University of Central Punjab

Elation Club

Entrepreneurship

Final Project

Section: C

Presented to Prof. Aitzaz Khurshid

Group Members

Mohsin Mahmood

L1S07MBAM2006

Hassan ZiaL1S07MBAM202

2

Umer Saleem L1S07MBAM2031

Haq NawazL1S07MBAM201

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Acknowledgement

We all are thankful to Allah (S.W.T) the most merciful and most beneficial to mankind. Who know what is right and what others don’t. Who give us power to do things what others can’t.

We are also grateful to our Prof. Aitzaz Khurshid who has provided us this wonderful opportunity to improve our abilities as an Entrepreneur. We wish that our teacher will be more prosperous in future.

As we were making this report we face many hurdles. Sometimes all four group member’s give-up that it is too difficult to make this report. The phenomenon of competition with other is the driving force to make this report and all our friends who help us when we struck in clearing some concept. We all appreciate their worth because without their help this report can’t be made.

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TABLE OF CONTENTS

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Page No.

1 Entertainment Business Synopsis 6

2 Scope in Pakistan 8

3 Our Business Notion 9

4 Mission & Vision Statement 9

5 Our Competitive Edge 9

6 Our Future Objectives 10

7 Marketing Plan 11

7.1 Market Analysis 12

7.2 Market Segmentation 13

7.3 Sale forecast 15

7.4 Marketing Research 16

7.5 Marketing Mix 19

7.5.1

Product 19

7.5.2

Price 26

7.5.3

Promotion 27

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7.5.4

Placement 32

7.5.5

Physical Evidence 33

7.5.6

Process 37

7.5.7

People 38

8 SWOT Analysis 40

9 Organizational Plan 46

10 Financial Plan 65

11 Credits 72

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Entertainment Revolutionized

Entertainment Business Synopsis

Entertainment is as old as mankind. Entertainment gives pleasure or relaxation to an audience. The audience may participate in the entertainment passively as watching opera or a

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movie or playing games. People use different modes to entertain themselves like Animation, Cinema, Theatre, Circus, Comics, Dance, Reading, Games, and Music etc.

As we are now in 21st century the modes of entertainment are enhanced at a very high level. The first motion picture was filmed on October 14, 1888 named Roundhay Garden Scene by Louis Le Prince. Movies are filmed on reels. As movies at that time are in black & white color and sound less audience entertainment

themselves by seeing the motion. The most famous movies at that time are of Charlie Chaplin and Lauren & Hardy. In 1926 Warner Bros. introduced the “Vitaphone” system, producing short films of live entertainment acts and public figures and adding recorded sound effects. In 1918 color movies are started to produce few of the color movie are Cupid Angling, The Wizard of OZ, Gone with the

Wind. In September 1976 the Victor Company of Japan, Limited (JVC) launched Video Home System, after that movie make their way to people homes. The resolution of VHS is 320 Pixels.

Video Games were introduced as a commercial entertainment medium in 1971. Soon in 1983 over two decades it become a $10 billion industry and become the rivals of motion picture industry as the most profitable entertainment industry in the world. In 1971 Arcade games was installed at a student union at Stanford University. Soon video Games make their place to Computer systems. Atari Corporation makes the first home video gaming system after that Nintendo introduce 8bit home computer system which is very famous in homes. SEGA introduce 16-bit Mega Drive System which also take a big market share.

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In 1982 Compact Disc (CD) was introduced by Sony and Philips Consumer Electronics. After that movie and games started coming on CDs it has a resolution of 352x288. CD is in 700MB. In 1994 Sony makes a 32-bit system Playstation that run games on CDs. It is the most famous system in the gaming industry. In 1993

Digital Versatile Disc (DVD) was developed by Sony and Philips again. The Resolution of DVD is 720x576 and DVD has widescreen width 16:9. DVDs are available 4.7GB and 8.5GB. Sony in 1999 developed Playstation 2 gaming system which run games and movies on

DVDs and in 2007 Sony developed Blu-ray Disc which has a capacity of 50GB almost six times the capacity of a 8.5GB DVD. Blu-ray support 1080p resolution. Movies and games are now coming on Blu-ray which is in pure High Definition. Now gaming industry become the multibillionaire industry.

Following chart show the market share of Sony, Microsoft, Nintendo and some other gaming companies.

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Scope in Pakistan

The entertainment industry has a bigger scope in Pakistan. The youth is fond of the digital entertainment. They spend thousands of Rupees monthly on DVD Movies and Games. As there is no copyright Protection law applicable in Pakistan the games and movies are copied from original medium and sold at a very cheap rates. DVD movies are easily available at Rs. 30 and Video Games at Rs. 60 in Pakistani markets. The younger generation is getting more enthusiastic about Digital Entertainment. Now as the Blu-ray technology has come and it hasn’t been tweaked yet. There is a great scope of Blu-ray technology in Pakistan because of its eye glazing resolution. Websites like Pak Gamers www.pakgamers.com promote gaming in Pakistan. Many people are the member of this site.

Our Business Notion

Elation Club as its name defines great happiness. We wanted to provide great happiness to our customer by entertaining them

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with digital technology. In our club we provide High Definition Movie Elation Cinemas and High Definition Gaming Arena.

For Elation Cinema we use high definition Projectors and Blu-ray medium which provide the ultimate high definition experience. For Gaming we use the most advance gaming consoles available in the market. Which are also in High Definition.

Mission Statement

“Our mission is to provide great happiness to customer in long run by providing advance entertainment Technology”

Vision Statement

“We want to be the market leader in providing digital entertainment. We will use the most advance Technology to provide entertainment. Make our self different from other to provide the unbeatable service.”

Our Competitive Edge

Our competitive edges as compare to the competitors are following:

Use of most advance and latest technology available in the market.Availability of different entertainment services under one roof.Club environment purely design for entertainment.

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Club information system for online time booking, voting for movies to be played.

Our Future Objectives

Our future objectives of the business are following.

To acquire the most advance technology before our competitor that is available in the market.To widen our business by opening more outlets of Elation Club in other cities of Pakistan.Add value to the customer by offering more valuable services.Make our Customer fully satisfied with our services.

Marketing Plan12

Entertainment Revolutionized

Before launching any new product or service first an environmental or marketing research must be conducted. Marketing department of elation club does research on following dimension.

Decide which target market to select and serve.Seek-out the competitive edge in the targeted market.Meet the customer wants and need cordially in the targeted market.

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Design Marketing Mix that perfectively suits the targeted market.

Market Analysis

Our Customer:

Geographic

We have targeted people living in following areas of Lahore. DHA, Cant and Gulberg.

Demographic

We are focusing on age, education and class. The age group we have targeted is 15 – 30 who are literate and belong to reasonable class.

Behavioral

Our customer behavioral characteristic is that they like high quality entertainment service. We will provide them latest technology which makes our relationship with them more solid.

Our Competitor:

Direct competitor

There is no direct competitor of our. Who provide different entertainment services under one roof.

Indirect Competitor

There are some indirect competitors who provide partial services related to our services like some gaming zones and

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cinemas. These competitors do not provide all the services which we are providing under one roof.

These are the names of some of our competitors:

Gaming Zones

NeoMatrix (Liberty Market, Y-Block DHA, M-Block Model Town)

AniMatrix

Battle X (Link Road, Gulberg)

360 Zone

Cinemas

DHA Cinema.

SozoWorld.

Market Segmentation

The total population of Lahore is 6319000. We have use breakdown process for sale forecasting. Our marketing department has segmented the market under following parameters to forecast sale.

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Lower Class Middle Class Upper Class0%

10%

20%

30%

40%

50%

60%Lower Class; 55%

Middle Class; 38%

Upper Class; 7%

POPULATION BREAKDOWN

The market we are targeting is youth in middle and upper class. That portion is 45% of 6319000 which is 2843550. That population further distributed into age factor.

30%

37%

33%

Age Breakdown Percentage

0-1515-3031-Above

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So the 37% of 2843550 is 1052113. We further distribute the population into literacy rate.

54%

46%

Literacy Breakdown Percentage

educatedilliterate

The complete breakdown table is given below.

Sale Forecast

Variables Source %age Market Potential

Lahore population Wikipedia.org 6319000% of upper & middle class people

45% 2843550

% of 15-30 age limit people

Population Reference Bureau

37% 1052113

Literacy rate Wikipedia.org 54% 568141% of people who like to play games and watch movies

Market survey 45% 255663

% of people who go gaming cafes and cinemas.

Market Survey 40% 102265

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Finally 102265 is the market potential of our services. We expect that 1 out of 20 people will join our club. That comes to 102265 x 1 / 20 = 5113. So the sale forecast figure is 5113 people.

Marketing Research

Marketing research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market. Its uses include helping create a business plan, launch a new product or service, fine tune existing products and services, and expand into new markets. We have conducted marketing research for our services by different tools. We use Questioner and 1 to1 interview. The questioner we have taken is given below.

Questioner:

Name:

Gender:

Age: Reg:

1. What is the importance of entertainment in your life.

LittleAverageHighExtreme

2. What kind of entertainment sources you use to entertain yourself.

TVInternetMovies

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Video Games

3. How much you spend on Entertainment activities.

0 – 500500 – 20002000 – 5000Above 5000

4. How much time you spend in Entertainment activities.

0-2 Hours2-5 Hours5-8 HoursAbove 8 Hours

5. What kind of medium you use to watch Movies.

VHSCDDVDBlu-ray

6. Which system you already owned in your home.

Personal ComputerPlaystation 3Xbox 360Nintendo Wii

7. Which type of Movies and Games you like most.

ActionAdventure

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HorrorSi-FiOthers

8. If there is some entertainment club would you like to join it which provide Movies and Gaming under one roof.

YesNo

9. Do you use Internet to play Games and Watch Movies.

YesNo

10. Do you like to play & watch Games and movies in High Definition.

YesNo

Interview:

We also done interview of different people for conducting marketing research. In interview we ask about the taste of the people that which genre of games and movie they like for example Action, Adventure, Fighting etc. and some other question.

Marketing Mix

Product:

Environment for entertainment matters a lot Our Elation Club Have the most suitable environment which is most desirable for

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digital Entertainment. We are providing the services of Video Games and Bluray Movies to our customer.

Games:

Customer can play the game of their choice which is available in the Club. Each member have a profile on Xbox 360 and PS3 so he can the save the achievements, mission clear data of the games on the HDD (Hard Disk Drive) of the consoles and can load the game from where he or she left the game. Following are the video games right now available in the club. We will increase our gaming library as more demanding games come in the market.

Grand Theft Auto 4Players: Single Player,

MultiplayerGenre: Action, Adventure

Platform: PS3

Unreal Tournament 3Players: Single Player,

MultiplayerGenre: ShooterPlatform:PS3

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Shivering IslesPlayers: Single Player

Genre: Role Playing GamePlatform:PS3

Ridge Racer 7Players: Single Player,

Multiplayer, OnlineGenre: RacingPlatform:PS3

Assassins CreedPlayers: Single Player

Genre: ActionPlatform:PS3

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Halo 3Players: Single Player, Co-op,

Online Co-op, multiplayer, online multiplayer

Genre: ShooterPlatform: Xbox 360

Burnout ParadisePlayers: Single Player, Online,

MultiplayerGenre: Racing

Platform: Xbox 360

Devil May Cry 4Players: Single Player

Genre: ActionPlatform: Xbox 360

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Virtua Tennis 3Players: 1 to 4 Players

Genre: SportsPlatform: Xbox 360

Gears of WarPlayers: Single Player, Co-op

mode, System link, multiplayerGenre: Shooter

Platform: Xbox 360

Call of Duty 4Players: Single player,

MultiplayerGenre: Shooter

Platform: Xbox 360

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Dead RisingPlayers: Single Player

Genre: ActionPlatform: Xbox 360

Coming Attratctions at Elation ClubSoul Calibur 4 Metal Gear Solid 4

Beside these gaming titles we will bring more Anticipated title in Elation Club as they come in the market. So the members can play their favorite game in the club. Following chart explain which genre of games people like the most.

Ninja Gaiden 2

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Movies:

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Movies on bluray are second source of entertainment in elation club. Mostly people love to watch movies on big screens

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and Dolby surround system. Our Elation Cinemas are highly equipped with latest technology supporting high definition so the audience can enjoy best picture and sound quality. We will play the block buster movies in our Elation cinemas on Saturday nights and all other demanding movies on other day. Members are allowed to poll on our website in the given movies they want to watch. Few of the movies in our list are given below.

Price:

Price is the only revenue generating element amongst the other P’s, the rest being cost centers. Pricing is the manual or automatic process of applying prices to purchase and sales orders.

In pricing we offer three cards namely Diamond Card, Golden Card, and Silver Card. Which have different benefits and discount rates. We have different pricing rates for walk-ins. Price for our different cards and each service in case of walk-ins is given below.

Diamond Card Diamond Card Price: Rs.

6000 Discount Rate: 30 % Per Hour Game Rate: Rs.

140 Movie Ticket Rate: Rs. 210

(Plus 2 Movie free Weekly)

Gold Card

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Gold Card Price: Rs. 4000 Discount Rate: 20% Per Hour Game Rate: Rs.

160 Movie Ticket Rate: Rs. 240

(Plus 1 Movie free Weekly)

Silver Card Silver Card Price: Rs. 2000 Discount Rate: 10% Per Hour Game Rate: Rs.

180 Movie Ticket Rate: Rs. 270

Walk-ins Per hour Game rate : Rs.

200 Movie Ticket: Rs. 300

Promotion:

Promotion involves disseminating information about a service, service line, brand, or company. It plays a very important

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role in the success of business and it also creates the good business image in customer mind. We elation club have decided to promote our service through different electronic and printed media.

Advertisement on Cable TV:

Advertisement on cable TV is the most influence advertising media in Lahore. So we will give first priority to cable TV for advertisement. Our advertisement will run on Cable TV in between from 3 to 10 pm because in these timing peoples mostly watch TV. Our hotlines will also run on the Cable TV beside full advertisement

Advertisement in Newspaper:

Newspaper is mostly read by many people. So we will do advertisement in those newspaper which are mostly readied e.g. JANG, The News, DAWN etc. we will specially focus to give our advertisement in Sunday’s edition because people are mostly free on Sunday and seek entertainment places.

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Magazines:

We will also advertise on magazines which are related to Video games, Movies, Internet etc. e.g. Spider, NetMag, GamerPK etc.

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Billboards:

Billboards are large outdoor advertising structure typically found in high traffic areas such as alongside busy roads. We will advertise on Billboards. Our billboards will be on different sites of Lahore.

Passes:

Passes are vouchers to indicate that the holder is allowed for admission in club. We also use passes as a source of advertisement of our club. We will give passes of playing free hour gaming, watch movies etc.

T-shirts:

We will also promote our Club by distributing t-shirts in the public on which our logo and slogan are printed.

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Brochures:

Brochures are usually succinct in language and eye-catching in design. We will use brochures by distributing them into our potential market or by mailing it to potential customers.

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Website:

We will promote our club on the web. We have our own website on which customers can subscribe to our membership. We will also use a newsletter service online in which we will email newsletter to our register users. In which we will tell about new package and offers etc. our web site is:

www.elationclub.com.pkWe will also advertise on different famous gaming sites

on the net.

www.ign.com

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www.pakgamers.com

Placement:

Placement in marketing means where business is going to deliver its service. We are going to deliver service to our customer on following addresses

Club Location:

Elation club head Office is situated in fortress, Cantonment, Lahore.

Web Address:

Our club web site address is www.elationclub.com.pk

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Physical Evidence:

Physical evidence is the element of the service mix which allows the consumer again to make judgments on the organization. Consumer will make perceptions based on their sight of the service provision which will have an impact on the organization perceptual plan of the service.

Club Atmosphere:

The club atmosphere we are going to have can be explained by the following pictures.

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We will install the LCD’s with consoles. There will be a system number on each Wall behind the LCD so the customer can go on the system they are directed.

The Elation Cinemas are going to be like this. There will be more than 1 Elation Cinema hall. Members will vote for the movie they wanted to watch.

Technology we use:

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Following are the technologies we use in our club to entertain our customer. In gaming section we use the following technology.

GAMING SectionPlaystation 3

Sony’s Gaming Console CPU: 3.2 GHz Cell

Broadband Engine GPU: NVIDIA-SCEI “RSX” Media: Blu-ray Disc, DVD,

CD Controller Input: Sixaxis/

DualShock 3 Online Service: Playstation

Network

Xbox 360 Microsoft’s Gaming

console CPU: 3.2 GHz PPC Tri-core

Xenon GPU: 500 MHz ATI Xenos Media: HD DVD, DVD,

DVD-DL, CD Controller input: Wired or

Wireless Controllers Online Service: Xbox Live

Samsung LCDs

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Screen size: 30” Widescreen

Resolution: 2560 x 1600 Brightness: 200 cd/m^2 Contrast Ratio: 1000:1

In Elation Cinema section we use the following technology.

Elation Cinema SectionProjectors

Full HD 1080p 15,000:1 contrast ratio

(with Advanced Iris) BRAVIA Engine™ SXRD chip 12-bit Panel Drive Full Digital Chassis ARC-F Lens Real Color Processing 200W Ultra High Pressure

Lamp 1080/24p input capable

Blu-ray Player Full HD 1080/60p and 24p

True Cinema Video Output DVD Upscaling to 1080p

via HDMI Dolby® Digital Plus

decoding capability

Sound System

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HDMI™ Output with 1080i upscaling of DVD Media

DIGITAL MEDIA PORT BRAVIA® Theatre Sync

Process:

A process is a collection of contributions from each micro operation to fulfill customer’s needs. Process refers to the systems used to assist the organization in delivering the service. Our Club process can be explains by the following diagram.

In the process firstly the customer will come in the club. Which are of two type’s walk-ins and members or those who wanted to get the membership (New Member).If the customer falls in walk-ins he or she will go to the booking / cash counter if he doesn’t want to get the

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membership. There he will book the game he wanted to play or buy the movie ticket and pay cash.If the Walk-ins customer wants to get the membership then he or she will go to the member counter to become a member of the club. The member counter person after getting the required information diverts the customer to the cash counter for the payment of fee.If the customer is old member then after verifying his or her card on member counter the information is sent to the cash counter so the discount rates can be applied. If the subscription is expired then he or she has to renew it.All the customer weather members or walk-ins after paying can go to the station which is instruct by the cash counter person.

People:

People are the most important asset of an organization even more important in service organization. Services tend to be produced and consumed at the same moment, and aspects of the customer experience are altered to meet the ‘individual needs’ of the person consuming it.

Employees:

As we are providing entertainment services by using latest technology .we are going to recruit those people have some technological background (knowhow of Gaming Consoles, Projectors, LCDs etc.) and good communication skills so by recruiting them we make sure that customer are satisfied up to maximum level. Once the candidate is declared successful in interview, Elation Club will give them orientation on first day of their job. In orientation program staff members will be given instructions about operations of Elation Club. They will be taught

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how the working will take place and how to deal with customer. Training will begin as soon as the individual starts working during induction. We use on the job training to train our employees.

On the job Training:

“Training a person to learn a job while working on it”

For the on job training the new employee will work under old specialized employee. In which they are going to handle real Club situations for example: gaming console turn off, customer have some problem etc. Operational manager will also give his instructions to improve on the job training program so that better results can be seen. This will help the new employee to understand day to day operations.

Basic contents of training employee:

How to communicate with customers.How to behave if some problem exists in the system.How to react on customer complaint.How to operate daily routine activity operation.

SWOT Analysis43

Entertainment Revolutionized

Strength:

Strengths are those attributes of the organization that are helpful to achieving the objective. We have following strengths.

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We use High definition technology to entertain our customers as compare to our indirect competitors. All the technology we use which is describes above in the physical evidence support 1080p high definition.

Blu–ray disk is also one of our strength. The Single layer Blu-ray disk has 25 GB capacity and Dual layer Blu-ray disk has 50 GB capacity. So it presents the pure high definition result as compare to HD-DVD or DVD.

One of our strength is that we provide Multiple Entertainment services under one roof as compare to our competitors.

The services we are providing are reasonable for mostly the upper and middle class we are focusing so it is also our strength.

We will play movies on demand in our Elation Cinema. There is an online polling service on our website on which the customers can vote the movie they want to watch in Elation Cinema. The can also vote by coming into the Club. (For Members Only)

As we are conscious about customer satisfaction as to our indirect competitors. So customer satisfaction is one of our strengths.

We are providing enhanced services which are never been experienced before.

Weakness:

Weaknesses are those attributes of the organization that are harmful to achieving the objective. We have following weaknesses.

One of our weaknesses is that the market we are focusing is limited. We are focusing above lower class which is lesser part of the population in Pakistan.

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As the technology we are using is costly so maintaining it is also one of our weakness as compare to our indirect competitors.

Opportunities:

Opportunities are external conditions that are helpful to achieving the objective. We have following opportunities.

We have the opportunity to open the chain of our clubs nationwide because right now there is no club providing such services under one roof.

If our services are liked by the people then we have the opportunity to gain higher goodwill in this business.

Threats:

Threats are external conditions that are harmful to achieving the objective. We have following threats.

As Pakistan falls under the 3rd world countries and economy of Pakistan is not stable we have a threat then people will not buy our services because they seem to be costly.

Political instability is also one of the threats. Every day there is some crisis going on in the country so it is very difficult to work under such situation.

Religious constraints are also the threat because such kinds of service are not liked by extremist people in our society.

As there is no close competitor so there is a threat that if our business is successful the other people will copy us.

As our competitive is the use of advance technology. Every year new technology is invented and old one become obsolete so it is also the threat for our business.

Public are not aware of the latest technology in Pakistan. Most people don’t know that what is Blu-ray, High Definition, 1080p etc. so promoting awareness is also a threat.

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Operational Plan

Entertainment Revolutionized

Departments of Elation Club

Following are the main departments in Elation club namely Administrative department, Marketing Department, Technical

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Department and Financial Department. Further details about the department are given below.

Administrative Department:

The Administrative Department of Elation club is responsible for providing support and services for the administrating activities of the Elation club, they also performs staff functions regarding security and maintenance for the Elation club. The Department is also responsible for economic issues, operations internal service and premises, and person registries and archives. The Department’s secretariat includes procurement experts.

Marketing Department:

Marketing Department of Elation Club focuses on the practical application of marketing techniques and the management of a firm's marketing resources and activities. Marketing personal are responsible for influencing the level, timing, and composition of customer demand in a manner that will achieve the Club's objectives. The main function of marketing department is to advertising and brushers, websites etc.

Technical Department

Technical department of elation club will perform and report as new technology come into the international market and updating the equipment is also the responsibility of technical department. It also handles the technical issue which arises in gaming and cinema sections like for example malfunctioning of the machine etc.

It is also the responsibility of technical department help the customer in the club if they have any problem in playing game. Like for example the Sixaxis function in Playstation 3 controller is

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difficult for some people to control so in that case they can take help.

Financial Department

Financial department of elation club is responsible of collecting and maintain all the financial data of the club. It is responsible of controlling the costs of the club and maintains it according to the changing trends of the country. It wills responsible for the risk management will give advises about investing in the new technology. financial department will also foam club short term and long term business strategy. It will deal with the third parties like govt. for taxes etc.

The financial database of members of the club will also be maintained by the financial department. Finally it will give important report to the CEO which club current financial position and future prospects.

Hierarchical Chart:

Following is the Elation Club hierarchical chart. Which

explain different position in the club.

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Board Of Directors

Mohsin MahmoodUmar SaleemHassan ZiaHaq Nawaz

Admin Head Awais Butt

Marketing Head

Usman Sheikh

Finance Head Naveed Bhatti

Technical Head Hasaan Qadir

Admin Manager Naseem Zafar

Marketing Manager

Umais Akhtar

Finance Manager

Rashid Zubair

Technical Manager

Ahmed Mukhtar

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Functions and Responsibilities

Board of Directors:

Board of directors of Elation Club are working as higher most management level and are taking all decisions about Elation Club operations.

Administration Head:

The Administrative head of Elation club is responsible for collecting all the information and queries extracted from admin department to communicate to the board of directors and implementing the admin decisions received from board of directors.

Marketing Head:

Marketing Department head of Elation Club are also in direct collaboration with board of directors and are forwarding the necessary information of marketing department to them for decision making and are receiving response from board of directors.

Technical Head:

Technical department head is also performing the function of collecting the information regarding the new technology available in the market and providing report to the board of directors regarding new establishments.

Finance Department

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Elation Club finance department head is responsible for performing activities related to the financial position of the club and reporting back to the board of directors. He is also responsible for arranging meetings with the investors and giving them the current position of the club.

He also administrates the accounts, billing, salaries of employees, customer archive and maintain all financial records of the company.

Department Managers:

Each department manager is responsible for collecting all necessary information from there related department and communicate it to the department heads. They also help department heads in performing activities related to their own department and most importantly to implement it.

They also communicate organizational goals to their department subordinates through different channels of communication.

Assistant Managers:

Assistant Managers in each department of Elation Club are responsible for reporting about the implementation of activities to the department Managers. They mostly collect the information regarding current activities from their sub-ordinates.

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Support Staff:

At Elation Club a number of workers are working as supporting staff like:

Admin Officer

Administrative Staff

Information Officer

Customer support Officer

Finance Officer

Accountants

Assistant Accountant

Security Staff

Maintenance Staff

Each of above is responsible for reporting about their activities to their higher management person.

Number Of EmployeesDepartment No. of Employees

Admin Department 31

Marketing Department 7

Finance Department 12

Technical Department 13

Total 63

Style of Management

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The organizational goals are set at the top level of Management in the annual general meeting and then breaks them down in to sub-goals for each department. These goals are communicated to department heads who further distribute these responsibilities of goals into subordinates.

Environment of the Club

The environment of the club is very friendly to the employees as well as its customers. Main objective of the club is that employees express their feelings freely with each other and able to provide subjection to top management regarding improving the clubs popularity and give new ideas.

Club Values

Create trust among our customers

Provide joy to our customers to get relief from their routine

lives

Provide total Customer Satisfaction

Customer friendly environment

Provide best facilities available to employees and customers

Gaming Zone Process Blue Print

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Movie Theatre Service Blue Print57

Our Equipment

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Following are the equipment that we use in Elation Club.

Playstation 3

The PlayStation 3 is the third home video game console produced by Sony Computer Entertainment. A major feature that distinguishes the PlayStation 3 from its predecessors is its unified online gaming service, the PlayStation Network, which contrasts with Sony's former policy of relying on game developers for online play. Other major features of the console include its robust multimedia capabilities, connectivity with the PlayStation Portable, and its use of a high-definition optical disc format, Blu-ray Disc, as its primary storage medium. The PS3 was also the first Blu-ray 2.0-compliant Blu-ray player on the market.The PlayStation 3 was first released on November 11, 2006 in Japan, November 17, 2006 in North America, and March 23, 2007 in Europe and Oceania. Two SKUs were available at launch; a basic model with a 20 GB hard disk drive (HDD) and a premium model with a 60 GB HDD and several additional features. Since then, several revisions have been made to the console's available models and it has faced stiff competition from the other seventh generation consoles. As of December 20, 2007, the PS3 is in third place in home console sales for its generation.

Xbox 360

The Xbox 360 is the second video game console produced by Microsoft, and was developed in cooperation with IBM, ATI, and SiS. The integrated Xbox Live service allows players to compete online and download content such as arcade games, game

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demos, trailers, TV shows, and movies.The Xbox 360 was released on November 22, 2005, in the United States and Canada; December 2, 2005, in Europe and December 10, 2005, in Japan. It was later launched in Malaysia, Mexico, Colombia, South Korea, Hong Kong, Singapore, Taiwan, Australia, New Zealand, South Africa, Chile, India, Brazil, Poland, Czech Republic, and Russia. Microsoft has additionally announced official launches in: Hungary, Slovakia, and the Philippines. In its first year on the market, the system launched in 36 countries, more countries than any console has launched in a single year. Due to its early launch, the Xbox 360 had a one-year lead on both of its competitors, Sony's PlayStation 3 and Nintendo's Wii.The Xbox 360 console has still not yet been launched in Morocco.

BD Player

See and hear a whole new world of high definition with the incredible BDP-S300 Blu-ray Disc™ Player. The crystalline clarity

of 1080p Blu-ray Disc movies and DVD upscaling has to be seen to be believed. Amazing 24p True Cinema output and cinema-tuned picture presets allow you to see movies exactly how the director intended. And with BRAVIA® Theatre Sync, now you can control your compatible

BRAVIA TV and AV systems from just one remote.

HD Projector

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Full 1080p high definition with three SXRD™ micro-display panels for the ultimate home theater experience is what you get with the VPL-VW40 1080p home theater front projector. What makes it so special? For starters, nothing recreates the atmosphere of going to the movies like a projector. With images up to 300" and crisp and clear images from the BRAVIA Engine™ Video Processing System, you'll experience the true color and excitement that Hollywood intended. An All Range Crisp Focus (ARC-F) lens and Real Color Processor (RCP) that further enhances colors and images are also included for premium video quality. There's also an ultra-quiet fan and improved lamp life making this a lightweight, versatile projector that's sure to take your home entertainment to another level.

LCD Monitors

The Samsung SyncMaster 305T has a sparse feature set--you get one DVI port, for instance--but it more than earns its keep with excellent all-around performance. It showed accurate and vivid colors, stellar Blu-ray and DVD picture quality, and impressive viewing angles. If you're looking for a large display for gaming, movies, and normal office use with a high-quality picture and don't need HDMI or component video connections, then the

Samsung SyncMaster 305T will not disappoint.

Sound System

A party just isn't the same without good music. The LBT-ZUX9 mini hi-fi component

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system has what it takes to get the party started. For optimum versatility, you can connect optional accessories like iPod® or Walkman® music players, there's a three-disc CD changer that plays MP3s from burned CDs, a dual cassette for your classic mix tapes and an FM tuner with 30 presets to enjoy your favorite radio DJs. With 1,000 total watts of power and D-Light Sync® capability for fun lighting effects, you'll have all you need to keep your guests entertained for hours.

Head Phone

The creative headphone delivers exceptional sound quality with active noise cancellation and closed ear cup design. Comfortable for extended use with ergonomically designed leatherette pads. The HN-700 features a folding headband, storage pouch, and removable side cable and airplane adapter - ideal for the traveler.

Power Generator

Electricity generation is the process of converting non-electrical energy to electricity. For electric utilities, it is the first process in the delivery of electricity to consumers. The other processes, electric power transmission and electricity distribution, are normally carried out by the electrical power industry. Electricity is most often

generated by electromechanical generators, primarily driven by heat engines fueled by chemical combustion or nuclear fission but also by other means such as the kinetic energy of flowing water and wind. There are many other technologies that can be and are used to generate electricity such as solar photovoltaic.

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Main Terminologies

Bluray Disc

Blu-ray Disc (also known as Blu-ray or BD) is an optical disc storage media format. Its main uses are high-definition video and data storage. The disc has the same dimensions as a standard DVD or CD.

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The name Blu-ray Disc is derived from the blue laser (violet coloured) used to read and write this type of disc. Because of its shorter wavelength (405 nm), substantially more data can be stored on a Blu-ray Disc than on the DVD format, which uses a red (650 nm) laser. A dual layer Blu-ray Disc can store 50 GB, almost six times the capacity of a dual layer DVD.

HDMI

The High-Definition Multimedia Interface (HDMI) is a compact audio/video connector interface for transmitting uncompressed digital streams. It represents a digital alternative to consumer analog standards such as Radio Frequency (RF) coaxial cable, composite video, S-Video, SCART, component video, D-Terminal, and VGA.HDMI connects digital audio/video sources such as set-top boxes, Blu-ray Disc players, personal computers, video game consoles, and AV receivers to compatible digital audio devices, video monitors, and digital televisions (DTV).

HD-DVD

HD DVD or High-Definition Digital Versatile Disc is a high-density optical disc format designed for the storage of data and high-definition video.

HD DVD is derived from the same underlying technologies as DVD. Since all variants except the 3× DVD employed a blue laser with a shorter wavelength, it can store about 3¼ times as much data per layer as its predecessor (maximum capacity: 15 GB per layer instead of 4.7 GB per layer).

1080p Full HD

1080p is the shorthand name for a category

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of display resolutions. The number "1080" represents 1,080 lines of vertical resolution, while the letter p stands for progressive scan (meaning the image is not interlaced). 1080p is considered an HDTV video mode. The term usually assumes a widescreen aspect ratio of 16:9, implying a horizontal resolution of 1920 pixels. This creates a frame resolution of 1920×1080, or 2,073,600 pixels in total. The frame rate in Hertz can be either implied by the context or specified after the letter p, such as 1080p30, meaning 30 Hz. 1080p is sometimes referred to in marketing materials as "Complete High-Definition". However, 2K/4K digital cinema technology is commercially available, and ultra-high definition video is in the research phase.

Xbox Live

Xbox Live (trademarked as Xbox LIVE) is an online multiplayer gaming and digital media delivery service created and operated by Microsoft Corporation. It was first made available to the Xbox video game console. An updated version of the service became available for the Xbox 360 console at that system's launch. Games for Windows - Live makes certain aspects of the system available on Windows Vista PCs, with plans to extend Live to other platforms such as handhelds and mobile phones as part of the Live Anywhere initiative.

Playstation Network

PlayStation Network, often abbreviated to PSN in the gaming community, is Sony's free online service provided for use with

their PlayStation 3 (PS3) and PlayStation Portable (PSP) video game consoles. As of May 16, 2008, there are over 9.8 million registered PlayStation Network accounts worldwide. Kaz Hirai (President of Sony Computer Entertainment INC.) said at the mid-term strategy meeting on the 26th June 2008 more than 9.8 million PSN accounts have been

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registered worldwide, with users having made 170 million downloads totaling 86 peta bytes of data, which Sony says is equivalent to 17 million single-layer DVDs worth of data.

Financial Plan

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Entertainment Revolutionized

Equipments

Description Quantity. Per Unit Cost (Rs)

Total Cost (Rs)

Core 2 Duo Processor Based Computers.

5 Laptops 25

Desktops.

45,00030,000

975,000

Playstation 3 Systems. 20 Consoles 25,000 500,000

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Xbox 360 Systems. 20 Consoles 24,000 480,000

30 Inch Widescreen LCDs.

40 30,000 1,200,000

Projectors. 3 120,000 360,000Blu-ray Player. 3 15,000 45,000Hi-fi Sound system. 3 30,000 90,000Headphone for Gaming 60 800 48,000Power Generator 1 500,000 500,000Data Base Management system

1 200,000 200,000

Printer 10 12,000 120,000Total 4,518,000

Furniture & Fixtures

Description Quantity. Per Unit Cost (Rs)

Total Cost (Rs)

Office Furniture - - 200,000Club Furniture - - 600,000Central Air Conditioner 1 2,000,000 2,000,000Telephone sets 4 2,000 8,000Fax machine 2 8,000 16,000Carpeting - - 50,000

Total 2,874,000

Land & Building Requirement

Description Area Required (sq. ft)Gaming Area 800Cinema Area 600Office Area 200Other Area 200Total Area Required

1,800 Amount in Rs

18,000,000

Building 12000000Total Cost of Area & Building 30,000,000

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Assumptions:10,000 Rs per square feetAbove figure based on assumptions not actual.

Total Capital Expenditure

Description Amount (Rs)Equipment 4,518,000

Furniture & Fixtures 2,874,000Land & Building 30,000,000

Total of Capital Expenditure 37,392,000

Human Resource Budget

Designation No of Employees

Per Employee Salary

Total Salary

Department Heads 4 25,000 100,000Department Managers

4 20,000 80,000

Asst. Manager 1 15,000 15,000Officer 6 15,000 90,000

Admin Staff 4 12,000 48,000Account Manager 3 12,000 36,000

Accountant 2 12,000 24,000Asst. Accountant 2 8,000 16,000Staff Information

Collector1 10,000 10,000

Personal Information

Archive

1 10,000 10,000

Maintenance 5 7,000 35,000Security 10 7,000 70,000

Total 534,000Annual Rate:534,000 x 12 = 6,408,000

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Promotional Budget

Description Per Month Add

Per Add Rate

Amount (Rs)

Cable TV Adds 700 2,000 1,400,000Add in Newspaper 15 40,000 600,000Add in Magazines 6 8,000 48,000

Billboards 4 50,000 200,000Passes 200 20 4,000

Brochures 500 50 25,000T-Shirts 100 300 30,000

Add on Websites 3 100,000 300,000Total 2,607,000

Annual Rate:2,607,000 x 12 = 31,284,000

Other Expenses

Description Amount (Rs)Interest on loan 1,950,000

Depreciation 3,739,200Total 5,689,200

Detail:Interest rate is 13%Depreciation rate is 10%

Total Fixed Expenses

Description Amount (Rs)Capital Expenditure 37,392,000

HRM & Promotional & other Expenditure

12,883,200

Total 50,275,200

Variable Expenses

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Description Amount (Rs)Electricity 960,000

Water 30,000Utilities 80,000Total 1,070,000

Detail:Utilities include Other bills, Internet charges and Miscellaneous expenses.

Capital

Description Amount (Rs)Owner Equity 39,500,000Debt Equity 15,000,000

Total 54,500,000

Sales Income Forecast

Description Daily Monthly AnnuallyIncome from

Games800,000 2,400,000 27,600,000

Income from Cinema

72,000 2,160,000 24,840,000

Total 872,000 4,560,000 52,440,000Working:We have assumed that our club will open on 2 pm and closes at 12 am total 10 hours.Gaming per hour rate is Rs 200 x 10 hrs x 40 consoles x 345 days (excluding holidays)= 27,600,000Movie per ticket rate is Rs 300 x 3 cinema halls x 80 capacity x 345 days (excluding holidays) = 24,840,000

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Liabilities

Description Amount (Rs)Bank Loan 15,000,000

Total 15,000,000

Govt. Taxes

Description Amount (Rs)Income tax 1,000,000Other taxes 597,760

Total 1,597,760

Income Statement

Elation ClubIncome Statement

For the Month Ended December 31, 20XXRevenue 52,440,00

0Operating Expenses:

Salaries 6,408,000Advertisement 31,284,00

0Variable 1,070,000 38,762,00

0Operating Profit 13,678,00

0Other Expenses:

Depreciation @ 10% 3,739,2009,938,800

Interest @ 13% 1,950,000

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Income Before Tax 7,988,800Income Tax @20% 1,597,760

Income after Tax 6,391,040

Balance Sheet

Assets Amount Liabilities AmountLand & Building 30,000,0

00Capital:

- Deprecation 3,000,000

Owner Equity 39,500,000

27,000,000

Debt Equity 15,000,000

Equipment 4,518,000

Net Income 6,391,040

-Deprecation 451,800 Interest on loan 1,950,000

4,066,200

Govt. Taxes 1,597,760

Furniture & Fixture 2,874,000

-Deprecation 287,4002,586,60

0Cash in Hand 786,000Cash at Bank 30,000,0

00

64,438,800

64,438,800

Credits

Prof. Aitzaz Khurshid

For providing us this great opportunity to

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sharpen our skills as Entrepreneurs.

Mohsin Mahmood

Main organizer, Marketing Plan.

Hassan Zia

Main coordinator, Operational Plan.

Umer Saleem

Main help person, Financial Plan.

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