Presentation on theme: "CEO 0033612937804 International Business School, Paris 2014 LinkedIn Profile Tiffany(Miao) Wang CFO (248)707-4143"— Presentation transcript:
CEO International Business School, Paris 2014 LinkedIn Profile Tiffany(Miao) Wang CFO (248) University of Detroit (Mercy) 2013 LinkedIn Profile Ronan(Yi) Zhong CMO (917) New York University 2014 LinkedIn Profile Michael(Yecheng ) Gao COO (816) University of Missouri KC 2014 LinkedIn Profile Flora(Qinglei) Lin Why we build this business? Nowadays, people are under kinds of pressures, life, work, study. They are crazy to find ways to self release. Adventure park and amusement park are popular choices for the group of people, while there are some shortcomings in both parks. We build our aMAZEing RUN park based on maze game, combining with adventure factors and video game or movies plots. It perfectly meets peoples needs who live in NYC and surroundings want to relax and have fun in leisure times.
Start-up Vision & Objective
Snapshot of Business Idea For everything we do, we believe we can make great virtual games into reality and create life long memory of maze adventure experiences for our audience! We make great design, offer great food and provide great service!
Problem statement Huge initial investment, big marketing money needed. Solution Cooperate with mobile game companies and TVs. Reason1 Save money. Inspiration sources are from the games. Their fans would like to try the real person challenge game. Reason2 Accurate marketing. Gamers would be crazy about it. They are one of the main customer of us. Reason3 Cooperate with TVs, YouTube, make it a show. Make it on air, easy to spread, easy to educate customers. Why Invest our early money in Marketing to attract investors or partners. Big input, big output. Painkiller Attend investment conference as more as we can. Build up our network. Never ever let a chance go. Vitamin
How will the customers benefit from your solution? Customers will learn our park directly, and totally attracted by the creative way of entertainment! What is the compelling advantage of your solution? Company will get feedbacks very soon. The effect would be prominent. The tickets sales will dramatically rise in the advertising periods. The flaws is the marketing will not be so accurate (On TV), viewers may not buy it. The ad should made by pros to be more attractive. Are there any intellectual property or regulation issues related to your project? Who owns the intellectual property? We got talent 4 members which are from different areas of China, study all over the world, and working on different majors. Diversity is the greatest advantage!
Identify Business Opportunity Political Government support the expansion of amusement park business due to tourism appeal Local government are more in favor of maze amusement park due to its smaller size and less pollution. Economical The amusement park business has recovered from recession. Americas passion for amusement parks or adventure parks is white- hot these days, driven by increased disposable income. Maze amusement park has become more and more popular for its low cost and time-flexibility. Social Family entertainment that all ages can participate in and enjoy as individuals or as a group has become a social trend. Dramatic growth of the 16 to 35 years old population which enjoy adventure and self challenge. Maze adventure gained awareness due to the big hit of mobile app Temple Run Technological New technologies that amusement parks utilize can help manage crowds, improve child safety and put more and more elements in a limited space. Environmental Unlike the regular amusement park industry which require huge swaths of land as well as large supplies of energy and water, maze amusement park is more environmental-friendly and meet the going green social trends. Legal Legal legislation highly concentrate on personal safety. For maze amusement park, tracking system and staff training can be easier to execute.
$57.53 $59.84$64.72 $67.31 $70 Market structure: Prefect competition No great barriers, monopole of huge amusement park
Amusement Park 35% Famous Spot 35% Bars, Clubs Others Customer preference
Bargaining power of Suppliers (medium) Main suppliers: Equipment makers, entertainment & Game companies -Potential high prices charged on copyright from Video game company and movie makers -Special made gaming equipment increase the manufacturers bargaining power -High amount of merchandising -Affordable switching cost Threat of New Entrants (& the attendant barriers to entry) (medium) -Huge initial investment & marketing campaign expenditures -Costs a lot of money & energy to design game -Disney, Universal studio almost dominate the Market, it builds barriers for new entrants -Customized games could be a double edged sword. Bargaining power of Customers (low) - Buyers are end consumers, their power is low as prices are controlled by theme parks. - Creative or innovational games could attract consumers who doesnt care about prices. Threat of Substitutes (low) - Existing games: Paintball games, laser shooting games - New coming: escape the room, etc. - Other substitutes like zoos, museums which dont match the adventure park experiences. Competitive Rivalry within an Industry (Intense) -Competitors: theme parks, paintball games, laser tag, etc. -Industry leaders hold the main resources, the market, the promotion & supply channel. -Real person games (like paintball) become more crazy and attractive -Huge R & D investment
Strength - Excellent group members, 4 people from different areas in USA, even Europe - Innovational and creative start-up project. - Network advantage. - Diversity. We designed our game challenge in kinds of ways, some idea come from video games, some come from movies, and different traditional cultures. - Flexibility. The adventure game are divided into 5 chapters (levels), each one is special and unique. Weakness - Lack of fund. - Team members are inexperience in real careers. - Due to the high land rental charge, available locations are limited. - Short of hands. - Maybe a long time needed for market acceptance. - Customer range is not so wide but it is not a big deal. Opportunities - Real person games are becoming more and more popular in USA. - Unique and unprecedented experiences. - The economic condition is coming back in USA - People living in NY area are under huge mental and physical pressures. - Realize your hero dreams. - Corporate with kinds of video companies and entertainment companies could speed our program. Also, TVs, Apps, etc. Threats - Risk of park related accidents. - Theme park insurance is very expensive. - Strong competition in relative industry. - Intellectual property is necessary to provide unique themes and experiences. - Imitators are coming soon.
Direct competitors: Maze parks and adventure parks in the New York and surrounding areas are our direct competitors. Indirect competitors: The Amusement parks like Disney land, universal studio, cedar point. Our competitive advantages are obvious. We combine all advantages from maze parks and amusement parks. Firstly, we pioneered the adventure park build on mazes. The whole adventure park is built on the maze map. It is full of adventure and fun. Secondly, keeping constantly updated instead of same games all the time like Disney land. It keeps changing according to the most popular app games and famous movies. Thirdly, the target audiences of maze parks are children while we expand our target audiences to young millennial. Moreover, combing with the design of indoor and outdoor, so it could be still worked during bad weather. Competition Advantages
First, the environment, it includes the universities in the New York and surrounding areas. We will organize the specific project for orientation in Universities. it will be the best place to choose to know about each other. Second, the companies are also our value chain partners. We support staff training for companies. These two kinds of partners guaranteed our customers. We also have the designers for our games, it guaranteed the supply chain.
Control environment – Ethical values, quality of personnel, direction provided by the board and effectiveness of management. Risk assessment – Identification and analysis of risks underlying the achievement of objectives. Control activities – A diverse range of policies and procedures that help to ensure management directives are carried out. Information and communication – Effective processes and systems that identify, capture and report operational, financial and compliance. Monitoring – A process that assesses the adequacy and quality of the internal control systems performance over time.
Maze amusement park overview Marketing Entry strategy -- 4Ps
Business hour: Weekdays 10am~10pm Weekend 8am~10pm Game level setting: 5 levels (chapters) Location: NYC Suburb
aMAZEing Adventure Park
Marketing Entry strategy -- 4Ps
Promotion: NYC and surrounding areas are the key point of our promotion location. Cooperate with local presses and TVs, word of mouth could be the effective ways to elevate our program. Organize public relations campaign and branding events with student union of universities in NYC and surrounding areas. (Spring & Fall could be the best time to official running) Organize staff training programs with companies. Advertising in smart phone app. Network Marketing Post posters and slogans in NY subway station. Setting baskets with our brochures in subway station, hotels and schools. Advertising in TV Player Rewards Marketing Entry strategy -- 4Ps
Technique Construction Equipment (Change/update) Game`s design Marketing Advertising/Promotion Site Internet Market research HR Salary Train Administration(finance) Function Liquid Start-up Expenses to Fund$114,786 Start-up Assets to Fund$2,638,964 (Include: direct construction cost) $75,000 Total Funding Required$2,753,750 Fund Requirements (Compare with Model of Wasatch Family Fun Centre) Construction: 5 acre without subventions (20,000 )
Initial investment StartYear Investment(2,753,750) Average revenue/person $50 Nb per/day Nb per/year360d/year28,80036,00043,200 54,000 Total revenue 1,440,0001,800,0002,160,000 2,700,000 Total Operating Expenses 400,000450,000700,000750,000800,000 Profit before taxes and intersts 1,040,0001,350,0001,460,0001,410,0001,900,000 Taxes and Interests 33%+10%447,200580,500627,800606,300817,000 Net profit 592,800769,500832,200803,7001,083,000 Discount rate10.00% Combianation Valuation (2,753,750)592,800769,500832,200803,7001,083,000 NPV267,749 Cumulative CF(2,753,750)(2,160,950)(1,391,450)(559,250)244,4501,327,450 Financial Analysis (5 years period)
Profit and Loss Year 1Year 2Year 3Year4Year 5 Sales1,440,0001,800,0002,160,000 2,700,000 Direct Cost of Sales500,000600, ,0001,000,000 Operations Payroll150,000200,000250, ,000 Total Cost of Sales650,000800,000850,000950,0001,450,000 Sales and Marketing Payroll 25,00030,000 35,000 Advertising/Promoti on 9,000 15,000 Total Sales and Marketing Expenses 34,00039,00045,000 50,000 General and Administrative Payroll 80,00090,000150, ,000
Utilities7,000 11,00012,000 Insurance7,000 12,000 13,000 Total General and Administrative Expenses 94,000104,000173,000174,000225,000 Other Payroll35,00040,00080,000 90,000 Housekeeping Supplies6,000 10,000 11,000 Facility Maintenance9,000 15,000 16,000 Facility Update6,000 12,000 13,000 Total Other Expenses56,00061,000117, ,000 Total Operating Expenses834,0001,004,0001,185,0001,286,0001,855,000 EBITDA306,000976,000975,000874,000845,000 Taxes and Interests150,000500, ,000420,000 Net Profit156,000476,000475,000474,000425,000 Continue….
Cash Flow Year 1Year 2Year 3Year 4Year 5 Cash Sales1,440,0001,800,0002,160,000 2,700,000 Subtotal Cash from Operations 1,440,0001,800,0002,160,000 2,700,000 New Long-term Liabilities 2,000,000 New Investment Received 400,000 Subtotal Cash Received 1,440,0001,8000,0004,560,0002,160,0002,700,000 Cash Spending350, ,000750,000
Bill Payments1,000,000 1,500,000 2,000,000 Subtotal Spent on Operations 1,350,000 2,200,00002,250,0002,750,000 Principal Repayment of Current 50,00060,00080,000100,00030,000 Long-term Liabilities Principal 30,000 75,00080,00090,000 Subtotal Cash Spent1,430, ,0002,355,0002,430,0002,870,000 Net Cash Flow10,000360,0002,205,000(270,000)(170,000) Cash Balance10,000370,0002,575,0002,305,0002,135,000 Continue….
Balance Sheet Year 1Year 2Year 3Year 4Year 5 Cash10,000370,0002,575,0002,305,0002,135,000 Total Current Assets10,000370,0002,575,0002,305,0002,135,000 Long-term Assets2,600,000 Total Long-term Assets2,600,000 Total Assets2,610,0002,970,0005,175,0004,905,0004,735,000 Accounts Payable35,00090,000130,000140,000150,000 Current Borrowing380,000300,000250,000130,000100,000 Subtotal Current Liabilities 415,000390,000380,000270,000250,000 Long-term Liabilities30,000 75,00080,00090,000 Total Liabilities445,000420,000455,000350,000340,000 Paid-in Capital450,000500,000800,000850,000 Retained Earnings(100,000)(130,000)250,000800,0001,400,000 Earnings156,000476,000475,000474,000425,000 Total Capital506,000846,0001,525,0002,124,0002,675,000 Total Liabilities and Capital 951,0001,266,0001,980,0002,474,0003,015,000 Net Worth506,000846,0001,525,0002,124,0002,675,000