Business Plan

Vodafone operates though out the world, the countries are Albania, Australia, Belgium, Denmark, Egypt, Fiji, Finland, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Kuwait, Malta, Netherlands, New Zealand, Poland, Portugal, Romania, South Africa, Spain Sweden, Uganda, United Kingdom and United States. Vodafone is the UK’s leading network operator with the highest number of users. The UK’s mobile market is an oligopoly market.

The company originally concentrated on the business market but now concentrates more on the commercial market and this is were we can compare them to other mobile network providers such as O2, Orange, and T-Mobile. Vodafone markets its products to a wide range of people and 71% of its users are aged between 15 and 44. Vodafone realised that most people wanted a non-contractual mobile service and so released the UK’s first Pay As You Talk billing structure.

This is where you purchase a telephone for a one off price and then top up your calling credit with vouchers that can be purchased from many UK high street outlets. The latest variation of the pre-paid package is called “pay as you talk” calls. Vodafone want to concentrate more on the leisure market in recent years and by launching exciting new services such as “pay as you talk” and “pre pay”, they will attract a wider range of customers.

Vodafone has realised that services such as “pay as you talk” and “pre pay”, may not be convenient to users such as the self employed and users with a heavier phone usage. With this in mind, Vodafone claim to have the lowest contract tariff at just 9. 99. With these services combined, they can attract most of the leisure market as they have a service tariff, which suits all needs. Promotion Vodafone advertise heavily on the television, and local, regional and national wide newspapers.

They appear on prime time television and tend to aim their advertisements that appeal to all classes of society. They have a very user-friendly web site and they retail outlets are in most major towns and cities. They have recently launched cinema advertising where they hope to gain an even greater share of the younger market. Target Customers Vodafone is trying to attract consumers in the AB social economic group with both their pre pay and contractual services. Competitive Advantage

Vodafone is the UK’s longest established mobile phone company. They have a good reputation in the mobile industry. They use this to great advantage as a very good tool, as most people decide to choose their mobile on the service a member of their family or a friend are using. As Vodafone already has the most number of users, this market lead should significantly increase. They are investing heavily in new technology and offer the largest service for example, WAP, GPRS, and along with O2, offer both analogue and digital tariffs.

Vodafone have always focused on one vision and that is to be the world’s mobile communications leader – improving lives of the customers, helping organizations, people and communities be more connected in a rapidly improving mobile communications world. Since the company was formed in 1984 Vodafone have always looked to expand their business both internally and externally by using their vision to foresee innovative strategies such as, Vodafone making the first international roaming call via a link up between Vodafone and Telecom Finland.

Vodafone have proved so far that their intentions on being the market leader have been fulfilled. This is due to the company having a set of values that are shared within the organisation. Their set values are that they value their customers, so that the customers are satisfied with their service; they value their employees so that they can develop, retain, promote and reward them; they value their results which makes them focused to be the best in what they do and they value the environment around us so that improvements that have been made must be respected throughout the world.

London Investment Bank are ready to allocate a large amount of resources to launch a RBFT’ Eurobond issuance. We have the best sales forces and a wide network for serving this target. A RBFT’ Eurobond issue will partially cover the scarcity of Romanian securities papers on the market. It will also introduce Romanian Bank for Foreign Trade on international capital markets, this transaction being a benchmark for your future financing from this market. Our mission is to bring your name on the market and for this purpose we will use all possible channels (media, investor group meetings, Bloomberg, conference calls, one-to-one meetings).

We recommend us as the best lead-manager for your future Eurobond issuance and our credentials underline our capabilities in this field. The market analysis for this Eurobond issue reveals that emerging markets continue to remain at the forefront of investors’ interests despite market nervousness over the US dollar’s weakening trend. The EMBI+ index, a broad indicator of performance of the largest and most liquid emerging markets bonds, tightened by over 300bp since January 2003 to its current level of 455bp, the lowest level since May 1998.

The emerging markets assets are trading at historically tight levels relative to US and Western European corporates. In this context we strongly believe that the timing for a RBFT’s Eurobond issuance is perfect for getting the lowest level of costs. If properly managed, the issuance can be oversubscribed and the level of costs can be the lowest for a Romanian corporate Eurobond issue (the narrower spread over Romanian sovereign yield, as a benchmark). Our strategy is to create a large investor base, 70-75% of the Eurobonds being subscribed by European and 25-30% by US offshore accounts.

We will use all communications channels in order to close successfully this transaction, the result of the marketing strategy being vital for successfully launching the Eurobond issue. Before starting a Eurobond issuance process, you should appoint an international rating agency for establishing your rating; in this respect, our rating advisory team is ready to cooperate and support you for getting the rating. London International Bank is ready to work with you on this ambitious project and our credentials recommend us as the best solution for coordinating your Eurobond issue.

DECLARATION OF ORIGINALITY OF WORK: I affirm that the attached work is entirely my own, except where the words or ideas of other writers are specifically acknowledged according to accepted citation conventions. This assignment has not been submitted for any other course at Robert Kennedy College or any other institution. I have revised, edited and proofread this paper. Veronika Olenika, 10/08/2012 CERTIFICATION OF AUTHORSHIP I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and fully disclosed in this paper.

I have also cited any sources (footnotes or endnotes) from which I used data, ideas, theories, or words, whether quotes directly or paraphrased. I further acknowledge that this paper has been prepared by me specifically for this course. Veronika Olenika, 10/08/2012 Midterm examination: Entrepreneurship Word count: 3016 (excluding bibliography, table of contents, appendices, exhibits) Page 1 Table of Contents 1 Executive Summary ………………………………………………………………………………… 4 1. 1 1. 2 1. 3 1. 4 1. 5 1. 2 Service …………………………………………………………………………………………… 4 Business Case ………………………………………………………………………………….. 4 Market Size ……………………………………………………………………………………… 5 Start-up costs ………………………………………………………………………………….. 6 Pay-off …………………………………………………………………………………………… Management Team …………………………………………………………………………….. 7 Business Plan ………………………………………………………………………………………… 8 2. 1 2. 2 2. 3 2. 4 2. 5 2. 6 Overview ………………………………………………………………………………………… 8 Business Model …………………………………………………………………………………. 8 Market Analysis ………………………………………………………………………………… Financial Statements ………………………………………………………………………… 11 General Strategy (Development Plan) ……………………………………………………. 13 Competitive Advantage ……………………………………………………………………… 15 Appendix 1 – Management Team ……………………………………………………………………. 16 Exhibits……………………………………………………………………………………………………. 8 Bibliography ……………………………………………………………………………………………… 24 Exhibits’ List Table 1 Forecasted Income Statements ………………………………………………………………. 5 Table 2 Calculated Market Share ………………………………………………………………………. 6 Table 3 Survey Participants’ per Age Group ……………………………………………………….. 10 Table 4 Survey Results ………………………………………………………………………………… 0 Page 2 Table 5 Projected 3 years Income Statement ……………………………………………………… 11 Table 6 Projected 3 Years Balance Sheet …………………………………………………………… 12 Table 7 Projected 3 years Cash Flow ………………………………………………………………… 12 Figure 1 Survey Results …………………………………………………………………………………. 4 Figure 2 Forecasted break-even chart ………………………………………………………………… Figure 3 Start-up Roadmap …………………………………………………………………………… 14 Figure 4 Calculated NPV for the start-up …………………………………………………………… 18 Figure 5 Projected Monthly Financial Statement of Accounts for 2012/2013 ………………… 18 Figure 6 Projected Monthly Financial Statement of Accounts for 2014 ……………………….. 19 Figure 7 Projected Monthly Financial Statement of Accounts for 2015 ……………………….. 0 Figure 8 Projected Monthly Income Statement for 2013 ………………………………………… 20 Figure 9 Projected Monthly Income Statement for 2014 ………………………………………… 21 Figure 10 Projected Monthly Income Statement for 2015 ………………………………………. 21 Figure 11 Projected Monthly Cash Flow 2012/2013 ………………………………………………. 22 Figure 12 Projected Monthly Cash Flow 2014 ……………………………………………………… 2 Figure 13 Projected Monthly Cash Flow 2015 ……………………………………………………… 23 Page 3 1 Executive Summary 1. 1 Service ‘e-Individual Language Course’ is a new service for the market in my country. This services will help people who are willing to learn foreign languages (Russian, English, German, French, Italian, Spanish, Norwegian, Finnish and other languages) to accomplish this directly from their offices and/or homes with no need to go to the special course place and to spend time for the way to and from the course venue. 1. 2 Business Case

Analysis of the market has revealed that the need in foreign languages knowledge is growing constantly. This is required for business expansion to other markets and in order to keep the competitive advantage of already existing businesses. It became obvious to the different people that foreign language knowledge is required to seize the lucrative opportunities. There is a plenty of proposals on the market for foreign language courses, but you have to arrive to a certain place – Language course office: 1. to join the group and the time of the course which is not always comfortable 2. o have an individual language course session for the price that is higher than for group training According to the recent research 81% of people are willing to learn the selected language individually and not within the group, however they are constrained with the price of the individual language session. The same research revealed that 90% of the aforementioned people are ready to take an advantage of distance learning in order to save their time and to have the flexibility for other tasks and duties they are obliged to fulfill.

Besides that, they are ready to pay slightly higher price that is defined for the group trainings and slightly lower price that is defined for the individual trainings. Figure 1 Survey Results Would you take a disctance learning course? 6% 1% 3% Would you select the individual language course if this would cost 2/3 from the current price? 1% 5% 13% 90% 81% Rather Yes Yes Rather No No Rather Yes Yes Rather No No Page 4

Our proposal: – To provide individual language course sessions at two thirds of the currently existing price on the market (15 EUR vs. 20 EUR excl. VAT) This potentially attracts to us 30% of currently lost market and also 50% of the people who are willing to change their educational sessions from group to individual approach. The forecasted Income statement is presented for your reference below, please refer to the 2. 4 Financial Statements Chapter for details. Table 1 Forecasted Income Statements

Income Statement for years ended Dec-12 Sales (50% of average sales is expected in the first operational year) Electricity Utilities Internet Rent Advertisment Salaries (teachers) Salaries (managing director/ HR manager) Salary (Assistant) Salary (Accountant) Depreciation (equipment) Profit before Interset Interest (2%) Profit befor Tax Taxes (35%) Profit/Loss after Tax Dec-13 Dec-14 Dec-15 € € € € € € (10,000. 00) € € € € € € (10,000. 00) € € (10,000. 00) € € (10,000. 00) € € € € € € € € € € € € € € € € 114,660. 00 (330. 00) (330. 0) (240. 00) (6,000. 00) (3,000. 00) (61,600. 00) (5,500. 00) (3,850. 00) (6,600. 00) (4,620. 00) 22,590. 00 (1,242. 00) 21,348. 00 (32,844. 00) (11,496. 00) € € € € € € € € € € € € € € € € 176,400. 00 (360. 00) (360. 00) (240. 00) (6,000. 00) (1,200. 00) (67,200. 00) (12,000. 00) (4,200. 00) (7,200. 00) (4,620. 00) 73,020. 00 (1,242. 00) 71,778. 00 (32,844. 00) 38,934. 00 € 176,400. 00 € (360. 00) € (360. 00) € (240. 00) € (6,000. 00) € (1,200. 00) € (67,200. 00) € (12,000. 00) € (4,200. 00) € (7,200. 00) € (4,620. 00) € 73,020. 0 € (621. 00) € 72,399. 00 € (32,844. 00) € 39,555. 00 1. 3 Market Size The potential for the market is huge for the service proposed, due to the fact that we are not constrained with students and teachers physical presence at one place, these constraints are resolved by means of world wide web internet access and social networking applications like Skype™ and others. However in order to start with a prototype for our service we are aiming to the audience of around 635000 inhabitants of our country who fall within the 19-60 age group. 0% of this amount has to know at least two languages due to the geographical position of the country and the services/products this country is focusing on, thus our audience is 508000 people. Let’s assume that according to the statistics only 3rd part of them has their own PCs Workstations, Notebooks or iPads, thus our audience now is limited to 152400 people. Page 5 These people will come from different areas, but due to the fact that the main service areas for our country are tourism, woods and IT services we do have a good opportunity for the service proposed.

With the planned teachers’ capacity we will cover 7% (refer to Calculated Market Share) of the market per year with assumption that every customer will stay with us at least for one year. Thus, we have a very good outlook for our service extension. Table 2 Calculated Market Share teachers working days sessions a day capacity for one year* calculated market size % of the available market 8 230 6 11040 152400 7% 1. 4 Start-up costs Start-up costs for the service are 62’100 EUR to be prepared to start the business on a high quality level.

The start-up costs include but are not limited to: – Company legal authorization – Office re-engineering/adaptation costs – Language programs’ adaptation for on-line sessions – Internet connection set-up – Office arrangements (furniture, stationery, etc. ) – Advertisement expenses The start-up investment will be covered by National Bank with Interest rate 2% and for 2 years deferred payment for the borrowed amount. 1. 5 Pay-off We are planning to break-even in 2 years and 10 months.

The assumptions are as follows: – First operational year: Jan-Jun’13 in average 50% of planned sales are realized – First operational year: Jul-Dec’13 in average 80% of planned sales are realized – Second and subsequent operational years are operated on 100% of the planned sales level. Page 6 Figure 2 Forecasted break-even chart EUR, K 90 60 Potential Reward 30 Break-even 0 t Dec’13 Dec’14 Dec’15 Dec’16 Dec’17 -30 -60 Depth of hole NPV for the project covering 5 years forecast is equal 31’449. 0 EUR (please refer to the Figure 4 Calculated NPV for the start-up). 1. 6 Management Team The Managing Director and HR manager is a Project Management Professional since 2009 (PMI™) with extensive experience in IT company management. She is a second year ‘General MBA’ student at Robert Kennedy College, Switzerland. The Accountant is a professional accountant, with an extensive experience in accounting for more than 10 years, operating within the companies up to 250 employees.

The Team Lead of the teachers’ group – English language teacher, graduate of the State University with extensive experience of educational programs development and courses conduction. (Please refer to the Appendix 1 – Management Team for detailed team members’ information) Page 7 2 Business Plan 2. 1 Overview Our ‘e-Individual Language Course’ service will tackle at least two issues: 1. Provides an opportunity to learn the foreign language individually at a lower price (2/3 from the current market price) 2.

Provides flexibility in learning sessions due to individual approach to each and every customer we have. At the moment we are planning to have nine [9] languages in our service, these are: – English – German – French – Latvian – Russian – Italian – Spanish – Norwegian – Finnish The languages listed above are of a great interest for our inhabitants due to the reason that the main business focus of the country is Tourism. Another driver to learn the Scandinavian languages is an opportunity to find jobs in neighbor countries and to raise the level of living.

One individual language session shall last for 60 minutes, i. e. one astronomic hour. The desired time of the session is agreed in advance with the teacher. The session itself is run via Skype™ hence all the required files could be shared either thru the communication tool or via e-mail in advance. The communication tool, that we are planning to use is designed for video transmission, thus the teacher and the student will see and hear each other like they are in one room. 2. 2 Business Model

The value proposition of the ‘e-Individual Language Course’ service is to provide our customers the high quality language course at lower prices than currently exists and schedule the sessions independently from student physical presence capabilities. Every language teacher has his/her own schedule, which has to be filled with six ‘one hour’ sessions in a timeframe from 8:00 until 22:00. Having such flexibility in a time table let both the student and the teacher to find the most appropriate time slot for the studies.

Moreover, the studies’ sessions must not be scheduled always to one and the same timeslot, but could vary depending on the student availability. Another important thing is that student may select a number of sessions per week/month, so his/her studies will proceed in the most efficient way. Our teachers will provide a recommendation on the frequency of the language sessions/ lessons, however the final decision will always stay with the student. Page 8 An office space is a savings item for our start-up.

We do not need to rent a big office and setup separate rooms for the individual or group language sessions, like our competitors do, due to the fact that teacher’s and student’s physical presence is required while the session. We will limit our office space to three rooms and our teachers will be placed in a so called ‘boxes’ in order they will be able to conduct the language sessions efficiently with their students and would not disturb their colleagues, working at the same time. In addition, for early mornings’ and late evenings’ sessions it is allowed to conduct these from teachers’ homes.

The aforementioned saving is quantifiable. We will require 55 m 2 of the office space for all our employees, however if the physical presence would be required for students and their teachers, we would need at least seven 10 m2 spaces, meaning 90 m2 together with MD/HR and Accountant rooms. The price for the chosen office space is 10 EUR per square meter per month, when we are talking about the distance learning model. When the physical presence is required we are talking about the language office preferably in the city centre with much higher prices – 30 EUR per square meter per month.

Thus there is an overt saving of 2150 EUR a month, 25’800 EUR a year. We do not consider our growth at the current moment. However, we do see the potential in extension of the languages’ set and the geographical extension, covering neighbor countries, due to the fact that we have a good knowledge of their language, because of our joint history during a long period of time (from 1917 till 1990). 2. 3 Market Analysis The respective market analysis has been performed. Our analysis has revealed a good potential for our opportunity of ‘e-Learning individual Course’ service.

There are no language course companies with the similar proposals on the market at the moment, thus we are in a good position with our start-up from the market niche point of view. Our country population we are interested in is limited to 635000 inhabitants form the 19-60 years age group. 80% of this amount has to know at least two languages due to geographical position of the country and the services/products this country is focusing on, thus our audience is 508000 people.

Let’s assume that according to the statistics only every 3rd has their own PCs Workstations, Notebooks or iPads, with respective internet connection and video facilities, thus our audience now is limited to 152400 people. These people arise from different areas, but due to the fact that the main service areas for our country are tourism, woods and IT services we do have a good opportunity for the service proposed. In order to confirm our assumption, the small survey has been held. The following questions were addressed: 1. Are you planning to take a language course within next year? 2.

Do you need this for your professional growth/ opportunities? Page 9 3. Would you select the individual language course if this would cost 2/3 from the current price? 1 4. Would you take a distance learning language course? 2 5. If Yes, for Nr. 4: Would this save significantly your time due to unnecessary travel? 3 6. If Yes, for Nr. 4: Would this save significantly your time due to flexible individual schedule? 4 The number of people participating in the Survey was 650 from different age groups (19-60 years). Here is the breakdown of the participants per age-group: Table 3 Survey Participants’ per Age Group

Age group Number per age group % per age group 19-25 225 35% 26-40 325 50% 40-60 100 15% You may look into the survey results below: Table 4 Survey Results Nr. Questions / Answers Rather Yes Yes Are you planning to take a language course 1 within the next year? 200 Do you need this for your proffesional growth / 2 opportunities? * 150 Would you select the individual language course if this would cost 2/3 from the current 3 price? * 80 Would you take a distance learning language 4 course? * 20 If Yes, for Nr. 4: Would this save significantly 5 your time due to unnecessary travel? * If Yes, for Nr. 4: Would this save significantly your time due to flexible individual 6 schedule? ** Rather No No 350 420 80 40 20 20 Rather Yes (%) 31% 24% Yes (%) 54% 67% Rather No (%) 12% 6% No (%) 3% 3% 510 570 10 35 30 5 13% 3% 81% 90% 2% 6% 5% 1% 300 236 44 10 51% 40% 7% 2% 120 400 50 20 20% 68% 8% 3% As you may see 85% of the survey participants are planning to take a language course within one year and 94% from them are ready to pay 2/3 of the price that currently is set for the individual lessons on the market.

Moreover, our assumption that flexible schedule and time savings due to travel is also important to the respondents has been confirmed – 91% and 88% accordingly. The survey results above are very optimistic for our start-up, however in order to attract these people to our service we need to launch the respective advertisement campaign. Our focus for the advertisement campaign is as follows: 1 2 3 4 100% constitute the answers: ‘Rather Yes’, ‘Yes’, ‘Rather No’ 100% constitute the answers: ‘Rather Yes’, ‘Yes’, ‘Rather No’ 100% constitute the answers: ‘Rather Yes’, ‘Yes’ 100% constitute the answers: ‘Rather Yes’, ‘Yes’ Page 10

Adds within the public transportation, covering 35% of our potential customers (1625 age group) – Adds on radio/TV/Internet (social networks, e-mails), covering the 50% of our potential customers’ (26-40 years) – Post notes, cards, etc. delivered to the mail boxes, covering the rest 15% of our potential customers’ (40-60 years) We are planning to continue the advertisement of our service further in 2013 – 2015 depending on the outcome of the first advertisement phase, selecting one or two most effective advertisement channels. – 2. Financial Statements The following projected financial statements have been developed for the ‘e-Individual Language Course’ service, covering 3 years projection of business operations: Projected Financial Statements of Accounts (please refer to Figures 4 to 6 in Exhibits section, page 18 for monthly breakdown) Projected Income Statements (please refer to Figures 7 to 9 in Exhibits section, page 20 for monthly breakdown) Projected Cash flows (please refer to Figures 10 to 11 in Exhibits section, page 22 for monthly breakdown. – –

The yearly summary for all the financial statements mentioned above could be found here: Table 5 Projected 3 years Income Statement Sales Electricity Utilities Internet Rent Advertisment Salaries (teachers) Salaries (managing director/ HR manager) Salary (Assistant) Salary (Accountant) Depreciation (equipment) Profit before Interset Interest (2%) Profit befor Tax Taxes (35%) Profit/Loss after Tax € € € € € € € € € € € € € € € € Dec-12 (10,000. 00) (10,000. 00) (10,000. 00) (10,000. 00) € € € € € € € € € € € € € € € € Dec-13 114,660. 00 (330. 0) (330. 00) (240. 00) (6,000. 00) (3,000. 00) (61,600. 00) (5,500. 00) (3,850. 00) (6,600. 00) (4,620. 00) 22,590. 00 (1,242. 00) 21,348. 00 (32,844. 00) (11,496. 00) € € € € € € € € € € € € € € € € Dec-14 176,400. 00 (360. 00) (360. 00) (240. 00) (6,000. 00) (1,200. 00) (67,200. 00) (12,000. 00) (4,200. 00) (7,200. 00) (4,620. 00) 73,020. 00 (1,242. 00) 71,778. 00 (32,844. 00) 38,934. 00 € € € € € € € € € € € € € € € € Dec-15 176,400. 00 (360. 00) (360. 00) (240. 00) (6,000. 00) (1,200. 00) (67,200. 00) (12,000. 00) (4,200. 00) (7,200. 00) (4,620. 0) 73,020. 00 (621. 00) 72,399. 00 (32,844. 00) 39,555. 00 Page 11 Table 6 Projected 3 Years Balance Sheet Balance sheet as at 31-Dec-12 ASSETS Non-current assests Computers, Cofee-machine, etc Accumulated Depreciation (straight-even, 5 years) Language Programs Current assets Trade receivables Cash at bank and in hand Total Assets EQUITY AND LIABILITIES Equity Retained Earnings (Profit/Loss) Non-current liabilities Current Liabilities Borrowings (all bank overdraft) Trade payables Total Equity and liabilities Table 7 Projected 3 years Cash Flow 1-Dec-13 31-Dec-14 31-Dec-15 € € € € € € € € € € € € € € € 23,100. 00 € 6,300. 00 29,400. 00 21,800. 00 51,200. 00 (10,000. 00) € € € € € € 23,100. 00 € (4,620. 00) 6,300. 00 24,780. 00 14,924. 00 € € € € € € € € € € € € € € 23,100. 00 € (9,240. 00) 6,300. 00 20,160. 00 33,478. 00 € € € € € € 23,100. 00 (13,860. 00) 6,300. 00 15,540. 00 41,453. 00 56,993. 00 € 39,704. 00 € € € (21,496. 00) 61,200. 00 – 53,638. 00 € 17,438. 00 € 36,200. 00 € € € € 56,993. 00 56,993. 00 € € 61,200. 00 € € 51,200. 00 € 39,704. 00 € 3,638. 00 € Cash flows statement for the year ended Operating profit Depreciation costs Interest payable Cash generated from operations Interest paid Taxation paid Net cash from operation activities Cash flows from investing activities Intangible assets (additions) Net cash used in investing activities Cash flows from financing activities Re-payment of Loan notes Net cash outflow from financing activities Net decrease in cash and cash equivalents Reconciliation 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 € (10,000. 0) € 21,348. 00 € 71,778. 00 € 72,399. 00 € € 4,620. 00 € 4,620. 00 € 4,620. 00 € € 1,242. 00 € 1,242. 00 € 621. 00 € (10,000. 00) € 27,210. 00 € 77,640. 00 € 77,640. 00 € € (1,242. 00) € (1,242. 00) € (621. 00) € € (32,844. 00) € (32,844. 00) € (32,844. 00) € (10,000. 00) € (6,876. 00) € 43,554. 00 € 44,175. 00 € € € € € € € € € (10,000. 00) € (6,876. 00) € 43,554. 00 € 44,175. 00 € € € € € € € (25,000. 00) € (36,200. 00) € € € (25,000. 00) € (36,200. 00) € (10,000. 00) € (6,876. 00) € 18,554. 00 € 7,975. 0 € (6,876. 00) € 18,554. 00 € 7,975. 00 Page 12 All the above financial statements have been calculated based on the following assumptions: The number of personal (11 people) requires at least 5 m2 of the working space according to our country’s labor law, thus the rent was calculated for 55 m 2 office space. Notebooks with headsets and respective software will be required for 10 out of 11 employees, due to the fact that the Managing Director/HR Manager will use her personal notebook during the start-up activities.

The language programs’ adaptation costs will be spent and paid out during the preparation phase to the respective teachers in December’2012 The advertisement campaign will be launched in December 2012 to attract as many potential students as possible in order to fulfill our assumption for the teachers’ load for the first half of the operational year 2013 (50% respectively). – – – Considering all of the above our goal is to reach a break-even point in 2 years 10 months and to cover fully the initial investment that was assigned by the National Bank to the company within the same period of time.

The Return on Invested Capital5 (http://www. accountingscholar. com/roic. html, accessed on 8-Aug-2012) for years 2014 and 2015 is 64% and 65% accordingly, what is really an impressive number for the service provider company. 2. 5 General Strategy (Development Plan) It is essential to define the major milestones for our start-up. At this major milestones we will cross check our actual Financial Statements with the forecasted ones in order to understand whether we are moving forward as planned or some adjustments are required. 5 ROCI=After Tax Net Income / Capital Invested Page 13

Figure 3 Start-up Roadmap 1 Business Plan is Ready 2 The funding is received 3 • Office is available • Language Programs are adapted • Advertisements are designed and launched 4 •50% teachers’ capacity workload is reached •2013 H1 actuals are as forecasted 5 •80% teachers’ capacity workload is reached •2013 H2 actuals are as forecasted 6 2014 and beyond: actuals are as forecasted Milestone 1 – BP is ready: No doubts the current business plan is a prototype for one more detailed, however it gives the main idea of the opportunity, start-up and its potential development.

Milestone 2 – The funding for the start-up is available. This is one of the milestones when the start-up really has a chance to grow into a business. The management team of the start-up has to use the available funds according their initial plan to reach their objectives. Of course, some adjustments could be required while moving to further milestones, but this one is a confirmation of the sustainability of your business by the investors/bank. Milestone 3 – Here we have to have a re-constructed office space according to the size we are planning to have, with all the facilities in place and working.

The facilities in our case are of utmost importance, due to the fact that our ‘e-Learning Language Course’ requires very good internet connection (100 Mbs) and video transmission. The furniture and ‘office-boxes’ for our teachers have to be ready as well. In parallel, to reach Milestone 3 we have to adapt the standard ‘face-to-face’ language programs to the distant-learning programs. The last but not the least the advertisement has to be ready for launch via 3 advertisement channels mentioned in 2. 3 Market Analysis Chapter. Milestone 4 – Now we are in our first operational year.

The responsibility of the managing director with the start-up accountant is to monitor closely the sales, expenses, teachers’ workload and respective financial statements. This is one of the major milestones in a way that if the expected sales are not as high as we have planned or the forecasted expenses Page 14 are higher and increase our operational losses we will have to make a weighted decision whether we have to stay on the market or close the start-up or to change our business model. Milestone 5 – Is another important milestone that is planned to be reached by the end of the first operational year of the start-up.

The same rules as for Milestone 4 are applied here. Milestone 6 – Another check point for the start-up operations. We may consider our services extension and geographical expansion at this milestone in case we are proceeding according to the forecasted financial statements. As you may see from the top, our strategy is pretty simple and straightforward. We do see the opportunity for the ‘e-Learning Language Course’ service – the most difficult thing would be really to accomplish all the planned milestones one by one making the right decisions at every milestone. “Milestone reviews are pointless unless managers use them for making decisions.

The decisions help planners determine what they can do to ensure success or reduce the cost of failure. ” (Block and MacMillan, Milestones for Successful Venture Planning, 1998, Harvard Business Review, p. 132) 2. 6 Competitive Advantage At the moment there are no companies on the market, rendering the similar services, thus we are in a very good competitive position at the moment. However, due to the fact that this service could not be patented, we do expect that other companies from the educational branch will start to propose the same service to their customers.

Hence our competitive advantage is the time and the quality – we are first on the market and we have the best teachers in our industry. Page 15 Appendix 1 – Management Team Managing Director / HR Manager Summary Major achievements during the last 5 years of my carrier in several words could be expressed as management, analysis and continuous improvement of the competence areas like Company Business Administration, Portfolio/Project Management, Company Operations and Financial Management. I possess management, business administration, leadership, analysis and communication skills developed up to high levels.

Since 2006 I’ve contributed into successful project/program management practices, by means of introduction of a comprehensive estimation, planning and monitoring framework for company projects. It is worth mentioning that since 2007 more than 10 projects (up to 2m ? ) with multiple releases have been delivered to our customers successfully under my supervision and mentoring. Project Management Framework setup is another achievement I was able to accomplish. It is very important not only to detect the problems, it is much more important to make people understand that they have problems and o organize them in efficient way to resolve these. My personal Project Management experience as far as Project Management Professional [PMP] certification and participation in conferences and workshops enabled to accomplish this non trivial task. The last but not the least, I’ve put in order our Contract Management and Financial Management systems what resulted in tangible financial savings for the company and my current studies on General MBA program of University of Wales at Robert Kennedy College, Switzerland supported me in these endeavors.

Education General MBA UoW – 2nd year in progress Master of Computer Science, Master degree in Telecommunications (Programming Languages, Math, Diploma on Characters Recognition) Bachelor of Radio electronics (Aviation, Electrical Circuits, Economics, Diploma on Transmission-Line Antennas) Social Skills Strong leadership and communication skills, experience being a mediator between management, customer representatives Page 16

Team Lead of Teachers’ Group Summary An articulate qualified English teacher who is able to effectively communicate with students from diverse backgrounds or varying degrees of ability. A committed and dedicated professional with a proven ability to teach, motivate and direct students to maximum performance by encouraging a positive and energetic environment. Teaching English Language & Literature from KS3, KS4 and Entry level. Helping pupils to define and identify different types of verbs. Tailoring English teaching methods to suit the needs of individual students.

Planning, preparing and delivering lessons to a range of English classes. Conducting up to 6 classes in one day. Marking work and giving appropriate feedback to pupils. Devising and writing new curriculum materials. Preparing pupils for external examinations, such as GCSE and A-level. Leading a group of different language teachers. Country State University, PhD in Modern Languages Master degree in English language and Literature Strong leadership and communication skills Able to use computer-assisted educational resources.

Researching new topic areas and maintaining up-to-date subject knowledge. Able to teach vulnerable and sometimes challenging students. A committed and organized professional. Education Social Skills Page 17 Exhibits Figure 4 Calculated NPV for the start-up Dec’12 Year 2013 Year 2014 Year 2015 € (61,200. 00) € € (11,496. 00) € 38,934. 00 € € (72,696. 00) € (33,762. 00) € Year 2016 39,555. 00 € 5,793. 00 € Year 2017 40,176. 00 € 86,145. 00 € 86,145. 00 31,449. 00 Start-up investment Profit/Loss after taxes NPV 40,176. 00 € 45,969. 00 €

Figure 5 Projected Monthly Financial Statement of Accounts for 2012/2013 Statements of Financial position Dec’12 EUR ASSETS Non-current assests Computers, Cofee-machine, etc Accumulated Depreciation (straight-even, 5 years) Language Programs Current assets Trade receivables Cash at bank and in hand Total Assets EQUITY AND LIABILITIES Equity Profit/Loss Non-current liabilities Current Liabilities Borrowings (all bank overdraft) Trade payables Total Equity and liabilities 23,100. 00 23,100. 00 (385. 00) 6,300. 00 29,015. 00 28,526. 50 28,526. 50 57,541. 0 23,100. 00 (770. 00) 6,300. 00 28,630. 00 28,143. 00 28,143. 00 56,773. 00 23,100. 00 (1,155. 00) 6,300. 00 28,245. 00 19,248. 50 19,248. 50 47,493. 50 23,100. 00 (1,540. 00) 6,300. 00 27,860. 00 18,565. 00 18,565. 00 46,425. 00 23,100. 00 (1,925. 00) 6,300. 00 27,475. 00 17,881. 50 17,881. 50 45,356. 50 23,100. 00 (2,310. 00) 6,300. 00 27,090. 00 8,987. 00 8,987. 00 36,077. 00 23,100. 00 (2,695. 00) 6,300. 00 26,705. 00 12,713. 50 12,713. 50 39,418. 50 23,100. 00 (3,080. 00) 6,300. 00 26,320. 00 16,440. 00 16,440. 00 42,760. 00 23,100. 00 (3,465. 0) 6,300. 00 25,935. 00 11,955. 50 11,955. 50 37,890. 50 23,100. 00 (3,850. 00) 6,300. 00 25,550. 00 15,682. 00 15,682. 00 41,232. 00 23,100. 00 (4,235. 00) 6,300. 00 25,165. 00 19,408. 50 19,408. 50 44,573. 50 23,100. 00 (4,620. 00) 6,300. 00 24,780. 00 14,924. 00 14,924. 00 39,704. 00 Jan’13 Feb’13 ? m Mar’13 Apr’13 May’13 Jun’13 Jul’13 Aug’13 Sep’13 Oct’13 Nov’13 Dec’13 6,300. 00 29,400. 00 21,800. 00 21,800. 00 51,200. 00 61200 (10,000. 00) (10,000. 00) 61200 61,200. 00 61,200. 00 51,200. 00 (3,658. 50) (3,658. 50) 61,200. 00 61,200. 00 57,541. 50 (4,427. 0) (4,427. 00) (13,706. 50) (13,706. 50) (14,775. 00) (14,775. 00) (15,843. 50) (15,843. 50) (25,123. 00) (25,123. 00) (21,781. 50) (21,781. 50) (18,440. 00) (18,440. 00) (23,309. 50) (23,309. 50) (19,968. 00) (19,968. 00) (16,626. 50) (16,626. 50) (21,496. 00) (21,496. 00) 61,200. 00 61,200. 00 56,773. 00 61,200. 00 61,200. 00 47,493. 50 61,200. 00 61,200. 00 46,425. 00 61,200. 00 61,200. 00 45,356. 50 61,200. 00 61,200. 00 36,077. 00 61,200. 00 61,200. 00 39,418. 50 61,200. 00 61,200. 00 42,760. 00 61,200. 00 61,200. 00 37,890. 50 61,200. 00 61,200. 0 41,232. 00 61,200. 00 61,200. 00 44,573. 50 61,200. 00 61,200. 00 39,704. 00 Page 18 Figure 6 Projected Monthly Financial Statement of Accounts for 2014 Statements of Financial position Jan’14 EUR ASSETS Non-current assests Computers, Cofee-machine, etc Accumulated Depreciation (straight-even, 5 years) Language Programs Current assets Trade receivables Cash at bank and in hand Total Assets EQUITY AND LIABILITIES Equity Profit/Loss Non-current liabilities Current Liabilities Borrowings (all bank overdraft) Trade payables Total Equity and liabilities 23,100. 0 (5,005. 00) 6,300. 00 24,395. 00 21,290. 50 21,290. 50 45,685. 50 23,100. 00 (5,390. 00) 6,300. 00 24,010. 00 27,657. 00 27,657. 00 51,667. 00 23,100. 00 (5,775. 00) 6,300. 00 23,625. 00 25,812. 50 25,812. 50 49,437. 50 23,100. 00 (6,160. 00) 6,300. 00 23,240. 00 32,179. 00 32,179. 00 55,419. 00 23,100. 00 (6,545. 00) 6,300. 00 22,855. 00 38,545. 50 38,545. 50 61,400. 50 23,100. 00 (6,930. 00) 6,300. 00 22,470. 00 36,701. 00 36,701. 00 59,171. 00 23,100. 00 (7,315. 00) 6,300. 00 22,085. 00 43,067. 50 43,067. 50 65,152. 50 23,100. 00 (7,700. 0) 6,300. 00 21,700. 00 49,434. 00 49,434. 00 71,134. 00 23,100. 00 (8,085. 00) 6,300. 00 21,315. 00 47,589. 50 47,589. 50 68,904. 50 23,100. 00 (8,470. 00) 6,300. 00 20,930. 00 53,956. 00 53,956. 00 74,886. 00 23,100. 00 (8,855. 00) 6,300. 00 20,545. 00 60,322. 50 60,322. 50 80,867. 50 23,100. 00 (9,240. 00) 6,300. 00 20,160. 00 33,478. 00 33,478. 00 53,638. 00 Feb’14 Mar’14 Apr’14 May’14 Jun’14 Jul’14 Aug’14 Sep’14 Oct’14 Nov’14 Dec’14 (15,514. 50) (15,514. 50) 61,200. 00 61,200. 00 45,685. 50 (9,533. 00) (9,533. 00) 61,200. 00 61,200. 00 51,667. 0 (11,762. 50) (11,762. 50) (5,781. 00) (5,781. 00) 200. 50 200. 50 (2,029. 00) (2,029. 00) 3,952. 50 3,952. 50 9,934. 00 9,934. 00 7,704. 50 7,704. 50 13,686. 00 13,686. 00 19,667. 50 19,667. 50 17,438. 00 17,438. 00 61,200. 00 61,200. 00 49,437. 50 61,200. 00 61,200. 00 55,419. 00 61,200. 00 61,200. 00 61,400. 50 61,200. 00 61,200. 00 59,171. 00 61,200. 00 61,200. 00 65,152. 50 61,200. 00 61,200. 00 71,134. 00 61,200. 00 61,200. 00 68,904. 50 61,200. 00 61,200. 00 74,886. 00 61,200. 00 61,200. 00 80,867. 50 36,200. 00 36,200. 00 53,638. 00 Page 19

Figure 7 Projected Monthly Financial Statement of Accounts for 2015 Statements of Financial position Jan’15 EUR ASSETS Non-current assests Computers, Cofee-machine, etc Accumulated Depreciation (straight-even, 5 years) Language Programs Current assets Trade receivables Cash at bank and in hand Total Assets EQUITY AND LIABILITIES Equity Profit/Loss Non-current liabilities Current Liabilities Borrowings (all bank overdraft) Trade payables Total Equity and liabilities 23,100. 00 (9,625. 00) 6,300. 00 19,775. 00 39,844. 50 39,844. 50 59,619. 50 23,100. 00 (10,010. 00) 6,300. 00 19,390. 00 46,211. 00 46,211. 00 65,601. 00 23,100. 0 (10,395. 00) 6,300. 00 19,005. 00 44,366. 50 44,366. 50 63,371. 50 23,100. 00 (10,780. 00) 6,300. 00 18,620. 00 50,733. 00 50,733. 00 69,353. 00 23,100. 00 (11,165. 00) 6,300. 00 18,235. 00 57,099. 50 57,099. 50 75,334. 50 23,100. 00 (11,550. 00) 6,300. 00 17,850. 00 55,255. 00 55,255. 00 73,105. 00 23,100. 00 (11,935. 00) 6,300. 00 17,465. 00 25,525. 00 25,525. 00 42,990. 00 23,100. 00 (12,320. 00) 6,300. 00 17,080. 00 31,995. 00 31,995. 00 49,075. 00 23,100. 00 (12,705. 00) 6,300. 00 16,695. 00 30,254. 00 30,254. 00 46,949. 00 23,100. 00 (13,090. 00) 6,300. 00 16,310. 00 36,724. 00 36,724. 00 53,034. 00 23,100. 00 (13,475. 0) 6,300. 00 15,925. 00 43,194. 00 43,194. 00 59,119. 00 23,100. 00 (13,860. 00) 6,300. 00 15,540. 00 41,453. 00 41,453. 00 56,993. 00 Feb’15 Mar’15 Apr’15 May’15 Jun’15 Jul’15 Aug’15 Sep’15 Oct’15 Nov’15 Dec’15 23,419. 50 23,419. 50 36,200. 00 36,200. 00 59,619. 50 29,401. 00 29,401. 00 36,200. 00 36,200. 00 65,601. 00 27,171. 50 27,171. 50 33,153. 00 33,153. 00 39,134. 50 39,134. 50 36,905. 00 36,905. 00 42,990. 00 42,990. 00 49,075. 00 49,075. 00 46,949. 00 46,949. 00 53,034. 00 53,034. 00 59,119. 00 59,119. 00 56,993. 00 56,993. 00 36,200. 00 36,200. 00 63,371. 50 36,200. 00 36,200. 00 69,353. 00 36,200. 00 36,200. 0 75,334. 50 36,200. 00 36,200. 00 73,105. 00 42,990. 00 49,075. 00 46,949. 00 53,034. 00 59,119. 00 56,993. 00 Figure 8 Projected Monthly Income Statement for 2013 First operational year (2013) Sales Electricity Utilities Internet Rent Advertisment Salaries (teachers) Salaries (managing director/ HR manager) Salary (Assistant) Salary (Accountant) Depreciation (equipment) Profit before Interset Interest (2%) Profit befor Tax Taxes (35%) Profit/Loss after Tax Jan’13 € € € € € € € € € € € € € € € € 7,350. 00 (20. 00) (500. 00) (385. 00) 6,445. 00 (103. 50) 6,341. 50 6,341. 50 Feb’13 € € € € € € € € € € € € € € € € 7,350. 0 (30. 00) (30. 00) (20. 00) (500. 00) (5,600. 00) (500. 00) (350. 00) (600. 00) (385. 00) (665. 00) (103. 50) (768. 50) (768. 50) Mar’13 € € € € € € € € € € € € € € € € 7,350. 00 (30. 00) (30. 00) (20. 00) (500. 00) (300. 00) (5,600. 00) (500. 00) (350. 00) (600. 00) (385. 00) (965. 00) (103. 50) (1,068. 50) (8,211. 00) (9,279. 50) Apr’13 € € € € € € € € € € € € € € € € 7,350. 00 (30. 00) (30. 00) (20. 00) (500. 00) (300. 00) (5,600. 00) (500. 00) (350. 00) (600. 00) (385. 00) (965. 00) (103. 50) (1,068. 50) (1,068. 50) May’13 € € € € € € € € € € € € € € € € 7,350. 00 (30. 00) (30. 00) (20. 00) (500. 00) (300. 0) (5,600. 00) (500. 00) (350. 00) (600. 00) (385. 00) (965. 00) (103. 50) (1,068. 50) (1,068. 50) Jun’13 € € € € € € € € € € € € € € € € 7,350. 00 (30. 00) (30. 00) (20. 00) (500. 00) (300. 00) (5,600. 00) (500. 00) (350. 00) (600. 00) (385. 00) (965. 00) (103. 50) (1,068. 50) (8,211. 00) (9,279. 50) Jul’13 € 11,760. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (300. 00) € (5,600. 00) € (500. 00) € (350. 00) € (600. 00) € (385. 00) € 3,445. 00 € (103. 50) € 3,341. 50 € € 3,341. 50 Aug’13 € 11,760. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (300. 00) € (5,600. 00) € (500. 00) € (350. 00) € (600. 00) € (385. 0) € 3,445. 00 € (103. 50) € 3,341. 50 € € 3,341. 50 Sep’13 € 11,760. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (300. 00) € (5,600. 00) € (500. 00) € (350. 00) € (600. 00) € (385. 00) € 3,445. 00 € (103. 50) € 3,341. 50 € (8,211. 00) € (4,869. 50) Oct’13 € 11,760. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (300. 00) € (5,600. 00) € (500. 00) € (350. 00) € (600. 00) € (385. 00) € 3,445. 00 € (103. 50) € 3,341. 50 € € 3,341. 50 Nov’13 € 11,760. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (300. 00) € (5,600. 00) € (500. 00) € (350. 00) € (600. 00) € (385. 00) € 3,445. 00 € (103. 50) € 3,341. 0 € € 3,341. 50 Dec’13 € 11,760. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (300. 00) € (5,600. 00) € (500. 00) € (350. 00) € (600. 00) € (385. 00) € 3,445. 00 € (103. 50) € 3,341. 50 € (8,211. 00) € (4,869. 50) Page 20 Figure 9 Projected Monthly Income Statement for 2014 Second operational year (2014) Sales Electricity Utilities Internet Rent Advertisment Salaries (teachers) Salaries (managing director/ HR manager) Salary (Assistant) Salary (Accountant) Depreciation (equipment) Profit before Interset Interest (2%) Profit before Tax Taxes (35%) Profit/Loss after Tax Jan’14 € € € € € € € € € € € € € € € € 14,700. 0 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 5,981. 50 Feb’14 € € € € € € € € € € € € € € € € 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 5,981. 50 Mar’14 € € € € € € € € € € € € € € € € 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 (8,211. 00) (2,229. 50) Apr’14 € € € € € € € € € € € € € € € € 14,700. 0 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 5,981. 50 May’14 Jun’14 € 14,700. 00 € € (30. 00) € € (30. 00) € € (20. 00) € € (500. 00) € € (100. 00) € € (5,600. 00) € € (1,000. 00) € € (350. 00) € € (600. 00) € € (385. 00) € € 6,085. 00 € € (103. 50) € € 5,981. 50 € € € € 5,981. 50 € 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 (8,211. 00) (2,229. 50) Jul’14 € 14,700. 00 € (30. 00) € (30. 00) € (20. 0) € (500. 00) € (100. 00) € (5,600. 00) € (1,000. 00) € (350. 00) € (600. 00) € (385. 00) € 6,085. 00 € (103. 50) € 5,981. 50 € € 5,981. 50 Aug’14 € 14,700. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (100. 00) € (5,600. 00) € (1,000. 00) € (350. 00) € (600. 00) € (385. 00) € 6,085. 00 € (103. 50) € 5,981. 50 € € 5,981. 50 Sep’14 € 14,700. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (100. 00) € (5,600. 00) € (1,000. 00) € (350. 00) € (600. 00) € (385. 00) € 6,085. 00 € (103. 50) € 5,981. 50 € (8,211. 00) € (2,229. 50) Oct’14 € 14,700. 00 € (30. 00) € (30. 00) € (20. 0) € (500. 00) € (100. 00) € (5,600. 00) € (1,000. 00) € (350. 00) € (600. 00) € (385. 00) € 6,085. 00 € (103. 50) € 5,981. 50 € € 5,981. 50 Nov’14 € 14,700. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (100. 00) € (5,600. 00) € (1,000. 00) € (350. 00) € (600. 00) € (385. 00) € 6,085. 00 € (103. 50) € 5,981. 50 € € 5,981. 50 Dec’14 € 14,700. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (100. 00) € (5,600. 00) € (1,000. 00) € (350. 00) € (600. 00) € (385. 00) € 6,085. 00 € (103. 50) € 5,981. 50 € (8,211. 00) € (2,229. 50) Figure 10 Projected Monthly Income Statement for 2015

Third operational year (2015) Sales Electricity Utilities Internet Rent Advertisment Salaries (teachers) Salaries (managing director/ HR manager) Salary (Assistant) Salary (Accountant) Depreciation (equipment) Profit before Interset Interest (2%) Profit before Tax Taxes (35%) Profit/Loss after Tax Jan’15 € € € € € € € € € € € € € € € € 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 5,981. 50 Feb’15 € € € € € € € € € € € € € € € € 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 0) (385. 00) 6,085. 00 (103. 50) 5,981. 50 5,981. 50 Mar’15 € € € € € € € € € € € € € € € € 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 (8,211. 00) (2,229. 50) Apr’15 € € € € € € € € € € € € € € € € 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 5,981. 50 May’15 Jun’15 € 14,700. 00 € € (30. 00) € € (30. 00) € € (20. 00) € € (500. 00) € € (100. 00) € € (5,600. 00) € € (1,000. 00) € € (350. 00) € € (600. 00) € € (385. 00) € € 6,085. 0 € € (103. 50) € € 5,981. 50 € € € € 5,981. 50 € 14,700. 00 (30. 00) (30. 00) (20. 00) (500. 00) (100. 00) (5,600. 00) (1,000. 00) (350. 00) (600. 00) (385. 00) 6,085. 00 (103. 50) 5,981. 50 (8,211. 00) (2,229. 50) Jul’15 € 14,700. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (100. 00) € (5,600. 00) € (1,000. 00) € (350. 00) € (600. 00) € (385. 00) € 6,085. 00 € € € Aug’15 € 14,700. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (100. 00) € (5,600. 00) € (1,000. 00) € (350. 00) € (600. 00) € (385. 00) € 6,085. 00 Sep’15 € 14,700. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (100. 00) € (5,600. 00) € (1,000. 0) € (350. 00) € (600. 00) € (385. 00) € 6,085. 00 Oct’15 € 14,700. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (100. 00) € (5,600. 00) € (1,000. 00) € (350. 00) € (600. 00) € (385. 00) € 6,085. 00 Nov’15 € 14,700. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (100. 00) € (5,600. 00) € (1,000. 00) € (350. 00) € (600. 00) € (385. 00) € 6,085. 00 Dec’15 € 14,700. 00 € (30. 00) € (30. 00) € (20. 00) € (500. 00) € (100. 00) € (5,600. 00) € (1,000. 00) € (350. 00) € (600. 00) € (385. 00) € 6,085. 00 6,085. 00 (8,211. 00) (2,126. 00) 6,085. 00 € € 6,085. 00 € 6,085. 00 € 6,085. 00 € 6,085. 00 € 6,085. 00 € € (8,211. 0) € € € 6,085. 00 € (2,126. 00) € 6,085. 00 € 6,085. 00 € Page 21 Figure 11 Projected Monthly Cash Flow 2012/2013 Cash flows statements Operating profit Depreciation costs Interest payable Cash generated from operations Interest paid Taxation paid Net cash from operation activities Cash flows from investing activities Intangible assets (additions) Net cash used in investing activities Cash flows from financing activities Re-payment of Loan notes Net cash outflow from financing activities Net decrease in cash and cash equivalents Dec’12 Jan’13 Feb’13 Mar’13 Apr’13 May’13 Jun’13 Jul’13 Aug’13 Sep’13 Oct’13 Nov’13 Dec’13 (10,000. 0) 6,341. 50 (768. 50) (1,068. 50) (1,068. 50) (1,068. 50) (1,068. 50) 3,341. 50 3,341. 50 3,341. 50 3,341. 50 3,341. 50 3,341. 50 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 (10,000. 00) 6,830. 00 (280. 00) (580. 00) (580. 00) (580. 00) (580. 00) 3,830. 00 3,830. 00 3,830. 00 3,830. 00 3,830. 00 3,830. 00 (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (8,211. 0) (8,211. 00) (8,211. 00) (8,211. 00) (10,000. 00) 6,726. 50 (383. 50) (8,894. 50) (683. 50) (683. 50) (8,894. 50) 3,726. 50 3,726. 50 (4,484. 50) 3,726. 50 3,726. 50 (4,484. 50) (10,000. 00) 6,726. 50 (383. 50) (8,894. 50) (683. 50) (683. 50) (8,894. 50) 3,726. 50 3,726. 50 (4,484. 50) 3,726. 50 3,726. 50 (4,484. 50) Figure 12 Projected Monthly Cash Flow 2014 Jan’14 Feb’14 Mar’14 Apr’14 May’14 Jun’14 Jul’14 Aug’14 Sep’14 Oct’14 Nov’14 Dec’14 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 385. 00 385. 0 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (8,211. 00) (8,211. 00) (8,211. 00) (8,211. 00) 6,366. 50 6,366. 50 (1,844. 50) 6,366. 50 6,366. 50 (1,844. 50) 6,366. 50 6,366. 50 (1,844. 50) 6,366. 50 6,366. 0 (1,844. 50) 6,366. 50 Operating profit Depreciation costs Interest payable Cash generated from operations Interest paid Taxation paid Net cash from operation activities Cash flows from investing activities Intangible assets (additions) Net cash used in investing activities Cash flows from financing activities Re-payment of Loan notes Net cash outflow from financing activities Net decrease in cash and cash equivalents 6,366. 50 (1,844. 50) 6,366. 50 6,366. 50 (1,844. 50) 6,366. 50 6,366. 50 (1,844. 50) 6,366. 50 6,366. 50 (25,000. 00) (25,000. 00) (26,844. 50) Page 22

Figure 13 Projected Monthly Cash Flow 2015 Jan’15 Feb’15 Mar’15 Apr’15 May’15 Jun’15 Jul’15 Aug’15 Sep’15 Oct’15 Nov’15 Dec’15 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 5,981. 50 6,085. 00 6,085. 00 6,085. 00 6,085. 00 6,085. 00 6,085. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 385. 00 103. 50 103. 50 103. 50 103. 50 103. 50 103. 50 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 6,470. 00 (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (103. 50) (8,211. 00) (8,211. 0) (8,211. 00) (8,211. 00) 6,366. 50 6,366. 50 (1,844. 50) 6,366. 50 6,366. 50 (1,844. 50) 6,470. 00 6,470. 00 (1,741. 00) 6,470. 00 6,470. 00 (1,741. 00) 6,366. 50 Operating profit Depreciation costs Interest payable Cash generated from operations Interest paid Taxation paid Net cash from operation activities Cash flows from investing activities Intangible assets (additions) Net cash used in investing activities Cash flows from financing activities Re-payment of Loan notes Net cash outflow from financing activities Net decrease in cash and cash equivalents 6,366. 50 (1,844. 50)

Memorandum Re: Business Plan Assessment – Private Concepts Critically analyzing a business plan for its viability and opportunity for success is absolutely necessary from any stakeholder’s perspective. Doing so aides an investor in knowing whether or not to invest, a bank in deciding on a loan, or even a partner in his/her decision to join a venture.

But perhaps most importantly, a critical analysis of a business plan can and will help the entrepreneur to assess whether or not an idea under its current platform is worth undertaking, or if it is back to the drawing board they go. The purpose of this memo is to assess the business plan of Private Concepts, a company hoping to bring to market The Pevlon, a cervical cancer screening device made for private, in-home use. The opportunity for such a device absolutely exists both here in the United States and abroad.

For one, the plan mentions The Breast and Cervical Cancer Mortality Act of 1990 which, “mandated a nationwide program to increase access of medically underserved women to comprehensive breast and cervical cancer screening services,” and when coupled with the Patient Protection and Affordable Care Act that was recently passed, the amount of free (to consumer; paid for by the government) access to this product creates potential for a high demand in this country.

In foreign countries however, such as rural China and even Africa, where access to healthcare and proper healthcare facilities can be extremely rare, the appetite for this type of product could be tremendously significant. And there lies the first issue with this business plan. According to the Lancet Oncology medical journal, Volume 11, Issue 12, “75,000 women develop cervical cancer and 40,000 women die from the disease in China each year. ” Those numbers in the United States are only about 12,000 and close to 4,000 respectively (cdc. ov). This exemplifies a larger need for this product abroad as opposed to right here in the states. And to focus on the opportunity in China, a Wall Street Journal publication explains how China’s healthcare system is lacking in general, but puts a microscope on the disparity in quality healthcare between rural and urban areas (Burkitt, 2012). These rural areas in China represent a large opportunity (much larger than any market in the United States) for The Pevlon.

And so although the opportunity does exist for the business plan’s product, it is evident that the opportunity accentuated in the business plan is not the optimal one (aside from appealing to non-profits or other entities that would utilize the Pevlon in charitable, undoubtedly foreign ventures – this should have been a more significant portion of the plan). Additionally, the opportunity in the United States has not necessarily been proven to the point where one could consider the need for the product as pervasive enough to where the consumer is willing to pay for it.

And pay for they would have to, because as the plan notes in the chart on page 10, a Pevlon screen costs 50% more than a typical pap smear. This exemplifies that pricing is going to be an issue. The health care market is highly dependent on the insurance industry, especially when there are product substitutes. Take pharmaceuticals for example. In group health care, policies are dictated by the contract that is in place and the majority of these contracts will sway the policy holder to utilize generic medications.

This is done by the insurance carrier covering a larger percentage of generic medications than name brand ones, which ultimately costs the carrier less. So if a pap smear is less costly by 50% than a Pevlon test, carriers may still cover the device, but the “incentive” to utilize the cheaper procedure will absolutely be in place. Additionally, the business plan identifies lower income women as a target market, but fails to explain how a more expensive procedure will be a viable option for this segment group. But even when the entire U. S. arket (via a sample size) is observed on page 19 of the plan, less than half of the women surveyed (46%) stated they would utilize the in-home Pevlon test even if most or all of it was covered by insurance. And if insurance reimbursement is removed completely, only 11. 2% of women would purchase the product. It would be interesting to see if there were follow up inquiries related to this line of questioning because a hypothesis is that some women, or maybe even a lot of women, may not trust themselves to complete such an important test at home.

These women may simply prefer to rely on the expertise of a medical professional. And along these same lines, I feel as though the plan is silent on a very important aspect when it comes to assessing the true market of this product: how many women are in fact uncomfortable with going to a physician’s office to have a pap smear completed and would those women be more comfortable completing such a screen at home?

Yes, there is a quote stating how uncomfortable the procedure is (which is in fact the first thing the reader sees underneath the Executive Summary heading), but it is somewhat suspect that this quote is anonymous and that there is no quantifiable evidence proving this notion to be true. So what is the actual desirability of this product? There really is no proof of it within the business plan and if I was investing in this product, I would need this “proof. ” Aside from the ambiguous desirability of the product, there are a number of other concerns that should really stick out to the potential investor.

On page 12 of the business plan there is a section that lays out the testing and approval stage for the Pevlon device. There are 6 steps in this section and only 1 of which have been completed, which happens to be the least significant of steps. The remaining rigmarole of securing FDA approval, obtaining the green light to conduct clinical studies, actually conducting these studies, etc. could easily take upwards of a decade to complete. From the perspective of an investor or a bank assessing a loan, this is entirely too long a process for someone to simply START making their money back.

This exemplifies how difficult a market healthcare can be to get into, and that the barriers involved are simply too high. Additionally, the Pevlon is not necessarily a onetime revenue generator, but it comes uncomfortably close. In 2009, the American College of Obstetricians and Gynecologists (ACOG) released new cancer screening guidelines. According to ACOG, women now need to begin screening at age 21 as opposed to 18, and women ages 21 to 30 only need to be screened once every two years; women 30 and older only once every 3 years (Cox, 2009).

The final qualms that I have concerning this business plan is the window of opportunity associated with the product, and the amount of time it will take for Private Concepts to become a profitable company. There does not appear to be an actual window of opportunity as the business plan does not thoroughly prove the market segment. Anecdotally I polled a number of women in my life with whom I am comfortable bringing this subject up and all of them (4) took the opinion that their screenings are not a major source of stress or discomfort, but rather they have come to accept it as “part of the routine of life. And in regards to becoming a profit generating entity, right up front on page 3 of the business plan, it is shown in the chart that Private Concepts would not be in the black until 5 years of doing business. What’s most concerning is that 5 years is still merely a hypothesis and that the organization is seeking over three million dollars in funding basically right out of the gate. Conceptually, the idea of a self administered, in home cervical cancer screening is a good idea.

It poses benefits such as convenience and avoiding uncomfortable screenings at a physician’s office. Private Concepts missed the mark in their business plan however, in a number of ways. The market was identified too ambiguously and the plan did not clearly exemplify certain key aspects of said market such as how many women actually would prefer an in home screen versus one performed in a physician’s office. Where to market and focus sales efforts was clearly stated, however, the idea to sell first in the United States is not the best possible plan of action.

Private Concepts should as the plan mentions, manufacture the product off shore in order to maximize profit margins, but at the same time the pricing point should be rethought considerably in order to capitalize on the more fruitful markets of places like rural China and Africa. Appealing to non-profits and government entities that might focus on these foreign demographics was a small piece of the business plan, but it should have been more of a focus.

Finally, in this assessment I had the advantage of hind sight and context. This business plan won the Moot Corp competition in 2002 with what appeared to be a viable business plan at the time. This product has yet to come to market and I was unable to find anything stating that the Pevlon has been approved by the FDA. This does not necessarily hold any bearing on this analysis of the business plan; however, it does prove to a certain extent, a lot of the shortcomings that were found within this business plan.

Academically and structurally the plan was very well done, however in practical application it is easy to see how and why the Pevlon is still an unknown product to virtually the entirety of the woman population in the United States. Arbyn, Marc. HPV-Based Cervical Cancer Screening in China. The Lancet Oncology. 2010;11(12):1112 – 1113. Burkitt, Laurie. Report: China’s Healthcare System Deeply Sick. The Wall Street Journal. http://blogs. wsj. com/chinarealtime/2012/08/29/report-chinas-health-care-system-deeply-sick. 9 August 2012. Date Accessed: 23 January 2013. Cervical Cancer Statistics. Centers for Disease Control and Prevention: Gynecologic Cancers. http://www. cdc. gov/cancer/cervical/statistics. 20 December 2012. Date Accessed: 23 January 2013. Cox, Lauren & Dr. Joshua Hundert. New Cervical Cancer Screening Guidelines: No More ‘Annual’ Pap Smears. ABC, Good Morning America. http://abcnews. go. com/GMA/OnCall/guidelines-ditch-annual-pap-smears/story? id=9131632. 20 November 2009. Date Accessed: 23 January 2013.

Cover Letter

Dear Investor

You’re looking at a business plan for one of the finest and best Sushi restaurant what will take place in down town Manhattan. The restaurant is specifically located at the Ground Zero, where back in the old days, the finest place. Right now the government is rebuilding the World Trade Center, which means wealthy people are coming back to down town Manhattan. This is a great opportunity to start a restaurant around the area, since the population will significantly increase due to the rising of a 105 stories skyscraper.

Oyi-Shi sushi restaurant is design for consumer to have a relaxed and pleasant environment for brunch, lunch, happy hour, and dinner. We serve variety style of Japanese sushi, Such as Aburi Sushi, Gunkan-Maki, Maki Sushi and Nigiri Sushi, Plus different selections of beverages. Oyi-shi restaurant will be able to occupy over 40 guess, and a Bar, which will accommodate 15 people.

Executive Summary

Sushi restaurant industry had grown enormously in United State during last decade. As of now days, there are approximately 30,000 throughout 50 states, There are over 200 sushi restaurant located in New York.

The purpose of this business plan is to find investor or a partner to start off the business. Oyi-Shi Sushi Bar and Grill is a high-end sushi restaurant and bar located at Ground Zero, Seeking to provide customer with a pleasant environment for dinning or happy hours. Plus we would like to satisfy customer with our descent sushi catering and variety selection of sushi styles. Company Back Ground Oyi-Shi sushi restaurant Inc. is a New York base corporation, Will be register under the State of New York. Restaurant is initially found by HongYing Cai, and seeking to have a partner. Mr. Cai will obtain 55% of the business.

There are overwhelming competitions in restaurant business. In New York City, there are over thousands of restaurant serving different food or caterings. Another obstacle for sushi restaurant is raising price in seafood. According to IBIS World, sushi restaurant industry is facing a decline in revenue of 3. 4% each year. However there are still opportunities for sushi restaurant business. The project for rebuilding World Trade Center will have a significant increase of population in down town Manhattan. With increase in population there is a need for food.

Management Team

Overall restaurant will be managed by HongYing Cai.

I have over 7 years of working experience in restaurant industry. Plus majority of my relatives are restaurant owner, they can give me advises on managing the restaurant. For chief, I will hire 2 Japanese sushi chief, who had at least 5 years of experience on making sushi catering, plus 2 sushi helpers, with at least two year in experience. We’ll hire 7 waiters or waitress. 3 of them will doing daily shift, 4 of them will have the night shift, each of the waiter or waitress need to be very polite to the customer and fluent in English, bonus if speaking other language, Japanese or Chinese is preferred.

Financial Plan

There are no loans make in the starting of the business, all capitals had came from founders and the partner. General assumptions of Federal tax rate are around 33%, and sales tax rate is around 5%. These tax rates are fixed for all 5 years projection. We also assume that the average sales of the restaurant increase about 15% each year. We also Assumes that the operating cost is around 45% of the good sold.

Capital Required Oyi-Shi sushi restaurant will start off with $400,000 capitals.

Marketing Plan

The Objective of this marketing plan is to maximize the visibility of the business in the surrounding area. By doing so, I will use a number of marketing strategies that will allow the Sushi Restaurant to easily target men and women within targeted market. These strategies include traditional print advertisements and discounts offered as a part of a grand opening campaign. Below is a description of how the business intends to market its services to the general public.

The Company also intends on hiring a local public relations firm that will promote reviews and articles about the restaurant, its cuisine, and relevant hours of operation and pricing. I will invite local food critics to the Company’s Sushi Restaurant location in order to generate positive publicity about the restaurant. The Company will maintain a sizable amount of print and traditional advertising methods within local the local market to promote the sushi and Japanese cuisine products that the Company is selling. At the onset of operations, the Company will distribute an expansive number of coupons for lower priced fare within local circulars.

Location Analysis

I had picked area around Ground Zero, as the location of the Oyi-Shi Sushi restaurant.

Primary reasons are rebuilds of World Trade Center. According to the Port Authority of NY and NJ, this newly raising skyscraper is five major skyscrapers at downtown Atlanta, providing Class A Office space. Plus there will be world’s most significant memorials and museums, which means there are good amount of tourist. Reports from Port Authority of NY and NJ also indicated there will be 250,000 people and over 200,000 commuters using the World Trade Center’s transportation hub. Manufacturing plan In order to provide customer with the best food, I decided to import the seafood and other goods needed to serve the customer every 3 days. I will have 3 big refrigerators to store these goods.

Each of the refrigerators will be store with different goods, for example, all seafood will be store within one particular refrigerator with temperatures under the control to make sure the condition of the seafood is in good standing.

piggery University of Technology, Jamaica Introduction to Entrepreneurship Course code: ENT3001 Lecturer: Dr. Horace Williams October 4, 2012 Group Members: Garyann Robertson – 1105821 Nastassia Rowe-1101791 Adrean Dawkins-1103471 Oneika Robinson-1102703 Vancine Brown-1100550 Darain Harris -1104783 Table of Contents Content| Page| Executive Summary| | Industry Analysis| | Definition of Market| | Purpose Of the Business Plan| | Business Feasibility| | Justification Of the Business| | Organization and Management| | Human Resources| | Operational Considerations| | Marketing Arrangement| |

Financial Considerations| | Implementation of Schedule| | Appendices| | | | | | | | | | | | | | | | | | Executive Summary The name of the business will be Argyle Mountain Piggery. In Jamaica rearing of animals for sale is a common business practice; many people enter into such ventures when quests for finding alternate employment prove to be futile. Most of these entrepreneurs do not recognize the immense potential such businesses have to succeed. The entrepreneurs of the proposed business realized an opportunity to build a profitable and successful pig rearing and selling business and took advantage of it.

The decision taken to embark on such a business can prove to be most profitable; the entrepreneurs recognized an opportunity which is the demand for the product and will seek to supply the potential market with pigs and pork and collect the profits to be had. The business’s focus will be on the sale of live pigs and pork, it will be concerned with the breading and rearing of pigs for consumption. The product that the proposed business opts to sell will be live pigs, dressed pig carcasses and pig offal. The business established will be a partnership; the venture will have six co-owners all of which will be general partners.

The finances will be shared among the partners as follows: Oneika Robinson will contribute approximately 40% of the capital needed to start the business as she possesses the collateral that is required to receive loans. She will in turn be the major shareholder of the business. The other 60% of the capital needed will be shared equally among the remaining partners Darain Harris, Nastassia Rowe, Adrean Dawkins, Vancine Brown and Gary- Ann Robertson. A lawyer will prepare a partnership deed that will outline the specifics of the contract.

The business is a small private venture and has unlimited liability, each partner is fully liable for the debts incurred or profits gained. The business will be based in the rural district of Argyle Mountain located in the parish of Westmorland. The land on which the business will be situated was acquired from one of the partners, who is owner of the property. The small house on the property will be converted to a storage unit for feed needed for pig rearing. The property also has a nearby water source; water will be pumped to the pens for the pigs from this stream. This location is also secluded with no close eighbours; public nuisance from the operation of the business will be avoided. The entrepreneurs of Argyle Mountain piggery took advantage of an opportunity that presented itself on the market; explain. this business concept was developed out of the need for pork on the market. The entrepreneurs sort to address the demands for a reliable supply of pork as the competitors fail to satisfy this demand. The business is also situated at an opportunistic location close to the target market. The business, exemplary service and products will facilitate its growth and expansion.

Once a market for a product a business produces is available the business has a good chance to succeed. What will determine the faith of the business is how it is managed and operated. Definition of Business The name of the proposed business will be Argyle Mountain Piggery. The business’ focus will be on the sale of live pigs and pork. The business will be located in the community of Argyle Mountain in the parish of Westmoreland. Argyle Mountain Piggery is proposed to start with ten pig, four pens and a small storage unit where feed and the equipment and tools will be stored.

For the first six months of operation the business will have three employees where two will be working shifts on weekdays and the other on the weekend. As the business expands more man power will be employed. The venture will start as a small farm that shall expand as the pigs reproduce. Piggery will sell primarily to restaurants, local butchers and supermarkets. As the business it will seek out more lucrative clients such as hotels, or large cooperation’s such as Grace, Eve, Lasco ect. Contracts with such entities will bring additional revenue for further expansion.

By the end of the second year of operation the business is expected to double its out. By the end of year six of operations the business is expected to accumulate enough wealth to facilitate growth in the form of opening a new branch in St. Mary Jamaica. 6. 0 Justification of the Business Entrepreneurs creates something of value by pulling together resources, and in order for the venture to be worthwhile the entrepreneur should assume the economic, social and personal satisfaction or benefits associated with venturing in the business of choice. Economic Benefits

One of the economic benefits of operating a piggery is the opportunity to contribute to the society whilst gaining recognition for the effort. Operation of a business of this kind helps to contribute to the development and growth of the society in various ways such as: creating employment especially to those members of the community where the business is located, helping to improve the well being of such employees; the payment of taxes and contributing to the Gross Development Product (GDP), whilst helping to build the community as well. Social Benefits

The social aspect of a business is very much important seeing it involves the relationship between people. There are several social benefits to be gained from operating a business. Firstly there is a close personal contact with employees and customers, which makes good personal relationships with employees and owner creating a better understanding of customer needs. Also through the promotion and transaction of business potential clients and business partners are developed. Finally there is the opportunity to sponsor community events thus developing stronger relationships.

Personal Benefits It is said that although money is not the primary force driving most entrepreneur the possible profits the business will earn is a motivating factor in the decision to start the business. Owning a business also provides entrepreneurs the independence and opportunity to achieve what is important to them, also reaping the rewards of knowing that the driving force behind the business are them. Finally any modification of the business or its products and services are easily facilitated as well as fostering easy decision making. 8. Human Resources Human resource looks at the activities undertaken by an organisation to attract, develop and maintain an effective work force within the organisation. Some of the key factors of human resource is staffing which involves the selecting, training, developing, placing and orienting new employees, where they can be most productive. The entrepreneurs of Argyle Mountain Piggery realize how crucial it is to have an effective workforce in order to be better able to meet and even exceed the ever changing demands and needs of our target market.

Therefore it is of great importance to recruit the right individuals, who are able to interact with customers, provide good customer service and are able to contribute positively to the overall growth of the business. In addition employees have to be trained in order to meet up to the standards, goal and objectives of the organisation as well as ensuring that each employee is capable of performing the assigned tasks. The positions required are designed in the organizational chart.

In recruiting members of staff a number of methods will be employed; such functions would include job advertisements through electronic or printed media especially in the Argyle District community. Persons with the required qualifications and experience will be shortlisted and screened then the most suited and fit persons will be interviewed. Those recruited will be provided with the rules and operations of the business and these principles will be outlined in a worker’s manual provided; as well as through verbal briefings with regards to their job description.

A job analysis which will be performed to determine the job specifications for each assignment and subsequently the job descriptions will be developed. 8. 1 Training and Development There will be On the Job Training (OJT) as selected individuals will gain hands on and practical knowledge as they attempt to carry out their job tasks. Also there will be weekly meetings in order to have an effective performance evaluation which will be done to evaluate the weekly activities and to identify how best to improve the worker’s skills and abilities.

This will allow employees to gain constructive feedback with regards to deficiencies if any and assist in determining if employees are have the right behaviour and attitude to complete task towards achieving the goals of the organisation. 8. 2 Compensation In compensating employees their ability, education and skills should be considered as well as the task assigned to them. Therefore full-time employees will be remunerated based on their job functions and their responsibilities as well as the hours worked. They will also benefit from special discounts.

A revision of salary will be performed based on the rate of inflation and profitability of the business and will be revised by the Human Resources Management. 9. 1 Location The Argyle Mountain Piggery prospected location is the community of Argyle District in Westmoreland. Based on the feasibility study the demands is high for pork in Argyle District, as the community of Argyle Mountain and its surroundings consume about 2,053 pigs annually, which is equivalent to approximately 350,030 pounds of pork. 9. 2 Technical Requirements 9. 2. 1 Business Processes

Argyle Mountain Piggery is proposed to start with nine sows and one boar, four pens and a small storage unit for feed and the equipment and tools. For the first six months of operation the business will have three employees where two will be working shifts on weekdays and the other on the weekend. As the business expands more man power will be employed. Butcher shops are the main market for Argyle’s Pigs, and contracts will be made with these butchers as well to slaughter animals for the organisation in order to supply carcasses to other customers such as Restaurants, Meat shops and supermarkets. . 3 Equipment Required Argyle Mountain Piggery would be considered a retail business as pigs will be reared and sold to various consumers of the product. On the farm certain equipment and supplies are needed to carry out operations including: * Pig Feeding and Watering Equipment * Waste Disposal Equipment * Pest and Disease Control Supplies * Pig house cleaning Equipment * Pig Weight and Handling Equipment 9. 4 Suppliers of Raw Material

The farm supplies and equipment will be purchased at AgroGrace farm and garden centre as well as Rapid True Value which are both located at the Fairview Shopping Centre, Bogue Montego Bay. The stores are located at approximately half an hour from Argyle Mountain. Supplies can also be ordered on a monthly basis. 9. 5 Utilities 9. 5. 1 Electricity Electricity for the farm will be supplied by the Jamaica Public Service Company (JPS Co. ). There might be possible considerations of alternatives if cheaper such as a generator or solar energy to be a part of the going green concept for protecting the environment. . 5. 2 Water Water will be obtained from the National Water Commission (NWC) as well a river is located in the community which water could be taken from, carried and stored in a tank that could be utilized in the carrying out of more domesticated processes such as cleaning pens, flushing toilet facilities, washing equipment etc. 9. 6 Opening Hours The piggery will be in operation for seven days of the week from Sunday to Sunday. Purpose of the Business Plan In order to emphasize the issues and expectations of the Argyle Mountain Piggery, this business plan was prepared.

Blurred issues such as the target market, the aims of the business, the market segment and the proper pricing strategy will be addressed. These factors will aid the competitiveness of the proposed business and allow the future success of the venture. In doing the business plan the factors mentioned previously will be harmonized as the areas of weaknesses and strengths will be identified and also the prediction of possible problems before they might occur. The business plan however, will not be definite as there maybe future changes in the proposed business so the business plan will be made to accommodate these changes.

The business plan will also outline the duties and responsibilities of the professionals of the business which will give them a chance to concentrate their efforts on their specific tasks. A clear method of operation will be outlined to further guild the members of the proposed venture. Also the business plan is to be used as a reference for loans and investment funds that will be borrowed for the purpose of the proposed business as lending agencies will seek proof and a properly expressed idea before they invest money.

Also for the purpose of borrowing money, the business plan will outline a feasible method of obtaining capital for the repayment of the loan and also for the sustainability of the proposed venture. The business plan will also be used to attract new employees as well as new partners for the future expansion of the proposed venture as this expansion will trigger a bigger revenue as well as profit. ? Marketing Arrangements The market targeted by the Argyle Mountain Piggery would generally be supermarkets/ mini marts, public butchers attached to an abattoir, meat shops, restaurants as well as jerk establishments.

These establishments are singled out because of their basic operations would require the service the proposed business would provide. The characteristics of the pork being offered by Argyle Mountain Piggery will possess: soundness, muscling, free of excess fat, width of body, frame size, general appearance. Soundness – The pig’s soundness is determined by the amount of space the pig has to move as this will determine the amount of ‘exercise’ the pig will get. This will ultimately affect the overall muscle and fat development. This is important for the soundness as well as the appearance of the pigs.

A level-topped pig will have a more correct slope to its shoulder and legs and have an advantage in ease of movement. Muscle – Our pigs will possess two important things that contribute to the evaluating of its muscle are the amount and type of muscle as the grade of the pigs would have been carefully selected and bred to yield the best results for the quality. Freedom of excess fat – Excess fat on the finished product is not a desirable feature for customers with the exception of persons in the business of jerk as the fat is used as a part of the jerking procedure; therefore, pigs with very little fat should be ideal.

This can also be linked to the grade of the pigs; however the grade that is targeted by the proposed venture will help to solve this matter. Frame Size – Frame refers to the skeletal size of the pig. Frame size is determined by the grade of pigs. The grade of pigs targeted is of the Duroc and Yorkshire breed as these pigs have the desired skeletal frame and when breaded with one another will generate good results. The prices of the produce from the piggery will vary based on the orders received from the market. The pigs will be sold as either live weight of dead weight.

The offal will also be offered. With that established, a regulated pricing strategy must be employed. Pigs sold at live weight (average weight being 240 pounds) would be sold at $170. 00/lb while pigs sold at dressing/dead weight would be sold at $185. 00/lb. The offal will be sold at a price of $100. 00/lb. Specific cuts will also be priced at the dead weight price per pound. Discounted prices may be considered when over a certain amount of meat or pigs are purchased. The penetrating pricing strategy will be used to gain access to the market as well as to gain a loyal customer base.

The distribution of the products (meat) will be done via a refrigerated bus and the live pigs will be delivered to the respective clients using an open back, two (2) ton truck. However, the appropriate preparations will be made in the case of the client having an operational vehicle to do their own transport. Argyle Mountain Piggery would be advertised on a wide scale with much emphasis being placed on popularizing the business. Argyle Mountain Piggeries would take advantage of the new and innovative social networks to promote and advertise its services.

The Jamaica Yellow pages will also be considered as a source of advertisement. Newspapers advertisements will also be utilized. This will be done on a continually until a customer base is formed. Flyers will be distributed to allow persons to become aware of the new and upcoming business. The final promotional strategy will be via word of mouth from our developing customer base. However, this method is not necessarily directly related to the members of the business as we would rely on the satisfied customers to relate their satisfaction to potential clientele. Mission Statement

Argyle Mountain piggery aims to provide the best grade of pork and pigs to the community and its clients we aim to raise the standard of Jamaican pork and find more innovative ways to advertise the versatility of pig meat. Corporate Goals * To operate a sustainable and profitable business * To rare and sell high quality pigs * To expand in accordance to the growth of the business to accommodate three butcher shop and four distribution centres * Competitiveness of the business will be maintained by continuous market research into competitors and consumer demands. To achieve a contract with Grace and five major hotels in Jamaica * To appeal to a wider and more diverse target market in the Caribbean * To maintain a healthy and profitable relationship with members of the clients. The organization chart for Argyle Mountain Priggery Financial Manager Financial Manager Managing Director Managing Director Human Resource Manager Human Resource Manager Marketing Manager Marketing Manager Administrative Manager Administrative Manager Production & Operation Manager Production & Operation Manager Auxiliary staff Auxiliary staff Oneika (Managing Director)

Vancine (Financial Manager) Adrean Dawkins (Human Resource Manager) Gary-Ann Robinson (Marketing Manager) Derain Harris (Administrative Manager) Nastassia Rowe (Production & Operation Manager) The Role and Responsibility of Each Personnel Managing Director Their main responsibility is to provide strategic direction, an operating framework and an effective management unit. * Ensuring all resources are utilised * Establish objectives with employees in support of these plans in order to achieve current year profit targets whilst ensuring sustainable longer term growth and profitability. Ensure that the sales function across the business units maintains effective and profitable relationships with existing customers * Personally participating in major negotiations/discussions as required. * Ensure that the manufacturing and site management processes of the units employ best practice techniques to achieve maximum operational efficiency * Establish consistency in production standards * Ensure that the businesses purchasing function maintains an effective/mutually beneficial relationships with suppliers. * Ensure that the local purchasing function maintains effective relationships with customers.

Financial Manager Some of the main functions of a Finance Manager include: * Setting up financial goals and planning strategies to reach these goals, * Keeping a high check on profits and loss, * Monitoring cash flows * Developing procedures in order to minimize financial risk * decide how much of the company’s profits should be returned into investment * Paying taxes * Development and Implementation of financial policies and systems * Preparation of various financial reports * Monitor employment costs and productivity levels Develop and analyse information to assess the current and future financial status of business. * Establish procedures for the control of assets, loan collateral, and securities, in order to ensure safekeeping. * Evaluate data pertaining to costs in order to plan budgets. * Network within target area to find and attract new potential customer. * Approval and rejection of, lines of credit, personal loans. Human Resource Manager Human resource managers may perform the following tasks: * determine Monetary payments or wages and/or salaries determining a cost-effective pay structure that will attract and retain competent employees * Determining the proper incentive for employees to work hard * Oversee the maintenance of personnel records * Coordinate occupational health and safety programs * make sure of compliance with law * Responsible for the hiring of employees and the dismissal employees * ensure each person is qualified to perform hisher responsibility * Provide information about policies, job duties, working conditions, wages, and employee benefits * resolve disputes administering disciplinary procedures * ensure that pay levels of all employees are perceived as fair * responsible for the evaluation of employees performance Marketing Manager * Is responsible to promoting the product to the public * Establish advertising accounts for the business with clients and advertising agencies * Develop efficient ways of advertising the company * Developing and maintaining effective continuous marketing strategies Production & Operation Manager

It is concerned with managing the process that converts inputs (in the forms of materials, labour, and energy) * Review financial statements, sales and activity reports, and other performance data to measure productivity and goal achievement and to determine areas needing cost reduction and program improvement. * Ensuring that business is operating as efficiently as possible in terms of using as few resources as needed while maintaining the products quality * Concerned with overseeing, designing, controlling the process of production * To check that the machines and equipment’s are n good working condition. * Manage staff, preparing work schedules and assigning specific duties * To maintains the machinery and plant so that it produce quality work * Provide and implement strategies for a safe working environment * Monitor the businesses so that it stays within budgetary limits * Responsible for meeting customer request * Oversee hired personnel Administrative Manager He will supervise the day-to-day operation of the farm to see to it that: * The assets are in good condition The equipment for the farm is present and accounted for * To communicated with other partners in getting work done accordingly * Approving invoices. * Maintains professional and technical knowledge by attending educational workshops * This person is responsible for all the documentation of the company. He will organised and supervisor all the work to be done by the Administrative. Appendices Tools used in the feasibility study. Questionnaire Good day. The aim of this questionnaire is to determine the market for pork in the Argyle Mountain district and surrounding area.

Your honesty is greatly appreciated as it will help in establishing the feasibility of the proposed piggery. All information you provide will be held confidential. 1. What is the nature of the business you operate? a. Restaurant b. Supermarket c. Slaughter House d. Other__________________________ 2. How long have this business been operational? e. 1-3 years f. 4-6 years g. 7-9 years h. 10 years and over 3. How frequently do you buy pork/pigs? i. Weekly j. Biweekly k. Monthly l. Quarterly 4. What quantity of meat (dead/live) would you normally require per purchase? . Between 50-100lbs n. Betweent0100-500lbs o. Between500-1000lbs p. Other__________________ 5. In what manner would you prefer the pork products to be weighed? q. Live weight only r. Dead weight only s. Dead weight with offal t. Offal only 6. Indicate by ticking in the box provided what cuts of the pork you prefer? * Shoulder square cut * Loin, back and ribs * Leg and ham trim * Middle and rack * Rump and shoulder picnic * Whole pig/carcase 7. State the price per pound that you are prepared to pay for live meat? A. 100-130 B. 130-160 C. 60-200 8. State the price per pound that you are prepared to pay for carcase? A. less than $150 B. $150-$170 C. $170-$200 9. State the price per pound that you are prepared to pay for offal? _____________________ 10. Would you buy pork from a piggery based in your community? Yes No 11. If possible what duration of contract would you be prepared to enter into with the proposed business? u. 1-2 year v. 3-4 years w. 5 years and over x. Not interested 12. Who is your current supplier of pork/live pigs? ___________________________________ 13.

Do you currently have any problems with this supplier? Yes No If yes state the problem ________________________________________________________________________________________________________________________________________________________________________________________________________________________ 14. Would you prefer the pork you order to be delivered? YesNo Profile of Management Team Name: Adrean Dawkins Age: 19 Position: Human Resource Manager Qualification/s: BSc. Environmental Health Name: Oneika Robinson Age: 20 Position: Managing Director

Qualification: BSc. Environmental Health Name: Vancine Brown Age: 20 Position: Finance manager Qualification: BSc. Environmental Health Name: Nastassia Rowe Age: 21 Position: Production & Operation Manager Qualification/s: BSc. Environmental Health Name: Derain Harris Age: 20 Position: Administrative Manager Qualification: BSc. Environmental Health Name: Gary-Ann Robinson Age: 19 Position: Marketing Manager Qualification: BSc. Environmental Health Letter of Commitment form costumer DATE: __/__/__ BUSINESS NAME: I…………………. (Name) the current ……………………. Position in business), hereby commit to a contract with Argyle mountain piggery, to receive a monthly supply of live pig/pork from the company for a period ……. year. I therefore acknowledge that argyle Mountain piggery is my one and only supplier of pig related meat. My company will be responsible for the pick-up and delivery of the product, that will be picked up at every……….. days. The business will pay Argyle Mountain Piggery for it product at the start of every month. Signature of business manager…….. …………………… Signature of representative of Argyle Mountain Piggery……. …………………. Signature of Argyle Mountain Piggery manager……. …………………… Witness signature…………………………… Letter of Commitment to Supplier DATE: __/__/__ BUSINESS NAME: We the partners of Argyle Mountain Piggery, hereby commit to a contract with HI-PO, to receive a monthly supply of pig feeding from the company for a period five year. I therefore acknowledge that HI-PO pig feeding will be our one and only supplier of pig feeding for the stated time period. My company will be responsible for the pick-up of the product that will be picked up at every weekend.

The business will pay HI-PO for it product at the start of every month. Signature of sales manager…….. …………………… Signature of Administrative Manager of Argyle Mountain Piggery……. ……………………. Signature of Argyle Mountain Piggery manager……. …………………… Witness signature………………………… Meat Cuts that will be provided by Argyle Mountain Piggeries Label of Identification For Argyle Mountain piggery Promotional campaign As a new business vigorous and aggressive promotional and advertising strategy will be employed.

The proposed business will need to build up a reliable customer base before its official opening which will be ten months after operations begin. At this point in time the business will have a constant monthly supply of pigs. The most effective ways of informing the public and prospective customers of the proposed business is via popular radio programs on various radio stations such as mellow, love 101, ZIP etc; radio is the best means to advertise the proposed business because it has a vast audience, capable of reaching the target market as well as more potential customers.

It is also more affordable and practical than television. The internet is also a good avenue for advertising, popular websites and social networks such as Facebook and twitter will also be targeted for adverts since a substantial number of potential customers frequently visit these sites; it is also a means of free advertising and promoting. Ads will be placed in the Jamaica Yellow Pages, the national directory of the island. Advertisements will be placed in the Western

Mirror, Observer and Jamaica Gleaner; these media also have a large audience and will successfully reach prospective customers. Flyers will be designed and placed at strategic central point’s such as community notice boards and Bus Parks in order to promote the business. Within Month ten of operation the business will have its official opening. This mile stone will be marked by a cook out; this cook out will be arranged with the primary intention of swaying potential customers to be official clients of the proposed business; A cook out is an ideal promotional and advertising strategy.

Prospective customers will be given the opportunity sample the product; Pigs will be prepared whether jerked, stewed-, curry pork etc. they will be able to draw their own conclusion about the quality of the product and should most likely be impressed. Live pigs will also be on show to exhibit their superior qualities. Flyers and brochures will be distributed prior to this even to enable maximum turn out. Floor plan Feeding hole Feeding hole Feeding hole Feeding hole Feeding hole Feeding hole Feeding hole Feeding hole

Industry analysis It is estimated that pig production in Jamaica accounts for less than 2. 0% to the country’s gross domestic product. The industry provides direct employment of some 5900 persons, representing 3. 1% of the total agricultural labor force. However, only eleven per cent (13%) of pig farmers depends fully on pig production as a means of subsistence and finance. Pig production and marketing contribute to indirect employment and income through linkages with the food service industries and other services.

Argyle Mountain Piggery is a potential establishment which will be dealing with the rearing and catering of pigs. It will be located in the argyle mountain area where land is owned by one of the partners, and it will be catering for the people of Jamaica especially in the parish of Westmoreland. The base for choosing this site is that it is deemed accessible to all potential consumers and will boost marketing. The business will be equip will the required equipment in order to run such an establishment.

A pen will be build which will house the pigs until they are ready to be slaughtered or sold to the public, there will also be a storage unit which the feed and other material for the lifep of the pig will be stored and kept clear from contaminates, a shed will also be built in order to keep grounds equipment safe from looting. A slaughter house will also be built and measures put in place to keep it sanitary since the pigs will be killed in this designated place.

The major competitors to the proposed business includes Butcher Livingston and Green Grosser’s Meats and also other small scale pig farmers, however this would pose a challenge in finding consumers as these other competitors would have already been familiar and have loyalty with the consumers. The advantage which the proposed business would have is being close to the region to which most of the customers are located; this would almost guarantee our share of the market, due to ease of travel, accessibility, convenience.

Even though the amount of competitors are in the area are in a mid region most of them are on small scale, therefore they are likely to have a negative respond to this business venture. Given the fact that most of the competitors are on small scale, there is inconsistence in the service and product provision also poor customer services, unreasonably high prices and weak promotional strategies, so I strongly believe that the business can complete with the competitors. The Companies Act (Act of 2004) is the major regulatory laws that stipulate the proceedings of any organization within Jamaica.

There are subsidiary regulations that guide the process of registration of a business and the consequences that are attached to any offences that may be committed. It rules for the membership proceedings of the country and all that is attached to business laws. The Public Health Act also serves as a regulatory body as it relates to food handling and meat inspection. It states that each members of the business be administered with a food handler’s permit, and also the regulation to which slaughtering of swine and also the sanitary conditions of the business should be in.

Implementation Schedule. 1st 30 days before start of the business The 1st month before for the start up of the business would see to include the conception of the idea of starting the argyle mountain piggery and also look at the partners to which would be involved in the creation the business, after the visualization of this idea is complete the commencing of a feasibility study would be done in order to gain specific information to a conclusion would be drawn if the business is feasible or if it is not .

Next 20 days before start of the business After a feasibility study is done time will be spent in order to create a business plan which will be most suitable for the proposed business to be most effective, it will include information which will discuss topics such as marketing strategies/arrangement, industrial analysis, and also the purpose of the business . Next 29 days before start of the business

This period would be used to gain funds for the start up cost of the proposed business and the main source of these funds would be in acquiring a bank loan which would be repayable over a period of time, other funds would be gain via different mediums in order to successfully have enough capital to launch the proposed business. Next 50 days before start of the business

After the granting of a loan and accumulation of other funds from different sources, construction would begin, and these constructions would include; pig pen, 2 sheds, slaughter house, any other building that will be needed will be provided by a structure which is already on the premises. All of the construction that would be taken place would be on the land which is owned by one of the partners within in the business so no time would be wasted in search and buying/leasing land for use of the piggery.

Next 53 days before start of the business The livestock (pigs) which will be grown on the farm would have to be sourced before the opening of the proposed business so this would take some time as the best quality would need to be sought after before being bought. Time would also be needed to source equipment, material, feed and other farm supplies that will be used by the business as the most economical prices would be sought after. Also the hiring of staff would also be done to facilitate the business operations.

Next 2 days before start of the business These days would be needed to sort out and set up the equipment that would be used by the business, and also to make sure that all the necessary document are in place and up to date. Next 1 day before start of the business This would be the official launch of the business, meaning the doors would be open to customers and also sales would commence on this day Next 60 days after start of the business

This would be the period in which advertisements would be sent out seeking persons to work with the proposed business doing duties assigned to them, interviews are don’t in order to select the rite persons for the job. In this same period there would be a training period for the new and existing employees to ensure productivity is at a high. Next 21 days after start of the business These next days would be for normal operations but at the same time new partners or new investors would be sought; also strategies to attract new customers would be implemented and put into place in this time period.

Next 10 days after start of the business In this period the purchasing of supplies in order to continue running the business efficiently would be done in or to replenish what was used in the 1st place, depending of well the previous product was these days would be needed to get better products to be used by the business. Next 25 days after start of the business In these next up coming days, the business will try to source and buy equipment or jus try to make the business more efficient in its operations e. . implementing the nipple system for pigs which limits to loss of water. Next 17 days after start of the business These days will be used to fine tune who does what and when who does what, this will be done in order to build efficiency and also build a stronger working relationship as people would have jus began to settle down and get comfortable with each other. Gant Chart Business Feasibility

The findings of the feasibility study showed that there is a high demand for the Argyle Mountain Piggery, so when the proposed business is actually started, it is going to be very successful. This statement is based on the fact that eighty eight percent of the respondent said they were willing to support the proposed business. Also, Another reason for the expected success of Argyle Mountain is the fact that the demand for all parts of the pig are high, with dead weight at sixty percent, live weight at thirty three percent and dead weight with offal at seven percent.

The feasibility study that was carried out also equipped the operators with the knowledge that a large number of the prospective customers would want a reasonable amount of pork on a regular basis; so the demand will be great. The study also revealed the different part of the pig that the proposed buyers would like, so in this case the operators know the specific parts that the different customers want and would be able to satisfy their needs; thus adding to the success of the business.

When entering a business, there are some risks that come along with it. The business risks of proposed Argyle Mountain Piggery are the possibility of a recession, when there is a recession most of the potential clients are likely to spend less in purchasing from the Argyle Mountain Piggery; so there is a high possibility of failure. Other market risks that the piggery might experience include sales variation, which cannot be avoided. These may occur as a result of financial situations of the prospective customer. Therefore sales may fluctuate.

A decrease in sales means difficulties in financing fixed costs such as wages, rent and other overheads. A difficulty will also be faced in maintaining the business, as the cost of the raw materials is very high. Another business risk is that of the fluctuation of currency, the Jamaican dollar is losing value on a daily basis therefore the cost to purchase most foreign currency is very high. A constraint will also be placed on the profitability of the business due to the high interest rates at which most banks in Jamaica lend money.

So borrowing money at those high interest rates will cause more strain on the business in terms of making a profit. Business risks such as technology and regulatory aspect are also present. Technology might cause changes and in this case employees will have to be retrained to the more advanced technology and this will in turn cause the business more expense. Political/regulatory aspects may also be a risk to the Argyle Mountain Piggery, since licenses and approval are necessary for the business to be legal and it is not a guarantee that these will be approved by the government.

Even though the competitors were indentified in the feasibility study, it is highly likely that a new competitor can enter the market and be stronger than Argyle Mountain Piggery. The business will then be forced to change its marketing strategy by lowering the cost and in this case the quality will definitely have to be improved. It is very important for the environment to be protected and the operators of the Argyle Mountain Piggery are aware of this so the necessary precautions will be taken to keep it safe.

So the waste materials that are generated will be treated and sold to farmers as manure/ fertilizer, as it contains nutrients that will increase crop yield and during this process appropriate storage will be done in order to minimize the amount of greenhouses gases been emitted. In the case where it is not treated a private contractor will be hired to dispose of the waste. The materials and equipment used in the production of the product, will be environmentally friendly as operators are going green in order to sustain the environment.

Governance Structure

The Board of Directors is the strategy body of LVMH Moet Hennessy – Louis Vuitton SA. The competence, integrity and responsibility of its members, clear and fair decisions reached collectively, and effective and secure controls are the ethical principles that govern the Board. The key priorities pursued by LVMH’s Board of Directors are enterprise value creation and the defense of the Company’s interests. LVMH’s Board of Directors acts as guarantor of the rights of each of its shareholders and ensures that shareholders full all of their duties.

The Company adheres to the Code of Corporate Governance for Listed Companies published by AFEP and MEDEF. The Board of Directors shall have a maximum of 18 members, a third of whom at least are appointed from among prominent independent persons with no interests in the Company The number of Directors or permanent representatives of legal entities from outside companies, shall be limited to four. Apart from the selection of the Company’s management structure and the appointment of the Chairman of the Board of Directors, Chief Executive Officer and Group Managing.

Director(s), the principal missions of the Board of Directors are to:

• ensure that the Company’s interests and assets are protected;
• define the broad strategic orientations of the Company and the Group and ensure that their implementation is monitored;
• approve the Company’s annual and half-yearly financial statements;
• review the essential characteristics of the internal control and risk management systems adopted and implemented by the Company;
• ensure that major risks to which the

Company is exposed are in keeping with its strategies and its objectives, and that they are taken into account in the management of the Company; verify the quality, reliability and fairness of the information provided to shareholders concerning the Company and the Group, in particular to ensure that the management structure and the internal control and risk management systems are able to guarantee the quality and reliability of financial information published by the Company and to give a true and fair view of the results and the financial position of the Company and the Group; – set out the organization principles and procedures for the Performance Audit Committee; – disseminate the collective values that guide the Company and its employees and that govern relationships with consumers and with partners and suppliers of the Company and the Group; – promote a policy of economic development consistent with a social and citizenship policy based on concepts that include respect for human beings and the preservation of the environment in which it operates. The Board of Directors shall hold at least four meetings a year Decisions by the Board of Directors shall be made by simple majority vote and are adopted as a board. If they deem appropriate, independent Directors may meet without requiring the presence of the other members of the Board of Directors.

For special or important issues, the Board of Directors may establish one or more ad hoc committees. Each member of the Board of Directors shall act in the interests and on behalf of all shareholders. Once each year, the Board of Directors evaluates its procedures and informs shareholders as to its conclusions in a report presented to the Shareholders’ Meeting. In addition, at least once every three years, a fully documented review of the work of the Board, its organization and its procedures is conducted. The Shareholders’ Meeting shall set the total amount of Directors’ fees to be paid to the members of the Board of Directors. This amount shall be distributed among all members of the Board of Directors and the Advisors, if any, on the recommendation of the members of the Directors’ Nominations and Compensation Committee, taking into account their specific responsibilities on the Board A specialized committee responsible for auditing performance operates within the Board of Directors, acting under the responsibility of the Board of Directors. The Performance Audit Committee shall be made up of at least three Directors appointed by the Board of Directors.

At least two thirds of the members shall be independent Directors. The majority of the Committee’s members must have held a position as a Managing Director or a position involving equivalent responsibilities or possess specific expertise in financial and accounting matters. The Board of Directors shall appoint a Chairman of the Committee from among its members. The maximum term of the Chairman of the Committee is five years. Neither the Chairman of the Board of Directors nor any Director performing the duties of Chief Executive Officer or Group Managing Director of LVMH may be a member of the

Committee

A Director may not be appointed as a member of the Committee if he or she comes from a company for which an LVMH Director serves as a member of a committee comparable in function. The principal missions of the Committee are to:

• monitor the process for preparing financial information, particularly the individual company and consolidated nancial statements, and verify the quality of this information;
• monitor the statutory audit of the individual company and consolidated financial statements by the Statutory Auditors , whose conclusions and recommendations it examines;
• ensure the existence, pertinence, application and effectiveness of internal control and risk management systems, monitor the ongoing effectiveness of these systems, and make recommendations to the Chief Executive Ofgovernance structurecer concerning the priorities and general guidelines for the work of the Internal Audit team;
• examine risks to the Statutory Auditors’ independence and, if necessary, identify safeguards to be put in place in order to minimize the potential of risks to compromise their independence, issue an opinion on the fees paid to the Statutory Auditors, as well as those paid to the network to hich they belong, by the Company and the companies it controls or is controlled by, whether in relation to their statutory audit responsibilities or other related assignments, oversee the procedure for the selection of the Company’s Statutory Auditors, and make a recommendation on the appointments to be submitted to the Shareholders’ Meeting in consideration of the results of this procedure;
• analyze the exposure of the Company and the Group to risks, and in particular to those identified by the internal control and risk management systems, as well as material off–balance sheet commitments of the Company and the Group; review major agreements entered into by Group companies and agreements entered into by any Group company with a third-party company in which a Director of the LVMH parent company is also a senior executive or principal shareholder. Significant operations within the scope of the provisions of Article L. 225-38 of the French Commercial Code require an opinion issued by an independent expert appointed upon the proposal of the Performance Audit Committee;
• assess any instances of conflict of interest that may affect a Director and recommend suitable measures to prevent or correct them.

Compensation Committee

The Committee shall meet at least twice a year, without the Chairman of the Board of Directors, the Chief Executive Officer and the Group Managing Director(s), before the Board of Directors’ meetings in which the agenda includes a review of the annual and half-yearly parent company and consolidated financial statements. If necessary, the Committee may be required to hold special meetings, when an event occurs that may have a significant effect on the parent company or consolidated financial statements. Decisions of the Committee shall be made by simple majority vote and shall be deemed to have been reached as a board.

The proceedings of each Committee meeting shall be recorded in minutes of the meeting. The Committee shall report on its work to the Board of Directors. It shall submit to the Board its findings, recommendations and suggestions. The Committee may request any and all accounting, legal or financial documents it deems necessary to carry out its responsibilities. The Committee may call upon the Company’s staff members responsible for preparing the financial statements, carrying out internal control procedures, conducting internal audits, applying risk management or cash management procedures, investigating tax or legal matters, as well as the Statutory Auditors, to appear before it on any number of occasions to address issues in detail, without requiring the presence of the Chairman of the Board, the Chief Executive Officer, or Group Managing Director(s) of LVMH. These meetings may also take place in the absence of those responsible for the accounting and financial functions. After having duly notified the Chairman of the Board of Directors, the Committee may seek assistance from external experts if circumstances require. The Committee members and its Chairman may receive a special Director’s fee, the amount of which shall be determined by the Board of Directors and charged to the total financial package allocated by the Shareholders’ Meeting. 1. Subject to the exceptions provided by law, the Board of Directors is composed of three to eighteen members, who may be individuals or legal entities appointed by the Ordinary Shareholders’ Meeting. A legal entity must, at the time of its appointment, designate an individual, who will be its permanent representative on the Board of Directors. The term of office of a permanent representative is the same as the legal entity that he represents. . Each member of the Board of Directors must during its term of office own at least five hundred (500) shares of the Company. If, at the time of its appointment, a member of the Board of Directors does not own the required number of shares or if, during its term of office, it ceases to be the owner thereof, it shall dispose of a period of six months to purchase such number of shares, in default of which it shall be automatically deemed to have resigned. 3. Nobody being more than seventy years old shall be appointed Director if, as a result of his appointment, the umber of Directors who are more than seventy years old would exceed one-third of the members of the Board. Directors are appointed for a term of three years. The duties of a Director shall terminate at the close of the Ordinary Shareholders’ Meeting convened to approve the accounts of the preceding fiscal year and held in the year during which the term of office of said Director comes to an end. A salaried employee of the Company may be appointed as a Director provided that his employment contract antedates his appointment and corresponds to a position actually held.

In such case, he shall not lose the bene? t of his employment contract. The number of Directors bound to the Company by an employment contract may not exceed one-third of the Directors in office. The Board of Directors shall elect a Chairman, who must be an individual, from among its members. It shall determine his term of office, which cannot exceed that of his office as Director and may dismiss him at any time. The Board shall also determine the compensation to be paid to the Chairman. The Chairman of the Board of Directors cannot be more than seventy-? ve years old.

The Board may always elect one or several Vice-Chairman(men). It shall determine their term of office which cannot exceed that of their respective office as Director. The officers of the meeting are the Chairman, the ViceChairman(men) and the Secretary. The Secretary may be chosen from outside the Directors or the shareholders. The Board determines its term of office. The Secretary may always be re-elected. The Board, convened by its Chairman, meets as often as required by the interests of the Company. The Board of Directors sets guidelines for the Company’s ctivities and shall ensure their implementation. Subject to the powers expressly granted to the Shareholders’ Meetings and within the limits of the corporate purpose, it addresses any issue relating to the Company’s proper operation and settles the affairs concerning it through its resolutions. In its relations with third parties, the Company is bound even by acts of the Board of Directors falling outside the scope of the corporate purpose, unless it demonstrates that the third party knew that the act exceeded such purpose or that it could not have ignored it given the circumstances, it being speci? d that mere publication of the Bylaws is not sufficient proof thereof. The Board of Directors performs such monitoring and verifications as it deems appropriate. Each Director receives all necessary information for completing his assignment and may request any documents he deems useful. The Company shall be audited, as provided by law, by one or more Statutory Auditors legally entitled to be elected as such. When the conditions provided by law are met, the Company must appoint at least two Statutory Auditors.

Each Statutory Auditor is Appointed by the Ordinary

Shareholders’ Meeting. One or more supplementary deputy Statutory Auditors, who may be called to replace the regular Statutory Auditors in the event of death, disability, resignation or refusal to perform their duties, are appointed by the Ordinary Shareholders’ Meeting. Shareholders’ Meetings shall be convened and held as provided by law. A Shareholders’ Meeting is chaired by the Chairman of the Board of Directors or, in his absence, by the oldest ViceChairman of the Board of Directors or, in the absence of the latter, by a Member of the Board for that purpose.

If no chairman has been appointed, the Meeting elects its Chairman. The voting right attached to a share is proportional to the share of the capital it represents. When having the same nominal value, each share, either in capital or redeemed (“de jouissance”), gives right to one vote. However a voting right equal to twice the voting right attached to other shares, with respect to the portion of the share capital that they represent, is granted: – to all fully paid up registered shares for which evidence of registration under the name of the same shareholder during at least three years will be brought; to registered shares allocated to a shareholder in case of increase of the capital by capitalization of reserves, or of pro? ts carried forward or of issue premiums due to existing shares for which it was entitled to bene? t from this right. The Ordinary Shareholders’ Meeting makes decisions which do not amend the Bylaws. It is convened at least once a year, within six months from the end of each fiscal year to vote on the accounts of that fiscal year. In order to pass valid resolutions, the Ordinary Shareholders’ Meeting, convened upon first notice, must consist of hareholders, present or represented, holding at least one-fifth of total voting shares. The deliberations of an Ordinary Shareholders’ Meeting, convened upon second notice, shall be valid regardless of the number of shareholders present or represented. The resolutions of the Ordinary Shareholders’ Meeting are approved by a majority of the votes of the shareholders present or represented. The copies or abstracts of the minutes of the Meetings shall be validly certified by the Chairman of the Board of Directors, the Chief Executive Officer, or the Secretary of the Meeting. Ordinary and Extraordinary Shareholders’ Meetings shall exercise their respective powers as provided by law. The dividend payment terms are de? ned by the Shareholders’ Meeting or, if the Meeting fails to do so, by the Board of Directors. However, dividends must be paid within a maximum period of nine months after the fiscal year-end, unless such period is extended by Court order. (The reference for the Company is the AFEP-MEDEF “Corporate Governance Code for Traded Companies”. ) Main SHAREHOLDERS Christian Dior, the luxury goods group, is the main holding company of LVMH, owning 42. 36% of its shares, and 59. 01% of its voting rights. 5] Bernard Arnault, majority shareholder of Dior, is Chairman of both companies and CEO of LVMH. the only declared major shareholder in LVMH was Groupe Arnault, the family holding company of Bernard Arnault. The group’s control amounted to 47. 64% of LVMH’s stock (with 42. 36% held through Christian Dior S. A. and 5. 28% held directly) and 63. 66% of its voting rights (59. 01% by Dior and 4. 65% directly). [5] A further 2. 43% of shares were declared as treasury stock, with the remainder being free float.

RICOMINCIA DA QUI STAKEHOLDERS COMPETITORS: LVMH competes in the luxury market with an array of small private and publicly held companies that make designer clothing, wine, watches, and other luxury goods. Unlike LVMH, most of these companies usually have only one brand in their portfolios. The most direct competitors to LVMH are Pinault-Printemps-Redoute (PPR), a French luxury holdings company that includes such brands as Yves Saint Laurent and Gucci, and Compagnie Financiere Richemont, a Swiss luxury company that includes such brands as Cartier and Montblanc. ?PPR is a French retailer and luxury goods company. It is very similar to LVMH in both size and earnings.

One distinct advantage LVMH holds over PPR is international diversification. Though a majority of PPR’s brands are luxury, it also owns Puma, a sportswear line for men and women that is more affordable and as a broader consumer base, thereby increasing its market. The luxury brands that directly compete with LVMH fall under Gucci Group and are: Alexander McQueen, Bottega Veneta, Balenciaga, Yves Saint Laurent, Stella McCartney, Gucci, Boucheron and Sergio Rossi. ?Compagnie Financiere Richemont is much smaller than LVMH in terms of revenue, but earned a similar operating margin on its revenue.

Richemont is primarily focused on watches and jewelry. Therefore, in its main business Richemont does not face stiff competition from either company. The most competition comes from the fashion and leather goods divisions, namely Dunhill, Azzedine Alaia, Shanghai Tang, Chloe and the leather goods brand Lancel. All are luxury brands and compete directly with LVMH. [8] ? Valentino Fashion Group S. p. A is an international luxury goods conglomerate. It owns the prestigious brand Valentino as well as luxury brand Hugo Boss.

It also has licenses for Marlboro Classics and M Missoni (a lower-priced line inspired by the designs of privately-owned Missoni). Valentino Fashion Group also has its own brands: Lebole, Oxon and Portrait. In addition, Valentino Fashion Group owns 45% of the luxury American brand Proenza Schouler. Like LVMH, Valentino owns a number of other luxury brands including Valentino and Hugo Boss produce apparel, accessories and fragrances for both men and women. Both conglomerates sell their goods side-by-side in luxury department stores as well as freestanding boutiques.

SUPPLIERS: Same behavior as LVMH + acting well towards nature

To ensure effective environmental control, the companies of the Group are conducting an awareness program with their suppliers and subcontractors. Designing packaging that prevents the waste of raw materials and generates smaller waste volumes is a principle of both good management and respect for the environment. This can only be done if we thoroughly understand the effects of the product on the biosphere, from manufacture to disposal. This is the role of Life Cycle Analysis, a method applied by the LVMH group since 1993, in its initial study on the path followed by a standard Hennessy product.

The implementation of actions to reduce the products impacts throughout their life cycle implies to work closely with the suppliers and subcontractors. Programs to make lighter packaging are critical and are coordinated at Group level. We start studying a product’s packaging from the product’s design stage. The design/development, purchasing and marketing teams work with suppliers in multi-disciplinary groups and use a value analysis method to reconcile impeccable quality and aesthetics for the consumer with marketing requirements, optimized manufacturing processes, and our desire to use raw materials sparingly.

Preserving biological diversity is a vital issue for the evolution of life on earth. LVMH group has built its businesses on a sustainable relationship with the natural environment, and consequently uses elements that are neutral or without impact on our ecosystems, either by growing plants or raising animals, or by using surplus elements. In this way, it complies in an exemplary manner with the regulations protecting rare species. The research work of LVMH’s R&D laboratories in the village of Koro in Burkina Faso continues to bear fruit.

In the spring of 2004, the Bikini line of Christian Dior acquired a new active ingredient: Anogelline. EMPLOYEES The group currently employs more than 83,000 people. [1] 30% of LVMH’s staff work in France. LVMH operates over 2,400 stores worldwide. [10] LVMH actively supports the professional development of its employees. The decentralized organization of the LVMH group encourages individual initiative. Human Resources teams deploy a variety of concrete tools to develop talents, including training, geographic and functional mobility andrecruitement.

The annual Organizational Management Review plays a pivotal role in identifying talents and succession planning. This dynamic process is central to recognizing the contributions and talents of the Group’s people. It ensures motivating advancement within the Group by identifying key positions, internal resources and the human resources needed to drive continued growth at LVMH companies. LVMH also carries out regular performance appraisals to identify employees’ strong points and opportunities for improvement, as well as their personal goals.

These appraisals serve as the basis for concrete action to enable people to achieve fulfulling career objectives. Training is distributed between the Group, itsbusiness divisions and the brands themselves, always focused on enriching the skillsets of employees and sharpening their performance to help them flourish in the LVMH ecosystem. Training programs address needs that have been identified and discussed during annual performance appraisal interviews. Technical skills are the responsibility of brands, which sometimes pool training across business groups.

LVMH actively encourages all employees to reach their potential as they pursue fulfilling careers. The Group is committed to promoting diversity and energizing the wealth of human resources at all its companies and in all the host countries where it operates. INSURANCE: Of the most prestigious luxury houses, six post sales of over a billion euros annually. They include Gucci, Hermes, LVMH and L’Oreal, all of whom are clients of Allianz Global Corporate & Specialty France for their transport, property and liability insurance programs. AGCS France will market its transport insurance solution through a variety of intermediaries.

These include key luxury industry brokers whose current clients, including subcontractors, may be interested; the Colbert Committee, an association of over 70 luxury companies; Colipa, the European cosmetics association; and the Confederation des Arts de la Table (CAT, the French tableware association). On the heels of this new transport insurance solution other new products will be developed, with the goal of offering a dedicated range for all luxury goods companies.

CUSTOMERS: LVMH made a fortune thanks to customer loyalty, and to keep these customers it’s opening shops both in the U. S. ut also in developing countries such as India and China In all, Louis Vuitton now has 96 stores open in the United States, which Slavinsky says is almost evenly divided between freestanding stores and leased in-store boutiques. The company’s strength owes a lot to customer loyalty — especially to Louis Vuitton, which analysts estimate accounts for about 60 percent of LVMH’s earnings. Demand for its products — from $100 coin purses to the new $5,500 Theda multi-buckled, gilt-trimmed handbags in colors such as turquoise and pink — is so strong that Vuitton’s margin topped 45 percent last year; its U. S. sales alone grew 38 percent. To meet the demand, Vuitton is expanding.

Local Communities

The Group believes that our own development must integrate the search for a better quality of life for our customers, employees, shareholders, and the regions and various communities affected by our production and distribution operations throughout the world. The Group’s commitment towards environmental protection materialized in 2001 by the the “Environmental Charter” was reinforced in 2003 by joining the United Nations’ Global Compact.

That initiative, which was launched by Kofi Annan, Secretary General of the UN, requires its signatories to apply and promote nine principles in the field of human rights, labor and the environment. Thus LVMH implements the concept of sustainable development. Aim for a high level of environmental performance In developing its businesses internationally, LVMH works to align its practices with those that offer the best level of environmental protection around the world. Foster a collective commitment

The environment is the responsibility of every individual and LVMH believes that the awareness, education and training of its employees are top priorities. To ensure a continued high level of environmental performance, the Group believes it is vital for each company to set precise environmental objectives and implement a management system dedicated to this process. Control environmental hazards In addition to the most stringent compliance with environmental regulations, which is an absolute duty, the Group intends to focus on risk prevention. As a result, it allocates human and material resources to this goal.

Design luxury products by integrating environmental innovation and creativity Guided by its overriding concern for high quality, LVMH is working to improve control and better anticipate the environmental aspects related to the life cycle of its products. LVMH encourages all processes that result in environmental innovations and accepts its duty to exercise prudence and take precautions to ensure total safety for the consumer. Make commitments outside the company LVMH intends to contribute to the protection of the environment above and beyond just the aspects directly related to its own businesses.

Because it considers that promoting respect for the environment is essential, LVMH is developing an active partnership with groups of businesses, local communities and the associations which contribute to this objective.

Institutional Goals

The mission of the LVMH group is to represent the most refined qualities of Western “Art de Vivre” around the world. LVMH must continue to be synonymous with both elegance and creativity. Our products, and the cultural values they embody, blend tradition and innovation, and kindle dream and fantasy.

In view of this mission, five priorities reflect the fundamental values shared by all Group stakeholders: -Bec reative and innovate – Aim for product excellence – Bolster the image of our brands with passionate determination – Act as entrepreneurs – Strive to be the best in all we do Be creative and innovate Group companies are determined to nurture and grow their creative resources. Their long-term success is rooted in a combination of artistic creativity and technological innovation: they have always been and always will be creators.

Their ability to attract the best creative talents, to empower them to create leading-edge designs is the lifeblood of our Group. The same goes for technological innovation. The success of the companies’ new products – particularly in cosmetics – rests squarely with research & development teams. This dual value – creativity/innovation – is a priority for all companies. It is the foundation of their continued success. Aim for product excellence Group companies pay the closest attention to every detail and ensure the utter perfection of their products. They symbolize the nobility and perfection of traditional craftsmanship.

Each and every one of the objects their customers buy and use exemplifies our brands’ tradition of impeccable quality. Never should Group companies disappoint, but rather continue to surprise their customers with the quality, endurance, and finish of their products. They never compromise when it comes to product quality. Their search for excellence go well beyond the simple quality of their products: it encompasses the layout and location of our stores, the display of the items they offer, their ability to make their customers feel welcome as soon as they enter our stores…

All around them, their clients see nothing but quality. Bolster the image of our brands with passionate determination Group brands enjoy exceptional reputation. This would not amount to much, and could not be sustained, if was not backed by the creative superiority and extreme quality of their products. However, without this aura, this extra dimension that somewhat defies logic, this force of expression that transcends reality, the sublime that is the stuff of our dreams, Dior would not be Dior, Louis Vuitton would not be Louis Vuitton, Moet would not be Moet… The power of the companies’ brands is part of LVMH’s heritage.

It took years and even decades to build their image. They are an asset that is both priceless and irreplaceable. Therefore, Group companies exercise stringent control over every minute detail of their brands’ image. In each of the elements of their communications with the public (announcements, speeches, messages, etc. ), it is the brand that speaks. Each message must do right by the brand. In this area as well, there is absolutely no room for compromise. Act as entrepreneurs The Group’s organizational structure is decentralized, which fosters efficiency, productivity, and creativity.

This type of organization is highly motivating and dynamic. It encourages individual initiative and offers real responsibilities – sometimes early on in one’s career. It requires highly entrepreneurial executive teams in each company. This entrepreneurial spirit requires a healthy dose of common sense from managers, as well as hard work, pragmatism, efficiency, and the ability to motivate people in the pursuit of ambitious goals. One needs to share and enjoy this entrepreneurial spirit to – one day – manage a subsidiary or company of the LVMH group.

Strive to be the best in all we do Last but not least is our ambition to be the best. In each company, executive teams strive to constantly improve, never be complacent, always try to broaden our skills, improve the quality of our work, and come up with new ideas. The Group encourages this spirit, this thirst for progress, among all of its associates. Code of Conduct In 2010, to provide a set of simple principles and behaviours that should guide the Group and each of us in the everyday conduct of business, LVMH officially adopted a Code of Conduct.

LVMH has a global dimension and the world in which we do business is changing at a rapid pace. In the context of this continually evolving business environment, this Code of Conduct constitutes a common benchmark to guide individual initiatives and ensure greater consistency in practices across the Group’s companies and geographies. Code of Conduct (PDF–1 419 Ko) Digital In 2010, the Group also adopted self regulatory on line marketing principles, aligned with the World Federation of Advertisers.