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Final Delivery Blue Dolphin
Final Delivery Blue Dolphin
Final Delivery Blue Dolphin
PROPOSAL
Jorge Peregrino
Paula Vargas
Monika Mital
Zhenyu Zhang
Yu Meng
1
INTRODUCTION
Our company is going to provide car wash service in Zollikofen. We are located
near petrol station by which daily turnover of cars is around 25 000. Our visibility is good
then. Our company uses the high pressure car wash system provided by Blue Dolphin
company of total value of 420 000 CHF. We are operating under leasing contract for 10
years with our partner. Our operating place is rented for 30 000 CHF per annum.
a.
Our service is aimed at both individual clients as well as transport companies, taxi
companies which possess fleet of cars and need professional car wash service. We are
happy to offer them discounts as they they are interested in using our services.
Promotion and advertisement plan:
price and the key problem is cultivate the residences habit here.
Celebrate the opening and welcome the customer here first time with
40% discount and free coffee. Moreover, the first 10 customers each day is free
during the first 2 weeks.
them visit ours and let them know the new high pressure washing machine can
make a totally new way which can save water and time with good quality.
discount level if you have a card and put in a certain amount of money.
2 BUYERS
The bargaining power of customers is also described as the market of
outputs. There is 21000 vehicles in Zollikofen, (total population of Zollikofen 42000
people with an average of one vehicle for two inhabitants) which means a
considerable ability of consuming on car wash service. We can take measures to
maintain potential customers by implementing a loyalty program.
4 SUBSTITUTES SERVICES
There is two ways to substitute our high pressure car washing including
washing at home and washing in tunnels with rollers. Just 20% are done at home
3
while 50% are done in tunnels with rollers. But we need bigger investment above CHF 1
Million if we built tunnels with rollers.
Financial Analysis
In order to make a good financial analysis of the company, we may take into
consideration several aspects in its environment. One of the most important is the country
we are in. This case runs in Switzerland, where there are important points to consider
such as its economy has no drastic changes, this means: no inflation rates, flatness,
constant but low growth; therefore the sales, salaries, leasing, the operation costs,
administrative costs will remain the same.
Note: To see details, please go to the Excel file.
4
TOTAL INVESTMENT
Concept
Initial investment
Expenses
Rent
Water
Energy
Maintenance
Insurance taxes advertising
SUM
$
$
$
$
$
$
30,000.00
20,412.00
20,412.00
40,824.00
18,000.00
129,648.00
Equipment
High pressure car wash system
Chemicals
$
$
420,000.00
23,814.00
SUM
443,814.00
SUM
OTHERS
Excavation done by Markus
Franchise
$
$
200,000.00
136,080.00
SUM
336,080.00
909,542.00
YEAR
TOTAL INVESTMENT
INCOME STATEMENT
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Y10
TOTAL
$909,542
Yearly sales
Cost of sales
Gross PROFIT
Total Operation costs
340,200
34,837
34,837
34,837
34,837
34,837
34,837
34,837
34,837
34,837
305,363
305,363
305,363
305,363
305,363
305,363
305,363
305,363
305,363
305,363 $3,053,632
34,837
$348,368
188,948
188,948
188,948
188,948
188,948
188,948
188,948
188,948
188,948
188,948
1,889,480
Rent
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
30,000
$300,000
Water
20,412
20,412
20,412
20,412
20,412
20,412
20,412
20,412
20,412
20,412
$204,120
Energy
20,412
20,412
20,412
20,412
20,412
20,412
20,412
20,412
20,412
20,412
$204,120
Maintenance
40,824
40,824
40,824
40,824
40,824
40,824
40,824
40,824
40,824
40,824
$408,240
18,000
18,000
18,000
18,000
18,000
18,000
18,000
18,000
18,000
18,000
$180,000
Salaries
42,500
42,500
42,500
42,500
42,500
42,500
42,500
42,500
42,500
42,500
$425,000
Leasing
16,800
16,800
16,800
16,800
16,800
16,800
16,800
16,800
16,800
16,800
$168,000
Operative PROFIT
$116,415 $116,415 $116,415 $116,415 $116,415 $116,415 $116,415 $116,415 $116,415 $116,415 $1,164,152
Total taxes
38,805
38,805
38,805
38,805
38,805
38,805
38,805
$271,635
Tax
38,805
38,805
38,805
38,805
38,805
38,805
38,805
$271,635
$77,610
$77,610
$77,610
$77,610
$77,610
$77,610
$77,610
$892,517
Balance Sheet
Up to Nov 16th.
ASSET
Liability
Liquid asset
$ 200,000.00
Bank/Cash
Leasing
Leasing
Interest Payable
Loan
Equity
$ 7,908.48
$ 100,000.00
Owners equity
Stock
Profit
$ 100,000.00
$ 116,415.20
Total
$ 216,415.20
7,908.48
Total
$ 107,908.48
Fixed asset
Equipment
$ 86,415.20
Land paid in advanced
$ 30,000.00
Total
$ 324,323.68
Asset=Liability+Equity
Total
$ 324,323.68
We know that there are 42000 inhabitants in the city. There is a car
for each two inhabitants. Based on that, 30 % of people would wash their cars in
high-pressure car-wash machines and 60% of them are willing to wash their cars
when it doesnt rain. We made an assumption that 25% of those people wash
their cars at least twice a month. We know that the price of every wash is 6 CHF.
Our yearly turnover would be: 42000 x 50% x 30% x 60% x 125% x
and its annuity. This means that we pay 13586.80 CHF per year.
For the operation costs and taxes, the details are given in the
main data, these data are based on the annual turnover and operative profit,
so it would depend on its value. No assumptions were needed.
TURNOVER
500,000
450,000
400,000
350,000
Blue Dolphin
CHF
300,000
Laussane
250,000
200,000
Geneva
150,000
Yverdon
100,000
Nyon
50,000
0
Company
If we compare the turnover with the other companies we can conclude that
Blue Dolphin is in the middle with 340.200 CHF. It is a good number for a company
that is new in the market, it demonstrates its potential within the car washing
industry. Likewise, the turnover permits us to pay our administrative and
operational costs, generating profits through its activity.
Conclusion
Finally, during ten years, the sales will remain constant, this means that
wont be a yearly growth, flatness. The operation costs are the same because they
7
depend of the annual turnover (its the same every year). Its a feasible proposal to the
bank, we can pay their interests, and this means that the company is solvent, it can pay
its liabilities with no worries.
From the five competitive forces of Porter, we can state that we can get lower
relative costs and make loyalty program to reduce customers' power in term of bargaining
power of supplier and customer. Also, the project is profitable as to intensity of competitive
rivalry. So the five forces are positive to our project.