQUITY:Capital 20000000

LIABILITIES:Long Term Loan 15000000

CURRENT LIABILITIES:Short Term Loan 5000000Total Current Liabilities 20000000

TOTAL EQUITY AND LIABILITIES: 40000000

24

EDUCATION TV

Cash Flow Statement

Particulars 2014-2015

A. Cash Flow from Operating ActivitiesCash At the Beginning of the yearCash Collection from different sourcesCash paid to Suppliers & Employees

Cash Generation from OperationsBank charge and interest paid

Net Cash from Operating Activities

B. Cash Flows from Investing Activities:

Acquisition of fixed assets

Cash and cash equivalent at the end of the year

40000000(2860000)

(2000000)

35140000

(9000000)

26140000

25

Bibliography

Websites:

www.wikipedia.com

http://en.wikipedia.org/wiki/Bangladesh_Television

Books:

PRINCIPLES OF MARKETING by PHILIP KOTLER and GRAY ARMSTRONG; ELEVENTH EDITION.

26