POLITEHNICA UNIVERSITY OF   BUCHAREST

FACULTY OF ENGINEERING IN FOREIGN LANGUAGES

PITICOT KINDERGARDEN

- BUSSINES MANAGEMENT -

Table of Contents :

I.      Syntesys3

II.   Company Presentation..5

III Company Products and Services.6

IV Marketing and Sales Program..8

V Operational Activities Program..12

VI Activities Management.13

VII Financial Plan..15

VII Antreprenorial offer..17

Annexes19

I.      Synthesis

Economical oportunity

1. Description

PITICOT company is a kindergarden which offers educational services for children under school age. This private kindergarden offers special services for people from Bacau who have an income over 2500 RON/month.

Bacau city is located in a place with a continuous economical development which brought in the latest years a spectacular population income increase and therefore an increased living standard.

In this way the need for services with a better quality has increased. In this category we also find educational services for children.

More and more families wish for their children to have an educational level as high as possible starting with the pre-school age. The problem is that in Bacau there are only two private kindergardens wich offer this services and the demand is in a continuous rise.

In this context, we consider that opening a private kindergarden in this area could be a profitable business.

Some interviewed families who have pre-school age children and an income over 2500RON/month have affirmed that they would be delighted with such a kindergarden and with it's services.

Parameters

II.         City : Bacau

III.       Period : Applying the plan and kindergarden's arrangement should begin in February. In this way the opening would coincide whith school opening in September.

IV.      Involved stokeholders : there will be 4 stokeholders: Leontiev Cristian, student, Cila Dragos, student and also kindergarden's driver, Pitrop Diana, expert accountant and Sersea Radu, manager Rominserv Romania.

3. Required resources

Ø       Human : 1 manager, 1 nurse, 4 teachers, 4 assistents, 1 driver, 1 janitor and 1 cook. The driver will work part-time and the manager will deal with the accountancy and management services.

Ø       Technico materials : Two of the stokeholders will contribute goods in kind, a 9 place car for children transportation as a price included service and a 900 sqm vila with 8 rooms, 2 kitchens and 3 bathrooms. The vila olso includes a 500 sqm place useful for organising a play ground. In order to buy furniture, computers, Tvs, arrange the garden, register the company and all other expenses we need to make for begining our activity, besides the 20000 RON brought by the third actionary, we will make a 140000 RON loan from GarantiBank.

Ø       Information: personnel's gained knowledge based on previous experience in the domain.

Ø       Financial: The company's capital will be of 170000 RON and a 140000 RON loan from GarantiBank will be necessary.

4. Types of resources

l        Belongings: 20000 RON contribution to capital.

l        Attracted: a 20000 RON car and a 130000 RON vila.

l        Borrowed: 140000 RON loan from GarantiBank.

5. Competitive advantage

PITICOT kindergarden will differ from the competition by offering two new types of services : short and long educational programs. Also, some other new services are dance, singing and piano classes, acting club, seeing theatre shows, organizing trips. This courses are offered besides the english, informatics, drawing and all other classes imposed by The Educational Ministry program which are also organized by the competition.

At parents request we could organize other types of courses which are not registered in the curriculum.

6. Estimated income and profit

The price of the 3 types of programs (short, medium and long) will be: 600 RON/month, 700 RON/month and 800 RON/month. In this way the estimated turnover for the first year will be 495900 RON, with 450427 RON expenses. Therefore we will obtain a net profit of 38197 RON. The biggest part of the expenses will consist in wage costs (1 manager, 1 nurse, 4 teachers, 4 assistants, 1 driver, 1 janitor and 1 cook) and in food costs.

II.   Company presentation

Company name: PITICOT S.R.L.

Headquarters: 22 Decembrie street, no.8 , Bacau

Type of activity: servicii, con CAEN 8010

Capital: 170 000 RON

Capital nature: private

Data regarding the majority stokeholders:

Stokeholder's structure

Stokeholder's identification data

Data regarding the stokeholder's contribution to the social capital

III. Company products and services

1. New proposed services

The company suggests two new types of program: short and long, because the other two private kindergardens in town organize only medium program.

Our options of program are:

a) Short program ( 8:00 12:30 ) - includes breakfast and educational activities.

b) Medium program ( 8:00 14:00) - includes breakfast, educational activities and lunch.

c) Long program ( 8:00 19:00 )- includes breakfast, educational activities, lunch, recreational program, recreational and relaxing activities inside the vila or outsite on the play-groung, snack, activities for developing the individual's skills and some other things.

The children are organized in groups and sorted by age and by their particularities. Piticot Kindergarten, transposes the pre-school curriculum approved by MER, in English, offering in addition initiation courses of piano and PC, under the supervision of a trained personnel. Our kindergarten is offering hygienically conditions, setting and equipment respecting actual demands. It functions with 4 groups, compound of maximum15 children, except of the crèche group witch has a number of just 12 kids, in an appropriate space equipped with modern furnishing specially created for kids, rich didactics, used in various types of activities, different toys for any age. At out kindergarten we aim to stimulate the kids in using information, skills and knowledge in different situations and to chose for themselves, forming a correct style of intellectual activity, systematized the knowledge of the kids, stimulating the initiative and the creative skills oh them in the instructive-educational activity. We rise the efficiency of the educative activities offering the possibility to our pupils to have personal initiative, to contribute and cooperate into the group for a given purpose.

Up against the competitors, we offer also dance courses, singing, piano, the acting club that implies making a little scene and a theatre play, and not the last we monthly make trips, journeys or previews of puppet shows. All this courses and going-outs are included in the program's price. We can also organize other types of courses at the parents demand but this will be extra charged separate in function of the persons that will be employed or other firms to be implicated into this services.

Optional it is offered apart form the price of the program, the transport of the kids from home to kindergarten and back at the end of the program for 50 RON per person.

The kindergarten disposes of a special arranged yard with playgrounds for kids in witch we will make a lot of activities on the periods that permits that. It a goal for us, that in a couple of years we can build a swimming pool for the summer programs.

On the summer period it will be organized Summer Kindergarten that will have a program between 8 oclock AM and 18 PM, and also we will organize educative activities and play activities. This program will have another tax price as the usual program, because of the difference of program and for higher personal involvement.

1. Competitive privilege

The competitive privilege of Piticot Kindergarten is that of the product differentiation from the other competitors by some special characteristics such as music lessons: singing and piano, dance lessons, informatics courses, acting club, preview of theatre , trips and journeys. Also a competitive advantage is the possibility to chose for some other new courses, that are not in the curricula.

IV. Programul de marketing si vanzari

Segmentul de piata tintit

In orasul Bacau, cu o populatie de aproximativ 300.000 oameni, exista in jur de 24.300 copii de varsta prescolara. Pentru acestia in schimb nu exista decat 30 de gradinite de stat si doar 2 particulare. Astfel nu este acoperita decat aproximativ 60% din nevoia de educatie prescolara a orasului.

Bacaul inregistreaza in ultimii ani o puternica dezvoltare economica devenind un nou centru economic al Moldovei. In acest context veniturile si nivelul de trai al populatiei a crescut, crescand astfel si nevoile de servicii de o mai buna calitate.

Serviciile societatii Piticot se adreseaza familiilor cu un venit lunar mai mare de 2500 RON cu copii de varsta prescolara. Cele 30 de gradinite de stat se adreseaza intregii populatii indiferent de venit dar nu reusesc sa acopere necesarul de cerere. Pentru familiile cu venituri mari nu exista decat doua gradinite care sa le poate oferii serviciile cerute.

Aceste familii sunt dispuse sa plateasca mai mult pentru educatia copiilor lor, avand in vedere ca o gradinita particulara pe langa faptul ca le ofera mai multa siguranta le ofera si o diversitate de cursuri mult mai mare. Astfel copii au ocazia sa invete limbi straine, calculator, au acces la cursuri de dans, canto si pian, au acces la clubul micilor actori, au ocazia de a merge in diverse excursii si drumetii. Asa cum in general omul simte nevoie de servicii de calitate pentru el insusi, el doreste si servicii de o calitate superioara si pentru copii sai. Acestui segment de populatie se adreseaza gradinita Piticot.

Succesul societatii va fi determinat de diversitate serviciilor oferite, multe fiind noi pentru aceasta arie geografica. Astfel gradinita Piticot va oferi mai multe tipuri de cursuri pentru copii si trei variante de programe de lucru.

Principalele restrictii impuse societatilor concurente se refera la oferirea unor servicii cu caracter unicat pe piata educatiei prescolare din aceasta zona. Astfel in general daca parintii ar fi vrut ca copii lor sa invete dansuri, canto, pian sau sa participe la mici piese de teatru, ar fi trebuit sa-i inscrie la cursuri speciale la inspectoratul scolar, inafara orelor de gradinita, ceea ce ar fi destul de dificil si incomod.

Concurentii firmei

Pe piata educatiei prescolare societatea Piticot intampina doua tipuri de concurenti: gradinitele de stat si 2 gradinite particulare. In timp ce cele doua gradinite particulare, sunt singurii concurenti directi, adresandu-se aceluiasi segment de piata si oferind o gama asemanatoare de servicii, gradinitele de stat se adreseaza intregii populatii a orasului, ele avand preturi reduse dar si o calitate mai slaba, devenind in ultimii ani si supraaglomerata. Deci in prezent populatia orasului cu venituri superioare si in cautarea unor servicii de o calitate mai buna nu se pot adresa decat celor doua gradinite care de altfel dicteaza pietei acestui tip de servicii. In acest sens ele fiind supresolicitate si dorite isi permit sa selecteze clientii dupa propriile interese.

Strategia de marketing

Gradinita Piticot se va situa in mediul concurential al zonei pe locul 4 cu mari posibilitati de avansare rapida pe locul 3 sau chiar 2. locul 1 in mediul concurential al zonei va fi mereu ocupat de gradinitele de stat avand in vedere ca acestea se adreseaza intregii populatii a orasului indiferent de nivelul veniturilor.

Domeniul de activitate al societatii, educatia prescolara, se afla in plina expansiune in tara noastra, defapt mai mult in Bucuresti. In orasele mai mici cum este Bacaul acest serviciu este foarte rar dar cu perspective mari de dezvoltare. In special datorita dezvoltarii economice a zonei, a crescut si o sa cresca in continuare nivelul de trai al bacauanilor si astfel si nevoile lor pentru servicii de o calitate superioara.

Politica de preturi

SC PITICOT isi propune sa ofere preturi mai mici, dar nu la o diferenta foarte mare de concurenta, societatea axandu-se pe avantajul concurential al calitatii si diversitatii serviciilor oferite. Astfel preturile propuse de societate pentru cele trei tipuri de programe oferite sunt:

Programul scurt: 600 RON / luna

Programul mediu: 700 RON / luna

Programul lung: 800 RON / luna

Estimarea vanzarilor in primii 3 ani:

Distribution policy

Piticot society, being a kindergarten, has no need for a distribution channel separated for his services, because the services are distributed at the kindergarten location, and for one of the special occasions, as trips and walks it can say that is needed the kids to go outside the kindergarten. Anyway we have an car for this travel of the kids, this thing representing an supplementary service provided by the firm, kids transportation from kindergarten to home, and from home to kindergarten, offered, on demand, on extra cost.

Conditions of product sales, specially the payment

The price of the services offered by the firm is fix at the starting year and it remains fixed all the year, the single cost that might varies is the cost f the trips, and of the summer program. The payment will be made by clients monthly, in the firms account at Garanti Bank, Bacau filial. It is accepted also advanced payment, and for delays of more than one month, there is an extra commission cost, variable, established by the firm every year.

Advertise program and product promotion

Piticot Kindergarten did not propose to have a big promotion campaign because it can find clients very easy from knows and nearby relations. However it will be made a number of 1000 brochures that will be distributed in the towns mall, near the kids playground and it will invest in a radio commercial, at the local radio. The promotion investment and the commercial, will not be very big, at about 1500 Ron, having the opportunity to get some discounts from the publicity firm that we will contact.

8 Identification and analyzing the risks

Elements of risk that could affect the evolution of activity of the company are:

1. Quality of the administration - for these, it is estimated a small risk.

Explanation of this level of risk is given by respecting all the contracts assumed till now, permanent concern for maintaining and development of the good business relations and clients portfolio, professional experience, a good organisational structure and bigger influence capacity. Also the management is the main compound of the firm so is direct interested in the performance of the firm.

2. Dynamics of the industry presents a medium risk in the light of favorable predictions, the increasing trend of the market, the privileged competitor position, the realistic strategy, correct direction and dimensioning.

3. Financial situation presents also a medium risk, but however the firm is in the situation to have credits to pay to banks that can be consider a higher risk. However the estimations and trends of the market are enough optimist that firm credit is not such frightful.

V. Operational activities program

The operational phases which will define the implementation of the investment plan are comprised in the following diagram

VI. Activities management

1. Organogram presentation

2. Piticot company's management presentation

Managerul general al societatii este unul din actionari, Ilas Marius, de profesie contaabil, ce va realiza in acelasi timp si situatia contabila a societatii. Desi nu are experienta manageriala sau cunostinte teoretice de management, el a fost totusi proprietarul unei mici sali de internet si se considera a fi potrivit pentru acest post.

Pentru alte servicii gen juridic, consultanta, training etc. Se va apela numai la societati bacauane, in mare parte prin intermediul cunostintelor managerului general, iar in timp se va face selectia acelor firme care vor constitui furnizorii de baza.

Deasemeni in ceea ce priveste furnizorii de birotica, mancare, consumabile, etc. societatea Piticot incearca sa isi realizeze o baza stabila de furnizori cu care sa lucreze si cu care in timp sa ii poate acorda reduceri datorita fidelitatii dovedite.

Societatea Piticot doreste sa se implice activ in comunitatea locala, dorind sa fie un exemplu pentru copii si sa-i educe ce inseamna responsabilitatea sociala. Astfel managementul societatii va fi orientate catre implicarea sociala si vor realizate diferite cooperari intre gradinita si diverse organisme ale comunitatii locale.

The structural arrangement of the company will be noticed in the organisational documents, respectively the organizational and functional rules, the organogram and the job description.

The organogram is pyramidal and is specific to a hierarchic-functional organizatoric structure.

The job descriptions used by our company are made by the following model:

1.POSITON:

2.FIRST AND LAST NAME:

3.DEPARTAMENT:

4.STUDIES:

6.DUTIES:

7. RESPONSIBILITIES:

The organization of the staff is the following:

The recruitment and examination ot staff will be conducted specified by an operational plan. Recruiting personnel will be run directly by the general manager in collaboration with the teacher chieff, which is also the managers wife

The whole staff will be engaged by a contract, and the remuneration will be made by fixed salary. Tne payment evoulution will match with the results of each individual employee.

The policy of Management Company of human resources supposes for the moment only programs of common training of employees, especially in the probation period and the examination of new employed persons. The company still does not have a motivation program of employees but it is expected to design in future a performance management through which the employees should be evaluated according to obtained results and thus rewarded according to their performances.

VII. Financial plan

1. Assumptions for calculating the income :

Gradul de utilizare a capacitatii de productie

Ø       available places: 57 childrens (3*15, 1*12)

Ø       prices: short program : 600 RON / month

middle program: 700 RON / month

long program : 800 RON /month

1st Year

800 RON x 50% x 57 children = 22500 RON / month

700 RON x 25% x 57 children = 9975 RON / month

600 RON x 25% x 57 children = 8550 RON / month

Month total = 41325 RON

Year total = 495 900 RON

Ø       available places: 57 copiii (3*15, 1*12)

Ø       prices: short program : 650 RON / month

middle program: 750 RON / month

long program : 850 RON /month

2nd Year

850 RON x 55% x 57 children = RON / month

750 RON x 25% x 57 children = RON / month

650 RON x 20% x 57 children = RON / month

Month total = RON

Year total = RON

2. Assumptions for calculating the salary expenditure:

è      direct salaries:

teachers 4* 1000 RON = 4000 RON

teacher's assistant 4*700 RON = 2800 RON
Month total = 6800 RON

Year total = 81600 RON

è      indirect salaries:

cleaning and kitchen staff: 2*600 RON = 1200 RON

driver (part-time): 1* 400 RON = 400 RON

manager: 1* 1500 RON = 1500 RON

Month total = 3100 RON

Year total = 37200 RON

3. Situatia costurilor si veniturilor

VIII. Antreprenorial offer

Funds destination:

For the achievement of the specified investment project, the company recognizes an essential 50.000 ron, which is divided as :

The value of the arrangements result in an precalculated estimate by the company which will perform these works.. The funds allocated for purchasing the necessary equipment for kitchen, furniture and cars are in accordance with a selection of tender and market studies carried out.

Financing mode:

It is aimed for the financing necessary to be covered by obtaining a credit from a specialized institution,the financial previsions have been done under the premises of obtaining an investment lending of 14000,that shall be refunded in 5 years time using egually interest rates and computed rates for a balance account made by Guarantee Bank.The credit interest rate expressed in currency that was used in financial projects is of 9%.

Financiers advantage:

For the lended sum (140 000 RON), the creditor establishment shall receive an yearly rate of interest for the balance account of 9%.

According to the delivery programm of accomodation, until the total regainment of the aheaded sums, the financier will cash in a total of 176.612 RON, that includes the sum within the rate of interest 33 142.68 RON, the rendering commission 4,050.00 RON also the administration commission 4,419.02 RON.

4. Recovery of investment period(Dr) = indicator which expresses the duration of the investment recovery (expressed in years). Its calculated by Dr= Vi /Pn , where

Pn = average net profit forecast horizon

Dr should be 7 years maximum

Pn mediu= (47,017 189,439 203,531 439 987

Dr = 156 000/ 439 987 = 3,493

1st ANNEX

Cash-flow charts

2nd ANNEX

Balance sheet