Business Plan

Student Assistance Team

Written By
Dan Tang Juliette Guillou Khawaja M. Jawad Xiao Zong Junyao Wang Jiqing Song

IEI Group 5

Tutor: Carole Couper

28 October 2013

MSc in International Business and Entrepreneurship Adam Smith Business School University of Glasgow

Table of Contents
Executive Summary .................................................................................................................... 3
1. Description of the Venture ............................................................................................................... 3 2. The Management Team.................................................................................................................... 4

The Business Model ..................................................................................................................... 7 Competitor, Industry, and Consumer Analysis ..................................................................... 9
1. Industry Analysis ............................................................................................................................... 9 2. Porters Five Forces ....................................................................................................................... 10 3. SWOT Analysis ............................................................................................................................... 11 4. Competitive Analysis ..................................................................................................................... 12 5. Target Markets and Consumer Profile...................................................................................... 14

Marketing Strategy .................................................................................................................. 15

1. Build a community ......................................................................................................................... 15 2. Company and Service Presentation ........................................................................................... 15 3. Pricing Strategy .............................................................................................................................. 17 4. Partnership with Other Communities ....................................................................................... 18 5. Advertising and Promotion .......................................................................................................... 20 5. Web Strategy ................................................................................................................................... 21

Finance ........................................................................................................................................ 22
1. Initial investment ............................................................................................................................ 22 2. Start-up Costs.................................................................................................................................. 22 3. Sales Forecast .................................................................................................................................. 23 4. Expected sales.................................................................................................................................. 24 5. Income statement............................................................................................................................ 27

Organization .............................................................................................................................. 28
Organization Structure ..................................................................................................................... 28

Internationalization .................................................................................................................. 29 Conclusion .................................................................................................................................. 32 References ................................................................................................................................... 33 Exhibits ....................................................................................................................................... 34

1. Essential and Serenity Packages ............................................................................................. 34 2. Sample of Web page ....................................................................................................................... 38 3. Operations Management .............................................................................................................. 38 Strategic Value Chain.................................................................................................................................... 38
1. Reception .................................................................................................................................................................... 39 2. Student Service ......................................................................................................................................................... 42 3. Transportation and Account Receivables......................................................................................................... 44 4. Information Systems ............................................................................................................................................... 45 5. Finance and Administration ................................................................................................................................. 47

4. Questionnaire Survey .................................................................................................................... 48 5. Results of the Survey ..................................................................................................................... 51

Executive Summary
1. Description of the Venture
Problem International students have been facing a lot of problems when they just arrived Glasgow. For instance, they dont know how to find an appropriate place to live after they leave the airport; they start their trip without necessary things, especially those who come with just some clothes; moreover, they become very unfamiliar with new learning styles as it is difficult for them to acquire a totally new learning style in a short time, etc. Obviously, the problems are diverse. Being new arrivals, international students fail to discover where they can get help from and most of the student services that provided by the university leave much to be desired.

Our solution SAT (Student Assistance Team) born to help students with problems handling. It offers students with a wide range of services to look after them from the day they arrive until the day they leave. Students will be able to place order through telephone call, e-mail, or via web. They can also request membership treatment by register online. Besides, SAT will

be organizing different events for its members during their stay, it is aimed to provide more opportunities for them to meet people alike and to create greater social network for
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the coming year. By joining these events, they will be able to discover the city and the Scottish culture through tours, trips, Highland dancing lessons, and tasting activities.

2. The Management Team

Tang Dan-Chief Executive officer Miss Tang Dan receives a Bachelor degree of Business Administration from Khon Kaen University International College in Thailand. She has a solid theoretical foundation on business operation and experience of running small business in Asia Sub-region. She came up with student service business idea at the first day when she just arrived Glasgow. Currently, she is doing the Master of International Business and Entrepreneurship at the Adam Smith Business School of Glasgow University. She is excited about the opportunity of doing business within the European countries.

Juliette Guilou-Customer Service Department Director Miss Juliette Guillou has been majored in Entrepreneurship within her Bachelor years in France. With her background in business development, she knows what it takes to successfully market and succeed in todays start-ups. Aware of the importance of understanding customers needs, she has planned the companys service packages. Juliette had some experience about how to build and conduct a business, so she is the person in charge of negotiate with SATs partners such as universities, banks, estate agencies and public transportation companies etc. There is no doubt that her experience will enable her to manage the Customer Service Department with

excellence.

Khawaja M. Jawad Marketing Director Mr Jawad Khawaja has done Bachelors in business administration with major in Marketing from Institute of Management and sciences B.Z University and has several years of experience in managing two outlets of Subway in Pakistan. He is very experienced in market research, analysis and forecasting. Due to vast experience in extensive promotion he has come up with many creative ideas about how to market our company to more students and make it a brand in the future years. He understands that marketing is not only about promoting the business but also identifying the needs of the consumer before even the consumer knows it and then marketing the service it requires doing so.

William Zhong-Accounting Manager Mr Zhong used to study Accounting during his Bachelor degree. With four years leaning experience, he will be the right person that in charge of the functions involving money in the company. He will work closely with other members of the management team on matters that can affect the financial health of the organization.

Junyao Wang- Reception Department Director Miss Junyao Wang used to study in Germany as an exchange student for almost two years during her Bachelor. Foreign experience made her become a wise problem

solver and a good communicator. She will be the right person for leading the reception team to deal with orders and inquires from customers.

Jiqing Song-Information System Director Miss Jiqing Song got two Bachelor degrees of both English and International Economy and Trade for Undergraduate Study. She has been carrying some work experience on electric transformer online sales overseas. Will the previous experience, she will be the right person that in charge of the information system, works smoothly and provided effective support and assistance for other departments.

The Business Model

Figure 1 Business Model

Customer value position (CVP) SAT provides a series of comprehensive services for students, especially for international students. It fulfills their needs with a group of problem solver. Packages are offered upon customers preference and accomplished by university and bank and estate agencies. Additionally, those who carry a membership with the SAT will also be able to enjoy discounts from other relevant services.

Profit Formula
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SAT as a service-providing company, its primary profit comes from the service packages that offering to its customers; secondary commissions from bank and estate agencies, different kind of events it organizes, and transaction fees that charge for those who buying/selling second and stuff on its official website. Furthermore, it also obtains space for other businesss advertisement and sales promotion and organizes different events for students.

Key Resources Six international students from the University of Glasgow founded the company, with total amount of 50,000 Equity. Each of them carries different business background and fully understands the needs from their customers. Importantly, they have a lot of experience in dealing different problems while studying abroad. SAT will set up partnerships with other communities such as universities, banks, estate agencies, bars, and restaurants.

Key process Students will be able to know Student Assistance Team through the Internet or word of mouth communication. SAT offers two different kinds of service packages online. The person placing the order can either go online or pick up the phone and dial the companys number to order whatever they need. Student s inquiry will be allocated to particular customer service team and then be served by at least one particular service representatives.

Competitor, Industry, and Consumer Analysis

1. Industry Analysis
SAT is in the student service industry. Included in this industry are universities and other kinds of student based organizations. However, SAT keens to keep its unique positioning in the minds of customers by increasing improvement in the standard of its services.

The advance of globalization offers students with multinational choices all around the world. The international students today accept better services far more willingly that was once the case. Continuously growth prevalence of studying overseas generates a large portion of domestic demand.

Most of the existing students service unions leave much to be desired. Apparent example is the International Student Support team of the Glasgow University, which only provides limited advisory service for international students such as immigration and employment.

Glasgow was ranked third for international student satisfaction among universities participating in the International Student Barometer Summer 2012. There are more than 17,000 undergraduates and 6,000 postgraduates from 120 countries worldwide study at the Glasgow University each year. (Source from: University of Glasgow, http://www.gla.ac.uk/about/facts/studentnumbers/)
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 Total number of more than 23,000 undergraduate and postgraduate students means a
large potential market for investments, particularly in student service such as SATs. Demand has kept pace and is escalating with respect to better services.

2. Porters Five Forces

Threat of potential Entrants HIGH Small capital investment paired with a simple business concept allow for development of me-too companies.

Bargaining power of buyers LOW SAT is the first company that creates webpage offering a platform service specifically for students and it is the first company that offers a systematic student based services. This means that the business is very unique with big market potential.

Bargaining power of suppliers VERY LOW The transport service that SAT offers are available from other companies and i s indistinguishable from one another.

Threat of substitutes - HIGH SATs business concept is simple and can easily be copied by any similar service provider.

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The services that SAT offers are available from the university and other agencies.

Competitive rivalry MODERATE TO LOW Unions such as Student Welfare Team threaten SAT during the summer pre-sessional course of Glasgow University. But the second hand stuffs that available on SATs website are students to students. Normally they are not sold in other local second hand shops.

3. SWOT Analysis
Strengths SAT is the first company in Glasgow that offers a coordinate process of student services. International students from the University of Glasgow found the company; they have a lot of experience in international students problem solving. The customer service representatives are multinational; they are very good at communicating with foreign students. The founder of SAT business is Chinese, it helps the company more advantage in dealing with the majority of the Chinese students in Glasgow.

Weaknesses No prior experience in the student service industry.

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Dependence on partnership with other communities. Limited financial resources.

Opportunities Extremely large potential market in Glasgow. Expand partnership to other institutions. Expand to other countries in Asia, e.g. China and Thailandbecause the founders have strong connection there.

Threats The University of Glasgow may increase more staffs for student service. Other agencies see an opportunity to get into the market using already existing relations to compete.

4. Competitive Analysis
The Student Service Centre of the University of Glasgow, a small estate agency that founded by a group of Chinese students, and the local taxi company are the major competitors of SAT Company. According to informal resources based on our personal network, we have interpreted some experience from other international postgraduates. Consumer perceptions of service attributes are diagramed by SATs positioning matrix in Figure 2. Of the aforementioned competitors, attributes of each are outlined below:

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Chinese Student Agency: In operation since 2012 Very expensive Low quality of service performance In cooperate with local private estate agencies

Taxi Company Difficult to book from overseas Poor advertising Known by the local people More expensive than China Takes time to wait

Student Service Centre Too many students to wait for the queue Do not open during the weekend Provide limited number of services Do not help students with finding accommodations

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5. Target Markets and Consumer Profile

Our company is targeting to international students and domestic university students. They will be particularly responsive to our sales force strategy and our more Internet base advertising strategies. Additional characteristics of these consumers are:

They have limited financial resources; They use the Internet often; They are active in social networks They are very price sensitive;
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They are easily influenced by the media, friends, and perceived social leaders.

As regards, in order to overcome the treats from the external environment and convert the weaknesses into strengths, SAT needs to come up with an effective marketing plan and minimize the costs as much as possible. As our target customers are very price sensitive, so the key of the business would be creating brand awareness with image of cost-effective and service friendly.

Marketing Strategy
1. Build a community
Becoming a member of SAT means being part of a community. The company intends to build a strong image and deliver its business concept among the university students: SAT is a community that run by a group of university students, it will always do its best to assisting overseas students to make their time hassle free, learning and fun.

2. Company and Service Presentation

1. Logo

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SAT stands for Student Assistance Team, the contexts aims to clarify that the company is here for providing support and services, which are inclusive and accessible to students. Our logo symbolizes that the business idea is pure and simple because we understand whom we are working for and what kind of problem we are going to deal with.

2. Slogan Your problems, our solution The slogan comes from the consumer insight. We want to express that our company is obligated to provide holistic pastoral care for our clients; we want to work as problem solver, to come up with the best solutions, and too meet the needs of every customer.

3. Services The experiment of being international students, allowed the student service team to understand the difficulties that faced by studying abroad. In order to facilitate their stay, the company comes up with a plenty of feasible services following their needs. There are two packages: the essential pack and the serenity pack. For those who have registered, as a member of SAT, will be able choose any of them (see Figure 2 Essential and Serenity Packages. More detailed description of the services in Exhibit 4).

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3. Pricing Strategy
SAT opt for Cost-plus pricing, which means the basic cost for doing the services plus the amount to represent the desired profit. Minimal profit margins will be allocated to each service to determine the prices set forth by our competitors for similar services. Survey results indicate that the majority of respondents are willing to pay between 200 and 400 for our services. By providing the consumer with the choice of different service package options, the minimum amount will be charged for that service and no guaranty will be required because some services will be made by a professional transportation company. Pricing the service as competitively or more competitively compared other similar service providers is necessary, because our target customers are students that with limited financial source and very price sensitive. We hope that the perception from the beginning will be that SAT is the friendly and cost-effective choice.

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4. Partnership with Other Communities

In order to bring students with the best service and being trusted, SAT realizes the importance of having strong partnerships with other communities.

Banks Opening a bank account is one of the most important steps for international students. But normally it takes at least 6-10 days for the process and international students have to be passive with the appointment arrangement. Thus, the student service team of SAT will be in coordinating with both the Bank of China and the Bank of Scotland. It aims to provide more convenience for international students through a way of being intermediary, to reschedule the timetable more accurately, and make the progress more efficient for both clients.

Estate agency SAT will be working closely with the local estate agencies. The student service team is committed to providing accessibility and reasonable accommodations to all the members, it therefore spent a lot of time for researching agents that are experienced in selling property and have a pool of potential buyer. It aims to make sure students are living in the properties that meet legal and health and safety requirements (i.e. gas safety certificates) and ensure that everyone meets her/his expectation and pay with the best price.

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University of Glasgow The University of Glasgow is one of the most important partners for SAT. SAT strives to provide coordinated services that are student focused and are integrated with those of the wider University community. As for the university student satisfaction plays a vital role in overall ranking of the school annually by guardian and other respected institutions. SAT keens to work in partnership with academic staff, to provide professional, quality, innovative, accessible services to students, and to foster a caring, positive, and more unique campus environment.

In order to do that our team met with Students Representative Council (SRC). They are happy to work together with SAT. SRC will be introducing SAT to the students, and they said if anyone had faced a problem, which falls under SAT service portfolio, SRC would direct them to SAT. In return, there will a special link on SATs official website, which directed to SRC enquiry page.

Clubs/bar/restaurants After a year when SAT has a proper brand image among university students, we will go for the next step, which means to set up partnership with the local food stores and clubs. Our partner will be providing discount to SAT members, and in return, they will receive promotion services on our website. For example, there are two subways near the University of Glasgow, one situated inside the GUU building and another located on the

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byres road. We plan to meet up the franchisee of the stores, to seek opportunities of being partnership with him. By creating this connection, our member students will be getting 10% discount for their consumption within the stores. In return we will provide them weekly deals on our website and also send further discount coupons in our monthly newsletter to our members. For a franchisee it is also an in-store promotion that helps him to increase customer for the store.

5. Advertising and Promotion

Step 1: In our initial phase of the business we dont really need heavy investment for promoting SAT. Our aim is to collaborate with University of Glasgow admission services, as soon as students get unconditional offers, they will be given a unique email address contains their student number. So our first step will be sending them an email to introduce who we are, what we are offering, and why we are helpful, etc. Step 2: By collaborating with the SRC, we will have a huge boost in our promotion that made by word of mouth communication. Normally, university sends emails to students before their arrival, to inform them about what to expect and who to go for help. Additionally, they will attach some links of different estate agencies. So it would be possible for us to ask the university to attach a link of our webpage within the email.

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Step 3: We will obtain a place during the Freshers Week, in order to get in touch with new students. We will organize an information desk to welcome them and provide sign up

form for new member registration. Step 4: The success of our business requires good collaborations with banks and estate agencies. In order to facilitate our plan of going international after 3 years, our marketing team will be working on the development of relationship with multinational banks such as HSBC or Barclays for the future.

5. Web Strategy
SAT web strategy is to make it simple and fun for the students. On homepage there will be dialog box on top right corner for returning customers to login to their personal SAT space. They will be seeing upcoming events calendar order for new service and track the status of their second hand stuff (if they have ordered). (see Exhibits 1 Sample of Web page) For new customers there would be a link to create new ID by entering their personal details such as GUID or Uni email id. They will be able to upload a picture for their membership card. On the left site of our homepage would be links to our services, special packages and also upcoming events. There will be a link to what is SAT where there would be a brief introduction of

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the company, the management team, and brief message from the CEO. On top there would be flash enabled advertisements allowed only of our trade partners like subway and local food stores, clubs and bars. A moving ticker would be installed above the toolbar where bus routes and timings would be shown, also subway routes and important news about upcoming events and our email id for any enquiries.

Finance
1. Initial investment
SATs more important initial investments are the creation of a website and the launching advertisement which is incredibly important to a companys customer outreach and overall success. Startup marketing and branding are integral components of SATs development because they will help the company establishing an individual brand identity. SATs website is the companys showcase: in the eyes of the consumer, a website is a measure of viability and stability. SATs website will allow a good visibility of SATs services and with entry costs reasonable at the entry level, it is the best tool to reach the students.

2. Start-up Costs
The start-up costs for running the business are listed in Figure 4.

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Year Rent Business Insurance Electricity/gas Phone Website maintenance Hosting Domain name Advertising/Promotion Marketing the website online Transport taxi Business trips Salaries + wages Total Cost

1 4,800 1,500 840 600 500 100 10 12,000 2,400 12,450 1,500 60,000 96,700

2 4,800 1,500 840 600 500 100 10 18,000 3,600 24,878 2,000 125,000 181,828

3 4,800 1,500 840 600 500 100 10 24,000 6,000 37,316 3,000 190,000 268,666

Figure 4 Expected Costs

3. Sales Forecast
In 2013 SAT sales will exceed 100,000 by serving more than 400 international students. (see Figure 5)

Year

2013

2014

2015

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Total Orders Total Pounds ()

415 116,460

829 230,915

1,244 345,735

Figure 5 3-Year Base Case Sales Projection

The three years projection is comprised of several calculations that consider the following: A sales forecast has been developed to measure the sales for the first year and yearly for years two and three. The sales forecast has been used to help predict the marginal profit by measuring revenue against expenses. There are approximately 35% of the international students coming to study at the University of Glasgow each year. A conservative forecast has been adopted to increase the chance of meeting sale goals, in which the calculation of Anticipated Demand is only contingent upon a proportion of 5%.

4. Expected sales
First, SATs primary revenues come from service packages. Based on the questionnaire survey, it is indicated that 38% of the customers would prefer the Essential package, whereas 62% of them would chose the Serenity package (see Figure 6-1 Total Expected Sales of Essectial Package and Figure 6-2 Total Expected Sales of Serenity Package).

Figure 6-1 Total Expected Sales of Essectial Package

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Year

Number Price () Total ()

203 200 40,600

406 200 81,200

610 200 122,000

Figure 6-2 Total Expected Sales of Serenity Package Year 1 2 3

Number Price () Total ()

212 250 53,000

423 250 105,750

634 250 158,500

Also, SAT is planning to build some partnerships with banks and estate agencies. Our partners will give us commissions for providing them some new customers. We are expecting a commission of 10 pounds per bank account opened and a commission of 50 pounds per housing contract signed. (see Figure 7-1 Total Bank Commission and Figure 7-2 Total Estate Agency Commission).

Year Number of Bank Accounts

1 415

2 829

3 1,244

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10 pounds per Bank Account () Total Bank Commission ()

10 4,150

10 8,290

10 12,440

Figure 7-1 Total Bank Commission

Year Number of Transaction 50 pounds per Transaction () Total Estate Agency Commission ()

1 332 50 16,600

2 663 50 33,150

3 995 50 49,750

Figure 7-2 Total Estate Agency Commission

Moreover, SATs second-hand stuff platform will bring to the company some revenues. Each transaction done via our platform will be 5% of the total amount of the sale (see Figure 8 Total Transaction Commission of Second-hand Stuff Platform).

Year Number of Transactions Estimated Amount of one Transaction () Charge per Transaction (%) Total

1 124 50 5 310

2 290 50 5 725

3 498 50 5 1,245

Figure 8 Total Transaction Commission of Second-hand Stuff Platform

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Finally, SAT will plan some events (2 per month from September to May) for its members; each event will be at a fixed price of 2 pounds. (see Figure 9 Total Sales of Events)

Year Number of Events Per Year Number of Expected Students Price Per Person () Tickets sales ()

2013 18 50 2 1,800

2014 18 50 2 1,800

2015 18 50 2 1,800

Figure 9 Total Sales of Events

5. Income statement
SAT is expected to gain 19,760 for the first year. Even the calculation is based on very conservative estimations; the result reveals that the future of SAT business is optimistic. (see Figure 10 Income Statement)

Year

2013

2014

2015

Expected Revenues () Costs () Gross Profit ()

116,460 96,700 19,760

230,915 181,828 49,087

345,735 268,666 77,069

Figure 10 Income Statement We understand that it takes time to establish a market presence and generate enough
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revenues to cover the initial costs of the investment. However, Situation analysis considers several internal and external factors that affect sales projection figures. Regardless, we have predicted that the factors may influence the sales of SAT for the first year:

Factors of Best Case Scenario SAT will earn support from the University of Glasgow and build up contractual alliance with local bank agencies, estate agencies and other business organizations such as Subway, increasing business support and awareness by word-of-mouth communication. Student service enthusiasts will be more concerned with the efficiency and convenience that SAT is offering, causing them to be more receptive to customers.

Factors of Worst Case Scenario Probability of more faultless service provided by the university equates to less spending by students.

Organization
Organization Structure
SAT is a small new company; it incorporates as a general partnership company under the regulation. Every founder of the company is taking part in different area such as Chief
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Executive Officer, Finance and Administration, Information System, Marketing, Student Service, and Reception. Each department has its own specialized directions but all of them are under collaboration, so that to ensure the company is operated efficiently (see Figure 11 Organization Structure, for more detail about the Operations Management, see Exhibit 3).

Internationalization
Making the move to take the company international is a watershed decision. With careful considerations of time, value and economics, SAT will follow the method of master franchise system that has been utilized and duplicated by successful companies who are already in franchising worldwide. For international markets, its foreign partners who have closer social network connection with the founders of SAT are screened and then upon
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partnering with the SAT Company, participate in a percentage of their performance in developing a new system in their country. With this method, the system could focus on its own domestic growth and momentum without trying to directly employ people in unfamiliar markets.

SAT is planning to launch franchise sales overseas in the fourth year. In order to go into a new market, the brand needed to fit the market and a great local partner needed to be found. Thanks to the social network carried by its founder and fast growth of the business, the company will be having more potential partners approach to carry the brand international; it will demand an international assessment of the situation. Probably, in order to find the perfect pairing of which markets to target and which partners to link up with, the company will engage an international business consultant if necessary.

ChinaBeijing Initially, it aims to create prospective partnership with a selected university in Beijing, China. SAT profiles Beijing as the one that would adapt to its service model with a large number of international students that have needs for this type of service.

Market overview China is becoming one of the most popular countries that foreign students would like to choose. In 2010, the total number of foreign students studying abroad whole year in China reached 260000 people for the first time, while the figure of foreign

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students in 2009 was 30000 less than that in 2010 (Ministry of Education of PRC, 2013). In 2008, more than 55000 overseas students came to study in Beijing, the capital city of China. The figure of international students in Beijing accounted for near one quarter among whole country (Ministry of Education of PRC, 2013).

Reasons to enter Well public security environment and city management High-speed development of economy and high degree of opening to the outside world stimulate the inflow of international students. Beijing, as the capital, offers various police advantages for international students, i.e. large number of scholarship, rich in historical and cultural atmosphere and heritage, greater science and education resources, etc. All of these make it more attractive for foreign students to come. SAT has stronger social network connection in China, as four of the founders are Chinese. Threats for Entering Language and Cultural Barriers Strong competitors like International Education Centers of Universities, which also provides very attractive services to International Students.

Selected Entry Mode--Franchise

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Due to the different geography, cultural backgrounds, and economic conditions comparing to Glasgow, SAT needs to adopt appropriate circumstance in Beijing. Regardless, transactional cost theory suggests that non-equity modes of entry (franchise) would be suitable for small firms where environmental uncertainties are perceived as to be high (Brouthers, 2004). According to British Franchise Association (2013), the Chinese government has supported the growth of franchising as it adds value to China in both economic and social context. In addition, about 90% of all franchisees reported profitability over the last 12 months and the most important is that, the major banks are very supportive of good franchising, which is quite helpful for SMEs like SAT. Therefore, the services offered by SAT in China will be slightly different from that in UK due to the unlike situation, franchising would be a better choice to lower the risk and make the own decision based on different markets.

Basically, SAT will be remaining similar series of services in Beijing. Besides, SAT will provide some special services such as Chinese language teaching and learning, cultural related lectures experiencing for overseas students that going to study in China. Considering the demand of second-hand stuff may comparatively lower than Glasgow, so SAT may close this session for Chinese market.

Conclusion
The idea of SAT business is simple, effective solution to the international students. We are
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addressing their needs to use an effective and inexpensive way to provide all the service online. However, current alternatives do not address all requirements for providing this service. Trends in the market indicate that SATs potential market is ripe to provide with a group of student problem solving expertise. Our unique positioning will give SAT the ability to become an well-known among university students in the future.

The marketing and operations management unify to meet the companys critical success factors of operational excellence. This is achieved through our marketing strategy and cost-effective and efficient operation methods.

SAT is a low-risk project that practical for students who are looking for real entrepreneurial experience. We hope that through our business plan, you have developed the same enthusiasm and confidence for exploiting your potential entrepreneurship.

References
Brouthers, K. D., & Nakos, G. (March 01, 2004). SME Entry Mode Choice and Performance: A Transaction Cost Perspective. Entrepreneurship Theory and Practice, 28,
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3, 229-247.

British Franchise Association. (2013). Join a Franchise: Advantages and Disadvantages of Franchising. (http://www.thebfa.org/join-a-franchise/advantages-and-disadvantages-of-franchising). Accessed 20/10/2013.

Ministry of Education of the Peoples Republic of China. (2013). International Cooperation and Exchanges (http://www.moe.edu.cn/publicfiles/business/htmlfiles/moe/moe_2813/index.html) Accessed 20/10/2013.

University of Glasgow. (2013). About Us: Student Numbers (http://www.gla.ac.uk/about/facts/studentnumbers/). Accessed 16/10/2013.

Exhibits
1. Essential and Serenity Packages

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Welcome bag The welcome bag will include some goodies and some useful tools such as: City maps Major events of Glasgow City travel guide...

Bank account International students open a bank account for free and they will be getting: A Visa International debit card An access to their online banking

Phone plan The Phone plan provides SIM cards and micro SIM cards. They are compatible with all cell phones (even the most recent iPhones). The SIM card is activated ready for use.

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The students have the choice of two different plans: Unlimited texts/100min call/Internet 3GB Unlimited texts/300min call/Internet 1GB

They could have their plan terminated whenever they want and there is no minimum duration.

Emergency contact Our agency will be opened 6 days per week. In case of emergency, SAT would happily allow students to make phone calls, send e-mails or via web. Moreover, SAT also prepares a list of different health specialists (such as Gp & dentists) or hospitals with contact information and map of location. In the case of serious health problem, one of the service representatives will come and help student for going to the hospital.

Accommodation Before the International students arrival, they would be able to select their place to stay upon preference among 3 different options: a studio apartment, a flat-share or a homestay. SAT has been working hardly on finding a good accommodation in order to meet students expectations.

Second-hand stuffs platform It is an online marketplace where former international students at the University of Glasgow sell their reusable stuffs such as books, beds, desks and printers etc. to other

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students. Those seller could be able to post pictures with description of their goods, so that buyer will be able to search and purchase directly via SATs website.

Airport Picking-up The member students of SAT will be able to receive a pick-up service when they arrive at the airport. One of the particular customer service representatives will be waiting in front of the terminal station and to escort them into their new place.

Survival kit The student service team of SAT fully understands how tired it could be after a long trip and the stress of being in a new city. The survival kit is therefore provided in order to facilitate international students arrival.

Daily monitoring SAT helps students with daily issues such as translating, making a booking for train/airplane tickets, taxi, etc. Students will be able to contact the student service team via phone call, e-mail or web from every Monday to Saturday.

Job/internship searching SAT also assists international students with Part-time job and internship searching within or even outside the European countries. It works closely with the student service department from the universities and to make sure that its member students are always

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updated with the newest up coming opportunities.

2. Sample of Web page

3. Operations Management
Strategic Value Chain

One of SATs strategic objectives is to focus on operational excellence to provide the students with the most value at a competitive price while offering a variety of services. To describe the value added in each process, we break down the ordering process into the following areas: reception, student services, transportation and accounts receivables, information systems, and finance and administration. The strategic value chain depicted in

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Figure 12.

The following alternatives have been evaluated using make-buy analysis considering quantitative and qualitative factors to determine the ideal combination of process that make up the value chain.

1. Reception

Reception department perhaps one of the most valuable areas for SAT company because it will be the face to the customer, be it by phone or by Web. Initially, the department will consist of Web editor and telephone operator. Web editor will be in

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charge of reviewing and releasing all orders that coming in via the Web; and telephone operator will be dealing with offline inquiries from the customers, such as order picking and provide outstanding call handling. The objective of the reception department is to enable a better control of incoming calls and deliver more personalized service to customers. Technology will play a large role in this department because it will all be automated from the telephone queue and Web system, to finding the answers to customer inquiries, to placing orders and allocating service.

Order Picking Reception department puts the order together into Service Schedule electronically, at which point service inquiry is allocated to exact customer service representatives. The orders are placed in different service packages, which is also electronically determined by the system. Once the order picking and place processing is complete, the order will be configured manually with different customer service representatives and customer will be informed with a timetable that indicates when and where they will be served and whose responsibility is there to taking care of them.

Call Handling Another function of the reception department will include, but will only limited to, answering any inquiries the customer has regarding our services or processes (ordering, payments, etc.), placing the order, and reporting any feedback from them.

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Financial Considerations The cost of running a reception department is minimal because all that is required is employee salaries and benefits as well as tools for domestic and international communication. The total of these costs is broken down in Figure 13.

Year 1 Number of Receptionists Wages Equipment Total 2 20,000 1,430 21,430

Year 2 3 30,000 1,430 31,430

Year 3 4 40,000 1,430 41,430

Figure 13 Reception Financial Considerations Strategic Considerations The Receptionist is the central point for communication within the company and an important face to our customers and business-partners. Web editor and telephone operator requires good skills in serving, computing, and English language. It is crucial to ensure that we have the best possible applications and tools to handle internal- and external calls, so that to supervise switchboard efficiency and be open for business around the clock.

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2. Student Service

SATs student service process is the core of companys operation excellence. With a group of problem solving expertise, it will make sure that the business is always keeping close relationship with our costumers. The department of student service will consist of several numbers of customer service representatives. The customer service representatives will be separated base on the area that they are serving. For example, Residential service representative will be helping students for finding new accommodations and helping them move in/out from different apartment; some service representatives will be assisting students with their visa application such as consulting and documentary checking. There will be customer service representatives who will be handling students emergency needs. At the head of each customer service area will be a team leader. One analyst will be included in this department to continuously provide reports and analysis on the performance of the customer service representatives, to keep track of customer with issues such as nonpayment. The customer service department will be headed by a manager who will oversea the day-to-day activities and by a director whose responsibility will be align the department with corporate strategies.

Financial Considerations Though a complex to manage, the customer department is relatively simple for budgeting; in addition to employee salaries and benefits, training and overhead are
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included. Figure 14 is an outline of the costs that will be incurred.

Year 1 Number of Employees Wages Phone Business Trip Office Material Total 6 60,000 600 1,500 130 62,230

Year 2 8 80,000 600 2,000 130 82,730

Year 3 10 100,000 600 3,000 130 103,730

Figure 14 Cost of Customer Service

Strategic Considerations Customer service is considered as a core of operational excellence and needs to be closely monitored. Customer service also requires a large amount of manpower with skills in serving and English language. Relevant service know-how is very important for all the customer service representatives, as they need to understand what the problems are, and how to solve the problem. Customer service is a delicate issue that must be supported by the dedication of employees that are responsible, attentive and patient. There are no companies in Glasgow that offer all these specific services to
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international students. If this service is offered, it will be collaborating with the universities, bank and residential agencies, and other stakeholders within the community. It is should be a core competency of the student service company that would be required to have international experience.

3. Transportation and Account Receivables

Services such as airport pick-up and accommodation moving will be loaded onto a taxi or van along with other services to be provided. Depending on the types of delivery that the customer has required, the transportation company is contacted by the particular customer service representative and arrives ready for service placing. The mission is considered complete when the driver receives cash or a check for the transport, unless the customer has prepaid by bank card. Those who do not make prepayment will pay directly to the drivers.

Financial Considerations Financial considerations for basic transportation include the cost of transporting with regard to location domestically. However, SAT will be outsourcing vehicle from other transportation company, so the cost for SAT will only be employee wages (see Figure 15).

Year 1 Transportation 12,450

Year 2 24,878

Year 3 37,316

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Figure 15 Transportation Costs

Strategic Considerations Reliable drivers who can pick up customers are required.

4. Information Systems

There are two main information systems that will play a decisive role in the profitability of our company growth. It is important that the foundations of the system are laid appropriately at the launch of the project to properly support the growth of the company. The Transaction Processing Systems (TPS) and the Service Management System (SMS) will be implementing over the time. Ensuring that orders placed via customer service and the inquiries are handled in an efficient and timely manner. The TPS will enable us to manage orders into different schedules. Customers select their service schedule and date (the input), and the system updates the service available list, removing those selected by the customers (the processing); the system then generates a bill and a copy of the order (the output). The SMS will further allocate the tasks to particular customer service representatives. Additionally, import systems that are required are a full accounting system for budgeting, account payable and receivable, and employee payroll. A full marketing system will also be required to ensure that the marketing department has the tools required for market analysis and forecasting. The website, and any internal information technology (IT) issues, will be managed by the IT officer.

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Financial Considerations Figure 16 is a summary of the costs of information systems. Year 1 Number of Employee Wages Maintenance and Repairs Total 1 10,000 500 10,500 Year 2 1 10,000 500 10,500 Year 3 1 10,000 500 10,500

Figure 16 Cost of Information Systems

Strategic Considerations The functioning of the company will be in conjunction with information systems as its management tool. It is vital to sustaining a good customer relationship and preventing service overlap. There needs to be quick turnaround for remedies to any issues that arise with the information systems. SAT needs to have IT officer in consulting that can handle all systems simultaneously, ensuring proper alignment between all systems as well as addressing any issues that arise.

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5. Finance and Administration

The financial and administration department of SAT are referred to as the soul of the company. This department includes the chief executive officer and an accounting manager. The companys headquarter will be located in the University of Glasgow. The reason for choosing Glasgow University as headquarter is that the founders of the business are students from there; it is the central hub of student gathering; and it is more convenient for us to reach other stakeholders such as universitys student service center, bank and residential agencies, etc.

Financial Considerations The costs of running the financial and administration office are relatively low since all that required is employee salaries and benefits, overhead, and expenses for training and networking. The total of costs is broken down in Figure 17.

Year 1 Number of Employees Wages Office Material Insurance Office Rent Water and Electricity 2 20,000 130 1,500 4,800 840

Year 2 2 20,000 130 1,500 4,800 840

Year 3 2 20,000 130 1,500 4,800 840

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Total

9,270

9,270

9,270

Figure 17 Financial and Administration Purchasing Considerations

Strategic Considerations The roles required to fulfill the financial and administration duties cannot be outsourced to an outside entity.

4. Questionnaire Survey
Hello, we are students from the University of Glasgow and we are doing a short survey about what kind of services that international students want to have when they are studying abroad. We would like to ask you some questions about what kind of service you would like to receive. It would be very appreciated if you could take a few mintutes to answer it.

1. Nationality

2. Which qualification are you looking for? Bachelor degree Master degree Doctoral degree Other

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3. What kind of services would you like to receive? etc.) Taking part in international events (scottish dancing, international food fectival etc.) Second-hand stuff platform access (handbook, desk, bed etc.) All the services listed above Openinig bank account Getting a phone plan Emergency contact Finding an accomodation Airport pick-up Helping guides (city maps, tours, public transportation, restaurants etc.) Survival kit (pillow, duvet, sheet, a set of cutlery etc.) Daily monitoring (booking taxi/train/airplain tickets, translating, advices

4. If you had the choice between these two packages of services, which one would you prefer? Essential package (bank account, phone plan, emergency assistance, accomodation, second-hand stuff platform access) Serenity package (essential package + survival kit, picking-up at the airport, daily monitoring, job/intership search) 5. Which price do you think is reasonable for theses packages? *

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100-200 pounds 200-300 pounds 300-400 pounds above 400 pounds

6. Which service(s) we didn't mention above would you like to find? If this kind of students services business is going to exist, how would you agree to purchase? Absolutely yes Yes Maybe No Definitely not

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5. Results of the Survey

Price Preference
100-200 200-300 300-400

5% 23%

72%

Package Preference
Essential Package Serenety Package

38%

62%

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Probability of Service Purchasing

Yes and Absolutely Yes Maybe No and Definitely Not

7%

39%

54%

Nationality of Respondence
Chinese French Austrian Indian Japanese Russian Spainish Thai

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