1) Company Overview Executive Summary Mission statement Product and services provided Business strategy 2) Management Team Human

Resources approach Roles and responsibilities Organisational Structure 3) Market Industry overview and market need Market Research Primary Market research Results of primary research Competitors Analysis Environmental/ PEST analysis SWOT Analysis 4) Marketing Strategy Market Segmentation Targeting Strategy Marketing Mix (4 Ps) Branding strategy Corporate Logo Positioning Strategy Sales Strategy Sales Forecast Pricing Strategy Promotional Strategy

What we aim to Achieve

Introduction to team and how we work

Who do we sell to? Why?

How we are going to sell.

5) Operations How this is going to work as a project Operations overview Operational Policy Role of operations in the company and approach to facilities and equipment management Business Location Sourcing and Outsourcing Strategy Inventory Management Procedures Quality Control Procedures Customer Services Procedures Technology Process Overview Expected Product Costs Patents 6) Risk Analysis 7) Finance How much money are we going to make? 1

Main assumptions KPIs Financial highlights Projected cash flows Projected Balance Sheet Break Even analysis Tax Liabilities. Appendix Appendix I: Market Survey (questionnaire of Primary Research) Appendix II: Patents Pro forma Income Statement Tangible Assets Marketing Spend Marketing Allocation Market Survey

H
Hushed Technologies (Ltd) Board of Directors (also referred to as Principles): 2

CEO: Tania Morrison Head of Finance: Sam Head of Supply Chain: Kavitha Head of Marketing: Abid Head of Operations and Technology: Park Head of Business Strategy & Human Resources : Zein Repeat Additions Take out Comment Mission Statement Hushed technologies provides disruption free environment to users with a focus on customer satisfaction whilst maintaining a strong brand image and focus on superior innovation. Business introduction
Hushed Technologies (Ltd) intends to provide innovative solutions to currently un-resolved common issues (such as the annoying ringing of mobiles in un-appropriate places). As its first project the company identified a common everyday occurrence, the ringing of mobile phone in meetings, lecture rooms and other places where they are least desired. This in turn leads to disruption and general annoyance. We will be launching our first product called Hushed which is named after the company. No Mobile Noise (NMN) is the name given to the first software developed to provide this solution. The software is designed to stop disruption and prevent the unwanted ringing of mobile phones within designated areas. Hushed intends to achieve this by installing NMN technology that will be able to suppress the ringing rather than interfering with the network as current technology either jams the phone or interferes with the network. This will be achieved by sending a signal that converts the mobile phone to silent within a designated area. We intend for these areas to be marked Hushed Zones (see Figure.1) so that people are aware that they have entered an area where there phone will not ring. However this does not mean they will be prevented from receiving messages or calls as in a jamming device. Once you exit the designated area the phone will return to its normal function.

Figure 1. Logo indicating a Hushed Zone

Primary focus (in the first year our business) will be on the university sector as our marketing research has indicated that there is a strong demand for such technology and universities have strong budget for acquisition of such technology. We have a sales forecast to sell to 25 universities in the initial year assuming, which is considered a very achievable number also within initial capital budget. In addition, the company has a view to expand to capture 100 of the 123 current universities in the UK within the next 2 years. We intend to also develop and role out Hushed technology to other identified segments businesses and organisations where the product hushed would provide which would like to create a disruption free environment in designated areas as demand increases and acceptance of the product increases. The unique selling point of this technology is that it provides a practical and effective solution to mobile phones ringing and disrupting important lectures, seminars, meetings etc. In the case of universities this irritates both the students and teaching staff reducing efficiency of the teaching process and until now there has not been a solution to this problem. We intend to be the first providers of this technology and with patents intend to create a new market in which we can expand without competition.

Product and Services provided:

The product consists of a base station that emits signals to turn mobile phones go on silent mode. Product sales involves two price points based on the sq foot area that it covers. Please find details of cover area and technology in the operations section. Our immediate focus is on the production of the software that will be effective in the designated Hushed Zones.Product Sales will involve the selling of the technology based on the sq foot area to be covered rather than the number of units to be set up. It is intended that the initial sale of the product hardware is expected to generate on average 25360 per university giving a profit margin of 63.5% per university. In addition, the companys objective is We intend to license (nationally) the use of the technology on an annual basis for institutions that have purchased the Hushed NMN technology which will provide a further long term revenue stream generating profit for Hushed. The company operations strategy is We intend to outsource the our installation and maintenance programs to two selected third party cater to customers from various backgrounds and this will allow the company to remain highly flexible and cost effective start to business operations to changes in demand. It has been identified that the keys to our success over the coming five year period are:

Successful Product launch with uptake as mentioned above. Positive brand positioning and company reputation in the initial stages of conducting business.

Innovation in our product range and portfolio (R&D) to continue to grow and expand product lines and revenues. Effective contractor management and value chain control and monitoring. Cost-effective capital structuring and investment. Internationalisation of our technology into new markets and territories including strategic alliances and joint ventures where necessary and profitable.

Business Strategy:
We intend to achieve the following strategic goals and targets in the initial 1 to 5 years of the business launch. Please find details below. Years 1 and 2: As part of our strategic approach the company we will initially is targeting universities in the first year. This is primarily due to the fact it is believed that universities are the most profitable buyers identified by the following reasons:

Universities have large areas that they wish to use for teaching and these areas are often affected by students (or other people) who have forgotten to turn their phone to silent. This means that by covering a larger area we can in turn generate greater revenue whilst keeping cost down. Universities are typically well funded and more receptive to such technology than other organisations such as libraries, schools and business. However this is not implying that these other institutions are poorly funded or not receptive to this technology. Our research (covered in the marketing section) has identified a strong buying potential and desire for such technology in universities. We are aware that whilst budgeting has meant that further research cannot be carried out on other institutions for comparison research shows that the university funding levels and teaching floorspace is the largest. In the initial year we are targeting a 20% stake of UK universities. However through our strategic approach to production and installation the company remains flexible enough to respond very quickly to increases in demand should this be from more universities or even other institutions.

Second year expansion will target the remaining 53% universities (to achieve the final target of 85% of all universities) and also to diversify to businesss, work places and other institutions to gain a strong presence in the UK. At the same time, the company will begin work on its global expansion to other countries. A cautious UK expansion is intended in the initial years primarily due to a desire to maintain strong cash flows and generation of license income in order to expand overseas in years 3 and 4. Years 3 to 5: By At this stage the product Hushed will be penetrated into Universities, cinemas, libraries and workplaces. it is intended that Hushed will have developed its market in the UK to the point where we are catering to 85% of Universities. Furthermore,expect to have implemented the plan to expand into new markets within the UK such as Cinemas, businesses and libraries. At this point the company will be maximising its revenue from local markets maintaining strong growth as roll out to Europe is expected. We have to mention what the company will do from 3 to 5 years not what we have achieved by then.

We will implement the launch of a new NMN 2 technology designed to work intelligently with the new generation of mobile phones. It will be vital that the mobile phone manufacturers and Hushed form an alliance to push this technology further. It is intended that any partnership between Hushed and the manufacturer would bring the following three main benefits:

Manufacturers will be allowed to use the Hushed NMN 2 Logo to indicate to customers that the phones have the advanced silent technology. This will be at the stage where Hushed is a strong brand name with technology used throughout the UK and Europe. This will allow further marketing of the phones new features. Technology advances will provide customers with more interactive solutions, for instance: a product that allow customers a greater degree of freedom on the preferences of the phone profile so as to customise the phone when silent, for example vibrate only or chime once when entering a hushed zone and twice whilst exiting etc. It could be that we have location preferences feature where the lecturer (for example) can decide if he or she wants no ringing at all or meeting setting (if it is a more casual atmosphere). Hushed will also gain strategic advantage by such a venture and be able to cut costs by developing this technology jointly with the considerable resources that large mobile manufacturers provide and also licensing fees paid to the company for use. When successful this will lead to further alliances to develop new innovative technology for wider application and in different industries.

The NMN1 software can then be sold internationally as it is intended the world patents will prevent new entrants duplicating our designs and profiting. It is intended that multiple collaborations with mobile manufacturers will be possible and sought to develop technology built into the phones that extends the options available in hushed areas.

Years 5 to 10. The potential for the development of this technology is considered far reaching and it could be developed further if at this stage it is desirable to do so. Certain further uses of the technology are also:

At petrol stations to prevent anyone using the phone, which is very dangerous and this may even become a mandatory requirement for all petrol stations. In Aeroplanes and Hospitals where such technology can interfere with vital equipment. This again could become a mandatory requirement at these venues. Restricting the driver of a vehicle from using a mobile phone while driving. He or she would only be able to use the mobile phone with a free hands kit.

It is anticipated that with the NMN1 and NMN2 technology we will also have after 5 years a range of other innovative solutions and ventures designed to promote the company and create new innovative technology ------- to provide disruption free environment-----for which we hope Hushed becomes synonymous for. The These ideas mentioned above will could all generate further revenue and profit for the company even if no other strategic direction is taken. However the company is strongly committed to the business plan in the initial 5 years after the launch of the new technology and any decisions after this period are to be considered by the directors at that time. The potential for growth is still exceptionally high even at this stage however

and this in no way effects the long term profitability of the company. The approach is due only to the principles preferences at this point and the long term company goals are considered to be fluid. It may be that the company switches to licensing as opposed to outsourcing the production however this is to be considered after the five year stage as the company has been designed to be fluid and adaptable to the prevailing conditions.

Human Resource Approach to the business.

Hushed technologies will be employing initially only the principles outlined on below and no direct staff hiring has been deemed necessary. The company will subcontract and outsource the installation of the technology to reputable agencies. This will minimise fixed cost and resource costs to the company. The salaries of the principles have been identified in the accounting section. All relevant tax, national insurance and dividend implications are also considered in this section. Where is the sales force Manufacturing is also outsourced to minimise the over head and capital investment required at this stage. It is planned that this will be the long term approach as long as it remains profitable to do so. The technology and rights to this technology will be held by Hushed, It is not expected that there will be any new workers in these areas at this stage. However as the business grows certain administrative tasks may require the hiring of some staff to organise and administer company dealings as sales and ordering become more complex. A projection after the first year of this based on four part time administrative assistants has been identified in the finance. Organisational Structure The roles of the directors is shown below:

Tania
CEO

Marketing

Abid

Human Resources

Zein

Supply Chain

Kavith a

Sam
Finance

Operation & Technology

Park

Legal Business Status

Hushed is a limited liability company (abbreviated L.L.C. or LLC) which offers limited liability to its owners. It is a hybrid business entity having characteristics of both a corporation and a partnership. It is therefore more flexible, the owners have limited liability for the actions and debts of the company. The primary corporate characteristic is limited liability while the primary partnership characteristic is the availability of pass-through income taxation. Hushed also plans to expand in the year 2010, by inviting the general public to invest in its operations. We plan to use the additional capital generated through this process in order to further invest in research and development projects.
Mobile Phone Industry overview and market need

Mobile phone usage is still increasing all over the World. It is predicted that by 2009 there will be more than 3 billion mobile phone users all around the globe (Mobile Herald 2006). Additionally, it is predicted that 79% of households in the UK would have a mobile phone by next year (Statistics UK, 2007). Interestingly, the UK holds the 6th place of household owning a mobile phone (Mobile Herald, 2006). Mobile phone usage has increased in recent years, and has become an integral part of peoples life style. The majority of adults in the UK now have a mobile phone. There are 45 million adults in the UK, and there are 70 million mobile SIM cards, therefore, on average, each adult in the UK has 1.5 mobile phone each (Guardian, 2007). These developments and increases in the mobile phone usage and proliferation will inevitably lead to a greater level of disruption which will further the business viability of Hushed and the NMN product. In some public places such as classrooms, seminars, cinemas, theatres and meeting rooms the ring tone of mobile phones is typically unacceptable due to the fact that this causes interruption and disruption in these areas. Nevertheless, people who attend these public places, for one reason or another, still forget to switch off their mobile phones or put them on silent, consequently the ring tone of the mobile phone still disrupts meetings or events. Each public place where mobiles need to be switch off has its own way to let people know about their own policy and view on ringing phones, for example O2 has launched cinema advertisements reminding people to turn off mobile phones before the movie starts. Hushed could provide a solution to such an issue and unlike the advertisement people would not have the option of forgetting to switch their phone to silent. Another example is universities where sometimes the lecturers have to remind students to switch off mobile phones however many students still forget. Simply requesting to switch phones off or to silent is not an effective way to make students switch off mobile phones. Hushed is the answer to this issue. We can write the above in two lines, also its mobile phone industry overview not the problem we are resolving, Industry overview should include competitors in the industry, new threats or opportunities There is a dilemma on the usage of mobile phones in the various regions of the world resulting in different cross-cultural perceptions on the use of mobile phones. According to Scott Campbell, who has studied the use of mobile phones in public areas there are multinational trends in how people think about and use their mobile phones. In other words, the attitude and use of mobile phones differs in each country and depends on cultural aspects. In addition, he believed that the social acceptability of mobile phones usage is relatively fixed, for example it is far more acceptable to use mobile phones in the street than in the middle of a seminar. However, it also depends on the country and culture, for example in the UK it is less acceptable the usage of mobile phone in cinemas than in Taiwan, where it is far more acceptable. As a result the use of mobile phones strongly depends on cultural attitudes and on the social etiquette in each country. However, higher ratings of unacceptability might not necessarily translate into less use of such devices (Campbell, 2006). This will have a strong impact on how we target and position our technology in forign markets as needs and attitudes differ from region to region. Another point of view is by Tommy McCabe (2006), who is the director of the Irish Cellular Industry Association. He believes that the use of mobile phones in public places (such as classrooms, cinemas, libraries) is only a behavioral issue and the only way to cope with it is through education. However mobiles phones have been around for many years and to

attempt to change behaviour through education would almost certainly be a prolonged, expensive and ineffective approach to a current problem. Pest should also complement the industry overview Market Research Market research was conducted in order to collect relevant data to understand the customer needs and asses the market potential for Hushed. The market research process consisted of four steps: 1) Identifying the problem: The core problem is to avoid the ring tone of mobile phones in universities in an automatic way without blocking the signal of mobile phones. Research was conducted through questionnaires in which students and lecturers feedback was collected. 2)Conducting research into identifying potential customers and the target market.

3) Collecting and analysing the data: The collection of data was through primary due to
budgetary constraints. Secondary research was not felt necessary due to the strong trends displayed in the primary research. 4) Interpreting and reporting the findings: The findings are explained below. Primary Research Due to the fact that hushed will be launched in the UK and in order to find out peoples perception of the use of mobile phones in universities, we conducted primary research using questionnaires. A survey questionnaire with a total sample of 174 people was distributed in educational institutions (Appendix 1). The objective of the questionnaire was to help us to understand the market need as well as the market potential for Hushed. Its mentioned below that 200 questionnaire were given out Results of Primary Research The primary research consisted of 200 questionnaires in total (see Appendix 1), from which we received the response of 174 people. The surveys were distributed in 3 different universities in the North of the UK (Leeds University, York St John University and the University of York). The 174 sample size survey consisted of 59% of men and 41% of women. Most of the respondents were part of the academic institution and consisted of 66% students, 16% lecturers, 28% school staff and 4% other. Additionally, an overwhelming majority of the respondents, 98% have a mobile phone, whilst just 2% of the respondents did not have a mobile phone. In conclusion, the survey identified that 7% of the people forget to switch off their mobile phones and 15% forgets occasionally. Therefore, 22% have the probability that their mobile phones will ring during lecture or seminars as illustrated in Figure 1.1. In addition the survey also asked the acceptability of the product hushed which will put their mobile phones on silent automatically. For this question, 84% respondents cited a positive view about the idea of hushed (see figure 1.2) What was the most defining outcome from the research, always mention information that is relevant to us. Figure 1.1 illustrates the responses of the people, when asked about the frequency of forgetting to switch off their mobile phones. The results revealed that just 35% of the respondent cited that they had never forgotten to switch off their mobile phones, whilst 15% of the respondents cited that they always or most of the time forget to switch off the mobile phones.

How often do you forget to switch off your mobile phone?

8% 35%

7% Alw ays 15% Most of the time Sometimes Seldom Never

35%

Figure 1.1 Frequency of forgetting to switch off mobile phones

The graph below (Figure 1.2) highlights the reasons of the responses to a key question of the survey. The survey asked people about their opinion towards Hushed a new technology which will put their mobile phones on silent automatically. The majority of respondents 84% cited a positive view about the idea of hushed, 9% of the respondent were unsure about their answer, and just 7% disagree with the idea of Hushed.
If there were a method of putting a mobile phone on silent automatically during the lecture/tutorial/seminar/meetings would you support the acquisition of such technology in your institution

9%

7% Definitely Yes 51% Not sure No

33%

Figure 1.2 Opinion about hushed

Figure 1.3 illustrates the response to the question of the importance of other people switching off mobile phones when they are in the middle of a lecture, meeting, seminar or class. The majority of respondents believed that it is extremely or very important to switch off mobile phones, whilst just 6% of the respondent disagreed.
How important is it for you that other people switch off (or turn to silent) their mobile phones when you are attending a lecture/tutorial/seminar/meeting?

32% 12% 4% Extremely important Very Important Somewhat important 2% 50% Not very important Not at all important

Figure 1.3 Importance of non interruptions of mobile phones

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Competitors Analysis There is no close competitor to Hushed due to the fact that there is not an identical product in the market. However, there are some distant competitors. The main difference is that the distant competitors such as Jammers and Flight Mode block the signal of the mobile phones whilst Hushed put mobile phones on silent mode. The distant competitors could be in some way alternative products but not substitutes products of Hushed, due to the fact that Hushed does not block the signal of the mobiles phones. The Jammers are devices that inhibit the transmission of the signal of mobiles phones. Nevertheless,Jammers are illegal to use in the UK, but legal to own. Therefore, it can not be a product competitor in the UK. However, it is important to have knowledge about Jammers for the entrance to foreign markets in the future. Another product competitor is the Airplane Mode. Nowadays, this feature is integrated in most new mobile phones and allows using the basic operations of the mobile phone such as datebook, music player, games, video player, camera, etc while the transmitting signal is switched off. The main objective of the airplane mode is to avoid blocking the signal where the phone is not permitted for example in airplanes, banks, petrol stations, etc. Nevertheless, this feature has had a lot of controversy in flights in the last years, for the reason that most of the airlines do not have an official standards for such feature on mobile phones and as a result the airline or flight attendant ask on-board customers just to switch off phones, no matter what explanation customer gives, however it depend on the airline and its policies. As a result, we can conclude concluded, that neither of the alternative distant competitor products that are our distant competitors of hushed have the same main objective of hushed; that is simply to put the silence the ring tone of mobile phones on silent mode, in order to get a disruption free environment while allowing the transmission of the signal. The following chart shows the steps in analysing competitors

IdentifyingCompanys competitors
Jammers Air flight Mode

Objective: T block the transmission of signal of o mobile phones Illegal to use in the UK, but legal to own

AssessingCompetitors

Objective: To switch off the transmission of signal of mobile phones Allowing users to use basic operations of mobile phones such as: music player, games. Integrated in most of the new mobile phones in the mark et

Usagein other countries: In hospitals, libraries, jails

Selectingwhich competitor to attack or avoid

Jammersare illegal in UK
(Kotler, et al 2008, Competitive Analysis)

Air flight mode: Different objectivethan hushed, so it is just a distant competitor

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A PEST and SWOT analysis was also conducted to identify relevant issues to the business, the details of which are below. PEST POLITICAL
Tax policy Rates and Incentives Environmental Regulations Employment Laws Trade Restrictions and Tariffs Political Stability European/international legislation Regulatory bodies and processes Government policies International pressure groups

Analysis ECONOMIC
Economic Stability and Growth Interest Rates, Exchange Rates Current Market Situation Long term Economic Prospects Overseas economies and trends Customer/end-user drivers Interest and exchange rates International trade/monetary issues

SOCIAL
Effects on Health Career Attitudes Safety and Security Customer Acceptance and Usage. Media views Brand, company, technology image Major events and influences Advertising and publicity

PEST

TECHNOLOGICAL

Research and Development Costs Automation, Installation and Maintenance Rate of Technological Change and Innovation. Associated/dependent technologies Replacement technology/solutions Information and communications Technology access, licensing, patents Intellectual property issues Global communications

SWOT Analysis

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STRENGTHS
Creation of a technological revolution in Mobile telephony markets. One time set- up costs. Ease of installation and maintenance. Product can be highly differentiated as compared to others. Strongand experienced management team, from a diverse set of cultures and backgrounds.

WEAKNESSES
New technology New and untapped market T echnology may get outdated sooner than we expect. Acquisition of a new patent

OPP ORT UNIT S IE

Large target market size.

SWOT
T AS HRE T
Acceptance of the product and technology. Fast expansion that may lead to quick burnouts and faster product burnout. High set-up and maintenance costs. Annual licensing fees costs Governmental Rules and Regulations that may affect the marketability

Option of developing the market starting from a nascent stage. Gainingacceptance and educating customers about the new product.

Pest analysis seems like a definition of PEST .. like what should be included in the pest. Please include factors that are relevant to our product. In SWOT analysis, we do not have high setup and maintenance cost.. this is our strength.

Marketing Strategy Market Segmentation

The markets that we are looking to focus on are places where the ringing of mobile phones is considered to be disruptive to the audience and at the present time they do not have a successful system to stop the ringing of mobile phones. In addition, Consequently, there is a strong potential market for our product Hushed:

Universities, colleges and secondary schools. Cinemas. There are about 775 cinemas in the United Kingdom with a total of 3,607 screen overall. The number of cinemas has been growing in the last decade by 50% and is expected to grow further. In 2007, 3.5 million people visited the cinema weekly (Pearl and Dean, 2007). Libraries (including both public and academic libraries) There are more than 4,500 public libraries in the UK and about 6 national libraries. (LISU, 2007)

However, in the first stage of hushed (1st and 2nd year) we will focus on universities primarily, therefore universities will be our primary target market for 1st and 2nd year. After the second year, we will expand the offer of hushed to cinemas and libraries. However it is important to

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mention that some libraries may be included at the first stage for the reason that some universities will require the installation of hushed within their own libraries.

Targeting the Market

The collection of secondary data was through reliable internet sources such as: directgov.ac.uk, the Higher Education Funding Council for England, etc A secondary research was made in order to segment the market, and subsequently to define our target market. The target market for the first year will be all the universities of the UK. For the reason that the universities are the most well funded institutions. We used both a psychographic and geographic segmentation. Psychographic segmentation helps us to identify the personal characteristics of the people (through the questionnaire) while geographic segmentation help us to divide our market into different geographic units within the UK. The above should be moved to under segmentation... the above talks about the factors of segmentation rather than what are we targeting. We should not repeat things in every section. Talk about segmentation factors above and then who we targeting should be under targeting the market The following chart shows the steps that we followed in the market segmentation, targeting and positioning

POSITIONING Disruption free Environment

SEGMENTATION Cinemas Educational institutions Workplaces Libraries

VALUE FOR TARGETED CUSTOMERS -High quality product -Excellence customer service

DIFFERENTIATION No mobile phone interruptions without blocking the signal

TARGETING

Universities (1st & 2nd year) Cinemas and Libraries (f rom year 3rd to 5th)

(Kotler, et al, 2008 Steps in Market Segmentation, targeting and positioning)

Brand Strategy (brand key)

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Brand S

Marketing Mix

Nowadays, every using mobile phon they forget to switc phones on silent a restricted places. mobile phone rin the lectures or me

Market positioning

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Three Levels of Products for Hushed

INSTALLATION Outsourced Responsible for Installation Maintenance

AFTER SALE SERVICE BRAND NAME Hushed FEATURES Technology using base stations Annual license fee 1000

COREBENEFIT: S ilence the m obile phones without blocking signals

DELIVERY AND CREDIT No credit Delivery within 10 working days

QUALITY High quality base stations and software design

STYLING AND PACKAGING Modern , small base station .

WARRANTY
12m onths

(Kotler, et al, 2008, Three Levels of Products)

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Promotional Strategy The companys objective is to deliver 20% penetration in the Universities in the first year and 50% in the second year. Simultaneously, the company will be spending on other target markets of libraries, cinemas, and workplaces from year 2.

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Public Relations: Launch event- Presentations, Drinks, Dinner and lots of chatting away..all about the Hushed revolution!!! Word of mouth: Our greatest promotional toolour existing customers. We want our customers to be awed and impressed by Hushed. We want them to fall in love with how Hushed can make life easier for them. And we will make sure that we do everything that we can, to make our prospective customers and everyone else fall in love with the Hushed technology. Point of Sale: The company will have customer service lines available from 9am to 5pm (Monday to Friday) for both our existing as well as new customers. Set up an office for the business at the start-up stage and expand the same by using franchising as a medium of sale and setting up of the technology.

Mega Pro three cou potential 15 secon

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Corporate Logo

H
Operational Overview. The Hushed technology will operate through the use of a base station. This Base station will transmit a signal to mobile phones so that the silent mode is automatically activated upon entering a hushed zone. The base station These base stations will be positioned in the halls and rooms that require a hushed zone to be created. There are two types of varying base stations depending on the size of the zone to be covered. The base stations will be linked to a central control point for example the computer centre (ISS at Leeds University) where they can be switched on or off for 3 main reasons: 1. Safety Reasons: Should the base station begin to interfere with any other equipment or not function safely it can be switched off and the central controller made aware of any faults. 2. It allows control so that if the room is not required to be Hushed it can be turn off and the room normal so that phones can ring. 3. In order to promote energy saving the base stations will be controlled so that they do not consume excess energy. This will ensure that Hushed as a company keeps an environmentally friendly approach and keeps costs down for our customers.

Using so that in all the sentences..

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From a design point of view it does not take a long time to materialize this technology as the basic hardware components are already available and small changes to the software are all that will be required and this is the greatest change factor. (very long sentence, and what does it say) In terms of producing units for sale and installation it will be relatively inexpensive to produce and install as compared to other methods of producing the required technology.

Operational Policy 1) Operating time scale of hushed technology Based on our research we can conclude that the production will be relatively quick, taking a week to produce a batch of 100 units. (why relatively quick, need positive writing and specific, like it will take 5 working days to produce 100 base stations). It will take 2 days to instal 40 locations in one University. Once we have a the required number of base stations we can then assum it will take approximately 2 days to install in 1 university (depending on the size of the university). We will give the responsibilities for control the system to the facilities which are using this technology. In the case of universities, they might have their own control centre such as ISS of Leeds University so that they can control this system directly at any time. For this reason, they may well be able to deal with some emergent situations such as fire and collapses of the building. It could be flexible. 2) Service Segmentation As previously mentioned There are two types of base stations based on the room size to be covered. The signal coverage should be measured and the appropriate base station installed. The distances covered are: Base station 1 : suitable for rooms of size 2500 sq ft 20

Base station 2 : suitable for rooms of size 1500 sq ft For rooms larger than 2500sq ft we can use multiple base stations. Role of Operations in the Company and Approach to Facilities and Equipment Management. Operations are very important and the following key factors of the operational launch have been identified that will enable Hushed to function efficiently and cost effectively. Production of Base station (included with Hushed technology will be outsourced to third party Contact Base station suppliers to arrange production and outsourcing contracts for the desired hardware and software products. In addition, installation and maintenance Arrange a contract with the installation and maintenance teams which will be outsourced also. This will enable us to cover the whole of the UK effectively without driving costs higher and is in line with our HR strategy outlined previously. Form alliances/joint ventures with the base station companies and mobile phone manufacturers to enable us to further develop our technology from year 3 onwards. Our intension as outlined in our strategy is to look at forming alliances to bring innovation to the market at a faster pace. We intend to make the mobile phone silencing much more interactive, for example being able to pre select the profile of the phone or setting up warning of hushed zone entrance on the phone.

First of all the engineers would check the frequency range of the base station in the locations where the technology will be installed. According to the results of the test, the base stations would will be located in the lecture room so that everyone is equal distance from the base station. By placing the base station centrally, as seen below left, it will we believe that we can most efficiently cover in the room. For rooms larger than 2500 sq ft we will require more than one base station, as shown in the picture below (right).

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Rooms of size 1500 sq ft & 2500 sq ft

Rooms of size more than 2500 sq ft

We should include the picture of seminar rooms as the YBLT is bigger than seminar rooms. The above two rooms YBLT and G131 are equal size. For the first year, we will work to install base stations in required teaching areas of the Universities that are receiving the NMN1 product. Currently we do not have our own R&D centre due to the fact that we work with base station suppliers to develop the technology and we have outsourced the various parts of the production function. We are what we are because of our R&D.. we already have an R&D. The company has developed its software technology that transmits signals to turn the mobile phone turn into silent mode. Every year the company will invest considerable amount into its R&D depending on the type and complexity of the required new technology for new innovation. In the third year, the company will consider creating an in house R&D centre depending on the type and complexity of the required new technology and the expansion of the business. 4) Customers are provided with this technology (fitted and operational) so that they can switch on the base stations to silence the mobile phones entering the hushed area automatically to silent. People entering the hushed area will be warned by signs (for example outside the lecture theatre entrance) informing them they will not have a ring tone within the designated area. Please include what is our transformed and transforming resources The company will manage order taking through telephone and internet. The sales team will forward the sales order to the outsourced third party through networked / linked system that will transmit order to the production site (third party). The selected third party is geared with the CRM system to cater complain and routine maintenance. 22

The company has also developed a website for product information, online orders and customer service in addition to telephone services. In summary, Hushed will not require any manufacturing or installation equipment as the outsourcing firms will cover this as part of the production contract. The main equipment that will be required will be an internet site that contains testimonials and recommendations with full product and service details. There will be also an order taking system and telephone, internet and fax subscriptions which are covered in the cost assumptions and have been taken into account. Two computers have also been included to help the management team manage the business and maintain ongoing strategic relationship with suppliers and installers. Order taking? Customer services ? Business location The head office is based in Leeds. As the The business is primarily based on outsourcing, therefore, and no operations will be taken at the business location. The location will have its core management team that will be responsible for marketing, sales, finances and monitoring of third party. The company will have two different outsourced third parties, one for production and the other for installation and maintenance. Therefore, the company will be cost effective in terms of warehousing, operations costs. need to be taken into account, due to the fact that the suppliers give all parts direct to the installers, the main business premises and in turn the location are to be set in Leeds. The head office will be purely an operation and a management centre and will be one of the principles homes. Leeds has been chosen as the location due to its ease of access (for both main motorway networks the M1 and M62 and two hours on the central line to London) and as it is a central location in the North of England, Leeds has a strong reputation as an emerging business area and it is a significantly cheaper operating centre than a London based operating centre. Location has nothing to do with operations.

23

Sourcing Strategy Due to the large nature of the outsourcing of production Hushed is not required to directly source any materials. Instead we consider the role of our outsourcing agents and the strategy and overview of an approach to outsourcing strategy below What is large nature of the outsourcing Outsourcing Strategy Hushed has taken the decision to outsource all production and also installation in order to keep costs low and flexibility high (as we can alter the number of staff required according to demand without commitment to employment). We have nothing to do with staff requirement.. its outsourced agency headach In order to maintain reliable supplies it was decided that the outsourcing contracts would be given to a minimum of two companies (for production and installation) as this would ensure a lower level of dependence on the outsourced suppliers and installers. This would also give Hushed a greater level of control as the suppliers will be aware that their contract may be moved or altered. Another benefit of having more than one outsourced company contracted is that the companies must have competitive pricing as rivals will be eager to increase there percentage of the contract. On the other hand it is difficult to share new technology because of the security between suppliers.

24

Suppliers
Base station Suppliers Suppliers for Installation The operation (Hushed)

Customers
Universities Cinemas Public Library Physical distribution management

Purchasing and supply management

Materials management

Inventory management procedures As there is not any physical stock being dealt with by Hushed there is no need to have inventory management procedures. This has been covered by the outsourced suppliers with the set costs already included.

Technological Process Overview

Figure 1. Registration

The base station will signal to any mobile phone within the specified zone. In the case of universities as you walk into the lecture theatre the phone will receive the signal to switch to silent and will do so immediately. The detailed process in outlined in Figure 1 above.

Expected Product Cost

25

- Base station (installing) According to the room size, two types of base station which are rooms of size 1500 sq ft and 1500 sq ft are installed. The purchase price and installation cost of the base station for the room of size 2500sq ft are 355 and 80 while the purchase price and installation cost of the base station for the room of size 1500sq ft are 285 and 64. Moreover we charge consumers 500 and 400 for providing a base station and 100 and 80 for installation for rooms of size 2500 sq ft and 1500 sq ft respectively. 25 Universities x 40 Rooms = 1000 Rooms (18 rooms of size 2500 sq ft) (22 rooms of size 1500 sq ft)

Base stations()
18 Rooms of size 2500 sq ft 22 Rooms of size 1500 sq ft

Rooms 450 550 1,000

Cost per unit 355 285 640

Installation cost 80 64 144

Total Cost 195,750 191,950 387,700

Price per unit 500 400 900

Installation Income 100 80 180

Total Income 270,000 264,000 534,000

Total

Expected Cost and Income for operation 600,000 500,000

Pounds ()

400,000 300,000 200,000 100,000 0 Total Cost Total Income Room size

18 Room of size 2500 sq ft s 22 Room of size 1500 sq ft s Total

Quality control procedures Although Hushed is not manufacturing the products it intends to sell and has no responsibility for quality control, it was felt prudent to ensure that some procedures with regards to quality control were in place. The primary reasoning for doing this when there is no apparent need is that Hushed will be placing its brand reputation and also company reputation at risk if it does not ensure that the products it sells are of the highest quality (as this is how the brand has been positioned). The strategy to do this is to build a condition into the contract which states that outsourced contractors will be subject to a 10% penalty if a greater than 2% product fault level is observed in the first 12 months (the guarantee period) from the product launch. However If the

26

companies achieve the target quality level, we will provide them with a bonus of 10%.

Supply of products and services The operation resources

Planning and control The activities which reconcile supply and demand

Demand for products and services The operation customers

Planning and Control

Customer service procedures Companies that have the outsourcing contracts are responsible for the maintenance and service of all equipment (under contract). In order to maintain an external (to the contractors) measure of customer satisfaction and adequate performance regular reviews and feedback from customers will be sought. This will be the responsibility of the management group and the results will be fed back to the installers and manufacturers in order to improve the process and performance of all linked companies.

RISK ANALYSIS RISKS FACTORS:

27

OTHERS:

The Porters Five Forces Model

28

Our Risk Management Strategies:

29

Financial Plan Overview

Our financial plan consists of certain assumptions and estimates which are mentioned below: Assumptions: All sales are on a cash basis. All payments to the suppliers and contractors are on cash basis. Each university will have, on average, 22 rooms of under 1500 sq. ft. and 18 rooms in the range of 1500 sq. ft. and 2500 sq. ft.

Expansion Plans and Strategies To cover 20% of the universities in UK in the first year, i.e. 25 out of 123. To capture 85% of the universities by the end of year 2. To enter international markets in year three. In year 3 we are planning to diversify the target base within UK, i.e. apart from universities other institutions like fuel stations and hospitals are to be covered.

Tax & Other Liabilities Corporate tax at 21% per annum rate. National Insurance at 10% per annum of each principals yearly income.

30

References
Campbell, S. W. (2007) Perceptions of Mobile Phone Use in Public Settings: A Cross-Cultural Comparison, International Journal of Communication Vol.1 pp:738-757 Direct gov (2008) Available at: http://www.direct.gov.uk/en/EducationAndLearning/UniversityAndHigherEducation/DecidingW hereToStudy/DG_4017763 Guardian (2007) available at: http://www.guardian.co.uk/technology/blog/2007/sep/14/nowwehave14mobilephonese LISU (2007) Available at: http://www.lboro.ac.uk/departments/dils/lisu/lampost.html Maps (2008) Available at: http://bursarymap.direct.gov.uk/ Mobile Herald (2006), Available at: http://www.mobileherald.com/2006-mobile-phonestatistics-and-projections/ Pearl and Dean (2007) Available at: http://business.pearlanddean.com/faq.html#22 Slack, N. (2007)) Operations Management, 5th edition Pitman Publishing Statistics gov (2008) http://www.statistics.gov.uk/cci/nugget.asp?id=1710 Netkrom, (2007) Available at: http://www.netkrom.com The Resister (2006) Available at: http://www.theregister.co.uk/2006/08/16/cinema_mobile_block_rejected/ UCAS (2007), Available at: http://www.ucas.com/instit/index.html

APPENDICES
APPENDIX 1

This questionnaire was developed by MBA students from the University of Leeds in order to find out your opinion on mobile phone usage in places such as classrooms, libraries, meeting rooms, etc. 1) Gender:

31

Male 2) Age group: Under 15 4) Profession: Student

Female

15-25

26-35

36-50

Over 50

School staff

Lecturer

Other

3) Do you have a mobile phone? Yes No

4) How often do you forget to switch off your mobile phone (or turn it to silent) when you are attending a lecture/tutorial/seminar? Always Most of the time Sometimes Seldom Never

5) How important is it for you that other people switch off (or turn to silent) their mobile phones when you are attending a lecture/tutorial/seminar/ meeting? Extremely important Very important Somewhat important Not very important Not at all important

6) How would you describe when a mobile phone is ringing in the middle of a lecture/tutorial/seminar? Offensive Highly disturbing Disturbing or distracting Does not bother me Neither of them Any other_________________________________________________________ 7) If there were a method of putting a mobile phone on silent automatically during the lecture/tutorial/seminar/meetings would you support the acquisition of such technology in your institution? Definitely Yes Not sure No

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APPENDIX II Patents

There is no same patent but there are some similar patents which are: 1)Method and apparatus for controlling a quiet zone for wireless units ( Inventors : William Westfield (US), Assignee : Cisco Technology, Inc.) ( Application Number / date : 20050126838 / 2005.05.11 ) In an IP-based cellular wireless communication system, systems and methods for spatially controlling cellular phone usage are provided. Entry of a cellular phone device into an area of restricted phone access (quiet zone) is detected and an IP message identifying the phone sent to a central facility. In one embodiment, an IP message is sent to the phone causing it to change behavior, for example turning off the volume on the ringer. Alternatively, the central facility can process an incoming call for a phone that is determined to be in a quiet zone to reduce intrusion in the quiet zone; for example, it can send the call to a phone mailbox or give the caller a busy signal. 2) Automatic working mode switching system for mobile stations ( Inventors : Terasaka, Takao (Japan), Assignee : Yugen Kaisha OFA Design Office) ( Application Number / date : 2000129733 / 2000.12.20 ) An automatic mode switching system for mobile stations, using weak radio waves (5,8) in changing the ringing call-arrival informing mode to the silent call-arrival informing mode, or in putting the mobile station in a selected condition of "transmission-and-reception ceased", "transmission ceased", "phone-conversation inhibited", "electric power off" or such like in the phoneconversation inhibited place. It includes first (7) and second (4) control signal generators positioned on the inside and outside of the entrance (3) of the closed space (1). Each control signal generator has at least inputting means for inputting control conditions according to which the mobile station is permitted to work, memory means for storing the contents of control condition; and transmitting means for transmitting the control signals representing the control condition. When getting in the closed space the mobile station (6) receives via its antenna the radio wave (5) carrying the control signals from the first control signal generator (4) to make the mobile station to switch its working mode from the ringing to silent mode, thereby informing the call arrival by means of medium other than sound. When getting out of the closed space (1) the mobile station receives via its antenna the radio wave carrying the control signals from the second control signal generator to make the mobile station to switch its working mode from the silent to ringing mode, thereby informing the call arrival by means of sound.

33

3) Method for controlling a ring tone in mobile communication terminal and apparatus thereof ( Inventors : Jesam, Choi (S.Korea), Assignee : Pantech mobile company.) ( Application Number / date : 10-2004-0099270 / 2004.11.30 ) This invention is related to the bell sound control of mobile phone based on the amount of noise and movement around the places. In the mobile phone, there is a microchip which can measure the degree of noise and movement so that the mode of the mobile phone could be changed depending on the environment of the area. For example, if there is a big noise, the ring tone is going to get bigger or be changed to vibration mode in case of more than the standard. In contrast, if there is a small noise, it is going to be switched to silent mode. 4) Method for automatically converting the mode of portable terminal according to a schedule and position information ( Inventors : Jungbae, Park (S.Korea), Assignee : VK mobile company.) ( Application Number / date : 10-2004-0082216 / 2004.10.14 ) This invention is related to converting the mode of mobile phone automatically according to a schedule and position information. Users have to make their schedule everyday so that the mode of mobile phone can automatically be switched by the schedule. For instance, when I am expecting to go a library and cinema, I do not have to worry about changing the mode every time if I already set the mode in my mobile phone in advance. In addition, when mobile phones are aware of the places which are like quiet zone such as libraries, restaurants and cinemas through position information system, the mode is automatically changed to silent or vibratory mode.

34

ABID R. JAFFRI
Nationality: Pakistani abid_jaffri@yahoo.com +44 7544626548 EMPLOYMENT HISTORY Brand Manager, Unilever Foods June 2003- August 2008

Built the brand selection (ice-cream) as the bond for the family. Delivering on measurable marketing & communication objectives. Regional co-ordination with a global team to develop communication campaigns and to deliver fantastic range of innovations Work in liaison with the Trade Category managers to deliver on launches and create successful trade promotions Deliver the objectives with co-ordination with internal & external agencies; Supply-chain, media planners, and creative agencies to deliver on timelines. Management of the above task and achieving brand objectives within the brand development budget

35

EDUCATION
(MBA full-time), Leeds University Business School, UK September 08 09

B. Sc, Operations Management, Northern Illinois University (NIU), Illinois, USA August 00 02 GPA 3.50/4.00, Deans list, Spring 2001, Fall 2002 Scholarship Recipient at Northern Illinois University: Selection based on academic excellence ACHIVEMENTS On target in achieving 2008 target 13.8 million litres, 40% market growth. Increased penetration in non-citadels to deliver 38% growth from new inductions Successfully launched a regional innovation Ice-cream with Cake called Cake Creations. The innovation contributed 32% growth towards the brand. 40% reduction in inventory in personal products category for the period June04 05. Played a key role to achieve inventory level target of 10% of NPS at 8.4%. Implemented vendor managed inventory (VMI) to maintain minimum inventory with high flexibility of stocks call offs. Value award, Living an Enterprise Culture for execution of Lifebuoy shampoo launch before committed dates to beat competition. SKILLS Communication Skills Management & Negotiation Skills Team Player

Jonghoon Park
Nationality: South Korean edgar0725@hotmail.com 07904 980 100

EMPLOYMENT HISTORY

36

Assistant Manager July 2002-January 2007 SSANGYONG MOTOR COMPANY (http://www.smotor.com) Department Assigned : Management Strategy Team In charge of the feasibility study for the new car and the Mid/Longterm Business Plan with analysis based on stability, profitability and liquidity. Department Assigned : Cost Innovation Team Responsible for the analysis of profitability and proposed material cost and a leader of CFT(Cross Functional Team) to reduce the cost of parts.

EDUCATION
(MBA full-time), Leeds University Business School, UK September 08 09 B.A in Business Administration, Dankook University, South Korea.

AWARDS ACHIEVED voluntary work at an orphanage, asylum and welfare centre for the disabled (2002-2007) awarded the third prize in a virtual stock investment contest. (2004) won the first prize with a DVD industry presentation from a business competition. (2005) achieved competitive prices for newly released cars by a material cost reduction strategy at the product development stage (20042007)

SKILLS Computer skills Team Player Proactive Good at doing sports

37

1KAVITHA IYER
Nationality: Indian bn08kaki@leeds.ac.uk 07593212160 EMPLOYMENT HISTORY Head of Operations Trident Trading Corporation, Mumbai (Family business) Dec 2005-August 2008

Led 20+ members of the Mumbai division through a restructuring and change management initiative and streamlined operations, resulting in reduction of operating costs by 19% Managed the development of a new vendor base that increased vendor cells to 1230 from the initial 763 cells. Created a new division to handle customer queries. Led the 6-member team to institute a new system that identified and fixed customer issues before customer business is impacted. Developed and marketed, a trend-setting, re-usable write-protect inventory bin labels for the first time in the market, that increased business segments profit by 227% in a year. Coordinated a team of 10 executives to analyze quality issues, identified and fixed the root cause and generated 17 additional orders from new and demanding customers within four months. Obtained export license for the company and managed foreign exchange transactions in India.

EDUCATION
Masters in Business Administration September-2008 Leeds University Business School Master of Commerce (M.Com) - Major: Accounting May-2006 Mumbai University, Mumbai, India

Bachelors in Management Studies (B.M.S.) Double Major: Finance, International Finance May-2002 S.I.E.S College of Arts, Science and Commerce, Mumbai University, Mumbai, India GPA: High First class with Distinction (Obtained 5th rank in college)

38

ACHIVEMENTS GPA: High First class with Distinction (Obtained 5th rank in college)
Winner of the Deans award for Highest Grade in Marketing and Management Of Cooperatives at The South Indian Education Societys College of Arts, Science and Commerce, Mumbai University. Youngest student in the graduating class of 2002.

SKILLS
Highly artistic and proactive Leadership experience

SAMBAMURTHY MADETI
Nationality: Indian +44 7595998470
sambamurthymgv@yahoo.co.uk

EMPLOYMENT HISTORY Deputy Manager Retail Liabilities

HDFC BANK Ltd, Baroda, December 2007 Till Date . Majorly responsible for building and managing a team Sell saving and current accounts through the team members. Recruit, Train and Retain the team of executives. Co-ordinate with the Sales team and Branch / Operations team to ensure timely dispatch of duly filled up application forms sourced by the sales team. Channel Manager Agency ICICI Lombard General Insurance Company Ltd, Baroda, January 2007 December 2007 Exclusively responsible for creating new channels and agents through which business can be developed and to service existing channels and agents to retain the existing business. Major responsibilities included: Identifying the potential channels / agents who can associate themselves for a long term mutually profitable business. Approaching the potential channels / agents strategically and convincing them to associate themselves with the company. Training the activated channels and agents regarding various products of General Insurance and the underwriting guidelines related to each product. Providing class room activities for the channels and agents to help them get

39

IRDA licenses. Co-ordinate with the channels / agents and back office & Operations team to ensure timely dispatch of policies and cover notes.

EDUCATION
BACHELORS OF SCIENCE (IT), 2003 Manipal Academy of Higher Education, Manipal (Long Distance Course) BACHELORS OF SCIENCE (STATISTICS), 2002 M.S.University of Baroda, Baroda SKILLS Acknowledged team player Consistent performer Communication and interpersonal traits

Zein I Chaudhry
Nationality: British +44 7862287786 zic1@hotmail.co.uk

EMPLOYMENT HISTORY Mortgage Manager

HSBC Bank June 2007 October 2008 Winner of Yorkshire region Mortgage Manager Competition (From a team of over 30) (2007) Currently hold UK record for single week commission for a Mortgage Manager (2008) Ranked in the top 10 managers in the UK (from a team of over 250) for Mortgage Manager Competition. (2007). Shine Mortgage Manager Award (2007) In this regulated managerial role I was responsible for meeting customers mortgage and related protection needs, including Life products. This included cross sales of home insurance, referrals for Pensions, and Income Protection products At my last annual review I was assessed as being at level 2 (behavioral and performance level above that expected by the company) on a 1-5 rating system. The role also consisted of managing a team of 4 lead generators and ensuring their performance was above target.

40

EDUCATION University of Leeds (UK) 10/2008 09/2009 Master of Business Administration, MBA.
University of Leicester (UK) 09/2002 07/2005 Ba. Management (Hons) 2.1(Ranked 12th in the UK by the Independent 2008) Certificate in Mortgage Advice and Practice (CeMAP) (2008) Certificate for Financial Advisors CeFA 1, CeFA 2 and CeFA 3 (2008) Competent Advisor Status (CAS) HSBC (2008) Queen Elizabeth Grammar School 09/1997 07/2002

ACHIVEMENTS
Duke Of Edinburghs Award Silver and Gold Level (1998-2002) UK Universities 5 A-side championship winner (2005)

SKILLS:

Midlands Universities 5 A-side championship runner up (2004)

Persistent, flexible and innovative approach to the mutually beneficial achievement of business plans with different teams and functions. Highly articulate, confident and persuasive team-builder, able to motivate and communicate to achieve exceptional business performance.

Tania Andrade
Nationality: Mexican 0780 9777 668 tanraq@hotmail.com EMPLOYMENT HISTORY
Strategic Accounts Sales Representative Retail sales strategies across the Mexican market with the ultimate aim of increasing the business performance. Overachievement of sales targets every month. Successfully developing sales forecast and analysing of product bookings. Playing a pivotal role in the development of marketing strategies of Nike apparel products within department stores (with more than 100 stores all-together) Working in close conjunction with Product Line Managers of the football division to launch a new collection of football garments for the local-Mexican football teams. Providing management and support to three trainee sales representatives, motivating and helping to drive them towards the achievement of sales targets. Development of business reviews and business proposals. Nike June 2006-March 2007

National Account Executive Calvin Klein Underwear Dec 2003 May 2006

41

Actively involved in developing the openings of Calvin Kleins boutiques and outlets. Traveling extensively to New York to meet the new Calvin Klein fashion tendencies (fashion weeks). Coordinating the organisation of catwalks of Calvin Klein Underwear products. Working in close conjunction with key client representatives to develop marketing strategies. Expanding new markets to enable improvements in sales and brand positioning.

EDUCATION
Master of Business Administration, MBA. University of Leeds (UK) 10/2008 09/2009 M.A. in Leadership and Management Sep 2007- July 2008 York St. John University B.A. in International Trade Aug 1998 - Dec 2002 (Full time) Instituto Tecnologico y de Estudios Superiores de Monterrey (ITESM)

SKILLS
Communication skills Negotiation skills Problem-solving skills

Reliable team player

Sales Forecast: We have assumed that we will not make any sale during the first month of Year 1. By the end of the first year, we hope to make a sale of a total of the following units. Base Stations: 2500 Sq. Feet 1500 Sq. Feet Licence Fees: 2500 Sq. Feet 1500 Sq. Feet Sales (Units) 550 450 550 450 Sales (Revenues) 225000 45000 220000 55000

Our forecast figures are a representation of the European Markets and the demand that we hope to create from this market. Our yearly forecast also gives us a brief idea about the sales that we are targeting to achieve next year.

42

Year Ending mm/dd Base Station Sale price @ unit Cat 1 TOTAL

Year 2

950 500.00 4,75,000

Licence Fees Sale price @ unit Licence Fees

595.00 1,000 5,95,000

YEARLY SALES FORECAST

Base Station Sale price @ unit Cat 1 TOTAL

1,200.00 400 4,80,000

Licence Fees Sale price @ unit Licence Fees TOTAL

452 1,000 452000 20,02,000.00

43

Start Up Start Up Start up Expenses Patenting(Product & Logo) Stationery & Brochures Insurance Marketing Other Total 1000 500 350 15000 500 17350

Start up Assets Furniture Property deposit Deposit with Suppliers IT Cash Total 500 10000 25000 1000 30000 66500

Total Start Up

83850

44

Key Financial Indicators

It is evident from the above diagram that as the sales figures rise, there is a significant rise in costs too. At the same time significant growth in gross margins can also be witnessed without much rise in operating expenses. So it is profitable to raise the sales. Assumption: Prices will remain same in spite of competition.

Break Even Analysis

45

The following table summarises the break-even analysis. Break-even Analysis Average Per-Unit Revenue Average Per-Unit Revenues from Installations and license fees Average Per-Unit Variable Cost Estimated Monthly Fixed Cost Break-even Break-even = Fixed Cost / (Unit price Variable unit cost) So Hushed needs to sell 40 base stations a month to break-even. In other words the break-even level of sales is 25132. Projected Cash Flows Since cash flows are the most critical part of any business, here is the graphical representation of the monthly cash inflows and outflows. Detailed cash flows are attached in the appendix. 445 189 389.3 9700 39.6

46

Projected Profit and Loss The detailed Profit and Loss accounts are provided in the appendix. The graphical representations are given below: Profit Yearly

Gross Margin Yearly

47

Gross Margin Monthly

48

Appendix Cash flows Month 1 Initial Capital Start-Up Expenses & Assets Revenues Cost of Sales Overheads Salaries Closing Balance Month 4 Opening Balance Revenues Cost of Sales Overheads Salaries Month 2 1000 Opening 00 Balance 8385 0 0 Revenues 0 Cost of Sales 3700 Overheads 6000 Salaries Closing 6450 Balance Month 5 Opening 6754 Balance 2536 0 Revenues 1550 8 Cost of Sales 3700 Overheads 6000 Salaries 2536 0 1550 8 3700 6000 Revenues Cost of Sales Overheads Salaries 25360 15508 3700 6000 6754 Month 3 Opening 6450 Balance 6602

Closing 6602 Balance Month 6 Opening 6906 Balance 5072 0 Revenues 3101 6 Cost of Sales 3700 Overheads 6000 Salaries

16910 50720 31016 3700 6000 49

Closing Balance Month 7 Opening Balance Revenues Cost of Sales Overheads Salaries Closing Balance Month 10 Opening Balance Revenues Cost of Sales Overheads Salaries Closing Balance

Closing 6906 Balance Month 8 2691 4 5072 0 3101 6 3700 6000 Opening Balance Revenues Cost of Sales Overheads Salaries

1691 Closing 0 Balance Month 9 3691 8 5072 0 3101 6 3700 6000 Opening Balance Revenues Cost of Sales Overheads Salaries

26914

4692 2 7608 0 4652 4 3700 6000 6677 8

3691 Closing 8 Balance Month 11 6677 8 7608 0 4652 4 3700 6000 Opening Balance Revenues Cost of Sales Overheads Salaries

4692 Closing 2 Balance Month 12 8663 4 1014 40 6203 2 3700 6000 Opening Balance Revenues Cost of Sales Overheads Salaries

1163 42 1014 40 6203 2 3700 6000 1460 50

8663 Closing 4 Balance

1163 Closing 42 Balance

Profit and Loss Accounts Year 1 6340 00 Cost of Sales 3877 00 Year 2 20020 00 13211 00

Sales Less:

Gross Profit Gross

24630 0 38.848

680900 34.010 50

Margin % Less: Operating expenses Deposit with Suppliers Rent Deposit Rent NI Telephone, Fax & Internet Transport Depreciation of Furniture Depreciation of IT Insurance Advertising & Marketing Salaries Printing & Stationery Patents Tax

58

99

2500 0 1000 0 1440 0 7200 3600 6000 100 200 350 3300 0 7200 0 500 1000 5172 3 22507 3

20000 40800 10800 7200 15000 100 200 350 49500 10800 0 1000 14298 9 395939 284961

Net Profit

21227

Projected Balance Sheet Assets Current Assets 3000 0 3787 7 Liabilities Current Liabilities Retained Earnings Cash Accounts Receivables Non 51

2122 7

Current Assets Furniture Property deposit Deposit with Suppliers IT Patents Total Assets 400 1000 0 2500 0 Capital 800 Initial Capital 1000 1050 Total 77 Liabilities 8385 0

1050 77

52

53

London South East South West West Midlands North West North East Yorkshire & Humber East Midlands East of England Wales Scotland N. Ireland Total

12 14 8 9 11 5 9 8 7 12 14 14 123

29 2 5 3 4

34 4 33 37 43 16

3 1 2 1 43 8 101

27 19 27 1 20 18 279 Further Education Institutions 503

Number of students 388,740 232,910 155,660 190,700 265,445 111,925 206,130 158,850 126,445 N/A 271,865 48,820 2,157,490 Number of students 388,740 232,910 155,660 190,700 265,445 111,925 206,130 158,850 126,445 N/A 271,865 48,820

Further Education Institutions 29 2 5 3 4 34 4 33 37 43 16 3 1 2 1 43 8 101 27 19 27 1 20 18 279

Universities

Colleges

Universities

Colleges

London South East South West West Midlands North West North East Yorkshire & Humber East Midlands East of England Wales Scotland N. Ireland Total

12 14 8 9 11 5 9 8 7 12 14 14 123

TOTAL

Region

TOTAL

Region

54

503

2,157,490