Tocco Digital Whiteboard

7/30/2019 Tocco Digital Whiteboard

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Entrepreneurship [BUSINESS PLAN]

NBS-BBA-2k7-A | 1

Table of Contents1. Executive Summary .................................................................................................................................. 3

1. Marketing Plan ..................................................................................................................................... 5

1.1. Description of venture .................................................................................................................. 5

1.1.1. Product .................................................................................................................................. 5

1.1.2. System view .......................................................................................................................... 5

1.1.3. Framework view .................................................................................................................... 7

1.1.4. Mouse Wrapper Routines ..................................................................................................... 9

1.1.5. Sketch .................................................................................................................................. 10

1.1.6. Computer Understandable Sketches (CUS) ........................................................................ 11

1.1.7. Computer Understandable Representation (CUR) ............................................................. 11

1.1.8. Laws..................................................................................................................................... 11

1.1.9. Simulator ............................................................................................................................. 11

1.2. INDUSTRY ANALYSIS .................................................................................................................... 12

1.2.1. Future outlook and trends ....................................................................................................... 12

1.3. ANALYSIS OF COMPETITORS ....................................................................................................... 13

Rational Rose .............................................................................................................................. 14

AutoCAD

.................................................................................................................................... 14

ProE............................................................................................................................................. 14

1.4. Market segmentation ................................................................................................................. 15

1.5. Industry and market trends ........................................................................................................ 15

1.6. MARKETING MIX ......................................................................................................................... 20

1.6.1. Product ................................................................................................................................ 20

1.6.2. Pricing .................................................................................................................................. 20

1.6.3. Placement ........................................................................................................................... 21

1.6.4. Promotion ........................................................................................................................... 21

2. ORGANIZATION PLAN ........................................................................................................................ 23

2.1. Form of ownership ...................................................................................................................... 23

3. FINANCIAL PLAN .................................................................................................................................. 25

3.1. Sales Volume Forecasts ............................................................................................................... 25


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NBS-BBA-2k7-A | 2

3.1.1. Cost of Goods Sold Schedule .............................................................................................. 27

3.1.2. Inflation and Price Adjustments .......................................................................................... 28

3.1.3. Assumptions: ....................................................................................................................... 31

3.1.4. Assumptions: ....................................................................................................................... 31

4. SIZE OF THE BUSINESS ............................................................................................................................ 33

4.1. Location ............................................................................................................................................ 33

4.2. Equipment and Personnel ................................................................................................................ 33

4.3. Patent ............................................................................................................................................... 34

4.4. Personnel ......................................................................................................................................... 34

5. BACKGROUND OF THE ENTREPRENEURS .............................................................................................. 35

6. OPERATIONAL PLAN ............................................................................................................................... 38

6.1. Equipment Details ............................................................................................................................ 38

IR Camera ............................................................................................................................................ 38

IR Pen .................................................................................................................................................. 38

Bill Of Materials ................................................................................................................................... 39

6.2. Facility locations ............................................................................................................................... 40

6.3. Distribution ...................................................................................................................................... 40

6.4. Inventory .......................................................................................................................................... 40

6.5. Maintenance and Service - Order Fulfillment and Customer Service .............................................. 40

6.6. General Operating Hours ................................................................................................................. 41

6.7. Labor ................................................................................................................................................ 41

6.8. Capacity ............................................................................................................................................ 41

6.9. Quality Assurance ............................................................................................................................ 41

7. PRODUCTION PLAN ................................................................................................................................ 42

7.1. Materials/purchasing option ........................................................................................................... 42

7.2. Operations/Manufacturing information .......................................................................................... 42

7.3. Demand fluctuations ........................................................................................................................ 42

8. RISK ASSESSMENT ................................................................................................................................. 43

8.1. Contingency Plans ............................................................................................................................ 44

9. REFRENCES.............................................................................................................................................. 46


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NBS-BBA-2k7-A | 3

1. Executive Summary

TOCCO is a computer-based sketching environment that feels as natural as drawing or writing

on the whiteboard, but unlike present system, understands a given scenario and simulates

according to it.

Muhammad Mustafa Saeed is the CEO and co-founder of MOHR Solution. Syed Muneeb Ali is

the Director Operations & co-Founder of MOHR Solutions and he is the IT Administrator and

Maheen Khalid is the Product Design Officer & co-Founder of MOHR Solutions. They are the

sole employees of Tocco manufacturing for the first two years of operation. Once the businessreaches 60% of its operational capacity which is expected in our third financial year they will

offer the positions of one project manager, one software developer and three assistants to our

project manager also.

Main product is an interactive whiteboard software which comes with complementary products

such as IR camera and IR pen. A small yet unique feature is that most of the already

implemented simulation techniques and techniques proposed in research papers require specific

and accurate hardware devices. Our aim is to limit the simulation within software grounds andminimize the use of external hardware. This increases level of portability and cost effectiveness.

Furthermore it decreases dependency on hardware devices and provides a more plug-n-play

scenario to the concept.

We have decided to opt for a combination of cost-based and mark-up pricing. The total cost of

our direct materials for a single unit is Rs.7, 460. The equipment required for the software

development includes Computers,Fast speed Internet,Network wires,Printers,Camera,Raw

material for the Pen

We are going to pursue a below-the-line promotional strategy, which will include business-to-

business promotion, trade shows, brochures, personal selling, internet advertising and

advertisements in trade magazines


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NBS-BBA-2k7-A | 1. Executive Summary 4

To prevent any other party from making, using and/or selling the identified invention Mohr will

have to get a Utility Patent for idea for the software that they have developed. The cost of filing

an application with IPO-Intellectual Property Organization of Pakistan, for the Utility Patent will

be covered by NUST.

In the first two years, the major work for the entrepreneurs is the development of the software.

After the development of the software, and when the company comes to the stage of

commercializing the product, they will take on a marketing manager who will help them in

making proposals and selling it to the right parties for the right price. They have decided to go

for venture capitalists in the 5th

year.

Sales forecasts for the 3 years have been done keeping in mind that the business is still in its

initial stages and product expansion is yet to happen in the future years. For the immediate

future, Toccos market has been localised and in the first year, only the entrepreneurs own

university has been targeted, with annual sales of 10 units. In the next year, the market has

expanded to other engineering institutions in the Islamabad/Rawalpindi region like QAU and

FAST-NU; with the major focus being on related constituents of NUST. In the final year, Tocco

will be supplied to its existing market, as well as some new universities will be added to its

existing clientele for example GIKI and UET.


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NBS-BBA-2k7-A | Marketing Plan 5

1.Marketing Plan1.1. Description of venture1.1.1. ProductTOCCO is a computer-based sketching environment that feels as natural as drawing or writing

on the whiteboard, but unlike present system, understands a given scenario and simulates

according to it.

There are two views of the system, overall system view and software view. Both of them are

described as under in detail.

1.1.2. System view

Our suggested system contains both hardware and software modules. There will be manipulative

computer screen to imitate a simple whiteboard and an IR Pen to imitate a marker. User will use

the IR Pen to draw on the screen or to move the objects around the screen. On the other end,

there will be a camera that will be connected to the system through Bluetooth. This camera will

track the location of the IR blob on the screen with respect to the boundaries specified. The

system in return will respond by invoking the required events. This view can be more clearly

understood by the following figure.

Figure 1: Overall view of the system


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IR Camera: For this project we are using Wiimote for the IR camera. Wiimote, also known as

Wii Remote, is the primary controller for Nintendo Wii Gaming Console. It is distributed

together with the gaming console. But can also be purchased separately. It has many capabilities

like motion detection, accelerometer, IR camera, etc. The main purpose to use Wiimote instead

of separate IR Camera is that Wiimote has a 128x96 monochrome camera with an IR pass filter.

This camera is capable of tracking 4 moving objects simultaneously at the frequency of 100 Hz.

It can detect objects of wavelength up to 940nm.

Figure(left) Wiimote Figure(right) Wiimote IR pass Filter

IR Pen: IR pen is a simple IR transmitter. Following figure shows its circuit diagram.

Figure 2: IR Pen Circuit Diagram


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This design requires special IR emitting LEDs with angular dispersion of 50 degrees and

wavelength of 940nm.

1.1.3. Framework view

The main duty of the framework is to enable the user to draw the sketch, understand it and then

simulate it by applying the laws as required.

Figure: The complete Architecture Diagram


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The first task of the framework is to provide a platform to the user using a sketch can be drawn.

Once the sketch is drawn, the system should be able to understand what the user intended to

draw and convert to XML representation which will be called as Computer Understandable

Representation (CUR). Then the mathematical calculations are applied on these CURs

according to the laws being applied and the resulting values will be saved in output XML file. A

simulator will convert this XML file to a simulation. Following figure shows the flow of this

application.

Figure: The complete Architecture Diagram

Input

Mouse WrapperRoutines

Sketch

ComputerUnderstandable Sketches

(CUS)

ComputerUnderstandable

Representation (CUR)

Laws

Simulator


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All these functions can be divided into following main modules.

1.1.4. Mouse Wrapper Routines

After capturing the IR Blob on the screen, Wiimote will send the image of the current state of

screen as a signal to the system. Based on this image, the system will determine the exact

location of the blob. Then it will translate this signal and perform the changes to the screen. For

this purpose, we need an application that interfaces between the projected screen and the system.

This application will be called as Bluetooth Based Mouse Wrapper. The term Bluetooth is

associated with it because the Wiimote sends the signal to the system over a Bluetooth

connection.

This module is also developed using JavaSE 6. Following are the main technologies being used

in this module.

MoteJ : This API is a Java library used for Wiimote Communication. Java Advanced Imaging (JAI): The Java Advanced Imaging API (JAI) provides a set of

object-oriented interfaces that supports a simple, high-level programming model which

allows images to be manipulated easily in Java applications. For mouse wrapper, it takes

every IR blob as an image and manipulates it as a signal.

Bluecove: This is a Java Library for Bluetooth which interfaces WIDCOMM with ourapplication. We need this library to link the Wiimote to our application.


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Figure: Layers in Motej

Figure: Class Diagram for Mouse Wrapper

1.1.5. Sketch

This module will provide a platform for sketching. This will be paint like application. The main

API used for the development of this module is Piccolo2D. This API is a toolkit that supports

development of 2D structures. It also provides supports for Zoomable User Interfaces which

allows user to smoothly zoom in and get detailed information.


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1.1.6. Computer Understandable Sketches (CUS)

In this module, the sketches drawn by the user will be identified according to the application then

will be converted to figures which are easily understood be the computer. For this purpose,

different imaging techniques will be used to recognize the sketch.

1.1.7. Computer Understandable Representation (CUR)

In this module, the CUS will be parsed to XML and will be called as CUR. The reason behind

using XML is that XML is highly portable and so each time system will not have to worry for

different type of applications that developers will develop.

1.1.8. Laws

In this module, the developers will implement different laws and rules that are required in their

applications. This module will take CUR as input and then generate the different values applying

the mathematical operations implemented in the laws. These generated values will be saved in

output XML file.

1.1.9. Simulator

This module based on the values in saved in output XML file will generate a simulation. This

Simulation will run using the same sketch as drawn by the user.


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1.2. INDUSTRY ANALYSIS

1.2.1. Future outlook and trends

Human-Computer Interaction is that domain in which we study the mode of interaction between

computer and human beings. It is considered to be the point where computer science merges with

behavioral science. In Human-Computer Interaction involves software and hardware both.

Therefore in HCI the goal is to develop such a system (software and hardware) in which the user

can interact with the computer in most natural way possible and take the maximum out of it. For

this reason, the developer should have complete logic of advantages and limitations of human

body. Considering all these factors we can say that HCI is a study of design, development and

evaluation of models from a human-centered perspective.

Teaching requires a very precise view of the stated problem. In a normal scenario we generally

can draw on a whiteboard and verbally explain what the image or sketch are indicating and what

action it is due to perform. But many of these scenarios cannot be conceived in a normal

environment. We generally have to use off the shelf software for sketching and simulation. This

simulation is usually limited to a few options and techniques and is not provided flexibility.

However, if we use some form of simulation which actually elaborates the intended sketch or

drawing, the intended message can be better conveyed to the audience. This requires that the

intended image or sketch be read by the computer, translated into its own understandable

format, apply the required simulation laws and finally generate a simulation of that sketch.

A very simple and basic example is drawing an apple tree and simulating the apple to fall to the

ground. We can simply draw the apple and the tree roughly. The sketches will then be

understood by the computer as an apple attached to a tree. The simulation will cause that apple to

use the law of gravity to make it fall to the ground.

Glover & Miller conducted a study on the pedagogic impact of interactive whiteboards in a

secondary school. They found that although interactive whiteboards are theoretically more than a

computer if it is only being used as an adjunct to teaching its potential remains unrealized. The

authors research was primarily to ascertain the extent and type of use in the classroom. In order


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to determine if any change in pedagogy or teaching strategies was taking place the researchers

conducted a detailed questionnaire. The authors found that the teachers used the IWBs in one of

three ways; as an aid to efficiency, as an extension device, and as a transformative device. They

noted that teachers use of the technology was not primarily affected by training, access, or

software availability.

According to the findings of a study conducted by the London Institute of Education as part of

the DfES-funded study (see detailed information below) to evaluate the educational and

operational effectiveness of the London Challenge element of the (SWE), interactive

whiteboards have been found to have no significant impact on student performance in Maths and

English for Key Stage 3, and a slight improvement Science. At the same schools over Key Stage

4 negative effects for Maths and Science were found and positive effect for English. The authors

site several possible causes for the Key Stage 4 findings, which include; a Type II statistical

error, disruption to teaching methods leading to reduced pupil performance when IWBs were

installed, or a non-random deployment decision of IWB installation resulting in a skew of the

data

A lot of software firms like Apple, SMART technologies, Optinnova, ReturnStar etc. have

already heavily invested in interactive whiteboard simulation and these softwares are focusing

more on primary classrooms. Whereas the newness of the technology is welcomed with open

arms, the conducted studies have mixed reviews about the potential of this technology. However

it is an invention that is in sync with todays needs.

1.3. ANALYSIS OF COMPETITORSThere are extremely rare applications in existence which take input handmade sketches from the

user, translate them to a computer generated image and perform a simulation. Therefore we dont

have direct competitors but on the other hand we do have indirect competitors which are brieflyexplained below.

MicrosimsMicroSim is a simulation language developed specifically for use on microcomputers.

The package is written in Basic, a language commonly found on microcomputers, and is


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a generalized discrete event simulator. The MicroSim language provides the analyst with

all of the necessary computational features such as random number generation, time

keeping, etc. that are used in simulation. This language is event oriented and allows the

user to write subroutines in Basic to describe discrete events. The language also allows

for limited continuous modeling by the use of linear difference equations.

Rational RoseRational Rose is an object-oriented Unified Modeling Language (UML) software design

tool intended for visual modeling and component construction of enterprise-level

software applications. In much the same way a theatrical director blocks out a play, a

software designer uses Rational Rose to visually create (model) the framework for an

application by blocking out classes with actors (stick figures), use case elements (ovals),

objects (rectangles) and messages/relationships (arrows) in a sequence diagram using

drag-and-drop symbols. Rational Rose documents the diagram as it is being constructed

and then generates code in the designer's choice of C++, Visual Basic, Java, Oracle8,

CORBA or Data Definition Language.

AutoCADAutoCAD is a CAD (Computer Aided Design or Computer Aided Drafting) software

application for 2D and 3D design and drafting. It is built to help people design buildings,products, or public spaces, without having to draw up plans by hand. It was released in

1982 by Autodesk, Inc., and offered a personal solution to software that was before then

released only for larger workstations. While CAD programs prior to AutoCAD required

massive amounts of computing power in the form of gigantic computers, AutoCAD

streamlined its operating and optimized it for the IBM PC, allowing people to work from

home or on their own work computers.

ProECreo Elements/Pro, a product formerly known as Pro/ENGINEER is a parametric,

integrated 3D CAD/CAM/CAE solution created by Parametric Technology Corporation

(PTC). It was the first to market with parametric, feature-based, associative solid

modeling software. The application runs on Microsoft Windows and Unix platforms, and


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provides solid modeling, assembly modeling and drafting, finite element analysis, and

NC and tooling functionality for mechanical engineers.

1.4. Market segmentationWe are launching our product in Pakistan which is our home country, thus granting us easier

access to the untapped local market. It is a product that does not cater to the primary level

classrooms instead it is an advanced interactive whiteboard that mainly focuses on the

advanced learning of Physics, Chemistry and Mathematics. In the initial development stage

we are going to test the market and launch it in one of the most highly recognized software

institute, SEECS. Weighing the demand and the success of the software we are then going to

expand to other related universities and research institutes (public and private). A need was

identified in the market. In a classroom, the instructor can never make sure that students

perceive the exact concept of whatever is being conveyed. Neither can it be made sure

whether or not students are able to visualize those concepts. Visualization of different

scientific concepts is very essential to the learning for the students. It helps them to grasp

each and every detail more easily and quickly and diversifies their imagination. But even

only visualization is of little importance unless it is interactive for the instructors andstudents.

1.5. Industry and market trendsMIT Magic Paper:

Over the years, scientists have been working to develop such interaction platform which provides

highest degree of interaction. But all they have been able to develop are various CAD systems

which require such detailed input that the user might not be able to take care of all the time. One

important improvement after realizing this shortcoming was made by Massachusetts Institute of

Technology. This research was named as Magic Paper. The main aim of this project is to

understand raw hand-made sketches. This scheme involved a highly coupled Hardware and

software system. Special screens were made to analyze the sketch. Sketch is taken as a signal


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which is separated from the noise using special noise filters on the basis of spatial frequencies.

This scheme makes use of two ways to collect the information about the sketch.

First is to identify the lines and the arcs through calculating the noise. Second is to make use of a temporal character of data, i.e. speed slows down around

the corners.

MIT group of Magic Paper is actually extending this module where they can use different

modeling techniques. This system is extremely effective in analyzing the sketches and simulating

them. But it has a major shortcoming. This system is a highly dependent on the hardware.

Without the screen (Hardware), the software will simply not run.

SILK (Sketching Interfaces Like Krazy)

With increasing power of computer, the scientists are trying to improve the User Interface as

well so that computers bend to peoples way ofinteracting, not the other way around.

Researchers at University of California, Berkeley and Carnegie Mellon University (CMU) have

designed, implemented, and evaluated SILK (Sketching Interfaces Like Krazy), an informal

sketching tool that combines many of the benefits of paper-based sketching with the merits of

current electronic tools. The main idea behind SILK was to grant designers the freedom to sketch

rough design ideas quickly, and the ability to test designs by interacting with them, and the

flexibility to fill in the design details as they make choices.

With SILK, designers can quickly sketch an interface using an electronic pad and stylus, and

SILK recognizes widgets and other interface elements as the designer draws them. Unlike paper-

based sketching, however, designers can exercise these elements in their sketchy state. For

example, a sketched scrollbar is likely to contain an elevator or thumbnail, the small rectangle a

user drags with a mouse. In a paper sketch, the elevator would just sit there, but in a SILK

sketch, designers can drag it up and down, which lets them test the components or widgets

behavior. SILK also supports the creation of storyboardsthe arrangement of sketches to show

how design elements behave, such as how a dialog box appears when the user activates a button.

Storyboards are important because they give designers a way to show colleagues, customers, or

end users early on how an interface will behave.


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SILK recognizes four primitive componentsrectangle, squiggly line (to represent text), straight

line, and ellipse. These are single-stroke shapes, which mean that the designer must draw them

without lifting up the pen or mouse button until the stroke is finished. These primitive

components combine to form basic widgets.

Figure . Interface widgets that SILK recognizes (a) during sketching and (b) in

the transformed interface.

Johnny Chung Lee: Low Cost Interactive Whiteboard:

Johnny Chung Lee, a research assistant at Carnegie Mellon University, first came up with this

concept of using Wiimote as the basis of interactive surfaces. As Wiimote has the capability of

motion sensing, it can be easily used for gesture tracking. Johnny Chung Lee also came up with

research papers to prove that gestures can enhance the quality of lecturing process. Tracking

gestures, in scope of the demonstration and presentation of teaching subjects, will be used to

highlight and underline the essence of presenting the material. For example, to point on a

particular location saves time and sometimes can be more efficient than a verbal description of it.

If the information is presented incidentally in a wrong way, significant loss of information for the

end users can be a fatal consequence.

In this solution we had a computer projected screen. An IR emitting pen is used to navigate the

screen. On the other end, Wiimote is connected to the system over a Bluetooth connection and


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locates the IR blob on the screen using its IR pass filter. It then sends the signal to Wiimote

Control Desk which then performs the required event. The Wiimote Control Desk application

was developed based on the code of Wiimote Whiteboard, originally programmed by Johnny

Chung Lee as part of his experiments. Wiimote Control Desk can be operated on two plans.

The Controller mode was implemented in order to use the Wiimote as both a pointingand presenter device, similar to a free hand mouse. As capturing background, an IR

LED array was used. Some Wiimotes buttons were reprogrammed to fire mouse and

keyboard events.

The Presenter mode is required when using finger tracking support. This modeenables the user to navigate through the presentation slides of MS PowerPoint or any

other applications which support the forward or back function based on keyboard

events.

However, for low cost interactive whiteboard we just need the former plan of operation.

This demonstrator kit was used as a presentation tool during various lessons and practical lab

sessions at Graz University of Technology. Moreover, it was used as an interactivity and

cooperation tool during learning and discussion tasks using a visual tracking of mouse

movements on electronically shared whiteboards. In comparison to the classic approaches, this

method allows the direct intuitive cooperation between all participants within the learning

process. Consequently, it offers more comfort and provides more flexibility in everyday e-

Learning and e-Teaching activities. Furthermore, it can be pointed out that there are no similar

low cost products, which contain a higher or equal grade of interactivity and such a wide

appliance area that could be as suitable for these purposes.

Altogether it can be said that Wiimote is a fascinating collection of sensors that can be used for

many purposes, even for recognizing gestures, and which can be adapted freely using adequate

open source libraries available at the internet.


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Dell S300wi Wireless Short-Throw Interactive Projector

Recently Dell came up with a product which follows the same approach as Johnny Chung Lees

Interactive Whiteboard but it has specialized hardware. The pen is battery-powered, photo-diode

based. 3-button interactive pen is designed to operate like writing or drawing tool, serving as a

wireless mouse that works on- or off-surface from as far as 30 feet away. Short-throw projection

means you can get big pictures in tight spaces: 60" image from 2.2 feet away; 90" from 3.3 feet

away. It provides connectivity to the system through LAN, VGA and Wireless Adapter.


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1.6. MARKETING MIX1.6.1.Product

Our main product is an interactive whiteboard software which comes with complementary

products such as IR camera and IR pen. Our suggested system contains both hardware and

software modules. There will be manipulative computer screen to imitate a simple whiteboard

and an IR Pen to imitate a marker. On the other end, there will be a camera that will be

connected to the system through Bluetooth. For more details about the product and its

specifications refer to the description of venture module.

A small yet unique feature is that most of the already implemented simulation techniques and

techniques proposed in research papers require specific and accurate hardware devices. Our aim

is to limit the simulation within software grounds and minimize the use of external

hardware. This increases level of portability and cost effectiveness. Furthermore it decreases

dependency on hardware devices and provides a more plug-n-play scenario to the concept.

For additional resources a lot of back end programming and other resources are required. This is

not a job for a few programmers but will require a number of different programmers to provide

code snippets which can be integrated to the interaction framework. This can be done bydesigning modules which can be plugged to the main framework. Programmers can program

various actions e.g. real world laws and projections in the form of pluggable modules using

APIs.

1.6.2.Pricing

We have decided to opt for a combination of cost-based and mark-up pricing. The total cost of

our direct materials for a single unit is Rs.7, 460. The two major components that contribute

heavily to this break-down are the wii-mote with an astounding Rs.5, 000 and the batteries which

cost Rs.1, 400 for the first year. For the first two years of our operations we also do not have any

labor costs. So having a total of our costs (adjusted against inflation etc.), we add a cost mark-up


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of 25% (also, our profit margin), which gives us a price of Rs.9, 325. This being very exact, our

initial estimation was an addition of at least Rs.1, 500 above our costs.

The price skimming strategy that is used majorly by any technological invention was something

that we did consider but then decided against it. This is majorly because we are not incurring

extravagant costs in the product development; also we essentially want to Pakistani consumers to

readily accept this technological advancement without having to worry about pricing. And, this

will also greatly reduce a need for pirated versions.

On the other end we cannot opt for penetration pricing because we have no direct rival in the

industry.

1.6.3.PlacementWe will be distributing our products from the university in particular from the incubation centre

of NUST, where our business has been set up. Since our product is exclusive to our home

market, we will only utilize a few channels of distribution, more specifically our extensive

university network. Initially, in the development stage of the product, we will only target the

specialized engineering institutes of NUST, after which we will approach other

engineering/architecture/research institutes of Rawalpindi and Islamabad. By the end of 3 years,

eventually encompassing the Punjab region.

1.6.4.PromotionWe are going to pursue a below-the-line promotional strategy, which will include business-to-

business promotion, trade shows, brochures, personal selling, internet advertising and

advertisements in trade magazines. In B2B selling initially we will be leveraging our universitys

extensive academic and corporate network, in creating awareness about our products usefulness

and eventually generating non-pirated sales.

Because we are starting a new venture we do not have the capital to hire sales personnel,

therefore, we the entrepreneurs ourselves would approach prospective customers. Side by side

we will be advertising in different trade magazines, to create awareness about our product.


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Because it is not a necessity, we need to aggressively market our product to create a need.

Another successful way for generating awareness and sales about technical innovations is

through trade shows. This will help us showcase our product in a cost effective manner.

We will distribute brochures and pamphlets to relevant educational and research institutes in the

Punjab region. Our product website will continuously be updated to provide the upgraded

version of our software. We will also promote it through this medium to a selective audience.


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NBS-BBA-2k7-A | ORGANIZATION PLAN 23

2. ORGANIZATION PLAN2.1. Form of ownershipIn the first two years, the three entrepreneurs will be the sole owners of the business with an

equal partnership. They will have an equal say in the managing decisions of the company. All the

profit, after taking out the money to be reinvested in the company will be divided equally

amongst the partners. However, as they start commercializing their business they would require

capital, they will have to find additional source of funds.

They have decided to go for venture capitalists in the 5th

year. Two venture capitalists will be

taken on board and the ownership of the business will be broken down into 75-25 with 75%ownership lying with the three entrepreneurs (25% each) and the rest 25 will be divided among

the two venture capitalists with 13.5% each. The entrepreneurs are apprehensive about losing the

control over their business, so by this arrangement they will retain the majority of the ownership

with 75% decision making power as well. Venture Capitalists do have a say in the managing

decisions, but these entrepreneurs will have an expectation setting with the capitalists to ensure

that they are aware of their minimal role in the managing decisions of the business.

Management Team Background

CEOInitially CEO will be Muhammad Mustafa Saeed, who is the co-founder of the company, Mohr,

and is currently the team leader. Later, the team will replace him with a person who has previous

experience in the industry of management.

CFOThe entrepreneurs lack the skills to manage the financials of the company, so the company will

need a finance expert in the second year of the business before officially introducing their

product in the market. The CFO will draw up Cost Benefit Analysis, Cash Flow Statements,

Break-even analysis and will be in-charge of finding the sources of the required funds. He will

also maintain the Payable Accounts, along with the Income Statement and Balance Sheet.


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NBS-BBA-2k7-A | ORGANIZATION PLAN 24

CTOThe entrepreneurs will choose amongst themselves as to who will be the CTO. They wont

require an external person to fill this position as in this department all the research and

development of the software will take place.

CMOThe Chief Marketing Office will be hired as soon as the software is completely developed, which

should be towards the end of the first year of operation. CMO in charge of handling the price,

distribution, promotion, and public relations with the clients. The CMO will need to have good

communication skills along with good negotiating and persuasion skills. The CMO will need to

have experience in the industry, should be aware of the needs of the consumers and be up to date

with other similar products.

DODirector of Operations will be handling all the activities related to the operations of the company.


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NBS-BBA-2k7-A | FINANCIAL PLAN 25

3. FINANCIAL PLAN3.1. Sales Volume ForecastsSales forecasts for the 3 years have been done keeping in mind that the business is still in its

initial stages and product expansion is yet to happen in the future years. For the immediate

future, Toccos market has been localised and in the first year, only the entrepreneurs own

university has been targeted, with annual sales of 10 units. The volume was decided upon by

looking at the different programs being offered there, for the duration that one batch stays in a

particular program and the number of divisions or sections in each year. Since the product was

relatively new, the students in their final or third-years were kept as the main focus. This

approach of need determination was carried forward in ascertaining the demand for later years

in other institutions as well.

In the next year, the market has expanded to other engineering institutions in the

Islamabad/Rawalpindi region like QAU and FAST-NU; with the major focus being on related

constituents of NUST. Some colleges outside of this region have also been targeted like PNEC

and CAE. SADA is also included in this list as it has an indirect need associated with the

product. Its programs focus more towards the architecture side, for which a virtual whiteboard

would be a an important aid in the classroom.

In the final year, Tocco will be supplied to its existing market, as well as some new universities

will be added to its existing clientele for example GIKI and UET. These are well-known names

in the country for their engineering degrees and hold to benefit greatly from our product.


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Sales Volume Break-up

FY2012 FY2013 FY2014

(units) (units) (units)

Engineering Institutions in NUST

School of Electrical Engineering & Computer Science (SEECS) 10 2 2

College of Aeronautical Engineering (CAE) 0 10 15

School of Chemical and Materials Engineering (SCME) 0 7 12

Military College of Engineering (MCE) 0 15 15

College of Electrical and Mechanical Engineering (C of EME) 0 25 35

Military College of Signals (MCS) 0 10 15

Pakistan Navy Engineering College (PNEC) 0 5 15

Institute of Environmental Science and Engineering (IESE -

SCEE)

0 5 15

Institute of Geographical Information Systems (IGIS- SCEE) 0 5 0

Centre for Advanced Mathematics and Physics (CAMP) 0 0 3

Engineering Institutions in Islamabad/Rawalpindi

School of Art, Design and Architecture 0 5 2

Bahria National University 0 5 7FAST NU 0 5 12

COMSATS 0 0 15

AIR University 0 3 5

Quaid-e-Azam Uuniversity 0 8 12

Related Institutions in Punjab

GIKI 0 0 16

UET Lahore 0 0 30

LUMS 0 0 8

UET Taxila 0 0 16

RIMMS 0 0 2

NCVI 0 0 3


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AMC 0 0 5

TOTAL 10 110 260

3.1.1. Cost of Goods Sold ScheduleThe following table shows the necessary components and sub-assemblies required for the

manufacture of one unit, as well as for the annual forecasted demand. The labour costs, which

are incurred in Year 3 only, are given in terms of annual figures. There are not much significant

indirect costs for the business as production is relatively low-scale and takes place in the NUST-

SEECS Innovation Centres for the first 2 years and mostly at the home of one of the

entrepreneurs or even the office-space provided by the PSEBif they choose to use that

facilityin the third year. Moreover, there is not a separate schedule for Cost of Goods

Manufactured and Sold as the business does not hold inventory. Whether, raw materials or work-

in-process or finished goods. Hence, the figures are the same for both.

Cost of Goods Sold Schedule

FY2012 FY2013 FY2014

(Rs.) (Rs.) (Rs.)

Direct Materials:

Wii-mote 5,000 5,000 5,000

Infrared pointer 100 100 100

Wires 100 100 100

Batteries 1,400 1,400 1,400

IR LED 60 60 60

SPST switch 800 800 800

DM cost per unit 7,460 7,460 7,460

Total DM cost 74,600 820,600 1,939,600


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3.1.2. Inflation and Price Adjustments

The costs figures shown above have not been adjusted to inflation so far. The following data was

used to make the figures more realistic. In the first table, a base inflation rate1

was used and then

annual forecasts of rate changes2

were added to the base rate to get to the future forecasts for the

3 years. In the second table, process were calculated for the first year by adding a 25% Gross

Profit Margin on the COGS figure. This mark-up reflects the skimming pricing strategy, keeping

in mind that the product is new and without any competition in the market, but also considering

that establishing yourself in the market requires you to moderate your profits in the beginning

years. For this very reason, when the entrepreneurs will require extra help in the third year to

help with the rising demand and incur direct labour costs of PKR 840,00 in Year 3, this cost will

be adjusted within the mark-up of the initial years and there will not be a price jump. Inflation

will be the only factor taken into account in the beginning for increasing prices.

1Pakistan Budget 2009-10

2Country Intelligence Report CPI change forecastspg.34

Direct Labour:

Developer 0 0 420,000

Project Manager 0 0 300,000

Assistants 0 0 120,000

Total DL cost 0 0 840,000

Manufacturing o/h:

DSL connection 0 0 24,000

Cost of Goods

Manufactured

74,600 820,600 2,803,600

Starting Inventory 0 0 0

Ending Inventory 0 0 0

COGS 74,600 820,600 2,803,600


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FY2012 FY2013 FY2014

Gross Cost 74,600 820,600 2,803,600

Inflation Rate 17.41% 18.59% 19.74%

Inflation

Adjustment

12,986 152,558 553,534

Adjusted COGS

87,586 973,158 3,357,134

Cost Mark-up 25% 25% 25%

Price 9,325 11,059 13,242

PRO-FORMA STATEMENTS

FY2011 FY2012 FY2013 FY2014

Base rate 14.4% 15.9% 17.4% 18.6%

Change Forecasts 10.7% 9.2% 6.8% 6.2%

Inflation rates 15.9% 17.4% 18.6% 19.7%

Income Statement

FY2012 FY2013 FY2014

(Rs.) (Rs.) (Rs.)

Revenue 93,250 1,216,448 3,442,919

COGS (87,586) (973,158) (3,357,134)

Gross Profit 5,664 243,290 85,785

Printer Expenses 0 1,000 1,500

Phone bill 0 0 6,000

Registration fees 15,000 7,500 7,500

Printer depreciation 0 1,500 1,500

Laptop depreciation 22,500 22,500 22,500

Operating Expenses (37,500) (32,500) (39,000)

Operating Profit (31,836) 210,790 46,785

Marketing Expenses 400 5,200 33,600


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Delivery Charges 0 0 11,640

Other Expenses (400) (5,200) (45,240)

Profit before Tax (32,236) 205,590 1,545

Taxation 0 (71,956) (541)

Net Profit (32,236) 133,633 1,004

Balance Sheet as at 30th June

FY2012 FY2013 FY2014

(Rs.) (Rs.) (Rs.)

Fixed Assets

Intangible:

Tocco Software Testing Environment 40,000 40,000 40,000

Web Domain 10,000 10,000 10,000

Tangible:

Laptops 157,500 135,000 112,500

Laser Printer 0 7,500 6,000

207,500 192,500 168,500

Current Assets

Cash 0 148,633 173,637

0 148,633 173,637

TOTAL ASSETS 207,500 341,133 342,137

Equity

Owners' Investment 239,736 239,736 239,736

Retained Earnings/Loss (32,236) 101,397 102,401

Liabilities 0 0 0

TOTAL CAPITAL 207,500 341,133 342,137


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3.1.3.Assumptions:1. Operating expense of phone bill applies only in the last year when NUST facilities are

not being utilized anymore.

2. Business will be registered with PSEB in the first year of operations, hence the start-upfee of Rs. 7,500 along with the annual charge of Rs. 7,500 applies in the first year. In the

coming years only the annual charge is required to be paid.

3. Marketing expenses constitute the preparation of their formal business proposal and itsdistribution to the respective universities. It also takes into account the transportation

charges of the business owners to the various institutes in order to present their business

proposal as marketing will be done mainly in-house.

4. Delivery charges constitute of the TCS charges3. Rs. 140 and Rs. 170 per 2kg packagewhich is an adequate size for Toccobeing sent to areas in Khyber-Pakhtunkhwa and

Punjabmainly Lahore.

5. Standard corporate tax rate of 35% applies.3.1.4.Assumptions:

1. No inventory or credit-system is used in the starting years. Suppliers are paid at the time ofpurchase and workers are paid on a monthly basis.

2. The owners invest in the form of cash as well as assets that are required for initiating thebusiness. The laptops and intangible assets are part of their investment in the business too.

3. The intangible assets bear no amortization as the investment in a website domain will notlose any value with time. However, since this investment will be used for a term longer than

one reporting period, the expense was capitalized and made a part of equity as well as a fixed

asset. It is the same case with the software testing environment. The entrepreneurs will be

using it to constantly upgrade their software and since it is a one-time cost with benefits

3TCS Domestic Shipping http://www.tcscouriers.com/pk/Tools/DomesticCostCalculater.aspx


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being reaped for a longer term, with no reduction in value to the business, it is also treated as

an intangible fixed asset without any amortization.

4. Depreciation on the fixed assets is charged using the straight-line method. There are 3laptops, worth PKR 60,000 apiece. They have a useful life of 4 years with a residual value of

PKR 30,000 at the end of their economic life. This amounts to depreciation expense of PKR

7,500 per laptop and PKR 22,500 for all 3 combined. The laser printer is bought in Year 2 for

PKR 9,000 and will be disposed in 4 years too with a residual life of PKR 3,000; hence PKR

1,500 is charged in Years 2 and 3.

5. The owners investment stays constant in all 3 years, as retained earnings are used to meet anyother demand of the business; for example the purchase of the laser printer in Year 2.

CASH FLOW STATEMENT

FY2012 FY2013 FY2014

(Rs.) (Rs.) (Rs.)

Net Income (32,236) 133,633 1,004

Add: Depreciation 22,500 24,000 24,000

Cash Flow from Operating Activities (9,736) 157,633 25,004

Cash Flow from Investing Activities (230,000) (9,000) 0

Cash Flow from Financing Activities 239,736 0 0

Net Increase/Decrease 0 148,633 25,004

Add: Balance at start of year 0 0 148,633

Cash at end of year 0 148,633 173,637


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NBS-BBA-2k7-A | 4. Size of the Business 33

4. Size of the Business

4.1. Location

Initially in the first two years of the business, the major work for the entrepreneurs is the

development of the software. This will be done on the NUST campus as NUST provides its

students with the facility of working on the NUST premises with using its equipment for free.

This absolves the entrepreneur of having to pay the utility bills, the rent of the office, the internet

and the equipment (especially computers). The plan is to develop the software in the first year

and then work on its commercialization in the second year and make it ready to be sold in the

market.

In the third year, the entrepreneur will move out of the NUST campus and they will start small

with minimal expenses. They plan to shift into a small place which might be one of the

entrepreneurs house and continue working from there. They will get a landline and the required

equipment. For meetings with the clients they have planned to conduct in restaurants or other

professional cafs.

4.2. Equipment and Personnel

The equipment required for the software development includes:

Computers Fast speed Internet Network wires Printers Camera Raw material for the Pen

They will be using their personal laptops throughout, therefore cutting costs for the company.

However, internet will be free for them while they operate from NUST but they will have to bear

the cost when they move out of the NUST premises. The cameras, raw material of the pen,

printers, and the network wires will have to be bought throughout the years of operation and

development and this will be their major cost in the years.


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NBS-BBA-2k7-A | 4. Size of the Business 34

4.3. Patent

To prevent any other party from making, using and/or selling the identified invention Mohr will

have to get a Utility Patent for idea for the software that they have developed. A patent in

Pakistan is obtained by filing an application with a complete specification of the idea. Then there

is examination and acceptance of application by the Patent Office. The next step is overcoming

opposition if there is any to the grant of the Patent and then sealing the Patent. Filing fee for

Patent Application is PKR 2250 and an additional Rs. 30 for pages of specification above 40.

The cost of filing an application with IPO-Intellectual Property Organization of Pakistan, for the

Utility Patent will be covered by NUST.

4.4. Personnel

The technical knowledge that is needed for this software will be provided by the entrepreneurs.

However, the additional help that they will require will come in the form of the interns that they

take from their university. These interns will not be paid but they will be given extensive

practical training during the course of the internship. While operating from the NUST premises

the interns will use the universitys equipment and later, after the second year the interns willhave to bring their own laptops to work on.

After the development of the software, and when the company comes to the stage of

commercializing the product, they will take on a marketing manager who will help them in

making proposals and selling it to the right parties for the right price. This marketing manager

will also guide the team in maintaining their competitive advantage. He will not be a partner, and

will be paid a salary as an employee.

They will recruit more employees as the need arises. The posts that they will be filling initially

include a CEO, CFO, CTO, CMO and DO. The position of the CTO will be taken over by one of

the entrepreneurs and the rest of the posts will be filled by employees on a salary. At the start,

while trying to keep their costs low, one of the entrepreneurs will take up the role of the CEO.


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NBS-BBA-2k7-A | 5. BACKGROUND OF THE ENTREPRENEURS 35

The employees that will be hired will be based on their experience in the respective industry and

knowledge.

5. BACKGROUND OF THE ENTREPRENEURS

I did my O-levels and A-Levels from Burn Hall , Abbottabad. Then joined NUST just after that .

I am doing my Bachelors degree in Information Technology and am the CEO and co-founder of

a startup company named Mohr Solutions. I have done internships in a company called

Personforce in 2010 and an internship in Tintash as a game developer for iPhone and iPad. I have

a passion for Computer Graphics , Animation and Game Development so I have usually been

involved in such work.I am the head Game development in my campus also. I have also worked

on major web related projects. One of the significant is called "bbclone". Its an online tool for

websites to maintain their customer traffic and statistics related to that. I have done a project of

3D rendering of objects increasing its efficiency to 40%.

I dont recall myself not being part of something new or something happening. Even during my

college days I had been part of the sports and co and extracurricular activities. Basketball has

always attracted great interest of mine which has also given me lessons of making the most out

of the available conditions and still aim for the highest possible standards. I enjoy discussing

ideas; some are good, some wild, and some maybe senseless. This makes me end up getting into

things that are not essentially related to my field of specialization. Having studied computing and

concentrated on the conventional programming has not stopped me from getting into

unconventional ideas. I have been part of business plan competitions just to get to know the rules

Muhammad Mustafa Saeed

CEO & co-Founder

MOHR SolutionsProgrammer


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of the game. I am an admirer of aesthetics and believe that no matter where a person is, he/she

can mold their careers in that direction. Music genre that interests me is Rock. I am and have

been heading societies and committees which have certainly taught me leadership and

management. Still I believe I have the tendency of lacking focus on one particular area which is a

negative trait in my opinion.

Making technology as natural as possible was our aim. Simulations and graphics has always

been an inspiration for me. As a group we wanted to make visualization do the greater job of

work. We watched IRON MAN 2 where he had everything as holograms to understand and show

to the system. It was something very easy for him to convey and interpret. This was a major

inspiration also. We had seen some simulation tools as well so we did a bit research on what

things are available and through discussions and research we finalized on Tocco.

I am a person who takes privilege in making things work and manage logistics. I sense music and

literature as a major driving force in my work. I have been an all-rounder as far as maintaining

things are concerned. I have pretty good skills of influencing my peers and help achieve its tasks

smoothly. I am not an initiator but can take tasks can make them happen. I am currently the

President of NUST Volunteers Club which has a branch set up in the College of EME as well.

My weaknesses are that I get discouraged by timely failures but overcome them very soon. I am

an IBM certified Tivoli Associate.

Syed Muneeb Ali

Director Operations & co-Founder

MOHR Solutions

IT Administrator


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I love reading books. I believe that through we get a wider view of the world around us. I had

idea of what Information Technology and Computing is but now that I look at it, this is what I

always wanted to be. Technology fascinates me especially the design. Success to me is the sense

of achievement that one gets out of the resources. I am very critical about rules and the way

things are handled. I have been the general secretary IEEE SEECS. I want to achieve all that I

aim for .For me the sky is the limit. I played baseball in my school and follow a wide range of

technologists. Steve Jobs ranks the most inspiring to me. I tend to be impulsive on decisions but I

believe I can handle stress effectively.

Maheen Khalid

Product Design Officer & co-Founder

MOHR Solutions

Programmer


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NBS-BBA-2k7-A | 6. OPERATIONAL PLAN 38

6. OPERATIONAL PLAN

The following section will identify the proposed operational plan for a product Tocco. Included

are the Equipment and its details, Facility location, Distribution, Inventory, Maintenance and

Service - Order Fulfillment and Customer Service, General Operating Hours, Capacity, Labor

and Quality Assurance.

6.1. Equipment Details

Tocco contains both hardware and software. There will be manipulative computer screen to

imitate a simple whiteboard and an IR Pen to imitate a marker. User will use the IR Pen to draw

on the screen or to move the objects around the screen. On the other end, there will be a camerathat will be connected to the system through Bluetooth. This camera will track the location of the

IR blob on the screen with respect to the boundaries specified. The system in return will respond

by invoking the required events.

IR Camera

For this product, Wiimote has been used for the IR camera. Wiimote, also known as Wii

Remote, is the primary controller for Nintendo Wii Gaming Console. It is distributed

together with the gaming console. But can also be purchased separately. It has many

capabilities like motion detection, accelerometer, IR camera, etc. The main purpose to

use Wiimote instead of separate IR Camera is that Wiimote has a 128x96 monochrome

camera with an IR pass filter. This camera is capable of tracking 4 moving objects

simultaneously at the frequency of 100 Hz. It can detect objects of wavelength up to

940nm.

IR PenIR pen is a simple IR transmitter. Its design requires special IR emitting LEDs with

angular dispersion of 50 degrees and wavelength of 940nm.


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BILL OF MATERIALS

TOCCO

Wii mote IR Pen

Infraredpointer

Wires

Batteries

IR LED

SPSTswitch

ProjectorWhiteBoard


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6.2. Facility locations

SEECS has a policy of providing access to its students to its innovation centers for a period of

two years from when they have graduated. Therefore, for the initial two years, the entrepreneurs

shall work at SEECS, and with them, to extend the reach of the product. Later, when the period

with SEECS has expired, the facility location, which includes the office as well as the assembly

of the IR pen, will be moved to Islamabad. A small facility shall be set up, as suited to the

demand forecast for the year, although as the demand rises with time, operations shall be moved

to a bigger building, which is convenient both for the entrepreneurs as well as the customers.

6.3. Distribution

The initial marketing of the product shall be done by SEECS itself, to all the schools that fall

under NUST where the product can be used, like engineering schools and mathematical research

centers. The firm however, shall not use any distributers, and the product will be purchased,

directly from the company, and will be set up by the company experts, who shall go personally

and train the faculty who will use the program.

6.4. Inventory

The company has a zero inventory policy for the forecasted years. However, a buffer stock of ten

units will be kept at all times, which will be stored at the facility.

6.5. Maintenance and Service - Order Fulfillment and Customer Service

The orders shall be fulfilled in a period of 15 days, from the date of order, with the transportation

charges being charged separately. The university staff will be also given training to deal with

minor glitches in the system on their own, however, for major problems that might arise in the

program, or for major updates of the system, the experts may have to travel to the institute and

solve the problem.

Updates of the program shall be released periodically, with bug fixes being free and major

program changes or innovations being charged at a nominal price. The users of the product will


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be notified of updates regularly, after which they may or may not show interest in obtaining the

update.

6.6. General Operating Hours

For our product manufacturing we intend to operate Monday thru Friday from 9 am to 5 pm. It

will be operational year round.

6.7. Labor

Muhammad Mustafa Saeed, Maheen Khalid and Amaad Rashid will be the sole employees of

Tocco manufacturing for the first two years of operation. When additional human resources are

needed, we have identified the four people qualified and able to assist our employees as

internees.

Once the business reaches 60% of its operational capacity which is expected in our third

financial year we will offer the positions of one project manager, one software developer and

three assistants to our project manager also.

6.8. Capacity

Refer to the sales volume in Financial Plan. In first financial year 10 units will be sold to SEECS,

in second year we are targeting the other institutes also and 110 units will be manufactured

according to the demand and in our third financial year 260 units will be manufactured with

more developed software.

6.9. Quality Assurance

Software will be one time efforts for our employees and its quality assurance would be checked

through a software quality assurance program. So its basic model would be replicated on every

additional unit manufactured. Our hardware which is an IR pen, its standards, processes,

procedures and correct implementation would be double checked by our project manager.


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NBS-BBA-2k7-A | 7. PRODUCTION PLAN 42

7. PRODUCTION PLAN

7.1. Materials/purchasing option

Software development will have no materials or purchasing costs. However, the supplementary

hardware with it will have a materials purchasing schedule. The demand will be gauged

according to our target institutes after which we will order our materials, including wiimote and

components for the IR pen. The IR pen will be assembled together by the entrepreneurs

themselves. Supplier of the components of IR pen will be from Raja Bazaar, RawalPindi.

Whereas, the supplier of wiimote will be chosen of price relaxation.

7.2. Operations/Manufacturing information

Apart from the software development, there will be no manufacturing costs. The supplementary

hardware, IR pen, will be assembled by the entrepreneurs themselves.

7.3. Demand fluctuations

The demand fluctuations will be handled through a chase strategy. We will produce our software

and product according to our demand.


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NBS-BBA-2k7-A | 8. RISK ASSESSMENT 43

8. RISK ASSESSMENT

This is a technical product in an industry which is rapidly changing. The customers wantthe latest technology available as new innovations enter the market. The entrepreneur

would have to be fast paced in introducing new technologies with new advancements and

would have to innovate with the changing needs of the market.

Piracy of software is widespread in Pakistan; therefore this will be a major threat toMohr. They will have to take extreme measures to protect their software. In most

countries, companies/entrepreneurs can patent their idea and can be protected from others

making, using, or selling the identified invention. The entrepreneurs will patent their ideabut if someone imitates their product and violates their patent in any way, a small

company like Mohr will not have the resources to fight a legal battle in Pakistan as such

cases go on for years without any result.

The interns that Mohr will be hiring will not be paid in the first few years, and they maysteal the idea and become competitors of the company. The employees also dont have a

stake in the business, therefore, they might learn the ropes of the business and leave the

company to work for competitors and give them the vital information.

The entrepreneurs will have to take on other partners who will invest in their company,and they will have to find clients who are able to buy their product. However, with the

global recession, this may prove to a tedious task.

They import the wiimote and the leds from USA so they have a huge risk if things go baddue to political turbulence and a trade embargo is imposed. As a result, they will face

difficulty in obtaining the parts from USA which they require for completing their

product.


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As the entrepreneurs have planned to expand their business in future, for that they needto have the support from government and this can be a major risk for them .But being a

part of PSEB, this risk will be significantly reduced for them coz PSEB will help them in

partnering with the govt. bodies and offering them strategic alliances.

o PSEB has developed various incentives and programs to assist IT/ITeS companiesin Pakistan. In addition to tangible benefits, such as higher revenue and growth,

certified companies also enjoy intangible benefits, such as improved customer

confidence, greater employee satisfaction, and an increase in shareholder value.

As they plan to expand their business and hire more people in the 3rd year they mightface difficulty in finding qualified people to recruit in their business

8.1. Contingency Plans

The marketing manager that the company will hire should keep tabs on the needs of themarket and the competitors activities and ensure that the competitive advantage of the

company sustains through the years. With the knowledge of the needs of the customers,

the software developers should keep on researching and developing new software to cater

to new needs in the market.

For the prevention of any possible threat of theft of the idea by interns/employees, thecompany can make them sign a contract when they start working for the company which

would be a Statement of Confidentiality. This would prevent them from sharing,

discussing any of the inventions of the company in any way.

In case of the recession affecting the operation of the company, the company will take theoption of selling the company or merging it with another company which has the

resources to sustain through the recession.


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They will try to find locally available alternatives, for obtaining wiimote and the leds .Ifnot within from Pakistan then from Asian IT hubs like Japan or even India.

Being a member of PSEB their major problem of finding qualified people to hire in theirbusiness will be overcome. As PSEB will help them find the qualified people for their

company.


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9. REFRENCES

http://www.ipo.gov.pk/Common/FAQs.aspx?DepartmentID=2#138

http://www.ipo.gov.pk/patent/Default.aspx#How to obtain a patent
http://www.ipo.gov.pk/Common/FAQs.aspx?DepartmentID=2#138http://www.ipo.gov.pk/Common/FAQs.aspx?DepartmentID=2#138http://www.ipo.gov.pk/patent/Default.aspx#How%20to%20obtain%20a%20patenthttp://www.ipo.gov.pk/patent/Default.aspx#How%20to%20obtain%20a%20patenthttp://www.ipo.gov.pk/patent/Default.aspx#How%20to%20obtain%20a%20patenthttp://www.ipo.gov.pk/Common/FAQs.aspx?DepartmentID=2#138

Documents

Tocco Digital Whiteboard