Business Plan for Early Childhood Development

Business Plan of Early Childhood Development Center in Gilgit Balistan Glowing Pearl Education Center (GPEC) Prepared By: Muniba Islam (Registration No. 55093) Najumus Sehar (Registration No. 55226) Kanwal Gill (Registration No. 54468) Contents AKNOWLEGMENT3 EXECUTIVE SUMMARY4 INTERNAL RESOURCE ANALYSIS5 ?Resources5 ?Capabilities7 EXTERNAL ENVIRONMENT ANALYSIS8 1. 1. GENERAL ENVIRONMENT ANALYSIS8 a. Demographics8 b. Economic Segment9 c. Socio Culture Segment10 d. Environmental Segment18 1. 2. INDUSTRY ENVIRONMENT ANALYSIS19 . 3. C OMPETITOR E NVIRONMENT A NALYSIS28 AKNOWLEGMENT Firstly we would thank Allah for giving us the opportunity and the resources to be able to do something productive with our lives. Without His blessings we would not have been able to come as far as we have. Then our sincere thanks to SIR ADNAN ANWAR helping us throughout this report. His guidelines have been very useful for us in preparing this report. This report would not have been possible without his coop eration and continuous direction.I would like to express my gratitude to my facilitator SIR ADNAN ANWAR whose continuous encouragement and support to solve the case. This report has enabled us to apply all that we studied in class and gave us the chance to enhance our knowledge. EXECUTIVE SUMMARY This project involves establishing a Montessori school in big cities of GILGAT BALISTAN, starting classes from early childhood development to Class I. The target market of this school is children, 0 – 6 years of age, belonging to the middle income group and also target working woman.The school will provide quality education starting at the primary level charging an affordable fee. The school will practice advanced educational procedures – teaching an extensive curriculum and using modern teaching methodology in sync with international standards. Qualified and experienced faculty will be hired. The school will have sophisticated infrastructural facilities, spacious classrooms, and wide-ranging learning material from books to toys for a good educational experience.Schools with high reputation have a stringent admission selection process, for which, Montessori schools provide the necessary training. This has given rise to high demand for Montessori school systems that can prepare children for admission to reputable Primary schools. With the growing population and a limited number of schools, establishment of elementary schools has become a requirement for necessary educational training starting at an early age. The total project cost for setting up this school is estimated at Rs. illion out of which the Capital Cost is estimated at Rs. 2. 0 million. The overall proposed capacity of the school is 300 students. Each class level from Early Childhood development (ECD) – Class I has two to four sections. The maximum number of enrollments per class is limited to 20 students from ECD till KG II and 30 students for class I. The proposed building will be acq uired by own, covering an approximately area of building is 500 SQM to accommodate the proposed student strength. INTERNAL RESOURCE ANALYSIS * Resources Tangible Resources|Resource| Description| Source| | LAND| 500 Square Yard| OWN| BUILDING | 10 Bed room house| OWN| INITIAL WORKING CAPITAL| Rs. 2. 0 Million| SAVING| IT- EQUIPMENT| 5 LAPTOPS, Audio & Music accessories| OWN| ECD REQUIRED MATERIAL| Chairs, tables, book storage, carpets, cribs, Block play accessories, Strollers and other ECD required materials| OWN| Intangible Resources| Resource| Description| | HUMAN CAPITAL RESOURCE| * Expertise in early childhood development and Montessori directors (best knowledge in children psychology). Expertise of different area like MBA – Education Leadership, MBA HRM, MBA-Marketing * Knowledge of local business environments (specially small and medium business)| INNOVATION RESOURCE| * Innovative ideas to analyze business requirements with specialized software tools * Variety of ideas t o develop complex business software * Innovative ideas to educational products| REPUTATIONAL RESOURCE| Reputation for exceptional customer/ parents * Having good reputation with educational services due to affordable cost.Reputation with universities * Good reputation with educational institutes and teachers training and management institutes for competent young graduates resources for cheap source of input Reputation with universities * Good reputation in educational industry| TRAINING RESOURCE| * Expertise in child growth and development * Skill in cognitive development * Knowledge of health safety and nutrition * Personal management| * Capabilities Functional Area| Resources| Capabilities| |PROJECT FEASIBILITY| Montessori directors and educational professional / ECD required materials / Computer equipment and building| Business plan for early childhood development center and its impact on into children development center’s profitability| REQUIRED EDUCATIONAL STAFF | Montes sori directors and educational professional / Innovative resources/ ECD required materials / Computer equipment’s| Art of translating business requirements into children development center for maximum customer/ parents satisfaction| MARKETING| Marketers| Promoting and marketing children development center and also promotes the teacher training program | TEACHER TRAINING PROGRAM| Training professionals| * Expertise in child growth and development * Skill in cognitive development * Knowledge of health safety and nutrition * Personal management * Financial management * Excellent Relationship with parents and children| EXTERNAL ENVIRONMENT ANALYSIS 2. 1. GENERAL ENVIRONMENT ANALYSIS a. Demographics Population by Age Groups ; Pakistan Projection (000s)| AGE GROUP 2005 2010 2015 2020 2025 2030 | TOTAL M+F 155,772 173,383 192,262 211,397 229,377 246,272| MALES 0? 4 9,562 11,886 12,429 12,711 12,350 12,062| 5? 9 10,047 9,287 11,631 12,205 12,513 12,180| 10? 4 10,130 9,936 9,210 11,55 4 12,133 12,446| 15? 19 9,897 10,047 9,878 9,161 11,503 12,084| 20? 24 7,885 9,767 9,958 9,801 9,089 11,428| 25? 29 6,240 7,729 9,655 9,859 9,706 9,001| 30? 34 5,077 6,099 7,627 9,555 9,763 9,617| 35? 39 4,460 4,957 6,008 7,536 ,459 9,673| 40? 44 4,042 4,349 4,869 5,919 7,440 9,354| 45? 49 3,465 3,926 4,249 4,770 5,812 7,320| 50? 54 2,796 3,331 3,795 4,120 4,637 5,664| 55? 59 2,035 2,633 3,155 3,609 3,932 4,440| 60? 64 1,543 1,854 2,416 2,911 3,346 3,662| 65? 9 1,199 1,341 1,625 2,133 2,587 2,992| 70? 74 841 973 1,100 1,346 1,782 2,179| 75+ 921 1,077 1,271 1,482 1,796 2,315| TOTAL 80,140 89,190 98,874 108,670 117,849 126,417| Source: World Bank's World Development Indicators (WDI) database| * Age structure * 0-14 years:  35. 4% (male 34,093,853/female 32,278,462) * 6. 5% population lies in the age group of 0-5yrs * 15-64 years:  60. % (male 58,401,016/female 54,671,873)   * 65 years and over:  4. 2% (male 3,739,647/female 4,157,870) Interpretation: * 60% of population falls under age of 35 means large market of young people and approx. 36% teen-ager have niche market for childhood development center. * Males and females constitutes around 51%, 49 % of the population respectively. * Population is migration from rural areas to urban to seek better economic opportunities. * Population growth rate is 1. 57% per year. b. Economic Segment Interpretations: * Inflation is the major factor of weak economic condition of Pakistan * Due to high discount rate local investment has been educed to around 50% * Government borrowing from private sector has created the liquidity crunch in the financial sector * Employment status shows marginal changes i. e. decrease in the comparative profiles of employees and self-employed workers while increase in the case of employers. * Due to week investment in large sector SME sector is growing at rapid pace * GDP growth at around 2. 4 % due to devastating flood c. Socio Culture Segment Interpretations: * Pakistan is the 10th large st country in the world according to the size of the labor force * In 200809, the estimated labor force grew by 3. % * The growth in female labor force was greater than male labor force and consequently the increase in female employment was greater * The increase in self-employed persons as well as unpaid family workers indicates that activities at the household level are increasing * Population is migration from rural areas to urban to seek better economic opportunities * Pakistan is the most urbanized nation in South Asia making up 36% of its population, (2008) Urbanization rate is 3% (2005? 10). * Urban population in Pakistan will constitute 50% of the total. The rate of urbanization in Pakistan will continue to increases due to the past high growth rates. * More than 50% of urban population (2005) lived in eight urban areas: Karachi, Lahore, Faisalabad, Rawalpindi, Multan, Hyderabad, Gujranwala and Peshawar. Interpretations: * 2008? 9, the estimated labor force grew by 3. 7%. * The growth in female labor force was greater than male labor force and consequently the increase in female employment was greater Population of Major Cities of Pakistan| CITY| 1981| 1998| CAGR (%)| 2010| | | | | | | KARACHI| 9,339,023| 5,208,132| 3. 49| 13,386,730| | LAHORE| 5,143,495| 2,952,689| 3. 32| 7,214,954| | FAISALABAD| 2,008,861| 1,104,209| 3. 58| 2, 912,269| | RAWALPINDI| 1,409,768| 794,834| 3. 43| 2,013,876| | MULTAN| 1,197,384| 732,070| 2. 93| 1,610,180| | HYDERABAD| 1,166,894| 751,529| 2. 62| 1,521,231| | GUJRANWALA| 1,132,509| 600,993| 3. 79| 1,676,357| | PESHAWAR| 982,816| 566,248| 3. 29| 1,386,529| |QUETTA| 565,137| 285,719| 4. 09| 871,643| | ISLAMABAD| 529,180| 204,364| 5. 7| 972,669| Interpretations: * In 1950, only 29. 8 % of people lived in urban areas whereas by 2020, an estimated 57% will live in c cities. * Karachi city’s population is growing at about 5% per year including an estimated 45,000 migrant workers coming to the city every month. * Urban expa nsion can be the key to continuing economic success * It will unfold opportunities for investment in many new markets for example, infrastructure, transportation, healthcare, education and character building. Table: Civilian Labor Force, Employed and Unemployed for Pakistan (in millions)| | 03-04| 05-06| 06-07| 07-08| 08-09| | Labor Force | 45. 5| 50. 05| 50. 33| 51. 78| 53. 72| | Employed | 42| 46. 95| 47. 65| 49. 09| 50. 79| | Unemployed | 3. 5| 3. 1| 2. 68| 2. 69| 2. 93| | Source: Various issues of Labor Force Survey Federal Bureau of Statistics| | Interpretations: * Unemployment rate is higher as compared to the last statistics. * The change is due to female than male and urban than rural unemployment rates. Interpretations: * Employment comprises all persons ten years of age and above who worked at least one hour during the reference period and were either â€Å"paid employed† or †self-employed†. The labour force is growing and the growth in FY09 is greater t han that in FY 08. Table : Employment Status by Sex (%) | 2007? 08| 2008? 09| | Total Male Female| Total Male Female| Employers| 0. 9| 1. 2| NA| 1. 2| 1. 5| 0. 1| Self employed| 34. 2| 39. 6| 12. 8| 33. 3| 38. 7| 13. 1| Unpaid family Helpers | 28. 9| 19. 7| 65. 0| 29. 7| 20. 2| 65. 0| Employees| 36. 0| 39. 5| 22. 2| 35. 8| 39. 6| 21. 8| Total| 100. 0| 100. 0| 100. 0| 100. 0| 100. 0| 100. 0| Interpretations: * 2008? 09 employees increased both in rural and urban setting. * Employers almost remained the same during 2007? 08 and 2008? 09. * Self-employment increased in 2008? 09.This emphasizes the fact that in formalization of our sectors is taking place. * The increase in self-employed persons as well as unpaid family workers indicates that activities at the household level are increasing. * Employment status shows marginal changes i. e. decrease in the comparative profiles of employees and self? employed workers while increase in the case of employers Interpretations: * The self? emp loyed males have decreased while female self-employed has increased. * The increase in self-employed persons as well as unpaid family workers indicates that activities at the household level are increasing * Employment status shows marginal changes i. e. ecrease in the comparative profiles of employees and self-employed workers while increase in the case of employers. Interpretations: * 45. 1% labour force is employed in agriculture. * 13. 6% labour force is employed in services. * 50% 0f population is residing in urban areas so emphasis will shift towards other sectors. Table: Employed labour force by sector sector| 2007-08| 2008-09| | total| male| female| total| male| female| Agriculture | 44. 6| 36. 9| 75. 0| 45. 1| 37. 3| 74. 0| Manufacturing | 13. 0| 13. 3| 11. 8| 13. 0| 13. 3| 11. 9| Construction| 6. 3| 7. 8| 0. 4| 6. 6| 8. 3| 0. 4| Transport| 5. 5| 6. 8| 0. 2| 5. 2| 6. 6| 0. 2| Services| 13. 7| 14. 4| 10. 6| 13. 66| 11. 1| 11. 6| Others| 2. 3| 2. 9| 0. 2| 0. 10| 2. 9| 0. 3|So urce: Labour Force Survey 2008-09 Federal Bureau of statistics Interpretations: * 11. 6% female and 11. 1% males are in services, which indicate as compared to males females are more in service sector. * 24. 4% females are working in other sectors. * The growth in female labor force was greater than male labor force and consequently the increase in female employment was greater Table: Employed-Pakistan and provinces Area/Province| Employed| | 2007-08| 2008-09| | Total| Male| Female| Total| Male| Female| Pakistan| 49. 09| 39. 06| 10. 03| 50. 79| 40. 04| 10. 75| Rural| 34. 48| 25. 79| 8. 69| 35. 54| 26. 46| 9. 09| Urban| 14. 1| 13. 27| 1. 34| 15. 25| 13. 59| 1. 66| Punjab| 28. 97| 22. 07| 6. 9| 29. 95| 22. 68| 7. 27| Sindh| 12. 26| 10. 43| 1. 83| 12. 72| 10. 67| 2. 05| KhyberPukhtoonkhua| 5. 73| 4. 65| 1. 08| 5. 97| 4. 77| 1. 2| Balochistan| 2. 13| 1. 91| 0. 22| 2. 15| 1. 92| 0. 23| Source: Labour Force Survey 2008-09| Interpretations: * This table gives a comparison between employmen t figures in FY 07-08 and 08-09 * The general trend is a rise in employment in both rural and urban areas, and in both genders * Higher rate of rise is registered in Punjab as compared to other provinces Table: Formal and Informal Sectors? Distribution of non?Agriculture workers (%) Sector| 2007-08| 2008-09| | |   | | Total| male| female| total| male| female| Total| 100| 100| 100| 100| 100| 100| Formal| 27. 2| 27. 2| 27. 4| 26. 7| 26. 6| 27. 6| Informal| 72. 8| 72. 2| 72. 6| 73. 3| 73. 4| 72. 4| Rural| 100| 100| 100| 100| 100| 100| Formal| 24. 9| 25. 9| 23. 2| 23. 8| 24| 22. 2| Informal| 75. 1| 74. 1| 76. 8| 76. 2| 76| 77. 8| urban| 100| 100| 100| 100| 100| 100| formal| 29. 5| 29. 2| 29. 4| 29. 4| 29. 1| 32. 8| Informal| 70. 5| 70. 8| 70. 6| 70. 9| 70. 9| 67. 2| Source: Labour Force Survey 2008? 09 Federal Bureau of Statistic | Interpretations: Large amount of in formalization is evident both in agricultural as well as non-agricultural sectors * In formalization is rising and that it is more pronounced in rural than urban areas. * According to gender, males are shifting from the formal sector so are females. d. Environmental Segment Interpretations: * Pakistan is at high risk of climatic vulnerability which results in heavy floods in the country and poses threat to agricultural sector 2. 2. INDUSTRY ENVIRONMENT ANALYSIS *Map may not be accurate or to scale . It is a mere representation Gilgit-Baltistan formerly known as the Northern Areas is the northernmost political entity within Pakistan. Gilgit-Baltistan covers an area of 72,971 km? (28,174 mi? ) and is highly mountainous . It has an estimated population approaching 1,000,000.Its administrative center is the city of Gilgit (population 216,760) Gilgit Baltistan is administratively divided into two divisions which, in turn, are divided into seven districts Division| District| Area (km? )| Population (1998)| Headquarters| Baltistan| Ghanche| 9,400| 88,366| Khaplu| | Skardu| 18,000| 214,848| Skardu| Gilgit| Gilgit| 39,300| 383,324| Gilgit| | Diamir| 10,936| 131,925| Chilas| | Ghizar| 9,635| 120,218| Gahkuch| | Astore| 8,657| 71,666| Gorikot| | Hunza-Nagar| | | Aliabad, Sikandarabad| Gilgit-Baltistan totals| | | | | | 7 districts| 72,971| 970,347| Gilgit| DEMOGRAPHICS OF GILGIT BALTISTAN: * Population statistics for the research are based on the Gilgit Population Censes carried out in 1998, according to which total population of Gilgit is approximately, 0. million * 85% of the total population lives in rural areas. * Gilgit Baltistan is traditionally male dominated, with women working primarily in the home or in agriculture. * Average household size is approximately eight people. Characteristics | Gilgit Baltistan| National| Per capita Income | US $350 | US $1046 | Literacy rate| 38% | 56% | Population Doctor Ratio | 1:4100 | 1:1183 | Maternal Mortality Rate | 600/100000 | 272/100000 | Total Fertility Rate| 4. 6 children per woman | 3 children per woman | * The study reveals that the ag e structure of the population was typical of a society with a youthful population * . t shows a pyramidal age structure due to a large number of children less than 15 years of age * 52% of the population is in age group of 15-64 * Less than 4%were over 65 years of age. * About half of the total women population was in the reproductive age group15-49 years. This is a major reason for population growth. * Education turned out to be an important factor influencing individual’s attitude and approach on various aspects of life. Majority(77%) of married women in Gilgit Baltistan are not educated, * Despite this it is encouraging to note that a significant proportion (39%)of the women is engaged in gainful employment. CURRENT FERTILITY ASFR| Urban| Rural| All Areas| 5-19| 44. 5| 66. 2| 58. 2| 20-24| 171. 7| 219. 2| 201. 1| 25-29| 245. 7| 279. 5| 267. 1| 30-34| 181. 1| 218. 2| 204. 7| 35-39| 73. 2| 143. 1| 119. 4| (NIPS Quarterly Newsletter issue no 9, march 2010) * Total fertility r ate in Gilgit Baltistan is 4. 6 children per woman,whereas fertility rate in rural (5. 1 children per woman) is higher as compared to urban areas( 3. 8 children per woman). Education level is the most conspicuous differentials in fertility. EDUCATION SECTOR SUMMARY We have selected the educational industry and analysis is as follows: Legend: Size of Industry Statistical Summary of Education Sector of Gilgit-Baltistan: Institutions|District| Primary Schools| Middle Schools| High Schools| Colleges| | Boys| Girls | Co-Edu| Total| Boys| Girls | Co-Edu| Total| Boys| Girls | Co-Edu| Total| Boys| Girls | Co-Edu| Total| Gilgit| 58| 50| 119| 227| 35| 21| 9| 65| 27| 20| 0| 47| 4| 2| 0| 6| Ghizer| 44| 17| 118| 179| 7| 3| 8| 18| 13| 1| 3| 17| 1| 1| 0| 2| Diamer| 128| 18| 25| 171| 21| 0| 0| 21| 8| 1| 0| 9| 1| 0| 0| 1| Astore| 46| 21| 49| 116| 19| 11| 0| 30| 13| 2| 1| 16| 1| 0| 0| 1| Skardu| 187| 86| 118| 391| 50| 21| 7| 78| 20| 9| 3| 32| 3| 1| 0| 4| Ganche| 57| 30| 112| 199| 17| 11| 4| 32| 20| 3 | 1| 24| 1| 0| 0| 1| Estimate: * In Pakistan especially in Gilgat Balistan have very competitive environment of educational industry. * Many of organization and NGOs are working on this industry.Legend: Industry growth Estimate: * In Gilgat Balistan have chance for growth in educational industry. * Below 6 year education school are not available in Gilgat Balistan. Legend: Employment growth Teachers| District| Primary Schools| Middle Schools| High Schools| Colleges| Grand Total| | Male| Female| Total| Male| Female| Total| Male| Female| Total| Male| Female| Total| Male| Female| Total| Gilgit| 302| 432| 734| 252| 225| 477| 348| 127| 475| 87| 38| 125| 989| 822| 1811| Ghizer| 226| 245| 471| 122| 15| 137| 156| 10| 166| 15| 0| 15| 519| 270| 789| Diamer| 273| 37| 310| 168| 0| 168| 96| 11| 107| 21| 0| 21| 558| 48| 606| Astore| 192| 74| 266| 13| 44| 157| 112| 7| 119| 15| 0| 15| 432| 125| 557| Skardu| 564| 385| 949| 239| 99| 338| 108| 24| 132| 38| 22| 60| 949| 530| 1479| Ganche| 252| 148| 400 | 155| 44| 199| 244| 21| 265| 15| 0| 15| 666| 213| 879| Total| 1809| 1321| 3130| 1049| 427| 1476| 1064| 200| 1264| 191| 60| 251| 4113| 2008| 6121| Emerging Trends in an Industry Trend| Trend Nature| Description| 1| Level of education| | 2| Required for best teacher| | 3| | | 4| | | Educational Statistics Gilgit-Baltistan Important information / Statistics Regarding the Education Sector of Gilgit-Baltistan| | Literacy Rate| Year| Male| Female| Both| | 1981| 24%| 3%| 15%| | 1998| 53%| 22%| 33%| | 2008 (Projected)| 57%| 27%| 43%| | | | | | | Teacher Student Ratio| Level| Institutions| Teaching Staff| Enrollment| Student Teacher Ratio| Govt.Schools| 1672| 5870| 151508| 1:26| Govt. Colleges| 15| 251| 6233| 1:25| Total| 1687| 6121| 157741| 1:26| | | | | | District Wise Comparison (Government Vs Private)| District | Government| Private| | Institutions| Enrollment| Institutions| Enrollment| Gilgit| 345| 43188| 160| 21070| Ghizer| 216| 18458| 146| 23303| Diamer| 202| 16457| 11| 1213| Astore| 163| 12610| 29| 2729| Skardu| 505| 44588| 116| 18575| Ganche| 256| 22440| 70| 6882| Total| 1687| 157741| 532| 73772| | | | | | % age Govt. Vs Private| 76%| 68%| 24%| 32%| 1) Threats of New Entrants Threats in education sector: * Poverty – Cost of education * Low enrolment and high dropout * Gender inequities Lack of availability of well-resourced educational institutions * Geographical and cultural constraints * Lack of awareness about value of education * Reluctance of teachers to serve in hard areas * Lack of special education institutions Threats of New Entrants| Analysis| Barriers to Entry| | Economies of Scale| | Product Differentiation | | Capital Requirement| | Switching Cost| | Access to Distribution Channel| | Cost disadvantages independent of scale | | Government Policy| | Interpretation: * 73% has access to Primary Education * 27% are out of Schools age 5-9 Years * Dropout Rate is 9% at primary level * Projected literacy rate (64 Male, 38 Female )overall 51% * Stu dent Teacher Ratio 1 : 23 5-9 Years Population( 92554 Male, 85942 Female) Total 178496 * 5-9 Years Enrolment ( 74638 Male, 55166 Female) Total 129804 * Children attending primary schools in Gilgit-Baltistan in 2009-10 is 73% where as 81% Boys and 64% Girls. 2) Bargaining power of Buyer 3) Bargaining power of Supplier 4) Intensity of rivalry among Competitors Intensity of rivalry among competitors| Analysis| Numerous or Equally Balanced Balance Competitors| | Fast Industry Growth| | High /low Fixed or Storage Cost| | Lack of Differentiation or Low Switching cost| | High Strategic Stakes | | High Exit Barriers| | 2. 3. C OMPETITOR E NVIRONMENT A NALYSISCompetitor Name| Size of Competitor| Specialization| Product line categories| Shining Star| Medium| vocational training and middle school , vocational trained staff| | Mehnaz Fatima| large| montessori and special education, montessori trained| | Mountain School| Small| montessori – middle school, trained staff| | ECDC KU| Small| early childhood developmental center, montessori experienced teachers| | APS| Large| | | | | | | RESULTS FROM INTERNAL ; EXTERNAL ANALYSIS 2. 1. RESOURCES T O B UILD Intangible Resources| HUMAN CAPITAL RESOURCE| * Marketing Research experts to conduct research for launching new software products for small and medium size segments * Accountants required to receive fees from parents | ORGANIZATIONALRESOURCE| * Management resources required to formulate organizational structure * SOP for school day to day business operations for creating exceptional value to parents or customers| Access to the Promotional Platform| * PR department to establish that requires people have exceptional PR with the exhibiting authorities, print and electronic media for promoting products on promotional channel| Tangible Resources| Additional Financial Resources | * Additional financial resources required with working capital requirement either from borrowing or investment from investor| 2. 1. S. W. O. T ANAL YSIS 2. 1. Strengths: * Low student-teacher ratio * English as a medium of instruction * Affordable to income group Accessible location for Pakistan steel worker’s children * Well-trained and qualified teaching staff * Up-to-date and extensive curriculum * Well maintained order and discipline * Environment conducive to joyful learning * Adequate security measures * Availability of adequate and modern facilities * Contribution to societal development * Weakness: * Time required for gaining recognition in the society * Higher rental cost for accessible locations * Insufficient area for playing fields to practice sports such as cricket, hockey etc. * Opportunities: * Overall increase in demand, linked with the growing population. * Government incentives and policies conducive for private investment in * education sector Gap between number of school going age children and actual enrolments in schools * Growing general public awareness (especially in urban areas) about * importanc e of quality education * Limited access to affordable, quality education. * Minimal budget allocation by government to education sector * Limited number of government/public schools * Poor facilities in government schools * Threats: * New entrants can easily share the business * Difficulty in retaining qualified teachers * Revival of public/government schools in the future through effective * Government policies and regulations. Company Information 4. 1 Company NameGlowing Pearl Education Center (GPEC) 4. 2 Company logo 4. 3 Company Vision The early Child Hood Development Centre will provide a broad, holistic early childhood education that follows the highest International standards of excellence. The Centre’s curriculum will be taught by competent early Childhood educators, is designed to help lay strong foundations for a child’s continuing education and growth 4. 4 Company Mission Our mission is to develop young men with active and creative minds, a sense of understa nding and compassion for others, and the courage to act on their beliefs. We stress the total development of each child: spiritual, moral, ntellectual, social, emotional, and physical . Each child is an individual; that all children are creative; that all children need to succeed. Therefore, School respects the individual needs of children; fosters a caring and creative environment; and emphasizes the social, emotional, physical, intellectual development of each child. To provide a safe, caring, therapeutic environment where students with psychiatric, educational, and social challenges can best develop the skills and character necessary to rejoin their communities with success. The school will design programs and learning experiences that promote academic achievement and the personal and social growth of every student.As a richly diverse community of learners that values all its Members School will provide a safe and productive learning environment in which students can communicate effectively, think critically, solve problems and are technologically literate through a variety of curricular and extra-curricular activities. Through a challenging course of study with high standards, students will become responsible learners who can not only work collaboratively, but also be accountable for their own academic and developmental progress. 4. 5 Short –term Objectives: Year| Objectives| April 2012- July 2012| * Advertising campaign at first level to introduce our brand GPEC (Glowing pearl educational center), your child glow as pearl in all among children. Aug 2012- Nov 2012| * By using current resources will establish school * Hiring of helping staff which are trained as Montessori trainer. | 4. 6 Long –term Objectives: Year| Objectives| Dec 2012- Dec 2015| * We would get 50% education market share in 3 years * More than 50% people of Gilgat Balistan should be aware of our brand GPEC. in 3 years * 50% people of Gilgat Balistan should be preference to o ur brand GPEC. in 3 years * We should at least 2 campus (one in Gilgat and other in Diyamer) of our brand GPEC to become market leader in 3 years| Jan 2016- Jan 2018| * We would open more campus other than Gilgat, we target the Khyber pakhtoon khowan which have more close nvironment and people life style etc * At least 5 campuses open in Khyber pakhtoon khowan during next 3 years. | 4. 7 Partner Profile: Muniba Islam| Expertise| | Academic Qualification| | Working Experience| | Working Experience History| | Najum-us-Sehar| Expertise| | Academic Qualification| | Working Experience| | Working Experience History| | Kanwal Gill| Expertise| | Academic Qualification| | Working Experience| | Working Experience History| | BUSINESS LEVEL STRATEGY 5. 1 Competitor product Detailed Analysis the product feature analysis before conducting the survey: Features| Competitor 1| Competitor 1| Substitute product| Our product| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5. 2 Survey Quest ionnaire SummaryThe survey is conducted among 100 peoples Around 73% Around 47% 67% of 33% of businesses uses paper based system 26% using SMS 7% of 20% CHARTS ; GRAPH MARKETING STRATEGY * Market Segmentation Segmentation Variable a) Geographic :City b) Demographic : working Woman, Income * There are two broad market-positioning options available to a Montessori School Based on the household income; the target market will be middle income group. * Based on the target market’s preference, the school will provide quality education at an affordable fee. * Irrespective of the education services, income based target market will play a crucial role in the overall positioning of the school. Any entrepreneur planning to open up a Montessori school should first decide upon the objective of the venture. Various options available in this regard may include: * To plan a Montessori school with emphasis on Daycare services. * To establish a school as a Preparatory School for other reputed Primary Level Schools. * To establish a Montessori School with incremental expansion of services into primary and high school level. * Based on income level, the school can position itself for any of the following three broad income groups; THE HIGH INCOME GROUP: The upper income group segment is quality and reputation conscious. Most parents of the children enrolled in these schools belong to the different section of the society i. e. elf-employed businessmen, high paid government or private sector executives. Existing schools in the category charge a fee ranging from Rs. 5,000–10,000 per month. These schools are characterized by large custom built campuses, swimming pools, indoor as well as outdoor physical activities areas, and furnished spacious classrooms with heaters and air conditioners. These schools offer well designed modern course work, and employ highly trained Montessori teachers. MIDDLE CLASS INCOME GROUP: Schools in this category normally charge a fee ranging f rom Rs. 1,500-5,000 per month. These schools cater to children of well-educated and professionally employed parents.The important characteristics of these schools include well located school buildings that may be custom built or rented premises, modern course work adopted by other modern school systems, and comfortable class rooms with some provisions for playing area. LOW INCOME GROUP: The concept of Montessori education is not very old in this income bracket; however an increasing number of parents in this category have also now started sending their children to these schools. One of the major reasons is that most of the private schools at primary level now do not accept students directly in Class 1. This category of schools charges a monthly fee up to Rs. ,500. These schools have small buildings with little or no provisions for physical activities. KEY SUCCESS FACTOR: At a Montessori school level, teachers/attendants play a critical role in the success of learning process. Theref ore, it is suggested that staff employed by the school should be highly educated and properly trained for Montessori education. Before starting education services, it is recommended that teacher training program should be imparted. In addition to the quality of teachers employed, the teacher student ratio should be kept at a well-researched optimum level. The education curriculum should be well researched and comprehensive.In addition to paper course work, it is suggested that visual and other teaching tools should also be optimally used. Parents are conscious about the well being and safety of their children at schools, therefore, it is suggested that the school environment ensures security and should be free from any apparent hazards. The school should preferably not be located in a highly populated location or at a location with high traffic hazards. The area of the classrooms should be in line with the number of students in each classroom. Moreover, the classrooms should either be air-conditioned or at least well ventilated. Classrooms should also be well equipped with teaching as well as extracurricular activity aids.Adequate provisions for physical, either indoor or outdoor or both facilities should be made available. Continuous teacher parent interaction should also be a regular feature of the school education system. Formal registration is required for the setup of new Montessori and elementary schools 6. 2 Market Targeting a) City Variable b) Working Woman REGULATIONS: Formal registration is required for the setup of new Montessori and elementary schools with the Executive District Officer (EDO) Education. The application is to be submitted on a prescribed form which can be obtained from the department along with Rs. 5,000 registration fee and Rs. 500 annual subscription.Domestic rates apply on the utility bills if an institution is registered with the department. HUMAN RESOURCE MANAGMENT position| number| Monthly salary| Annual salary| Principal| 1| 20,000| 240,000| Teacher coordinator| 1| 12,000| 144,000| Activity teacher| 1| 10,000| 120,000| Computer teacher| 1| 12,000| 144,000| Teacher play ground| 6| 10,000| 720,000| Teacher KG1| 3| 10,000| 360,000| Teacher KG2| 2| 10,000| 240,000| Class1| 1| 10,000| 120,000| Class2| 1| 10,000| 120,000| Game teacher| 1| 12,000| 144,000| Accountant| 1| 12,000| 144,000| Student attendant| 5| 10,000| 600,000| Guard| 2| 8,000| 192,000| Peon| 1| 7,000| 84,000| cleaner| 2| 7,000| 168,000| PrincipalThe principal should be responsible for coordinating all the activities of the school including the hiring of teachers, developing liaison with the parents, maintaining and developing the brand name of the school for appropriate positioning, course design, admission tests and extracurricular activities. Teacher’s coordinator An experienced and trained Montessori school teacher is recommended for this post . The Coordinator would be assisting the principal in all school matters. He/she will be res ponsible for teachers’ attendance, their performance and evaluation. He/she has to collaborate with students, parents, staff and volunteers to ensure that group activities run effectively. Supervise and monitor the tutoring of students. Coordinate any special projects to increase coaching awareness among teachers including arranging guest speakers, visits and workshops. AccountantThe accountant will be responsible for book keeping and maintaining accounts, salaries, and other administrative expenditures. Teachers Experienced teachers or fresh graduates with a natural aptitude for teaching should be employed. A balanced mix of experienced and fresh teachers is recommended for efficient running of the school. Each teacher shall be given a class and held responsible for proper training, imparting knowledge, arranging co-curricular activities for the children and their performances in the examinations. Student Attendants The students in the elementary institutes are very young an d may also need attendants or baby-sitters. One attendant will be requiring for every two classes. Librarian / Activity TeacherOne person is recommended for running the library and for activity room. Computer Teacher The person should be responsible for the introduction of information technology to the young students and for proper arrangement of students’ games and basic computer learning. EQUIPMENT REQUIRMENT: The details of the different equipment required for the project is given in the following table. EQUIPMENT| QUALITY| COST PER UNIT| TOTAL COST| Computers | 3| 25000| 75000| PRINTERS| 1| 10000| 10000| AIR CONDITIONS| 3| 40000| 160000| FAX MACHINE| 4| 12000| 12000| TELEPHONE SET| 1| 10000| 4000| UPS| 4| 7500| 22500| TOTAL EQUIPMENT| 16| | 283,500| LAND AND BUILDING: AREA REQUIRMENT:For three hundred (300) students, 2. 5 canals of land comprising double story building would be sufficient. A purpose built building may also be purchased. The covered area should have 13 cla ssrooms, one common room for teachers, one room for principal, one for teacher coordinator and one room for the administration staff. Appropriate numbers of washrooms are suggested for teachers, principal, children and administration staff. A big hall should be allocated with proper divisions for library/ entertainment room, and tools. Space Requirements| REQUIRED AREA| Class Rooms| 6000| Teachers Staff Room| 144| Library/Entertainment Room| 500| Admin Rooms| 575| Computer Class| 400|Washrooms ; Kitchen| 270| Grounds| 6961| Total Covered Area Requirement| 14850| Market Segmentation and Targeting Graphical Representation . 6. 3 Positioning Perception Map: 6. 4 Product: Product Information: 6. 4. 1 Product Name We offer two different type of product of three different segments which are: 1. Child care system which target only one segment which are: a. Children Age between 0- 1. 5 years 2. Education development system which target on two segments which are: b. Children Age between 1. 5 - 3. 5 years c. Children Age between 3. 5- 6. 5 years 6. 4. 2 Product Features 6. 5 Price Fixed cost = Rs. Variable cost = Rs. ariable Cost= 0 ( As once software is developed there is no additional overhead involved in licensing the software) No Licenses to be issued=70 Cost Per License Per Year= 764,700 /70= Rs 10,924. 29 Cost Per License Per Month=10,924. 29/12= Rs. 910. 36 Markup Profit Percentage = 10% Profit= 910. 36 * 10% =91. 04 Price Will be Charged= Cost Per License Per Month+ Profit=910. 36 + 91. 04=Rs. 1,001. 4 (approx. 6. 6 Promotional Strategy Promotion type| Detail | Advertisements in newspapers| | Company website| | Facebook | | | | 6. 7 Distribution Strategy ORGANIZATIONAL STRUCTURE Glowing Pearl Education Center organizational chart CVS Appendix I FOR QUESTION Appendix II FOR Budgeting