Arab Open University

Tutor Marked Assignment (TMA) – PT3 Form

Academic Year 2018-2019 Semester: Fall

Branch: Antelias Program: management
Course Title: Entrepreneurship and small business management Course Code: BUS115
Student Names: Students ID’s:
Rafah abdo 151292
Petra eid 140137
Diana abi fadel 160855
Maria saade 160596

Section Number: Tutor Name:

Total Mark: Awarded Mark:

Mark details
Questions Business Plan Presentation Q3 Q4 Total
Weight 50 50 100
Allocated Marks
Marks

Criteria Presentation Referencing Word Count E-Library Total

Up to 5 5 5 5 20
Marks deduction
Marks

100 Student’s Total Mark /50

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B. Penalties for plagiarism ranges from failure in the TMA to expulsion from the university.

Declaration: I hereby declare that the submitted TMA is my own work and I have not copied any other person’s
work or plagiarized in any other form as specified above.
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Tutor Name: Tutor Signature: Date returned:

 aou
Faculty of Business Administration
buss: Business Plan Project
wisebuy

Prepared by Diana Abifadel

Petra Eid
Rafah Abdo
Marie saade
Table of contents

- Executive Summary………………………………………………………………………….3
 Introduction………………………...……………………………...…………...….…..3
 Mission…………………………………..…………………………………………….3
 Objectives…………………………..……………………………………………....….3
 Keys to Success…………………….………………………………………………….3
- Company Description………………………………………………………………………..4
 Company Ownership…………………………………………………………………..4
 Products and Services…………………………………………...……………………..4
 Current Status…………………………………………………………..….…………..5
 Legal Status………………………………………………………….………….……..5
 Selecting the name for a Business……………………………………………………..6
o Primary consideration in naming Business……………………………..……………..6
o Legal Issues………………………………………………………………………..…..6
-Market Analysis………………………………………………………………………………6
 Market segmentation and Target Market selection…………………………………...7
 Competitor Analysis………………………………………………………………….7
 Estimate of annual sales and Market share……………………………………………8

-Marketing Plan………………………………………………………………………………8
 Overall Marketing Strategy…………………………………………………………..8
 Pricing Strategy………………………………………………………………………9
 Promotions Mix………………………………………………………………………9
 Distribution channels…………………………………………………………………10
 SWOT analysis……………………………………………………………………….10
-Operations Plan……………………………………………………………………………...18

 Operations Model and Procedure…………………………………………………....18

  Business Location……………………………………………………………………19
 Facilities and Equipment………………………………………………………….....19
 Operations Strategy and Plans……………………………………………………….20
-Financial Projections………………………………………………………………………..21
 Source and Use of Funds Statement……………………………………….……...…21
 Projected Balance Sheet……………………………………………………………..22
 Projected Cash Flow…………………………………………………………………23
 Break-even Analysis…………………………………………………………………23
-Management Team and Company Structure………………………………………………..24
 Management Team…………………………………………………………………..24
 Skill Profile…………………………………………………………………………..25
 Management Team Compensation…………………………………………………..25
 Common Mistakes to avoid………………………………………………………….26
 Company Structure…………………………………………………………………………27

Executive Summary
Introduction:

Every person has difficulties to find the right choice with best quality, less time and money! We
provide an online website where you can find everything you need for your home while saving
time and money with just a few clicks.

Co-founders are Diana Abifadel, RafahAbdo and PetraEid, Marie ssade.

Mission:

Our mission is to run a profitable business by providing electrical appliance, furniture and
accessories for decorating the house.

Objectives:

 To provide a variety of product with better price

 Time and energy saving
 To become the leader in the online shopping
 To build sustainable relations with customers
 To increase profits by 10% to 20% each year
 To start online selling directly

Keys to success:

 Innovative product
 High quality product
 Affordable product for different segments
  Extensive marketing campaign
 Good service and good relationship with customers

Company Description
Company Ownership:

The co-founders of the company are Diana AbiFadelPetraEid , RafahAbdoand Marie Saade.

Petra Eid has an experience for 6 years in the field of marketing so she will be responsible of
doing all the marketing campaign and launching the product in the market.

RafahAbdo has an experience in sales for more than 3years inkhoury home and other places sohe
will be responsible of reviewing and analyzing all the sales and after sales results.

Diana Abi Fadel has an experience incall center and customer service for more than 5 years so
she will be responsible for customer support and delivery of the products in time andmaintain a
good customer relation.

Marie Saade Has an experience in IT and accounting department for more than 2 years.

Product and Services:

Our productsselection is:

 House furniture
 Bathroom accessories
 Kitchen Accessories and essentials
 Electrical appliances
 Home lightning
 Home decoration

We will offer a wide range of products with different quality and prices to satisfy all types of
customers.

We will be the only company that can help people to find everything they need from a single
website.

Current Status:

The following milestones have been completed:

 Feasibility analysis
 Executive summary
 Company description
 Market analysis
  A 100% approval from potential customers on buying our product
 Fourmember management team
 Funding available from co-founders

Milestones to be completed:

 Full business plan

 Buy equipment
 Online selling
 Expand delivery area

Legal Status:

“WiseBuy”isalimitedliabilitycompany. Its management team owns it.

Selecting the name of the business:

 Primary consideration of naming the business

The primary name of our business “WiseBuy” is to deliver the main concept of buying wisely
meaning you can spend less time and money to buy and deliver a product.That’s why the name
was a combination between our product and the solution we provided.

 Legal issues

We have done researches online to be sure that our business name was not trademarked by any
other business and product in the world.

That’s why we have done all the process to register this name and trademark it to control the use
of our brand by others and capturing the value of what we created.

Market Analysis
The market analysis breaks the industry into segments and zeroes in the specific segment that the
firm will tackle.
It focuses on describing a firm’s target market, customers, and competitors; how it will complete
in the marketplace; and potential sales and market shares.

Market selection:

First of all we are going to provide product from different companies as abedaltahan, khoury
home and many more and we are going to ship product from china. And the reason why we
chosen Chinese companies is because we founded those resources at a lower price and with the
best quality, so in that way we will be able to reduce the cost.
The market that we will tackle to sell our product willbe young working families, young adults,
student that lives in “foyer” in fact every person in the world since we all know that we like to
have many choice before choosing the right product

Market Segmentation:

Market segmentation is the process of dividing a market into distinct subsets that behave in the
same way or have similar needs.

Demographic segmentation:
People starting from the age of 16to 65 years old with no specific social class or revenue because
our product is affordable to all social classes.

Geographic segmentation:
Since it is an online market, we can target all places in Lebanon and then we can start for
shipping to outside

Market Trends:

People are more and more willing to spend their money on a new trusted website where they can
find good qualityproducts with lesser price that facilitate their life and this is exactly what our
“WiseBuy” website is about.

Competitor analysis:

There are many competitors like “amazon” ,“ ebay“ ,“Alibaba”…those online seller will be a
threat for us.

So as there Is high competition, we should have the best quality, price and customer support

Estimate of annual market share:

We will control 20% of market shares since there is many competitors.

And we will expect to control more after many years

We will try to expand our business first by reaching all the Lebanese market, than by distributing
it abroad .the site will contain all the information needed for customers.

Target market

People aged between 16 and 18 years old will represent 19% of the share market
People aged between 18 and 55 years old will represent 60% of the share market
People aged between 55 and 65 years old will represent 21% of the share market
The Total sales expected from different segments:
working force: 40%
college student:25%
school students:19%
others: 16%
Key success factors:

“Wise Buy” will be reachable by the majority of the population since nowadays we all use
internet and social media, and after few months everyone will see us and see what we offer.

We will focus on multiple marketing channels as email marketing, TV, radio, social media,
catalog …

We will secure our shipment

In addition, it will be provided at a low price that will allow people with different income levels,
starting from the low one, to buy it with no hesitation.

This website will guaranty our customers’ satisfaction especially that its usage is too simple,
product are many and with different brands and price.
We will also allow them to contact us through online and take all the information needed about
the products, and can even leave their feedbacks in case they have any comment.

Marketing Plan
Overall marketing strategy:

The overall objective of this website marketing strategy is to let people between 16 and 65 years
old find the product they need for their home while saving money and energy.

Our marketing strategy seeks to increase the satisfaction of the customer that is the degree to
which our customer’s expectations

A total customer satisfaction benefits us in several ways: 

 Increase repeat purchase 

 Increase the dollar value of purchase 

 Ease of cash flow etc…

Customer value and satisfaction are key building blocks for developing and managing customer
relationships. 

Pricing strategy:

“wise Buy” website will adopt a policy of value-based pricing.

The price is determined by estimating what consumers are willing to pay for these products.
What a customer is willing to pay is determined by the perceived value of the product and by the
number of choices available in the market.

Positioning:

We want our product to be perceived positively as an innovative needed product by convincing

costumers through marketing about its importance and quality.

Our strategy is to give customers more for less deal which means good quality and satisfaction at
low prices.   

This will create brand loyalty because when people appreciate the quality of our product it
provides valuable benefits; they will usually continue to be loyal consumers.
In addition, satisfied customers often provide crucial word-of-mouth advertising to family,
friends, and co-workers.

Promotion:

In order to make our product well known we should do some promotions such as:

 Billboards
 Flyers
 Social media (Facebook, Twitter, emails…)
 Graphic image: our product will be decorated with special designs that will attract
customers.

Pricing:

Prices will be fair enough. It is an average price according to our costs.

Thus, customers will not care much about spending this amount of money
because they are satisfying their needs.
– Advertising issues will be discussed with each company according to the size of
the promotion.

.Distribution Channel:

We will deliver our product in all over Lebanon.

SWOT analysis: It evaluates the strengths, weaknesses, opportunities, and threats facing

Positive Factors Negative Factors

Internal STRENGTHS WEAKNESSES

Factors – It targets everyone (Mass  Lebanese are not used to this

market) kind of website
– Save time and money  Lack of trust
– Price, value, quality (average
price, affordable to all)

External OPPORTUNITIES THREATS

Factors – Cash on delivery with no fees  Many competitors

 Our product is a need in the
market

Operations Plan

Operations Model and Procedure

1-Introduction:

It s a website where u can find plenty of home product

2-General Approach to Operations:

The biggest challenge in operating our company is that people would really appreciate the idea
and the website that we created.

3-Backstage:

 Staff selection:

The staff and employees will be carefully selected along with the skills they need to
perform their job.

 Equipment:

1. Offices with personal computers

 2. Call center

3. Warehouse storage specialized for furniture.

4. Delivery bikes and vans

5. Accounting software

4-Front Stage:

 Operating hours: it will be available 24/7

Business location:

 Our office will be located at “Achrafieh”

Facilities and Equipment:

 We will purchase 10 motorcycle and 5 vans to transport our products.

 We will be having 2 MIS system; one for the inventory and sales and the other for the
receiving (In/out) products.

Operating strategy and plans

Relations between business strategy and operations strategy:

“WiseBuy”is a website business strategy and competitive advantages hinge on two things :

 Meeting the needs of our clientele from 16 to 65 years old

 Reaching our annual sales target.

Our objective is to fully understand the needs of our clientele and to serve them with a new
product and creative ideas in an efficient and caring manner.

financial Projections

A- S
o
u
r
c
e
s
 a
n
d
u
s
e
o
f
f
u
n
d
s
st
at
e
m
e
n
t

Capital investments

Furniture and fixtures

Computer equipment
Other equipment
Vehicles

Operating expenses

Legal, accounting and professional services

Advertising and promotions
Deposits for utilities
Licenses and permits
Prepaid insurance
 Lease payments
Salary and wages
Payroll taxes
Travel
Signs
Tools and supplies
Starting inventory
Cash (working capital)
Other expense: electricity

Total startup cash needed=

The
approxi
mate
startup
cash
needed
will be
80000

We will
finance
our start-
up
expenses
and other
expenses
from our
own
capital:

80000/4
=20
000$
paid by
each
owner

B- Projected Balance sheet

2019 2020 2021

Assets
Current Assets

Cash and Cash 50000$ 75000$ 100000$

Equivalents
Accounts 18000$ 20000$ 25000$
Receivable
Inventory 11500$ 15000$ 20000$
Total Current 79500$ 110000$ 145000$
Assets
Fixed Assets

Equipment 5500$ 4000$ 4000$

Vehicles 20000 18000$ 10000$

Furniture 3000$ 2400$ 2000$
Total Fixed Assets 28500 15400$ 11800$
Total Assets 108000 125400$ 156800$

Liabilities
Current Liabilities
Accounts Payable 9000$ 18000$ 30000$
Lon-term
Liabilities
Long-term notes 19000$ 27400$ 46800$
payable
Total Liabilities 28000$ 45400$ 76800$
Equity 80000$ 80000$ 80000$
Total Liabilities 108000$ 125400$ 156800$
and Equity

C- Projected Cash Flow

D-

2019 2020 2021

Starting cash 15000$ 30000 60000$

$
Receipts
Sales 40000$ 55000 85000
Total Receipts 40000 55000 85000
Disbursements(payment)
Rent 1200$ 1200$ 1200$
Electricity 1500$ 1500$ 1500$
Promotion 15000$ 10000$ 10000$
Taxes 3000$ 3000$ 3000$
Fuel 5000$ 6000$ 9000$
Total Disbursements 25700$ 21700$ 24700$

Net Cash-flow 14300$ 33300$ 60000$

Management Team And Company Structure

“WiseBuy” crew work and focus on team work of the founders and on the professionalism and
expertise of each member.

.Management Team:

Petra Eid, Co-founder, HRmanager, Age 25.

 Responsible of the financial and HR department, she has an experience for 5 years
in the field at Fattal Group Lebanon.

Diana Abi Fadel, Co-founder, Age 23

 Responsible of the marketing department at “WiseBuy”.

 She has an experience for 2 years in the field of marketing and publicity at matrix
gym

Rafah Abdo, Co-founder, National Sales Manager, Age 23

  Responsible for the sales Department, he has an experience for 4 yearsinkhoury
home.

Marie Saade, Co-founder, Accounting Manager, Age 22

 Responsible for the accounting department

1- Skill Profile:

Executive Finance Marketing sales Transpo Informatio Hr Acc

Leadershi rtation n System ounti
p ng

Petra X X X

Diana X X

Rafah X

Marie X X

*We Don’t Have Any Gaps and No Vacant Position Is Available At The Moment.

2- Management team and Compensation:

Name Position Percentage Investment

ownership

Petra eid Resp. of the 25 20000$

finance and HR
department$

Diana abifadel Resp. of the 25 20000$

 marketing
department and
transportation

Rafaa abdo Resp.of the sales 25 20000$

and after sales
department

Marie saade Resp.of 25 20000$

Accounting , IT

*As For The Compensation The Net Profit Will Be Divided Into Four Equal Payments.

3 Company Structure: