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COMPANYS LOGO

SLOGAN: WE ARE ALL EQUAL

TABLE OF CONTANTS
Page no.

 Executive Summary…………………………………………………........ 3

 Business Team………………………………………………………......... 3

 (Administrative, Financial, H-R, I.T, Logistics, Marketing, Public- relation)

 Macro and Market environments……………………………………….. 4

 (Competitive, Technology, C-edge, Sales strategy, T-market segment, Market needs)

 History & Profile of the business……………………………………….. 6

 (Mission, Keys to success, Products & Processes, Product & service description)
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 Marketing Plan…………………………………………………………... 9

 (Market Trends, Market Growth, Distribution strategy, pricing)

 Implementation Table…………………………………………………... 11

 Risk Assessment…………………………………………………………. 13

 (Break-even analysis, Projected profit & loss, )

 Summary & concluding remarks………………………………………. 15

 (Company summary, Strategy & implementation, Management, promotion summary)

 Words & their abbreviations

 Members of this assignment

Executive Summary

Description of this business is that it focuses on providing service on its consumers. It repairs
technological equipments, provides professional service, supply materials such as papers for
printers.

By focusing on its strengths, its key customers, and the underlying values they need, Information
Management Bi-Tech, Inc. (IMBTI) will increase sales steadily in its first three years, while also
maintaining the gross margin on sales, with a focus on cash management and working capital.

This business plan leads the way. It renews our vision and strategic focus: adding value to our
target market segments, and reinforcing our ties with businesses in our local markets. It also
provides the step-by-step plan for improving our sales, gross margin, and profitability.

This plan includes this summary, chapters on the company, products and services, market focus,
action plans and forecasts, management team, and the financial plan.

BUSINESS TEAM
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Management Team

KITSO BAIKGAKI, president and administrative manager: Kitso is responsible for the overall
performance of the entire business.

ITUMELENG SEBEKIDI, Financial manager: focus on getting the money needed to operate the
business, as well as managing the funds in the best interest of the business.

JOHN NTSHIDI, Human-Resource manager: handles all the staffing needs and manage the
recruitment and hiring of new employees.

KOENA TSOANYANE, Information technology manager: Implementing, maintaining and

controlling technology in the business.

HEIN STALLENBERG, Logistics manager: Is responsible for the management tasks associated
with inbound logistics and outbound logistics.

THEMBA HADEBE, Marketing manager: Responsible for the establishment of need- satisfying
goods or services for the organization’s customers.

RAYMOND MDABULI, Public- relations manager: Is responsible for maintaining a positive

image for the company.

The analysis of the macro and market environments and the positioning of the business in
the market

Competitive Comparison

The only way we can hope to differentiate well is to define the vision of the company to provide
information technologically to our clients. We will not be able to compete in any effective way
with the large mainland-based office equipment companies by selling boxes or products as
appliances. We need to offer a real alliance to our local customers.

The benefits we sell include many intangibles: confidence, reliability, knowing that somebody
will be there to answer questions and help at the important times. These are complex products
that require serious knowledge and experience to use. Our competitors tend to sell only the
products themselves, and very little in the way of after-sale training and support.

Unfortunately, we cannot sell the products at a higher price just because we offer services; the
market has shown that it will not support that concept. We have to also sell the service and
consumable supplies and charge for them separately. This monthly recurring revenue is the
foundation of our financial stability.
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Technology

New technology has changed almost everything about the traditional office equipment
(copier) industry, and for all practical purposes it no longer exists. The new Information Industry
has emerged because of the technology of convergence. The primary driver of convergence of
different forms of information is technological change, specifically the rapid diffusion of digital
technology into an ever-wider array of information businesses. Beyond digitization, dramatic
changes in computing and telecommunications industries (mainly in faster microprocessors and
increasing bandwidth) are also driving convergence.

IMBTI will make convergence the theme of its vision, planning, and marketing strategies. We
will move into the new Information Industry's technology with the aim of bringing the most
efficient workflow solutions to our clients while providing value-added customer support and
service, and earning a reasonable profit in the process.

Competitive Edge

Our competitive edge is our positioning as a strategic ally with our clients, who are clients more
than customers. By building a business based on long-standing relationships with satisfied
clients, we simultaneously build defenses against competition. The longer the relationship stands,
the more us help our clients understand what we offer them and why they should both stay with
IMBTI, and refer us to other businesses. In close-knit communities like the Neighbor Islands,
reputation is extremely important, and word-of-mouth advertising is invaluable.

Sales Strategy

We will sell the company and its ability to act as an ally. We will sell IMBTI, and the reputation
of the industry-leading manufacturers it represents.

We will sell our service and support. The hardware is like the razor, and the support, service,
software, and training, are the razor blades. We need to serve our customers with total solutions,
and not just product features. The products are a means to arriving at end solutions.

The Yearly Total Sales chart summarizes our conservative sales forecast. We expect sales to
increase from R3.1 million in the first year to more than R4 million in the third year of this plan.

Target Market Segment Strategy

Developing a market strategy is a departure from the way the company has been managed in the
past. We will change the paradigm of being a product- and price-focused sales organization, to
that of becoming a customer- and market-focused organization, with all departments sharing
responsibility for customer satisfaction. We will accomplish this paradigm shift through the
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implementation of a balanced scorecard philosophy of management, with special attention to

employee learning and growth.

As mentioned previously our market segmentation strategy is straightforward, and addresses all
components of the Neighbor Island business community. Planning and implementing specific
strategies for each of the four identified segments will be an on-going process, and we will
consult with marketing specialists, and our manufacturers, to further refine these efforts as we
develop our marketing plan.

Market Needs

All businesses have in common a need to be continuously productive, and they rely on their
service providers and vendors to sustain their productivity. Effectively filling this need requires
that the vendor bring to the table sound planning, quality products, reliable service, and a true
partnership and support relationship.

Specific business needs include the ability to gather, compile, analyze, and distribute information
in various media formats. This is where IMH's strengths will be most beneficial to our clients,
both big and small. Anyone can sell the "box" at an attractive price, but only a true value-added
provider can offer the peace-of-mind that comes from a customer-focused approach to the
relationship.

Primarily due to geographic isolation and smaller populations, the Neighbor Island business
community has an additional common need of being able to rely on other locally-based vendors
and suppliers for quick, reliable, customer service and support. Having to call someone on Oahu,
or the mainland, to place a service call, or to order supplies, or get an answer to a simple billing
question, is both an irritant and a hindrance to most Neighbor Island-based businesses. Our
primary goal is to fill this need by bringing true pro-active, and total, customer service to the
Neighbor Island business community, and to gain their confidence and loyalty. This will become
one of our underlying strengths.

The history and profile of the business

Mission

To provide the Bi-Tech Inc business community with quality brand-name Information
Technology business information solutions, reliable and professional Technical Support, and
unparalleled Customer Service through the application of its principles to earn a fair profit for
our employee, owners and stakeholders by embracing sound, ethical business practices.
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Keys to Success

The keys to our success are:

 Building and maintaining strategic alliances with our manufacturers and other industry
related business partners;
 Adopting a customer- and market-focused sales and marketing paradigm; and,
 Managing the business by implementing, and consistently measuring and adjusting the
fundamentals of a Balanced Scorecard:
o Financial Goals vs. Results
o Internal Business Process Goals vs. Results
o Employee Learning and Growth Goals vs. Results
o Customer Satisfaction Goals vs. Results

Products and Processes

IMBTI will acquire an existing operation whose primary business has been the sale and service
of business appliances (copiers, facsimiles, printers, etc.) and has operated as a part of the office
equipment industry. We will build from this base to transform the business into a value-added
provider of the emerging services and technologies of the new Information Industry. Following
the lead of Canon, USA and other manufacturers which we represent, we will approach the
marketplace from a total systems solutions viewpoint.

This new paradigm will begin with an analysis of the client's existing and planned business
processes, and will provide total workflow solutions utilizing multifunctional imaging platforms
and information distribution systems. These systems will be backed by professional and reliable
technical service and proactive customer service. By forming strategic alliances with local
Information Industry Value-Added Resellers, we will be able to offer turnkey Local Area
Network (LAN) systems and the ability to retrofit existing LAN and peer-to-peer systems.

Product and Service Description

IMBTI will market and sell brand name business information distribution systems and hardware,
technical service and support for these products, and the consumable supplies used by these
systems. We will be a single-source provider for business information and imaging products and
services.

After researching our various manufactures’ offerings and evaluating our core competencies, we
will focus our marketing and sales efforts around the digital products offered by Canon USA and
e-Copy, Inc. We will supplement this product line with Lexmark and Hewlett Packard printer
products. As we continue to transition the company into the digital marketplace, we will form
alliances with additional IT manufacturers and suppliers who can round out our product and
services line.

Hardware product offerings will include:

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 Canon Image Runner multifunctional products (scan/copy/print/fax)

 Canon multifunctional facsimiles (print/fax)
 Canon Graphics reproduction products (commercial color)
 Canon Micrographics products (electronic document storage)
 Canon Printer products (color)
 Lexmark Printer products (monochrome and color)
 Hewlett Packard Printer products (laser)

Software offerings will include:

 E-Copy Scan Station

 E-Copy Share Scan
 E-Copy Desktop
 Canon Image Platform (document distribution)

Service Products include:

 All-inclusive maintenance agreements (on-call service and supplies)

 Walk-in service (time and materials)
 Warranty Repairs (certain Canon consumer products)
 Sale of consumable products for all brand names (Canon, Ricoh, Xerox, HP, Lexmark)

Professional Services include:

 Information Workflow analysis and design

Network design and installation (sub-contracted).

Company Locations and Facilities

We have two locations, one in Kahului, Elements and the other in Hilo, Bi-Tech Inc. The two
offices are presently being leased by Servco Pacific, Inc., and we will rent from them on a
month-to-month basis until we are able to relocate to more suitable facilities. On Kauai, we have
a sub-contractor agreement with Elements Office Equipment to handle installations and service.

Company Ownership

IMBTI will be privately-held [Close corporation] owned in majority by the IMBTI Employee
Stock Ownership Trust. There are currently 15 employees, and all will own equal shares in the
ESOT. New employees will be given the opportunity to become vested in the Employee Stock
Ownership Plan (ESOP) after a suitable probationary period.

Entrepreneur’s experience
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The chief manager joined SIOT in 1998 as Maui branch manager, and became general manager
for Neighbor Island operations six months later. Prior management experience includes:
BTA market manager of the Neighbor Islands for Voice Stream Wireless, Neighbor Island area
sales manager for Central Security Systems, and radar project manager for Telkom International
in Nigeria, West Africa. Bill has attended numerous management and sales training courses and
seminars throughout his career.

Future Products and Services

Beginning at start up, we will explore and research new information technologies for inclusion in
our product offerings. The products which we choose will be in line with our vision to transition
the company from being an appliance seller, to being a provider of total information
management solutions. These convergent information products will include:

 Wireless LAN systems

 Information management systems (hardware and software)
 Tele-business and E-Commerce systems
 Media transport and reproduction (distribute and print)

Fulfillment

We have an established relationship with our manufacturers and suppliers, and will be able to
take advantage of all discounts and promotions in order to keep our margins at roughly 49%
throughout the operation. We will also implement and employ "just-in-time" inventory strategies
for hardware, supplies, and service parts orders to further strengthen our margins.

As we continue to grow the business, we will evaluate other IT industry manufacturers and
product lines to strengthen our offerings with a view primarily to quality and margin advantages.

MARKETING PLAN

Market Trends

The most significant trend in today's business-to-business marketplace is the move from analog
to digital technology and from stand-alone workflow functions to multifunctional platforms
which are connected to a network. It is this trend that has caused many of the major players in
the outdated office equipment (copier) industry (Xerox, IKON, etc.) to falter, and see their
profits decline. This is true mainly because of their inability to change rapidly from an "analog
mentality" and move forward in applying the emerging convergence of digital information
technologies to the marketplace.

That is the primary reason that IMBTI has chosen Canon USA as its preferred manufacturer.
Canon has led the way in the industry with its digital technology innovations, and its ability to
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bring both the product and the concept to the marketplace. We will follow Canon's lead and
bring this efficient, productivity-enhancing technology to Neighbor Island businesses.

4.2.2 Market Growth

As computer prices continue to fall, unit sales increase. The published market research on sales
of personal computers is astounding, as the United States market alone is absorbing more than 30
million units per year, and sales are growing at more than 20 percent per year. We could quote
Dataquest, Infocorp, IDC, or others; it doesn't matter, they all agree on high growth of CPU
sales.

This rapid growth rate holds true for productivity systems which connect to the computers being
sold. The stand-alone analog systems and appliances which abound in the business marketplace
today will be replaced by connected digital convergence systems in the coming months and
years. IMBTI will position itself to be a value-added provider of this rapidly emerging
technology for new businesses, while continuing to maintain and upgrade our current
analog customer base.

The production or operational plan

Distribution Strategy

IMBTI is first and foremost a direct sales organization, meaning that we must present our
services and products directly to the majority of our customers and clients. Having said that, for
our planned penetration into the SOHO market, we will need to establish a presence as a Value-
Added Reseller (VAR) for certain low-end product lines which don't carry the margins
necessary to sustain the costs of direct sales. We will plan our new locations accordingly.

Pricing Strategy

We must charge appropriately for the high-end, high-quality service and support we offer. Our
revenue structure has to match our cost structure, so the salaries we pay to assure good service
and support must be balanced by the revenue we charge.

We cannot build the service and support revenue into the price of products. The market can't bear
the higher prices and the buyer feels ill-used when they see a similar product priced lower with
the competition. Despite the logic behind this, the market doesn't support this concept.

Financial Plan

Although we are treating the business as a start-up company, the financial plan is solidly based
on past performance. We have taken actual SIOT P&L income and expenses from the past three
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years, and eliminated corporate overhead expenses such as warehouse and administrative costs,
inventory penalties, and corporate nominal interest. We then projected income based on actual
past performance, and factored back in the revenue base that was relocated to Honolulu over the
past two years (mainly service and supplies).

We approached the financial planning from a conservative standpoint, and based those numbers
on achievable gross margins. Also, our actual interest and tax rates will most likely be lower than
the assumed rates due to our being structured as an employee-owned corporation (ESOT).

7.1 Important Assumptions

The financial plan depends on important assumptions, most of which are shown in Table 7.1. As
mentioned previously, we assumed interest and tax rates based on a "worst case" scenario, and
these will be adjusted once we have finalized the initial funding and establish the ESOT. We
have also assumed our personnel burden at 30% of payroll in order to allow for above-average
benefits for our employees. As we shop around for benefits vendors, this assumption will be
subject to revision as well.

Key Financial Indicators

As shown in the Benchmarks chart below, our key financial indicators are:

 Projected Sales: Projections are based on actual past performance, and are conservative.
We will increase sales at an average rate of 15% per year.
 Gross Margins: Average gross margins are based on: hardware sales = 37%; service =
57%; supplies = 52%; and, other = 50%, for an overall operating gross margin of 49%.
 Operating Expenses: Operating expenses are based on providing our employee-owners
with above average wages and benefits, and providing superior customer service.
Expenses are projected to increase at the rate of 6% per year.
 Collection Days (A/R): Based on the extensive use of leasing, and including service and
supply agreements into leasing packages, we will maintain an average A/R turnover of 30
days. This is projected to be reduced to 28 days in subsequent years by increasing
efficiencies in our internal business processes.
 Inventory Turnover: We will maintain just-in-time inventory levels, or 11 turns per year.
This will require accurate sales forecasting, and working closely with our manufacturers.
We have already begun this process under SIOT, and the Neighbor Island inventory
levels are well below previous years.
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The implementation time table

Milestones

Milestone Start Date End Date Budget Manager Department

SIOT (NI) Valuation 5/1/2010 5/31/2010 R0 BH Admin
Complete Business 5/14/2010 6/22/2010 R200 BH Admin
Plan
Submit Letter of Intent 6/1/2010 6/15/2010 R0 BH Admin
Choose New Company 6/15/2010 7/31/2010 R0 All All
Name
Secure Start-up 6/15/2010 7/31/2010 R0 BH/All All
Funding
Retain Attorney/CPA 6/15/2010 7/31/2010 R10,000 BH Marketing
Negotiate Purchase 6/18/2010 8/15/2010 R0 BH/All Admin
Agreement
Set Up ESOT/ESOP 6/30/2010 8/31/2010 R12,500 BH/LW All
Set Up New 6/30/2010 8/31/2010 R12,500 BH/LW All
Corporation
Solicit Board Members 6/30/2010 8/31/2010 R0 BH All
HR Roll-Over Plan 7/1/2010 8/31/2010 R0 BH/LW Admin
(SPI to IMBTI)
Purchase e-Automate 8/1/2010 8/31/2010 R20,000 BH/LW Admin
Software
A/P & A/R into e- 8/1/2010 8/31/2010 R0 LW Admin
Automate
Business 8/1/2010 8/31/2010 R500 BH/LW Admin
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Licenses/Permits
Customers into e- 8/1/2010 8/31/2010 R0 JM/BK Sales
Automate
Inventory into e- 8/1/2010 8/31/2010 R0 LW/JA/EO Service
Automate
Letter To 8/1/2010 8/31/2010 R0 LW Admin
Vendors/Customers
New 8/1/2010 8/31/2010 R2,500 LW Admin
Stationary/Brochures
Obtain Insurance 8/1/2010 8/31/2010 R25,000 BH/LW Admin
Switch Utilities To 8/1/2010 8/31/2010 R1,000 LW Admin
IMBTI
Web Site Development 8/1/2010 8/31/2010 R10,000 BH Admin
Complete Marketing 8/1/2010 8/31/2010 R2,500 All Sales
Plan
IMBTI Operations - 9/3/2010 9/3/2010 R0 All All
Day 1
Bd. of Dir. Mtg. (First) 9/4/2010 9/7/2010 R1,000 All All
All Company - Kick 9/4/2010 9/7/2010 R750 All All
Off Mtg.
Sales Strategies & 9/4/2001 9/30/2001 R2,500 JM Sales
Programs
Marketing Strategy & 9/4/2001 9/30/2001 R3,500 BK Sales
Programs
First Quarter BP 12/10/2001 12/14/2001 R0 All All
Review
Headcount Review 12/10/2001 12/14/2001 R0 BH/EO/JA Sales/Svc
Bd. of Dir. Mtg. 12/10/2001 12/14/2001 R1,000 All All
(Qtrly)
Cost IT Training 3/4/2002 3/8/2002 R0 BH/EO/JA/BK Sales/Svc
Sources
Second Quarter BP/MP 3/4/2002 3/8/2002 R0 All All
Review
Enrol Team in IT 3/18/2002 3/29/2002 R2,500 All All
Training
Third Quarter BP/MP 6/3/2002 6/7/2002 R0 All All
Review
Bd. of Dir. Mtg. 6/3/2002 6/7/2002 R1,000 All All
(Qtrly)
Fourth Quarter BP/MP 9/2/2002 9/5/2002 R0 All All
Review
Bd. of Dir. Mtg. 9/2/2002 9/5/2002 R1,000 All All
(Qtrly)
New 3-Year BP Due 9/2/2002 9/13/2002 R0 All All
New 3-Year Mktg. 9/2/2002 9/13/2002 R0 All All
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Plan Due
Name me 9/16/2002 9/30/2002 R1,000 All All
Totals R110,950

RISK ASSESSMENT

Break-even Analysis

For our break-even analysis, we assume running costs which include our full payroll, rent, and
utilities, and an estimation of other running costs. Payroll alone, at present, is about $65,500 per
month (including benefits and taxes).

We will monitor gross margins very closely, and maintain them at a midrange percentage by
taking advantage of all promotions and discounts offered by our manufacturers. Canon USA has
tentatively agreed to offer us "end column" pricing as a new dealer incentive.

The chart shows what we need to sell per month to break even, according to these assumptions.
This is about 78% of our projected sales for our first year, and is well below what we have
achieved annually over the past three years under more adverse operating conditions.
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Break-even Analysis

Monthly Revenue Break-even R209,018

Assumptions:

Average Percent Variable Cost 51%

Estimated Monthly Fixed Cost $101,932

Projected Profit and Loss

Our Pro Forma Profit and Loss statement was constructed from a conservative point-of-view,
and is based in large part on past performance. By strengthening our service position, and
rebuilding our customer relationships, we will widen our customer base and increase sales.

The summary and concluding remarks

Company Summary

Information Management Bi-Tech Inc will sell and service digital office information systems for
Bi-Tech'i's businesses, with a focus on the Neighbor Island business community. IMBTI will be
formed as the result of the acquisition of three existing businesses: Elements Office Machines,
Inc.; Electronics Bi-Tech Inc.; and, Kauai Office Equipment, Inc.

Strategy and Implementation Summary

We must differentiate ourselves from the box pushers. We need to establish our business offering
as a clear and viable alternative for our target markets, to the price oriented sales pitch to which
they are accustomed.

From the standpoint of the office equipment (copier) industry the paradigm has been:

 Copier centric – if they're not in the market for a copier, they're not a prospect.
 Price, price, price – must save prospect money in order to gain interest.
 Box movers – selling features.
 Calling on influencers – office managers and purchasing departments.
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 30-day sales window – war with competition mainly on price.

The industry's cheese has been moved. In order to shift to a more contemporary paradigm, our
marketing and sales efforts will need:

 A new attitude – we are at the beginning of a product/technology convergence.

 A new approach – total account management and control.
 A new set of behaviors – solution selling, joint prospecting, systems auditing.
 A new marketing concept – customer oriented, profit oriented, integrated efforts.

Management Summary

Our management philosophy is simple and is an integral part of our values: doing right things
right, the first time (Kina'ole).

IMBTI will be an employee-owned company and we all share the same vision of providing our
clients (who in many cases are friends and neighbors) with the very best in customer service -
period. We will encourage personal growth, creativity, and enable individual empowerment to
achieve this goal. We will manage the business by setting achievable Balanced Scorecard goals,
measuring them, and making mid-stream adjustments as necessary.

Promotion Strategy

We will employ the following general promotional strategies for the various market segments:

 SOHO: We will depend on periodic local newspaper advertising, to reach new buyers in
this segment. We will also utilize direct mail and the resources of the local Chambers of
Commerce and other affinity groups to reach this segment. The message will emphasize
service first, and "complete product and service packaging" as a secondary theme.
 Medium to Large Businesses: Direct face-to-face contact (direct sales) will continue to be
our primary strategy for this market segment. Direct selling will be supplemented by
periodic promotional direct mailings and personalized system upgrade opportunities.
 Corporate-Tech'i: This segment will be handled by direct contact and relationship
building only. We will make personal presentations to the decision makers in this group,
and stress our service and technical benefits and advantages.
 Government Offices: We will utilize a combination of direct mail and face-to-face
promotional strategies with this segment and the message will be the local service and
technical advantages of IMBTI. We will produce an attractive RFQ/RFP response
package to accompany our submissions.
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MEMBERS OF ASSIGNMENT

NAMES STUDENT NOMBERS

1) KITSO BAIKGAKI………...………………………………….................. (210085681)

2) ITUMELENG SEBEKIDI…………………………………………... (210087307)

3) JOHN NTSHIDI……………………………………………………… (210086157)

4) KOENA TSOANYANE……………………………..……………….. (210043296)

5) HEIN STALLENBERG………………………..…………………….. (209046996)

6) THEMBA HADEBE………………..………………………………… (209065001)

7) RAYMOND MDABULI………..…………………………………….. (210059893)