cyber lounge

8/7/2019 CYBER LOUNGE

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Geethanjali (09AC11)

Iyer Karthik (09AC14)

Tom Vincent (09AC42)

CYBER LOUNGE


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Objectives..

y To earn profit at less investments

y To satisfy our customers providing best quality

service at effective price

y Providing the service at low cost by providing

the best quality at affordable price

y To know a fair return on the capital invested by

the owner


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Mission Statement..

y To achieve the economies of scale to minimize

costs while maximizing value to customers

y To achieve leadership, core and functional

competencies in Internet Caf business


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Organizational Structure..

Partnership


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Promoters..

y Iyer Karthik MCA Business operations

y Tom Vincent MBA Marketing

y Geethanjali MBA Finance


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Location..

Near PSG College of

Arts and Science,

Avinashi Road,

Coimbatore.


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Why such location..

y High visibility

y Proximity to the majority of people living, who are

from middle income group

y Proximity to Private hostels setup in different

areas of cities

y Low cost rent Rs 16,000


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Operational Feasibility

y P-4 computer systems

y Usage of latest systems- new software-

better services

y DSL (Digital subscriber line) Internet

connection for better speed and high

connectivity


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Contd

y DSL - improves the performance of video

chatting & reduces the telephone expenses

y Airtels DSL Internet connection

y Wide range of plans available.

y DSL 1250 with a bandwidth of 512kbps


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Target Customers

y Students

y Business people

y Middle Income Groups

y Private Hostels


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Marketing analysis

Product Differentiation Strategy !!


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Marketing Feasibility..

y Unique services

y Coffee shop

y Music Library

y Gaming

y

Location advantageous - different types of

customers


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Promotions

y Coupons and discounts

y Membership card:

-Monthly schemes- Rs 500

-Weekly schemes Rs 130


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Opportunities

EDUCATIONAL

INSTITUTES

NUMBERS

Engineering college 30

Arts and science college 67

Polytechnic college 16

MCA college 15

Primary school 178

Higher secondary school 130


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Threats

y Cost factor associated with

keeping state-of-the-art hardware

y Emerging local competitors


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TECHNICAL ANALYSIS


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Proposed Capacity..

The proposed project is based on 20

computer systems

Project Cost

The total cost of the project is

approximately Rs 11, 10,000


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Capital Outlay..

Capital expenditure Total cost(Rs)

Equipment 659,200

Furniture and fixture 231,000

Pre-operational expenses 28,000

Total capital expenditure(A) 918,200

Working capital

Up front insurance payment 0

Up front building rent 192,000

Total working capital(B) 192,000

Total investment in project (Rs)

(A)+ (B)

1110,200


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Means of Finance..

Particular Ratio Amount(Rs)

Equity Shareholder Fund

Iyer Karthik 1/3 370,067

Geethanjali 1/3 370,067

Tom Vincent 1/3 370,067


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Factors considered for

Investments

Location of the project

Unique services

Quality of service


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Equipment requirement..

Description Number Cost per unit

(Rs)

Total

cost(Rs)

Computer system(p-4) 21 25000 525000

Hub 1 6000 6000

Computer camera 20 1000 20000

UPS 1 60000 60000

Printer 2 28000 28000

Scanner modern 1 4000 4000

DSL 1 8000 8000

Networking cable 500 ft 10 / ft 15000

Total equipment cost 659200


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Human Resource

Description Number Monthly

Salary (Rs)

Annual

Salary(Rs)

NetworkAdministrator

1 8,000 96,000

Web designer 1 11,000 132,000

Assistants 1 4,000 48,000

Total Cost 276,000


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Ratio Analysis

2012 2013 2014 2015 2016

27.54% 26.72% 24.89% 22.38% 20.20%

Return on owners equity = Profit after Tax x 100

Owners equity


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Ratio Analysis

2012 2013 2014 2015 2016

.83 times .93 times 1.04 times 1.17 times 1.30 times

Return on Assets = Profit after Tax x 100

Total Assets


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Net Present Value..

YEAR CASH FLOW DISCOUNT AT 20%

0 (1,110,200) (1,110,200)

1 400,678 333,898

2 475,319 330,083

3 549,715 318,122

4 608,724 293,559

5 664,002 266,848

NPV 432,310


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Pay back Period..

YEARS CASH FLOWS

1 400,678

2 475,319

3 549,715

4 608,724

5 664,002

Pay back Period = 2 years and 5 months


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Road Ahead

y Computer and animation courses

y E- seva

y Peripherals


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THANK YOU !!

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