Business Plan for an Online It Recruitment Company by zch11532

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									School of Business Information
          Technology



           INTE1032
  E-Commerce Development


          Business Plan:

    MovieMate Pty. Ltd.




    Submitted on: 8th June 2007
    Submitted By: Rutul Shukla (s3119239)
                  Sugito Shia (s3125950)
                  Chen Zhao (s3123906)
                                                                                            MovieMate Pty. Ltd.


Table of Contents


Company Overview ............................................................... 4

  Introduction .................................................................................... 4

    Company Objectives...................................................................................... 4

    Company Motto ............................................................................................. 4

    Propriety agreement ...................................................................................... 4

  Products and Markets .................................................................... 5

    Products/Services .......................................................................................... 5

    Competitors ................................................................................................... 5

    Markets .......................................................................................................... 6

  Business Objectives ....................................................................... 8




Marketing Strategy .............................................................. 10

  Market Overview .......................................................................... 10

  Market Research .......................................................................... 11

    Interviews .................................................................................................... 11

    Group Discussion ........................................................................................ 11

  SWOT Analysis ............................................................................ 13

  Marketing Mix ............................................................................... 14

    Product/Service ........................................................................................... 14

    Price ............................................................................................................ 15



Business Plan                                                                                                  Page 2
                                                                                         MovieMate Pty. Ltd.


    Place/Distribution Area ................................................................................ 16

    Promotion .................................................................................................... 18




Development ....................................................................... 20

  Current Status .............................................................................. 20

    Development Plans...................................................................................... 20

    Development Time Table ............................................................................. 22

  Risk Analysis ................................................................................ 29




Management ....................................................................... 31

  Company Organisation ................................................................. 31

  Management Team ...................................................................... 34

  Initial Staff Recruitment ................................................................ 36




E-Business Strategy ............................................................ 39



References .......................................................................... 40




Business Plan                                                                                               Page 3
                                                               MovieMate Pty. Ltd.


Company Overview

Introduction

MovieMate is a proposed Melbourne based company who aim at providing the

service of delivering entertainment to customer’s door. The idea derived by

understanding the needs of general public who spends long hours at work and

to others who require a quality entertainment with preference not to leave

home. MovieMate delivers directly to the customer door step, simply because it

understands that the time is valuable and the need for good quality

entertainment is important to loosen up in today stressful environment.

The proposed business will have following attributes:


Company Objectives

Delivering value and service to the customer by giving unprecedented service

at their convenience and precious time to their home at the same time

increasing profitability of the partner company we served.




Company Motto

MovieMate “DVD” guarantee - Delivering Value to your Door




Propriety agreement

MovieMate initially will be form as partnership between 3 parties who

contributes equally to the business, in terms of time and financial commitment.

Due to limitation of funds in initial set up, initially MovieMate will has an ABN



Business Plan                                                                Page 4
                                                                MovieMate Pty. Ltd.


(Australian Business Number) stated the equal number of shares and directors

will registered to ASIC and a legal contract between parties will be drawn by

the appointed solicitors to establish the legal entity of the business. Once the

business is well established, MovieMate will be registered as Proprietary

Limited business and shares may be offered to others as the business

expands. In the long run, MovieMate business will look into offering Franchise

to individuals to operate on the “clustered area” of their neighbourhood.




Products and Markets


Products/Services

At initial stage, MovieMate only offers products that are available to any Video

Rental Stores. These products as follows:

       Movies – Various movies that available on DVD format.

       Games – Various games that available at different platform, ie. PC,

        PlayStations, XBox, or Nintendo.

Moreover, MovieMate will add value for the customers to completely enjoy the

entertainment by offering to do a quick shopping for snacks and drinks (such

as popcorn, ice creams, softdrinks) which will incur small additional fee for

them.




Competitors

Currently MovieMate has no direct competitors in the market as in offering the

entertainment delivery service to the customer’s door. However, analysing the




Business Plan                                                               Page 5
                                                                 MovieMate Pty. Ltd.


broader market, the term competition may includes any parties that hinder the

business growth in near future.

The MovieMate’s competitors can be summarised as follow:

Immediate proximity:

      BigPond Movies

      DevoteD Online Movies and Games rental

      Quickflix Online Movies and Games rental

      Movieguys Online Movies and Games rental

      Foxtel, Optus TV, or any Pay TV, especially with “Movies on Demand”

      Cinemas

Distant proximity:

      Free TV Media such as Channel Seven, Nine Network, Channel Ten,

       SBS or ABC TV.

      Internet TV




Markets

MovieMate identified the overall market as relatively niche market aiming at

selected target market. In analysing the current market, MovieMate’s clientele

can be described as follow:


Demographic

Gender               : Both

Marital Status       : Married or Single Parents with children

Age                  : 30 Plus

Income Level         : Above $30,000 pa.


Business Plan                                                                Page 6
                                                               MovieMate Pty. Ltd.


Occupation          : Housewife and Full-time Professionals




Lifestyle

  Mainly busy couple that spends hours at work and looking for quick fix

   entertainment at home.

  60+ generation and disabled person, who have difficulty in travelling.

  Working parents with young children (less than 13 years old) who would

   like to spend quality time at home.




Geographic

  Initial target geographic is South Yarra, Richmond, Prahran, Toorak,

   Hawksburn, Windsor, Armadale, St. Kilda, Elsternwick, Malvern, Glen Iris,

   Caulfield.

  Forecasted in 12 months, MovieMatewill expand to Kew, Burnley, Brighton,

   Hawthorn, Gardenvale, Parkville, Southbank and Melbourne CBD.

  Forecasted in 3 years, MovieMate will expand to Carlton, Abbotsford,

   Collingwood, Jolimont, Clifton Hill, Chadstone, Oakleigh, Carnegie,

   Glenferrie, Kooyong, Camberwell, Glen Huntly and all inner suburbs are

   seen as potential target.

  Forecasted in 5 years, MovieMate will offer franchise to individuals who

   interested to join the team and manage their clustered area which decided

   by MovieMate Pty. Ltd.




Business Plan                                                               Page 7
                                                             MovieMate Pty. Ltd.


Business Objectives

Short term (0 – 6 months):

  Having total customer base of 300 clients.

  Having customer base of 50 clients who rent regularly at least once a week.

  Average of 20 deliveries per day.

  Contributed income for our partner company minimum of $800.00 per

   week.

  Distributed 150,000 pamphlet and direct marketing to the initial targeted

   area.



Medium term (6 months – 3 years):

  Having total customer base of 1000 clients.

  Having customer base of 250 clients who rent regularly at least once a

   week.

  Average of 100 deliveries per day.

  Contributed income for our partner company $2000.00 per week.

  Distributed 250,000 pamphlet and direct marketing to initial and new

   targeted area.



Long term (3 years over):

  Maintaining total customer base of 5000 clients

  Having customer base of 750 clients who rent regularly at least once a

   week.

  Average 300 deliveries per day.

  Contributed income for our partner company $4000.00 per week.



Business Plan                                                             Page 8
                                                        MovieMate Pty. Ltd.


  Distributed 500,000 pamphlet and direct marketing to initial and new

   targeted area.




Business Plan                                                       Page 9
                                                                 MovieMate Pty. Ltd.



Marketing Strategy

Market Overview

Current Australian population are aging, overworked and have lesser time to

do leisure activities. On the other hand, they are savvier and use internet more

in their daily activities. According to data from ABS Australia, the following

facts are important in long view of implementation of business plan:

   Australian spend most of their free time (85.8%) with the use of audio/video

    visual media, which includes watching TV and listening to the radio. (ABS,

    2006). However, the number of working hours has increased from 41.9

    hours to 43.2 hours. (ABS, 2006)

   Australia population is aging with the population median population at 37

    years old (increase from 34 years old in 2004 – 2005). Moreover, the older

    generation has increased by 5% to account for 36.9% of total population.

    (ABS, 2006)

   The number of people age 65 and over in Australia is increase by 2.5% or

    65,400. In 2006, population age over 65 years old account for 13.3% of

    total population or 2.8 millions in totals. (ABS, 2006)

   One in seventeen people in Australia had profound or severe level of core

    activity limitation (ie. it requires one or more help in self-care, mobility or

    communication activities). (ABS, 2003)

   Australia internet user has increase with 5.67 millions households are

    regular internet subscriber and expected to increase to more than 8 millions

    by 2008. (ABS, 2007)




Business Plan                                                                Page 10
                                                                  MovieMate Pty. Ltd.


Market Research

In order to justify the viability of the proposal, MovieMate requires conducting a

thorough market research to overall market.

The following steps are to be taken methodically for successful research.


Interviews

Interviews will be carried out to have quick information about the general public

preference towards having the movies or games delivered to their homes. It

will also able to capture the demographic statistic of the target area.

It is recommended that the survey will be carried out in the local supermarkets

(such as Coles and Safeways) during various time of the day by qualified

interviewer. To encourage the response of the patrons, they will be rewarded

with Green Bag as part of the promotion. Moreover, the interview should not

take more than 3 minutes of respondents’ time.

It is expected that at this stage, MovieMate able to receive 500 respondents for

the duration of 30 hours interviewer time.

Cost consideration:

Printing and administration                       : $ 100.00

Providing “Green Bag” and printed promotion       : $ 500.00

Interviewer Salary                                : $ 600.00 (at $20.00/hour)

Expected cost                                     : $ 1,200.00




Group Discussion

Few respondents that willing to be contacted again from initial interviews will

be invited to join half hour group interview. This interview will aim at getting in-


Business Plan                                                                 Page 11
                                                               MovieMate Pty. Ltd.


depth information about customer preference on how it should be done,

costing, why they use the service and what expectation they require from

MovieMate in regards to providing the service that makes them satisfied.

Group discussion is a good way to get overall feedback of the service from the

respondents.

It designed as group discussion, so all respondents are interacting with each

other and it is monitored by qualified mediator who provides the introduction

and also records the feedbacks comes out from the respondents. In order to

get better understanding across different population, there should be a good

mix of age groups and gender as well as professions in the group discussion.

The ideal group discussion will consist with no more than 12 respondents in

the room. Three group discussions will be administer to ensure the accuracy

of the result. Moreover, each of the respondents will be rewarded with gift card

valued at $30.00 for their time. Refreshments also provided prior and during

the group discussion.

Cost consideration:

Meeting room place and refreshment              : $ 500.00

Gift cards ($30.00 x 36 respondents)            : $ 1,080.00

Mediator (1 hour x 3 groups)                    : $ 120.00 (at $40.00/hour)

Expected cost                                   : $ 1,700.00



With the both research completed, it is expected that MovieMate management

able to view wider opportunities and improvements in order to sustain in the

business and profitability in long run.




Business Plan                                                              Page 12
                                                                MovieMate Pty. Ltd.


SWOT Analysis

In order to analyse current position in the market, SWOT analysis is used to

have better understanding about the company and the environment.




                Strength                               Weaknesses
   The only movies renter who               Possible late delivery and unable
    delivers to the customer premises         to provide movies that customer
    at low delivery fee on the same           want.
    day.                                     Less interaction with customer.
   Avoid late fee by arranging pick         Customer unable to see other
    up.                                       movie “option” available that they
   Partnering with video stores to           might like.
    reduce set up cost.

             Opportunity                                  Threat
   Huge market for the service, such        Other competitors most likely will
    as single mother of 3 children who        follow, especially well established
    is always busy, disabled person,          Video stores.
    busy business people who wants           Bad customer who are not clearly
    quiet night but too tired to go out       identified and took advantage of
    and rent some movies.                     the delivery system. (Credit card
   Niche market and increase the             fraud)
    overall Movie Renter branding in
    customers mind.




Business Plan                                                               Page 13
                                                                MovieMate Pty. Ltd.



Marketing Mix


Product/Service

Offering the customer the convenience of choosing the movie or game titles

from internet and having a snapshot on the title will help in assisting the

customer to make up the decision to rent the movie. Moreover as the products

are standard and have no variations, it is a simple decision making by the

customer. The service that MovieMate offers is new and need to educate the

target market the new way of renting movie/games at the convenience of their

homes.

It is important that MovieMate provides the customer with a high service

standard, which include huge selection of movies/games, good communication

with the customer about how does MovieMate work and prompt delivery

service to ensure that repeated purchase (or order) are made.

Maintaining high level of security also ensure that customer privacy are

protected against hackers and frauds, thus MovieMate must employ a 128 SSL

encryption and good execution of the procedure of information collection and

authentication.

Regular data back up also enforceable to avoid disaster and data loss for

future sustainability.




Business Plan                                                              Page 14
                                                                MovieMate Pty. Ltd.


Price

In term of pricing, the movie and game pricing are very simple. The titles are

classified according to their release date. There are four classifications to be

use:



                Classification                            Price

        New Release (Overnight)                           $ 4.95

    Recent Release (2 nights hire)                        $ 3.95

    Recent Release (3 nights hire)                        $ 3.95

           Weekly (7 nights hire)                         $ 1.95



This pricing is aligned with the pricing standard set by most of the video stores

throughout Australia for hiring one title of movie or game.        Therefore it is

encouraging for the customer who wishes to rent to movie or games without

worrying about high rental cost.

These prices are for renting the movie that is available in any video stores.

However, as any video stores, MovieMate also charges late fees for any

movies/games that are returned late. It refers back to the classification above

for any late fees payable to the customer who unable to return the movie/game

on time.

Second set of price that incur is the delivery and pick up fee.         Currently,

MovieMate charge $5.00 fee for one delivery and one pick up. Subsequent

pick up is charged at $1.00 per movie. In this way, MovieMate will encourage

the customer to rent the movie on the same classification and return them at

the same time.



Business Plan                                                                Page 15
                                                              MovieMate Pty. Ltd.




Place/Distribution Area

Delivering the movies/games to the customer is a huge task. Therefore, in

early stage, the delivery area is limited to South Eastern Suburbs which is

identified as the “high profile” area and suitable with MovieMate’s target

market.

It is also important that South Eastern Suburb has quite substantial MovieMate

partner of Video Stores branches thus will support the delivery process to the

customer.

The initial delivery area will target at following cluster:




                                                                         = Partner
                                                                      Video Store
                                                                       location




Moreover, for the customer who is unfamiliar with the map, the following

suburbs are provided as the guide of delivery area:




Business Plan                                                            Page 16
                                                                                          MovieMate Pty. Ltd.




                                                 SUBURBS

            Albert Park (Partial)              Gardenvale (Partial)                   Richmond (Partial)

                    Armadale                    Glen Iris (Partial)                   Ripponlea (Partial)

                    Balaclava                      Glenhuntly                   South Melbourne (Partial)

               Burnley (Partial)               Hawthorn (Partial)                        South Yarra

                    Caulfield                Hawthorn East (Partial)                  SouthBank (Partial)

                 Caulfield East                     Kooyong                            St. Kilda (Partial)

               Caulfield North                      Malvern                              St. Kilda East

               Caulfield South               Melbourne (St.Kilda Rd)                        Toorak

             Cremorne (Partial)                 Ormond (Partial)                       Windsor (Partial)

            Elsternwick (Partial)                    Prahran



     Finally, in term of delivery process, it involves few stages as describe below:


                              Customer


             Choose Movies from



                         Brochure/Internet              Order delivered and payment processed



       Order by Phone/Fax/Internet



                             MovieMate


Place order and pick up movies from
                                                        Order prepared for dispatch


                            Video Stores




     Business Plan                                                                                        Page 17
                                                                  MovieMate Pty. Ltd.


Promotion

Promotion plays vital part in every business launching. It is necessary for

MovieMate to carefully plan its promotion to the targeted market in order to

gain satisfactory response from the public. The following promotion will be

conducted to acknowledge the existence in the market:

     Door to door brochures
     In store display – Brochure and Posters
     Regular Mail Out Update for existing clients
     Local Print Media such as Stonnington Leader, Toorak News, etc, Senior
      Magazine, etc.
     Internet and email update for existing clients.


This promotion campaign will be conducted in following series:

Stage 1 (0 – 6 months)

     Mail drop to residents of the targeted area.      100,000 brochures to be

      distributed prior opening date and further 50,000 brochures will be dispatch

      to the targeted area.

     Posters and brochures will be displayed in MovieMate’s video stores

      partner.

     Advertise MovieMate in local media on weekly basis. Due to limitation in

      funds, ½ page advertising on opening week and ¼ page on subsequent

      weeks for the duration of 3 months.

     Weekly email update for MovieMate customer informing movie and games

      new and upcoming releases.

     Referral and loyalty bonus to our customer. Refer to any friend or family

      within the delivery area with different address will entitle the customer with




Business Plan                                                                  Page 18
                                                                MovieMate Pty. Ltd.


    one free delivery and pick up. Loyalty bonus gives customer free delivery

    and rental if they use the service 10 times.



Stage 2 (0 – 12 months)

   Further mail drop to the targeted area. It is expected that by end of the 12

    months, 250,000 residents have seen or receive the brochure.

   Continuously advertise in local newspaper to built brand awareness,

    however, the rate will be reduced to monthly basis.

   Continuously promotes the loyalty and referral programme to the clients

    through website and newsletter.



Stage 3 (12 months and beyond)

   Regular mail drop to the targeted area. Re-run the previous 6 months

    cluster to remind the customer about the service.

   Advertise in local and internet sites, especially local sport group, RSL clubs

    and various community newsletters.

   Establish new promotion materials, such as free movie tickets for customer

    who order more than 25 times, or free monthly raffle with DVD movies as

    the prize to our customers who order on that month, etc.




Business Plan                                                                Page 19
                                                             MovieMate Pty. Ltd.



Development


MovieMate Pty Ltd. is a promising company with a very promising and unique

business. The service industry has got market in Melbourne, Australia.

MoveMate Pty Ltd. will start and develop its services in further according to

the requirements of the market. The outline of the development plan for

MoveMate Pvt Ltd. is described in details below.


Current Status


Development Plans

The business idea and business plan of MoveMate is ready with finance and

other required things to launch the business are already scheduled (as shown

in next section). The list of main task to be completed is given below in the

development timetable. The team of MoveMate will follow step by step

approach and officially launch the company. Further, an overview of future

plans (after lunching the company) are also mentioned in the next section. The

management of MovieMate has to work hard to established and position

themselves quickly in the market before they face tough compaction and then

grow steadily to archive planed targets. As mentioned, finance the most

important factor of the business, is already been arranged by the management

team. An overview of business establishment cost is given below:




Business Plan                                                            Page 20
                                           MovieMate Pty. Ltd.


Pre-business costs

 Task                                      Cost

 Travel Expense

 Administration

 Legal fees                              $10,000.00

 Accounting Fees

 Market Research



Set up costs

 Task                                      Cost

 Administration

 Office equipment and office furniture

 Credit card merchant fee
                                         $10,000.00
 Initial promotion

 Office re-painting and artwork

 Stationary and office supplies

 Premise Set up fee

     Legal costs

     Stamp duty                          $10,000.00

     Rent in advance

     Bond

 Electricity, gas and phone costs:
                                           $500
    Connections & Security Deposits

 Computer software:
                                           $1000
     Development and Installation




Business Plan                                         Page 21
                                                            MovieMate Pty. Ltd.


    Training

 Website Initial cost:

    Domain Name Registration (for two years)              $ 300.00

    Hosting of business website (for one Year)

 Insurance premiums                                        $500.00

 Total initial costs:                                    $32 600.00


Development Time Table

The initial time table of launching the company and its product is mentioned

below in Gantt Chart.




Business Plan                                                          Page 22
                                                                                                                                                                                                                                          MovieMate Pty. Ltd.


                                                                                                             MovieMate Launching Schedule
                                                                                  29 Apr 2007               6 May 2007                          13 May 2007                            20 May 2007                            27 May 2007                          3 Jun 2007
 ID                  Task Name                  Start      Finish      Duration
                                                                                    1     2     3   4   5     6     7    8   9   10   11   12    13    14     15   16   17   18   19    20    21     22   23   24   25   26    27    28     29   30   31   1   2     3     4    5   6   7   8   9


 1    Signing Agreements for partnership      1/05/2007   3/05/2007       3d

 2    Leasing Office Premises                 1/05/2007   10/05/2007      8d

 3    Applying and getting Domain Name        1/05/2007   4/05/2007       4d

 4    Hosting Website                         4/05/2007   8/05/2007       3d

 5    Opening Bank Accounts                   11/05/2007 15/05/2007       3d

      Applying and receiving ABN, TFN
 6                                            11/05/2007 24/05/2007      10d
      Number and GST
      Getting basic services- Telephone,
 7                                            11/05/2007 28/05/2007      12d
      Internet Gas, Electricity, Water ect.
      Purchasing Computer Hardware and
 8                                            4/05/2007   1/06/2007      21d
      software
      Ordering and Purchasing Office
 9                                            4/05/2007   23/05/2007     14d
      Equipments and Furniture

 10   Hiring Staff                            4/05/2007   23/05/2007     14d

      Ordering Stationary and Printing
 11   materials for Promotion, Advertising    4/05/2007   24/05/2007     15d
      and correspondences
      Tie-ups with Business Partners and
 12                                           4/05/2007   7/06/2007      25d
      legal formalities

 13   Business launch Party                   7/06/2007   7/06/2007       1d




Business Plan                                                                                                                                                                                                                                                      Page 23
                                                                 MovieMate Pty. Ltd.


The growth of the company for next 3 years are divided mainly in to two areas

(I) Physical expansion and (II) Products & Services. The briefly outline of

future development is mentioned below.



Physical expansion: MovieMate will initially operate from its office in St. Kilda,

Melbourne and will provide its services in CBD and South East suburbs of

Melbourne. Once establish in this area, MovieMate will strategically expand a

local office to area of service and cover majority of Eastern and Southern

suburbs and then Northern and Western suburbs. It is important that

MovieMate will adopt a 13 number for the phone order which will be

accommodated in main office.



Once successful in Melbourne, MovieMate will try and cover other major cities

of Australia starting with Sydney, Brisbane, Adelaide and Perth, MovieMate

will open Physical Offices and apply same business model to all new places.



Growth in Products and Services: Planning of products and services is critical

to any organization, and a well-conceived and comprehensive Product

Development Planning can provide a detailed assessment of your product

and the most effective pathway to market. MovieMate has planed the products

and services growth and can be described as following:

In the short term (within 12 months and under) MovieMate will only deliver

Movies and Games to the door steps of customers as per their requirements,

but after capturing market in this segment and once established in the market

with good customer based, we will introduce other additional services along



Business Plan                                                                Page 24
                                                               MovieMate Pty. Ltd.


with Movies and Games. Those services may include: Soft drinks, Milk, light

snack like Chips, Doritos, Popcorn, Cholates, Ice creams, and various

perishable goods.    This move is expected to have few upgrades on the

website and operation of MovieMate.

By introducing this kind of additional services, customers can order their

entertainment along with some food.

MovieMate will tie-up with local store in the areas for the food items and use

same supply chain to deliver these items.



Second stage of the product development (within 24 months period from

lauching), MovieMate will cooperate with local restaurants and cafes to deliver

full menu as offered by those restaurants. MovieMate website will undergo a

further upgrade by linking their sites with the restaurants and take-away

premises to access the full menu to be delivered by MovieMate.

After checking the feasibility and response of the added service, MovieMate

may include other feasible items in their list to serve and satisfy growing

customer needs.



Operation



This is one of the most important parts of the business. This section describes

how MoveMate will operate, how the business will function in real time. The

brief overview of the operations are described in diagram below:




Business Plan                                                             Page 25
                                                                   MovieMate Pty. Ltd.


                            Overview of operations at MovieMate

                                    MovieMate Office


                     Online order




                               Telephonic order




 Coustomer




                                                                     Local Movie Store
                                                                     (Business Partner)


  Customer's Place
                                         Delivery and Collection
                                             Representative




Total operation of the MoveMate can be widely divided in to three main

functions.

       Registration

       Ordering and Order Processing

       Delivery



The brief information of each function is described further in next page.

Registration:        The first and most important step of our operations is

registration of members because, MovieMate will only provide services to their

registered members. Registration of member is very easy and totally free.

Anyone interested, can get registered and become member of MovieMate by

completing registration process Online or over the Phone.




Business Plan                                                                   Page 26
                                                                    MovieMate Pty. Ltd.


An   interested      person   can   logon   to   the   web   site   of   MoveMate

(www.moviemate.com.au) or can also call on the telephone numbers provided

for registration and complete the registration process by giving all required

details including the details of credit cared. MovieMate will then crosscheck

the authenticity of the credit card details provided and once found all valid, will

process the request and offer a membership by providing the Membership ID

(Username) and the Password. The process of registration will not be

completed without valid Credit Card. MovieMate will store all the details of the

registration process including, details of the credit card for future transactions,

correspondence and also to minimize the risk of dodgy transactions and

frauds.



After receiving Membership ID and password, members can log on the

website or can call to MoviMate and start putting orders. They can also view

and modified their details on website or over the phone.



Ordering and Order Processing: Members, can order their items through

website, phone and fax, which will provide full mobility and convince to the

members of MovieMate as they need not have to be physically presence to

order their items.



Members, with the help of their membership ID and Password, can log on to

the website, select movies or games on website or can add the title of the

movies or games in the order form present on website and submit the order or




Business Plan                                                                  Page 27
                                                                 MovieMate Pty. Ltd.


can contact MovieMate through telephone or fax to place an order. Members

will be identify primarily with their Membership ID and Password.



Once MovieMate receives an order, the order processing will start on

backhand. The received orders will segregate suburbs vise and further

segregate it to delivery area and delivery route vise. The suburb vise

segregated list then will be sent to local (suburban) movie stores (business

partner) and delivery route vise segregated list will be sent to delivery and

collection representative of MovieMate Pty Ltd., working that day on that

particular route.



MovieMate will process all the orders received before 4.00pm on very same

day. Hence, members have to log their order with MovieMate before 4.00pm

to get delivery of their desired items on same evening.



Delivery: The final but important part of our operation is delivery of our

services and items to our customers. Once the local move stores (business

partner) receives the segregated list of orders from MovieMate, they will then

arranged the order list to delivery route visa as advised by MovieMate in the

segregated list. The order is then ready to up by a delivery and collection

representative of MovieMate at local move store (business partners location).



The delivery and collection representative of MovieMate will receive a copy of

the list of orders, segregated delivery route vise as per their route allocations.

Once they receive the segregated list, they will come to the local movie store



Business Plan                                                                Page 28
                                                                  MovieMate Pty. Ltd.


(business partner’s location) to collect the delivery for their route. The delivery

should be kept ready by business partner to be picked up by these

representatives of MoveMate. The representatives of MovieMate will check

their separated delivery against the copy of the list they have received from

the MoveMate office.

The delivery and collection representative then starts delivering the order on

their allocated route. They will also pick up the due items from the customers

or if customer wishes early delivery they will go and collect the items from the

costumer’s place.



The Delivery and Collection representative on return form the allocated route

delivery will then come back to business partner’s location with all the

collected items to deposit them back and cross check the items with the lists

at business partner’s location.


Risk Analysis

In undertaking any business plan or project, the management must consider

any risk associated before and during implementation of the plan.             It is

important to prepare the unexpected incident that may cause delay or cost

overrun and any risk should be able to be mitigated to reduce the severity or

even avoided. In this business plan, MovieMate may face the following risks:

                    Probability of     Impact on
 Risk                                                           Mitigation Planning
                     Occurrence        Business

                                                     Redirect website to mirror page and
 Website down            Low              High
                                                     operate.



Business Plan                                                                 Page 29
                                                             MovieMate Pty. Ltd.


                    Probability of   Impact on
 Risk                                                      Mitigation Planning
                    Occurrence       Business

 Software or                                     Regular backup of all data on other
                         Low          Medium
 server crash                                    server which can be up in no time

 Telephone                                       Put information on website and divert
                      Very Low        Medium
 System down                                     calls to mobile phone.

 Absence of                                      Regular meetings with other directors

 Director (leave       Medium          Low       and staff regarding important tasks

 or sick)                                        and activities happening in business

                                                 Regular meetings with other directors
 Absence or
                                                 and staff regarding important tasks
 quitting jobs of
                        High           Low       and activities happening in business.
 staff member
                                                 Employ and train casual staffs in case
 (leave or sick)
                                                 of emergency.

                                                 Regular meetings with other directors
 Communicatio
                    Medium/High        High      and staff regarding important tasks
 n Gap
                                                 and activities happening in business

 Competitor’s                                    Ongoing customer loyalty programs
                    Medium/High       Medium
 pressure                                        and often discounts and raffle.

 Unavailability

 of products or
                                                 Arrange it from nearest business
 services in           Medium          Low
                                                 partner
 some particular

 region



Business Plan                                                             Page 30
                                                               MovieMate Pty. Ltd.


Management

Company Organisation

The firm will be a partnership firm and will run under the name of “MovieMate

Pty Ltd.” The ownership of the firm will comprise three partners:- Mr. Rutul

Shukla, Mr. Sugito Shia and Mr. Chen Zhao. The brief partnership (ownership)

structure will be as under:




     Name       of   the Initial          Partnership          Organisational

     Partner              investment      status               Position

     Mr. Rutul Shukla     $15,000.00      Fulltime Partner     Director- Sales,

                                                               Marketing    and

                                                               Operations

     Mr. Sugito Shia      $15000.00       Fulltime Partner     Director-

                                                               Technical    and

                                                               Administration

     Mr. Chen Zhao        $30,000.00      Inactive Partner     Director

                                                               (strategic

                                                               decisions only)



Mr. Rutul Shukla and Mr. Sugito Shia will be working fulltime for the firm and

Mr. Chen Zhao will be inactive partner and will not work full time for the firm




Business Plan                                                               Page 31
                                                                 MovieMate Pty. Ltd.


although, he will act as an active director in any strategic decision making

process.



The organisational overview of MoveMate Pty Ltd. is shown in organisational

chart below the initial staff is shown in solid box with solid lines and the doted

box with doted lines indicates propose staff,      which may be required with

growth of the company as mentioned in development plan above :




Business Plan                                                                Page 32
                                                                                                                                           MovieMate Pty. Ltd.




                                                             MovieMate Pty Ltd
                                                                     Organization Chart
                                         Mr. Sugito Shia                                           Mr. Rutul Shukla
                                             Director                                                  Director
                                         Technical and                                            Sales & Marketing
                                         Administration                                            and Operations


                                                                                                                                                Sales&
                                                                                                                                               Marketing
                                                                                                                                                Officer
       HR/Admin        Accounts         Web         Database          Area            Area                Area          Area
        Officer         Officer       Developer    Administrator    Manager 1       Manager 2           Manager 3     Manager 4
                                                                                                                                    Marketing
                                                                                                                                  Representative


      Receptionist                                                                                                                                 Sales
                                                                                                                                               Representative
                                                                                           Delivery & Delivery & Delivery & Delivery &
           Telephone      Telephone                                                        Connection Connection Connection Connection
            Operator       Operator                                                          Rep.       Rep.       Rep.       Rep.

                                      Delivery & Delivery & Delivery & Delivery &
                                      Connection Connection Connection Connection
                                        Rep.       Rep.       Rep.       Rep.
                                                                                                           Delivery & Delivery & Delivery & Delivery &
                                                                                                           Connection Connection Connection Connection
                                                                                                             Rep.       Rep.       Rep.       Rep.




                                                                   Delivery & Delivery & Delivery &   Delivery &
                                                                   Connection Connection Connection   Connection
                                                                     Rep.       Rep.       Rep.         Rep.




Business Plan                                                                                                                                              Page 33
                                                                     MovieMate Pty. Ltd.



   Management Team

   MoveMate Pty Ltd. will be lead by quite experienced members with successful

   career track records. Out of three two partners, Mr. Rutul Shukla and Mr.

   Sugito Shia, have managed and lead medium to large size projects in their

   respective domains. Both of them has got vast industry experience including

   in the service industry and e-business and extensive knowledge in the area of

   management, business, leadership, and project management. The third

   partner Mr. Chen Zhao, who will be a inactive partner and will not work full

   time for the firm, is a businessmen. He is also a director in his family business

   which is well established and well known in Melbourne.

   The brief about skills, roles and responsibilities of management team is

   described below:



 Name         Position      Qualifications and         Skills              Roles and

                                experience                              Responsibilities

Mr. Rutul     Director-     Masters of Business      Managerial,       Marketing Strategies

 Shukla        Sales,          management             Strategic          Sales Planning

            Marketing and      (supply chain      marketing, Sales

             Operations        management)        planning, People         Operations

                                                    management,           management

                                 7 years of         Distribution &

                              experience in e-    Supply chain and      Report collection

                            business and supply        Project

                             chain industry at      management          Business partner

                             various positions                            management




   Business Plan                                                                 Page 34
                                                                             MovieMate Pty. Ltd.




Mr, Sugito       Director-       Masters of Business       Managerial,             Developing

Shia           Technical and     (e-commerce and         Technical Skills,       technical plans.

               Administration        e-business)             People

                                                          management,           Financial Planning

                                      9 years of             Project               Back office

                                   experience in e-       management,             management.

                                 business at various        Financial

                                 positions including      management           Customer Ordering,

                                      technical                                   Database and

                                                                                     accounts

                                                                                  management

Mr. Chen          Director           Masters in            Managerial,           Will not work full

Zhao                                 Commerce               Financial           time and may not

                                                        Planning, Strategy     involve in operations

                                      8 years of         analysis, Fund

                                    experience of         management            Will be involve in

                                  running business                              strategy planning

                                  (director of a firm                             and Financial

                                  form last 5 years)                                 planning




       For smooth operation of business, we will hire some staff initially and as

       described in development plan, as business grows, new staffs will be hired

       according to the needs.




       Business Plan                                                                      Page 35
                                                                   MovieMate Pty. Ltd.


The table below will gives information about staff to be hired initially, their

position, status roles and responsibilities in the organization. These positions

can be located in the organization chart describe above.




Initial Staff Recruitment

Position                       Status *     Roles and Responsibilities

HR/Accounts Officer            Part Time    HR    and     Pay      management      of

                                            employees

                                            Maintain accounts of business

Administrative Officer         Full Time    Fulfillment of day to day activities of

                                            office/business

                                            Assisting in back office management

                                            Supervision       of   reception     and

                                            telephone operators

Website     and       Content Part Time     Website and content of web site

Developer                                   management

Database       and    systems Full Time     Managing customer data, other data

Administrator                               of website

                                            Managing employees data

                                            Managing office computer hardware

                                            and software and equipment

Sales      and       Marketing Full Time    Follow sales and marketing targets

Officer                                     Follow instructions from directors

Receptionist                   Full Time    General reception duties- telephone

                                            answering, e-mails, visitors and post




Business Plan                                                                    Page 36
                                                                  MovieMate Pty. Ltd.

                                            handing

                                            Assisting    in   order    management

                                            system

                                            Assisting in back office activities

Telephone Operator          Full Time       Answering customers telephones

                                            Assisting    in   order    management

                                            system

Delivery   and   Collection Casual          Delivering and collecting items to the

Representative                              customer’s place

                                            Co-ordination with business partners

                                            for delivery and collection items

Note :- * The status of the position may change as per the needs of business.



As described in development plan above, when business will grow and

expand the services, we may require some more staff to run business

activities smoothly, effectively and timely. To fulfill the requirement of more

manpower we may hire more staff as per the needs. The proposed staff

structure is shown in the organization chart above with doted box and the with

doted lines. The list of proposed staff which we may hire in future as we grow,

as per the needs is given below:



Area Managers: As we grow and expand our service in more areas and

suburbs of Melbourne, we may go for staff expansion as well and hire area

managers. Area manager will be appointed suburbs vise and directly report to

Director- Sales, marketing and Operations will look after their own territories.

They will look after the territory allocated to them and their main duties and



Business Plan                                                                     Page 37
                                                                 MovieMate Pty. Ltd.


responsibilities includes follow instructions of head office for sales,

promotions, marketing targets. Supervision and appointments of delivery and

collection representatives. Smooth operation of delivery and collection

activities in their respective territories.



Marketing Representatives: will work in marketing team and will report to

Marketing and Sales officer. The main duties and responsibilities will include

following targets of business marketing and follow instructions from higher

ups. They will also help area managers in marketing targets.



Sales Representatives: will work in sales team and will report to Marketing

and Sales officer. The main duties and responsibilities will include following

targets of sales and follow instructions from higher ups. They will also help

area managers in sales targets.



Telephone Operators: will work with in a team with other telephone

operators and reports to administrative officer. Their main duties and

responsibilities will be same as other telephone operators (mentioned in initial

staffing table above).



Delivery and Collection Representative:         will work in a team with other

representatives in their area and will report to the respective Area Manager.

They will be appointed by Area Managers (in later stage). Their main duties

and responsibilities will be same as other delivery and Collection

Representatives. (as mention in initial staffing table above).



Business Plan                                                               Page 38
                                                               MovieMate Pty. Ltd.



E-Business Strategy

In order to compete and trading in online media, MovieMate must prepare to

employ and integrate the website in the daily operation. The following website

characteristic to be use for MovieMate:

      Website must be fun, informative and eye catching.

      It should be easy to navigate and does not have “broken link”.

      MovieMate’s website should contain movies/games information,

       coming releases and top 10 movies/games of the week.

      It should be on the top 10 search result for keyword “online video store

       Melbourne” or “online video store Australia” for any search engine such

       as Google, Yahoo, Msn, etc.

      All transaction within the website should be encrypted by 128 bit SSL

       encryption.

      Mirror website should be readily available to be access in case of

       server/host breakdown.

      Regular updates and monitoring to ensure that website contents are

       accurate.



By following those guides, it is expected that MovieMate will able to perform

its business online and establish a new line of business that provides

customer good value and convenience of total entertainment.




Business Plan                                                             Page 39
                                                                 MovieMate Pty. Ltd.



References

Australian Bureau of Statistics (2006), “Australian Social Trends”, Catalogue

Number 4102.2.

Australian Bureau of Statistics (2003), “Disability Australia”, Catalogue

Number 4446.0.

Australian Bureau of Statistics (2007), “Internet Activity - Australia”, Catalogue

Number 8153.0.




Business Plan                                                                Page 40

								
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