cotrugli presentation

Cotrugli Business SchoolMBA Program 2009

’’Own Route Website’’Business Plan Presentation

Albena Dyakova, Alina Pavelescu, Emil Dimitrov, Lucian Mataoanu, Mihaila Karshakova, Olivera Stojkovska Rovinj, June 2011

Content

Introduction

1.Organizational Background and Purpose

2. Market Analysis

3.Product and Service development

4.Marketing

5.Financial Data

6.Organization Structure and Management

7.Ownership

8.Risk Factors

Conclusions

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Introduction

We all know that the shortest distance between 2 points is a straight line.

As simple as that!

Bucharest to Ljubljana is a straight line. And Internet is very helpful in finding the right distance

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IntroductionOwnRoute idea

IntroductionOwnRoute idea

And the line became:And the line became:

++ ++

++ ++ ++

++ == &&

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Organizational Background and PurposeOwnRoute Mission and Vision

How do we get there?

The mission of Ownroute is to give people the opportunity to discover the world in their own way. Our team works to respond to people preferences by providing them the possibility to choose their own means of travelling.

We want to become the most substantial source of travelling information for the people in Europe and afterwards to spread our services worldwide.

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Organizational Background and PurposeOwnRoute Business Description

Proposed Objectives

• To provide quick and clear information to organize a travel

• To offer different itineraries depending on customer preferences (time, money, safety, phobias, etc.). • To provide instant comparison on possible itineraries• To be easily accessible – through internet

• To offer the best price for the customers

Estimate of the funds necessary

• Ownroute will generate money starting month 5 after launching the website and the maximum difference between cash in and cash out is 46,165€

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Market Analysis

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• Market size

Europe with the highest penetration rate in the world

Estonia, Slovakia, Latvia, Czech Republic and Slovenia on top 5.

Market Analysis

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• Market growth rate

the population won’t change dramatically for the future 10 years;the changes will vary in the range (-0,93; + 0,80);as the users growth rate is calculated of the basis of the population data, most probably the changes in the population will affect the penetration rate in same direction and extent.

• Market profitability • Industry Cost Structure

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Market Analysis

• Distribution channels

• Key Success Factors

Sign contracts with suppliers

Direct channels;

Develop software

To establish as preferred organizer for travel solutions

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Product and Service development

Sales and Market share estimates

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Product and Service development

Sales and Market share estimates

1. Types of customers:

2. Promotional Mix:

• B2B• B2C

Marketing

OwnRoute Website Customers

We combine routes according to the personal preferences.

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Financial DataMilestones in website life

After the first year the business needs no more money to be financed from outside, having an organic growth.

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Financial DataProfit Margin is positive starting second year, when the business is stabilized In the following years, as a result of growth, the profit margin is decreasing but in the same time contributing to the overall growth to higher income and profit.

Return on Equity and Profit Margin evolution

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Organization Structure and Management

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• Flat Structure - common in entrepreneurial start-ups

The structure is dynamic, with a high rate of change and organic functions.1ST and 2ND YEAR

Product Manager 1

Providers relationship

Market research Financials

Product Manager 2



Managing Director & Product Manager 3



Product Manager 5



Product Manager 4



Product Manager 6



Staff 1 Updates the website

information;

Data maintenance; Provide support for the

Product Managers.


information;

Data maintenance; Provide support for the

Product Managers. ff 2

• Divisional Structure - each of us will be responsible of a group of countries as the Product Manager of that group

• Virtual Network - exists within a network of alliances, using the Internet

Organization Structure and Management

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3RD YEAR

Product Manager 1



Product Manager 2






Product Manager 5



Product Manager 4



Product Manager 6




information; Data maintenance; Provide support for the

Product Managers.



Product Managers.

ff 2



Product Managers.

4TH and 5TH YEAR

Product Manager 1



Product Manager 2






Product Manager 5



Product Manager 4



Product Manager 6



Staff 1 - supervisor Data maintenance; Reporting; Provide support for the

Product Managers.


Product Managers.


Product Managers.


information; Provide support for the

Supervisors.



Supervisors.

Ownership

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• Lucian Mataoanu – member and Managing Director - 20%• Emil Dimitrov – member - 16%• Albena Dyakova – member - 16%• Mihaila Karshakova – member - 16%• Olivera Stojkovska – member - 16%• Alina Pavelescu – member - 16%

The first investment is 20,000 euro, 10,000 euro for the website creation and 10,000 euro for equipments and other expenses, to be given in 11 months according to the table below:

The ownership of the company will be split into the six members as follows:

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Risk Factors

Unfamiliarity

Technology

Sizeof theSale

Length of the life product

Data Accuracy

ConclusionsWhy OwnRoute?Ownroute represents an investment in a unique project that aims to change the way people are searching for most suitable route and means of transportation all over the world.

It will be a portalAll on the same roof

Dedicated Team

200 years

Innovative idea 19

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Questions and Answers

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