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[Document Title]
[Author Name]
Table of Contents
EXECUTIVE SUMMARY....................................................................................5
1.
2.
INTRODUCTION.......................................................................................6
1.1.
1.2.
1.3.
MARKET OVERVIEW................................................................................12
2.1.
2.2.
2.3.
2.4.
2.5.
2.6.
2.7.
3.
4.
5.
6.
2.8.
2.9.
2.10.
2.11.
TARGET MARKETS..................................................................................18
3.1.
3.2.
3.3.
4.2.
4.3.
4.4.
COMPANY DESCRIPTION.........................................................................24
5.1.
5.2.
5.3.
5.4.
5.5.
5.6.
5.7.
MARKETING ACTIVITIES.........................................................................29
3
6.1.
6.2.
6.3.
7.
7.2.
7.3.
7.4.
8.
OPERATIONS.........................................................................................34
8.1.
8.2.
9.
FINANCIAL ANALYSIS.............................................................................35
9.1.
9.2.
9.3.
9.4.
10.
10.1.
Recommendations .......................................................................40
REFERENCES...............................................................................................42
EXECUTIVE SUMMARY
Dubai is one of the most popular emirates of all emirates in UAE, and people
living in the city, or people that visit the city, are highly interested and
5
Chapter: 1Introduction
1.1.
The purpose of the business plan is to initiate theme parties at home initially
targeting the Dubai city in UAE, and gradually expanding across all the
emirates in UAE. With more and more number of individuals, families, office
7
people and other groups being interested in parties for different occasions,
with their main concern being the costs that they need to afford as event
management companies arrange for different menus and venues, the scope
of the business is significantly high, which will reduce the costs of customers
and hence attract them towards the offer, particularly since parties are a
great attraction for people living in Dubai.
1.2.
The market targeted for this business is initially Dubai, and once the
business gets established in Dubai, the focus will be on expansion of the
business across the UAE. Considering both Dubai and the whole of UAE, one
beneficial factor is that the market is highly welcoming towards new
businesses in the country. Private businesses are significantly encouraged by
8
the UAE with their support and facilities that they provide and policies that
are highly business-friendly. The government essentially tries to encourage
the entrepreneurial skills among the Emiratis, which can develop into new
businesses for the nation. Hence advices and financial aids are also suitably
offered to the interested individuals or groups (Business Activities 2014).
The Dubai Emirate is similarly welcoming towards new businesses in the city.
Owing to the facilities and benefits offered by the emirate, new businesses
are highly interested to target the market. Considering the geography and
culture of the emirate, Dubai proves to be an ideal place for attracting
consumers towards a new business. With increasing population in the region,
the city can also be said to be rapidly growing in terms of the changing and
growing demands and expectations of customers, which new businesses can
cater to. The process for setting up a business in the city is not a difficult
endeavor. Also, other market benefits that the emirate offers include the
minimal
foreign
ownership
restrictions,
first-class
communication
and
11
The figure above presents the stock market conditions in Dubai, and it
clearly reflects on the high level of business activities that take place in the
emirate, which is a positive benefit for the new business being targeted in
Dubai (Dubai Financial Market PJSC 2014). Considering this situation of the
Dubai market, and also the welcoming attitude of the UAE market, the
establishment of the new business can be expected to have significant
opportunities, especially considering the fact that theme parties at home is a
12
new concept which the company is trying to introduce in Dubai and in UAE.
It can be said that the markets in Dubai have the facilities and opportunities
for a new business such as the one being planned based on event
management. Also, considering the interests of people in events and
celebrations
of
occasions,
the
opportunities
can
be
considered
as
To understand
whether
interested
customers
would
be
further
15
2. MARKET OVERVIEW
2.1.
management companies, namely Plan Ahead Events (PAE), and others that
are performing in the market, offering several services that cover business,
sports, and activities of entertainment to serve the customers achieving high
level of satisfaction (BI-ME Staff 2013).
EVENT
S
REACH
LIVE INTERACTION
Right
Communication
WITH
Live
Audience
CREATES
Desired
Impact
In the words of Shonkwiler, the President of PAE, The strong growth of the
event management industry in the region can be attributed to the UAEs
position as an events and exhibitions hub not only for the Middle East but for
the Africa region. The recovery of the real estate industry and the steady
growth of the ICT, tourism and hospitality industries have played a key role
in fueling the events management industry in the UAE, in addition to the
growing trend among private and public enterprises to host occasion-based
events for their internal and external stakeholders (BI-ME Staff 2013).
Hence the performance of the industry can be said to be significantly high.
17
2.2.
The history of events and events management can be dated back to as early
as the 41 BCE, when the meetings of monarchs required great planning, and
which used to be considered as events (Event Planning 2014). Since then
and till the present times, significant development has taken place in the
industry and across the globe, with various occasions and various events
being in need for effective planning and management. Over the years
several popular event management companies have been performing in the
Dubai city. To name some of them include Sky High Events, Show
Entertainment & Art Production, Evolution Events, and others. In the recent
times, home and office parties and occasions are in greater demand for
event management companies and companies such as Matrix Party Services,
and others are focused on meeting the expectations of the customers in this
regard.
2.3.
The value of the industry crossing US$45 million reflects a significantly high
size and performance of the events management industry in Dubai.
Companies such as PAE are expecting to achieve 300 percent growth in a
time period of three years (BI-ME Staff 2013). The events industry across
UAE has remained the busiest of all businesses in the recent times with
companies achieving significant demands and growth in the market.
Exhibitions, events, and occasions are increasing the interests of individuals
and groups towards event management companies, much more than before
(UAE Events Industry Moves Into Top Gear n.d.).
2.4.
While the events industry in the Middle East has faced significant challenges
owing to economic slowdowns and hence decreases in demands among the
customers, the situation has however turned out to be positive over the
18
recent years with rise in the demands for events and events planning and
management. With companies reducing their budgets and more cautiously
deciding on their spending due to the economic slowdowns, there has been
significant reduction in demands. As far as the present situation is
concerned, the economic condition has been recovered and the competition
in the market is moderate to high now, with customers being attracted to
different events management companies focusing on the added value that
they obtain from these companies. Now companies are planning their
budgets and spending more efficiently trying to meet the demands and
expectations of the customers, which in turn is attracting the customers
more than before (An events evolution 2010).
2.5.
With the high level of growth being achieved by the Dubai events industry in
the 2013 and with the increasing number of companies focusing on their
efforts to create a position in the events industry in the city, and across the
UAE, the trend reflects on a high growth and scope of events management
companies in the market (Dubai events industry powers on 2013). For the
next five to ten years it can be said that the competition in the market will
be significantly high with higher number of events management companies
coming up with their offers and services.
2.6.
market.
Some
of
the
major
players
include
International
The most significant barrier to enter the Dubai market with events
management services is the huge competition that exists in the market.
Although the current business plan is different from the existing companies,
with focus on arranging for theme parties at homes, which is something new
for the customers, yet the industry being the events industry, the entry will
be tough due to competition. It can be said that it will take some time for
the new business to reach the customers with their offers.
Also, another factor is the investment. It can be realized that the
competition will be high. Hence only starting up the business in the Dubai
city will not be enough. Significant amount of funds needs to be invested for
the purpose of advertising and promotion such that the customers may be
aware of the new business and the concept of theme parties as well, which
will be something new to them when the new business will offer to arrange
the same in their homes. Also, finding a suitable location for the start up and
initiation for the business might encounter significant challenges and hence
prove to be a major barrier for entry as well.
2.8.
it
is likely that
the
business
would
make
position in
the minds of
the
customers
with their
offers
of
lower
costs
and
higher
The product life cycle will have the following four stages:
21
Figure 3: Stages of the Product Life Cycle (Product Life Cycle Stages
2014).
The industry life cycle will have the following stages (Industry Life Cycle
2014):
2.10.
For the new business the position in product life cycle will be in the
introduction stage. Thus the business plan has to consider all aspects of
business taking into concern the business environment that the business is
22
planning to enter and the high level of competition that it will have to
encounter. Hence market research needs to be done with significant focus on
determining the most effective ways to enter the market and also market
the services of the company to the target market, which is being planned.
Also, initial stage in the product life cycle means the business lacks
experience, which can prove to be highly challenging for the new business.
2.11.
The industry can be said to be in the cost phase where the industry is
achieving economies of scale creating high competition and barriers for entry
of new companies. Hence this will affect the business plan in the sense that
the business will now be required to focus more on overcoming the
competition and creating its position in the new market, reflecting significant
innovation, which would create the attractions for the market.
3. TARGET MARKETS
3.1.
The target market for the new business is mainly those individuals and
families in Dubai that are interested in parties for celebration of different
occasions but are faced with difficulties owing to the high costs of venues
that event organizers arrange for. Dubai represents a cosmopolitan city with
a mix of different cultures and people here belong to different lifestyles,
having different tastes and preferences. Being one of the most famous
tourist destinations as well, the lists of visitors over the year are varied, and
parties and celebrations are parts of their lives as well. There are both
traditional festivals such as Ramadan and National Day, as well as
contemporary styles of celebration which include parties on different
occasions,
where
most
of
them
are
private
in
nature
(Dubai
of the new business is the interested people in parties and events, which can
be expected to create an attraction towards the new concept of theme
parties at home.
3.2.
Events and parties are on high demands in Dubai, and in UAE. This is the
reason that several events management companies are continuously focused
on meeting the demands of the customers. Events include various occasions
such as management of corporate events, business functions, corporate
parties, festivals, parties, conferences and business celebrations. In order to
arrange for these events or parties, individuals, families, offices, and groups
are in need for professionals whom they prefer to pay for the services they
would provide by arranging for the events or parties (Event Management
Company, Dubai, UAE 2014).
Figure 4:
Events/Parties
in Dubai
(Event
Management
Company,
Dubai, UAE
2014).
The new business will however mainly target the private parties that are
demanded by families and individuals for occasions such as birthdays,
24
opportunity
The two most important factors that initiated the idea for the new business
include:
The high costs of the events or parties in Dubai if professionals are
hired for arrangement of the parties.
The lack of convenience of the venues since professionals or event
management companies would arrange for the events or parties at
different venues with menus, which also increased the costs for the
customers.
These are two main reasons for which individuals and families in Dubai are
faced with difficulties when it comes to plan and enjoy for particular private
occasions. This is where theme parties at home are being suggested by the
new business, which would include arranging for the parties at the
residences or preferred locations of the customers, hence reducing the costs
significantly. With parties arranged based on themes, the occasions for the
families and
individuals
25
trying to meet
the
Environmental Scan
ECONOMIC
Political
SOCIAL
TECHNOLOGICAL
environment
in Dubai
There is a network
are involves
80 of seven industrial
from percent
structure
of tourism,
real expatriates.
government
is estate,
and
three
70
and services.
Emirati levels.
Records
till
2009
comprises
represents
constitutional
billion.
more
are
direct taxes
no
free
having
of international
distinction,
government
There
and
of successful
males.
reflect
framework.
specialized
Dubais
monarchy
foreign
percent
highly
is
than
marriage.
for
one
two
world
class
seaports,
major
international
airport,
network
modern
of
high
with
no or
lesser
restrictions.
Customs
duties
and
tourists.
and
are as low as 4
percent
networks,
utilities.
having
26
business
followed
clear
rules.
is
with
ownership
There
are
controls
no
on
foreign
exchange,
any
trade barriers or
quotas.
Import
are
duties
competitive
in nature.
4.2.
From the political, economic, social, and technological factors identified and
mentioned in the previous section, it can be said that the Dubai market is
highly welcoming for new businesses and the macro environment of the
Dubai market has been strengthening over time as well. One of the major
factors related to the government of Dubai is that their debt restructuring
would no longer be an issue for businesses with no entities expected to
default any further. Performance of the market has also been supported and
boosted by the combinations of events and festivals such as Dubai Shopping
Festival, Russian and Chinese New Years celebrations, and Saudi school
holidays. The leisure market is also doing well for Dubai (John 2012). All
these factors have a positive outlook for the new event management
business that is being proposed and planned as the market seems to be
highly welcoming of events and also individuals and families that would look
for parties based on themes at their preferred locations.
27
4.3.
Types of competition
Over the years Dubai has emerged as a high class environment for business.
Dubai now provides a logical platform for businesses and investors proving it
to be huge market for the global economy. Levels of crime being low and the
country being politically stable, more and more number of businesses are
feeling attracted to the Dubai market for doing business, thereby increasing
the level of competition as well. Foreign direct investment (FDI) has been
more attracted to the city owing to its open economic policy, minimum
control of the government, and regulation of the private sector. The provision
of world class infrastructure by the city attracts more of international
businesses. Moreover competitions are raised from the availability of cost
advantages which are obtained due to absence of foreign exchange controls,
trade barriers or quotas. The network of foreign trade is also extensive in
nature, resulting in higher attraction of businesses, and hence increasing the
competition in the market (Dubai for Business 2013).
4.4.
and
the
significant
facilities
related
to
business
policies,
28
5. COMPANY DESCRIPTION
5.1.
The new business being planned is based on sole proprietorship. The owner
will alone own the company and will be solely responsible for the assets and
liabilities of the business. It will be the responsibility of the owner to arrange
for the necessary license and permits in order to enter and perform in the
Dubai market. Regulations for the particular industry will have to be
followed. Since the business will be sole proprietorship, the control of the
business will be completely in the hands of the owner and the business will
be easy and inexpensive to form (Sole Proprietorship n.d.). For the growth of
the financial sector, Dubai has introduced certain laws for its businesses
which will be necessary to consider. These include Companies Law, Contract
Law, Arbitration Law, Insolvency Law, Data Protection Law, Collective
Investment Law, Investment Trust Law, Single Family Office, Special Purpose
Company
Preferential
Regulations,
Creditor
Payment
Regulations,
Systems
and
Settlement
Strata
Title
Law
Finality
Law,
(Independent
29
To prepare an effective team of management that will look after all the
managerial processes of the business and operations.
5.3.
The distinctive core competencies of the company will include the following:
Core Competency 1 The ability to target a new market with a new
concept, which has been based on the need of customers in the
market.
Core Competency 2 Highly qualified professionals will be part of the
company who can effectively determine the market needs and
accordingly plan for the services being offered.
Core Competency 3 The advanced technologies will be made used for
arrangement of the parties hence making them interesting and
attractive for the customers.
Core Competency 4 Unique marketing strategies that will target
existing competition in the market and gain competitive advantages.
30
5.4.
Figure 5:
Sole
proprietorship for the business (Collins 2014).
5.5.
The board of directors for the company will be formed including the owner
and other highly qualified professionals that essentially possess the skills and
knowledge which is required for the particular business. Thus the team will
include those that have experience in the field of event management, and
for the best arrangement of parties, especially considering theme parties. A
total of 6-7 professionals will be part of the board that will meet every time
and decide on all major activities and processes of the business. Two factors
that will be focused while deciding on the board include their experience and
their diversity. Diverse individuals tend to contribute effectively through
varied ideas, which can prove to be beneficial for the business. Most
importantly, the members should realize the purpose and objectives of the
business and perform accordingly.
5.6.
For the initial start of the business, around 20 staff or employees will be
needed who will be working in different departments under specific
managers. The structure that is being planned can be represented as
follows:
Sales and
Marketing
Manager
Administration
Services
Manager
Human
Resources
Manager
Financial
Manager
Sales and
Marketing
Staff
Admin and
Technical
Staff
Services
32
Staff
Human
Resources
Staff
Staff for
Managing
Finances
Key Managers
33
6. MARKETING ACTIVITIES
6.1.
Figure 7:
Overall
Marketing
Strategy for
the New
Business
The
overall
strategy
marketing
of
the
business
involves
understanding the exact needs and expectations of the customers in terms
of their party needs, theme based parties, and lower costs. Based on such
understanding and market analysis, including the existing competition, the
marketing mix has been developed defining the price, product, promotion,
and place for the new business.
34
6.2.
The marketing mix for the new business has been planned and is being
proposed as follows:
Product The product that the new business is offering is a new
35
6.3.
The strengths and weaknesses of the marketing strategy and mix being
planned for the new business can be tabulated as follows:
Strengths
Weaknesses
the
the
Lower
exact
needs
pricing
of
strategy
will
be
barriers
pursuing
for
the
effectively
marketing
number of customers.
Product description
The offering of the new business is basically a service that will arrange for
theme based parties for its customers. The focus will be on offering
customers with arrangement of theme parties in homes where the
decorations of the parties would depend on particular occasions (birthdays,
marriage anniversaries, retirement, and engagement celebrations). For
example, for celebration of birthday of a girl the themes could include Barbie
theme, Dolls theme, or Pink theme. For birthday of a boy, the themes can
include Cartoon themes, Blue theme, Cars theme, and others. For
celebration of engagement parties, themes can be based on flowers, posters
of couples, with colors of red and white theme. Party brochures will be
prepared that can give the customers better ideas about how the theme
36
parties would look like offered by the new business. The idea is to make it
cheaper and convenient for the customers to enjoy their occasional parties.
7.2.
The product life cycle for the new business can be represented through the
following figure:
Figure 8:
Product Life
Cycle of the
New Business
(PLC The Product Life Cycle n.d.).
These will be the four stages of the product life cycle for the new business:
Stage 1: Introduction and launch of the business/service
This is the stage where the new business will be launched in the new
market, which is Dubai. This will include researching the market based on
which business and marketing decisions would be finalized. During this
phase, the costs for the company will be high and the profits will be low till
the time the company is positioned in the minds of the customers.
37
Intellectual property (IP) rights arise when there is a new invention or ideas
being presented and implemented. Hence protecting the new ideas is a
necessity for a new business, such as the one being discussed in this
business plan. As for the new business is concerned, the idea of theme
parties at home is a new idea/concept being suggested and hence needs to
be protected. Copyright protection can rightly be applied which is free and
automatic as well. With copyright protection the business will receive a legal
protection for the original ideas being expressed through the business and
its owner. For copyrights there is no need for registering for the ownership
for assertion or receiving protection. The original ideas and works can both
38
be protected with copyrights for the business (Protect your business name or
idea 2014).
7.4.
The business offers a service of arranging for theme parties at home. For
effective delivery of the services, the SAS service delivery process can be
considered as effective. It involves a comprehensive set of tried and tested
procedures that focuses on maintaining the quality, integrity, availability, and
agility of the application, network infrastructure, and services. Designing of
the network is the initial stage focused by SAS service delivery process. The
processes will be considered based on the particular needs of the business.
The components of the network would be arranged and configured by the
team of SAS. Also, the monitoring and management of the network will be
obtained by the service desk of SAS (Service Delivery Process 2014).
8.2.
Supply chain
The supply chain for the business can be represented through the following
figure:
39
Figure 9:
Supply
Chain for the Business
For this business, the raw materials would include all those materials that
will be necessary for arranging for the theme parties at homes. Hence
suppliers will be required for providing those materials. Manufacturing might
be required for particular decoration materials that will be used for the
parties. Distribution would include carrying all necessary materials to the
customers site for arrangement of the parties. Hence these are the main
factors that will be involved in the supply chain of the business.
9. FINANCIAL ANALYSIS
9.1.
Funds needed
Since the business is targeted at a small scale for the initial establishment,
funds of around AED 30,000 are expected to be invested. Of this amount,
around 30 percent will be invested by the owner, while the rest of the
amount will be borrowed from the bank. The funds are being planned
considering the fact that the parties will be arranged mostly at the
residences of the customers, or their offices, and hence there will not be
40
Balance sheets
The projected balance sheet for the business has been planned as follows:
Balance sheet for the first year of the business
Assets
Amount (in
Liabilities
AED)
Cash
Accounts
Amount (in
AED)
receivable
Inventory
0 Total liabilities
Land
Building
0 Owners equity
Equipment
Other assets
Total assets
10,000 Total
liabilities
and equity
10,000
0
0
10,000
10,000
Assets
Amount (in
Liabilities
Amount (in
AED)
AED)
Cash
Accounts
2,500
500
receivable
Inventory
0 Total liabilities
Land
Building
0 Owners equity
Equipment
500
Other assets
10,000
0 Owner draws
Retained earnings
1,500
Total equity
Total assets
12,000 Total
11,500
liabilities
12,000
and equity
9.3.
Year 1 (Amount in
Year 2 (Amount in
AED)
AED)
Beginning Cash
2000
13,800
Cash sales
2,000
Accounts receivable
2,500
20,000
Balance
Cash In:
collections
New loans
42
New investment
8000
3000
100
200
Inventory on hand
200
Principal payments
100
200
13,800
14,700
Cash Out:
Equipment Purchased
Expenses paid
9.4.
Capital requirements
The initial capital requirements for the business would include the capital
that will be necessary for expenses for launching the company in the new
market. In order to obtain the exact needs, the marketing plan for the
business will be strategically developed. The products and services of the
business have been described and strategies would include the possible
means to establish the business in the new market, and hence requirements
of capital will be essential for purchase of land, building of the office, for
advertising and promotion, and for delivering the services being offered.
Costs will also be incurred for the development of the processes and services
that will rightly be able to meet the demands and expectations of the
customers. Funds around AED 5,000 will be spent on advertising and
promotion of the business as well.
10.
The business plan has been focused on developing and presenting a new
concept of theme based parties at home, focused to be initially targeted in
the Dubai market, and gradually spreading across the UAE. Now, considering
the current situation and macro environment of the Dubai market, over
43
parties
which
currently
are
organized
by
events
44
The most essential factor that makes me business suitable and feasible for
the Dubai market is the existing trend in the sector. The rising population of
the city and the changing preferences of customers are creating further
demands for events organizers. The new business can be said to be rightly
targeting the target market with an absolutely new idea that is not only
attractive and cheaper for people to afford, but also highly convenient and
effective for families and friends who want to party together. And, Dubai is a
market where newness is welcome by all. More importantly, the current
offerings of the events management companies are unable to satisfy the
needs of the customers, and hence the offering of the new business can be
concluded to be feasible and should be implemented with due effort.
10.1.
Recommendations
The marketing of the new business is one of the most essential factors
for the establishment of the business and spreading about it among
the
customers.
Unless
the
marketing
strategies
are
effectively
implemented, chances are that the new market would not be well
aware of the company or its services. Also, people need to know the
uniqueness of the new business in order to get attracted to it. Hence it
is recommended that particular focus is given on the marketing
management and team selection, which would be responsible for the
marketing decisions and activities for the business.
45
competitors
as
well.
Hence
continuous
innovations
and
It
is
also
recommended
to
encourage
the
human
resources
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US$45
BI-ME. [Online].
Available at:
Activities
(2014)
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[Online].
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at:
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